GoDaddy(GDDY) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2023, was $4,573.2 million, representing a 7.5% increase on a reported and constant currency basis[22]. - International revenue reached$ 1,459.8 million, an increase of 5.7%, or approximately 5.8% on a constant currency basis[22]. - Total bookings amounted to $5,038.8 million, reflecting a 9.5% increase, or approximately 9.7% on a constant currency basis[22]. - Operating income increased to$ 893.5 million, a significant rise of 63.2%[22]. - Net income for the year was $936.9 million, a decrease of 31.9% compared to the previous year[22]. - Normalized EBITDA was reported at$ 1,395.9 million, an increase of 23.0%[22]. - Total revenue increased by 8% to $4,573.2 million in 2024, driven by a 16% increase in Applications and Commerce revenue[336]. - NEBITDA for 2024 was$ 1,395.9 million, up from $1,134.5 million in 2023, reflecting a significant increase in operational performance[333]. - Total bookings rose by 9.5% to$ 5,038.8 million in 2024, attributed to strong customer adoption of productivity solutions and pricing initiatives[338]. - Net income for the year ended December 31, 2024, was $936.9 million, a decrease of 31.9% from$ 1,375.6 million in 2023[333]. Customer Metrics - Total customers at period end were 20,511 thousand, a decrease from 21,026 thousand in the previous year[327]. - Average revenue per user (ARPU) increased to $220, up from$ 203 in the previous year[327]. - Domains under management totaled 81,013 thousand, down from 83,554 thousand in the previous year[327]. Cash Flow and Investments - Net cash provided by operating activities was $1,287.7 million, marking a 22.9% increase[22]. - Net cash provided by operating activities increased by$ 240.1 million from $1,047.6 million in 2023 to$ 1,287.7 million in 2024, driven by strong adoption of A&C products and lower restructuring payments[369]. - Net cash provided by investing activities improved by $123.9 million, from a net cash used of$ 102.4 million in 2023 to a net cash provided of $21.5 million in 2024[371]. - Net cash used in financing activities decreased by$ 584.3 million from $1,261.7 million in 2023 to$ 677.4 million in 2024, primarily due to a reduction in share repurchases[372]. - Cash and cash equivalents increased significantly to $1,089.0 million in 2024 from$ 458.8 million in 2023, marking a growth of 137.5%[433]. Expenses and Costs - Cost of revenue increased by 5% to $1,652.0 million in 2024, driven by growth in domain registration and productivity applications[340]. - Technology and development expenses decreased by 3% to$ 814.4 million in 2024, due to lower personnel costs and reduced legal and professional fees[342]. - Marketing and advertising expenses increased by 1% to $356.9 million in 2024, primarily due to increased discretionary advertising spend[344]. - General and administrative expenses rose by 5% to$ 394.2 million in 2024, mainly due to higher stock-based compensation and legal costs[348]. - Restructuring and other expenses decreased by 57% to $39.4 million in 2024, reflecting a significant reduction in severance and related costs[349]. - Interest expense decreased by 11.6% to$ 158.3 million in 2024, resulting from refinancing activities that reduced the interest margin[353]. Equity and Stockholder Information - The total stockholders' equity increased to $692.1 million in 2024 from$ 62.2 million in 2023, a significant rise of 1006.5%[433]. - The company repurchased shares for an aggregate price of $668.1 million in 2024, with$ 767.4 million remaining for future repurchases[378][379]. - The company repurchased 17,356 thousand shares of Class A common stock for $1,272.9 million during the year ended December 31, 2022[441]. - The balance of retained earnings as of December 31, 2023, was$ (2,320.7) million, reflecting a decrease from $(2,422.6) million in the previous year[441]. Revenue Recognition and Accounting Policies - Revenue is recorded on a gross basis when the company acts as a principal, and on a net basis when acting as an agent, with specific criteria determining the classification[384]. - The company completed a series of transactions on December 11, 2023, resulting in Desert Newco becoming a wholly-owned subsidiary, simplifying its capital structure[395]. Debt and Financing - Total borrowings under the 2031 Term Loans were$ 995.0 million as of December 31, 2024, with an amortization rate of 1.00% per annum[410]. - Total borrowings under the 2029 Term Loans were $1,458.9 million as of December 31, 2024, also with an amortization rate of 1.00% per annum[411]. - The company entered into interest rate swaps with a notional amount of$ 1,222.7 million as of December 31, 2024, converting variable-rate borrowings under the 2029 Term Loans to a fixed rate of 4.81%[413]. Impairment and Foreign Currency - The company recognized an immaterial non-cash impairment charge for certain indefinite-lived intangible assets during 2024, following a qualitative assessment indicating potential impairment[393]. - The company manages foreign currency risk through foreign exchange forward contracts and cross-currency swaps, with a notional amount of €1,146.9 million (approximately $1,187.4 million) as of December 31, 2024[406]. - The effect of a hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the company's cash and cash equivalents[403]. Comprehensive Income - The company reported a comprehensive income of$ 958.2 million for 2024, down from $1,307.6 million in 2023, a decrease of 26.7%[438].