GoDaddy Earnings: Product Bundling Supports Healthy Bookings Momentum and Improved Profitability

We maintain our $115 fair value estimate for no-moat GoDaddy following a robust start to fiscal 2024. GoDaddy continues to enjoy a mix shift to higher margin solutions and has taken further action to drive operational efficiencies, including reducing headcount and leveraging AI in customer support. Following the result, we have tweaked our near-term assumptions to account for an improved full-year top-line growth outlook, but this is immaterial to our valuation. At current prices, GoDaddy shares continue to screen as fairly valued.