GoDaddy (GDDY) AI Stock Analysis

• Market Cap: $18.43B
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.02
• Revenue Growth: 8.78%
• EPS Growth: -55.15%
• Country: US
• Employees: 5,518
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.51
• Shares Outstanding: 138,449,020
• 10 Day Avg. Volume: 1,525,681
• 30 Day Avg. Volume: 1,490,816
• PEG Ratio: -1.04
• Price to Book (P/B): 40.28
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 22.11
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $172.71
• Price Target Upside: 29.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 60 Neutral
• Price Target: $140.00 ▲(5.16% Upside)

GoDaddy's overall stock score is driven by strong earnings call results and solid profitability, despite challenges in revenue growth and technical indicators suggesting bearish momentum. The company's strategic focus on AI and customer engagement provides a positive outlook, but financial stability concerns and valuation limit the score.

Positive Factors

AI and Product Innovation

GoDaddy's investment in AI and product innovation enhances its service offerings, potentially increasing customer satisfaction and retention, which can drive long-term growth.

Customer Engagement and Growth

The growth in high-intent customers and ARPU indicates strong customer engagement, which can lead to sustained revenue growth and improved profitability.

International Revenue Growth

Strong international revenue growth suggests successful market expansion and diversification, reducing reliance on domestic markets and enhancing long-term stability.

Negative Factors

Gross Margin Pressure

Persistent gross margin pressure could impact profitability, as increased costs from AI investments may not be immediately offset by revenue gains.

Revenue Growth Decline

A decline in revenue growth can signal market saturation or increased competition, potentially affecting long-term financial performance and market position.

Financial Stability Concerns

Financial instability, indicated by a high debt-to-equity ratio, can limit GoDaddy's ability to invest in growth opportunities and weather economic downturns.

GoDaddy Business Overview & Revenue Model

Company Description

GoDaddy Inc. (GDDY) is a leading technology provider that empowers everyday entrepreneurs by offering a range of internet domain services and web hosting solutions. Founded in 1997, the company operates primarily in the domain registration and web hosting sectors, providing customers with essential tools to build, manage, and grow their online presence. Core products include domain name registration, web hosting services, website building tools, and online marketing solutions, along with solutions for email and productivity.

How the Company Makes Money

GoDaddy generates revenue primarily through several key streams. The largest source is domain name registration and renewal fees, where customers pay annually to secure their desired domain names. Additionally, the company earns substantial revenue from web hosting services, which include shared hosting, VPS hosting, and dedicated servers. GoDaddy also offers premium services such as website building tools, eCommerce solutions, and digital marketing services, which contribute to its revenue. Furthermore, the company provides professional email and productivity solutions that enhance its offerings. Strategic partnerships with companies such as Google and various payment processors also bolster its service offerings and contribute to revenue growth. Overall, GoDaddy's diverse portfolio of services and a strong focus on customer support enable it to maintain a robust revenue model.

GoDaddy Financial Statement Overview

Summary

GoDaddy shows strong profitability and operational efficiency with healthy margins and cash flow ratios. However, the significant decline in revenue and free cash flow growth poses a risk. Improved leverage position is a positive, but the balance sheet still reflects potential financial instability.

Income Statement

GoDaddy's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth rate at -24.12%, which is concerning. However, the company maintains healthy margins with a gross profit margin of 63.81% and a net profit margin of 17.15% in the TTM. The EBIT and EBITDA margins are also strong, indicating operational efficiency. Despite the revenue decline, profitability remains robust.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 0.88 in the TTM, which is a significant improvement from previous years but still indicates leverage risk. The return on equity is strong at 1.91%, showing effective use of equity. However, the equity ratio is low, suggesting potential financial instability if not managed carefully.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -77.48% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 112.29%, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.96, suggesting efficient cash management despite the growth decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87B	4.57B	4.25B	4.09B	3.82B	3.32B
Gross Profit	3.00B	2.92B	2.68B	2.61B	2.44B	2.16B
EBITDA	1.23B	1.06B	754.10M	697.40M	579.20M	-201.40M
Net Income	828.50M	936.90M	1.37B	352.20M	242.30M	-495.10M
Balance Sheet
Total Assets	7.98B	8.24B	7.56B	6.97B	7.42B	6.43B
Cash, Cash Equivalents and Short-Term Investments	923.70M	1.09B	498.80M	774.00M	1.26B	765.20M
Total Debt	3.85B	3.89B	3.94B	3.98B	4.06B	3.32B
Total Liabilities	7.89B	7.54B	7.50B	7.30B	7.33B	6.44B
Stockholders Equity	91.80M	692.10M	62.20M	-331.80M	81.70M	-12.90M
Cash Flow
Free Cash Flow	1.54B	1.26B	970.20M	919.60M	576.10M	683.10M
Operating Cash Flow	1.57B	1.29B	1.05B	979.70M	829.30M	764.60M
Investing Cash Flow	-33.60M	21.50M	-102.40M	-132.00M	-635.60M	-482.30M
Financing Cash Flow	-1.38B	-677.40M	-1.26B	-1.33B	298.10M	-581.70M

GoDaddy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 133.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Neutral. The current price of 133.13 is above the 20-day moving average (MA) of 131.70, below the 50-day MA of 139.04, and below the 200-day MA of 168.51, indicating a neutral trend. The MACD of -2.67 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GDDY.

GoDaddy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZS	―	$52.42B	―	-2.70%	―	23.31%	31.04%
WEX	―	$5.00B	18.95	20.30%	―	-1.15%	-2.52%
FFIV	―	$14.54B	21.44	20.60%	―	9.66%	23.87%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GDDY	―	$18.43B	22.95	369.45%	―	8.78%	-55.15%
WIX	―	$8.10B	52.38	―	―	13.04%	126.85%
DBX	―	$7.58B	17.74	―	―	-0.04%	-5.07%

GoDaddy Corporate Events

GoDaddy’s Earnings Call Highlights AI-Driven Growth

GoDaddy’s latest earnings call paints a picture of robust financial health, underscored by significant growth in revenue and customer engagement. The sentiment during the call was largely positive, driven by advancements in AI and product innovations. Despite facing challenges such as gross margin pressure and a difficult revenue comparison anticipated in Q4, the company remains optimistic, focusing on continued investment in AI capabilities and strategic growth initiatives.

GoDaddy Reports Strong Q3 2025 Results with AI Focus

GoDaddy Inc. is a leading technology company that provides domain registration, website building, and hosting services, with a focus on empowering entrepreneurs and small businesses globally. The company is recognized for its innovative AI-driven solutions that enhance online business growth and presence.

GoDaddy Reports Strong Q2 Earnings and Growth

GoDaddy’s recent earnings call showcased a robust quarter, characterized by notable growth in Applications and Commerce (A&C) bookings and free cash flow, alongside successful AI-driven innovations. While the company faced challenges such as the .co registry transition and customer count pressures, the overall business outlook remains optimistic with raised guidance and strategic advancements.

GoDaddy Reports Strong Q2 2025 Financial Results

GoDaddy Inc., a leading technology company in the domain registration and web hosting industry, empowers entrepreneurs worldwide to establish and grow their online presence with its comprehensive suite of digital tools and services.