GoDaddy(US:GDDY)2025-10-30 22:09Financial Performance - Total revenue for Q3 2025 reached $1,265.3 million, a 10.3% increase from $1,147.6 million in Q3 2024[19] - Net income for Q3 2025 was $210.5 million, compared to $190.5 million in Q3 2024, reflecting a growth of 10.5%[19] - Operating income for the nine months ended September 30, 2025, was $810.3 million, up from $637.9 million in the same period of 2024, representing a 27% increase[19] - Comprehensive income for the nine months ended September 30, 2025, was $532.7 million, down from $717.1 million in the same period of 2024[21] - 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 approximately 14.7%[30] - Total revenue for the three months ended September 30, 2025, was $1,265.3 million, an increase of 10.3% compared to the same period in 2024[116] - Net income for the three months ended September 30, 2025, was $210.5 million, reflecting a 10.5% increase year-over-year[116] Cash and Liquidity - Cash and cash equivalents decreased to $923.7 million as of September 30, 2025, down from $1,089.0 million at the end of 2024[17] - The company reported a net cash used in financing activities of $1,379.4 million for the nine months ended September 30, 2025, compared to $675.9 million in 2024, reflecting an increase of about 104.5%[30] - Cash and cash equivalents at the end of the period on September 30, 2025, were $923.7 million, up from $767.1 million at the end of September 2024, marking an increase of approximately 20.4%[30] - Net cash provided by operating activities was $444.2 million for Q3 2025, reflecting a significant increase of 25.1%[116] - The company experienced a net cash provided by operating activities of $1,228.8 million for the nine months ended September 30, 2025, compared to $947.2 million in 2024, which is an increase of approximately 29.6%[30] Assets and Liabilities - Total assets decreased to $7,984.7 million as of September 30, 2025, from $8,235.4 million at the end of 2024, a decline of 3.0%[17] - Total current liabilities increased to $3,043.3 million as of September 30, 2025, compared to $2,698.4 million at the end of 2024, marking a 12.8% rise[17] - The accumulated deficit increased to $(2,823.9) million as of September 30, 2025, compared to $(2,052.3) million at the end of 2024[17] - Long-term debt amounted to $3,835.4 million as of September 30, 2025, slightly down from $3,853.9 million at the end of 2024[70] Revenue Segments - Revenue from the Applications and Commerce (A&C) segment was $481.0 million for the three months ended September 30, 2025, compared to $423.1 million in 2024, reflecting a growth of 13.7%[43] - Core segment revenue from domains reached $595.9 million for the three months ended September 30, 2025, up from $535.9 million in 2024, marking an increase of 11.2%[43] - Applications and commerce revenue grew by $57.9 million, or 13.7%, for Q3 2025, and $179.5 million, or 14.8%, for the nine months ended September 30, 2025[131] - Core platform revenue increased by $59.8 million, or 8.3%, for Q3 2025, driven by growth in aftermarket and domain registration revenues[133] Share Repurchase and Equity - The company repurchased Class A common stock totaling $1,383.0 million during the nine months ended September 30, 2025, compared to $668.1 million in the same period of 2024, which is an increase of about 106.5%[30] - The company authorized a total of $4,000.0 million for share repurchases, with $767.4 million utilized for accelerated share repurchase agreements during the three months ended March 31, 2025[59] - The company repurchased approximately 8.6 million shares of Class A common stock for a total purchase price of $1,392.6 million, with $2,374.7 million remaining available for repurchases as of September 30, 2025[61] Expenses - Cost of revenue for Q3 2025 was $468.3 million, representing 37.0% of total revenue, up from 35.5% in Q3 2024[130] - Technology and development expenses for the three months ended September 30, 2025 were $210.5 million, a slight increase of $5.4 million, or 2.6%[141] - Marketing and advertising expenses increased by $7.6 million, or 9.0%, for the three months ended September 30, 2025, totaling $92.0 million, due to increased discretionary advertising spend[144] - General and administrative expenses decreased by $3.5 million, or 3.7%, for the three months ended September 30, 2025, totaling $91.3 million[148] Tax and Restructuring - The effective tax rate for the nine months ended September 30, 2025, was 13.3%, influenced by a one-time benefit of $34.6 million related to an uncertain tax position[97] - The total amount of gross unrecognized tax benefits as of September 30, 2025, was $171.9 million, with $112.0 million potentially decreasing the effective tax rate if fully recognized[100] - The company recognized $7.9 million of pre-tax restructuring charges during the nine months ended September 30, 2025, compared to $17.0 million in the same period of 2024[94][95] Market and Competition - The company faces significant competition, and its ability to maintain or improve its competitive position is uncertain due to various market factors[202] - The company is exposed to risks associated with the use and development of AI technologies, which may lead to increased costs and regulatory scrutiny[209] - Legal and regulatory frameworks regarding AI are rapidly evolving, and compliance with these regulations may increase operating expenses[213] Operational Insights - The company has experienced growth due to sustained subscription growth and strong levels of subscription renewals, with lower costs associated with renewals compared to acquiring new customers[204] - The company launched GoDaddy Airo in 2023, enhancing its AI-powered experience with new features like Airo Plus Site Optimizer and Same-Day Payouts[207]