GoDaddy Reports Second Quarter 2024 Financial Results
GoDaddy (NYSE: GDDY) announced its Q2 2024 financial results, reporting total revenue of $1.1 billion, a 7% YoY increase, and exceeding guidance. Applications and Commerce revenue rose by 15% to $405.6 million, while Core Platform revenue saw a 3% increase to $718.9 million. The company also achieved a 76% surge in net income to $146.3 million, and NEBITDA grew by 25% to $331.7 million.
GoDaddy's free cash flow rose by 35% to $323.4 million. The company continued its share repurchase program, buying back 4.1 million shares for $520.8 million. Its innovative GoDaddy Airo™ experience is expanding globally. For Q3 2024, GoDaddy expects revenue between $1.13 billion and $1.15 billion, and NEBITDA margin around 29%.
For FY 2024, revenue is projected between $4.525 billion and $4.565 billion with NEBITDA margin at 29% and free cash flow at $1.3 billion.
GoDaddy (NYSE: GDDY) ha annunciato i risultati finanziari del secondo trimestre 2024, riportando ricavi totali di 1,1 miliardi di dollari, con un incremento del 7% rispetto all'anno precedente, superando le attese. I ricavi da applicazioni e commercio sono aumentati del 15% a 405,6 milioni di dollari, mentre i ricavi della Piattaforma Core hanno visto un aumento del 3% a 718,9 milioni di dollari. L'azienda ha anche registrato un balzo del 76% nell'utile netto, pari a 146,3 milioni di dollari, e il NEBITDA è cresciuto del 25% a 331,7 milioni di dollari.
Il cash flow libero di GoDaddy è aumentato del 35% a 323,4 milioni di dollari. L'azienda ha proseguito il suo programma di riacquisto di azioni, riacquistando 4,1 milioni di azioni per 520,8 milioni di dollari. La sua innovativa esperienza GoDaddy Airo™ si sta espandendo a livello globale. Per il terzo trimestre 2024, GoDaddy prevede ricavi tra 1,13 miliardi e 1,15 miliardi di dollari, e un margine NEBITDA intorno al 29%.
Per l'intero anno fiscale 2024, i ricavi sono previsti tra 4,525 miliardi e 4,565 miliardi di dollari, con un margine NEBITDA al 29% e un cash flow libero di 1,3 miliardi di dollari.
GoDaddy (NYSE: GDDY) anunció sus resultados financieros del segundo trimestre de 2024, reportando ingresos totales de 1.1 mil millones de dólares, un aumento del 7% interanual, superando las expectativas. Los ingresos de Aplicaciones y Comercio aumentaron un 15% hasta 405.6 millones de dólares, mientras que los ingresos de la Plataforma Central tuvieron un incremento del 3% hasta 718.9 millones de dólares. La compañía también logró un incremento del 76% en ingresos netos hasta 146.3 millones de dólares, y el NEBITDA creció un 25% hasta 331.7 millones de dólares.
El flujo de caja libre de GoDaddy aumentó un 35% hasta 323.4 millones de dólares. La empresa continuó su programa de recompra de acciones, comprando 4.1 millones de acciones por 520.8 millones de dólares. Su experiencia innovadora GoDaddy Airo™ se está expandiendo globalmente. Para el tercer trimestre de 2024, GoDaddy espera ingresos entre 1.13 mil millones y 1.15 mil millones de dólares, y un margen de NEBITDA alrededor del 29%.
Para el año fiscal 2024, se proyecta que los ingresos estén entre 4.525 mil millones y 4.565 mil millones de dólares, con un margen de NEBITDA del 29% y flujo de caja libre de 1.3 mil millones de dólares.
고대디 (NYSE: GDDY)는 2024년 2분기 재무 결과를 발표하며 총 수익이 11억 달러로 전년 대비 7% 증가했다고 보고하고, 전망치를 초과했다고 밝혔습니다. 애플리케이션 및 상거래 수익은 15% 증가하여 4억 5,560만 달러에 달했으며, 핵심 플랫폼 수익은 3% 증가하여 7억 1,890만 달러에 이르렀습니다. 회사는 또한 순이익이 76% 증가한 1억 4,630만 달러에 도달했으며, NEBITDA는 25% 증가하여 3억 3,170만 달러로 성장했습니다.
고대디의 자유 현금 흐름은 35% 증가하여 3억 2,340만 달러에 이르렀습니다. 회사는 4.1백만 주를 5억 2,080만 달러에 매입하는 주식 매입 프로그램을 계속 진행했습니다. 고대디의 혁신적인 Airo™ 경험이 전 세계로 확장되고 있습니다. 2024년 3분기에는 11억 3천만 달러에서 11억 5천만 달러 사이의 수익을 예상하며 NEBITDA 마진은 약 29%에 이를 것으로 보입니다.
2024 회계 연도에는 수익이 45억 2,500만 달러에서 45억 6,500만 달러 사이로 예상되며, NEBITDA 마진은 29%, 자유 현금 흐름은 13억 달러로 전망됩니다.
GoDaddy (NYSE: GDDY) a annoncé ses résultats financiers pour le deuxième trimestre 2024, rapportant des revenus totaux de 1,1 milliard de dollars, soit une augmentation de 7 % par rapport à l'année précédente, dépassant les prévisions. Les revenus issus des applications et du commerce ont augmenté de 15 % pour atteindre 405,6 millions de dollars, tandis que les revenus de la plateforme principale ont connu une augmentation de 3 % pour atteindre 718,9 millions de dollars. L'entreprise a également réalisé une augmentation de 76 % de son revenu net, atteignant 146,3 millions de dollars, et le NEBITDA a augmenté de 25 % pour atteindre 331,7 millions de dollars.
Le flux de trésorerie libre de GoDaddy a augmenté de 35 % pour atteindre 323,4 millions de dollars. L'entreprise a poursuivi son programme de rachat d'actions, rachetant 4,1 millions d'actions pour 520,8 millions de dollars. Son expérience innovante GoDaddy Airo™ s'étend à l'échelle mondiale. Pour le troisième trimestre 2024, GoDaddy s'attend à des revenus compris entre 1,13 milliard et 1,15 milliard de dollars, avec une marge NEBITDA d'environ 29%.
Pour l'exercice 2024, les revenus sont projetés entre 4,525 milliards et 4,565 milliards de dollars, avec une marge NEBITDA de 29 % et un flux de trésorerie libre de 1,3 milliard de dollars.
GoDaddy (NYSE: GDDY) gab die finanziellen Ergebnisse des zweiten Quartals 2024 bekannt und berichtete von Gesamtumsätzen in Höhe von 1,1 Milliarden Dollar, was einem Anstieg von 7% im Vergleich zum Vorjahr entspricht und die Prognosen übertrifft. Die Einnahmen aus Anwendungen und Commerce stiegen um 15% auf 405,6 Millionen Dollar, während die Einnahmen der Kernplattform um 3% auf 718,9 Millionen Dollar zunahmen. Das Unternehmen verzeichnete auch einen Anstieg des Nettoeinkommens um 76% auf 146,3 Millionen Dollar, und NEBITDA wuchs um 25% auf 331,7 Millionen Dollar.
Der freie Cashflow von GoDaddy stieg um 35% auf 323,4 Millionen Dollar. Das Unternehmen setzte sein Aktienrückkaufprogramm fort und kaufte 4,1 Millionen Aktien für 520,8 Millionen Dollar zurück. Die innovative GoDaddy Airo™-Erfahrung breitet sich weltweit aus. Für das dritte Quartal 2024 erwartet GoDaddy Einnahmen zwischen 1,13 Milliarden und 1,15 Milliarden Dollar und einen NEBITDA-Margen von etwa 29%.
Für das Geschäftsjahr 2024 werden Einnahmen zwischen 4,525 Milliarden und 4,565 Milliarden Dollar sowie ein NEBITDA-Margen von 29% und ein freier Cashflow von 1,3 Milliarden Dollar prognostiziert.
- Total revenue of $1.1 billion, up 7% YoY.
- Applications and Commerce revenue grew 15% to $405.6 million.
- Net income increased by 76% to $146.3 million.
- NEBITDA up 25% to $331.7 million.
- Free cash flow rose 35% to $323.4 million.
- Share repurchases of 4.1 million shares for $520.8 million.
- Positive Q3 2024 revenue outlook of $1.13 billion to $1.15 billion.
- Raised FY 2024 revenue guidance to $4.525 billion to $4.565 billion.
- Total customers decreased slightly by 0.6% YoY.
Insights
GoDaddy's Q2 2024 results demonstrate robust financial performance and strategic execution. The company reported total revenue of
Notably, net income surged
The company's cash generation capabilities are impressive, with free cash flow increasing
GoDaddy's outlook for Q3 and full-year 2024 is optimistic, with raised revenue and free cash flow targets. The company expects total revenue for Q3 2024 to be between
Overall, GoDaddy's Q2 results and forward-looking guidance paint a picture of a company with strong fundamentals, consistent growth and improving profitability metrics.
GoDaddy's Q2 2024 results highlight the company's strategic focus on AI-powered solutions and digital marketing tools. The rollout of GoDaddy Airo™, an AI-powered experience, to its existing 20.9 million customer base is a significant move. This initiative, available with all new and existing domain purchases in English-speaking markets, positions GoDaddy at the forefront of AI adoption in the web hosting and domain registration industry.
The launch of the GoDaddy Digital Marketing suite is another noteworthy development. This new customer onboarding path provides personalized marketing tools and content on a single dashboard, enabling customers to build their brand, generate leads and grow their businesses without necessarily having a website. This approach could potentially expand GoDaddy's addressable market by catering to businesses at various stages of digital maturity.
The
While the Core Platform revenue growth was more modest at
Building on its track record of profitable growth, strong cash generation and share repurchases
"GoDaddy successfully delivered a great quarter," said GoDaddy CEO Aman Bhutani. "We are making progress on our key initiatives, including growing discovery and engagement of our AI-powered experience, GoDaddy Airo. We see tremendous opportunity for long-term growth as we continue to create value for our customers with innovative solutions and seamless experiences."
"We are pleased with our strong second-quarter results, demonstrating execution against our plan to drive both innovation and operational efficiency," said GoDaddy CFO Mark McCaffrey. "Our track record of profitable growth, driving compounding free cash flow and maintaining a strong balance sheet, alongside our capital allocation strategy, positions GoDaddy well to drive long-term shareholder value."
Second Quarter 2024 Business Highlights
- Total revenue of
$1.1 billion 7% year-over-year on a reported and constant currency basis and exceeding the high end of the guided range for the second quarter. - Applications and Commerce (A&C) revenue grew
15% , year-over-year, to$405.6 million 14% year-over-year, to$1.5 billion - Core Platform (Core) revenue totaled
$718.9 million 3% year-over-year. Core ARR grew2% year-over-year, to$2.3 billion - Total bookings of
$1.3 billion 11% year-over-year on a reported and constant currency basis. - Net income of
$146.3 million 76% year-over-year, representing a13% margin. - Normalized EBITDA (NEBITDA) of
$331.7 million 25% year-over-year, representing a29% margin and exceeding the second quarter NEBITDA margin guidance of28% . - Net cash provided by operating activities of
$294.8 million 49% year-over-year. - Free cash flow of
$323.4 million 35% year-over-year. - The Company continued rolling out its innovative GoDaddy Airo™ experience to its existing 20.9 million customer base. GoDaddy Airo is now available with all new and existing domain purchases in English-speaking markets, with further expansion planned into over 90 additional countries later this year.
- Launched the GoDaddy Digital Marketing suite, a new customer onboarding path providing personalized marketing tools and content on one dashboard that customers can use to build their brand, generate leads and grow their businesses, even if they do not have a website.
- The board of directors of GoDaddy Inc. unanimously elected Graham Smith as a new independent director effective June 26, 2024.
Consolidated Second Quarter Financial Highlights
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | Change | Constant | 2024 | 2023 | Change | ||||||
(in millions, except customers in thousands and ARPU in dollars) | ||||||||||||
Total Revenue | 7.3 % | 7.3 % | 7.1 % | |||||||||
Applications and commerce revenue | $ 405.6 | $ 351.7 | 15.3 % | $ 788.7 | $ 689.7 | 14.4 % | ||||||
Core platform revenue | $ 718.9 | $ 696.4 | 3.2 % | 3.6 % | ||||||||
International revenue | $ 357.1 | $ 341.1 | 4.7 % | 4.7 % | $ 710.0 | $ 681.7 | 4.2 % | |||||
Net income(1) | $ 146.3 | $ 83.1 | 76.1 % | $ 547.8 | $ 130.5 | 319.8 % | ||||||
Net income margin | 13.0 % | 7.9 % | 24.5 % | 6.3 % | ||||||||
Net cash provided by operating activities | $ 294.8 | $ 198.0 | 48.9 % | $ 592.0 | $ 468.3 | 26.4 % | ||||||
Segment EBITDA - A&C | $ 176.6 | $ 142.7 | 23.8 % | $ 338.5 | $ 275.1 | 23.0 % | ||||||
Segment EBITDA margin - A&C | 43.5 % | 40.6 % | 290bps | 42.9 % | 39.9 % | 300bps | ||||||
Segment EBITDA - Core | $ 219.5 | $ 191.0 | 14.9 % | $ 436.2 | $ 380.0 | 14.8 % | ||||||
Segment EBITDA margin - Core | 30.5 % | 27.4 % | 310bps | 30.2 % | 27.2 % | 300bps | ||||||
Non-GAAP Results(2): | ||||||||||||
NEBITDA | $ 331.7 | $ 264.6 | 25.4 % | $ 644.7 | $ 514.3 | 25.4 % | ||||||
NEBITDA Margin | 29.5 % | 25.2 % | 430bps | 28.9 % | 24.7 % | 420bps | ||||||
Unlevered free cash flow | $ 368.7 | $ 283.6 | 30.0 % | $ 727.3 | $ 587.5 | 23.8 % | ||||||
Free cash flow | $ 323.4 | $ 239.9 | 34.8 % | $ 650.8 | $ 499.1 | 30.4 % | ||||||
Operating and Business Metrics: | ||||||||||||
Total bookings | 10.6 % | 11.1 % | 10.0 % | |||||||||
Total customers at period end | 20,866 | 20,985 | (0.6) % | 20,866 | 20,985 | (0.6) % | ||||||
Average revenue per user (ARPU) | $ 210 | $ 199 | 5.5 % | $ 210 | $ 199 | 5.5 % | ||||||
Annualized recurring revenue (ARR) | 6.5 % | 6.5 % | ||||||||||
_______________________________ |
(1) Net income for the three and six months ended June 30, 2024 includes |
(2) Reconciliations of our non-GAAP results to their most directly comparable GAAP financial measures are set forth in "Reconciliation of Non-GAAP Financial Measures" below. |
Share Repurchases
Year-to-date through July 30, 2024, GoDaddy repurchased 4.1 million shares of its common stock for an aggregate purchase price of
Balance Sheet
As of June 30, 2024, total cash and cash equivalents were
Debt Refinancing
In May 2024, GoDaddy entered into an amendment to its credit agreement providing for a new
Business Outlook
For the third quarter ending September 30, 2024, GoDaddy expects total revenue in the range of
For the third quarter ending September 30, 2024, GoDaddy expects NEBITDA margin to be approximately
For the full year ending December 31, 2024, GoDaddy raised its revenue expectations to a range of
For the full year ending December 31, 2024, GoDaddy raised its unlevered free cash flow target to at least
GoDaddy's consolidated financial statements are prepared in accordance with generally accepted accounting principles in
Quarterly Earnings Webcast
GoDaddy will host a webcast to discuss second quarter 2024 results at 5:00 p.m. Eastern Time on August 1, 2024. To participate in the webcast, please preregister online at https://investors.godaddy.net/investor-relations/overview/default.aspx. The live webcast of the event, together with a slide presentation including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through GoDaddy's Investor Relations website at https://investors.godaddy.net. A transcript of pre-recorded remarks will be available on the Investor Relations website at the time of the webcast. Following the event, a recorded replay of the webcast will be available on the website.
GoDaddy uses its Investor Relations website at https://investors.godaddy.net as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, investors should monitor GoDaddy's Investor Relations website, in addition to following press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
Forward-Looking Statements
This press release 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 press release and are not guarantees of future performance. Statements in this press release involve risks, uncertainties and assumptions. If the risks or uncertainties materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to any statements regarding: our business outlook; launches of new or expansion of existing products or services, including GoDaddy Airo™, any projections of product or service availability, technology developments and innovation, customer growth, or other future events; historical results that may suggest future trends for our business; our plans, strategies or objectives with respect to future operations, partnerships and partner integrations and marketing strategy; future financial results; our ability to integrate acquisitions and achieve desired synergies and vertical integration; the expected impacts of our restructuring efforts and our debt repricing; our forecasted levels of future taxable income and ability to realize our deferred tax assets; and assumptions underlying any of the foregoing.
Actual results could differ materially from our current expectations as a result of many factors, including, but not limited to: the unpredictable nature of our rapidly evolving market; fluctuations in our financial and operating results; our rate of growth; interruptions or delays in our service or our web hosting; our dependence on payment card networks and acquiring processors; breaches of our security measures; the impact of any previous or future acquisitions or divestitures; our ability to continue to release, and gain customer acceptance of, our existing and future products and services; our ability to deploy new and evolving technologies, such as artificial intelligence, machine learning, data analytics and similar tools, in our offerings; our ability to manage our growth; our ability to hire, retain and motivate employees; the effects of competition; technological, regulatory and legal developments; intellectual property litigation; impacts of our restructuring efforts and debt repricing; macroeconomic conditions and developments in the economy, financial markets and credit markets; continued escalation of geopolitical tensions; the level of interest rates and inflationary pressures; execution of share repurchases; and our ability to remediate the identified material weakness in our internal control over financial reporting and to maintain effective internal control over financial reporting.
Additional risks and uncertainties that could affect GoDaddy's business and financial results are included in the filings we make with the SEC from time to time, including those described in "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which are available on GoDaddy's website at https://investors.godaddy.net and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that GoDaddy makes with the SEC from time to time. All forward-looking statements in this press release are based on information available to GoDaddy as of the date hereof. Except to the extent required by law, GoDaddy does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures and Other Operating and Business Metrics
In addition to our financial results prepared in accordance with GAAP, this press release includes certain non-GAAP financial measures and other operating and business metrics. We believe that these non-GAAP financial measures and other operating and business metrics are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. The non-GAAP financial measures included in this press release should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition, similarly titled measures may be calculated differently by other companies and may not be comparable. A reconciliation between each non-GAAP financial measure and its nearest GAAP equivalent is included in this press release following the financial statements. We use both GAAP and non-GAAP measures to evaluate and manage our operations.
Total bookings. Total bookings is an operating metric representing the total value of customer contracts entered into during the period, excluding refunds. We believe total bookings provides additional insight into the performance of our business and the effectiveness of our marketing efforts since we typically collect payment at the inception of a customer contract but recognize revenue ratably over the term of the contract.
Constant currency. Constant currency is calculated by translating bookings and revenue for each month in the current period using the foreign currency exchange rates for the corresponding month in the prior period, excluding any hedging gains or losses realized during the period. We believe constant currency information is useful in analyzing underlying trends in our business by eliminating the impact of fluctuations in foreign currency exchange rates and allows for period-to-period comparisons of our performance.
Normalized EBITDA (NEBITDA). NEBITDA is a supplemental measure of our operating performance used by management and investors to evaluate our business. We calculate NEBITDA as net income excluding depreciation and amortization, interest expense (net), provision or benefit for income taxes, equity-based compensation expense, acquisition-related costs, restructuring-related expenses and certain other items. We believe that the inclusion or exclusion of certain recurring and non-recurring items provides a supplementary measure of our core operating results and permits useful alternative period-over-period comparisons of our operations but should not be viewed as a substitute for comparable GAAP measures.
NEBITDA margin. NEBITDA margin is used by management as a supplemental measure of our operating performance and refers to the ratio of NEBITDA to revenue, expressed as a percentage.
Unlevered free cash flow. Unlevered free cash flow is a measure of our liquidity used by management to evaluate our business prior to the impact of our capital structure and restructuring and after purchases of property and equipment. Such liquidity can be used by us for strategic opportunities and strengthening our balance sheet. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.
Free cash flow. Free cash flow is defined as our unlevered free cash flow less interest payments for the period. We use free cash flow as a supplemental measure of our liquidity, including our ability to generate cash flow in excess of capital requirements and return cash to shareholders, though it should not be considered as an alternative to, or more meaningful than, comparable GAAP measures.
Net debt. We define net debt as total debt less cash and cash equivalents and short-term investments. Total debt consists of the current portion of long-term debt plus long-term debt and unamortized original issue discount and debt issuance costs. Our management reviews net debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage and we believe such information is useful to investors. Furthermore, certain analysts and debt rating agencies monitor our net debt as part of their assessments of our business.
Annualized recurring revenue (ARR). ARR is an operating metric defined as annualized quarterly recurring GAAP revenue, net of refunds, from new and renewed subscription-based services. ARR is exclusive of any revenue that is non-recurring, including, without limitation, domain aftermarket, domain transfers, one-time set-up or migration fees and non-recurring professional website services fees. We believe ARR helps illustrate the scale of certain of our products and facilitates comparisons to other companies in our industry.
Average revenue per user (ARPU). We calculate ARPU as total revenue during the preceding 12 month period divided by the average of the number of total customers at the beginning and end of the period. ARPU provides insight into our ability to sell additional products to customers, though the impact to date has been muted due to our continued growth in total customers.
Total customers. We define a customer as an individual or entity, each with a unique account and paid transactions in the trailing twelve months or with paid subscriptions as of the end of the period. Total customers is one way we measure the scale of our business and can be a contributing factor to our ability to increase our revenue base.
About GoDaddy
GoDaddy helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a professional website, attract customers, sell their products and services, and accept payments online and in-person. GoDaddy's easy-to-use tools help small business owners manage everything in one place and its expert guides are available to provide assistance 24/7. To learn more about the company, visit www.GoDaddy.com.
GoDaddy Inc. | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Applications and commerce | $ 405.6 | $ 351.7 | $ 788.7 | $ 689.7 | |||
Core platform | 718.9 | 696.4 | 1,444.3 | 1,394.4 | |||
Total revenue | 1,124.5 | 1,048.1 | 2,233.0 | 2,084.1 | |||
Costs and operating expenses(1) | |||||||
Cost of revenue (excluding depreciation and amortization) | 408.3 | 388.4 | 822.8 | 774.5 | |||
Technology and development | 205.9 | 219.2 | 408.8 | 434.2 | |||
Marketing and advertising | 93.2 | 89.5 | 180.7 | 181.9 | |||
Customer care | 73.3 | 77.7 | 149.7 | 154.5 | |||
General and administrative | 95.6 | 92.7 | 187.3 | 186.8 | |||
Restructuring and other | 6.9 | 17.5 | 29.3 | 69.8 | |||
Depreciation and amortization | 33.1 | 43.5 | 70.3 | 92.0 | |||
Total costs and operating expenses | 916.3 | 928.5 | 1,848.9 | 1,893.7 | |||
Operating income | 208.2 | 119.6 | 384.1 | 190.4 | |||
Interest expense | (39.5) | (45.6) | (80.8) | (91.4) | |||
Loss on debt extinguishment | (2.1) | — | (3.1) | — | |||
Other income (expense), net | 8.3 | 6.8 | 17.9 | 29.4 | |||
Income before income taxes | 174.9 | 80.8 | 318.1 | 128.4 | |||
Benefit (provision) for income taxes | (28.6) | 2.3 | 229.7 | 2.1 | |||
Net income | 146.3 | 83.1 | 547.8 | 130.5 | |||
Less: net income attributable to non-controlling interests | — | 0.2 | — | 0.3 | |||
Net income attributable to GoDaddy Inc. | $ 146.3 | $ 82.9 | $ 547.8 | $ 130.2 | |||
Net income attributable to GoDaddy Inc. per share of | |||||||
Basic | $ 1.04 | $ 0.54 | $ 3.86 | $ 0.85 | |||
Diluted | $ 1.01 | $ 0.54 | $ 3.77 | $ 0.84 | |||
Weighted-average shares of Class A common stock outstanding: | |||||||
Basic | 141,269 | 152,328 | 141,899 | 153,221 | |||
Diluted | 144,644 | 154,064 | 145,321 | 155,756 | |||
___________________________ | |||||||
(1) Costs and operating expenses include equity-based compensation expense as follows: | |||||||
Cost of revenue | $ 0.3 | $ 0.4 | $ 0.3 | $ 0.8 | |||
Technology and development | 39.3 | 42.0 | 76.8 | 81.0 | |||
Marketing and advertising | 7.9 | 7.3 | 15.2 | 13.9 | |||
Customer care | 5.7 | 6.5 | 11.5 | 11.9 | |||
General and administrative | 23.0 | 21.3 | 43.4 | 41.5 | |||
Restructuring and other | — | — | 0.8 | 2.3 | |||
Total equity-based compensation expense | $ 76.2 | $ 77.5 | $ 148.0 | $ 151.4 | |||
GoDaddy Inc. | |||
June 30, | December 31, | ||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 444.9 | $ 458.8 | |
Short-term investments | — | 40.0 | |
Accounts and other receivables | 92.9 | 76.6 | |
Registry deposits | 34.1 | 37.3 | |
Prepaid domain name registry fees | 487.2 | 466.0 | |
Prepaid expenses and other current assets | 238.1 | 177.2 | |
Total current assets | 1,297.2 | 1,255.9 | |
Property and equipment, net | 160.4 | 185.3 | |
Operating lease assets | 61.4 | 60.8 | |
Prepaid domain name registry fees, net of current portion | 220.2 | 209.0 | |
Goodwill | 3,545.0 | 3,569.3 | |
Intangible assets, net | 1,107.3 | 1,158.6 | |
Deferred tax assets | 1,234.0 | 1,020.4 | |
Other assets | 96.4 | 105.6 | |
Total assets | $ 7,721.9 | $ 7,564.9 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 94.7 | $ 148.1 | |
Accrued expenses and other current liabilities | 365.1 | 442.2 | |
Deferred revenue | 2,230.4 | 2,074.9 | |
Long-term debt | 17.0 | 17.9 | |
Total current liabilities | 2,707.2 | 2,683.1 | |
Deferred revenue, net of current portion | 866.1 | 802.4 | |
Long-term debt, net of current portion | 3,787.7 | 3,798.5 | |
Operating lease liabilities, net of current portion | 88.3 | 90.2 | |
Other long-term liabilities | 89.9 | 90.7 | |
Deferred tax liabilities | 25.7 | 37.8 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, | — | — | |
Class A common stock, | 0.1 | 0.1 | |
Class B common stock, | — | — | |
Additional paid-in capital | 2,443.9 | 2,271.6 | |
Accumulated deficit | (2,422.8) | (2,320.7) | |
Accumulated other comprehensive income | 135.8 | 111.2 | |
Total stockholders' equity | 157.0 | 62.2 | |
Total liabilities and stockholders' equity | $ 7,721.9 | $ 7,564.9 | |
GoDaddy Inc. | |||
Six Months Ended | |||
2024 | 2023 | ||
Operating activities | |||
Net income | $ 547.8 | $ 130.5 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 70.3 | 92.0 | |
Equity-based compensation expense | 148.0 | 151.4 | |
Deferred taxes | (225.1) | (12.2) | |
Loss on dispositions | 1.9 | 16.8 | |
Other | 7.1 | 5.5 | |
Changes in operating assets and liabilities, net of amounts acquired: | |||
Prepaid domain name registry fees | (32.7) | (38.6) | |
Accounts payable | (52.4) | 25.7 | |
Accrued expenses and other current liabilities | (39.3) | 3.9 | |
Deferred revenue | 225.3 | 153.3 | |
Other operating assets and liabilities | (58.9) | (60.0) | |
Net cash provided by operating activities | 592.0 | 468.3 | |
Investing activities | |||
Maturities of short-term investments | 40.0 | — | |
Purchases of intangible assets | — | (35.4) | |
Net proceeds received from dispositions | 8.1 | 12.4 | |
Purchases of property and equipment | (7.2) | (28.6) | |
Other investing activities | — | (0.4) | |
Net cash provided by (used in) investing activities | 40.9 | (52.0) | |
Financing activities | |||
Proceeds received from: | |||
Issuance of term loans | 2,752.3 | — | |
Stock option exercises | 3.9 | 4.7 | |
Issuance of Class A common stock under ESPP | 19.5 | 18.2 | |
Payments made for: | |||
Repurchases of Class A common stock(1) | (649.2) | (611.7) | |
Repayment of long-term debt | (2,762.3) | (12.6) | |
Other financing obligations | (10.4) | (6.9) | |
Net cash used in financing activities | (646.2) | (608.3) | |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | 0.6 | |
Net decrease in cash and cash equivalents | (13.9) | (191.4) | |
Cash and cash equivalents, beginning of period | 458.8 | 774.0 | |
Cash and cash equivalents, end of period | $ 444.9 | $ 582.6 | |
Reconciliation of Non-GAAP Financial Measures
The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure:
Three Months Ended | Six Months Ended | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
(in millions) | |||||||||
NEBITDA and NEBITDA Margin: | |||||||||
Net income | $ 146.3 | $ 83.1 | $ 547.8 | $ 130.5 | |||||
Depreciation and amortization | 33.1 | 43.5 | 70.3 | 92.0 | |||||
Equity-based compensation expense(1) | 76.2 | 77.5 | 147.2 | 149.1 | |||||
Interest expense, net | 34.5 | 37.4 | 69.2 | 75.4 | |||||
Acquisition-related expenses, net of reimbursements | (0.8) | 4.2 | 0.1 | 8.6 | |||||
Restructuring and other(2) | 13.8 | 21.2 | 39.8 | 60.8 | |||||
Provision (benefit) for income taxes | 28.6 | (2.3) | (229.7) | (2.1) | |||||
NEBITDA | $ 331.7 | $ 264.6 | $ 644.7 | $ 514.3 | |||||
Net income margin | 13.0 % | 7.9 % | 24.5 % | 6.3 % | |||||
NEBITDA margin | 29.5 % | 25.2 % | 28.9 % | 24.7 % | |||||
_______________________________ |
(1) The six months ended June 30, 2024 and 2023 excludes |
(2) In addition to the restructuring and other in our statements of operations, other charges included are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, adjustments to the fair value of our equity investments, expenses incurred in relation to the refinancing of our long-term debt and incremental expenses associated with certain professional services. |
June 30, 2024 | |
(in millions) | |
Net Debt: | |
Current portion of long-term debt | $ 17.0 |
Long-term debt | 3,787.7 |
Unamortized original issue discount and debt issuance costs | 61.5 |
Total debt | 3,866.2 |
Less: cash and cash equivalents | (444.9) |
Less: Short-term investments | — |
Net debt | $ 3,421.3 |
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | |||||||
Free Cash Flow and Unlevered Free Cash Flow: | |||||||
Net cash provided by operating activities | $ 294.8 | $ 198.0 | $ 592.0 | $ 468.3 | |||
Capital expenditures | (2.8) | (5.8) | (7.2) | (28.6) | |||
Cash paid for acquisition-related costs | 0.2 | 8.2 | 16.0 | 9.6 | |||
Cash paid for restructuring and other charges(1) | 31.2 | 39.5 | 50.0 | 49.8 | |||
Free cash flow | $ 323.4 | $ 239.9 | $ 650.8 | $ 499.1 | |||
Cash paid for interest on long-term debt | 45.3 | 43.7 | 76.5 | 88.4 | |||
Unlevered free cash flow | $ 368.7 | $ 283.6 | $ 727.3 | $ 587.5 | |||
_______________________________ |
(1) In addition to payments made pursuant to our restructuring activities, cash paid for restructuring and other charges includes lease-related payments associated with closed facilities, payments related to certain legal matters, incremental payments associated with professional services and third party payments incurred in relation to the refinancing of our long-term debt. For the six months ended June 30, 2023, it also includes a payment related to the termination of a revenue sharing agreement. |
Shares Outstanding
Total shares of common stock outstanding are as follows:
June 30, | |||
2024 | 2023 | ||
(in thousands) | |||
Shares Outstanding: | |||
Class A common stock | 141,455 | 148,293 | |
Class B common stock(1) | — | 307 | |
Total common stock outstanding | 141,455 | 148,600 | |
Effect of dilutive securities(2) | 3,375 | 1,429 | |
Total shares outstanding | 144,830 | 150,029 | |
_______________________________ |
(1) As of June 30, 2024, following a series of transactions undertaken to simplify our capital structure, there are no longer any Class B shares outstanding. Shares of Class B common stock were not participating securities and had no rights to share in our earnings. |
(2) Calculated using the treasury stock method, which excludes the impact of antidilutive securities. |
Constant Currency
The following table provides a reconciliation of constant currency:
June 30, 2024 | |
(in millions) | |
Constant Currency: | |
Revenue | $ 1,124.5 |
Constant currency adjustment | 0.2 |
Constant currency revenue | $ 1,124.7 |
Bookings | $ 1,261.9 |
Constant currency adjustment | 5.3 |
Constant currency bookings | $ 1,267.2 |
Source: GoDaddy Inc.
© 2024 GoDaddy Inc. All Rights Reserved.
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SOURCE GoDaddy Inc.
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