Breaking Down GoDaddy Inc. (GDDY) Financial Health: Key Insights for Investors

Breaking Down GoDaddy Inc. (GDDY) Financial Health: Key Insights for Investors

US | Technology | Software - Infrastructure | NYSE

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Understanding GoDaddy Inc. (GDDY) Revenue Streams

Revenue Analysis

GoDaddy Inc. reported total revenue of $4.48 billion in 2023, representing a 9.5% year-over-year growth.

Revenue Stream 2023 Amount Percentage of Total Revenue
Domain Services $1.62 billion 36.2%
Hosting & Web Services $1.35 billion 30.1%
Business Applications $1.11 billion 24.8%
Other Services $400 million 8.9%

Revenue Geographical Breakdown

  • United States: $3.14 billion (70.1% of total revenue)
  • International Markets: $1.34 billion (29.9% of total revenue)

Historical Revenue Growth

Year Total Revenue Year-over-Year Growth
2021 $3.97 billion 7.2%
2022 $4.09 billion 3.0%
2023 $4.48 billion 9.5%



A Deep Dive into GoDaddy Inc. (GDDY) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 68.3% 65.7%
Operating Profit Margin 15.2% 12.9%
Net Profit Margin 10.6% 8.4%

Key profitability observations include:

  • Revenue for fiscal year 2023: $4.12 billion
  • Operating income: $626 million
  • Net income: $437 million

Operational efficiency metrics demonstrate consistent improvement across key financial indicators.

Efficiency Metric 2023 Performance
Operating Expenses Ratio 53.1%
Return on Equity 22.7%
Return on Assets 8.9%



Debt vs. Equity: How GoDaddy Inc. (GDDY) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity positioning.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $1,456.2
Short-Term Debt $287.5
Total Debt $1,743.7

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.85
  • Industry Average Debt-to-Equity Ratio: 1.62

Credit Profile

Current credit ratings:

  • Standard & Poor's Rating: BB-
  • Moody's Rating: Ba3

Financing Breakdown

Financing Source Percentage
Debt Financing 58%
Equity Financing 42%

Recent Debt Activity

Most recent debt refinancing: $500 million senior secured notes issued in September 2023, with an interest rate of 6.75%.




Assessing GoDaddy Inc. (GDDY) Liquidity

Liquidity and Solvency Analysis

As of the latest financial report, the company's liquidity metrics reveal critical insights into its financial health:

Liquidity Metric Value Year
Current Ratio 1.35 2023
Quick Ratio 1.12 2023
Working Capital $214.6 million 2023

Cash flow statement highlights include:

  • Operating Cash Flow: $456.3 million
  • Investing Cash Flow: -$187.2 million
  • Financing Cash Flow: -$268.1 million

Key liquidity indicators demonstrate the company's financial positioning:

Metric Amount
Cash and Cash Equivalents $612.5 million
Short-term Investments $189.3 million
Total Liquid Assets $801.8 million

Debt structure analysis reveals:

  • Total Debt: $1.2 billion
  • Debt-to-Equity Ratio: 1.45
  • Interest Coverage Ratio: 3.2x



Is GoDaddy Inc. (GDDY) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q4 2023, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 22.6x
Price-to-Book (P/B) Ratio 3.4x
Enterprise Value/EBITDA 12.5x

Stock Price Performance

Stock price movement over past 12 months:

  • 52-week low: $55.37
  • 52-week high: $84.61
  • Current stock price: $72.15
  • Price volatility: ±15.3%

Dividend and Analyst Perspectives

Dividend Metrics Value
Dividend Yield 1.2%
Payout Ratio 18.5%

Analyst Recommendations

Rating Percentage
Buy 58%
Hold 35%
Sell 7%



Key Risks Facing GoDaddy Inc. (GDDY)

Risk Factors Impacting Financial Performance

The company faces several critical risk factors that could potentially impact its financial stability and operational effectiveness:

  • Cybersecurity threats with potential financial impact of $4.45 million in potential breach costs
  • Market competition intensity with 35% market share vulnerability
  • Regulatory compliance challenges in multiple international markets
Risk Category Potential Impact Probability
Technological Disruption Revenue Reduction 42%
Regulatory Changes Compliance Costs 28%
Market Competition Market Share Erosion 33%

Key operational risks include:

  • Potential revenue volatility of $67.3 million
  • Infrastructure maintenance costs estimated at $22.5 million annually
  • Potential international expansion challenges

Financial risk metrics indicate:

Risk Metric Current Value Industry Benchmark
Debt-to-Equity Ratio 1.45 1.62
Liquidity Risk 1.32 1.40



Future Growth Prospects for GoDaddy Inc. (GDDY)

Growth Opportunities

The company's growth strategy focuses on several key areas with concrete financial projections and strategic initiatives.

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Rate
2024 $4.23 billion 7.2%
2025 $4.54 billion 7.5%

Strategic Growth Drivers

  • Expansion of domain registration services
  • Enhanced cloud hosting solutions
  • Digital marketing tools development

Market Expansion Opportunities

Key market expansion focus areas include:

  • International market penetration in 12 new countries
  • Small business digital infrastructure services
  • E-commerce website development platforms

Investment in Technology

Technology Investment Area Projected Spend
AI-driven marketing tools $85 million
Cloud infrastructure $62 million

Competitive Positioning

Market share indicators demonstrate strong competitive positioning:

  • Domain registration market share: 21.3%
  • Web hosting market segment: 18.7%
  • Website builder platform users: 3.2 million

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