Group 1 - GoDaddy Inc. reported weaker-than-expected earnings for Q4, with earnings of $1.36 per share, missing the analyst consensus estimate of $1.43 per share [1] - The company achieved quarterly sales of $1.192 billion, surpassing the analyst consensus estimate of $1.179 billion [1] - GoDaddy's CEO highlighted strong operational execution and financial performance in 2024, with plans to innovate around GoDaddy Airo and enhance their integrated technology platform for 2025 [2] Group 2 - For Q1, GoDaddy anticipates revenue between $1.175 billion and $1.195 billion, compared to estimates of $1.186 billion [2] - Following the earnings announcement, GoDaddy shares increased by 2.4%, closing at $212.54 [3] - Analysts adjusted their price targets for GoDaddy, with Piper Sandler raising it from $176 to $177 and Morgan Stanley from $227 to $228, while maintaining their ratings [4]

Financial Data and Key Metrics Changes - GoDaddy reported total revenue growth of 8% for the full year 2024, reaching $4.6 billion, with normalized EBITDA margin expanding to 31%, an increase of nearly 400 basis points year-over-year [26][28][19] - Free cash flow grew 25% to $1.4 billion, exceeding guidance, while unlevered free cash flow for the year increased 20% to $1.5 billion [29][19] - In Q4 2024, total revenue was $1.2 billion, exceeding guidance, with normalized EBITDA margin expanding to 32% [21][22] Business Line Data and Key Metrics Changes - Applications and commerce (A&C) segment revenue grew 17% to $441 million, driven by strong performance across products including website plus marketing and managed WordPress [22][23] - Core platform segment revenue grew 4% to $751 million, with bookings also increasing by 4% [23][24] - A&C bookings grew 17%, while core platform bookings rose 4% [22][23] Market Data and Key Metrics Changes - Annualized gross payment volume (GPV) increased 55% to $2.6 billion, indicating strong growth in the commerce initiative [10] - The company expects revenue growth in the US to outpace international growth by approximately 200 basis points due to currency headwinds [36] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [3] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations within the hosting business [7][48] - The Aero initiative is seen as a key driver of future growth, with plans to enhance customer experience and engagement through AI and new product offerings [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by high-value customer acquisition and improved retention rates [32][56] - The company anticipates modest financial benefits from the Aero experience in the near term, with a focus on long-term growth [38] - Management highlighted the importance of maintaining operational discipline while pursuing innovation and customer engagement [40][41] Other Important Information - GoDaddy exited 2024 with $1.1 billion in cash and total liquidity of $2.1 billion, with net debt at $2.8 billion [33] - The company plans to maintain a disciplined approach to capital allocation, including covering dilution from share-based compensation through buybacks [44][45] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for 2025? - Management indicated that the focus will be on presence products and specific customer cohorts, emphasizing a customer cohort-based approach rather than a product-centric one [48][52] Question: What are the drivers for returning to customer growth in 2025? - Management highlighted the focus on high-quality customers and the positive signs from the Aero initiative, which is expected to improve customer engagement and retention [56][58] Question: Are there any one-off headwinds impacting revenue growth? - Management acknowledged that while bookings momentum is strong, there are transactional aspects that could impact revenue recognition, particularly in the aftermarket business [66][134] Question: What is the expected impact of the Aero initiative on monetization? - Management noted that Aero is entering the monetization phase earlier than planned, with positive metrics on customer engagement and retention [78][81] Question: How does the company view the growth potential of GPV? - Management expressed optimism about GPV growth, indicating that there is still significant room for penetration within the customer base [85][86] Question: What are the expectations for EBITDA margin in 2025? - Management projected a normalized EBITDA margin expansion of approximately 100 basis points, with continued focus on A&C growth contributing to this [41][157]

Financial Performance - GoDaddy's total bookings grew by 9% year-over-year, reaching $5 billion[9] - The company achieved a NEBITDA margin of 31%, with an expansion of approximately 400 bps[9] - Free cash flow increased by 25% year-over-year[9] - Q4 2024 revenue grew by 8% to $1.2 billion, with Applications & Commerce contributing $0.4 billion (17% growth) and Core Platform contributing $0.8 billion (4% growth)[33] - For the full year 2024, revenue grew by 8% to $4.6 billion, with Applications & Commerce contributing $1.7 billion (16% growth) and Core Platform contributing $2.9 billion (3% growth)[44] Strategic Initiatives - Pricing & bundling initiatives bolstered A&C bookings growth by 21% in 2024[19] - GoDaddy Airo contributed to over 50% of Q4 Websites + Marketing paid subscriptions[21] - Commerce initiatives drove a 55% growth in GPV to $2.6 billion in 2024[19] Capital Allocation - GoDaddy completed $3.2 billion in share buybacks under current authorizations, with $0.8 billion remaining[62] - The company repurchased 39.4 million shares, reducing gross shares outstanding by 23% since January 2022[62] Outlook - The company projects 2025 revenue between $4.860 billion and $4.940 billion[66] - The company expects a NEBITDA margin of approximately 30% for Q1 2025 and an expansion of +100 bps for the full year[66] - GoDaddy anticipates generating over $1.5 billion in free cash flow in 2025[66]

Financial Data and Key Metrics Changes - GoDaddy achieved annual bookings growth of over 9% and expanded normalized EBITDA margin to 31% for the full year [4][19] - Free cash flow increased by 25% for the year, reaching $1.4 billion [4][29] - Total revenue for Q4 grew to $1.2 billion, exceeding guidance, with annual revenue of $4.6 billion representing 8% growth [22][26] - Normalized EBITDA grew 23% to $1.4 billion, with a margin expansion of nearly 400 basis points [27][28] Business Line Data and Key Metrics Changes - Applications and commerce segment revenue grew 17% to $441 million, driven by strong performance in website plus marketing and managed WordPress [22][23] - Core platform segment revenue grew 4% to $751 million, with bookings also increasing by 4% [23][24] - The annualized gross payment volume for commerce grew 55% to $2.6 billion [10] Market Data and Key Metrics Changes - The company expects revenue growth in the US to outpace international growth by approximately 200 basis points, primarily due to currency headwinds [36] - The percentage of customers purchasing two or more products has trended upwards, with over 50% of total customers subscribing to multiple products [32] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [3][20] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations [7][48] - GoDaddy Aero is viewed as a key driver of future growth and customer lifetime value, with plans for further enhancements and monetization [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by high-value customer acquisition and improved engagement metrics [32][56] - The company anticipates modest financial benefits from Aero in the near term, with a focus on long-term growth [38] - Management highlighted the importance of maintaining operational discipline while pursuing innovation and customer engagement [40][41] Other Important Information - GoDaddy exited the year with $1.1 billion in cash and total liquidity of $2.1 billion, with net debt at $2.8 billion [33] - The company plans to maintain a disciplined approach to capital allocation, including covering dilution from share-based compensation through buybacks [44][45] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for presence products? - Management discussed the focus on customer cohorts rather than a product-centric approach, aiming to enhance value-based offers [52][53] Question: What are the drivers for returning to customer growth in 2025? - Management emphasized the importance of attracting high-value customers and noted positive signs in customer engagement and attachment rates [56][58] Question: Are there any one-off headwinds impacting revenue growth? - Management acknowledged small impacts from foreign exchange and noted that bookings are expected to outpace revenue growth [66][68] Question: How is the monetization phase for Aero progressing? - Management indicated that Aero is entering the monetization phase earlier than planned, with positive metrics in customer engagement and retention [78][80] Question: What is the outlook for GPV growth? - Management expressed optimism about continued GPV growth, highlighting that a small percentage of the customer base has been penetrated so far [85][86] Question: Can you provide insights on the renewal rate improvements for Aero cohorts? - Management noted that Aero customers are experiencing higher engagement and retention rates due to the value-added services provided [112][113]

Group 1: Earnings Performance - GoDaddy reported quarterly earnings of $1.42 per share, missing the Zacks Consensus Estimate of $1.46 per share, but showing an increase from $1.08 per share a year ago, representing an earnings surprise of -2.74% [1] - The company posted revenues of $1.19 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.38%, compared to year-ago revenues of $1.1 billion [2] - Over the last four quarters, GoDaddy has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - GoDaddy shares have increased approximately 5.2% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $1.51 on $1.19 billion in revenues, and for the current fiscal year, it is $6.69 on $4.89 billion in revenues [7] Group 3: Industry Context - The Internet - Delivery Services industry, to which GoDaddy belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact GoDaddy's stock performance [5] - The Zacks Rank for GoDaddy is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - GoDaddy achieved a top line bookings growth of over 9% and expanded normalized EBITDA margin to 31% for the full year [6][14] - The company reported a 25% increase in free cash flow for the year, reaching $1,400,000,000 [14][19] - Annual revenue grew 8% to $4,600,000,000, with normalized EBITDA increasing 23% to $1,400,000,000, representing a 31% margin [18][19] Business Line Data and Key Metrics Changes - Applications and Commerce (A&C) segment revenue grew 17% to $1,700,000,000, with bookings also increasing by 17% [16][18] - Core platform segment revenue grew 4% to $2,900,000,000, with bookings rising 4% [16][18] - A&C segment EBITDA margin improved to 47%, while core platform segment EBITDA margin expanded to 34% [16] Market Data and Key Metrics Changes - Annualized gross payment volume (GPV) increased 55% to $2,600,000,000, indicating strong growth in the commerce initiative [9][18] - The company reported a customer base of 20,500,000, reflecting a strategic focus on high-value customers [19][20] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [5][14] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations within the hosting business [7][10] - GoDaddy Aero is viewed as a key driver of future growth, with plans to expand its capabilities and customer engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by enhanced value propositions and strategic focus on high lifetime value customers [19][24] - The company anticipates total revenue growth of 7% for 2025, with A&C revenue growth in the mid-teens and core platform growth in low single digits [23][24] - Management highlighted the importance of maintaining operational discipline and pursuing opportunities for further leverage through technology and AI [25][26] Other Important Information - GoDaddy exited the year with $1,100,000,000 in cash and total liquidity of $2,100,000,000, with net debt at $2,800,000,000 [22] - The company plans to maintain a disciplined capital allocation approach, focusing on shareholder returns and evaluating all opportunities [26] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for 2025? - Management indicated excitement about the pricing and bundling program, which exceeded expectations in 2024, and plans to focus on presence products and customer cohorts in 2025 [33][35] Question: What are the drivers for returning to customer growth in 2025? - Management emphasized the focus on high-quality customers and the positive signs in the sales funnel, indicating a strategy that prioritizes high-value customers over sheer volume [39][40] Question: Any headwinds affecting revenue growth expectations for 2025? - Management acknowledged potential impacts from foreign exchange and the transactional business, which could affect revenue recognition timing [46][91] Question: What is the expected contribution from the ARROW initiative? - Management expects modest impacts from the ARROW launch in 2025, with a focus on attracting higher-value customers and enhancing their initial experience with GoDaddy [48][50] Question: Can you provide insights on the renewal rates for the Aero cohorts? - Management noted improvements in renewal rates for customers engaged with Aero, attributing this to the added value and multiple product interactions available through the Aero experience [77][78]

Financial Performance - Total revenue for 2024 was $4.6 billion, an increase of 8% year-over-year[6] - Net income for 2024 was $936.9 million, down 32% year-over-year, with a margin of 20%[6] - Normalized EBITDA (NEBITDA) for 2024 was $1.4 billion, up 23% year-over-year, representing a 31% margin[6] - Free cash flow for 2024 was $1.4 billion, an increase of 25% year-over-year[6] - Total revenue for Q4 2024 was $1,192.6 million, a 8.4% increase from $1,100.3 million in Q4 2023[36] - Net income attributable to GoDaddy Inc. for Q4 2024 was $198.6 million, compared to $1,113.9 million in Q4 2023, reflecting a significant decrease[36] - Net income for the year ended December 31, 2024, was $936.9 million, a decrease of 31.9% compared to $1,375.6 million in 2023[40] - Net cash provided by operating activities increased to $1,287.7 million in 2024 from $1,047.6 million in 2023, representing a growth of 22.9%[40] - Free cash flow for the year ended December 31, 2024, was $1,355.5 million, up from $1,084.4 million in 2023, indicating a year-over-year increase of 25%[44] - Total debt as of December 31, 2024, was $3,853.9 million, with net debt standing at $2,764.9 million after accounting for cash and cash equivalents[43] Future Projections - For Q1 2025, total revenue is expected to be between $1.175 billion and $1.195 billion, representing year-over-year growth of 7% at the midpoint[11] - For the full year 2025, total revenue is targeted in the range of $4.860 billion to $4.940 billion, also representing year-over-year growth of 7% at the midpoint[11] Operational Metrics - Annualized recurring revenue (ARR) is a key metric, highlighting the scale of subscription-based services, which is crucial for future revenue growth[31] - Total bookings, an important operating metric, provides insight into customer contract values, excluding refunds, indicating marketing effectiveness[22] - The company reported a NEBITDA margin, which is a supplemental measure of operating performance, reflecting the ratio of NEBITDA to revenue[25] - Total customers increased, which is a contributing factor to revenue growth potential, although specific numbers were not disclosed[33] Cash and Liquidity - GoDaddy's cash and cash equivalents increased to $1,089.0 million in Q4 2024 from $458.8 million in Q4 2023, indicating improved liquidity[38] - Cash and cash equivalents at the end of the period increased to $1,089.0 million from $458.8 million in 2023, marking a substantial rise[40] Investment and Innovation - GoDaddy's investment in technology and development was $200.5 million for Q4 2024, slightly down from $203.8 million in Q4 2023, indicating a focus on innovation[36] - The company is actively pursuing market expansion and new product development, particularly through its AI-powered services to enhance customer experience[34] - The company launched the Airo Plus tier, enhancing its AI-powered GoDaddy Airo experience[9] Debt and Financing - In December 2024, GoDaddy refinanced $1.5 billion of term loans, securing a 0.25% interest rate margin reduction[10] - The company issued $4,214.8 million in term loans during the year, significantly higher than $1,759.9 million in 2023[40] Profitability and Efficiency - NEBITDA margin for the year ended December 31, 2024, was 30.5%, up from 26.7% in 2023, indicating improved operational efficiency[41]

Company continues its track record of profitable growth and strong cash generationTEMPE, Ariz., Feb. 13, 2025 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) today reported financial results for the fourth quarter and full year that ended December 31, 2024."GoDaddy demonstrated strong operational execution and financial performance in 2024, making significant progress across our key strategic initiatives," said GoDaddy CEO Aman Bhutani. "Looking ahead to 2025, we are excited to further innovate around GoDaddy Air ...

Core Insights - GoDaddy (GDDY) is positioned to potentially continue its earnings-beat streak in the upcoming report, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 4.20% [1][3] Earnings Performance - In the last reported quarter, GoDaddy achieved earnings of $1.32 per share, surpassing the Zacks Consensus Estimate of $1.25 per share, resulting in a surprise of 5.60% [2] - In the previous quarter, the company was expected to report earnings of $1.07 per share but delivered $1.10 per share, yielding a surprise of 2.80% [2] Earnings Estimates - Recent estimates for GoDaddy have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6] - The current Earnings ESP for GoDaddy stands at +7.44%, reflecting increased analyst optimism regarding the company's earnings prospects [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, suggesting a high probability of beating consensus estimates [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [5]

Core Insights - GoDaddy (NYSE: GDDY) is set to announce its earnings on February 13th, with an expected EPS of $1.44 and revenue of $1.18 billion, indicating a year-over-year revenue growth of 7.16% and a quarter-over-quarter EPS increase of 9% [1] Financial Performance - The anticipated earnings per share (EPS) is $1.44, reflecting a positive outlook for the company's profitability [1] - Revenue is projected to reach $1.18 billion, showcasing a significant growth trajectory compared to the previous year [1] - The year-over-year revenue growth is estimated at 7.16%, while the EPS is expected to increase by 9% quarter-over-quarter [1] Analyst Background - The analysis is provided by Harrison, a financial analyst with over a decade of market experience and a focus on private equity, real estate, and economic research [1] - Harrison has been contributing to Seeking Alpha since 2018 and possesses an academic background in financial econometrics, economic forecasting, and global monetary economics [1]