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GoDaddy Inc Class A GDDY

Morningstar Rating
$133.92 +1.99 (1.51%)
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Company Report

GoDaddy Earnings: Product Bundling Supports Healthy Bookings Momentum and Improved Profitability

We maintain our $115 fair value estimate for no-moat GoDaddy following a robust start to fiscal 2024. GoDaddy continues to enjoy a mix shift to higher margin solutions and has taken further action to drive operational efficiencies, including reducing headcount and leveraging AI in customer support. Following the result, we have tweaked our near-term assumptions to account for an improved full-year top-line growth outlook, but this is immaterial to our valuation. At current prices, GoDaddy shares continue to screen as fairly valued.

Price vs Fair Value

GDDY is trading at a 512% premium.
Price
$133.92
Fair Value
$783.00
Uncertainty
Medium
1-Star Price
$345.57
5-Star Price
$78.60
Economic Moat
Ydws
Capital Allocation
Lkwdmvbzm

Bulls Say, Bears Say

Bulls

GoDaddy benefits from a highly recognizable brand, economies of scale, and customer switching costs.

Bears

GoDaddy’s core domain registration offering is commoditized, forcing GoDaddy to be a price taker.

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News

Trading Information

Previous Close Price
$131.93
Day Range
$132.24133.98
52-Week Range
$69.18133.98
Bid/Ask
$132.30 / $155.00
Market Cap
$18.87 Bil
Volume/Avg
1.1 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
34.81
Price/Sales
4.60
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
6.88%

Company Profile

GoDaddy is a provider of domain registration and aftermarket services, website hosting, security, design, and business productivity tools, commerce solutions, and domain registry services. The company primarily targets micro- to small businesses, website design professionals, registrar peers, and domain investors. Since acquiring payment processing platform Poynt in 2021, the company has expanded into omnicommerce solutions, including offering an online payment gateway and offline point-of-sale devices.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
6,159

Competitors

Valuation

Metric
GDDY
SHOP
SQSP
Price/Earnings (Normalized)
34.8168.181,086.89
Price/Book Value
45.989.09
Price/Sales
4.6010.954.93
Price/Cash Flow
20.2080.2432.45
Price/Earnings
GDDY
SHOP
SQSP

Financial Strength

Metric
GDDY
SHOP
SQSP
Quick Ratio
0.286.940.54
Current Ratio
0.557.140.70
Interest Coverage
3.86−96.001.70
Quick Ratio
GDDY
SHOP
SQSP

Profitability

Metric
GDDY
SHOP
SQSP
Return on Assets (Normalized)
28.00%11.12%9.56%
Return on Equity (Normalized)
14.12%
Return on Invested Capital (Normalized)
59.01%10.90%28.62%
Return on Assets
GDDY
SHOP
SQSP
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