GoDaddy(US:GDDY) ZACKSยท2024-08-02 17:11Core Insights - GoDaddy (GDDY) reported second-quarter 2024 adjusted earnings of $1.10 per share, exceeding the Zacks Consensus Estimate by 2.8% and showing a year-over-year increase of 74.6% [1] - The company generated revenues of $1.12 billion, surpassing the Zacks Consensus Estimate by 0.97%, with a year-over-year growth of 7.3% on both reported and constant-currency bases [1] Revenue Breakdown - Applications & Commerce, which includes Websites + Marketing, Managed WordPress, productivity applications, and payments & commerce, generated $405.6 million, contributing 36.1% to total revenues, and increased by 15.3% year over year [2] - Core Platform, consisting of domains, aftermarket, hosting, and security, saw revenues rise to $718.9 million, contributing 63.9% to total revenues, with a year-over-year increase of 3.2% [2] - International revenues reached $357.1 million, up 4.7% year over year on both reported and constant-currency bases [2] - Total bookings amounted to $1.3 billion, reflecting an 11% year-over-year increase [2] - Average revenues per user were $210, up 5.5% year over year [2] - Total annualized recurring revenues (ARR) were $3.85 billion, up 6.5% year over year, with Applications & Commerce ARR at $1.5 billion (up 14%) and Core Platform ARR at $2.3 billion (up 2%) [2] Operating Results - Normalized EBITDA for the second quarter was $331.7 million, representing a 25.4% year-over-year increase [4] - Operating expenses totaled $468 million, down 2.3% year over year, with operating expenses as a percentage of revenues contracting by 410 basis points to 41.6% [4] - Operating income was $208.2 million, up 74.1% year over year, with an operating margin expansion of 710 basis points to 18.5% [4] Balance Sheet & Cash Flow - As of June 30, 2024, cash and cash equivalents were $444.9 million, down from $664 million as of March 31, 2024 [5] - Total debt remained unchanged at $3.9 billion [5] - Free cash flow was $323 million, slightly down from $327.4 million in the previous quarter [5] - The company repurchased 4.1 million shares of its common stock for $520.8 million during the second quarter [5] Guidance - For the third quarter of 2024, GoDaddy expects revenues between $1.13 billion and $1.15 billion, indicating a year-over-year growth of 7% at the mid-point [6] - The company anticipates Applications & Commerce revenue growth in the mid-teens and Core revenue growth in the low single digits for the third quarter [7] - The normalized EBITDA margin for the third quarter is expected to be 29% [7] - For the full year 2024, GoDaddy projects total revenues of $4.525 billion to $4.565 billion, indicating a year-over-year growth of 7% at the mid-point, with a normalized EBITDA margin of 29% [7] - The company anticipates free cash flow of at least $1.3 billion for 2024 [7] Stock Performance - GDDY currently holds a Zacks Rank 3 (Hold) and has increased by 33.2% year-to-date, outperforming the Zacks Computer & Technology sector's growth of 17.2% [7]