GoDaddy(GDDY) - 2024 Q2 - Quarterly Results

Q2 2024 Performance Highlights GoDaddy exceeded Q2 2024 revenue and margin guidance, driven by strong Applications and Commerce growth and AI initiatives Q2 2024 Key Financial Metrics | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $1.1 billion | +7% | | Net Income | $146.3 million | +76% | | Normalized EBITDA (NEBITDA) | $331.7 million | +25% | | Free Cash Flow | $323.4 million | +35% | | Total Bookings | $1.3 billion | +11% | Q2 2024 Revenue by Segment | Segment | Revenue | YoY Change | | :--- | :--- | :--- | | Applications and Commerce (A&C) | $405.6 million | +15% | | Core Platform (Core) | $718.9 million | +3% | - The company is expanding its AI-powered experience, GoDaddy Airo™, which is now available with all new and existing domain purchases in English-speaking markets, with plans to expand to over 90 additional countries[3][5] - Launched the GoDaddy Digital Marketing suite, a new platform offering personalized marketing tools and content to help customers build their brand and generate leads, even without a website[5] Capital Management & Balance Sheet GoDaddy continued capital return via share repurchases and refinanced debt, extending maturity and reducing interest expense - Year-to-date through July 30, 2024, GoDaddy repurchased 4.1 million shares for $520.8 million, reducing fully diluted shares by approximately 23% since the program's inception in January 2022[7] - In May 2024, the company amended its credit agreement, refinancing debt to extend maturity to 2031 and securing a 25 basis point interest rate reduction This is expected to lower annual cash interest expense by about $25.0 million[9] Balance Sheet Summary (as of June 30, 2024) | Item | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $444.9 | | Total debt | $3,900.0 | | Net debt | $3,400.0 | Business Outlook GoDaddy raised full-year 2024 guidance for revenue, NEBITDA, and free cash flow, signaling strong future performance Q3 2024 Guidance | Metric | Guidance Range/Target | | :--- | :--- | | Total Revenue | $1.13B - $1.15B (+7% YoY at midpoint) | | NEBITDA Margin | ~29% | Full Year 2024 Raised Guidance | Metric | Guidance Range/Target | | :--- | :--- | | Total Revenue | $4.525B - $4.565B (+7% YoY at midpoint) | | NEBITDA Margin | ~29% | | Unlevered Free Cash Flow | At least $1.45B (+16% YoY) | | Free Cash Flow | At least $1.3B (+20% YoY) | Consolidated Financial Statements (Unaudited) GoDaddy's unaudited financial statements detail strong operational performance, a stable balance sheet, and robust cash generation Consolidated Statements of Operations Q2 2024 saw significant increases in total revenue, operating income, and net income, driven by strong top-line growth and expense management Q2 2024 vs Q2 2023 Statement of Operations (in millions) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total Revenue | $1,124.5 | $1,048.1 | | Operating Income | $208.2 | $119.6 | | Net Income | $146.3 | $83.1 | | Diluted EPS | $1.01 | $0.54 | Consolidated Balance Sheets As of June 30, 2024, GoDaddy's balance sheet shows a slight increase in total assets and stockholders' equity, maintaining a stable financial position Balance Sheet Comparison (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $7,721.9 | $7,564.9 | | Cash and cash equivalents | $444.9 | $458.8 | | Total Liabilities | $7,564.9 | $7,502.7 | | Total stockholders' equity | $157.0 | $62.2 | Consolidated Statements of Cash Flows Cash flow statements for the six months ended June 30, 2024, show strong operating cash generation, primarily used for significant share repurchases Six Months Ended June 30 Cash Flow (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $592.0 | $468.3 | | Net cash provided by (used in) investing activities | $40.9 | $(52.0) | | Net cash used in financing activities | $(646.2) | $(608.3) | | Net decrease in cash | $(13.9) | $(191.4) | Reconciliation of Non-GAAP Financial Measures This section reconciles GAAP financial measures to non-GAAP metrics like NEBITDA, Free Cash Flow, and Unlevered Free Cash Flow, providing adjusted performance views Q2 2024 Net Income to NEBITDA Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net income | $146.3 | | Adjustments (Depreciation, Equity Comp, Interest, etc.) | +$185.4 | | NEBITDA | $331.7 | Q2 2024 Cash Flow Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $294.8 | | Adjustments (Capex, Restructuring, etc.) | +$28.6 | | Free cash flow | $323.4 | | Cash paid for interest on long-term debt | +$45.3 | | Unlevered free cash flow | $368.7 | Supplementary Information This section defines key non-GAAP and operating metrics, clarifies share outstanding changes due to buybacks, and provides constant currency reconciliations for performance analysis Definitions of Non-GAAP and Operating Metrics This section defines GoDaddy's key non-GAAP and operating metrics, including Total Bookings, Constant Currency, NEBITDA, Free Cash Flow, Net Debt, ARR, and ARPU - Key operating metrics used by management include Total Bookings, Constant Currency, NEBITDA, Free Cash Flow, Net Debt, Annualized Recurring Revenue (ARR), Average Revenue Per User (ARPU), and Total Customers[20][21][22] Shares Outstanding Total common stock outstanding decreased to 141.5 million shares as of June 30, 2024, reflecting the impact of the company's share repurchase program Total Common Stock Outstanding (in thousands) | Date | Shares Outstanding | | :--- | :--- | | June 30, 2024 | 141,455 | | June 30, 2023 | 148,600 |