Fasai Budkaew/iStock via Getty Images Investment Thesis GoDaddy Inc. (NYSE:GDDY) stock has gained about 87.51% over the last year, outperforming the S&P 500 by a margin of about 62.51%. Seeking Alpha Looking at this stock from a technical point of view, it is currently in a strong bullish trajectory which, I believe, will be sustained in the long run given the company’s market leadership and brand recognition which, I believe, is a major growth catalyst. Further, the company has resilient financials t ...

Forty-four percent of microbusiness owners believe that generative artificial intelligence will help them compete with larger businessesTEMPE, Ariz., May 7, 2024 /PRNewswire/ -- More U.S. microbusinesses are using generative artificial intelligence (GenAI) to grow and compete, with 50% of owners and operators recently surveyed indicating they have tried Gen AI tools in the past few months. The findings come from GoDaddy's international research initiative, Venture Forward, which quantifies the economic impa ...

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Financial Data and Key Metrics Changes - Total revenue grew to $1.1 billion, up 7% year-over-year, exceeding the high end of guidance [15][20] - Free cash flow increased by 26% to $327 million, with unlevered free cash flow growing 18% to $359 million [18][19] - Normalized EBITDA grew 25% to $313 million, with an expanded margin of 28%, up 400 basis points [17][21] Business Line Data and Key Metrics Changes - Applications and Commerce segment revenue reached $383 million, growing 13% [15][16] - Annualized Gross Payment Volume (GPV) for GoDaddy payments surpassed $2 billion, with segment EBITDA margin at 42%, up over 300 basis points [16][19] - Core platform revenue totaled $725 million, growing 4%, driven by strong demand for domains and aftermarket [16] Market Data and Key Metrics Changes - Customer retention rate remained stable at 85%, with customers holding two or more products above 50% [15] - The company experienced headwinds from divestitures, impacting revenue by approximately 100 basis points [15][20] Company Strategy and Development Direction - The company focuses on enhancing pricing and bundling capabilities, which contributed to the 22% bookings growth in the Applications and Commerce segment [7][8] - GoDaddy Airo is positioned as a key growth driver, enhancing customer engagement and discovery [10][12] - The strategic framework aims for 6% to 8% annual top-line growth, with a target of 33% normalized EBITDA margin by 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the steady macro environment, which is expected to support customer growth [53][78] - The company raised its full-year revenue guidance, now expecting between $4.5 billion and $4.56 billion [20] - Management acknowledged ongoing headwinds from divestitures but remains optimistic about long-term growth prospects [66] Other Important Information - The company repurchased 2.8 million shares year-to-date, totaling $346 million, with a cumulative repurchase of $2.9 billion [19] - Capital expenditures for the quarter were down 81% due to data center divestitures [18] Q&A Session Summary Question: Strong bookings growth and its impact on revenue - Management noted that while bookings growth is strong, revenue recognition can vary, and some headwinds from divestitures will impact revenue growth in the near term [24][25] Question: Insights on Airo's performance and conversion rates - Management highlighted that Airo is performing well in terms of customer engagement and discovery, with expectations for future monetization [26][28] Question: Pricing power and SMB health - Management clarified that pricing changes are based on value-based bundling rather than simple price increases, and SMB sentiment remains optimistic despite challenges [76][78] Question: Drivers of aftermarket growth - Management indicated that the recent growth in the aftermarket is driven by larger transactions, although they expect steady-state growth to remain low single-digit [70][71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-36904 GoDaddy Inc. (Exact name of registrant as specified in its charter) Delaware 46-5769934 (State or o ...

Q1 2024 Earnings Results May 2, 2024 ...

[Q1 2024 Financial Results Overview](index=1&type=section&id=GoDaddy%20Reports%20First%20Quarter%202024%20Financial%20Results) GoDaddy reported strong Q1 2024 results, with significant revenue growth, surging net income, and robust free cash flow, driven by its Applications and Commerce segment [Management Commentary](index=1&type=section&id=Management%20Commentary) GoDaddy's leadership expressed confidence following a strong start to 2024, highlighting the company's execution on its mission to empower entrepreneurs - CEO Aman Bhutani highlighted a great start to 2024, focusing on empowering entrepreneurs and driving profitable growth to maximize free cash flow[3](index=3&type=chunk) - CFO Mark McCaffrey underscored the commitment to sustainable growth and disciplined capital allocation, leveraging the company's unified software platform to enhance customer attach, conversion, and retention for long-term shareholder value[3](index=3&type=chunk) [Business Highlights](index=1&type=section&id=Business%20Highlights) GoDaddy reported strong Q1 2024 results with total revenue reaching **$1.1 billion**, a **7% year-over-year increase**, led by the Applications and Commerce segment Q1 2024 Key Performance Indicators (YoY) | Metric | Q1 2024 Value | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $1.1 billion | 7% | | Applications and Commerce (A&C) Revenue | $383.1 million | 13% | | Core Platform Revenue | $725.4 million | 4% | | Total Bookings | $1.3 billion | 9% | | Net Income | $401.5 million | 747% | | Normalized EBITDA (NEBITDA) | $313.0 million | 25% | | Free Cash Flow | $327.4 million | 26% | - The innovative GoDaddy Airo™ experience, an AI-powered tool, began its rollout to the company's 21 million customer base in March, with plans for expansion to more markets throughout the year[5](index=5&type=chunk) [Consolidated First Quarter Financial Highlights](index=2&type=section&id=Consolidated%20First%20Quarter%20Financial%20Highlights) In Q1 2024, GoDaddy's total revenue grew **7.0% YoY to $1.11 billion**, with net income surging to **$401.5 million** due to a non-cash tax benefit Q1 2024 vs Q1 2023 Financial Comparison | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,108.5 million | $1,036.0 million | +7.0% | | Net Income | $401.5 million | $47.4 million | +747.0% | | NEBITDA | $313.0 million | $249.7 million | +25.4% | | Free Cash Flow | $327.4 million | $259.2 million | +26.3% | | Total Bookings | $1,312.7 million | $1,199.2 million | +9.5% | | ARPU | $206 | $197 | +4.6% | - Net income for Q1 2024 was significantly impacted by a non-routine, non-cash tax benefit of **$267.4 million** related to a subsidiary conversion[6](index=6&type=chunk) [Corporate Developments and Financial Position](index=2&type=section&id=Corporate%20Developments%20and%20Financial%20Position) GoDaddy continued share repurchases and maintained a solid financial position while undertaking corporate restructuring [Share Repurchases and Balance Sheet](index=2&type=section&id=Share%20Repurchases%20and%20Balance%20Sheet) GoDaddy continued its capital return program, repurchasing **2.8 million shares for $345.6 million** year-to-date through April 30, 2024 - Year-to-date through April 30, 2024, the company repurchased **2.8 million shares for $345.6 million**, averaging **$121.49 per share**, contributing to an approximate **22% reduction** in fully diluted shares since the start of the current **$4.0 billion** buyback authorization[8](index=8&type=chunk) Balance Sheet Summary (as of March 31, 2024) | Item | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $664.0 | | Total debt | $3,900.0 | | Net debt | $3,200.0 | [Corporate Actions](index=2&type=section&id=Corporate%20Actions) In the first quarter, GoDaddy executed restructuring efforts, including a reduction in force and a subsidiary conversion that generated a significant non-cash tax benefit - The company implemented restructuring efforts, including a workforce reduction of about **180 employees**, leading to **$22.4 million** in pre-tax charges for severance and other costs[10](index=10&type=chunk) - A conversion of the Desert Newco, LLC subsidiary from a partnership to a disregarded entity resulted in a non-cash tax benefit of **$267.4 million**, simplifying the company's capital structure[11](index=11&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) GoDaddy provided optimistic guidance for Q2 and full-year 2024, projecting continued revenue growth and strong profitability [Q2 2024 Guidance](index=3&type=section&id=Q2%202024%20Guidance) For the second quarter of 2024, GoDaddy anticipates total revenue between **$1.10 billion and $1.12 billion**, marking a **6% year-over-year growth** at the midpoint Q2 2024 Outlook | Metric | Guidance Range/Value | | :--- | :--- | | Total Revenue | $1.10B - $1.12B | | YoY Revenue Growth (midpoint) | 6% | | A&C Revenue Growth | Low- to mid-teens | | Core Revenue Growth | Low single digits | | NEBITDA Margin | ~28% | [Full Year 2024 Guidance](index=3&type=section&id=Full%20Year%202024%20Guidance) GoDaddy raised its full-year 2024 revenue forecast to a range of **$4.50 billion to $4.56 billion**, representing **6.5% growth** at the midpoint Full Year 2024 Outlook | Metric | Guidance Range/Value | | :--- | :--- | | Total Revenue | $4.50B - $4.56B | | YoY Revenue Growth (midpoint) | 6.5% | | NEBITDA Margin | ~29% | | Unlevered Free Cash Flow | At least $1.4 billion (+12% YoY) | | Free Cash Flow | At least $1.2 billion (+11% YoY) | [Consolidated Financial Statements (unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents GoDaddy's unaudited financial statements, including statements of operations, balance sheets, and cash flows for Q1 2024 [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2024, GoDaddy's revenue increased to **$1.11 billion**, with net income surging to **$401.5 million** due to a significant tax benefit Q1 2024 Income Statement Highlights (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $1,108.5 | $1,036.0 | | Operating Income | $175.9 | $70.8 | | Income Before Taxes | $143.2 | $47.6 | | Benefit for Income Taxes | $258.3 | ($0.2) | | Net Income | $401.5 | $47.4 | | Diluted EPS | $2.76 | $0.30 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, GoDaddy's total assets stood at **$8.0 billion**, with total stockholders' equity increasing substantially to **$414.8 million** Balance Sheet Comparison (in millions) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $664.0 | $458.8 | | Total Assets | $7,978.8 | $7,564.9 | | Total Liabilities | $7,564.0 | $7,502.7 | | Total Stockholders' Equity | $414.8 | $62.2 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, GoDaddy generated **$297.2 million** in net cash from operating activities, with a net increase in cash of **$205.2 million** Q1 Cash Flow Summary (in millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $297.2 | $270.3 | | Net cash provided by (used in) investing activities | $43.7 | ($22.8) | | Net cash used in financing activities | ($135.0) | ($124.2) | | Net increase in cash and cash equivalents | $205.2 | $118.4 | | Cash and cash equivalents, end of period | $664.0 | $892.4 | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides definitions and reconciliations for non-GAAP financial measures and other key operating metrics used in the report [Definitions of Non-GAAP and Other Metrics](index=5&type=section&id=Definitions%20of%20Non-GAAP%20and%20Other%20Metrics) This section defines key non-GAAP and operating metrics used in the report to supplement GAAP financial results, providing clarity on how management evaluates business performance - The report defines several key performance metrics, including: - **Total Bookings:** Total value of customer contracts entered into during the period - **NEBITDA:** Net income adjusted for items like depreciation, interest, taxes, and equity-based compensation - **Free Cash Flow:** Unlevered free cash flow less interest payments - **ARR:** Quarterly recurring revenue multiplied by four[22](index=22&type=chunk)[24](index=24&type=chunk)[30](index=30&type=chunk) [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed tables reconciling GAAP figures to their non-GAAP counterparts, showing adjustments for key metrics like NEBITDA and Free Cash Flow Reconciliation of Net Income to NEBITDA (Q1 2024, in millions) | Line Item | Amount | | :--- | :--- | | Net income | $401.5 | | Adjustments (Depreciation, Interest, Taxes, etc.) | ($88.5) | | **NEBITDA** | **$313.0** | Reconciliation to Free Cash Flow (Q1 2024, in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $297.2 | | Capital expenditures | ($4.4) | | Other adjustments | $34.6 | | **Free cash flow** | **$327.4** | Net Debt Calculation (March 31, 2024, in millions) | Line Item | Amount | | :--- | :--- | | Total debt | $3,869.9 | | Less: cash and cash equivalents | ($664.0) | | **Net debt** | **$3,205.9** | [Shares Outstanding and Constant Currency](index=11&type=section&id=Shares%20Outstanding%20and%20Constant%20Currency) As of March 31, 2024, total common stock outstanding was **142.4 million shares**, reflecting the impact of share repurchases Total Common Stock Outstanding (in thousands) | Date | Shares | | :--- | :--- | | March 31, 2024 | 142,429 | | March 31, 2023 | 154,421 | - The constant currency adjustment for Q1 2024 was minimal, reducing reported revenue by **$0.5 million** and bookings by **$0.1 million** to show underlying performance without currency fluctuations[47](index=47&type=chunk)

The upcoming report from GoDaddy (GDDY) is expected to reveal quarterly earnings of $0.97 per share, indicating an increase of 223.3% compared to the year-ago period. Analysts forecast revenues of $1.1 billion, representing an increase of 5.9% year over year.Over the last 30 days, there has been a downward revision of 0.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of ...

Web provider GoDaddy has introduced a smaller point-of-sale (POS) tool for small businesses.Smart Terminal Flex, announced Thursday (April 25) is designed to fit inside an apron pocket while still helping businesses operate with more efficiency.The tool, the company said in a news release, is “ideal for brick-and-mortar businesses, particularly those that have limited space or take payments away from a typical counter, like cafes, food trucks or auto body shops.”It also includes a dashboard where business o ...

Small yet powerful, Smart Terminal Flex is packed with modern features that help businesses operate more efficiently. Post this Compact without sacrificing functionality. Flex has a six-inch touch screen, built-in printer and barcode scanner and a nine-hour battery life to last the whole workday. User-friendly, enabling faster checkouts. Intuitive interface designed with product images, catalog search and customizable favorites list to help minimize errors and speed up checkouts. Able to simplify busine ...