Core Insights - GoDaddy (GDDY) reported Q1 2025 earnings of $1.27 per share, missing estimates by 5.93% but showing a 17.6% year-over-year increase [1] - Total revenues reached $1.2 billion, exceeding estimates by 0.6% and increasing 7.7% year-over-year [1] - The total customer count decreased by 2.4% year-over-year, totaling 20,484 customers [1] Revenue Breakdown - Applications and Commerce (A&C) generated $446.4 million, contributing 37.4% to total revenues, with a year-over-year increase of 16.5% [2] - The Core Platform, which includes domains, hosting, and security, increased 3.1% year-over-year to $747.9 million, contributing 62.6% to total revenues [2] - International revenues reached $388.8 million, up 10.2% year-over-year [3] Financial Metrics - Total bookings were $1.4 billion, reflecting a 7.9% year-over-year increase [3] - Average revenues per user (ARPU) were $225, up 9.2% year-over-year [3] - Annualized recurring revenues (ARR) totaled $4.05 billion, increasing 7.5% year-over-year [3] Operating Performance - Normalized EBITDA was $364.4 million, up 16.4% year-over-year, with a margin expansion of 230 basis points [5] - Operating income increased by 40.6% year-over-year to $247.3 million, with an operating margin of 20.7% [6] - Operating expenses rose 3.3% year-over-year to $473.6 million, but as a percentage of revenues, they contracted to 39.7% [5] Cash Flow and Balance Sheet - As of March 31, 2025, cash and cash equivalents were $719.4 million, down from $1.1 billion at the end of 2024 [7] - Total debt stood at $3.8 billion, with net debt at $3.1 billion [7] - Free cash flow for Q1 was $411.3 million, up 25.6% year-over-year [7] Future Guidance - For Q2 2025, GoDaddy expects revenues between $1.195 billion and $1.215 billion, indicating a year-over-year growth of 7% at the mid-point [8] - The company anticipates normalized EBITDA margin of 31% for Q2 [9] - For the full year 2025, GoDaddy reaffirms revenue guidance of $4.86 billion to $4.94 billion, with expected growth of 7% at the mid-point [10]

Core Insights - GoDaddy reported revenue of $1.19 billion for the quarter ended March 2025, reflecting a year-over-year increase of 7.7% and a surprise of +0.60% over the Zacks Consensus Estimate [1] - The company's EPS for the quarter was $1.27, compared to $1.08 in the same quarter last year, although it fell short of the consensus estimate of $1.35 by -5.93% [1] Financial Performance Metrics - Total bookings reached $1.42 billion, exceeding the seven-analyst average estimate of $1.40 billion [4] - The total number of customers at the end of the period was 20.48 million, slightly below the five-analyst average estimate of 20.74 million [4] - Revenue from Applications & Commerce was $446.40 million, surpassing the average estimate of $441.26 million and representing a year-over-year increase of +16.5% [4] - Revenue from the Core Platform was $747.90 million, slightly above the average estimate of $745.99 million, with a year-over-year change of +3.1% [4] - Segment EBITDA for the Core Platform was $235.30 million, compared to the average estimate of $233.35 million [4] - Segment EBITDA for Applications & Commerce was $196.90 million, exceeding the average estimate of $185.34 million [4] Stock Performance - GoDaddy's shares have returned +4.3% over the past month, contrasting with a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

PART I. FINANCIAL INFORMATION [Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents GoDaddy Inc.'s unaudited consolidated financial statements for Q1 2025, highlighting a 7.7% revenue increase, a net income decrease due to a prior-year tax benefit, and significant share repurchases [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$7.84 billion** as of March 31, 2025, primarily due to reduced cash from share repurchases, leading to a significant decrease in stockholders' equity Consolidated Balance Sheet Highlights (unaudited) | Account | March 31, 2025 (In millions) | December 31, 2024 (In millions) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $719.4 | $1,089.0 | | Total current assets | $1,553.6 | $1,951.8 | | Goodwill | $3,559.3 | $3,518.9 | | Total assets | $7,838.8 | $8,235.4 | | **Liabilities & Equity** | | | | Deferred revenue (current) | $2,341.6 | $2,222.3 | | Long-term debt, net | $3,775.7 | $3,779.1 | | Total liabilities | $7,639.1 | $7,543.3 | | Total stockholders' equity | $199.7 | $692.1 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenue increased **7.7%** to **$1.19 billion**, while net income decreased **45.3%** to **$219.5 million** due to a prior-year tax benefit Q1 2025 vs. Q1 2024 Statement of Operations (unaudited) | Metric | Q1 2025 (In millions) | Q1 2024 (In millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $1,194.3 | $1,108.5 | +7.7% | | Operating Income | $247.3 | $175.9 | +40.6% | | Net Income | $219.5 | $401.5 | -45.3% | | Diluted EPS | $1.51 | $2.76 | -45.3% | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased **36.2%** to **$404.7 million**, but significant share repurchases led to a **$369.6 million** net decrease in cash Q1 2025 vs. Q1 2024 Cash Flows (unaudited) | Activity | Q1 2025 (In millions) | Q1 2024 (In millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $404.7 | $297.2 | | Net cash provided by (used in) investing activities | ($3.6) | $43.7 | | Net cash used in financing activities | ($772.2) | ($135.0) | | Net increase (decrease) in cash | ($369.6) | $205.2 | - The significant increase in cash used for financing was primarily due to **$767.4 million** in upfront payments for two accelerated share repurchase (ASR) agreements[32](index=32&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, including **16.5%** A&C revenue growth, and a **$4.0 billion** share repurchase program with **$767.4 million** used in Q1 2025, plus a new **$3.0 billion** authorization - The company reports results through two segments: Applications and Commerce (A&C) and Core Platform (Core)[42](index=42&type=chunk)[106](index=106&type=chunk) - During Q1 2025, the company entered into two accelerated share repurchase (ASR) agreements, making upfront payments of **$767.4 million**. In April 2025, the board approved an additional **$3.0 billion** for share repurchases through 2027[60](index=60&type=chunk)[117](index=117&type=chunk) Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue (In millions) | Q1 2024 Revenue (In millions) | | :--- | :--- | :--- | | Applications and Commerce (A&C) | $446.4 | $383.1 | | Core Platform | $747.9 | $725.4 | - In Q1 2025, the company recognized a **$34.6 million** income tax benefit from a favorable tax court ruling on an uncertain tax position in a foreign jurisdiction[98](index=98&type=chunk)[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **7.7%** revenue increase to **$1.19 billion** and **7.9%** bookings growth, driven by strong A&C segment performance and significant share repurchases Q1 2025 Financial Highlights | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $1,194.3 million | +7.7% | | Total Bookings | $1,417.0 million | +7.9% | | Operating Income | $247.3 million | +40.6% | | Net Income | $219.5 million | -45.3% | | Normalized EBITDA | $364.4 million | +16.4% | | Net cash from operating activities | $404.7 million | +36.2% | [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2025 total revenue grew **7.7%** to **$1.19 billion**, with A&C revenue up **16.5%** and total bookings up **7.9%**, while operating income increased **40.6%** due to lower restructuring charges Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 (In millions) | Q1 2024 (In millions) | Change (%) | | :--- | :--- | :--- | :--- | | Applications and commerce | $446.4 | $383.1 | +16.5% | | Core platform | $747.9 | $725.4 | +3.1% | | **Total revenue** | **$1,194.3** | **$1,108.5** | **+7.7%** | - Total bookings increased by **7.9%** to **$1.42 billion**, driven by strength in domains, aftermarket, and continued adoption of A&C products[137](index=137&type=chunk) - Marketing and advertising expenses increased by **14.4%** (**$12.6 million**) due to discretionary spending in support of strategic initiatives, including the GoDaddy Airo experience[143](index=143&type=chunk) Segment EBITDA (Q1 2025 vs Q1 2024) | Segment | Q1 2025 EBITDA (In millions) | Q1 2024 EBITDA (In millions) | Change (%) | | :--- | :--- | :--- | :--- | | Applications and Commerce | $196.9 | $161.9 | +21.6% | | Core Platform | $235.3 | $216.7 | +8.6% | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Principal liquidity sources are operations and debt, with **$404.7 million** net cash from operations, while **$767.4 million** was used for ASRs, and a new **$3.0 billion** share repurchase program was authorized Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (In millions) | Q1 2024 (In millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $404.7 | $297.2 | | Net cash provided by (used in) investing activities | ($3.6) | $43.7 | | Net cash used in financing activities | ($772.2) | ($135.0) | - In Q1 2025, the company used **$767.4 million** for accelerated share repurchases (ASRs). Upon completion of the ASRs in April 2025, the previous **$4.0 billion** authorization was exhausted[172](index=172&type=chunk) - In April 2025, the board of directors approved a new share repurchase program authorizing up to an additional **$3.0 billion** of its Class A common stock through the end of 2027[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency and interest rate market risks using derivatives, noting that Q1 2025 revenue and bookings growth would have been **30** and **80** basis points higher, respectively, on a constant currency basis - The company uses derivative instruments (foreign exchange forward contracts, cross-currency swaps, interest rate swaps) to hedge against foreign currency and interest rate risks[177](index=177&type=chunk)[179](index=179&type=chunk)[185](index=185&type=chunk) - A portion of the variable-rate debt is converted to fixed rates using interest rate swaps, with notional amounts of **$1,219.4 million** tied to 2029 Term Loans and **$714.4 million** to 2027 Term Loans as of March 31, 2025[188](index=188&type=chunk)[189](index=189&type=chunk) - On a constant currency basis, Q1 2025 total revenue growth would have been **30 basis points** higher, and total bookings growth would have been **80 basis points** higher[180](index=180&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[192](index=192&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[193](index=193&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings have occurred since those described in the 2024 Form 10-K - There have been no material changes to the legal proceedings previously disclosed in the 2024 Form 10-K[196](index=196&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section details significant strategic, operational, financial, and legal/regulatory risks, including intense competition, cybersecurity threats, AI technology adoption, and substantial debt, which could adversely affect the company [Strategic Risks](index=45&type=section&id=Strategic%20Risks) Strategic risks encompass intense competition, challenges in customer acquisition and product development, risks from new technologies like AI, international growth complexities, and potential acquisition failures - The company faces significant competition, which is expected to intensify, and may not be able to maintain its market position against competitors with greater resources or disruptive pricing[214](index=214&type=chunk)[216](index=216&type=chunk) - The use of new and evolving technologies like AI presents risks of reputational harm, liability, intellectual property infringement, and increased regulatory scrutiny from evolving legal frameworks like the E.U. AI Act[205](index=205&type=chunk)[207](index=207&type=chunk) - Future growth depends on increasing international revenue, which exposes the company to various risks including geopolitical instability, regulatory compliance, and currency fluctuations[219](index=219&type=chunk)[220](index=220&type=chunk) - Acquisitions and strategic transactions could divert management attention, disrupt business, and may not yield expected benefits[228](index=228&type=chunk) [Operational Risks](index=53&type=section&id=Operational%20Risks) Operational risks include reliance on technology infrastructure and third-party services like AWS, cybersecurity threats, fraudulent activity, and the importance of effective marketing and high-quality customer care - The company is exposed to system failures and capacity constraints, and relies heavily on third-party cloud services like AWS, where disruptions could adversely affect business[233](index=233&type=chunk)[239](index=239&type=chunk) - Actual or perceived cybersecurity incidents could impair business operations, lead to substantial costs, and cause reputational harm[241](index=241&type=chunk) - The business is exposed to risks from credit card fraud and chargebacks, and must comply with PCI data security standards[255](index=255&type=chunk)[256](index=256&type=chunk) - Failure to provide high-quality customer care, a portion of which is handled by third parties, could harm the brand and operating results[248](index=248&type=chunk)[250](index=250&type=chunk) [Financial Risks](index=60&type=section&id=Financial%20Risks) Financial risks include fluctuating quarterly results, significant indebtedness impacting operational flexibility, delayed revenue recognition from subscription terms, and potential adverse tax law changes or examination outcomes - Quarterly and annual operating results may fluctuate due to various factors, including competition, marketing timing, and macroeconomic conditions, making future results difficult to predict[264](index=264&type=chunk)[265](index=265&type=chunk) - The company's substantial level of indebtedness could require a significant portion of cash flow for debt service, limiting operational flexibility and increasing vulnerability to economic downturns[274](index=274&type=chunk)[277](index=277&type=chunk) - Revenue is recognized ratably over subscription terms, so changes in sales are not immediately reflected in operating results, which can mask deteriorating sales activity[270](index=270&type=chunk) [Legal and Regulatory Risks](index=68&type=section&id=Legal%20and%20Regulatory%20Risks) Legal and regulatory risks involve potential instability from ICANN policies, compliance with evolving international data privacy and cybersecurity laws, liability from customer activities, intellectual property disputes, and adherence to export controls - The business is subject to laws and policies from ICANN, and changes could cause instability in the domain name industry and disrupt business[283](index=283&type=chunk) - The company must comply with numerous local and international laws regarding data privacy and security, such as GDPR and the California Consumer Privacy Act, with non-compliance leading to potential litigation and fines[293](index=293&type=chunk)[294](index=294&type=chunk) - Activities of customers, such as posting illegal or offensive content, could damage the company's reputation and lead to liability, despite safe harbor provisions like the CDA and DMCA[300](index=300&type=chunk)[301](index=301&type=chunk) - The GoDaddy Payments business is subject to extensive regulation, including rules from payment card networks and laws governing money transmission, which could result in fines or restrictions if violated[330](index=330&type=chunk)[331](index=331&type=chunk)[332](index=332&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during Q1 2025 outside of the Accelerated Share Repurchase (ASR) agreements detailed in the financial notes - No shares were repurchased during the three months ended March 31, 2025, other than through the Accelerated Share Repurchase (ASR) agreements detailed in the financial notes[360](index=360&type=chunk) [Other Information](index=85&type=section&id=Item%205.%20Other%20Information) CEO Aman Bhutani and Chief Strategy and Legal Officer Jared Sine adopted Rule 10b5-1 trading plans in March 2025 for share sales scheduled between mid-2025 and mid-2026 - CEO Aman Bhutani adopted a 10b5-1 trading plan in March 2025 for the sale of **72,000 shares** of Class A common stock between July 2025 and July 2026[363](index=363&type=chunk) - Chief Strategy and Legal Officer Jared Sine adopted a 10b5-1 trading plan in March 2025 for the sale of **11,450 shares** of Class A common stock between June 2025 and June 2026[364](index=364&type=chunk) [Exhibits](index=86&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Lists the required CEO and CFO certifications and XBRL data files submitted with the report[365](index=365&type=chunk) [Signatures](index=87&type=section&id=Signatures) The report was signed by Mark McCaffrey, Chief Financial Officer, on May 1, 2025 - The report was signed by Mark McCaffrey, Chief Financial Officer, on May 1, 2025[370](index=370&type=chunk)

Core Viewpoint - GoDaddy reported quarterly earnings of $1.27 per share, missing the Zacks Consensus Estimate of $1.35 per share, but showing an increase from $1.08 per share a year ago, indicating a -5.93% earnings surprise [1] Financial Performance - GoDaddy's revenues for the quarter ended March 2025 were $1.19 billion, surpassing the Zacks Consensus Estimate by 0.60%, and up from $1.11 billion year-over-year [2] - The company has exceeded consensus revenue estimates four times over the last four quarters [2] Stock Performance - GoDaddy shares have declined approximately 4.6% since the beginning of the year, compared to a -5.3% decline in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.49 on revenues of $1.2 billion, and for the current fiscal year, it is $6.35 on revenues of $4.89 billion [7] - The estimate revisions trend for GoDaddy is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Delivery Services industry, to which GoDaddy belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GoDaddy's stock performance [5]

GoDaddy (GDDY) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Christie Masoner - VP of Investor RelationsAman Bhutani - CEOMark McCaffrey - CFOYgal Arounian - Director - Internet Equity ResearchAlec Brondolo - Director - Equity ResearchJosh Beck - Managing DirectorAlex Lavigne - Equity Research AssociateRobert Coolbrith - Vice President, Internet Equity ResearchNaved Khan - Managing Director - Equity Research Conference Call Participants Elizabeth Porter - AnalystVikram Kesavabhotla - S ...

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]

GoDaddy Joshua Baker Baker's Detailing 01 2025 Earnings Results May 1, 2025 BAKERSDETAILING. COM. AU Forward-looking statements and non-GAAP financial measures This creentation contains for ward-looking statements which are subject to the safe fra hop corovisions of the Private Securities Litication Reform Act of 1995. These state estimates and information available to us at the time of this presentation and are not quarantees of future performance. Statements in this presentation involve risks, unce assump ...

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 ...

Company builds on its track record of profitable growth, strong cash generation Repurchases over 25% of its fully diluted shares outstanding since 2022Announces new multi-year $3 billion repurchase authorizationTEMPE, Ariz., May 1, 2025 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) today reported financial results for the first quarter that ended March 31, 2025."GoDaddy's strong first quarter results and reaffirmed 2025 outlook highlight the strength of our execution and the durability of the business model," s ...

GoDaddy (GDDY) is scheduled to report first-quarter 2025 results on May 1.GDDY expects revenues between $1.175 billion and $1.195 billion for the first quarter, indicating 7% growth at the mid-point from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $1.19 billion, suggesting a 7.1% year-over-year rise.The consensus mark for earnings is pegged at $1.41 per share, down 3.4% over the past 30 days, indicating growth of 30.56% from the year- ...