Financial Data and Key Metrics Changes - Total revenue grew to $1.1 billion, up 7% year-over-year, exceeding the high end of guidance [15][20] - Free cash flow increased by 26% to $327 million, with unlevered free cash flow growing 18% to $359 million [18][19] - Normalized EBITDA grew 25% to $313 million, with an expanded margin of 28%, up 400 basis points [17][21] Business Line Data and Key Metrics Changes - Applications and Commerce segment revenue reached $383 million, growing 13% [15][16] - Annualized Gross Payment Volume (GPV) for GoDaddy payments surpassed $2 billion, with segment EBITDA margin at 42%, up over 300 basis points [16][19] - Core platform revenue totaled $725 million, growing 4%, driven by strong demand for domains and aftermarket [16] Market Data and Key Metrics Changes - Customer retention rate remained stable at 85%, with customers holding two or more products above 50% [15] - The company experienced headwinds from divestitures, impacting revenue by approximately 100 basis points [15][20] Company Strategy and Development Direction - The company focuses on enhancing pricing and bundling capabilities, which contributed to the 22% bookings growth in the Applications and Commerce segment [7][8] - GoDaddy Airo is positioned as a key growth driver, enhancing customer engagement and discovery [10][12] - The strategic framework aims for 6% to 8% annual top-line growth, with a target of 33% normalized EBITDA margin by 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the steady macro environment, which is expected to support customer growth [53][78] - The company raised its full-year revenue guidance, now expecting between $4.5 billion and $4.56 billion [20] - Management acknowledged ongoing headwinds from divestitures but remains optimistic about long-term growth prospects [66] Other Important Information - The company repurchased 2.8 million shares year-to-date, totaling $346 million, with a cumulative repurchase of $2.9 billion [19] - Capital expenditures for the quarter were down 81% due to data center divestitures [18] Q&A Session Summary Question: Strong bookings growth and its impact on revenue - Management noted that while bookings growth is strong, revenue recognition can vary, and some headwinds from divestitures will impact revenue growth in the near term [24][25] Question: Insights on Airo's performance and conversion rates - Management highlighted that Airo is performing well in terms of customer engagement and discovery, with expectations for future monetization [26][28] Question: Pricing power and SMB health - Management clarified that pricing changes are based on value-based bundling rather than simple price increases, and SMB sentiment remains optimistic despite challenges [76][78] Question: Drivers of aftermarket growth - Management indicated that the recent growth in the aftermarket is driven by larger transactions, although they expect steady-state growth to remain low single-digit [70][71]

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 March 31, 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 or o ...

Q1 2024 Earnings Results May 2, 2024 ...

[Q1 2024 Financial Results Overview](index=1&type=section&id=GoDaddy%20Reports%20First%20Quarter%202024%20Financial%20Results) GoDaddy reported strong Q1 2024 results, with significant revenue growth, surging net income, and robust free cash flow, driven by its Applications and Commerce segment [Management Commentary](index=1&type=section&id=Management%20Commentary) GoDaddy's leadership expressed confidence following a strong start to 2024, highlighting the company's execution on its mission to empower entrepreneurs - CEO Aman Bhutani highlighted a great start to 2024, focusing on empowering entrepreneurs and driving profitable growth to maximize free cash flow[3](index=3&type=chunk) - CFO Mark McCaffrey underscored the commitment to sustainable growth and disciplined capital allocation, leveraging the company's unified software platform to enhance customer attach, conversion, and retention for long-term shareholder value[3](index=3&type=chunk) [Business Highlights](index=1&type=section&id=Business%20Highlights) GoDaddy reported strong Q1 2024 results with total revenue reaching **$1.1 billion**, a **7% year-over-year increase**, led by the Applications and Commerce segment Q1 2024 Key Performance Indicators (YoY) | Metric | Q1 2024 Value | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $1.1 billion | 7% | | Applications and Commerce (A&C) Revenue | $383.1 million | 13% | | Core Platform Revenue | $725.4 million | 4% | | Total Bookings | $1.3 billion | 9% | | Net Income | $401.5 million | 747% | | Normalized EBITDA (NEBITDA) | $313.0 million | 25% | | Free Cash Flow | $327.4 million | 26% | - The innovative GoDaddy Airo™ experience, an AI-powered tool, began its rollout to the company's 21 million customer base in March, with plans for expansion to more markets throughout the year[5](index=5&type=chunk) [Consolidated First Quarter Financial Highlights](index=2&type=section&id=Consolidated%20First%20Quarter%20Financial%20Highlights) In Q1 2024, GoDaddy's total revenue grew **7.0% YoY to $1.11 billion**, with net income surging to **$401.5 million** due to a non-cash tax benefit Q1 2024 vs Q1 2023 Financial Comparison | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,108.5 million | $1,036.0 million | +7.0% | | Net Income | $401.5 million | $47.4 million | +747.0% | | NEBITDA | $313.0 million | $249.7 million | +25.4% | | Free Cash Flow | $327.4 million | $259.2 million | +26.3% | | Total Bookings | $1,312.7 million | $1,199.2 million | +9.5% | | ARPU | $206 | $197 | +4.6% | - Net income for Q1 2024 was significantly impacted by a non-routine, non-cash tax benefit of **$267.4 million** related to a subsidiary conversion[6](index=6&type=chunk) [Corporate Developments and Financial Position](index=2&type=section&id=Corporate%20Developments%20and%20Financial%20Position) GoDaddy continued share repurchases and maintained a solid financial position while undertaking corporate restructuring [Share Repurchases and Balance Sheet](index=2&type=section&id=Share%20Repurchases%20and%20Balance%20Sheet) GoDaddy continued its capital return program, repurchasing **2.8 million shares for $345.6 million** year-to-date through April 30, 2024 - Year-to-date through April 30, 2024, the company repurchased **2.8 million shares for $345.6 million**, averaging **$121.49 per share**, contributing to an approximate **22% reduction** in fully diluted shares since the start of the current **$4.0 billion** buyback authorization[8](index=8&type=chunk) Balance Sheet Summary (as of March 31, 2024) | Item | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $664.0 | | Total debt | $3,900.0 | | Net debt | $3,200.0 | [Corporate Actions](index=2&type=section&id=Corporate%20Actions) In the first quarter, GoDaddy executed restructuring efforts, including a reduction in force and a subsidiary conversion that generated a significant non-cash tax benefit - The company implemented restructuring efforts, including a workforce reduction of about **180 employees**, leading to **$22.4 million** in pre-tax charges for severance and other costs[10](index=10&type=chunk) - A conversion of the Desert Newco, LLC subsidiary from a partnership to a disregarded entity resulted in a non-cash tax benefit of **$267.4 million**, simplifying the company's capital structure[11](index=11&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) GoDaddy provided optimistic guidance for Q2 and full-year 2024, projecting continued revenue growth and strong profitability [Q2 2024 Guidance](index=3&type=section&id=Q2%202024%20Guidance) For the second quarter of 2024, GoDaddy anticipates total revenue between **$1.10 billion and $1.12 billion**, marking a **6% year-over-year growth** at the midpoint Q2 2024 Outlook | Metric | Guidance Range/Value | | :--- | :--- | | Total Revenue | $1.10B - $1.12B | | YoY Revenue Growth (midpoint) | 6% | | A&C Revenue Growth | Low- to mid-teens | | Core Revenue Growth | Low single digits | | NEBITDA Margin | ~28% | [Full Year 2024 Guidance](index=3&type=section&id=Full%20Year%202024%20Guidance) GoDaddy raised its full-year 2024 revenue forecast to a range of **$4.50 billion to $4.56 billion**, representing **6.5% growth** at the midpoint Full Year 2024 Outlook | Metric | Guidance Range/Value | | :--- | :--- | | Total Revenue | $4.50B - $4.56B | | YoY Revenue Growth (midpoint) | 6.5% | | NEBITDA Margin | ~29% | | Unlevered Free Cash Flow | At least $1.4 billion (+12% YoY) | | Free Cash Flow | At least $1.2 billion (+11% YoY) | [Consolidated Financial Statements (unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents GoDaddy's unaudited financial statements, including statements of operations, balance sheets, and cash flows for Q1 2024 [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2024, GoDaddy's revenue increased to **$1.11 billion**, with net income surging to **$401.5 million** due to a significant tax benefit Q1 2024 Income Statement Highlights (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $1,108.5 | $1,036.0 | | Operating Income | $175.9 | $70.8 | | Income Before Taxes | $143.2 | $47.6 | | Benefit for Income Taxes | $258.3 | ($0.2) | | Net Income | $401.5 | $47.4 | | Diluted EPS | $2.76 | $0.30 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, GoDaddy's total assets stood at **$8.0 billion**, with total stockholders' equity increasing substantially to **$414.8 million** Balance Sheet Comparison (in millions) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $664.0 | $458.8 | | Total Assets | $7,978.8 | $7,564.9 | | Total Liabilities | $7,564.0 | $7,502.7 | | Total Stockholders' Equity | $414.8 | $62.2 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, GoDaddy generated **$297.2 million** in net cash from operating activities, with a net increase in cash of **$205.2 million** Q1 Cash Flow Summary (in millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $297.2 | $270.3 | | Net cash provided by (used in) investing activities | $43.7 | ($22.8) | | Net cash used in financing activities | ($135.0) | ($124.2) | | Net increase in cash and cash equivalents | $205.2 | $118.4 | | Cash and cash equivalents, end of period | $664.0 | $892.4 | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides definitions and reconciliations for non-GAAP financial measures and other key operating metrics used in the report [Definitions of Non-GAAP and Other Metrics](index=5&type=section&id=Definitions%20of%20Non-GAAP%20and%20Other%20Metrics) This section defines key non-GAAP and operating metrics used in the report to supplement GAAP financial results, providing clarity on how management evaluates business performance - The report defines several key performance metrics, including: - **Total Bookings:** Total value of customer contracts entered into during the period - **NEBITDA:** Net income adjusted for items like depreciation, interest, taxes, and equity-based compensation - **Free Cash Flow:** Unlevered free cash flow less interest payments - **ARR:** Quarterly recurring revenue multiplied by four[22](index=22&type=chunk)[24](index=24&type=chunk)[30](index=30&type=chunk) [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed tables reconciling GAAP figures to their non-GAAP counterparts, showing adjustments for key metrics like NEBITDA and Free Cash Flow Reconciliation of Net Income to NEBITDA (Q1 2024, in millions) | Line Item | Amount | | :--- | :--- | | Net income | $401.5 | | Adjustments (Depreciation, Interest, Taxes, etc.) | ($88.5) | | **NEBITDA** | **$313.0** | Reconciliation to Free Cash Flow (Q1 2024, in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $297.2 | | Capital expenditures | ($4.4) | | Other adjustments | $34.6 | | **Free cash flow** | **$327.4** | Net Debt Calculation (March 31, 2024, in millions) | Line Item | Amount | | :--- | :--- | | Total debt | $3,869.9 | | Less: cash and cash equivalents | ($664.0) | | **Net debt** | **$3,205.9** | [Shares Outstanding and Constant Currency](index=11&type=section&id=Shares%20Outstanding%20and%20Constant%20Currency) As of March 31, 2024, total common stock outstanding was **142.4 million shares**, reflecting the impact of share repurchases Total Common Stock Outstanding (in thousands) | Date | Shares | | :--- | :--- | | March 31, 2024 | 142,429 | | March 31, 2023 | 154,421 | - The constant currency adjustment for Q1 2024 was minimal, reducing reported revenue by **$0.5 million** and bookings by **$0.1 million** to show underlying performance without currency fluctuations[47](index=47&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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) (State or other jurisdiction of inco ...

Q4 2023 & Full Year Financial Results February 13, 2024 Billie Dumaliang ...

Financial Data and Key Metrics - Full year normalized EBITDA margin increased approximately 200 basis points, resulting in a 12% increase in free cash flow and a 21% increase in free cash flow per share [5] - Q4 normalized EBITDA grew 22% to $324 million, representing a 29.5% margin, and an expansion of nearly 400 basis points compared to Q4 2022 [18] - Full year unlevered free cash flow grew 14% to $1.3 billion and free cash flow grew 12% to $1.1 billion [23] - Q4 Applications and Commerce revenue grew 13% to $377 million with an expanded segment EBITDA margin of 44% [14] - Annualized GPV for 2023 grew 125% year-over-year, reaching $1.7 billion [12] Business Line Data and Key Metrics - Applications and Commerce segment bookings grew 16% in Q4, driven by strong attach of productivity solutions and Create + Grow products [17] - Core Platform revenue grew 2% to $723 million in Q4, with domain bookings growth of 7% [15] - Hosting revenue decreased by 11% in Q4 due to ongoing integration efforts [16] - Aftermarket revenue grew 14% to $118 million in Q4 [16] Market Data and Key Metrics - International revenue grew 4% on a reported and constant currency basis to $354 million in Q4 [17] - Total revenue in Q4 grew 6% to $1.1 billion, with international revenue contributing $354 million [17] Company Strategy and Industry Competition - The company's strategy focuses on margin expansion and growth in the Applications and Commerce segment, with a goal to exit 2024 with a normalized EBITDA margin of approximately 31% [6] - GoDaddy Airo, a unified technology stack, has been launched to enhance customer experience and drive higher monetization rates [6][9] - The company is focusing on bundling products to drive higher attach rates, particularly in the high-margin Applications and Commerce segment [8] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's ability to drive margin improvement and growth in Applications and Commerce, which is expected to result in significant improvements in free cash flow per share [13] - The company expects total revenue for 2024 to be within a range of $4.48 billion to $4.56 billion, representing growth of over 6% at the midpoint [23] - Management anticipates continued margin expansion, targeting a normalized EBITDA margin of approximately 29% for the full year 2024 [24] Other Important Information - The company refinanced $1.8 billion of outstanding principal in January 2024, securing a 50 basis point interest rate reduction, which is expected to reduce annualized cash interest expense by approximately $22 million [21] - Cumulative shares repurchased under current authorizations totaled $2.6 billion, reducing fully diluted shares outstanding by over 20% [21] Q&A Session Summary Question: Macro Environment and Demand Outlook - Management noted strong demand from micro-business customers and optimism about the macro environment, with potential upside from aftermarket performance and bundling efforts [31][32] Question: Valuation Allowance and Tax Shield - The company released a valuation allowance due to increased profitability, which does not impact cash flow or normalized EBITDA but reflects expected future tax benefits [34] Question: GoDaddy Airo Rollout and Growth Drivers - Airo is being rolled out rapidly, with initial results showing higher monetization rates among test cohorts. The company expects broad adoption in the U.S. and international markets [38][39] Question: Legacy Hosting and Core Platform Growth - Legacy hosting faces headwinds from divestitures, but domain growth remains strong, with 7% bookings growth in Q4 [41] Question: Applications and Commerce Growth Drivers - Growth in Applications and Commerce is driven by faster adoption of second and third products, leading to higher retention rates and profitability [45][46] Question: Share Repurchases and Capital Allocation - The company plans to continue share repurchases under its $1.4 billion authorization, with a focus on disciplined capital allocation [47] Question: Payments Penetration and Growth - GoDaddy Payments is in early stages of customer penetration, with existing customers expected to drive growth in 2024 [51] Question: Airo Monetization and Pricing Flexibility - Airo is being tested in international markets, with potential for new monetization methods such as premium logo-building services [56][57] Question: Customer Growth and Intent - The company is focusing on high-intent customers, with gross customer ads higher in 2023 than 2022, despite divestitures impacting low-intent customers [67][68] Question: Margin Expansion Drivers - Margin expansion is driven by reduced technology and development spend, automation in care, and growth in the high-margin Applications and Commerce segment [63] Question: Revenue Upside and Margin Flow - Management balances growth and profitability, with a focus on driving free cash flow and free cash flow per share [82][83] Question: Airo Rollout Quantification - Hundreds of thousands of customers have already experienced Airo, with aggressive rollout plans for new and existing customers [87] Question: Divestiture Margin Benefits - Divestitures benefit normalized EBITDA and reduce CapEx spend, contributing to free cash flow growth [92] Question: A&C Margin Profile - Applications and Commerce products, particularly Websites + Marketing and Managed WordPress, are high-margin and growing double-digits [96][98] Question: GoDaddy Payments Strategy - GoDaddy Payments targets micro-sellers, with plans to expand capabilities and focus on omni-commerce solutions [100]

GoDaddy, Inc. (NYSE:GDDY) Q3 2023 Earnings Conference Call November 3, 2023 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 Vikram Kesavabhotla - Baird Trevor Young - Barclays Matthew Pfau - William Blair Christopher Kuntarich - UBS Naved Khan - B. Riley Ella Smith - JPMorgan Ygal Arounian - Citi Ken Wong - Oppenheimer Deepak Mathivanan - Wolfe Christie Masoner G ...

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, 2023 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) (State or other jurisdictio ...

GoDaddy Inc. (NYSE:GDDY) Q2 2023 Earnings Call Transcript August 3, 2023 5:00 PM ET Company Participants Christie Masoner - Head, Investor Relations Aman Bhutani - Chief Executive Officer Mark McCaffrey - Chief Financial Officer Conference Call Participants Matt Pfau - William Blair Vikram Kesavabhotla - Baird Trevor Young - Barclays Naved Khan - B. Riley Ygal Arounian - Citi Christie Masoner Good afternoon, and thank you for joining us for GoDaddy's Second Quarter 2023 Earnings Call. I'm Christie Masone, H ...