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Back of Napkin

GoDaddy Inc. GDDY

Three-pass checkedFresh as companies report

GoDaddy's customer count was falling, so at the start of this year it stopped publishing the number.

Revenue still grows about 6% because the customers who remain are charged more each year, and the shares have fallen from $150.47 to $100.52.

GDDY · price with moving averages

Daily · 6MWeekly · 3Y
$60$101$142$183$224 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

GoDaddy registers internet domain names and then sells the small business that bought one everything else it needs: hosting, a website builder, an email address, security, and increasingly payments and commerce tools. The domain is the hook, sold cheaply, and the margin comes from what attaches to it afterwards. Roughly 20 million customers, mostly sole traders and small firms, paying a few hundred dollars a year.

Renewals are automatic and the switching friction is real, because moving a website is the sort of chore people postpone indefinitely. That is the whole moat and it is a decent one.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

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