Building on its track record of profitable
growth, strong cash generation and share repurchases
TEMPE,
Ariz., Aug. 1, 2024 /PRNewswire/ -- GoDaddy Inc.
(NYSE: GDDY) today reported financial results for the second
quarter that ended June 30, 2024.
"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, up
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.
Annualized recurring revenue (ARR) for A&C grew 14%
year-over-year, to $1.5 billion.
- Core Platform (Core) revenue totaled $718.9 million, growing 3% year-over-year. Core
ARR grew 2% year-over-year, to $2.3
billion.
- Total bookings of $1.3 billion,
up 11% year-over-year on a reported and constant currency
basis.
- Net income of $146.3 million, up
76% year-over-year, representing a 13% margin.
- Normalized EBITDA (NEBITDA) of $331.7
million, up 25% year-over-year, representing a 29% margin
and exceeding the second quarter NEBITDA margin guidance of
28%.
- Net cash provided by operating activities of $294.8 million, up 49% year-over-year.
- Free cash flow of $323.4 million,
up 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
Currency
|
|
2024
|
|
2023
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
customers in thousands and ARPU in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
$ 1,124.5
|
|
$ 1,048.1
|
|
7.3 %
|
7.3 %
|
|
$ 2,233.0
|
|
$ 2,084.1
|
|
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 %
|
|
|
$ 1,444.3
|
|
$ 1,394.4
|
|
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
|
$ 1,261.9
|
|
$ 1,141.1
|
|
10.6 %
|
11.1 %
|
|
$ 2,574.5
|
|
$ 2,340.3
|
|
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)
|
$ 3,853.4
|
|
$ 3,619.6
|
|
6.5 %
|
|
|
$ 3,853.4
|
|
$ 3,619.6
|
|
6.5 %
|
|
_______________________________
|
|
(1) Net income for the
three and six months ended June 30, 2024 includes $6.9 million
and $29.3 million, respectively, in restructuring and other
charges. In addition, the six months ended June 30, 2024 includes a
non-routine, non-cash benefit to income taxes of
$267.4 million related to the conversion of our Desert Newco,
LLC subsidiary from a partnership to a disregarded entity for U.S.
income tax purposes.
|
|
(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 $520.8 million, with an average price per share
of $126.35. Cumulatively, these
repurchases represent an approximate 23% reduction in fully diluted
shares from those outstanding at the January
2022 inception of the current $4.0
billion buyback authorization.
Balance Sheet
As of June 30, 2024, total cash and cash equivalents were
$444.9 million, total debt was
$3.9 billion and net debt was
$3.4 billion.
Debt Refinancing
In May 2024, GoDaddy entered into
an amendment to its credit agreement providing for a new
$1.0 billion tranche of term loans,
extending the maturity of certain term loans to 2031 and securing a
25 basis point reduction on the refinanced debt. In addition, the
proceeds were used to repay a portion of its existing term loans
maturing in 2029. Cumulatively, this transaction and other
repricings to date since 2023 are expected to reduce annual cash
interest expense by approximately $25.0
million.
Business Outlook
For the third quarter ending September
30, 2024, GoDaddy expects total revenue in the range of
$1.13 billion to $1.15 billion, representing year-over-year growth
of 7% at the midpoint, versus the same period in 2023. Within total
revenue, GoDaddy expects third quarter A&C revenue growth in
the mid-teens and Core revenue growth in the low single digits.
For the third quarter ending September
30, 2024, GoDaddy expects NEBITDA margin to be approximately
29%.
For the full year ending December
31, 2024, GoDaddy raised its revenue expectations to a
range of $4.525 billion to
$4.565 billion, representing
year-over-year growth of 7% at the midpoint. GoDaddy expects
full-year NEBITDA margin of approximately 29%, with a fourth
quarter Normalized EBITDA margin of approximately 31%.
For the full year ending December 31,
2024, GoDaddy raised its unlevered free cash flow target to
at least $1.45 billion, representing
growth of 16%, year-over-year, versus $1.3
billion of unlevered free cash flow generated in 2023.
Additionally, GoDaddy raised its free cash flow target to at least
$1.3 billion, representing growth of
20%, year-over-year, versus the $1.1
billion of free cash flow generated in 2023.
GoDaddy's consolidated financial statements are prepared in
accordance with generally accepted accounting principles in
the United States (GAAP). GoDaddy
does not provide reconciliations from non-GAAP guidance to GAAP
equivalents because projections of changes in individual balance
sheet amounts are not possible without unreasonable effort and
presentation of such reconciliations would imply an inappropriate
degree of precision. GoDaddy's reported results provide
reconciliations of non-GAAP financial measures to their nearest
GAAP equivalents.
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.
Consolidated Statements of Operations
(unaudited)
(In millions, except shares in thousands
and per share amounts)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
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
Class A common stock:
|
|
|
|
|
|
|
|
|
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.
Consolidated Balance Sheets
(unaudited)
(In millions, except per share
amounts)
|
|
|
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,
$0.001 par value
|
—
|
|
—
|
|
Class A common stock,
$0.001 par value
|
0.1
|
|
0.1
|
|
Class B common stock,
$0.001 par value
|
—
|
|
—
|
|
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.
Consolidated Statements of Cash Flows (unaudited)
(In millions)
|
|
|
Six Months
Ended
June 30,
|
|
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
June 30,
|
|
Six Months
Ended
June 30,
|
|
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 $0.8 million and $2.3
million, respectively, of equity-based compensation expense
associated with our restructuring activities, which is included
within restructuring and other.
|
|
(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
June 30,
|
|
Six Months
Ended
June 30,
|
|
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.