GoDaddy Q4/2022 & annual report

GoDaddy Inc. (NYSE: GDDY) today reported financial results for the fourth quarter (Q4/2022) along with fiscal 2022 earnings.

According to the press release, 2022 Revenue up 7%; Cash Provided by Operating Activities up 18%; Free Cash Flow up 13%.

Q4/2022 wasn’t as stellar: Reported earnings of $0.60 /share missed estimate of $0.62 /share by 3.23%. This is a 15.38% increase over earnings of $0.52 /share from the same period the year prior, however. Sales increased by 2.03% year over year, from $1.02 billion to $1.04 billion.

Core platform earnings, the services component of GoDaddy that includes domain registrations and renewals, the GoDaddy domain aftermarket, and the GoDaddy Registry, saw an annual increase of 4.6% year over year, but a decrease of 1.7% in the final quarter compared to the year prior.

Full Year 2022 Business Highlights

• Total revenue of $4.1 billion, up 7.2% year-over-year, and 8.4% on a constant currency basis.
• Total bookings of $4.4 billion, up 4.3% year-over-year, and 6.0% on a constant currency basis.
• Net Income of $352.9 million, up 45.3% year-over-year.
• Normalized EBITDA of $1.0 billion, up 16.1% year-over-year, representing 25% margin.
• Net cash provided by operating activities of $979.7 million, up 18.1% year-over-year.
• Free cash flow of $968.6 million, up 13.2% year-over-year.
• Unlevered free cash flow of $1.1 billion, up 14.2% year-over-year.
• Through February 1, 2023, share count reduced 10% since launch of GoDaddy’s current share buyback authorization in 2022.

Q4/2022 Business Highlights:

• Signed a meaningful partnership agreement with FIS Worldpay, the market-leading merchant services provider, to sell GoDaddy’s OmniCommerce solutions for US based small business customers and bank partners.
• Launched Managed WooCommerce Stores solution, enabling entrepreneurs to easily sell in-person and across marketplaces and social channels through one unified dashboard and without the need to download additional plugins.
• Implemented payments by default, automatically attaching GoDaddy’s premier payments platform to its domains and website building plans. GoDaddy’s goal of enabling commerce on every surface gives customers the freedom to seamlessly transact as soon as their website or domain is created.
• Annualized recurring revenue (ARR) for applications & commerce grew 9% year-over-year to $1.3 billion in the fourth quarter.
• ARR from GoDaddy’s Create and Grow group of products, which includes Websites + Marketing, Managed WordPress, Sellbrite, and GoDaddy Studios, surpassed $445 million, growing 8% year-over-year in the fourth quarter of 2022.
• Drove strong growth in its Commerce offerings with gross merchandise volume of $28 billion, up 10% year-over-year.
• Gross payments volume, or GPV, from GoDaddy’s commerce offerings has already grown to an impressive $760 million.
• ARR for Core Platform grew 1% year-over-year to $2.3 billion in the fourth quarter.

Business Outlook

For the first quarter ending March 31, 2023, GoDaddy expects total revenue in the range of $1.030 billion to $1.050 billion, representing year-over-year growth of 4% at the midpoint, versus the same period in 2021. 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.

For the first quarter ending March 31, 2023, GoDaddy expects Normalized EBITDA margin to be in the range of 24% to 25%. For the full year ending December 31, 2023, GoDaddy expects Normalized EBITDA margin of approximately 26%.

For the full year ending December 31, 2023, GoDaddy expects unlevered free cash flow of approximately $1.2 billion, representing growth of 9%, year-over-year, versus the $1.1 billion of unlevered free cash flow generated in 2022. GoDaddy expects free cash flow of approximately $1.0 billion, representing growth of 3%, year-over-year, versus the $968.6 million of free cash flow generated in 2022.

Download the presentation as a PDF.

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