STARBOARD DELIVERS LETTER TO GODADDY

Rhea-AI Summary

Starboard Value LP, a significant stockholder of GoDaddy Inc. (NYSE: GDDY), has announced its belief in the company's potential for growth and profitability. They view the company's recent disclosure of improved profitability targets as a positive step and believe that GoDaddy remains undervalued. Starboard intends to closely monitor the company's upcoming Q4 FY23 earnings call and March 2024 investor day to ensure appropriate operating and financial targets are set for the near, medium, and long-term. They remain open to working constructively with management and the board.

Insights

Financial Analyst

GoDaddy's recent announcement regarding improved profitability targets suggests a strategic shift that could have material implications for the company's financial health and stock valuation. The acknowledgment by Starboard Value LP, a significant shareholder, of GoDaddy's undervaluation and the potential for significant shareholder value creation indicates that there may be latent value not yet realized by the market. This perspective is particularly important for investors who seek to understand the intrinsic value of a company beyond its current market price.

When a major investor voices confidence in a company's growth and profitability prospects, it often triggers a reassessment of the company's future earnings potential by the market. However, the impact on the stock price will hinge on GoDaddy's ability to meet or exceed these improved profitability targets. The upcoming Q4 FY23 earnings call and March 2024 Investor Day will be critical events where management's commentary and set targets will be scrutinized for feasibility and alignment with long-term strategic goals.

Market Research Analyst

The communication from Starboard Value LP underscores the importance of not only short-term profitability but also medium and long-term financial targets in evaluating a company's trajectory. For GoDaddy, a company that operates in the highly competitive internet domain and web hosting sector, the ability to balance growth with profitability is essential. Investors and analysts will be keenly observing the company's performance metrics, such as customer acquisition costs, average revenue per user and churn rates, to gauge the effectiveness of GoDaddy's strategies.

Moreover, the investor's intention to monitor the company's performance and engage with management suggests a proactive approach to corporate governance. This could lead to increased transparency and potentially more aggressive strategic initiatives, which may be welcomed by other investors seeking clarity and assertive action in pursuit of value creation.

Corporate Governance Expert

Starboard's active engagement with GoDaddy's management and board represents a form of shareholder activism that can catalyze changes in corporate governance and strategic direction. This interaction often aims to unlock shareholder value through various means, such as operational improvements, financial restructuring, or changes in corporate policy. The outcome of such engagements can lead to significant shifts in investor sentiment and market perception.

It is essential to monitor how GoDaddy's board of directors responds to the investor's suggestions and whether it leads to increased alignment between shareholder interests and management's strategic decisions. This dynamic is crucial as it can affect the confidence of both current and potential investors in the company's governance structures and its ability to deliver on its promises.

Believes that Opportunities Continue to Exist to Significantly Improve GoDaddy's Combination of Growth and Profitability

Views the Company's Recent Disclosure of Improved Profitability Targets as a Step in the Right Direction

Believes GoDaddy Remains Undervalued with an Opportunity for Significant Shareholder Value Creation

Intends to Closely Monitor the Company's Upcoming Q4 FY23 Earnings Call and March 2024 Investor Day to Ensure that Appropriate Operating and Financial Targets Are Set for the Near, Medium, and Long-term 

Remains Open to Working Constructively with Management and the Board  

NEW YORK, Jan. 31, 2024 /PRNewswire/ -- Starboard Value LP (together with its affiliates, "Starboard"), a significant stockholder of GoDaddy Inc. ("GoDaddy" or the "Company") (NYSE: GDDY), today announced that it has delivered a letter to Aman Bhutani, GoDaddy's Chief Executive Officer, and Mark McCaffrey, the Company's Chief Financial Officer, with a copy to GoDaddy's Board of Directors.

The full text of Starboard's letter to the Company can be viewed at the following link:

https://www.starboardvalue.com/wp-content/uploads/Starboard_Value_LP_Letter_to_GDDY_01.31.2024.pdf

About Starboard Value LP
Starboard Value LP is a New York-based investment adviser with a focused and differentiated fundamental approach to investing primarily in publicly traded U.S. companies. Starboard invests in deeply undervalued companies and actively engages with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.

Investor contacts:
Peter Feld, (212) 201-4878
Gavin Molinelli, (212) 201-4828
www.starboardvalue.com

View original content:https://www.prnewswire.com/news-releases/starboard-delivers-letter-to-godaddy-302049311.html

SOURCE Starboard Value LP

FAQ

What is the ticker symbol for GoDaddy Inc.?

The ticker symbol for GoDaddy Inc. is GDDY.

What did Starboard Value LP announce about GoDaddy?

Starboard Value LP announced its belief in GoDaddy's growth and profitability potential, as well as its view of the company as undervalued.

What targets does Starboard intend to monitor for GoDaddy?

Starboard intends to monitor the company's upcoming Q4 FY23 earnings call and March 2024 investor day to ensure appropriate operating and financial targets are set for the near, medium, and long-term.

What letter did Starboard deliver to GoDaddy?

Starboard delivered a letter to Aman Bhutani, GoDaddy's CEO, and Mark McCaffrey, the Company's CFO, with a copy to GoDaddy's Board of Directors.

Where can the full text of Starboard's letter to GoDaddy be viewed?

The full text of Starboard's letter to GoDaddy can be viewed at the following link: https://www.starboardvalue.com/wp-content/uploads/Starboard_Value_LP_Letter_to_GDDY_01.31.2024.pdf