UBS reiterated a Buy rating and $42.00 price target on GoDaddy Inc (NYSE: GDDY) following the company's 4Q earnings report. GoDaddy reported Q4 total revenue of $425M, slightly beating the Street's $423M. Total bookings of $464M were inline with consensus estimates, as the company launched 10 new markets in Asia. 2016 is expected to be the first year in the company's history the majority of new customers come from outside the US.

Analyst Brent Thill commented, "With shares trading at <20x CY16e EV/FCF, GDDY's Q4 results provided further indication of what we think a mid-cap manager would want to own in this environment. Metrics looked good across the board, especially on the bottom line w/adj. EBITDA +30% y/y (at a 17% margin) and unlevered FCF up nearly 150% (to $52M). The only area to drill into is ARPU, which grew mid-single digits for the second consecutive qtr (vs. 9-10% historical avg) due to FX headwinds and impacts from product bundling. International expansion continues to play a key part in the next leg of the story, w/ 2016 expected to be the first year in the company's history the majority of new customers come from outside the US. While these new customers may start w/domains, we think the real magic is in the newer product categories (productivity, email mktg) and if attach follows through, this can create some truly favourable economics. Our thesis remains unchanged, GDDY will continue to deliver consistent results that contribute to building/maintaining a sustainable brand for the foreseeable future."

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Shares of GoDaddy Inc closed at $29.10 yesterday.