GoDaddy provides domain registration services, content management software, and business application products. It has healthy free cash flow margins with some interesting growth opportunities.
Think you're missing bigger picture - they're basically using the domain moat (over 20% of total domains under management flow through GoDaddy) as a beachhead for higher LTV customer acquisition, i.e. website building/presence/commerce, which is growing like a weed.
Yea I guess I kind of understood that more when I went through some of their competitors (WIX and SQSP), but I guess my concern about competition is just:
1. Can other companies replicate the domain business? (Just not super familiar with that part of the business. A mix of brand and something else maybe?)
2. Are there other companies that can use a leading position in some aspect of starting an online presence (website builders for example) and then use that to upsell additional services?
1. Yes, pretty commoditized business, but brand (via decades of marketing) and top-tier customer support (they invest a ton behind service) are differentiators. Which is why they're like 5x bigger than next largest domain provider.
2. Yeah, I mean all of them have different funnels. Wix has a great freemium funnel, then attaches other services on top, etc. GoDaddy has the best domain funnel, then attaches website building, marketing, commerce, etc. Lots of competition, sure, but lots of space, big TAM, pretty attractive unit economics.
Think you're missing bigger picture - they're basically using the domain moat (over 20% of total domains under management flow through GoDaddy) as a beachhead for higher LTV customer acquisition, i.e. website building/presence/commerce, which is growing like a weed.
Yea I guess I kind of understood that more when I went through some of their competitors (WIX and SQSP), but I guess my concern about competition is just:
1. Can other companies replicate the domain business? (Just not super familiar with that part of the business. A mix of brand and something else maybe?)
2. Are there other companies that can use a leading position in some aspect of starting an online presence (website builders for example) and then use that to upsell additional services?
1. Yes, pretty commoditized business, but brand (via decades of marketing) and top-tier customer support (they invest a ton behind service) are differentiators. Which is why they're like 5x bigger than next largest domain provider.
2. Yeah, I mean all of them have different funnels. Wix has a great freemium funnel, then attaches other services on top, etc. GoDaddy has the best domain funnel, then attaches website building, marketing, commerce, etc. Lots of competition, sure, but lots of space, big TAM, pretty attractive unit economics.