Key Takeaways GoDaddy projects Q3 revenues of $1.22-$1.24B, up about 7% year over year. A&C revenues are expected to grow mid-teens, while the Core platform rises low single digits. Rate Saver and Airo tools drive adoption and renewals amid competitive market pressures. GoDaddy (GDDY) is scheduled to report third-quarter 2025 results on Oct. 30, 2025.GDDY expects revenues to be between $1.22 billion and $1.24 billion, indicating 7% growth (at the mid-point) from the figure reported in the year-ago quarter.T ...

Fund Performance - Artisan Global Discovery Fund's Investor Class APFDX returned 10.84%, Advisor Class APDDX returned 10.83%, and Institutional Class APHDX returned 10.93% in Q2 2025, compared to an 11.84% return for the MSCI All Country World Small Mid Index [1] - Global markets experienced volatility in Q2 2025, with a shift from double-digit declines to gains following President Trump's tariff announcements and subsequent suspension [1] Company Focus: GoDaddy Inc. - GoDaddy Inc. (NYSE:GDDY) is a leader in domain registration, generating 70% of its revenue from core domain services and 30% from higher-margin applications and commerce tools [3] - GoDaddy's stock closed at $141.40 per share on September 26, 2025, with a market capitalization of $19.577 billion [2] - The company faced a one-month return of -4.66% and a 52-week loss of 9.81% [2] Investment Strategy and Concerns - Artisan Global Discovery Fund ended its investment in GoDaddy due to increased competition from Wix and AI-based business models, as well as concerns over incremental marketing investments in its AI-powered suite, Airo [3] - GoDaddy's strategy focuses on cross-selling higher-margin products through domain services, but risks from competition and macro challenges for small and medium-sized businesses remain [3]

Company Overview - GoDaddy has evolved from a domain registration business to a comprehensive service provider for micro businesses, offering IT services that enhance efficiency and competitiveness [22][23]. - The company has reported a 17% sales growth in its applications and commerce segment, which now constitutes about one-third of its revenue [22]. Capital Allocation Strategy - GoDaddy has executed a stock repurchase program, buying back $4 billion worth of stock since 2022, which has reduced its fully diluted share count by 25% [27]. - The company has a new $3 billion stock repurchase authorization plan, reflecting its commitment to returning value to shareholders through buybacks rather than dividends [27]. Financial Performance - Since its IPO, GoDaddy has outperformed the S&P 500 with a compound annual growth rate (CAGR) of 25%, compared to the S&P 500's 12% and Nasdaq's 16% [28]. - The company has expanded its normalized EBITDA margins by 900 basis points over five years while maintaining a CAGR of 20% in free cash flow per share [27]. Market Position and Growth - GoDaddy's business model focuses on maximizing free cash flow per share, which is considered its "North Star" [28][29]. - The company has a strong customer retention rate, with 90% of its revenue coming from existing customers, indicating a durable and predictable business model [29]. Competitive Differentiation - GoDaddy differentiates itself from competitors like Shopify by offering a seamless experience that combines multiple functionalities into one application, making it easier for micro businesses to manage their operations [26]. - The company emphasizes cost-effectiveness and efficiency, allowing customers to set up their businesses quickly and manage them with minimal complexity [26].

GoDaddy (GDDY) is scheduled to report first-quarter 2025 results on May 1.GDDY expects revenues between $1.175 billion and $1.195 billion for the first quarter, indicating 7% growth at the mid-point from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $1.19 billion, suggesting a 7.1% year-over-year rise.The consensus mark for earnings is pegged at $1.41 per share, down 3.4% over the past 30 days, indicating growth of 30.56% from the year- ...

Industry Overview - The Zacks Internet - Delivery Services industry is facing challenges due to macroeconomic uncertainty, inflation, and high interest rates, which are affecting the near-term outlook [1] - Escalating tariff tensions are threatening to squeeze both consumers and businesses, potentially leading to reduced discretionary and enterprise spending [1] - Companies in the industry are experiencing increased costs due to aggressive hiring and heavy investments in sales and marketing [1][8] - The industry primarily includes companies offering services via Internet-based platforms, such as food delivery, online travel booking, and web hosting [3] Growth Opportunities - Industry participants like GoDaddy, QuinStreet, and Asure Software are well-positioned for growth due to their adaptation to changing consumer preferences [2] - The rise of smartphones and improved Internet access are creating significant opportunities for the industry, with 4G and emerging 5G technology enhancing user experiences [4] - The shift in consumer preferences towards online services, particularly in food ordering and travel booking, is expected to benefit industry players [5] - Technological advancements, such as smart routing algorithms and real-time GPS tracking, are improving customer experiences and operational efficiencies [6] Challenges - The industry is facing risks from tariff wars, which can indirectly impact revenue growth and margins due to reduced spending from small businesses and startups [7] - Higher upfront costs associated with expansion strategies may hurt profitability, especially in the face of competition from larger tech companies like Amazon and Alphabet [8][9] - The industry's Zacks Industry Rank is 209, placing it in the bottom 15% of nearly 250 Zacks industries, indicating dim near-term prospects [10][11] Performance Metrics - The Zacks Internet - Delivery Services industry has outperformed the S&P 500 and the broader Computer and Technology sector over the past year, rising 17.7% compared to declines of 2.2% and 7.6%, respectively [15] - The industry is currently trading at a forward 12-month price-to-sales (P/S) ratio of 1.63X, significantly lower than the S&P 500's 4.37X and the sector's 4.92X [18] Company Highlights - **GoDaddy**: Engaged in domain registration and web hosting, benefiting from strong momentum in its Applications & Commerce business and expanding global footprint [23][24] - **QuinStreet**: A provider of online direct marketing services, positioned to capitalize on the shift to online business models and increasing ad spending [28][30] - **Asure Software**: Focused on human capital management solutions, driving growth through new client additions and innovation in its offerings [33][34]