GoDaddy Inc. (NYSE: GDDY) today reported financial results for the first quarter (Q1/2023) that ended March 31, 2023. It marks the company’s return to normalcy with more than $1 billion of annualized GPV in the first quarter.
“GoDaddy had a strong first quarter. We made progress towards returning to double-digit revenue growth and our Applications and Commerce segment exceeded our growth targets on strong attach to commerce from new and existing customers,” said GoDaddy CFO Mark McCaffrey. “We also continue to execute our three-year plan to expand our operating margins and deliver on our free cash flow per share targets.”
With regards to quarterly earnings, GoDaddy missed the estimate of $0.50 per share, delivering $0.30 per share or 40% lower than expected. On the other hand, the company reported quarterly sales of $1.04 billion meeting the estimate; this is a 3.29% increase over sales of $1 billion year to year.
Business outlook:
For the second quarter ending June 30, 2023, GoDaddy is targeting total revenue in the range of $1.045 billion to $1.065 billion, representing year-over-year growth of 4% at the midpoint, versus the same period in 2022. For the full year ending December 31, 2023, GoDaddy is targeting total revenue in the range of $4.250 billion to $4.325 billion, representing year-over-year growth of 5% at the midpoint, versus the $4.09 billion of revenue generated for the full year ended December 31, 2022.
Business Highlights:
- Gross payments volume (GPV) from GoDaddy’s commerce offerings continued its growth surpassing $1 billion of annualized GPV in the first quarter.
- Launched Apple’s Tap-to-Pay capability in the GoDaddy app, lowering the barrier for millions of small businesses to start accepting in-person, contactless payments with only an iPhone in a seamless, low-friction sign-up experience.
- Applications and commerce revenue grew to $338 million, up 12% with annualized recurring revenue (ARR) from Create + Grow products up 10%.
- ARR for applications and commerce grew to $1.3 billion, up 9% year-over-year.
- ARR for core platform grew to $2.2 billion, up 1% year-over-year, in the first quarter.
- Gross merchandise volume (GMV) of $28 billion, up 18% year-over-year, in the first quarter.
- Implemented new features to Websites + Marketing offering including a bookings feature for multi-day events, Google and Apple Pay for full payment and deposit, and additional configurations for Pay Buttons using Pay Links from different businesses and store locations.
- Opened “List For Sale” functionality to registrar partners allowing their customers to list domain names within GoDaddy’s aftermarket.
- Released the Small Business Generative Artificial Intelligence (AI) Prompt Library, a growing catalog of ready-made prompts, available via the GoDaddy Blog, for small businesses to have the tools to start benefiting from generative AI.
- In April, CEO Aman Bhutani signed the CEO Action for Diversity & Inclusion pledge, joining a coalition of more than 2,400 CEOs across the U.S. who have committed to advancing diversity, equity and inclusion in the workplace.
- Announced in April GoDaddy’s significant drives towards ESG goals by reducing emissions by 35% from a 2019 baseline, providing nearly 10,000 learning engagements for entrepreneurs, and achieving 86% participation in annual employee engagement survey.
View the Q1/2023 report as a PDF presentation.
