GDDY

Godaddy Inc

TMT


Presented:06/17/2021
Price:$85.77
Cap:$14.39B
Current Price:$162.92
Cap:$22.97B

Presented

Date06/17/2021
Price$85.77
Market Cap$14.39B
Ent Value$16.24B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S167.78M
Ave Daily Vol1,095,458
Short Int3.14%

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: Alphabet Inc (GOOGL), Expedia Group Inc (EXPE), GoDaddy Inc (GDDY), Intuit Inc (INTU), KKR & Co Inc (KKR), Wix.com Ltd (WIX)

Highlights

The presenter is long shares of GoDaddy Inc (GDDY), which is the largest seller of domains in the world with more than 82MM domains under management. He views GDDY’s domain hosting service as a solid MSD%-HSD% business that generates significant cash flow, and is currently growing DD% due to COVID-related needs for increased web presence. More importantly, however, he feels that the market is overlooking GDDY’s recent software evolution that is adding higher value offerings to new and existing customers. He therefore sees a strong, predictable business (85% retention rate, 90% annual revenue retention) that will generate DD% organic topline growth and mid- to high-teen% FCF growth trading at a LDD unlevered FCF multiple. He targets a $132 price (vs $85 today) by applying a 22x 2022 unlevered FCF multiple. 

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Idea Discussion

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