GoDaddy(US:GDDY)2025-10-30 20:11Financial Performance - Total revenue for Q3 2025 was $1.3 billion, representing a 10% year-over-year increase[5] - Applications and Commerce (A&C) revenue grew 14% year-over-year to $481.0 million[5] - Operating income increased by 17% year-over-year to $296.7 million, with a margin of 23%[5] - Net cash provided by operating activities was $444.2 million, up 25% year-over-year[5] - Free cash flow reached $440.5 million, reflecting a 21% year-over-year growth[5] - Total revenue for Q3 2025 was $1,265.3 million, a 10.3% increase from $1,147.6 million in Q3 2024[31] - Net income for the nine months ended September 30, 2025, was $629.9 million, compared to $738.3 million for the same period in 2024, reflecting a decrease of 14.7%[35] - Net income for Q3 2025 was $210.5 million, compared to $190.5 million in Q3 2024, representing a growth of 7.5%[36] - NEBITDA for Q3 2025 reached $408.6 million, up from $366.5 million in Q3 2024, indicating an increase of 11.5%[36] - Free cash flow for the nine months ended September 30, 2025, was $1,243.3 million, compared to $1,013.5 million for the same period in 2024, reflecting a growth of 22.7%[39] - Total debt as of September 30, 2025, was $3,835.4 million, with net debt standing at $2,911.7 million after accounting for cash and cash equivalents[38] - The company reported a NEBITDA margin of 32.3% for Q3 2025, slightly up from 31.9% in Q3 2024[36] - The net income margin for Q3 2025 was 16.6%, consistent with the margin reported in Q3 2024[36] Future Expectations - GoDaddy raised its full-year revenue expectations to a range of $4.930 billion to $4.950 billion, indicating an 8% growth at the midpoint[10] - For Q4 2025, total revenue is expected to be between $1.255 billion and $1.275 billion, representing a 6% year-over-year growth at the midpoint[11] - GoDaddy expects NEBITDA margin to be approximately 33% for Q4 2025 and around 32% for the full year[12] Customer Metrics - Annualized recurring revenue (ARR) is a key operating metric that helps illustrate the scale of subscription-based services, exclusive of non-recurring revenue[26] - Average revenue per user (ARPU) is calculated as total revenue divided by the average number of customers, providing insight into the company's ability to sell additional products[27] - Total customers increased, contributing to the revenue base and overall business scale[28] Shareholder Activities - GoDaddy repurchased 9.0 million shares for an aggregate purchase price of $1.4 billion year-to-date through October 28, 2025[8] - Total shares outstanding decreased to 137,391 thousand as of September 30, 2025, down from 143,964 thousand in 2024[41] Operational Efficiency - The NEBITDA margin, a supplemental measure of operating performance, is calculated as NEBITDA to revenue ratio, providing insights into operational efficiency[23] - The company launched five new Airo agents to enhance customer service capabilities[5] - The company reported a restructuring-related expense of $5.5 million in Q3 2025, compared to $0.4 million in Q3 2024, indicating increased restructuring activities[31] - Cash paid for restructuring and other charges totaled $21.3 million for the nine months ended September 30, 2025, down from $62.4 million in 2024[40] - The company incurred $241.0 million in equity-based compensation expense for the nine months ended September 30, 2025, compared to $221.6 million in the same period of 2024[36] Product and Service Development - GoDaddy's AI-powered experience, GoDaddy Airo, aims to enhance small business growth by facilitating online presence and sales[29] - Constant currency revenue for Q3 2025 was $1,265.5 million, with bookings at $1,353.3 million after adjustments[42] - Net debt as of September 30, 2025, was defined as total debt less cash and cash equivalents, which is crucial for assessing financial flexibility[25]