On Wednesday, Oppenheimer reiterated a Perform rating on shares of GoDaddy Inc (NYSE: NYSE:GDDY), following the company's annual Investor Dinner.
"We attended GoDaddy's annual Investor Dinner, and came away incrementally positive on management's strategy to improve attach and monetization with Airo and Airo Plus," analysts at Oppenheimer said.
During the event, GoDaddy introduced a new bundled offering called Airo Plus, priced at $5 per month, which includes premium features. The management team highlighted the potential for professional logo creation to serve as a new entry point for customers, drawing a parallel between the number of small and medium-sized businesses (SMBs) seeking logo services and those in search of domain names.
The company has reported that customers are adopting secondary products 25% quicker with the help of artificial intelligence (AI) and bundling strategies. These developments are part of GoDaddy's broader internal optimization efforts, which are ongoing and still offer potential operational expenditure (OpEx) savings.
The optimization has also led to a reduced headcount within the Care organization, as AI has introduced new efficiencies.
In other recent news, GoDaddy Inc. reported a 7% year-over-year increase in total revenue for the third quarter, reaching $1.15 billion. The company's Applications & Commerce segment saw a 16% growth in revenue. In response to these positive developments, both JPMorgan and Baird raised their price targets for GoDaddy, reflecting their confidence in the company's growth potential.
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