GoDaddy (GDDY) is making a significant move in the digital marketing arena with the launch of its all-in-one Digital Marketing product. This new offering is specifically designed to empower small business owners by simplifying and enhancing their online marketing efforts. The tool recognizes the common challenges faced by entrepreneurs, such as limited time, budget, and expertise, and aims to streamline their online presence.
GoDaddy’s Digital Marketing product integrates essential tools like Search Engine Optimization (SEO), social media marketing, and email marketing into a single, user-friendly platform. This consolidation allows businesses to manage their marketing strategies more efficiently and effectively, regardless of where their website is hosted. The platform is further enhanced by advanced AI-powered features, including customizable content creation, digital advertising solutions, and a unified inbox for streamlined communication. These features provide a comprehensive solution for small businesses looking to grow and thrive in the increasingly competitive digital landscape.
GoDaddy’s strategic move highlights the company’s focus on empowering small businesses and contributing to their success. The digital marketing market is experiencing strong growth, with projections indicating a market value of USD 1.38 trillion in 2024 and a projected reach of USD 3.62 trillion by 2029. This substantial growth trajectory is expected to instill investor optimism in GoDaddy’s stock.
GoDaddy’s commitment to small businesses is evident in its recent initiatives. In the second quarter of 2024, the company launched the Digital Marketing Suite, a new customer onboarding path that offers personalized marketing tools and content on a single dashboard. This suite empowers users to build their brand, generate leads, and grow their businesses, even without a website. In May, GoDaddy expanded its Small Business GenAI Prompt Library, providing over 185 updated prompts and new capabilities to support small business owners globally. Additionally, in April, the company introduced the Smart Terminal Flex, a compact and versatile Point of Sale terminal designed to enhance efficiency for small businesses through modern features and seamless integration across various sales channels.
GoDaddy’s strategic efforts are expected to attract a significant number of small businesses as customers, driving its top-line growth in the coming months. The company projects third-quarter 2024 revenues in the range of $1.13-$1.15 billion, indicating a year-over-year growth of 7% at the midpoint. The Zacks Consensus Estimate for the same period is pegged at $1.14 billion, suggesting a rise of 6.83%. The consensus mark for earnings is pegged at $1.25 per share, up by a penny in the past 30 days, indicating a projected 40.45% year-over-year growth.
GoDaddy currently carries a Zacks Rank #2 (Buy), reflecting a positive outlook for the company. The stock has surged 53.5% in the year-to-date period, outperforming the Zacks Computer and Technology sector’s growth of 22.5%. This strong performance highlights investor confidence in GoDaddy’s growth potential.
