GoDaddy (GDDY) Strong 2Q. Raising PT - RBC

RBC Capital analyst, Mark Mahaney, reiterated his Outperform rating on shares of GoDaddy Inc (NYSE: GDDY) after the company posted a very strong Q2, outperforming estimates across Revenue and Profit lines, while tweaking up FY16 guidance.

Key points to the Q:

1) Bookings Growth Remains Robust – At 14% Y/Y ex-FX, matching Q1’s growth.

2) Every Segment Outperformed – With Domains growing 10% Y/Y to $230MM (vs. Street’s $227MM), Hosting growing 15% Y/Y to $168MM (vs. Street’s $165MM) and Business Apps growing 45% Y/Y to $59MM (vs. Street’s $58MM).

3) International Isn’t Slowing Down – International grew 25% Y/Y on an ex-FX basis, matching Q4/Q1’s growth and contributing to 26% of total revenue.

4) Strong Customer Growth – Net Adds of 227K (8% Y/Y) to 14.3MM Customers was above Q2:15 levels.

5) Robust FCF – Generated $84MM in unlevered FCF, up 9% Y/Y.

6) Scott Wagner will assume President/COO role with Ray Winborne (prev. CFO of First Data) being hired as the company’s new CFO.

All of these slight improvements lead to an increase in the price target to $38.00 (from $37.00).

For an analyst ratings summary and ratings history on GoDaddy Inc click here. For more ratings news on GoDaddy Inc click here.

Shares of GoDaddy Inc closed at $28.31 yesterday.

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