GoDaddy Earnings: Soft Aftermarket Demand and Foreign-Exchange Headwinds Drag on Results

We maintain our $87 fair value estimate for no-moat GoDaddy following the release of mixed second-quarter fiscal 2023 results. Top-line growth fell marginally below our expectations as normalizing aftermarket demand, foreign-exchange headwinds, and a disposal of assets in the hosting business continued to drag on performance. Following the results, we have trimmed our near-term assumptions, but our longer-term forecasts and valuation remain intact. At current prices, GoDaddy shares trade at an attractive 17% discount to our unchanged fair value estimate.