GoDaddy targets 6-8% revenue growth from 2024 to 2026, shares rise

investing.com:

Shares of GoDaddy (NYSE:GDDY) climbed more than 2% Wednesday after the company outlined a strategic three-year plan focusing on enhancing revenue growth, profitability, and achieving operational excellence.

At its Investor Day in Tempe today, GoDaddy has set ambitious financial goals, aiming for an annual revenue increase of 6% to 8% from 2024 to 2026, with this growth primarily expected to come from its Applications & Commerce division.

The company also targets achieving a full-year normalized EBITDA margin of around 33% and cumulative free cash flow of over $4.5 billion by the end of 2026. It plans to increase the free cash flow per share at a compounded annual growth rate of more than 20%.

During the event, GoDaddy CEO Aman Bhutani highlighted the importance of generative AI in developing solutions for its clients.

“This is a milestone moment for GoDaddy as we turbocharge our solutions for small businesses worldwide with the transformational power of generative AI," said Bhutan.

«Our focus remains balancing top-line growth and profitability to deliver long-term value for our shareholders.»