Analysts Bullish on GoDaddy After Q4 Results

GoDaddy Inc. (GDDY) has been the talk of the town among analysts following its Q4 2024 earnings report. The company's strong operational execution and financial performance have led several analysts to raise their price targets and maintain their bullish ratings on the stock. Let's dive into the key aspects of GoDaddy's Q4 results that have analysts buzzing and explore how these factors influence the company's long-term outlook.

GoDaddy reported quarterly earnings of $1.36 per share, missing the analyst consensus estimate of $1.43 per share. However, the company's revenue beat expectations, with quarterly sales of $1.192 billion compared to the analyst consensus estimate of $1.179 billion. This positive surprise in revenue growth indicates that the company's core business is performing well and may continue to do so in the future.

Analysts have been quick to revise their forecasts following GoDaddy's Q4 earnings report. For instance, Piper Sandler analyst Clarke Jeffries maintained a Neutral rating but raised the price target from $176 to $177. Morgan Stanley analyst Elizabeth Elliott maintained an Equal-Weight rating but raised the price target from $227 to $228. These changes in price targets and ratings reflect analysts' revised expectations for the company's future performance.

GoDaddy's strong operational execution and financial performance in 2024 have contributed to analysts' bullish stance on the company. The company's progress on key strategic initiatives, such as Pricing & Bundling, Seamless Experience, and Commerce, has likely caught the attention of analysts. Additionally, GoDaddy's impressive revenue growth of over 9% and expanded bottom-line Normalized EBITDA margin to 31% for the full year have likely influenced analysts' positive outlook on the company.

One of the key aspects of GoDaddy's Q4 results that has analysts excited is the company's progress with GoDaddy Airo. The company's CEO, Aman Bhutani, has highlighted the significant progress made with GoDaddy Airo, which is quickly gaining traction and becoming a key driver of future growth and customer lifetime value. In the fourth quarter of 2024, Airo has shown promising results with discovery and engagement, and the company has made great progress in expanding Airo across more customer entry points and plans. Website building remains the biggest beneficiary of Airo engagement, and Airo continues its momentum in becoming the largest funnel for Websites + Marketing with 50% of paid subscriptions originating with the Airo experience.

Analysts' expectations for GoDaddy's growth initiatives, such as GoDaddy Airo, contribute to their bullish stance on the company. Several analysts have raised their price targets and maintained their bullish ratings on GoDaddy, citing the potential of GoDaddy Airo and other growth initiatives. For instance, Mark Zgutowicz from Benchmark raised his price target from $186 to $230 and maintained his "Strong Buy" rating, stating that GoDaddy's growth initiatives, including GoDaddy Airo, are expected to drive upside to Street estimates. Similarly, Alexei Gogolev from JP Morgan raised his price target from $175 to $231 and maintained his "Buy" rating, highlighting the potential of GoDaddy Airo and other growth initiatives to contribute to the company's growth.

In conclusion, GoDaddy's strong operational execution, financial performance, and progress on key strategic initiatives, particularly GoDaddy Airo, have led several analysts to raise their price targets and maintain their bullish ratings on the stock. The company's positive Q4 results and analysts' revised forecasts reflect their confidence in GoDaddy's growth potential. As an investor, it's essential to stay informed about the latest developments and analyst opinions to make data-driven decisions about your portfolio.