Starboard urges GoDaddy to set 'prudent' guidance and offer specifics on cost savings

Core Viewpoint - Activist investor Starboard Value is urging GoDaddy to set specific growth targets and improve margins, emphasizing the need for continued operational improvements despite recent share price gains [1][2]. Group 1: Investor Engagement - Starboard Value holds over a 6% stake in GoDaddy and has been advocating for the company to enhance free cash flow and margins [1]. - The managing member of Starboard, Peter Feld, acknowledged GoDaddy's recent profitability targets but stressed that short-term share price performance does not address long-term issues [1][2]. Group 2: Financial Targets - Starboard believes GoDaddy should target at least 40% growth and profitability for the fiscal year 2025, while also highlighting the company's increasing free cash flow [2]. - The investor projects GoDaddy can achieve free cash flow of $9 per share for the current fiscal year and $14 per share by fiscal year 2026, compared to the current $6.1 per share for the fiscal year ending September 2023 [3]. Group 3: Market Position - GoDaddy's valuation remains heavily discounted compared to its peers, with only TeraData and Box having a higher multiple among a group of 20 companies [2]. - Starboard has been actively engaged with GoDaddy since 2021 and previously sent a letter in September, indicating a long-term interest in the company's operational improvements [3].