GoDaddy(GDDY) - 2025 Q4 - Annual Report

Financial Performance - Total revenue reached $4,951.1 million, an increase of 8.3%, or approximately 8.4% on a constant currency basis[339] - International revenue was $1,626.8 million, reflecting an increase of 11.4%, or approximately 11.8% on a constant currency basis[339] - Operating income increased to $1,127.3 million, marking a growth of 26.2%[339] - Net income for the year was $875.0 million, a decrease of 6.6%[339] - Normalized EBITDA was $1,585.9 million, an increase of 13.6%[339] - Total bookings amounted to $5,400.0 million, an increase of 7.2%[339] - Annualized recurring revenue (ARR) reached $4,336.2 million, up from $4,042.6 million[342] - Average revenue per user (ARPU) increased to $242, compared to $220 in the previous year[342] - Total revenue for the year ended December 31, 2025, was $4,951.1 million, representing an increase of $377.9 million or 8.3% compared to 2024[352] Revenue Segments - Applications and commerce revenue increased by $236.0 million, or 14.3%, for the year ended December 31, 2025, driven by continued customer adoption of subscription-based products[352] - Core platform revenue grew by $141.9 million, or 4.9%, for the year ended December 31, 2025, supported by growth in domain registration and aftermarket revenue[353] - Revenue for the Applications and Commerce (A&C) segment increased by $236.0 million, or 14.3%, reaching $1,889.0 million for the year ended December 31, 2025[374] - Core segment revenue increased by $141.9 million, or 4.9%, amounting to $3,062.1 million for the year ended December 31, 2025[375] Expenses - Cost of revenue for the year ended December 31, 2025, was $1,801.5 million, reflecting a $149.5 million or 9.0% increase from 2024[357] - Technology and development expenses for the year ended December 31, 2025, were $841.5 million, an increase of $27.1 million or 3.3% compared to 2024[359] - Marketing and advertising expenses increased by $18.2 million, or 5.1%, for the year ended December 31, 2025, due to increased discretionary advertising spend[361] - General and administrative expenses for the year ended December 31, 2025, were $388.9 million, showing a slight decrease of $5.3 million or 1.3% compared to 2024[366] - Restructuring and other expenses decreased by $28.3 million, or 71.8%, for the year ended December 31, 2025, primarily due to reduced severance and employee benefits[367] EBITDA and Margins - NEBITDA for the year ended December 31, 2025, was $1,585.9 million, an increase of $190.0 million or 13.6% compared to 2024[348] - A&C Segment EBITDA rose by $117.6 million, or 15.9%, totaling $856.9 million, with a margin improvement of 70 basis points to 45.4%[374] - Core Segment EBITDA grew by $78.6 million, or 8.4%, reaching $1,010.3 million, with a margin increase of 110 basis points to 33.0%[375] Cash Flow and Financing - Net cash provided by operating activities increased by $311.7 million, driven by growth in total bookings and lower restructuring-related payments[382] - Net cash used in financing activities rose by $909.7 million, primarily due to a $925.4 million increase in share repurchases[386] - The company executed accelerated share repurchase agreements totaling $767.4 million, fully utilizing the remaining authorization under its stock repurchase program[392] - As of December 31, 2025, the company had $998.6 million available for borrowing under its revolving credit facility[390] - The company expects its existing cash and cash equivalents will be sufficient to meet anticipated operating cash needs for at least the next 12 months[378] Tax and Impairment - The benefit (provision) for income taxes showed a significant change of $316.5 million, or 184.5%, primarily due to the completion of the DNC Restructure, resulting in a one-time non-cash income tax benefit of $267.4 million in Q1 2024[372] - The company assesses indefinite-lived intangible assets for impairment at least annually during the fourth quarter[400] - If qualitative analysis indicates potential impairment, a quantitative impairment test is performed[401] - Deferred tax assets (DTAs) are recognized only if it is more-likely-than-not they will be realized[404] - The company maintains a valuation allowance against DTAs that are unlikely to be realized due to limitations[405] - Tax benefits from uncertain tax positions are recognized only if it is more-likely-than-not the position will be sustained[406]