Believes that Opportunities Continue to Exist to Significantly Improve GoDaddy's Combination of Growth and Profitability Views the Company's Recent Disclosure of Improved Profitability Targets as a Step in the Right Direction Believes GoDaddy Remains Undervalued with an Opportunity for Significant Shareholder Value Creation Intends to Closely Monitor the Company's Upcoming Q4 FY23 Earnings Call and March 2024 Investor Day to Ensure that Appropriate Operating and Financial Targets Are Set for the Near, Mediu ...

TEMPE, Ariz., Jan. 22, 2024 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) today announced Go Daddy Operating Company, LLC and GD Finance Co, LLC (each, a subsidiary of GoDaddy Inc. and together, the "Borrowers") closed the previously announced credit agreement refinancing. In connection with the closing, the Borrowers entered into a Tenth Amendment (the "Tenth Amendment") to the Second Amended and Restated Credit Agreement, dated as of February 15, 2017 (as amended, restated, supplemented or otherwise modified, ...

TEMPE, Ariz., Jan. 10, 2024 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) today announced Go Daddy Operating Company, LLC and GD Finance Co, LLC (together with Go Daddy Operating Company, LLC, the "Borrowers") allocated a $1,752 million tranche (the "Replacement Term Loans") of term loans maturing in 2029, the proceeds of which will be used to refinance all outstanding Tranche B-5 Term Loans under the Second Amended and Restated Credit Agreement, dated as of February 15, 2017 (as amended, restated, supplemented ...

GoDaddy, Inc. (NYSE:GDDY) Q3 2023 Earnings Conference Call November 3, 2023 5:00 PM ET Company Participants Christie Masoner - Vice President, Investor Relations Aman Bhutani - Chief Executive Officer Mark McCaffrey - Chief Financial Officer Conference Call Participants Vikram Kesavabhotla - Baird Trevor Young - Barclays Matthew Pfau - William Blair Christopher Kuntarich - UBS Naved Khan - B. Riley Ella Smith - JPMorgan Ygal Arounian - Citi Ken Wong - Oppenheimer Deepak Mathivanan - Wolfe Christie Masoner G ...

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 September 30, 2023 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) (State or other jurisdictio ...

GoDaddy Inc. (NYSE:GDDY) Q2 2023 Earnings Call Transcript August 3, 2023 5:00 PM ET Company Participants Christie Masoner - Head, Investor Relations Aman Bhutani - Chief Executive Officer Mark McCaffrey - Chief Financial Officer Conference Call Participants Matt Pfau - William Blair Vikram Kesavabhotla - Baird Trevor Young - Barclays Naved Khan - B. Riley Ygal Arounian - Citi Christie Masoner Good afternoon, and thank you for joining us for GoDaddy's Second Quarter 2023 Earnings Call. I'm Christie Masone, H ...

Financial Performance - GoDaddy reported a significant increase in revenue, reaching $1.1 billion for the quarter ended June 30, 2023, representing a year-over-year growth of 10%[2]. - Total revenue for Q2 2023 was $1,048.1 million, a 3.0% increase from $1,015.5 million in Q2 2022[12]. - Net income attributable to GoDaddy Inc. for Q2 2023 was $82.9 million, compared to $90.4 million in Q2 2022, reflecting a decrease of 8.3%[12]. - Operating income for Q2 2023 was $119.6 million, a slight decrease from $124.6 million in Q2 2022, representing a decline of 4.0%[12]. - Comprehensive income attributable to GoDaddy Inc. for Q2 2023 was $104.7 million, compared to $114.5 million in Q2 2022, a decrease of 8.0%[14]. - Net income for the quarter ended June 30, 2023, was $82.9 million, an increase from the previous quarter's $47.3 million[18]. - Total revenue for the three months ended June 30, 2023, was $1,048.1 million, compared to $1,015.5 million in the same period last year[121]. - Net income decreased by 8.2% to $83.1 million[121]. Customer Metrics - The company added approximately 200,000 new customers during the quarter, bringing the total customer count to 20 million, which is a 5% increase compared to the previous year[2]. - GoDaddy's customer retention rate remains high at 80%, demonstrating strong customer loyalty and satisfaction[2]. - Total customers at period end reached 20,985 thousand, an increase from 20,876 thousand[122]. - Average revenue per user (ARPU) increased to $199 from $193 year-over-year[122]. Revenue Segmentation - Revenue from Applications and Commerce (A&C) segment was $351.7 million for the three months ended June 30, 2023, compared to $317.2 million for the same period in 2022, reflecting an increase of 10.9%[33]. - The Core Platform segment generated $492.7 million in revenue for the three months ended June 30, 2023, up from $485.0 million in the prior year, representing a growth of 1.4%[33]. - Core segment revenue for Q2 2023 was $696.4 million, slightly down from $698.3 million in Q2 2022, a decrease of 0.3%[110]. - A&C segment revenue grew by 11% for the three months ended June 30, 2023, reaching $351.7 million, driven by a 10.5% increase in productivity applications revenue[153]. Expenses and Costs - Technology and development expenses for Q2 2023 were $219.2 million, up from $198.1 million in Q2 2022, an increase of 10.6%[12]. - Cost of revenue (excluding depreciation and amortization) increased by 7.7% to $388.4 million for the three months ended June 30, 2023, primarily due to higher software licensing fees and increased domain costs[137]. - Marketing and advertising expenses decreased by 11.1% to $89.5 million for the three months ended June 30, 2023, primarily due to lower discretionary spending[141]. - General and administrative expenses decreased by 2.1% to $92.7 million for the three months ended June 30, 2023, mainly due to decreased acquisition-related expenses[144]. - Depreciation and amortization expenses decreased by 10.1% to $43.5 million for the three months ended June 30, 2023, primarily due to certain acquired intangibles reaching the end of their useful lives[149]. Cash Flow and Assets - Cash and cash equivalents decreased to $582.6 million as of June 30, 2023, down from $774.0 million at the end of 2022, a decline of 24.7%[9]. - Total current assets decreased to $1,411.8 million as of June 30, 2023, down from $1,582.6 million at the end of 2022, a decline of 10.8%[9]. - Operating cash flow for the quarter was $468.3 million, a decrease from $501.8 million in the same quarter of the previous year, indicating a decline of approximately 6.6%[22]. - Net cash provided by operating activities decreased by 21.1% to $198.0 million[119]. Debt and Liabilities - Total liabilities increased to $6,793.9 million as of June 30, 2023, compared to $6,973.5 million at the end of 2022, a decrease of 2.6%[9]. - Long-term debt as of June 30, 2023, amounted to $3,888.7 million, slightly down from $3,901.3 million at the end of 2022[60]. - The company has a substantial level of indebtedness and must manage its ability to repay debt effectively[4]. Strategic Initiatives - GoDaddy is focusing on expanding its product offerings, with plans to launch three new solutions in the next quarter aimed at enhancing customer experience[2]. - The company has initiated a strategic partnership with a leading e-commerce platform to enhance its market presence and customer acquisition efforts[2]. - The restructuring plan announced in February 2023 aims to reduce future operating expenses and improve cash flows, involving a reduction in force and asset sales[38]. - The company is actively exploring potential acquisition opportunities to bolster its service offerings and market share[2]. Future Outlook - The company anticipates revenue growth of 8-10% for the upcoming quarter, projecting total revenue between $1.12 billion and $1.14 billion[2]. - Future expectations regarding revenue, cost of revenue, and operating expenses are subject to changes in technology and market conditions[4]. - The company plans to continue its efforts in international growth and managing foreign currency exchange rate fluctuations[4].

GoDaddy Inc. (NYSE:GDDY) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Christie Masoner - Head, Investor Relations Aman Bhutani - Chief Executive Officer Mark McCaffrey - Chief Financial Officer Conference Call Participants Matt Pfau - William Blair Trevor Young - Barclays John Byun - Jefferies Clarke Jeffries - Piper Sandler Aaron Kessler - Raymond James Mark Zgutowicz - The Benchmark Company Ygal Arounian - Citi Ella Smith - JPMorgan Christie Masoner Good afternoon, and than ...

Q1 2023 Financial Results May 4, 2023 Henry Ho Joyful Garden JOYFUL.BOSTON © 2023 GoDaddy Inc. Forward–looking statements and non-GAAP financial measures ...

Part I [Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents GoDaddy's unaudited consolidated financial statements for Q1 2023, showing revenue growth to $1.04 billion but reduced net income of $47.4 million due to a restructuring charge [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets increased to $7.09 billion, liabilities rose to $7.45 billion, and stockholders' deficit widened to $355.5 million Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $892.4 | $774.0 | | Goodwill | $3,549.1 | $3,536.9 | | Total Assets | $7,092.3 | $6,973.5 | | **Liabilities & Stockholders' Deficit** | | | | Deferred revenue (Current) | $2,043.2 | $1,954.0 | | Long-term debt, net | $3,809.6 | $3,812.9 | | Total Liabilities | $7,447.8 | $7,302.8 | | Total stockholders' deficit | $(355.5) | $(329.3) | - The company classified **$21.7 million** in assets and **$13.9 million** in liabilities as 'held for sale' as of March 31, 2023, related to its restructuring plan[19](index=19&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2023 total revenue increased to $1.036 billion, but operating income decreased to $70.8 million and net income to $47.4 million, primarily due to a restructuring charge Q1 2023 vs. Q1 2022 Performance (in millions, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Revenue | $1,036.0 | $1,002.7 | | Operating Income | $70.8 | $109.6 | | Net Income | $47.4 | $68.6 | | Diluted EPS | $0.30 | $0.41 | - Revenue from the Applications & Commerce segment grew to **$338.0 million** from **$303.1 million**, while Core Platform revenue slightly decreased to **$698.0 million** from **$699.6 million**[21](index=21&type=chunk) - The company recorded a **$52.3 million** charge for 'Restructuring and other', which was not present in the prior-year period and significantly impacted operating income[21](index=21&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2023 comprehensive income significantly decreased to $9.8 million, primarily due to a net loss on unrealized swaps Comprehensive Income (in millions) | Component | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income | $47.4 | $68.6 | | Unrealized swap gain (loss), net | $(32.6) | $89.9 | | **Comprehensive Income** | **$10.0** | **$127.4** | [Consolidated Statements of Stockholders' Deficit](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Deficit) Total stockholders' deficit widened to $355.5 million, primarily due to share repurchases and negative derivative impacts offsetting net income - The company repurchased **1.55 million** shares of Class A common stock for **$113.9 million** during the quarter[27](index=27&type=chunk) - Equity-based compensation added **$74.5 million** to additional paid-in capital[27](index=27&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 operating cash flow increased to $270.3 million, while financing cash outflow significantly decreased due to lower share repurchases Cash Flow Summary (in millions) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $270.3 | $250.9 | | Net cash used in investing activities | $(22.8) | $(12.5) | | Net cash used in financing activities | $(124.2) | $(750.6) | | **Net increase (decrease) in cash** | **$118.4** | **$(513.0)** | - Payments for repurchases of Class A common stock were **$119.7 million** in Q1 2023, compared to **$750.1 million** in Q1 2022[29](index=29&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue breakdown, the February 2023 restructuring plan, long-term debt, and segment performance Revenue by Geography (Q1 2023 vs Q1 2022, in millions) | Geography | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | U.S. | $695.4 | $672.9 | | International | $340.6 | $329.8 | | **Total** | **$1,036.0** | **$1,002.7** | - In February 2023, the company initiated a restructuring plan, reducing its workforce by approximately **8% (550 employees)** and recording **$50.4 million** in pre-tax charges during the quarter[89](index=89&type=chunk) - As of March 31, 2023, the company had **$1.586 billion** remaining under its **$3.0 billion** share repurchase authorization[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, noting revenue growth to $1.04 billion driven by A&C, but profitability impacted by a $52.3 million restructuring charge [Consolidated First Quarter Financial Highlights](index=28&type=section&id=Consolidated%20First%20Quarter%20Financial%20Highlights) Q1 2023 highlights include total revenue of $1.036 billion and bookings of $1.199 billion, but operating and net income declined due to restructuring charges Q1 2023 Key Financial Metrics vs. Q1 2022 (in millions) | Metric | Q1 2023 | Change vs. Q1 2022 | | :--- | :--- | :--- | | Total Revenue | $1,036.0 | +3.3% | | Total Bookings | $1,199.2 | +3.7% | | Operating Income | $70.8 | -35.4% | | Net Income | $47.4 | -30.9% | | Normalized EBITDA | $249.7 | +10.5% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Total revenue grew 3.3% driven by Applications & Commerce, while Core Platform revenue slightly decreased, and operating expenses rose due to a restructuring charge - Applications & Commerce revenue growth was driven by a **10.1%** increase in productivity applications, **8.0%** in Websites + Marketing, and **104.2%** in commerce-related revenue[131](index=131&type=chunk) - Core Platform revenue was impacted by an **8.0%** decrease in aftermarket revenues and a **4.8%** decrease in hosting revenues, partially offset by a **4.9%** increase in domain registration revenue[132](index=132&type=chunk) - Marketing and advertising expenses decreased **20.6%** to **$92.4 million**, attributed to lower discretionary spending and headcount reductions from the restructuring plan[140](index=140&type=chunk) - Technology and development expenses increased **13.1%** to **$215.0 million** due to higher personnel costs and technology investments for growth and cloud migration[138](index=138&type=chunk) [Segment Results of Operations](index=34&type=section&id=Segment%20Results%20of%20Operations) A&C segment revenue grew 11.5% to $338.0 million, while Core Platform revenue slightly decreased, but its EBITDA increased due to lower marketing spend Segment Performance (Q1 2023 vs Q1 2022, in millions) | Segment | Metric | Q1 2023 | Q1 2022 | Change % | | :--- | :--- | :--- | :--- | :--- | | **Applications & Commerce** | Revenue | $338.0 | $303.1 | +11.5% | | | Segment EBITDA | $132.4 | $119.8 | +10.5% | | **Core Platform** | Revenue | $698.0 | $699.6 | -0.2% | | | Segment EBITDA | $189.0 | $178.4 | +5.9% | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) GoDaddy's liquidity is driven by operating cash flow of $270.3 million, with $113.9 million used for share repurchases and $1.586 billion remaining in authorization - Net cash from operating activities increased by **$19.4 million** year-over-year, primarily due to growth in bookings and lower discretionary marketing spend[168](index=168&type=chunk) - Net cash used in financing activities decreased by **$626.4 million**, mainly due to a **$630.4 million** decrease in share repurchases compared to Q1 2022[171](index=171&type=chunk) - The February 2023 restructuring plan resulted in **$6.4 million** in cash payments during the quarter, with an additional **$20.7 million** remaining to be paid[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) GoDaddy manages market risks from foreign currency and variable interest rates using derivatives, with currency movements negatively impacting Q1 2023 growth - The company's most significant foreign currency exposures are the British pound, the Euro, and the Canadian dollar[180](index=180&type=chunk) - In Q1 2023, constant currency total bookings growth would have been approximately **160 basis points** higher, and total revenue growth would have been **140 basis points** higher, than reported figures[180](index=180&type=chunk) - The company uses pay-fixed, receive-floating interest rate swaps to convert a significant portion of its variable-rate term loans to fixed rates, mitigating exposure to rising interest rates[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2023, the company's disclosure controls and procedures are effective at a reasonable assurance level[195](index=195&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[196](index=196&type=chunk) Part II [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to a shareholder derivative complaint alleging breach of fiduciary duty related to Tax Receivable Agreement settlements - A shareholder derivative complaint was filed against certain current and former officers and directors concerning the approval of the Tax Receivable Agreement (TRA) settlements[200](index=200&type=chunk) - The company filed a motion to dismiss the complaint, with a hearing scheduled for May 24, 2023[200](index=200&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant strategic, operational, financial, and legal risks, including intense competition, security breaches, substantial debt, and evolving regulations - The company faces significant competition from a wide range of providers, including domain registrars, hosting providers, e-commerce platforms (Wix, Shopify), and large tech companies (Google, Amazon, Microsoft)[219](index=219&type=chunk)[220](index=220&type=chunk) - The company has experienced and is frequently targeted by sophisticated network attacks and security breaches, including a multi-year campaign by a threat actor group, which could harm its reputation and result in liability[252](index=252&type=chunk)[256](index=256&type=chunk) - The February 2023 restructuring plan, which included an **8%** workforce reduction, may not achieve expected cost savings and could lead to operational disruptions or loss of institutional knowledge[222](index=222&type=chunk)[225](index=225&type=chunk) - The business is subject to complex and evolving regulations, including data privacy laws like GDPR and CCPA, and policies from ICANN, which could increase costs and restrict operations[321](index=321&type=chunk)[327](index=327&type=chunk)[329](index=329&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=99&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) GoDaddy repurchased 1.55 million shares for $113.9 million in Q1 2023, with $1.586 billion remaining under its repurchase authorization Share Repurchases in Q1 2023 | Period | Total Shares Purchased (in thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2023 | 407.8 | $74.22 | | Feb 2023 | 0.2 | $75.01 | | Mar 2023 | 1,144.6 | $73.09 | | **Total** | **1,552.6** | **N/A** | - As of March 31, 2023, the company had **$1,586.0 million** remaining under its share repurchase authorization[404](index=404&type=chunk) [Defaults Upon Senior Securities](index=99&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - The company reported no defaults upon senior securities[405](index=405&type=chunk) [Mine Safety Disclosures](index=99&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - This section is not applicable to the company[406](index=406&type=chunk) [Other Information](index=99&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - The company reported no other information for this item[407](index=407&type=chunk) [Exhibits](index=100&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[410](index=410&type=chunk)