GoDaddy Reports First Quarter 2025 Financial Results

Core Insights - GoDaddy reported strong first quarter results for 2025, with total revenue of $1.194 billion, representing an 8% year-over-year increase [5][6] - The company completed its 2022 share repurchase program, retiring over 25% of its fully diluted shares, and announced a new $3 billion multi-year repurchase authorization through 2027 [2][10] - GoDaddy's business model is described as durable, with a focus on delivering measurable outcomes for customers, positioning the company for long-term success [2] Financial Performance - Total revenue for Q1 2025 was $1,194.3 million, up from $1,108.5 million in Q1 2024, marking a 7.7% increase [5][6] - Applications and Commerce revenue grew by 16.5% year-over-year to $446.4 million, while Core platform revenue increased by 3.1% to $747.9 million [5][6] - Operating income rose significantly by 40.6% to $247.3 million, with an operating income margin of 20.7% [5][6] Cash Flow and Share Repurchases - Net cash provided by operating activities was $404.7 million, a 36.2% increase from $297.2 million in the previous year [6][11] - Free cash flow reached $411.3 million, up 26% year-over-year [6][11] - GoDaddy repurchased 4.4 million shares in April 2025 at an average price of $176.02, fully utilizing the remaining $767.4 million under the previous repurchase authorization [9][10] Business Outlook - For Q2 2025, GoDaddy expects total revenue between $1.195 billion and $1.215 billion, indicating a year-over-year growth of approximately 7% [12] - The company reaffirms its full-year 2025 revenue guidance of $4.860 billion to $4.940 billion, also reflecting a 7% growth at the midpoint [12] - GoDaddy anticipates NEBITDA margin to be around 31% for Q2 2025, with an expected margin expansion of approximately 100 basis points for the full year [13] Balance Sheet - As of March 31, 2025, GoDaddy reported total cash and cash equivalents of $719.4 million and total debt of $3.8 billion, resulting in net debt of $3.1 billion [11][34] - The total assets of the company were $7.839 billion, down from $8.235 billion at the end of 2024 [34]