GoDaddy released its Q1/2024 financials earlier today, beating EPS estimates by $0.03: Actual EPS of $0.99 vs. estimated of $0.96. GoDaddy stock (GDDY) rose afterhours.
Financial highlights:
- Total revenue: $1.1 billion, up 7% year-over-year on both reported and constant currency basis.
- Net income: $401.5 million, inclusive of non-routine items, up 747% year-over-year, with a 36% margin.
- Net cash provided by operating activities: $297.2 million, up 10% year-over-year.
- Core Platform (Core) revenue: $725.4 million, growing 4% year-over-year. Core ARR: $2.3 billion, up 3% year-over-year.
- Applications and Commerce (A&C) revenue: $383.1 million, up 13% year-over-year. A&C ARR: $1.5 billion, up 13% year-over-year.
“We are off to a great start in 2024, and we are excited to build on this momentum as we execute on our mission of empowering entrepreneurs everywhere and making opportunity more inclusive for all,” said GoDaddy CEO Aman Bhutani, adding: “With a dedicated team and focus on our key initiatives and innovation, we are propelling profitable growth that maximizes free cash flow as we deliver truly magical experiences for our customers.”
GoDaddy laid off approximately 180 employees during Q1/2024 to lower its operating costs, all while its domain aftermarket performed better than anticipated.
In this presentation, GoDaddy has been touting its AI-driven GoDaddy Airo as a must-have tool for small businesses.
Balance Sheet: As of March 31, 2024, total cash and cash equivalents were $664.0 million, total debt was $3.9 billion and net debt was $3.2 billion.
Business Outlook
For the second quarter ending June 30, 2024, GoDaddy expects total revenue in the range of $1.10 billion to $1.12 billion, representing year-over-year growth of 6% at the midpoint, versus the same period in 2023. Within total revenue, GoDaddy expects second quarter A&C revenue growth in the low- to mid-teens and Core revenue growth in the low single digits.
For the second quarter ending June 30, 2024, GoDaddy expects NEBITDA margin to be approximately 28%.
For the full year 2024, GoDaddy raised its revenue expectations to a range of $4.50 billion to $4.56 billion, representing year-over-year growth of 6.5% 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 2024, GoDaddy expects unlevered free cash flow of at least $1.4 billion, representing growth of 12%, year-over-year, versus $1.3 billion of unlevered free cash flow generated in 2023. GoDaddy expects free cash flow of at least $1.2 billion, representing growth of 11%, 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.
You can view the full presentation for Q1/2024 here.
