GDDY

Godaddy Inc - Ordinary Shares - Class A

TMT


Presented:03/18/2020
Price:$41.92
Cap:$7.28B
Current Price:$162.92
Cap:$22.97B

Presented

Date03/18/2020
Price$41.92
Market Cap$7.28B
Ent Value$13.62B
P/E Ratio55.24x
Book Value$4.47
Div Yield0%
Shares O/S173.55M
Ave Daily Vol1,571,506
Short Int4.27%

Current

Price$162.92
Market Cap$22.97B
GoDaddy, Inc. engages in the provision of domain name registration and web hosting services. It provides website building, hosting, and security tools. The company was founded by Robert R. Parsons on January 1997 and is headquartered in Scottsdale, AZ.

Publicly traded companies mentioned herein: Expedia Group Inc (EXPE), GoDaddy Inc (GDDY), VeriSign Inc (VRSN)

Highlights

The presenter is long shares of GoDaddy (GDDY) and believes the cloud-based web platform has been misinterpreted given its SMB exposure amid COVID-19 concerns. GoDaddy is the world’s largest website domain registrar and a “one-stop-shop” for small businesses looking for website creation, domain hosting, and add-on other marketing tools. Before COVID-19, the presenter believes the business was undervalued as it had grown revenue by low-DD% every single quarter since it went public in 2015 and expanded EBITDA margins by 100-150 bps annually. Additionally, GoDaddy has had high-teens% FCF growth since 2015, and more recently has seen a 25% CAGR over the last 2 years. The stock has traded down from ~$78 per share in February 2020 to $42, and although the presenter expects revenue growth to decelerate to 4% - 5% in 2020, he thinks GoDaddy will start to re-accelerate revenue growth in 2021 and expects shares to trade at 20x his 2021 FCF estimate, appreciating back up to ~$81. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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