Starboard Value says web services firm GoDaddy is “deeply” undervalued and urged its board to consider a potential sale if financial performance cannot be improved.

“It is clear to us, and should be clear to management and the board, that a meaningful value creation opportunity exists based on better balancing growth and profitability and delivering on financial metrics that align with peers,” the 7.8% shareholder stated in a letter to GoDaddy’s board. “Should the company not be able to execute on these goals or should the market continue to discount the opportunity, we believe the board should also remain openminded about alternative value creation opportunities, which could include a potential sale of the company,” it added.

The activist investment firm urged GoDaddy “to be objective in assessing the prospects for significant revenue growth,” while suggesting that it should improve margins by cutting down expenses.

Starboard predicted that GoDaddy was set to miss most of the targets set for the next two years at its 2022 investor day, including those for revenue and adjusted core profit growth. It also highlighted the company’s technology and development costs, which have outpaced revenue growth over the last five years and totaled nearly $800 million last year.

Starboard first disclosed a 6.5% stake in GoDaddy in December 2021, seven months after the web services company was profiled on DMI’s Vulnerability module as a potential activist target due to its relative undervaluation. A month later, GoDaddy announced the replacement of its chief operating officer.

“Since late 2021, the GoDaddy management team and several directors have engaged in regular and constructive discussions with Starboard Value LP. We value their perspective and look forward to continuing the dialogue,” the company said in a statement sent to Reuters News.

Starboard has targeted several companies so far in 2023, including in the internet space. It nominated three directors at U.S. tech company LivePerson but withdrew the slate following the resignation of CEO Robert LoCascio, who Starboard had accused of poor leadership.

GoDaddy shares were up 2.2% at $75.33 in mid-day trade Tuesday.