GoDaddy Reports Third Quarter 2024 Financial Results
GoDaddy (NYSE: GDDY) reported its Q3 2024 financial results, showcasing a robust performance. Total revenue rose 7% YoY to $1.15 billion, with Applications and Commerce (A&C) revenue increasing 16% to $423.1 million. Core Platform revenue grew 3% to $724.5 million. Net income surged 45% to $190.5 million, and normalized EBITDA climbed 24% to $366.5 million. Free cash flow increased 29% to $362.7 million. The company repurchased 5.2 million shares for $668.1 million YTD. For FY 2024, GoDaddy raised its revenue guidance to $4.545-$4.565 billion and NEBITDA margin to approximately 30%. Q4 2024 revenue is expected to be $1.165-$1.185 billion. The company will present its enhanced GoDaddy Airo AI experience at an investor event in December.
GoDaddy (NYSE: GDDY) ha riportato i risultati finanziari per il terzo trimestre del 2024, evidenziando una performance robusta. Il fatturato totale è aumentato del 7% rispetto all’anno precedente, raggiungendo 1,15 miliardi di dollari, con un aumento del 16% delle entrate da Applicazioni e Commercio (A&C), che sono arrivate a 423,1 milioni di dollari. Le entrate della Piattaforma Principale sono cresciute del 3% a 724,5 milioni di dollari. L'utile netto è aumentato del 45% a 190,5 milioni di dollari, e l'EBITDA normalizzato è salito del 24% a 366,5 milioni di dollari. Il flusso di cassa libero è aumentato del 29% a 362,7 milioni di dollari. L'azienda ha riacquistato 5,2 milioni di azioni per 668,1 milioni di dollari fino ad oggi. Per l'anno fiscale 2024, GoDaddy ha alzato le previsioni di fatturato a 4,545-4,565 miliardi di dollari e il margine NEBITDA a circa il 30%. Si prevede che il fatturato del quarto trimestre del 2024 sarà compreso tra 1,165 e 1,185 miliardi di dollari. L'azienda presenterà la sua esperienza migliorata di GoDaddy Airo AI in un evento per investitori a dicembre.
GoDaddy (NYSE: GDDY) reportó sus resultados financieros del tercer trimestre de 2024, mostrando un desempeño robusto. Los ingresos totales aumentaron un 7% interanual, alcanzando 1.15 mil millones de dólares, con un incremento del 16% en los ingresos de Aplicaciones y Comercio (A&C), que se elevaron a 423.1 millones de dólares. Los ingresos de la Plataforma Principal crecieron un 3%, llegando a 724.5 millones de dólares. El ingreso neto se disparó un 45% a 190.5 millones de dólares, y el EBITDA normalizado aumentó un 24% a 366.5 millones de dólares. El flujo de caja libre incrementó un 29% hasta 362.7 millones de dólares. La compañía recompró 5.2 millones de acciones por 668.1 millones de dólares hasta la fecha. Para el año fiscal 2024, GoDaddy elevó su guía de ingresos a entre 4.545 y 4.565 mil millones de dólares y el margen de NEBITDA aproximadamente al 30%. Se espera que los ingresos del cuarto trimestre de 2024 sean de entre 1.165 y 1.185 mil millones de dólares. La empresa presentará su experiencia mejorada de GoDaddy Airo AI en un evento para inversionistas en diciembre.
고대디(뉴욕증권거래소: GDDY)는 2024년 3분기 재무 결과를 발표하며 견고한 실적을 보여주었습니다. 총 수익은 전년 대비 7% 증가하여 11억 5천만 달러에 도달했으며, 애플리케이션 및 상거래(A&C) 수익은 16% 증가하여 4억 2천 3백 10만 달러에 달했습니다. 핵심 플랫폼 수익은 3% 증가하여 7억 2천 4백 50만 달러에 도달했습니다. 순이익은 45% 급증하여 1억 9천 5백만 달러에 이르렀고, 정상화된 EBITDA는 24% 증가하여 3억 6천 6백 50만 달러로 올라갔습니다. 자유 현금 흐름은 29% 증가하여 3억 6천 2백 70만 달러에 도달했습니다. 이 회사는 현재까지 5.2백만 주를 6억 6천 8백 10만 달러에 재매입했습니다. 2024 회계연도에 대해 고대디는 수익 전망을 45억 4천 5백만 - 45억 6천 5백만 달러로 상향 조정했으며 NEBITDA 마진을 약 30%로 예상하고 있습니다. 2024년 4분기 수익은 11억 6천 5백만 - 11억 8천 5백만 달러가 될 것으로 예상됩니다. 이 회사는 12월 투자자 행사에서 개선된 고대디 에어로 AI 경험을 발표할 예정입니다.
GoDaddy (NYSE: GDDY) a annoncé ses résultats financiers du troisième trimestre 2024, mettant en avant une performance solide. Le chiffre d'affaires total a augmenté de 7 % par rapport à l'année précédente pour atteindre 1,15 milliard de dollars, avec des revenus d'applications et de commerce (A&C) en hausse de 16 % à 423,1 millions de dollars. Les revenus de la plateforme principale ont crû de 3 % pour s'établir à 724,5 millions de dollars. Le revenu net a bondi de 45 % pour atteindre 190,5 millions de dollars, et l'EBITDA normalisé a augmenté de 24 % à 366,5 millions de dollars. Le flux de trésorerie libre a progressé de 29 % pour atteindre 362,7 millions de dollars. L'entreprise a racheté 5,2 millions d'actions pour 668,1 millions de dollars à ce jour. Pour l'exercice 2024, GoDaddy a relevé ses prévisions de revenus à 4,545-4,565 milliards de dollars et sa marge NEBITDA à environ 30 %. Le chiffre d'affaires du quatrième trimestre 2024 devrait être compris entre 1,165 et 1,185 milliard de dollars. L'entreprise présentera son expérience GoDaddy Airo AI améliorée lors d'un événement pour investisseurs en décembre.
GoDaddy (NYSE: GDDY) hat seine Finanzergebnisse für das 3. Quartal 2024 veröffentlicht und eine starke Leistung gezeigt. Der Gesamtumsatz stieg im Jahresvergleich um 7% auf 1,15 Milliarden Dollar, während die Einnahmen aus Anwendungen und Handel (A&C) um 16% auf 423,1 Millionen Dollar zunahmen. Der Umsatz der Kernplattform wuchs um 3% auf 724,5 Millionen Dollar. Der Nettogewinn stieg um 45% auf 190,5 Millionen Dollar, und das normalisierte EBITDA kletterte um 24% auf 366,5 Millionen Dollar. Der freie Cashflow erhöhte sich um 29% auf 362,7 Millionen Dollar. Das Unternehmen hat bisher 5,2 Millionen Aktien für 668,1 Millionen Dollar zurückgekauft. Für das Geschäftsjahr 2024 hat GoDaddy seine Umsatzprognose auf 4,545-4,565 Milliarden Dollar und die NEBITDA-Marge auf etwa 30% angehoben. Der Umsatz im 4. Quartal 2024 wird voraussichtlich zwischen 1,165 und 1,185 Milliarden Dollar liegen. Das Unternehmen wird seine verbesserte GoDaddy Airo AI-Erfahrung im Dezember bei einer Investorenveranstaltung präsentieren.
- Total revenue increased by 7% YoY to $1.15 billion.
- Applications and Commerce (A&C) revenue rose by 16% to $423.1 million.
- Net income surged by 45% to $190.5 million.
- Normalized EBITDA increased by 24% to $366.5 million.
- Free cash flow grew by 29% to $362.7 million.
- Raised FY 2024 revenue guidance to $4.545-$4.565 billion.
- Share repurchases of 5.2 million shares for $668.1 million YTD.
- Total customers decreased by 1.4% YoY to 20,725.
Insights
GoDaddy delivered strong Q3 results with notable financial improvements across key metrics. Total revenue grew 7.3% to
The company's profitability metrics are particularly strong, with NEBITDA margin expanding 420 basis points to
The raised full-year guidance, including revenue of
The strategic focus on AI integration through GoDaddy Airo™, now available in over 180 countries, positions the company well in the evolving digital services landscape. The
Despite a slight decline in total customers (
Company builds on its track record of profitable growth, strong cash generation and share repurchases
"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 innovative solutions and look forward to sharing the enhanced capabilities of the GoDaddy Airo experience at our Investor Dinner in December."
"Our third quarter results demonstrated continued progress delivering durable top-line growth, expanded profitability and strong cash generation," said GoDaddy CFO Mark McCaffrey. "Our execution, combined with our strong balance sheet and disciplined capital allocation framework, powers our ability to create enduring value for our shareholders."
Third Quarter 2024 Business and Financial Highlights
- Total revenue of
$1.15 billion 7% year-over-year on a reported and constant currency basis. - Applications and Commerce (A&C) revenue grew
16% , year-over-year, to$423.1 million 15% year-over-year, to$1.6 billion - Core Platform (Core) revenue totaled
$724.5 million 3% year-over-year. Core ARR grew4% year-over-year, to$2.4 billion - Total bookings of
$1.2 billion 9% year-over-year on a reported and constant currency basis. - Net income of
$190.5 million 45% year-over-year, representing a17% margin. - Normalized EBITDA (NEBITDA) of
$366.5 million 24% year-over-year, representing a32% margin. - Net cash provided by operating activities of
$355.2 million 26% year-over-year. - Free cash flow of
$362.7 million 29% year-over-year. - The company continued rolling out its innovative GoDaddy Airo™ AI-powered experience, now available in over 180 countries globally. Discovery and engagement continue to build positive momentum as we focus on optimizing monetization pathways.
Consolidated Third Quarter Financial Highlights
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | Change | Constant | 2024 | 2023 | Change | ||||||
(in millions, except customers in thousands and ARPU in dollars) | ||||||||||||
Total Revenue | 7.3 % | 7.3 % | 7.2 % | |||||||||
Applications and commerce revenue | $ 423.1 | $ 363.3 | 16.5 % | 15.1 % | ||||||||
Core platform revenue | $ 724.5 | $ 706.4 | 2.6 % | 3.2 % | ||||||||
International revenue | $ 369.4 | $ 345.5 | 6.9 % | 6.9 % | 5.1 % | |||||||
Net income(1) | $ 190.5 | $ 131.0 | 45.4 % | $ 738.3 | $ 261.5 | 182.3 % | ||||||
Net income margin | 16.6 % | 12.2 % | 21.8 % | 8.3 % | ||||||||
Net cash provided by operating activities | $ 355.2 | $ 281.6 | 26.1 % | $ 947.2 | $ 749.9 | 26.3 % | ||||||
Segment EBITDA - A&C | $ 194.6 | $ 154.3 | 26.1 % | $ 533.1 | $ 429.4 | 24.1 % | ||||||
Segment EBITDA margin - A&C | 46.0 % | 42.5 % | 350bps | 44.0 % | 40.8 % | 320bps | ||||||
Segment EBITDA - Core | $ 239.0 | $ 208.6 | 14.6 % | $ 675.2 | $ 588.6 | 14.7 % | ||||||
Segment EBITDA margin - Core | 33.0 % | 29.5 % | 350bps | 31.1 % | 28.0 % | 310bps | ||||||
Non-GAAP Results(2): | ||||||||||||
NEBITDA | $ 366.5 | $ 296.0 | 23.8 % | $ 810.3 | 24.8 % | |||||||
NEBITDA Margin | 31.9 % | 27.7 % | 420bps | 29.9 % | 25.7 % | 420bps | ||||||
Unlevered free cash flow | $ 399.4 | $ 320.1 | 24.8 % | $ 907.6 | 24.1 % | |||||||
Free cash flow | $ 362.7 | $ 280.2 | 29.4 % | $ 779.3 | 30.1 % | |||||||
Operating and Business Metrics: | ||||||||||||
Total bookings | 9.0 % | 9.4 % | 9.7 % | |||||||||
Total customers at period end | 20,725 | 21,025 | (1.4) % | 20,725 | 21,025 | (1.4) % | ||||||
Average revenue per user (ARPU) | $ 215 | $ 200 | 7.5 % | $ 215 | $ 200 | 7.5 % | ||||||
Annualized recurring revenue (ARR) | 8.1 % | 8.1 % | ||||||||||
_______________________________ |
(1) Net income for the three and nine months ended September 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 October 28, 2024, GoDaddy repurchased 5.2 million shares of its common stock for an aggregate purchase price of
Balance Sheet
As of September 30, 2024, total cash and cash equivalents were
Business Outlook
For the full year ending December 31, 2024, GoDaddy raised its revenue expectations to a range of
For the fourth quarter ending December 31, 2024, GoDaddy expects total revenue in the range of
For the fourth quarter ending December 31, 2024, GoDaddy expects NEBITDA margin to be approximately
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
Upcoming Investor Event
GoDaddy plans to demonstrate the expanded capabilities and features of its Airo experience, as well as share more on its innovation and execution, at its Investor Dinner in
Quarterly Earnings Webcast
GoDaddy will host a webcast to discuss third quarter 2024 results at 5:00 p.m. Eastern Time on October 30, 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 achieve desired synergies and vertical integration; the expected impacts of our restructuring efforts; 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; cyberattacks or breaches of our security measures; the impact of any previous or future acquisitions or divestitures; our ability to innovate and 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; litigation and government inquiries; privacy, legislative and regulatory concerns or developments; impacts of our restructuring efforts; 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 June 30, 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 June 30, 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. NEBITDA 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 our 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 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. Consolidated Statements of Operations (unaudited) (In millions, except shares in thousands and per share amounts) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Applications and commerce | $ 423.1 | $ 363.3 | $ 1,211.8 | $ 1,053.0 | |||
Core platform | 724.5 | 706.4 | 2,168.8 | 2,100.8 | |||
Total revenue | 1,147.6 | 1,069.7 | 3,380.6 | 3,153.8 | |||
Costs and operating expenses(1) | |||||||
Cost of revenue (excluding depreciation and amortization) | 407.4 | 396.9 | 1,230.2 | 1,171.4 | |||
Technology and development | 205.1 | 201.6 | 613.9 | 635.8 | |||
Marketing and advertising | 84.4 | 86.4 | 265.1 | 268.3 | |||
Customer care | 68.9 | 75.7 | 218.6 | 230.2 | |||
General and administrative | 94.8 | 91.6 | 282.1 | 278.4 | |||
Restructuring and other | 0.4 | 9.8 | 29.7 | 79.6 | |||
Depreciation and amortization | 32.8 | 40.6 | 103.1 | 132.6 | |||
Total costs and operating expenses | 893.8 | 902.6 | 2,742.7 | 2,796.3 | |||
Operating income | 253.8 | 167.1 | 637.9 | 357.5 | |||
Interest expense | (39.4) | (44.0) | (120.2) | (135.4) | |||
Loss on debt extinguishment | — | (1.5) | (3.1) | (1.5) | |||
Other income (expense), net | 6.6 | 6.3 | 24.5 | 35.7 | |||
Income before income taxes | 221.0 | 127.9 | 539.1 | 256.3 | |||
Benefit (provision) for income taxes | (30.5) | 3.1 | 199.2 | 5.2 | |||
Net income | 190.5 | 131.0 | 738.3 | 261.5 | |||
Less: net income attributable to non-controlling interests | — | 0.3 | — | 0.6 | |||
Net income attributable to GoDaddy Inc. | $ 190.5 | $ 130.7 | $ 738.3 | $ 260.9 | |||
Net income attributable to GoDaddy Inc. per share of Class A common stock: | |||||||
Basic | $ 1.36 | $ 0.90 | $ 5.22 | $ 1.73 | |||
Diluted | $ 1.32 | $ 0.89 | $ 5.09 | $ 1.71 | |||
Weighted-average shares of Class A common stock outstanding: | |||||||
Basic | 140,523 | 145,484 | 141,437 | 150,614 | |||
Diluted | 144,138 | 147,291 | 145,179 | 153,303 | |||
___________________________ | |||||||
(1) Costs and operating expenses include equity-based compensation expense as follows: | |||||||
Cost of revenue | $ 0.3 | $ 0.3 | $ 0.6 | $ 1.1 | |||
Technology and development | 38.6 | 42.2 | 115.4 | 123.2 | |||
Marketing and advertising | 7.7 | 7.1 | 22.9 | 21.0 | |||
Customer care | 4.9 | 6.1 | 16.4 | 18.0 | |||
General and administrative | 22.9 | 20.5 | 66.3 | 62.0 | |||
Restructuring and other | — | — | 0.8 | 2.3 | |||
Total equity-based compensation expense | $ 74.4 | $ 76.2 | $ 222.4 | $ 227.6 | |||
GoDaddy Inc. Consolidated Balance Sheets (unaudited) (In millions, except per share amounts) | |||
September 30, | December 31, | ||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 767.1 | $ 458.8 | |
Short-term investments | — | 40.0 | |
Accounts and other receivables | 90.7 | 76.6 | |
Registry deposits | 42.3 | 37.3 | |
Prepaid domain name registry fees | 490.3 | 466.0 | |
Prepaid expenses and other current assets | 163.8 | 177.2 | |
Total current assets | 1,554.2 | 1,255.9 | |
Property and equipment, net | 155.8 | 185.3 | |
Operating lease assets | 56.4 | 60.8 | |
Prepaid domain name registry fees, net of current portion | 225.7 | 209.0 | |
Goodwill | 3,594.0 | 3,569.3 | |
Intangible assets, net | 1,091.2 | 1,158.6 | |
Deferred tax assets | 1,219.0 | 1,020.4 | |
Other assets | 100.9 | 105.6 | |
Total assets | $ 7,997.2 | $ 7,564.9 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 73.7 | $ 148.1 | |
Accrued expenses and other current liabilities | 438.2 | 442.2 | |
Deferred revenue | 2,256.1 | 2,074.9 | |
Long-term debt | 16.5 | 17.9 | |
Total current liabilities | 2,784.5 | 2,683.1 | |
Deferred revenue, net of current portion | 881.3 | 802.4 | |
Long-term debt, net of current portion | 3,783.6 | 3,798.5 | |
Operating lease liabilities, net of current portion | 83.5 | 90.2 | |
Other long-term liabilities | 84.4 | 90.7 | |
Deferred tax liabilities | 23.2 | 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 | 2,519.0 | 2,271.6 | |
Accumulated deficit | (2,252.6) | (2,320.7) | |
Accumulated other comprehensive income | 90.2 | 111.2 | |
Total stockholders' equity | 356.7 | 62.2 | |
Total liabilities and stockholders' equity | $ 7,997.2 | $ 7,564.9 | |
GoDaddy Inc. Consolidated Statements of Cash Flows (unaudited) (In millions) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Operating activities | |||
Net income | $ 738.3 | $ 261.5 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 103.1 | 132.6 | |
Equity-based compensation expense | 222.4 | 227.6 | |
(Gain) loss on derivative instruments | 6.7 | (9.2) | |
Deferred taxes | (213.7) | (19.4) | |
Loss on dispositions | 1.9 | 16.8 | |
Other | 29.7 | 37.4 | |
Changes in operating assets and liabilities, net of amounts acquired: | |||
Prepaid domain name registry fees | (40.3) | (47.3) | |
Accounts payable | (73.9) | 6.2 | |
Accrued expenses and other current liabilities | (15.7) | 45.2 | |
Deferred revenue | 262.3 | 173.4 | |
Other operating assets and liabilities | (73.6) | (74.9) | |
Net cash provided by operating activities | 947.2 | 749.9 | |
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 | (12.2) | (38.0) | |
Other investing activities | — | (0.4) | |
Net cash provided by (used in) investing activities | 35.9 | (61.4) | |
Financing activities | |||
Proceeds received from: | |||
Issuance of term loans | 2,752.3 | 1,759.9 | |
Stock option exercises | 4.4 | 9.6 | |
Issuance of Class A common stock under ESPP | 19.5 | 18.2 | |
Payments made for: | |||
Repurchases of Class A common stock | (668.1) | (1,133.2) | |
Repayment of long-term debt | (2,768.4) | (1,780.0) | |
Other financing obligations | (15.6) | (7.8) | |
Net cash used in financing activities | (675.9) | (1,133.3) | |
Effect of exchange rate changes on cash and cash equivalents | 1.1 | — | |
Net increase (decrease) in cash and cash equivalents | 308.3 | (444.8) | |
Cash and cash equivalents, beginning of period | 458.8 | 774.0 | |
Cash and cash equivalents, end of period | $ 767.1 | $ 329.2 | |
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 September 30, | Nine Months Ended September 30, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
(in millions) | |||||||||
NEBITDA and NEBITDA Margin: | |||||||||
Net income | $ 190.5 | $ 131.0 | $ 738.3 | $ 261.5 | |||||
Depreciation and amortization | 32.8 | 40.6 | 103.1 | 132.6 | |||||
Equity-based compensation expense(1) | 74.4 | 76.2 | 221.6 | 225.3 | |||||
Interest expense, net | 33.2 | 39.8 | 102.4 | 115.2 | |||||
Acquisition-related expenses, net of reimbursements(2) | 0.1 | (1.4) | 0.2 | 7.2 | |||||
Restructuring and other(3) | 5.0 | 12.9 | 44.8 | 73.7 | |||||
Provision (benefit) for income taxes | 30.5 | (3.1) | (199.2) | (5.2) | |||||
NEBITDA | $ 366.5 | $ 296.0 | $ 1,011.2 | $ 810.3 | |||||
Net income margin | 16.6 % | 12.2 % | 21.8 % | 8.3 % | |||||
NEBITDA margin | 31.9 % | 27.7 % | 29.9 % | 25.7 % | |||||
_______________________________ | |
(1) | The nine months ended September 30, 2024 and 2023 excludes |
(2) | The three and nine months ended September 30, 2023 include an adjustment of |
(3) | 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. |
September 30, | |
(in millions) | |
Net Debt: | |
Current portion of long-term debt | $ 16.5 |
Long-term debt | 3,783.6 |
Unamortized original issue discount and debt issuance costs | 59.9 |
Total debt | 3,860.0 |
Less: cash and cash equivalents | (767.1) |
Less: Short-term investments | — |
Net debt | $ 3,092.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | |||||||
Free Cash Flow and Unlevered Free Cash Flow: | |||||||
Net cash provided by operating activities | $ 355.2 | $ 281.6 | $ 947.2 | $ 749.9 | |||
Capital expenditures | (5.0) | (9.4) | (12.2) | (38.0) | |||
Cash paid for acquisition-related costs | 0.1 | 0.8 | 16.1 | 10.4 | |||
Cash paid for restructuring and other charges(1) | 12.4 | 7.2 | 62.4 | 57.0 | |||
Free cash flow | $ 362.7 | $ 280.2 | $ 1,013.5 | $ 779.3 | |||
Cash paid for interest on long-term debt | 36.7 | 39.9 | 113.2 | 128.3 | |||
Unlevered free cash flow | $ 399.4 | $ 320.1 | $ 1,126.7 | $ 907.6 | |||
_______________________________ | |
(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 nine months ended September 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:
September 30, | |||
2024 | 2023 | ||
(in thousands) | |||
Shares Outstanding: | |||
Class A common stock | 140,349 | 141,989 | |
Class B common stock(1) | — | 307 | |
Total common stock outstanding | 140,349 | 142,296 | |
Effect of dilutive securities(2) | 3,615 | 1,500 | |
Total shares outstanding | 143,964 | 143,796 | |
_______________________________ | |
(1) | As of September 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:
September 30, | |
(in millions) | |
Constant Currency: | |
Revenue | $ 1,147.6 |
Constant currency adjustment | 0.2 |
Constant currency revenue | $ 1,147.8 |
Bookings | $ 1,241.7 |
Constant currency adjustment | 4.1 |
Constant currency bookings | $ 1,245.8 |
Source: GoDaddy Inc.
© 2024 GoDaddy Inc. All Rights Reserved.
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