GoDaddy is a leading provider of web technology to small businesses. Since going public in early 2015, the stock has increased by 58%, and is now one of the largest players in the fragmented web presence space.
The company’s offerings start with its market-leading domains under management, where the company owns over 20% of total domains worldwide. The company also offers other products for small business owners, including web hosting, website building tools, marketing, and security. These other non-domain products are significant drivers of their overall revenue growth, and analysts believe that the company will continue to upsell customers onto these products over time.
This upsell opportunity can be seen in Analyst expectations for GoDaddy’s Hosting & Presence and Business Applications segments. Hosting & Presence and Business Applications are currently expected to grow in the double-digits, with particularly high growth in Business Applications. Dive into deep consensus information for GoDaddy and more than 1,700 other companies.
Shown another way, analysts expect both customer growth and average revenue per user (ARPU) to contribute strongly to sales growth. GoDaddy’s strong product suite for small businesses is expected to attract new customers and convince existing customers to add on to their services. In particular, analysts have been very positive on GoCentral, a website builder for mobile devices that has already shown above-average conversion rates among its free users.
Overall, analysts expect double-digit revenue growth through 2019. Notably, consensus for unlevered free cash flow calls for $479 million in 2017 and $601 million in 2018 - in line with management’s guidance for both years.