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1. Company Snapshot

1.a. Company Description

GoDaddy Inc.engages in the design and development of cloud-based technology products in the United States and internationally.The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity.


It also offers shared Website hosting products that provide various applications and products, such as web analytics, Secure Sockets Layer certificates, and WordPress; Website hosting on virtual private servers and virtual dedicated servers products, which allows customers to select the server configuration suited for their applications, requirements, and growth; managed hosting products to set up, monitor, maintain, secure, and patch software and servers for customers; and security products, a suite of tools designed to help secure customers' online presence.In addition, the company provides presence products, such as Websites + Marketing, a do-it-yourself mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; a range of marketing tools and services designed to help businesses acquire and engage customers, and create content, as well as search engine optimization that helps customers get their websites found on search sites; and social media management services.Further, it offers business application products, such as Microsoft Office 365, email accounts, email marketing, and Internet-based telephony services; online store capabilities that allows customers to transact business directly on their websites; GoDaddy Payments, a payment facilitator; and point-of-sale (POS) devices, as well as software for POS.


The company serves small businesses, individuals, organizations, developers, designers, and domain investors.GoDaddy Inc.was incorporated in 2014 and is headquartered in Tempe, Arizona.

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1.b. Last Insights on GDDY

GoDaddy's recent performance was driven by strong Q3 earnings, fueled by robust Applications and Commerce (A&C) growth and solid margins. The company's revenue growth has been steady, with rising A&C traction and momentum from new high-margin solutions. Q3 earnings per share came in at $1.51, beating estimates. The company lifted its full-year outlook, driven by Airo AI platform growth, which is driving up average revenue per user. This performance indicates a positive evolution in business conditions.

1.c. Company Highlights

2. GoDaddy's Strong Q3 2025 Earnings: AI-Driven Growth

GoDaddy reported a robust third quarter 2025, with total revenue growing 10% to $1.3 billion, surpassing the high end of its guided range. Normalized EBITDA grew 11% to $409 million, delivering a margin of 32%. Earnings per share (EPS) came in at $1.51, slightly above estimates of $1.5. The company's strong execution and favorable results were driven by a 14% growth in A&C bookings, highlighting the effectiveness of its strategy.

Publication Date: Nov -03

📋 Highlights
  • Revenue Growth Surpasses Guidance: Total revenue rose 10% to $1.3 billion, exceeding the guided range with A&C revenue up 14%.
  • AI Innovation Acceleration: Launched Airo.ai (beta) with 5 AI agents and Agent Name Service (ANS) for verifiable AI identities, signaling strategic focus on Agentic AI.
  • Strong Free Cash Flow Growth: Free cash flow increased 21% to $440 million, driven by efficient operations and 32% EBITDA margin (up 11% YoY).
  • Shareholder Returns Commitment: Repurchased $1.4 billion in shares year-to-date, reflecting confidence in capital allocation and long-term value.
  • 2025 Revenue Guidance Raised: New target of $4.93–$4.95 billion (8% midpoint growth) underscores momentum from high-intent customers and AI-driven efficiency.

Revenue Growth and Profitability

The company's revenue growth was driven by its focus on high-intent customers, who are buying more, attaching more, and have a higher average order size. This is reflected in the 10% ARPU growth, driven by strong A&C bookings. Mark McCaffrey, CFO, noted that the combination of Airo.ai and high-intent customers is a great tailwind for the business, with customers propelling above $500.

AI-Driven Innovation

Aman Bhutani, CEO, emphasized the company's investment in AI, particularly Agentic AI, which aims to improve cycle time and efficiency. The beta launch of Airo.ai, a new website built on the GoDaddy software platform, includes 5 new Airo agents that handle fundamental customer jobs to be done. Bhutani stated that the company is seeing teams of 3-5 using AI to automate the code-writing process, allowing for faster releases.

Valuation and Outlook

With a P/E Ratio of 29.54 and an EV/EBITDA of 20.65, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 6.8%. Given the company's strong execution and AI-driven innovation, it is well-positioned to drive long-term value creation for customers and shareholders. The company's commitment to shareholder returns is evident in its $1.4 billion share repurchase year-to-date.

Future Prospects

The momentum is expected to carry into 2026, with the company feeling good about its position. Initiatives around pricing and bundling, as well as a seamless experience, will continue to contribute equally going forward. The company's focus on Agentic AI and its potential to improve cycle time and efficiency will be key to its future growth.

3. NewsRoom

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GoDaddy Accelerates Airo.ai Momentum with New AI Agents for Small Business Growth

Nov -25

Source: prnewswire.com

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GoDaddy Inc. to Present at the Barclays Global Technology Conference

Nov -24

Source: prnewswire.com

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GDDY Looks Like A Smarter Buy Than Akamai Technologies Stock

Nov -21

Source: forbes.com

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Rep. Gilbert Ray Cisneros, Jr. Sells GoDaddy Inc. (NYSE:GDDY) Shares

Nov -21

Source: defenseworld.net

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GoDaddy advances trusted AI agent identity with ANS API and Standards site

Nov -20

Source: prnewswire.com

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GoDaddy Inc. (GDDY) Presents at Global Technology, Internet, Media & Telecommunications Conference 2025 Transcript

Nov -18

Source: seekingalpha.com

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Can GoDaddy's Agentic AI Initiatives Push the Stock Higher?

Nov -18

Source: zacks.com

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Alberta Investment Management Corp Grows Stock Holdings in GoDaddy Inc. $GDDY

Nov -17

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.67%)

6. Segments

Core

Expected Growth: 5%

GoDaddy's Core segment growth is driven by increasing demand for online presence, e-commerce enablement, and digital marketing solutions. The 5% growth is attributed to rising adoption of website builders, growth in online stores, and expanding customer base. Additionally, strategic partnerships, improved customer experience, and innovative product offerings contribute to the segment's growth.

Applications and Commerce

Expected Growth: 7%

GoDaddy's Applications and Commerce segment growth is driven by increasing demand for online presence, e-commerce enablement, and digital marketing solutions. Key drivers include rising adoption of website builders, growth in online stores, and expanding partner networks. Additionally, strategic acquisitions, such as Poynt and Sellbrite, have enhanced the company's commerce capabilities, contributing to the 7% growth.

7. Detailed Products

Domain Registration

Allows customers to register and manage domain names for their websites

Web Hosting

Provides customers with storage, bandwidth, and security for their websites

Website Builder

A drag-and-drop tool that allows customers to create and design websites without coding

Online Marketing

Offers a range of online marketing services, including SEO, PPC, and social media management

SSL Certificates

Provides secure socket layer certificates to ensure secure data transmission between websites and browsers

Email Hosting

Offers custom email addresses and email hosting services for businesses

WordPress Hosting

Provides optimized hosting services for WordPress websites

8. GoDaddy Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GoDaddy's services are specialized and unique, making it difficult for customers to find substitutes. However, the rise of DIY website builders and open-source alternatives poses some threat.

Bargaining Power Of Customers

GoDaddy's customers have some bargaining power due to the availability of alternative services. However, the company's strong brand and wide range of services mitigate this power to some extent.

Bargaining Power Of Suppliers

GoDaddy has a diverse supplier base, and no single supplier has significant bargaining power. The company's large scale and strong relationships with suppliers also reduce their bargaining power.

Threat Of New Entrants

While there are barriers to entry in the domain registration and web hosting market, new entrants can still disrupt the market with innovative offerings. GoDaddy's strong brand and established customer base provide some protection.

Intensity Of Rivalry

The web hosting and domain registration market is highly competitive, with many established players and new entrants vying for market share. GoDaddy faces intense competition from companies like Namecheap, HostGator, and Wix.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 98.41%
Debt Cost 3.95%
Equity Weight 1.59%
Equity Cost 9.38%
WACC 4.03%
Leverage 6182.48%

11. Quality Control: GoDaddy Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Amdocs

A-Score: 5.7/10

Value: 4.9

Growth: 4.9

Quality: 7.1

Yield: 4.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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F5

A-Score: 5.6/10

Value: 2.8

Growth: 4.8

Quality: 9.2

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Qualys

A-Score: 5.5/10

Value: 2.3

Growth: 7.9

Quality: 9.2

Yield: 0.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Gen Digital

A-Score: 5.4/10

Value: 3.5

Growth: 4.6

Quality: 7.0

Yield: 4.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
GoDaddy

A-Score: 4.6/10

Value: 3.1

Growth: 8.7

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Varonis Systems

A-Score: 3.8/10

Value: 4.7

Growth: 6.9

Quality: 4.0

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

130.26$

Current Price

130.26$

Potential

-0.00%

Expected Cash-Flows