NYSE:GDDY
GoDaddy Inc.
A premier destination for small business digital presence offering integrated domain, hosting, and marketing solutions.
Key Metrics
Investment Thesis
Bull Case
Investors may favor GoDaddy due to its consistent top-line growth trajectory, the sticky nature of domain renewal revenue providing a stable cash flow floor, and significant share repurchases of $1.6B signaling management's confidence in intrinsic value despite recent volatility in net income.
Bear Case
Concerns persist regarding the compression in operating margins as seen by the drop in net profit from 2023 to 2025, substantial long-term debt obligations totaling $3.77B relative to shareholders' equity of only $215.1M, and the risk that high capital expenditures or market saturation could stifle future growth rates.
About GoDaddy Inc.
GoDaddy Inc. is a leading global provider of website-building tools and search engine marketing services, primarily serving small businesses and individual entrepreneurs through its online domain registration, web hosting, and marketing platforms.
Analysis
Management Discussion
The company demonstrated resilient revenue growth, expanding from $4.09B in 2022 to $4.95B in 2025, while managing profitability effectively with net income peaking at $1.38B in 2023 before settling at $875M in 2025, reflecting a balanced approach between aggressive expansion and fiscal discipline.
Industry Overview
The global domain name and web hosting industry is competitive but fragmented, with GoDaddy holding a dominant position in the SMB segment while facing pressure from hyperscalers and niche players innovating with AI and automation tools.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.09B | $4.25B | $4.57B | $4.95B |
| Cost of Revenue | $1.48B | $1.57B | $1.65B | $1.80B |
| Gross Profit | $2.61B | $2.68B | $2.92B | $3.15B |
| Operating Expenses | $2.11B | $2.13B | $2.03B | $2.02B |
| Operating Income | $498.8M | $547.4M | $893.5M | $1.13B |
| G&A | $385.5M | $374.0M | $394.2M | $388.9M |
| Stock-Based Comp | $264.4M | $296.3M | $299.9M | $317.8M |
| D&A | $194.6M | $171.3M | $135.3M | $116.6M |
| Depreciation | $61.2M | $61.3M | $53.2M | $41.4M |
| Amortization | $128.9M | $104.9M | $78.5M | $71.7M |
| Other OpEx | $1.72B | $1.76B | $1.63B | $1.63B |
| Non-Operating Income | $-142.3M | $-143.6M | $-128.1M | $-107.3M |
| Interest Expense | $146.3M | $179.0M | — | — |
| Pre-Tax Income | $356.5M | $403.8M | $765.4M | $1.02B |
| Income Tax | $3.6M | $-971.8M | $-171.5M | $145.0M |
| Continuing Ops | $352.9M | $1.38B | $936.9M | $875.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $352.9M | $1.38B | $936.9M | $875.0M |
| Minority Interest | $700.0K | $800.0K | $0 | $0 |
| Net to Common | $352.2M | $1.37B | $936.9M | $875.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.58B | $1.26B | $1.95B | $1.84B |
| Marketable Securities | — | $40.0M | $0 | — |
| Accounts Receivable | $60.1M | $76.6M | $91.1M | $83.1M |
| Prepaid Expenses | $22.1M | $177.2M | $245.2M | $120.8M |
| Other Current Assets | $1.50B | $962.1M | $1.62B | $1.64B |
| Long-Term Assets | $5.39B | $6.31B | $6.28B | $6.19B |
| PP&E (Net) | $225.6M | $185.3M | $156.4M | $145.4M |
| Intangibles | $1.25B | $1.16B | $1.06B | $986.3M |
| Goodwill | $3.54B | $3.57B | $3.52B | $3.63B |
| Operating Leases | $84.1M | $60.8M | $49.4M | $41.9M |
| Other LT Assets | $292.1M | $1.33B | $1.50B | $1.39B |
| Total Assets | $6.97B | $7.56B | $8.24B | $8.03B |
| Current Liabilities | $2.46B | $2.68B | $2.70B | $3.00B |
| Accounts Payable | $130.9M | $148.1M | $81.6M | $67.5M |
| Current Debt | $18.2M | $17.9M | $15.9M | $15.1M |
| Current Leases | $33.3M | $29.1M | $23.0M | $20.3M |
| Deferred Revenue | $1.95B | $2.07B | $2.22B | $2.38B |
| Other Current Liab | $-33.3M | $-29.1M | $-23.0M | $-20.3M |
| Long-Term Liabilities | $4.84B | $4.82B | $4.84B | $4.82B |
| Long-Term Debt | $3.81B | $3.80B | $3.78B | $3.77B |
| LT Operating Leases | $116.5M | $90.2M | $76.7M | $62.0M |
| Other LT Liab | $143.3M | $128.5M | $105.9M | $62.2M |
| Total Liabilities | $7.30B | $7.50B | $7.54B | $7.82B |
| Shareholders' Equity | $-329.3M | $62.2M | $692.1M | $215.1M |
| Paid-In Capital | $1.91B | $2.27B | $2.61B | $2.98B |
| Retained Earnings | $-2.42B | $-2.32B | $-2.05B | $-2.79B |
| AOCI | $178.0M | $111.2M | $132.5M | $29.2M |
| Total L&E | $6.97B | $7.56B | $8.24B | $8.03B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $352.9M | $1.38B | $936.9M | $875.0M |
| Non-Cash Adjustments | $446.9M | $-637.4M | $113.9M | $472.3M |
| Working Capital Changes | $179.9M | $309.4M | $236.9M | $252.1M |
| Cash from Operations | $979.7M | $1.05B | $1.29B | $1.60B |
| Capital Expenditures | $59.7M | $42.0M | $26.6M | $23.9M |
| Cash from Investing | $-132.0M | $-102.4M | $21.5M | $-25.1M |
| Debt Repayments | $1.79B | $1.79B | $4.24B | $24.6M |
| Share Buybacks | $1.29B | $1.27B | $676.5M | $1.60B |
| Cash from Financing | $-1.33B | $-1.26B | $-677.4M | $-1.59B |
| FX Effect | $-2.7M | $1.3M | $-1.6M | $4.7M |
| Net Change in Cash | $-481.7M | $-315.2M | $630.2M | $-8.1M |
| Beginning Cash | $1.26B | $774.0M | $458.8M | $1.09B |
| Ending Cash | $774.0M | $458.8M | $1.09B | $1.08B |
Frequently Asked Questions
How does GoDaddy Inc. make money?
Primary revenue streams include Domain Name Services, Web Hosting Solutions, Marketing & Advertising Services (including SEO and PPC), and Emerging Technologies like AI-driven website builders and e-commerce tools.
What are the main risks for GDDY?
Intense competition from large tech giants (e.g., Google, Squarespace), potential regulatory changes affecting domain ownership or privacy laws, sensitivity to economic downturns reducing SMB marketing spend, and reliance on high customer acquisition costs.
What is GDDY's competitive advantage?
Strong brand recognition among SMBs, high switching costs due to integrated ecosystems, and a robust global domain registration market share that creates recurring revenue through annual renewals.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.