GoDaddy needs to cut more jobs, reduce the tech budget, and address why it is falling short of financial targets outlined at its shareholder day in 2022, or the board should consider exploring a sale of the business. From a report:
This is the view from activist investor Starboard Blue LLP, GoDaddy’s third largest shareholder and one which is agitating for change and a seat on the corporation’s board, something it has so far failed to secure. An open letter [PDF] to GoDaddy’s top brass starts off friendly enough, with Starboard Value managing member Peter Feld describing the business as a “one-stop shop for micro- and small-businesses looking to develop a web presence.”
Feld says Starboard Value invested in the stock, a move it made public in early 2022, on the basis of opportunities for strong revenue growth, “meaningful margin expansion” and a “more appropriate capital allocation strategy.” “Unfortunately, despite each of these opportunities remaining, over the last 18 months we have been disappointed by GoDaddy’s operational, financial and stock price performance,” the letter adds. At the investor day, GoDaddy projected compound annual growth in revenue of 10 percent between 2022 and 2024, as well as 15 percent EBITDA, 20 percent free cashflow per share and $3 billion in share buybacks.
Further reading: Alphabet Selling Google Domains Assets To Squarespace.
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