Financial Data and Key Metrics Changes - In Q1 2025, GoDaddy achieved 8% bookings growth and expanded normalized EBITDA margin to 31%, resulting in a 26% increase in free cash flow [4][13][15] - Total revenue grew 8% year-over-year to $1.2 billion, with annual recurring revenue increasing by 7% to $4.1 billion [13][14] - Free cash flow reached $411 million, reflecting a 26% growth [16][18] Business Line Data and Key Metrics Changes - The ANC segment saw a revenue growth of 17% to $446 million, with bookings increasing by 14% [13][14] - The core platform segment delivered a revenue growth of 3% to $748 million, with bookings growing by 5% [14][15] - Average order size increased, and ARPU grew by 9% to $225 on a trailing twelve-month basis [16][114] Market Data and Key Metrics Changes - International revenue grew by 10%, exceeding prior expectations due to strong aftermarket sales [13][14] - Customer retention rates improved, with retention above 85% for customers on the GoDaddy platform [16] Company Strategy and Development Direction - GoDaddy's strategy focuses on attracting high-intent customers, creating customer value, and transforming that value into long-term shareholder value [5][10] - The company is committed to a disciplined capital allocation framework, including a new share repurchase authorization of up to $3 billion through 2027 [18][20] - The company aims to achieve $4.5 billion in cumulative free cash flow generation by 2026, with annual revenue growth of 6% to 8% [21] Management's Comments on Operating Environment and Future Outlook - Management noted some pressure in small business sentiment but emphasized the resilience of their customer base [27][30] - The company reaffirmed its full-year 2025 guidance, expecting total revenue growth of 7% at the midpoint [19][20] - Management expressed confidence in the durability of their business model and the importance of their products to micro businesses [80][82] Other Important Information - GoDaddy's Aero initiative is showing positive results, with improvements in customer behavior and engagement [9][10] - The company is leveraging generative AI to enhance customer experiences and automate tasks [10][58] Q&A Session Summary Question: Insights on macroeconomic changes and small business sentiment - Management observed some pressure in customer sentiment but noted that customers remain resilient and optimistic about their own business performance [27][30] Question: Early signs from the Arrow Plus SKU - Management indicated that Arrow continues to perform well, with improvements in order size and customer engagement [33][34] Question: Customer count expectations and impact of marketing campaigns - Management confirmed stability in customer count and noted that the Super Bowl ad campaign has increased awareness of GoDaddy's offerings [45][47] Question: Drivers of gross margin expansion - Management attributed gross margin expansion to favorable product mix and operational efficiencies [66][68] Question: Differentiation between Arrow and Arrow Plus - Arrow provides basic functionality for free, while Arrow Plus offers a higher-end SKU for engaged customers [72][73] Question: Update on Gabby and AI initiatives - Gabby is evolving to take on more tasks, with potential for future external use [115] Question: Addressable opportunity in the agency space - Management acknowledged that the agency space is still early for GoDaddy but sees it as a long-term opportunity [126][127]

Financial Performance - Q1 2025 revenue reached $1.2 billion, reflecting an 8% growth [30, 48] - Applications & Commerce revenue grew by 17% to $446 million [30, 48] - Core Platform revenue increased by 3% to $748 million [30, 48] - Q1 NEBITDA was $364 million, with a margin expansion of over 200 bps to 31% [32, 36] - Q1 free cash flow grew by 26% to $411 million [36] Financial Outlook - The company anticipates Q2 2025 revenue between $1.195 billion and $1.215 billion [47] - The company projects full-year 2025 revenue between $4.860 billion and $4.940 billion [47] - The company expects NEBITDA margin to be approximately 31% for Q2 2025 and anticipates over 100 bps margin expansion for the full year [47] - The company forecasts free cash flow to exceed $1.5 billion for the full year 2025 [47] Capital Allocation - The company completed a $4 billion share repurchase authorization, buying back 43.7 million shares at an average price of $91 per share [43, 44] - The company reduced gross shares outstanding by over 25% [43, 45]

news release GoDaddy Reports First Quarter 2025 Financial Results "GoDaddy remains well-positioned for long-term success by driving tangible, measurable outcomes that help our customers grow and thrive in any macroeconomic landscape," said GoDaddy CEO Aman Bhutani. "GoDaddy's durable model is backed by strong fundamentals, and its resilient strategy continues to deliver for shareholders." First Quarter 2025 Business and Financial Highlights 100 S. Mill Ave Ste. 1600 Tempe, AZ 85281 T: 480.505.8800 https://i ...

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]

Core Insights - GoDaddy (GDDY) is set to report first-quarter 2025 results on May 1, with expected revenues between $1.175 billion and $1.195 billion, indicating a 7% growth at the mid-point from the previous year [1] - The Zacks Consensus Estimate for first-quarter 2025 revenues is $1.19 billion, suggesting a 7.1% year-over-year rise [1][2] Revenue and Earnings Expectations - The consensus estimate for earnings is $1.41 per share, reflecting a 30.56% growth from the year-ago quarter, despite a 3.4% decline over the past 30 days [2] - GoDaddy has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 3.42% [2] Key Factors Impacting Performance - Currency fluctuations are expected to negatively impact international revenues, with U.S. revenue growth anticipated to outpace international growth by 200 basis points [3] - Increased marketing spend to support the launch of the Airo platform is likely to pressure margins in the first quarter [3] - Customer retention challenges are expected due to divestitures, lack of deep discounting, and ongoing customer migrations [4] Positive Developments - GoDaddy is expected to benefit from strong early adoption of the Airo platform, with 50% of paid subscriptions in Q4 originating from Airo, driven by increased customer engagement [5] - The company aims for Applications & Commerce (A&C) revenue growth in the mid-teens, with a Zacks Consensus Estimate for A&C revenues at $441 million, indicating a 15.1% year-over-year growth [6] Earnings Outlook - GoDaddy currently has an Earnings ESP of -17.31% and a Zacks Rank of 4 (Sell), indicating lower odds of an earnings beat [7]

GoDaddy (GDDY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than expectatio ...

Financial Performance - Total revenue for the year ended December 31, 2023, was $4,573.2 million, representing a 7.5% increase on a reported and constant currency basis[22]. - International revenue reached $1,459.8 million, an increase of 5.7%, or approximately 5.8% on a constant currency basis[22]. - Total bookings amounted to $5,038.8 million, reflecting a 9.5% increase, or approximately 9.7% on a constant currency basis[22]. - Operating income increased to $893.5 million, a significant rise of 63.2%[22]. - Net income for the year was $936.9 million, a decrease of 31.9% compared to the previous year[22]. - Normalized EBITDA was reported at $1,395.9 million, an increase of 23.0%[22]. - Total revenue increased by 8% to $4,573.2 million in 2024, driven by a 16% increase in Applications and Commerce revenue[336]. - NEBITDA for 2024 was $1,395.9 million, up from $1,134.5 million in 2023, reflecting a significant increase in operational performance[333]. - Total bookings rose by 9.5% to $5,038.8 million in 2024, attributed to strong customer adoption of productivity solutions and pricing initiatives[338]. - Net income for the year ended December 31, 2024, was $936.9 million, a decrease of 31.9% from $1,375.6 million in 2023[333]. Customer Metrics - Total customers at period end were 20,511 thousand, a decrease from 21,026 thousand in the previous year[327]. - Average revenue per user (ARPU) increased to $220, up from $203 in the previous year[327]. - Domains under management totaled 81,013 thousand, down from 83,554 thousand in the previous year[327]. Cash Flow and Investments - Net cash provided by operating activities was $1,287.7 million, marking a 22.9% increase[22]. - Net cash provided by operating activities increased by $240.1 million from $1,047.6 million in 2023 to $1,287.7 million in 2024, driven by strong adoption of A&C products and lower restructuring payments[369]. - Net cash provided by investing activities improved by $123.9 million, from a net cash used of $102.4 million in 2023 to a net cash provided of $21.5 million in 2024[371]. - Net cash used in financing activities decreased by $584.3 million from $1,261.7 million in 2023 to $677.4 million in 2024, primarily due to a reduction in share repurchases[372]. - Cash and cash equivalents increased significantly to $1,089.0 million in 2024 from $458.8 million in 2023, marking a growth of 137.5%[433]. Expenses and Costs - Cost of revenue increased by 5% to $1,652.0 million in 2024, driven by growth in domain registration and productivity applications[340]. - Technology and development expenses decreased by 3% to $814.4 million in 2024, due to lower personnel costs and reduced legal and professional fees[342]. - Marketing and advertising expenses increased by 1% to $356.9 million in 2024, primarily due to increased discretionary advertising spend[344]. - General and administrative expenses rose by 5% to $394.2 million in 2024, mainly due to higher stock-based compensation and legal costs[348]. - Restructuring and other expenses decreased by 57% to $39.4 million in 2024, reflecting a significant reduction in severance and related costs[349]. - Interest expense decreased by 11.6% to $158.3 million in 2024, resulting from refinancing activities that reduced the interest margin[353]. Equity and Stockholder Information - The total stockholders' equity increased to $692.1 million in 2024 from $62.2 million in 2023, a significant rise of 1006.5%[433]. - The company repurchased shares for an aggregate price of $668.1 million in 2024, with $767.4 million remaining for future repurchases[378][379]. - The company repurchased 17,356 thousand shares of Class A common stock for $1,272.9 million during the year ended December 31, 2022[441]. - The balance of retained earnings as of December 31, 2023, was $(2,320.7) million, reflecting a decrease from $(2,422.6) million in the previous year[441]. Revenue Recognition and Accounting Policies - Revenue is recorded on a gross basis when the company acts as a principal, and on a net basis when acting as an agent, with specific criteria determining the classification[384]. - The company completed a series of transactions on December 11, 2023, resulting in Desert Newco becoming a wholly-owned subsidiary, simplifying its capital structure[395]. Debt and Financing - Total borrowings under the 2031 Term Loans were $995.0 million as of December 31, 2024, with an amortization rate of 1.00% per annum[410]. - Total borrowings under the 2029 Term Loans were $1,458.9 million as of December 31, 2024, also with an amortization rate of 1.00% per annum[411]. - The company entered into interest rate swaps with a notional amount of $1,222.7 million as of December 31, 2024, converting variable-rate borrowings under the 2029 Term Loans to a fixed rate of 4.81%[413]. Impairment and Foreign Currency - The company recognized an immaterial non-cash impairment charge for certain indefinite-lived intangible assets during 2024, following a qualitative assessment indicating potential impairment[393]. - The company manages foreign currency risk through foreign exchange forward contracts and cross-currency swaps, with a notional amount of €1,146.9 million (approximately $1,187.4 million) as of December 31, 2024[406]. - The effect of a hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the company's cash and cash equivalents[403]. Comprehensive Income - The company reported a comprehensive income of $958.2 million for 2024, down from $1,307.6 million in 2023, a decrease of 26.7%[438].

Financial Data and Key Metrics Changes - GoDaddy reported total revenue growth of 8% for the full year 2024, reaching $4.6 billion, with normalized EBITDA margin expanding to 31%, an increase of nearly 400 basis points year-over-year [26][28][19] - Free cash flow grew 25% to $1.4 billion, exceeding guidance, while unlevered free cash flow for the year increased 20% to $1.5 billion [29][19] - In Q4 2024, total revenue was $1.2 billion, exceeding guidance, with normalized EBITDA margin expanding to 32% [21][22] Business Line Data and Key Metrics Changes - Applications and commerce (A&C) segment revenue grew 17% to $441 million, driven by strong performance across products including website plus marketing and managed WordPress [22][23] - Core platform segment revenue grew 4% to $751 million, with bookings also increasing by 4% [23][24] - A&C bookings grew 17%, while core platform bookings rose 4% [22][23] Market Data and Key Metrics Changes - Annualized gross payment volume (GPV) increased 55% to $2.6 billion, indicating strong growth in the commerce initiative [10] - The company expects revenue growth in the US to outpace international growth by approximately 200 basis points due to currency headwinds [36] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [3] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations within the hosting business [7][48] - The Aero initiative is seen as a key driver of future growth, with plans to enhance customer experience and engagement through AI and new product offerings [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by high-value customer acquisition and improved retention rates [32][56] - The company anticipates modest financial benefits from the Aero experience in the near term, with a focus on long-term growth [38] - Management highlighted the importance of maintaining operational discipline while pursuing innovation and customer engagement [40][41] Other Important Information - GoDaddy exited 2024 with $1.1 billion in cash and total liquidity of $2.1 billion, with net debt at $2.8 billion [33] - The company plans to maintain a disciplined approach to capital allocation, including covering dilution from share-based compensation through buybacks [44][45] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for 2025? - Management indicated that the focus will be on presence products and specific customer cohorts, emphasizing a customer cohort-based approach rather than a product-centric one [48][52] Question: What are the drivers for returning to customer growth in 2025? - Management highlighted the focus on high-quality customers and the positive signs from the Aero initiative, which is expected to improve customer engagement and retention [56][58] Question: Are there any one-off headwinds impacting revenue growth? - Management acknowledged that while bookings momentum is strong, there are transactional aspects that could impact revenue recognition, particularly in the aftermarket business [66][134] Question: What is the expected impact of the Aero initiative on monetization? - Management noted that Aero is entering the monetization phase earlier than planned, with positive metrics on customer engagement and retention [78][81] Question: How does the company view the growth potential of GPV? - Management expressed optimism about GPV growth, indicating that there is still significant room for penetration within the customer base [85][86] Question: What are the expectations for EBITDA margin in 2025? - Management projected a normalized EBITDA margin expansion of approximately 100 basis points, with continued focus on A&C growth contributing to this [41][157]

Financial Performance - GoDaddy's total bookings grew by 9% year-over-year, reaching $5 billion[9] - The company achieved a NEBITDA margin of 31%, with an expansion of approximately 400 bps[9] - Free cash flow increased by 25% year-over-year[9] - Q4 2024 revenue grew by 8% to $1.2 billion, with Applications & Commerce contributing $0.4 billion (17% growth) and Core Platform contributing $0.8 billion (4% growth)[33] - For the full year 2024, revenue grew by 8% to $4.6 billion, with Applications & Commerce contributing $1.7 billion (16% growth) and Core Platform contributing $2.9 billion (3% growth)[44] Strategic Initiatives - Pricing & bundling initiatives bolstered A&C bookings growth by 21% in 2024[19] - GoDaddy Airo contributed to over 50% of Q4 Websites + Marketing paid subscriptions[21] - Commerce initiatives drove a 55% growth in GPV to $2.6 billion in 2024[19] Capital Allocation - GoDaddy completed $3.2 billion in share buybacks under current authorizations, with $0.8 billion remaining[62] - The company repurchased 39.4 million shares, reducing gross shares outstanding by 23% since January 2022[62] Outlook - The company projects 2025 revenue between $4.860 billion and $4.940 billion[66] - The company expects a NEBITDA margin of approximately 30% for Q1 2025 and an expansion of +100 bps for the full year[66] - GoDaddy anticipates generating over $1.5 billion in free cash flow in 2025[66]

Financial Data and Key Metrics Changes - GoDaddy achieved annual bookings growth of over 9% and expanded normalized EBITDA margin to 31% for the full year [4][19] - Free cash flow increased by 25% for the year, reaching $1.4 billion [4][29] - Total revenue for Q4 grew to $1.2 billion, exceeding guidance, with annual revenue of $4.6 billion representing 8% growth [22][26] - Normalized EBITDA grew 23% to $1.4 billion, with a margin expansion of nearly 400 basis points [27][28] Business Line Data and Key Metrics Changes - Applications and commerce segment revenue grew 17% to $441 million, driven by strong performance in website plus marketing and managed WordPress [22][23] - Core platform segment revenue grew 4% to $751 million, with bookings also increasing by 4% [23][24] - The annualized gross payment volume for commerce grew 55% to $2.6 billion [10] Market Data and Key Metrics Changes - The company expects revenue growth in the US to outpace international growth by approximately 200 basis points, primarily due to currency headwinds [36] - The percentage of customers purchasing two or more products has trended upwards, with over 50% of total customers subscribing to multiple products [32] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [3][20] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations [7][48] - GoDaddy Aero is viewed as a key driver of future growth and customer lifetime value, with plans for further enhancements and monetization [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by high-value customer acquisition and improved engagement metrics [32][56] - The company anticipates modest financial benefits from Aero in the near term, with a focus on long-term growth [38] - Management highlighted the importance of maintaining operational discipline while pursuing innovation and customer engagement [40][41] Other Important Information - GoDaddy exited the year with $1.1 billion in cash and total liquidity of $2.1 billion, with net debt at $2.8 billion [33] - The company plans to maintain a disciplined approach to capital allocation, including covering dilution from share-based compensation through buybacks [44][45] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for presence products? - Management discussed the focus on customer cohorts rather than a product-centric approach, aiming to enhance value-based offers [52][53] Question: What are the drivers for returning to customer growth in 2025? - Management emphasized the importance of attracting high-value customers and noted positive signs in customer engagement and attachment rates [56][58] Question: Are there any one-off headwinds impacting revenue growth? - Management acknowledged small impacts from foreign exchange and noted that bookings are expected to outpace revenue growth [66][68] Question: How is the monetization phase for Aero progressing? - Management indicated that Aero is entering the monetization phase earlier than planned, with positive metrics in customer engagement and retention [78][80] Question: What is the outlook for GPV growth? - Management expressed optimism about continued GPV growth, highlighting that a small percentage of the customer base has been penetrated so far [85][86] Question: Can you provide insights on the renewal rate improvements for Aero cohorts? - Management noted that Aero customers are experiencing higher engagement and retention rates due to the value-added services provided [112][113]