Financial Data and Key Metrics Changes - In Q1 2025, the company achieved 8% bookings growth and expanded normalized EBITDA margin to 31%, resulting in a 26% increase in free cash flow [5][14][17] - Total revenue grew 8% year-over-year to $1.2 billion, with annual recurring revenue increasing by 7% to $4.1 billion [14][15] - Free cash flow reached $411 million, reflecting a 26% growth [17][19] Business Line Data and Key Metrics Changes - The ANC segment saw a revenue growth of 17% to $446 million, with bookings increasing by 14% [14][15] - The core platform segment delivered a revenue growth of 3% to $748 million, with bookings growing by 5% [15][16] - The average revenue per user (ARPU) grew by 9% to $225 on a trailing twelve-month basis [17][110] Market Data and Key Metrics Changes - International revenue grew by 10%, exceeding prior expectations due to strong aftermarket sales [15] - Customer retention rates improved to above 85% for customers on the GoDaddy platform [17] Company Strategy and Development Direction - The company is focused on attracting high-intent customers and creating long-term shareholder value through disciplined innovation and execution of its strategy [5][6] - Pricing and bundling initiatives are being tested across customer cohorts, with positive results encouraging further development [8][59] - The company aims to maximize free cash flow over the long term and has reaffirmed its full-year guidance for 2025 [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted some pressure in customer sentiment but emphasized resilience among small businesses [26][30] - The company remains confident in its full-year guidance and Investor Day targets, citing strong customer performance and the value of its products [14][20] - The management highlighted the importance of their tools in helping customers navigate a complex economic landscape [13][81] Other Important Information - The company completed its $4 billion share repurchase authorization, reducing fully diluted shares outstanding by over 25% since the program's inception [19] - The company is targeting a net leverage ratio of under three times moving forward [19] Q&A Session Summary Question: Can you provide insights on macro changes and small business sentiment? - Management acknowledged some pressure in customer sentiment but noted that customers remain generally positive about their business performance [26][30] Question: What are the early signs from the Arrow Plus SKU? - Management reported early positive engagement with Arrow Plus, although it is still in the testing phase [32][33] Question: Can you quantify average order size changes? - Management indicated that average order size is increasing, with strong attachment rates for additional products [38][39] Question: What is the outlook for customer growth? - Management stated that customer growth is not the primary focus, but they expect to return to positive customer growth later in the year [64][65] Question: What is driving gross margin expansion? - Management attributed gross margin expansion to favorable product mix rather than specific cost savings [66] Question: How is the agency announcement impacting the addressable opportunity? - Management noted that it is still early in the agency space, but they are optimistic about the potential for their products [120]

Financial Data and Key Metrics Changes - In Q1 2025, GoDaddy achieved 8% bookings growth and expanded normalized EBITDA margin to 31%, resulting in a 26% increase in free cash flow [4][13][15] - Total revenue grew 8% year-over-year to $1.2 billion, with annual recurring revenue increasing by 7% to $4.1 billion [13][14] - Free cash flow reached $411 million, reflecting a 26% growth [16][18] Business Line Data and Key Metrics Changes - The ANC segment saw a revenue growth of 17% to $446 million, with bookings increasing by 14% [13][14] - The core platform segment delivered a revenue growth of 3% to $748 million, with bookings growing by 5% [14][15] - Average order size increased, and ARPU grew by 9% to $225 on a trailing twelve-month basis [16][114] Market Data and Key Metrics Changes - International revenue grew by 10%, exceeding prior expectations due to strong aftermarket sales [13][14] - Customer retention rates improved, with retention above 85% for customers on the GoDaddy platform [16] Company Strategy and Development Direction - GoDaddy's strategy focuses on attracting high-intent customers, creating customer value, and transforming that value into long-term shareholder value [5][10] - The company is committed to a disciplined capital allocation framework, including a new share repurchase authorization of up to $3 billion through 2027 [18][20] - The company aims to achieve $4.5 billion in cumulative free cash flow generation by 2026, with annual revenue growth of 6% to 8% [21] Management's Comments on Operating Environment and Future Outlook - Management noted some pressure in small business sentiment but emphasized the resilience of their customer base [27][30] - The company reaffirmed its full-year 2025 guidance, expecting total revenue growth of 7% at the midpoint [19][20] - Management expressed confidence in the durability of their business model and the importance of their products to micro businesses [80][82] Other Important Information - GoDaddy's Aero initiative is showing positive results, with improvements in customer behavior and engagement [9][10] - The company is leveraging generative AI to enhance customer experiences and automate tasks [10][58] Q&A Session Summary Question: Insights on macroeconomic changes and small business sentiment - Management observed some pressure in customer sentiment but noted that customers remain resilient and optimistic about their own business performance [27][30] Question: Early signs from the Arrow Plus SKU - Management indicated that Arrow continues to perform well, with improvements in order size and customer engagement [33][34] Question: Customer count expectations and impact of marketing campaigns - Management confirmed stability in customer count and noted that the Super Bowl ad campaign has increased awareness of GoDaddy's offerings [45][47] Question: Drivers of gross margin expansion - Management attributed gross margin expansion to favorable product mix and operational efficiencies [66][68] Question: Differentiation between Arrow and Arrow Plus - Arrow provides basic functionality for free, while Arrow Plus offers a higher-end SKU for engaged customers [72][73] Question: Update on Gabby and AI initiatives - Gabby is evolving to take on more tasks, with potential for future external use [115] Question: Addressable opportunity in the agency space - Management acknowledged that the agency space is still early for GoDaddy but sees it as a long-term opportunity [126][127]

Financial Performance - Q1 2025 revenue reached $1.2 billion, reflecting an 8% growth [30, 48] - Applications & Commerce revenue grew by 17% to $446 million [30, 48] - Core Platform revenue increased by 3% to $748 million [30, 48] - Q1 NEBITDA was $364 million, with a margin expansion of over 200 bps to 31% [32, 36] - Q1 free cash flow grew by 26% to $411 million [36] Financial Outlook - The company anticipates Q2 2025 revenue between $1.195 billion and $1.215 billion [47] - The company projects full-year 2025 revenue between $4.860 billion and $4.940 billion [47] - The company expects NEBITDA margin to be approximately 31% for Q2 2025 and anticipates over 100 bps margin expansion for the full year [47] - The company forecasts free cash flow to exceed $1.5 billion for the full year 2025 [47] Capital Allocation - The company completed a $4 billion share repurchase authorization, buying back 43.7 million shares at an average price of $91 per share [43, 44] - The company reduced gross shares outstanding by over 25% [43, 45]

news release GoDaddy Reports First Quarter 2025 Financial Results "GoDaddy remains well-positioned for long-term success by driving tangible, measurable outcomes that help our customers grow and thrive in any macroeconomic landscape," said GoDaddy CEO Aman Bhutani. "GoDaddy's durable model is backed by strong fundamentals, and its resilient strategy continues to deliver for shareholders." First Quarter 2025 Business and Financial Highlights 100 S. Mill Ave Ste. 1600 Tempe, AZ 85281 T: 480.505.8800 https://i ...

Core Insights - GoDaddy reported strong first quarter results for 2025, with total revenue of $1.194 billion, representing an 8% year-over-year increase [5][6] - The company completed its 2022 share repurchase program, retiring over 25% of its fully diluted shares, and announced a new $3 billion multi-year repurchase authorization through 2027 [2][10] - GoDaddy's business model is described as durable, with a focus on delivering measurable outcomes for customers, positioning the company for long-term success [2] Financial Performance - Total revenue for Q1 2025 was $1,194.3 million, up from $1,108.5 million in Q1 2024, marking a 7.7% increase [5][6] - Applications and Commerce revenue grew by 16.5% year-over-year to $446.4 million, while Core platform revenue increased by 3.1% to $747.9 million [5][6] - Operating income rose significantly by 40.6% to $247.3 million, with an operating income margin of 20.7% [5][6] Cash Flow and Share Repurchases - Net cash provided by operating activities was $404.7 million, a 36.2% increase from $297.2 million in the previous year [6][11] - Free cash flow reached $411.3 million, up 26% year-over-year [6][11] - GoDaddy repurchased 4.4 million shares in April 2025 at an average price of $176.02, fully utilizing the remaining $767.4 million under the previous repurchase authorization [9][10] Business Outlook - For Q2 2025, GoDaddy expects total revenue between $1.195 billion and $1.215 billion, indicating a year-over-year growth of approximately 7% [12] - The company reaffirms its full-year 2025 revenue guidance of $4.860 billion to $4.940 billion, also reflecting a 7% growth at the midpoint [12] - GoDaddy anticipates NEBITDA margin to be around 31% for Q2 2025, with an expected margin expansion of approximately 100 basis points for the full year [13] Balance Sheet - As of March 31, 2025, GoDaddy reported total cash and cash equivalents of $719.4 million and total debt of $3.8 billion, resulting in net debt of $3.1 billion [11][34] - The total assets of the company were $7.839 billion, down from $8.235 billion at the end of 2024 [34]

Core Insights - GoDaddy (GDDY) is set to report first-quarter 2025 results on May 1, with expected revenues between $1.175 billion and $1.195 billion, indicating a 7% growth at the mid-point from the previous year [1] - The Zacks Consensus Estimate for first-quarter 2025 revenues is $1.19 billion, suggesting a 7.1% year-over-year rise [1][2] Revenue and Earnings Expectations - The consensus estimate for earnings is $1.41 per share, reflecting a 30.56% growth from the year-ago quarter, despite a 3.4% decline over the past 30 days [2] - GoDaddy has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 3.42% [2] Key Factors Impacting Performance - Currency fluctuations are expected to negatively impact international revenues, with U.S. revenue growth anticipated to outpace international growth by 200 basis points [3] - Increased marketing spend to support the launch of the Airo platform is likely to pressure margins in the first quarter [3] - Customer retention challenges are expected due to divestitures, lack of deep discounting, and ongoing customer migrations [4] Positive Developments - GoDaddy is expected to benefit from strong early adoption of the Airo platform, with 50% of paid subscriptions in Q4 originating from Airo, driven by increased customer engagement [5] - The company aims for Applications & Commerce (A&C) revenue growth in the mid-teens, with a Zacks Consensus Estimate for A&C revenues at $441 million, indicating a 15.1% year-over-year growth [6] Earnings Outlook - GoDaddy currently has an Earnings ESP of -17.31% and a Zacks Rank of 4 (Sell), indicating lower odds of an earnings beat [7]

GoDaddy (GDDY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than expectatio ...

Core Insights - GoDaddy has launched a new partner program called GoDaddy Agency, aimed at connecting digital agencies with small and mid-sized business leads, providing them with tools, services, and support to enhance their client offerings [1][2]. Group 1: Program Features - GoDaddy Agency is designed to serve as a strategic referral partner for digital agencies, enabling them to scale their business through a consistent flow of qualified leads [2][6]. - The program offers tailored support, including access to premium WordPress tools, expert guidance, and co-branded marketing campaigns for top-performing partners [9]. Group 2: Target Audience - The program is specifically beneficial for freelance web developers, web design, and digital marketing consulting agencies in the U.S., allowing them to grow their client base and revenue by connecting with small and mid-sized businesses seeking professional support [3][4]. Group 3: Market Positioning - GoDaddy Agency differentiates itself from other partner programs by providing real, qualified customer referrals, many of whom have already shown interest in GoDaddy's services [6]. - A study indicated that 68% of agencies focus on expanding service offerings, while 67% view referrals as a key growth indicator, both of which are directly supported by the GoDaddy Agency program [7].

Financial Results Announcement - GoDaddy Inc. will release its financial results for the first quarter of 2025 on May 1, 2025, after the U.S. stock market closes [1] - Following the news release, GoDaddy management will host a live webcast at 5:00 p.m. Eastern Time [1] Webcast Information - A recording of the webcast will be available on GoDaddy's Investor Relations website after its completion [2] Company Overview - GoDaddy assists millions of entrepreneurs globally in starting, growing, and scaling their businesses [3] - The company offers services such as naming ideas, building websites and logos, selling products and services, and accepting payments [3] - GoDaddy Airo®, an AI-powered experience, helps small businesses get online quickly, drive traffic, and boost sales [3] - Expert guides are available 24/7 to provide assistance to users [3]

Core Insights - GoDaddy (GDDY) shares have returned 51% over the trailing 12 months, significantly outperforming the broader Zacks Computer & Technology sector's 7% and the Zacks Internet - Delivery Services industry's 37.1% [1] - The outperformance is attributed to GoDaddy's expanding AI-powered portfolio and strong performance in the Application and Commerce segment, which generated $441.2 million in Q4 2024, accounting for 37% of total revenues and reflecting a year-over-year growth of 16.9% [2] Group 1: Performance Metrics - GDDY shares have outperformed industry peers such as QuinStreet (QNST), MakeMyTrip (MMYT), and Asure Software (ASUR), which returned 9.4%, 48.5%, and 24.3% respectively over the same period [1] - The Zacks Consensus Estimate for Q1 2025 revenues is $1.19 billion, indicating a growth of 7.21% compared to the previous year [11] Group 2: AI Integration and Product Development - GoDaddy has made significant advancements in integrating AI into its portfolio, particularly with the GoDaddy Airo platform, which has gained traction with 50% of paid subscriptions originating from Airo's experience [5][6] - The launch of Airo Plus, an upgraded version of Airo, has enhanced customer engagement and monetization capabilities [7] - GoDaddy's marketing efforts, including a Super Bowl ad for Airo, have increased customer interest and engagement [8] Group 3: Future Guidance and Market Position - For Q1 2025, GoDaddy expects revenues between $1.175 billion and $1.195 billion, with Application and Commerce revenue growth anticipated in the mid-teens [10] - GoDaddy's stock is currently trading at a premium with a forward Price/Sales ratio of 5.11X compared to the industry average of 1.84X, indicating a stretched valuation [12] Group 4: Competitive Landscape and Challenges - GoDaddy faces intense competition from companies like Newfold Digital, Namecheap, and Shopify, which poses a threat to its market share [14] - Macroeconomic challenges, including high interest rates and inflation, may negatively impact GoDaddy's prospects, particularly as its clientele consists mainly of small and medium-sized businesses [15]