GoDaddy Inc. (GDDY) Stock Analysis and Metrics

GoDaddy

NYSE: GDDY

$87.60 ▼ -1.72 (-1.93%)

At close: Jul 8, 2026 · 2:54 PM UTC

Financial Ratios

Market Cap11.61 Bn

P/E13.35

P/S2.31

Div. Yield0.00

ROIC (Qtr)0.04

Total Debt (Qtr)3.78 Bn

Revenue Growth (1y) (Qtr)6.08

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About

GoDaddy is a global leader serving a large market of entrepreneurs by providing easy to use solutions as a one stop shop backed by proactive informed and personalized guidance. The company helps customers establish their online identity build presence and conduct commerce through tools that cover domain registration website building digital marketing email and payment processing. Its vision is to shift the global economy toward life fulfilling entrepreneurial ventures and its mission is to empower entrepreneurs everywhere making opportunity more inclusive for all. The firm also invests in emerging technologies such as artificial intelligence to enhance user experience and streamline operations.

GoDaddy generates revenue primarily from two segments Applications and Commerce and Core Platform. In 2025 the Applications and Commerce segment contributed about 38 percent of total revenue while the Core Platform segment contributed about 62 percent. Revenue comes from selling website builders ecommerce tools digital marketing services email productivity solutions domain registrations renewals aftermarket domain sales hosting and security products. In addition to product sales the company earns revenue from subscription based services and transaction fees associated with its payment processing platform.

The company operates through the following segments:

• Applications and Commerce (A&C): This segment includes website building products such as Websites + Marketing and Managed WordPress digital marketing tools email and productivity solutions like Microsoft 365 and electronic commerce solutions such as GoDaddy Payments and point of sale systems.

• Core Platform (Core): This segment consists of domain registration and renewal services aftermarket domain sales domain name privacy and protection products website hosting and security offerings including SSL certificates and web application firewalls.

GoDaddy holds a leading position in the domain registration industry managing approximately 81 million domain names which represented about 21 percent of the roughly 387 million domains registered worldwide as of the end of 2025. The company competes with firms such as Shopify Squarespace Wix Block BigCommerce Stripe PayPal Namecheap Tucows and Cloudflare. Its competitive advantages stem from strong global brand awareness a large base of 20.4 million paying customers high customer retention rates and a comprehensive one stop shop platform that integrates identity presence and commerce solutions.

GoDaddy serves a diverse customer base that includes independent microbusinesses web professionals domain investors and domain registrars as well as corporate portfolio owners. The company reported 20.4 million paying customers as of the end of 2025 with a significant portion located outside the United States. While specific customer names are not disclosed the base consists of individuals small businesses developers designers and organizations seeking to establish and grow their online presence.

Investment Thesis

▲ Bull case

The AI Builder product launched as Airo AI Builder has already generated an annualized bookings run rate of over ten million dollars within weeks of its beta release indicating strong early demand from customers seeking a seamless idea to execution experience. Management highlighted that customers are not only purchasing the initial subscription but are also buying additional credits as they deepen usage which signals a sticky and expanding revenue stream per user. The product is being rolled out through the Care organization where premium plan attachment rates are higher than in online channels providing a direct feedback loop that accelerates product improvement and monetization. With plans to ramp paid marketing in May funded by internal efficiencies the company expects the run rate to grow substantially as it leverages its large domain funnel and website creation paths to drive awareness and adoption.
AI driven operational improvements are already delivering measurable benefits to the business as evidenced by the launch of AiroCare which has boosted issue resolution rates by approximately fifty% in initial tests and improved non English market resolution by over one hundred fifty% helping to equalize service quality across geographies. These gains in customer care translate into higher satisfaction lower churn and the potential to reduce support costs while maintaining or enhancing the Net Promoter Score that is a core differentiator for GoDaddy. In parallel the AI native commerce sales agent is achieving conversion rates comparable to human assisted sales for smaller leads indicating that automation can replace costly human labor without sacrificing revenue generation. Together these initiatives contribute to the normalized EBITDA margin expansion of over two hundred basis points to thirty three% in the first quarter and provide a scalable path to further margin improvement as AI is embedded across more corporate functions.
The Agent Name Service initiative positions GoDaddy to become a foundational identity layer for the emerging agentic internet by leveraging its ubiquitous Domain Name System which is already the default directory used by every device and service online. Early partnerships with large players have demonstrated real world use cases and the company reports that non GoDaddy agents using its ANS implementation now number in the thousands indicating nascent network effects. By anchoring agent identity to domain names GoDaddy can extend the long term relevance of its core domain registrar business beyond traditional website ownership into future machine to machine interactions and trust frameworks. This strategic move creates a potential new revenue stream that is tightly coupled to the company’s existing scale and data advantages while requiring relatively modest incremental investment compared to building a wholly new infrastructure from scratch.
The recent launch of Airo for WordPress integrates AI directly into the world’s most widely used website platform opening a large untapped customer base of small businesses agencies and professionals who currently rely on WordPress for flexibility but struggle with complexity. By delivering AI powered site creation ongoing editing and commerce setup within the native WordPress dashboard GoDaddy removes the traditional tradeoff between ease of use and control thereby attracting users who might otherwise choose competing website builders. The product supports the full lifecycle of a website including optimization traffic generation and sales capabilities which aligns with the company’s broader goal of moving customers from idea to execution and increasing lifetime value. Given the sheer scale of the WordPress ecosystem which powers a significant share of all websites globally the early traction of Airo for WordPress could become a meaningful contributor to bookings and revenue as marketing efforts are scaled in the coming quarters.
GoDaddy continues to generate strong free cash flow with first quarter free cash flow of four hundred seventy four million dollars and trailing twelve month free cash flow of one point six eight billion dollars reflecting a normalized EBITDA to free cash flow conversion greater than one to one. The company has deployed capital through share repurchases reducing fully diluted shares outstanding to one hundred thirty three million and has returned over ninety five% of free cash flow to shareholders over the last four years demonstrating a commitment to enhancing per share value. This disciplined return based framework provides downside protection while still leaving flexibility to invest in AI driven growth initiatives such as AI Builder ANS and Airo for WordPress as internal efficiencies fund additional marketing and development spend. The combination of robust cash generation a solid balance sheet with net leverage of one point four times and a clear capital allocation policy supports the outlook for sustained compounding free cash flow growth and long term shareholder returns.

The AI Builder product launched as Airo AI Builder has already generated an annualized bookings run rate of over ten million dollars within weeks of its beta release indicating strong early demand from customers seeking a seamless idea to execution experience. Management highlighted that customers are not only purchasing the initial subscription but are also buying additional credits as they deepen usage which signals a sticky and expanding revenue stream per user. The product is being rolled out through the Care organization where premium plan attachment rates are higher than in online channels providing a direct feedback loop that accelerates product improvement and monetization. With plans to ramp paid marketing in May funded by internal efficiencies the company expects the run rate to grow substantially as it leverages its large domain funnel and website creation paths to drive awareness and adoption.
AI driven operational improvements are already delivering measurable benefits to the business as evidenced by the launch of AiroCare which has boosted issue resolution rates by approximately fifty% in initial tests and improved non English market resolution by over one hundred fifty% helping to equalize service quality across geographies. These gains in customer care translate into higher satisfaction lower churn and the potential to reduce support costs while maintaining or enhancing the Net Promoter Score that is a core differentiator for GoDaddy. In parallel the AI native commerce sales agent is achieving conversion rates comparable to human assisted sales for smaller leads indicating that automation can replace costly human labor without sacrificing revenue generation. Together these initiatives contribute to the normalized EBITDA margin expansion of over two hundred basis points to thirty three% in the first quarter and provide a scalable path to further margin improvement as AI is embedded across more corporate functions.
The Agent Name Service initiative positions GoDaddy to become a foundational identity layer for the emerging agentic internet by leveraging its ubiquitous Domain Name System which is already the default directory used by every device and service online. Early partnerships with large players have demonstrated real world use cases and the company reports that non GoDaddy agents using its ANS implementation now number in the thousands indicating nascent network effects. By anchoring agent identity to domain names GoDaddy can extend the long term relevance of its core domain registrar business beyond traditional website ownership into future machine to machine interactions and trust frameworks. This strategic move creates a potential new revenue stream that is tightly coupled to the company’s existing scale and data advantages while requiring relatively modest incremental investment compared to building a wholly new infrastructure from scratch.
The recent launch of Airo for WordPress integrates AI directly into the world’s most widely used website platform opening a large untapped customer base of small businesses agencies and professionals who currently rely on WordPress for flexibility but struggle with complexity. By delivering AI powered site creation ongoing editing and commerce setup within the native WordPress dashboard GoDaddy removes the traditional tradeoff between ease of use and control thereby attracting users who might otherwise choose competing website builders. The product supports the full lifecycle of a website including optimization traffic generation and sales capabilities which aligns with the company’s broader goal of moving customers from idea to execution and increasing lifetime value. Given the sheer scale of the WordPress ecosystem which powers a significant share of all websites globally the early traction of Airo for WordPress could become a meaningful contributor to bookings and revenue as marketing efforts are scaled in the coming quarters.
GoDaddy continues to generate strong free cash flow with first quarter free cash flow of four hundred seventy four million dollars and trailing twelve month free cash flow of one point six eight billion dollars reflecting a normalized EBITDA to free cash flow conversion greater than one to one. The company has deployed capital through share repurchases reducing fully diluted shares outstanding to one hundred thirty three million and has returned over ninety five% of free cash flow to shareholders over the last four years demonstrating a commitment to enhancing per share value. This disciplined return based framework provides downside protection while still leaving flexibility to invest in AI driven growth initiatives such as AI Builder ANS and Airo for WordPress as internal efficiencies fund additional marketing and development spend. The combination of robust cash generation a solid balance sheet with net leverage of one point four times and a clear capital allocation policy supports the outlook for sustained compounding free cash flow growth and long term shareholder returns.

▼ Bear case

The company’s recent acceleration in gross customer additions was largely driven by a promotional offer that moved over one hundred thousand new customers into the platform raising concerns about the sustainability of growth once such incentives are withdrawn. Management acknowledged that they removed a lower value product offering this quarter to balance the promotional impact indicating that the underlying organic demand may not be strong enough to support headline customer counts without external stimulus. While the promotional effort was tuned to balance bookings and customer growth the net effect on bookings was minimal suggesting that the quality of these added customers may be lower and could lead to higher churn or reduced lifetime value over time. If the promotional engine cannot be replicated at similar scale the business may face a slowdown in customer acquisition that would put pressure on future revenue growth especially in the Core Platform segment where domains remain the primary acquisition channel.
International revenue growth showed a deceleration in the first quarter largely because the prior year period benefited from larger Aftermarket transactions that did not repeat in the current quarter creating a tougher compare and masking underlying trends in the global small business market. The Aftermarket segment is inherently volatile and reliant on sporadic high value domain sales which makes it an unpredictable driver of top line performance and can cause quarter to quarter fluctuations that distract from the steady growth of the core subscription business. Management’s guidance already incorporates a consistent exclusion of high value Aftermarket transactions indicating that they view this component as non core and potentially unreliable for long term planning. Continued reliance on Aftermarket for any portion of reported growth could expose the company to revenue swings tied to broader economic conditions and the health of the secondary domain market.
Although AI Builder has demonstrated strong early adoption with an annualized bookings run rate of over ten million dollars the product remains in a very early stage and its long term monetization path is still unproven especially as the company plans to increase marketing spend which will need to generate a clear return to justify the investment. The current pricing structure includes a free tier and multiple paid plans but the mix between subscription revenue and credit top ups is not yet disclosed making it difficult to assess the gross margin profile and the scalability of the revenue model. If the AI driven experience fails to convert a sufficient share of users into paying customers or if credit usage does not scale with engagement the anticipated contribution to bookings and revenue may fall short of expectations. Moreover the company indicated that returns from AI Builder marketing will be immaterial for the current year implying that any near term benefit to earnings will be limited while the investment could weigh on operating expenses if the anticipated uptake does not materialize.
The Agent Name Service initiative depends on broad industry acceptance of an open standard for agent identity and discovery a outcome that is far from guaranteed given the presence of large technology firms that may prefer proprietary solutions or seek to establish competing frameworks. Even if the technical standard gains traction GoDaddy will need to convince a critical mass of developers platform owners and service providers to integrate ANS into their workflows which could require substantial evangelization effort and partnership development that may not yield immediate financial returns. The company’s current lead as the world’s largest domain registrar provides an advantage but does not assure that agents will choose to anchor their identity to domain names over alternative identifiers such as decentralized blockchain based handles or proprietary APIs offered by cloud providers. Should adoption lag the investment in ANS could become a sunk cost with little impact on revenue or competitive positioning.
Management repeatedly emphasized that efficiency gains from AI driven automation will be reinvested into product development marketing and compute costs which suggests that the margin expansion seen to date may not be fully retained as bottom line profit if the reinvestment does not generate proportionate returns. The competitive landscape for website building and domain services is intense with numerous players offering low cost or free alternatives that could pressure pricing power and limit the company’s ability to raise ARPU without losing customers. Additionally the shift toward AI native experiences may lead to cannibalization of existing higher margin products such as Websites + Marketing if customers migrate to the newer AI Builder which could initially carry a lower gross margin until scale is achieved. If the company fails to balance innovation investment with profitability the normalized EBITDA margin target of over thirty three% for the full year could become difficult to sustain especially in a macroeconomic environment where small business spending may be more sensitive to discretionary costs.

The company’s recent acceleration in gross customer additions was largely driven by a promotional offer that moved over one hundred thousand new customers into the platform raising concerns about the sustainability of growth once such incentives are withdrawn. Management acknowledged that they removed a lower value product offering this quarter to balance the promotional impact indicating that the underlying organic demand may not be strong enough to support headline customer counts without external stimulus. While the promotional effort was tuned to balance bookings and customer growth the net effect on bookings was minimal suggesting that the quality of these added customers may be lower and could lead to higher churn or reduced lifetime value over time. If the promotional engine cannot be replicated at similar scale the business may face a slowdown in customer acquisition that would put pressure on future revenue growth especially in the Core Platform segment where domains remain the primary acquisition channel.
International revenue growth showed a deceleration in the first quarter largely because the prior year period benefited from larger Aftermarket transactions that did not repeat in the current quarter creating a tougher compare and masking underlying trends in the global small business market. The Aftermarket segment is inherently volatile and reliant on sporadic high value domain sales which makes it an unpredictable driver of top line performance and can cause quarter to quarter fluctuations that distract from the steady growth of the core subscription business. Management’s guidance already incorporates a consistent exclusion of high value Aftermarket transactions indicating that they view this component as non core and potentially unreliable for long term planning. Continued reliance on Aftermarket for any portion of reported growth could expose the company to revenue swings tied to broader economic conditions and the health of the secondary domain market.
Although AI Builder has demonstrated strong early adoption with an annualized bookings run rate of over ten million dollars the product remains in a very early stage and its long term monetization path is still unproven especially as the company plans to increase marketing spend which will need to generate a clear return to justify the investment. The current pricing structure includes a free tier and multiple paid plans but the mix between subscription revenue and credit top ups is not yet disclosed making it difficult to assess the gross margin profile and the scalability of the revenue model. If the AI driven experience fails to convert a sufficient share of users into paying customers or if credit usage does not scale with engagement the anticipated contribution to bookings and revenue may fall short of expectations. Moreover the company indicated that returns from AI Builder marketing will be immaterial for the current year implying that any near term benefit to earnings will be limited while the investment could weigh on operating expenses if the anticipated uptake does not materialize.
The Agent Name Service initiative depends on broad industry acceptance of an open standard for agent identity and discovery a outcome that is far from guaranteed given the presence of large technology firms that may prefer proprietary solutions or seek to establish competing frameworks. Even if the technical standard gains traction GoDaddy will need to convince a critical mass of developers platform owners and service providers to integrate ANS into their workflows which could require substantial evangelization effort and partnership development that may not yield immediate financial returns. The company’s current lead as the world’s largest domain registrar provides an advantage but does not assure that agents will choose to anchor their identity to domain names over alternative identifiers such as decentralized blockchain based handles or proprietary APIs offered by cloud providers. Should adoption lag the investment in ANS could become a sunk cost with little impact on revenue or competitive positioning.
Management repeatedly emphasized that efficiency gains from AI driven automation will be reinvested into product development marketing and compute costs which suggests that the margin expansion seen to date may not be fully retained as bottom line profit if the reinvestment does not generate proportionate returns. The competitive landscape for website building and domain services is intense with numerous players offering low cost or free alternatives that could pressure pricing power and limit the company’s ability to raise ARPU without losing customers. Additionally the shift toward AI native experiences may lead to cannibalization of existing higher margin products such as Websites + Marketing if customers migrate to the newer AI Builder which could initially carry a lower gross margin until scale is achieved. If the company fails to balance innovation investment with profitability the normalized EBITDA margin target of over thirty three% for the full year could become difficult to sustain especially in a macroeconomic environment where small business spending may be more sensitive to discretionary costs.

Geographical Breakdown of Revenue (2025)

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	2,853.66 Bn	22.79	8.97	40.26 Bn
2	ORCL	Oracle Corp	408.21 Bn	23.92	6.06	122.34 Bn
3	PLTR	Palantir Technologies Inc.	300.98 Bn	131.24	57.61	-
4	PANW	Palo Alto Networks Inc	247.84 Bn	193.34	25.05	-
5	CRWD	CrowdStrike Holdings, Inc.	193.63 Bn	-1,201.41	40.24	0.75 Bn
6	FTNT	Fortinet, Inc.	117.45 Bn	60.08	16.52	0.50 Bn
7	NET	Cloudflare, Inc.	86.88 Bn	-1,001.47	37.31	1.29 Bn
8	SNPS	Synopsys Inc	86.18 Bn	1,416.99	10.76	10.04 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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