Business
Applications and Commerce (A&C), which primarily consists of sales of products containing proprietary software, notably our website building products, as well as our commerce products and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of our proprietary software products.
Core Platform (Core), which primarily consists of sales of domain registrations and renewals, aftermarket domain sales, website hosting products and website security products when not included in bundled offerings of our proprietary software products as well as sales of products not containing a software component.
I believe that if you have a blog ,you would heard about GoDaddy, bluehost and hostinger etc.
I once bought some domains on Godaddy and bluehost. Now ,I use hostinger’ s service.
I always though that hosting providers making money is hard, because there are a lot of hosting providers, which offer generous commissions to their promoters.
Now , I change my point of view. The hosting providers ‘s business model is very good in cash flow.
They are in a broad market, their user are willing to renew and they can get a lat of deferred revenues, which mean cash flow.
Asset structure analysis
GoDaddy has total assets of $7.56 billion as of December 31,2023, while GoDaddy has $7 billion in total assets as of December 31,2022.
Total assets consisted two parts of current assets and non-current assets.
GoDaddy’ s current assets were $1.26 billion and non-current assets were about $6.3 billion as of December 31, 2023.
Total current assets comprised $16.7% of total assets and total non-current assets made up of 83.3% of total assets as of December 31, 2023.
Total non-current assets composed a large proportion of total assets.
In non- current assets, goodwill was $3.57 billion, intangible assets, net were $1.16 and deferred tax assets were $1 billion as of December 31,2023.
Liquidity and solvency analysis
Total current liabilities were $2.7 billion as of December 31, 2023.
GoDaddy’ s current ratio was 0.46:1. But the current ratio was undervalued, there are a lot of deferred revenues .
GoDaddy’ s deferred revenue was $2 billion as of December 31, 2023.
The current ratio excluding deferred revenues was 1.8, which indicated that GaDaddy ‘s liquidity was very strong.
GoDaddy’ s Long-term debt, net of current portion was $3.8 billion as of December 31,2023.
Total assets getting rid of goodwill, intangible assets and deferred tax assets was $1.83 billion as of December 31,2023.
Total liabilities eliminating total deferred revenues were $4 billion as of December 31,2023.
The adjusted current ratio was approximately 220% as of December, 31,2023. But GaDaddy ‘s cash flow is strong ,do not worry its solvency.
GoDaddy’ s net cash provided by operating activities was $1 billion, $0.98 billion and $0.83 billion in 2023,in 2022 and in 2021,respectively.
Profitability analysis
The increase in total revenues was about 0.15 billion or 3.7% to $4.25 billion in 2023, compared with $4.1 billion in 2022.
The increase in total revenues was $0.3 billion or 7.9% to $4.1 billion in 2022, compared to $3.8 billion in 2022.
We could see that the growth rate of total revenues is very slow.
Income before income taxes was $0.4 billion, $0.36 billion and $0.25 billion in 2023, in 2022 and in 2021, respectively.
The profit margin before income taxes was 9.4%, 8.8% and 6.6% in 2023, in 2022 and in 2021, respectively.
GoDaddy’ s pre-tax profit margin is very low for investor.
Cash flow analysis
GoDaddy’ s net cash provided by operating activities was $1 billion, $0.98 billion and $0.83 billion in 2023,in 2022 and in 2021,respectively.
GoDaddy’ s net cash provided by operating activities has been more than its profit before tax.
GoDaddy has preferred repurchasing stock rather than paying dividends to shareholders.
Summary
I reckon that GoDaddy is worth $10 billion or 12 billion, the lower is the better.
I like GoDaddy’ s net cash flow per year, not net income.