GoDaddy Q4 Earnings Miss Estimates, Revenues Increase Y/Y, Shares Fall

Core Insights - GoDaddy reported fourth-quarter 2024 earnings of $1.42 per share, missing the Zacks Consensus Estimate by 2.74%, but showing a 31.5% increase year-over-year from$ 1.08 [1] - The company generated revenues of $1.2 billion, exceeding the Zacks Consensus Estimate by 1.38%, with an 8.4% year-over-year increase [2] - GoDaddy's strong performance was driven by sustained customer demand and strategic initiatives, including optimized pricing and bundling strategies [3] Financial Performance - Applications and Commerce (A&C) segment revenues reached$ 441.2 million, contributing 37% to total revenues, and increased 16.9% year-over-year [4] - The Core Platform revenues were $751.4 million, contributing 63% to total revenues, with a 3.9% year-over-year increase [4] - International revenues were$ 380.4 million, up 7.5% year-over-year [5] - Total bookings increased 8.8% year-over-year to $1.2 billion, while Average Revenues Per User (ARPU) rose 8.4% to$ 220 [5] Operating Results - Normalized EBITDA for the fourth quarter was $384.7 million, reflecting a 32.3% year-over-year increase, with an expanded EBITDA margin of 280 basis points [6] - Operating income increased 34.6% year-over-year to$ 255.6 million, with an operating margin expansion of 420 basis points to 21.4% [7] Balance Sheet & Cash Flow - As of December 31, 2024, GoDaddy had cash and cash equivalents of $1.1 billion, up from$ 767.1 million as of September 30, 2024 [8] - Total debt remained unchanged at $3.9 billion, while free cash flow for the fourth quarter was$ 342 million [8] Guidance - For Q1 2025, GoDaddy expects revenues between $1.175 billion and$ 1.195 billion, indicating a year-over-year growth of 7% at the mid-point [9] - The company anticipates A&C revenue growth in the mid-teens and Core revenue growth in the low-single digits for Q1 [9] - For the full year 2025, total revenues are expected to be between $4.86 billion and$ 4.94 billion, with a normalized EBITDA margin expansion of 100 basis points [10]