GDDY - Embedded Expectations Analysis - 2018 09 19
GoDaddy Inc. (GDDY:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 30.7x Uniform P/E. However, management has concerns about their ability to drive growth and their Care and Domains segmentsSpecifically, management may lack confidence in the sustainability of total customer growth, and may be exaggerating the importance of domain names and websites to clients. Moreover, they may lack confidence in the new capabilities being added to their Care business, and in their ability to balance growth rates in Europe. Additionally, they may lack confidence in the sustainability of leverage in Care pricing, and in their decision to use AWS as a cloud provider. They may also lack confidence in the sustainability of high renewal rates in the Domains segment, particularly internationally. Finally, they may lack confidence in their ability to fully integrate their acquisition of HEG, and to drive long-term growth
GoDaddy is a technology provider to small businesses, web design personnel and individuals, delivering cloud-based products and personalized Customer Care. The company provides hosting, presence and business applications products and services. The company provides applications and access to relevant third party products helping them connect to their customers, manage and grow their businesses and get found online. The company has designed and developed a set of cloud-based technology products enabling its customers to establish a digital presence, connect with their customers and manage their ventures.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.