Financial Data and Key Metrics Changes - GoDaddy achieved a top line bookings growth of over 9% and expanded normalized EBITDA margin to 31% for the full year [6][14] - The company reported a 25% increase in free cash flow for the year, reaching $1,400,000,000 [14][19] - Annual revenue grew 8% to $4,600,000,000, with normalized EBITDA increasing 23% to $1,400,000,000, representing a 31% margin [18][19] Business Line Data and Key Metrics Changes - Applications and Commerce (A&C) segment revenue grew 17% to $1,700,000,000, with bookings also increasing by 17% [16][18] - Core platform segment revenue grew 4% to $2,900,000,000, with bookings rising 4% [16][18] - A&C segment EBITDA margin improved to 47%, while core platform segment EBITDA margin expanded to 34% [16] Market Data and Key Metrics Changes - Annualized gross payment volume (GPV) increased 55% to $2,600,000,000, indicating strong growth in the commerce initiative [9][18] - The company reported a customer base of 20,500,000, reflecting a strategic focus on high-value customers [19][20] 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 [5][14] - 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][10] - GoDaddy Aero is viewed as a key driver of future growth, with plans to expand its capabilities and customer engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by enhanced value propositions and strategic focus on high lifetime value customers [19][24] - The company anticipates total revenue growth of 7% for 2025, with A&C revenue growth in the mid-teens and core platform growth in low single digits [23][24] - Management highlighted the importance of maintaining operational discipline and pursuing opportunities for further leverage through technology and AI [25][26] Other Important Information - GoDaddy exited the year with $1,100,000,000 in cash and total liquidity of $2,100,000,000, with net debt at $2,800,000,000 [22] - The company plans to maintain a disciplined capital allocation approach, focusing on shareholder returns and evaluating all opportunities [26] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for 2025? - Management indicated excitement about the pricing and bundling program, which exceeded expectations in 2024, and plans to focus on presence products and customer cohorts in 2025 [33][35] Question: What are the drivers for returning to customer growth in 2025? - Management emphasized the focus on high-quality customers and the positive signs in the sales funnel, indicating a strategy that prioritizes high-value customers over sheer volume [39][40] Question: Any headwinds affecting revenue growth expectations for 2025? - Management acknowledged potential impacts from foreign exchange and the transactional business, which could affect revenue recognition timing [46][91] Question: What is the expected contribution from the ARROW initiative? - Management expects modest impacts from the ARROW launch in 2025, with a focus on attracting higher-value customers and enhancing their initial experience with GoDaddy [48][50] Question: Can you provide insights on the renewal rates for the Aero cohorts? - Management noted improvements in renewal rates for customers engaged with Aero, attributing this to the added value and multiple product interactions available through the Aero experience [77][78]

Financial Performance - Total revenue for 2024 was $4.6 billion, an increase of 8% year-over-year[6] - Net income for 2024 was $936.9 million, down 32% year-over-year, with a margin of 20%[6] - Normalized EBITDA (NEBITDA) for 2024 was $1.4 billion, up 23% year-over-year, representing a 31% margin[6] - Free cash flow for 2024 was $1.4 billion, an increase of 25% year-over-year[6] - Total revenue for Q4 2024 was $1,192.6 million, a 8.4% increase from $1,100.3 million in Q4 2023[36] - Net income attributable to GoDaddy Inc. for Q4 2024 was $198.6 million, compared to $1,113.9 million in Q4 2023, reflecting a significant decrease[36] - Net income for the year ended December 31, 2024, was $936.9 million, a decrease of 31.9% compared to $1,375.6 million in 2023[40] - Net cash provided by operating activities increased to $1,287.7 million in 2024 from $1,047.6 million in 2023, representing a growth of 22.9%[40] - Free cash flow for the year ended December 31, 2024, was $1,355.5 million, up from $1,084.4 million in 2023, indicating a year-over-year increase of 25%[44] - Total debt as of December 31, 2024, was $3,853.9 million, with net debt standing at $2,764.9 million after accounting for cash and cash equivalents[43] Future Projections - For Q1 2025, total revenue is expected to be between $1.175 billion and $1.195 billion, representing year-over-year growth of 7% at the midpoint[11] - For the full year 2025, total revenue is targeted in the range of $4.860 billion to $4.940 billion, also representing year-over-year growth of 7% at the midpoint[11] Operational Metrics - Annualized recurring revenue (ARR) is a key metric, highlighting the scale of subscription-based services, which is crucial for future revenue growth[31] - Total bookings, an important operating metric, provides insight into customer contract values, excluding refunds, indicating marketing effectiveness[22] - The company reported a NEBITDA margin, which is a supplemental measure of operating performance, reflecting the ratio of NEBITDA to revenue[25] - Total customers increased, which is a contributing factor to revenue growth potential, although specific numbers were not disclosed[33] Cash and Liquidity - GoDaddy's cash and cash equivalents increased to $1,089.0 million in Q4 2024 from $458.8 million in Q4 2023, indicating improved liquidity[38] - Cash and cash equivalents at the end of the period increased to $1,089.0 million from $458.8 million in 2023, marking a substantial rise[40] Investment and Innovation - GoDaddy's investment in technology and development was $200.5 million for Q4 2024, slightly down from $203.8 million in Q4 2023, indicating a focus on innovation[36] - The company is actively pursuing market expansion and new product development, particularly through its AI-powered services to enhance customer experience[34] - The company launched the Airo Plus tier, enhancing its AI-powered GoDaddy Airo experience[9] Debt and Financing - In December 2024, GoDaddy refinanced $1.5 billion of term loans, securing a 0.25% interest rate margin reduction[10] - The company issued $4,214.8 million in term loans during the year, significantly higher than $1,759.9 million in 2023[40] Profitability and Efficiency - NEBITDA margin for the year ended December 31, 2024, was 30.5%, up from 26.7% in 2023, indicating improved operational efficiency[41]

GoDaddy, Inc. (NYSE:GDDY) Q3 2024 Earnings Conference Call October 30, 2024 5:00 PM ET Company Participants Christie Masoner - VP of Investor Relations Aman Bhutani - Chief Executive Officer Mark McCaffrey - Chief Financial Officer Conference Call Participants Trevor Young - Barclays Ken Wong - Oppenheimer Ygal Arounian - Citi Elizabeth Elliott - Morgan Stanley Josh Beck - Raymond James Ella Smith - JPMorgan Chris Zhang - UBS Naved Khan - B. Riley Securities Clarke Jeffries - Piper Sandler Christie Masoner ...

© 2024 GoDaddy Inc. © 2024 GoDaddy Inc. 1 - 1 - 1 - 1 - 1 - 1 - G GoDaddy Q3 2024 Earnings Results October 30, 2024 Angel Retonda It's Barking Good ITSBARKINGGOOD.COM Forward-looking statements and non-GAAP financial measures This presentation contains forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-36904 GoDaddy Inc. (Exact name of registrant as specified in its charter) Delaware 46-5769934 (State ...

news release GoDaddy Reports Third Quarter 2024 Financial Results Company builds on its track record of profitable growth, strong cash generation and share repurchases TEMPE, Ariz., October 30, 2024 /PRNewswire/ - GoDaddy Inc. (NYSE: GDDY) today reported financial results for the third quarter that ended September 30, 2024. "GoDaddy delivered a solid third quarter, with continued progress on our key initiatives," said GoDaddy CEO Aman Bhutani. "We are committed to empowering entrepreneurs worldwide with inn ...

GoDaddy Inc. (NYSE:GDDY) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET Company Participants Christie Masoner - Vice President, Investor Relations Aman Bhutani - Chief Executive Officer Mark McCaffrey - Chief Financial Officer Conference Call Participants Josh Beck - Raymond James Trevor Young - Barclays Jian Li - Evercore Elizabeth Porter - Morgan Stanley Vikram Kesavabhotla - Baird Willow Miller - William Blair Clarke Jeffries - Piper Sandler Ygal Arounian - Citi Chris Kuntarich - UBS Naved Kh ...

Financial Performance - GoDaddy's Q2 2024 revenue reached $1.124 billion, a 7% increase compared to $1.048 billion in Q2 2023[48] - Applications & Commerce (A&C) revenue grew by 15% to $406 million in Q2 2024, up from $352 million in Q2 2023[32, 60] - Core Platform revenue increased by 3% to $719 million in Q2 2024, compared to $696 million in Q2 2023[32, 60] - Free cash flow increased by 35% to $323 million in Q2 2024, compared to $240 million in Q2 2023[48] - Normalized EBITDA grew by 25% to $332 million in Q2 2024, up from $265 million in Q2 2023, with a margin expansion of 400 bps+ to 29%[12, 48, 60] Strategic Initiatives and Growth - A&C Annual Recurring Revenue (ARR) increased by 14% to $1.5 billion[37] - Core Platform ARR increased by 2% to $2.3 billion[40] - GoDaddy Airo has reached over 1 million new customers, with over 500,000 engaged in the experience since launch and is poised to launch in over 90 additional countries[15] Capital Allocation - GoDaddy has completed $3.1 billion in share buybacks under current authorizations, repurchasing 38.3 million shares, resulting in a 23% reduction of shares outstanding since January 2022[52, 53] - The company has $0.9 billion remaining for future share repurchases[53] Outlook - GoDaddy projects revenue between $1.13 billion and $1.15 billion for Q3 2024 and between $4.525 billion and $4.565 billion for the full year 2024[58] - The company anticipates mid-teens growth for Applications & Commerce and low single-digit growth for Core Platform in both Q3 2024 and full year 2024[58] - GoDaddy expects a Normalized EBITDA margin of approximately 29% for Q3 2024 and full year 2024, and unlevered free cash flow of $1.45 billion+ and free cash flow of $1.3 billion+[58]

[Note About Forward-Looking Statements](index=3&type=section&id=Note%20About%20Forward-Looking%20Statements) This section cautions that forward-looking statements involve substantial risks and uncertainties, potentially causing actual results to differ materially - Forward-looking statements involve substantial risks and uncertainties that could cause actual results to differ materially from projections[9](index=9&type=chunk) - Key areas of uncertainty include the ability to add and retain customers, develop new solutions (especially with AI), maintain brand strength, manage service interruptions and security breaches, and ensure future financial performance[10](index=10&type=chunk) - The company operates in competitive and rapidly-changing environments, making it impossible to predict all risks or assess the full impact of factors on actual results[14](index=14&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents unaudited consolidated financial statements, including balance sheets, income, equity, and cash flows, with accounting notes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets | Metric | June 30, 2024 (Millions) | December 31, 2023 (Millions) | Change (Millions) | % Change | |:---|:---|:---|:---|:---| | Total Assets | $7,721.9 | $7,564.9 | $157.0 | 2.08% | | Total Current Assets | $1,297.2 | $1,255.9 | $41.3 | 3.29% | | Cash and Cash Equivalents | $444.9 | $458.8 | $(13.9) | -3.03% | | Deferred Tax Assets | $1,234.0 | $1,020.4 | $213.6 | 20.93% | | Total Liabilities | $7,607.9 | $7,502.7 | $105.2 | 1.40% | | Total Current Liabilities | $2,707.2 | $2,683.1 | $24.1 | 0.90% | | Deferred Revenue (Current) | $2,230.4 | $2,074.9 | $155.5 | 7.50% | | Total Stockholders' Equity | $157.0 | $62.2 | $94.8 | 152.41% | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations | Metric | Three Months Ended June 30, 2024 (Millions) | Three Months Ended June 30, 2023 (Millions) | Change (Millions) | % Change | |:---|:---|:---|:---|:---| | Total Revenue | $1,124.5 | $1,048.1 | $76.4 | 7.29% | | Applications and Commerce Revenue | $405.6 | $351.7 | $53.9 | 15.33% | | Core Platform Revenue | $718.9 | $696.4 | $22.5 | 3.23% | | Operating Income | $208.2 | $119.6 | $88.6 | 74.08% | | Net Income Attributable to GoDaddy Inc. | $146.3 | $82.9 | $63.4 | 76.48% | | Basic EPS | $1.04 | $0.54 | $0.50 | 92.59% | | Diluted EPS | $1.01 | $0.54 | $0.47 | 87.04% | | Metric | Six Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2023 (Millions) | Change (Millions) | % Change | |:---|:---|:---|:---|:---| | Total Revenue | $2,233.0 | $2,084.1 | $148.9 | 7.14% | | Applications and Commerce Revenue | $788.7 | $689.7 | $99.0 | 14.35% | | Core Platform Revenue | $1,444.3 | $1,394.4 | $49.9 | 3.58% | | Operating Income | $384.1 | $190.4 | $193.7 | 101.73% | | Net Income Attributable to GoDaddy Inc. | $547.8 | $130.2 | $417.6 | 320.74% | | Basic EPS | $3.86 | $0.85 | $3.01 | 354.12% | | Diluted EPS | $3.77 | $0.84 | $2.93 | 348.81% | - Equity-based compensation expense for the three months ended June 30, 2024, was **$76.2 million**, a slight decrease from $77.5 million in the prior year period. For the six months, it decreased from $151.4 million to **$148.0 million**[22](index=22&type=chunk) [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income | Metric | Three Months Ended June 30, 2024 (Millions) | Three Months Ended June 30, 2023 (Millions) | Change (Millions) | % Change | |:---|:---|:---|:---|:---|\n| Net Income | $146.3 | $83.1 | $63.2 | 76.05% | | Comprehensive Income Attributable to GoDaddy Inc. | $147.1 | $104.7 | $42.4 | 40.49% | | Metric | Six Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2023 (Millions) | Change (Millions) | % Change | |:---|:---|:---|:---|:---| | Net Income | $547.8 | $130.5 | $417.3 | 319.77% | | Comprehensive Income Attributable to GoDaddy Inc. | $572.2 | $114.5 | $457.7 | 399.74% | [Consolidated Statements of Stockholders' Equity (Deficit)](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) - Total stockholders' equity increased from **$62.2 million** at December 31, 2023, to **$157.0 million** at June 30, 2024[27](index=27&type=chunk) - Repurchases of Class A common stock amounted to **$(502.8) million** for the three months ended June 30, 2024, and **$(147.1) million** for the three months ended March 31, 2024, impacting accumulated deficit[27](index=27&type=chunk) - Net income attributable to GoDaddy Inc. was **$146.3 million** for the three months ended June 30, 2024, and **$401.5 million** for the three months ended March 31, 2024[27](index=27&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Activity | Cash Flow Activity | Six Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2023 (Millions) | Change (Millions) | % Change | |:---|:---|:---|:---|:---| | Net Cash Provided by Operating Activities | $592.0 | $468.3 | $123.7 | 26.41% | | Net Cash Provided by (Used in) Investing Activities | $40.9 | $(52.0) | $92.9 | 178.65% | | Net Cash Used in Financing Activities | $(646.2) | $(608.3) | $(37.9) | 6.23% | | Net Decrease in Cash and Cash Equivalents | $(13.9) | $(191.4) | $177.5 | -92.74% | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Organization and Background](index=13&type=section&id=Note%201.%20Organization%20and%20Background) - GoDaddy Inc. is the sole managing member of Desert Newco, LLC, and consolidates its financial results. As of June 30, 2024, GoDaddy Inc. owned **100%** of Desert Newco[37](index=37&type=chunk) - The DNC Restructure, completed on December 11, 2023, simplified the capital structure, converting all non-GoDaddy Inc. held Desert Newco units into Class A common stock. Effective January 1, 2024, Desert Newco became a disregarded entity for U.S. income tax purposes, treating GoDaddy Inc. as a consolidated C corporation group[38](index=38&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=14&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) - The company reports operating results through two segments: Applications and Commerce (A&C) and Core Platform (Core)[44](index=44&type=chunk) Revenue Type | Revenue Type | Three Months Ended June 30, 2024 (Millions) | Three Months Ended June 30, 2023 (Millions) | Six Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2023 (Millions) | |:---|:---|:---|:---|:---| | A&C | $405.6 | $351.7 | $788.7 | $689.7 | | Core: Domains | $529.2 | $492.7 | $1,061.2 | $984.8 | | Core: Other | $189.7 | $203.7 | $383.1 | $409.6 | | **Total Revenue** | **$1,124.5** | **$1,048.1** | **$2,233.0** | **$2,084.1** | Geography | Geography | Three Months Ended June 30, 2024 (Millions) | Three Months Ended June 30, 2023 (Millions) | Six Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2023 (Millions) | |:---|:---|:---|:---|:---| | U.S. | $767.4 | $707.0 | $1,523.0 | $1,402.4 | | International | $357.1 | $341.1 | $710.0 | $681.7 | | **Total Revenue** | **$1,124.5** | **$1,048.1** | **$2,233.0** | **$2,084.1** | - Amortization expense for prepaid domain name registry fees was **$195.8 million** for Q2 2024 (vs. $192.1 million in Q2 2023) and **$389.6 million** for H1 2024 (vs. $377.2 million in H1 2023)[50](index=50&type=chunk) - The company holds certain assets measured at fair value on a recurring basis, including notice deposits (**$50.0 million**) and commercial paper (**$29.9 million**) as of June 30, 2024, classified within Level 1 and Level 2 respectively. Derivative assets totaled **$149.4 million**[54](index=54&type=chunk) [Note 3. Goodwill and Intangible Assets](index=16&type=section&id=Note%203.%20Goodwill%20and%20Intangible%20Assets) Goodwill by Segment | Segment | December 31, 2023 (Millions) | Impact of Foreign Currency Translation (Millions) | Goodwill Related to Disposition (Millions) | June 30, 2024 (Millions) | |:---|:---|:---|:---|:---| | A&C | $1,513.6 | $(9.5) | — | $1,504.1 | | Core | $2,055.7 | $(13.1) | $(1.7) | $2,040.9 | | **Total** | **$3,569.3** | **$(22.6)** | **$(1.7)** | **$3,545.0** | Intangible Assets | Intangible Asset Type | Gross Carrying Amount (Millions) | Accumulated Amortization (Millions) | Net Carrying Amount (Millions) | |:---|:---|:---|:---| | **Indefinite-lived:** | | | | | Trade names and branding | $445.0 | n/a | $445.0 | | Domain portfolio | $231.8 | n/a | $231.8 | | Contractual-based assets | $292.7 | n/a | $292.7 | | **Finite-lived:** | | | | | Customer-related | $402.5 | $(325.3) | $77.2 | | Developed technology | $237.1 | $(207.4) | $29.7 | | Trade names and other | $95.0 | $(64.1) | $30.9 | | **Total** | **$1,704.1** | **$(596.8)** | **$1,107.3** | - Amortization expense for intangible assets was **$19.2 million** for Q2 2024 (vs. $26.1 million in Q2 2023) and **$39.7 million** for H1 2024 (vs. $58.8 million in H1 2023). The weighted-average remaining amortization period for amortizable intangible assets was **25 months** in total as of June 30, 2024[58](index=58&type=chunk) [Note 4. Stockholders' Equity](index=18&type=section&id=Note%204.%20Stockholders'%20Equity) - The board of directors authorized a share repurchase program of up to **$4,000.0 million**. As of June 30, 2024, **$1,031.3 million** remained available for repurchases[60](index=60&type=chunk) - During the six months ended June 30, 2024, the company repurchased **3,303 thousand shares** of Class A common stock for an aggregate purchase price of **$404.2 million**[60](index=60&type=chunk) - During Q2 2024, the company entered into Accelerated Share Repurchase (ASR) agreements for an upfront payment of **$245.0 million**, with shares to be delivered in Q3 2024[61](index=61&type=chunk) [Note 5. Prepaid Expenses and Other Current Assets](index=18&type=section&id=Note%205.%20Prepaid%20Expenses%20and%20Other%20Current%20Assets) Prepaid Expenses and Other Current Assets | Component | June 30, 2024 (Millions) | December 31, 2023 (Millions) | |:---|:---|:---| | Derivative assets | $149.4 | $128.6 | | Prepaid software and maintenance expenses | $49.2 | $23.0 | | Other | $39.5 | $25.6 | | **Total** | **$238.1** | **$177.2** | [Note 6. Equity-Based Compensation Plans](index=18&type=section&id=Note%206.%20Equity-Based%20Compensation%20Plans) - Stockholders approved the 2024 Omnibus Incentive Plan (**9,085 thousand shares** reserved) and the 2024 Employee Stock Purchase Plan (**4,605 thousand shares** reserved) at the Annual Meeting on June 6, 2024[63](index=63&type=chunk)[64](index=64&type=chunk) Stock Option Activity | Stock Option Activity | Number of Shares of Class A Common Stock () | Weighted Average Exercise Price Per Share ($) | |:---|:---|:---| | Outstanding at December 31, 2023 | 845 | 49.60 | | Exercised | (126) | 30.71 | | Outstanding at June 30, 2024 | 719 | 52.92 | | Vested at June 30, 2024 | 719 | 52.92 | - Total unrecognized compensation expense related to non-vested equity grants was **$483.8 million** as of June 30, 2024, with an expected remaining weighted-average recognition period of **2.1 years**[66](index=66&type=chunk) [Note 7. Deferred Revenue](index=20&type=section&id=Note%207.%20Deferred%20Revenue) Deferred Revenue by Type | Deferred Revenue Type | June 30, 2024 (Millions) | December 31, 2023 (Millions) | |:---|:---|:---| | **Current:** | | | | A&C | $776.6 | $683.8 | | Core | $1,453.8 | $1,391.1 | | **Total Current** | **$2,230.4** | **$2,074.9** | | **Noncurrent:** | | | | A&C | $194.5 | $173.5 | | Core | $671.6 | $628.9 | | **Total Noncurrent** | **$866.1** | **$802.4** | | **Grand Total** | **$3,096.5** | **$2,877.3** | - The increase in deferred revenue was primarily driven by payments received in advance of satisfying performance obligations, offset by **$616.1 million** (Q2 2024) and **$1,426.4 million** (H1 2024) of revenue recognized from deferred revenue as of December 31, 2023[68](index=68&type=chunk) Deferred Revenue by Segment and Expected Recognition Period | Segment | Remainder of 2024 (Millions) | 2025 (Millions) | 2026 (Millions) | 2027 (Millions) | 2028 (Millions) | Thereafter (Millions) | Total (Millions) | |:---|:---|:---|:---|:---|:---|:---|:---| | A&C | $544.1 | $312.5 | $85.5 | $19.5 | $5.8 | $3.7 | $971.1 | | Core | $963.5 | $712.7 | $230.1 | $96.7 | $52.1 | $70.3 | $2,125.4 | | **Total** | **$1,507.6** | **$1,025.2** | **$315.6** | **$116.2** | **$57.9** | **$74.0** | **$3,096.5** | [Note 8. Accrued Expenses and Other Current Liabilities](index=21&type=section&id=Note%208.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued Expenses and Other Current Liabilities | Component | June 30, 2024 (Millions) | December 31, 2023 (Millions) | |:---|:---|:---| | Accrued payroll and employee benefits | $106.8 | $143.6 | | Tax-related accruals | $62.3 | $56.2 | | Current portion of operating lease liabilities | $31.1 | $29.1 | | Accrued legal and professional | $27.0 | $34.2 | | Accrued marketing and advertising | $19.0 | $12.3 | | Accrued interest | $13.5 | $13.6 | | Accrued restructuring costs | $6.5 | $7.4 | | Accrued acquisition-related expenses | $6.3 | $20.6 | | Derivative liabilities | $3.6 | $46.4 | | Other | $89.0 | $78.8 | | **Total** | **$365.1** | **$442.2** | [Note 9. Long-Term Debt](index=21&type=section&id=Note%209.%20Long-Term%20Debt) Long-Term Debt | Debt Instrument | Maturity Date | June 30, 2024 (Millions) | December 31, 2023 (Millions) | |:---|:---|:---|:---| | 2029 Term Loans | November 10, 2029 | $1,466.2 | $1,752.3 | | 2031 Term Loans | May 31, 2031 | $1,000.0 | — | | 2027 Term Loans | August 10, 2027 | — | $723.8 | | 2027 Senior Notes | December 1, 2027 | $600.0 | $600.0 | | 2029 Senior Notes | March 1, 2029 | $800.0 | $800.0 | | **Total Long-Term Debt** | | **$3,866.2** | **$3,876.1** | | Less: Unamortized original issue discount and debt issuance costs | | $(61.5) | $(59.7) | | Less: Current portion of long-term debt | | $(17.0) | $(17.9) | | **Long-Term Debt, Net of Current Portion** | | **$3,787.7** | **$3,798.5** | - In January 2024, the company refinanced existing term loans with new 2029 Term Loans. In May 2024, new 2031 Term Loans were issued to refinance and extend the maturity of 2027 Term Loans and repay a portion of 2029 Term Loans[72](index=72&type=chunk)[73](index=73&type=chunk) - As of June 30, 2024, **$998.7 million** was available for borrowing under the Revolver, and the company was in compliance with all debt covenants[74](index=74&type=chunk)[75](index=75&type=chunk) [Note 10. Derivatives and Hedging](index=23&type=section&id=Note%2010.%20Derivatives%20and%20Hedging) - The company uses foreign exchange forward contracts, cross-currency swaps, and interest rate swaps as cash flow hedges and cross-currency swaps as net investment hedges to mitigate foreign currency and interest rate risks[78](index=78&type=chunk)[80](index=80&type=chunk) Derivative Instruments | Derivative Type | Notional Amount (June 30, 2024, Millions) | Fair Value Asset (June 30, 2024, Millions) | Fair Value Liability (June 30, 2024, Millions) | |:---|:---|:---|:---| | Foreign exchange forward contracts | $718.2 | $3.9 | $3.6 | | Cross-currency swaps (cash flow hedges) | $541.4 | $1.0 | — | | Interest rate swaps | $1,949.4 | $143.2 | — | | Cross-currency swaps (net investment hedges) | $694.0 | $1.3 | — | | **Total Hedges** | **$3,903.0** | **$149.4** | **$3.6** | - As of June 30, 2024, an estimated **$96.9 million** of net deferred gains related to designated hedges are expected to be recognized in earnings over the next 12 months[83](index=83&type=chunk) [Note 11. Leases](index=25&type=section&id=Note%2011.%20Leases) - Operating leases primarily consist of office and data center space, with a remaining weighted-average lease term of **6.3 years** and a weighted-average discount rate of **5.5%** as of June 30, 2024[89](index=89&type=chunk) Lease Cost Components | Lease Cost Component | Three Months Ended June 30, 2024 (Millions) | Three Months Ended June 30, 2023 (Millions) | Six Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2023 (Millions) | |:---|:---|:---|:---|:---| | Operating lease costs | $6.9 | $9.6 | $14.5 | $19.4 | | Variable lease costs | $3.0 | $3.8 | $6.7 | $7.6 | | Sublease income | $(1.8) | $(2.2) | $(4.7) | $(4.5) | | **Total Net Lease Cost** | **$8.1** | **$11.2** | **$16.5** | **$22.5** | - During the six months ended June 30, 2024, **$6.0 million** of expense was recognized related to the abandonment of certain operating leases, included in restructuring and other charges[90](index=90&type=chunk) [Note 12. Commitments and Contingencies](index=26&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) - No material changes to legal proceedings or contractual obligations from the 2023 Form 10-K[91](index=91&type=chunk)[92](index=92&type=chunk) - Accrual for estimated indirect tax liabilities was **$25.7 million** as of June 30, 2024, up from $23.6 million at December 31, 2023, reflecting the best estimate of probable liability[94](index=94&type=chunk) [Note 13. Restructuring and Other Charges and Disposition of Businesses and Related Assets](index=26&type=section&id=Note%2013.%20Restructuring%20and%20Other%20Charges%20and%20Disposition%20of%20Businesses%20and%20Related%20Assets) - During H1 2024, the company implemented restructuring activities, including a reduction in force impacting

[Q2 2024 Performance Highlights](index=1&type=section&id=Second%20Quarter%202024%20Business%20Highlights) GoDaddy exceeded Q2 2024 revenue and margin guidance, driven by strong Applications and Commerce growth and AI initiatives Q2 2024 Key Financial Metrics | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $1.1 billion | +7% | | Net Income | $146.3 million | +76% | | Normalized EBITDA (NEBITDA) | $331.7 million | +25% | | Free Cash Flow | $323.4 million | +35% | | Total Bookings | $1.3 billion | +11% | Q2 2024 Revenue by Segment | Segment | Revenue | YoY Change | | :--- | :--- | :--- | | Applications and Commerce (A&C) | $405.6 million | +15% | | Core Platform (Core) | $718.9 million | +3% | - The company is expanding its AI-powered experience, **GoDaddy Airo™**, which is now available with all new and existing domain purchases in English-speaking markets, with plans to expand to over 90 additional countries[3](index=3&type=chunk)[5](index=5&type=chunk) - Launched the **GoDaddy Digital Marketing suite**, a new platform offering personalized marketing tools and content to help customers build their brand and generate leads, even without a website[5](index=5&type=chunk) [Capital Management & Balance Sheet](index=2&type=section&id=Share%20Repurchases) GoDaddy continued capital return via share repurchases and refinanced debt, extending maturity and reducing interest expense - Year-to-date through July 30, 2024, GoDaddy repurchased **4.1 million shares** for **$520.8 million**, reducing fully diluted shares by approximately **23%** since the program's inception in January 2022[7](index=7&type=chunk) - In May 2024, the company amended its credit agreement, refinancing debt to extend maturity to 2031 and securing a **25 basis point interest rate reduction** This is expected to lower annual cash interest expense by about **$25.0 million**[9](index=9&type=chunk) Balance Sheet Summary (as of June 30, 2024) | Item | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $444.9 | | Total debt | $3,900.0 | | Net debt | $3,400.0 | [Business Outlook](index=3&type=section&id=Business%20Outlook) GoDaddy raised full-year 2024 guidance for revenue, NEBITDA, and free cash flow, signaling strong future performance Q3 2024 Guidance | Metric | Guidance Range/Target | | :--- | :--- | | Total Revenue | $1.13B - $1.15B (+7% YoY at midpoint) | | NEBITDA Margin | ~29% | Full Year 2024 Raised Guidance | Metric | Guidance Range/Target | | :--- | :--- | | Total Revenue | $4.525B - $4.565B (+7% YoY at midpoint) | | NEBITDA Margin | ~29% | | Unlevered Free Cash Flow | At least $1.45B (+16% YoY) | | Free Cash Flow | At least $1.3B (+20% YoY) | [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements) GoDaddy's unaudited financial statements detail strong operational performance, a stable balance sheet, and robust cash generation [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20(unaudited)) Q2 2024 saw significant increases in total revenue, operating income, and net income, driven by strong top-line growth and expense management Q2 2024 vs Q2 2023 Statement of Operations (in millions) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total Revenue | $1,124.5 | $1,048.1 | | Operating Income | $208.2 | $119.6 | | Net Income | $146.3 | $83.1 | | Diluted EPS | $1.01 | $0.54 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets%20(unaudited)) As of June 30, 2024, GoDaddy's balance sheet shows a slight increase in total assets and stockholders' equity, maintaining a stable financial position Balance Sheet Comparison (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $7,721.9 | $7,564.9 | | Cash and cash equivalents | $444.9 | $458.8 | | Total Liabilities | $7,564.9 | $7,502.7 | | Total stockholders' equity | $157.0 | $62.2 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) Cash flow statements for the six months ended June 30, 2024, show strong operating cash generation, primarily used for significant share repurchases Six Months Ended June 30 Cash Flow (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $592.0 | $468.3 | | Net cash provided by (used in) investing activities | $40.9 | $(52.0) | | Net cash used in financing activities | $(646.2) | $(608.3) | | Net decrease in cash | $(13.9) | $(191.4) | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP financial measures to non-GAAP metrics like NEBITDA, Free Cash Flow, and Unlevered Free Cash Flow, providing adjusted performance views Q2 2024 Net Income to NEBITDA Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net income | $146.3 | | Adjustments (Depreciation, Equity Comp, Interest, etc.) | +$185.4 | | **NEBITDA** | **$331.7** | Q2 2024 Cash Flow Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $294.8 | | Adjustments (Capex, Restructuring, etc.) | +$28.6 | | **Free cash flow** | **$323.4** | | Cash paid for interest on long-term debt | +$45.3 | | **Unlevered free cash flow** | **$368.7** | [Supplementary Information](index=5&type=section&id=Supplementary%20Information) This section defines key non-GAAP and operating metrics, clarifies share outstanding changes due to buybacks, and provides constant currency reconciliations for performance analysis [Definitions of Non-GAAP and Operating Metrics](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Operating%20and%20Business%20Metrics) This section defines GoDaddy's key non-GAAP and operating metrics, including Total Bookings, Constant Currency, NEBITDA, Free Cash Flow, Net Debt, ARR, and ARPU - Key operating metrics used by management include **Total Bookings**, **Constant Currency**, **NEBITDA**, **Free Cash Flow**, **Net Debt**, **Annualized Recurring Revenue (ARR)**, **Average Revenue Per User (ARPU)**, and **Total Customers**[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Shares Outstanding](index=11&type=section&id=Shares%20Outstanding) Total common stock outstanding decreased to **141.5 million shares** as of June 30, 2024, reflecting the impact of the company's share repurchase program Total Common Stock Outstanding (in thousands) | Date | Shares Outstanding | | :--- | :--- | | June 30, 2024 | 141,455 | | June 30, 2023 | 148,600 |