GoDaddy: Strong Q4/2023 and full year 2023 results

On February 13, 2024, in Tempe, Arizona, GoDaddy reported its financial results for the fourth quarter and full year ending December 31, 2023.

In Q4 2023, GoDaddy Inc. experienced a 13% increase in Applications & Commerce revenue. The company achieved a Q4 net income margin of 103%, which includes non-routine items, and a Q4 Normalized EBITDA margin exceeding 29%. Operating Activities provided a 43% boost in cash flow, and Free Cash Flow rose by 51% in Q4.

CEO Aman Bhutani expressed satisfaction with the company’s operational execution and financial performance, highlighting progress in empowering global entrepreneurs. The CEO expressed confidence in delivering compelling solutions through a simplified software platform and strengthening strategic positioning.

GoDaddy CFO Mark McCaffrey emphasized the company’s ability to provide a comprehensive solution for customers, driving margin expansion through operational discipline. Commitment to managing the business for an optimal blend of top-line growth and profitability, compounding free cash flow, and creating enduring shareholder value was reiterated.

Key Highlights for Full Year 2023:

  • Total revenue reached $4.3 billion, up 4% YoY (5% on a constant currency basis).
  • Total bookings increased by 4% YoY (5% on a constant currency basis) to $4.6 billion.
  • Net Income, inclusive of non-routine items, surged 295% YoY to $1.4 billion (33% margin).
  • Normalized EBITDA (NEBITDA) reached $1.1 billion, up 12% YoY (27% margin).
  • Net cash provided by operating activities increased by 7% YoY to $1,047.6 million.
  • Free cash flow rose by 12% YoY to $1.1 billion.

Additionally, on January 1, 2024, GoDaddy’s subsidiary holding company, Desert Newco, LLC, underwent a structural change for U.S. income tax purposes, transitioning from a partnership to a disregarded entity, thus terminating its legacy Up-C structure.

Key Highlights for Fourth Quarter 2023:

  • Total revenue for Q4 was $1.1 billion, up 6% YoY on both reported and constant currency bases.
  • Total bookings increased by 7% YoY (6% on a constant currency basis) to $1.1 billion.
  • Net income, inclusive of non-routine items, soared by 1,107% YoY to $1.1 billion (103% margin).
  • NEBITDA for Q4 was $324.2 million, up 22% YoY (29% margin).
  • Net cash provided by operating activities increased by 43% YoY to $297.7 million.
  • Free cash flow saw a significant rise of 51% YoY, reaching $305.1 million.

Additionally, GoDaddy’s commerce offerings demonstrated substantial growth, with Gross Payments Volume (GPV) reaching $1.7 billion, a 125% YoY increase, and Gross Merchandise Volume (GMV) reaching $36 billion, up 26% YoY.

The company successfully launched GoDaddy Airo(TM), an AI experience leveraging generative AI and machine learning to proactively assist in building and growing online ventures. This business-in-a-box solution automatically generates a logo, website, tailored content, communications, and more, providing customers with a seamless experience within minutes of domain registration or for those with established websites.

View the full presentation at GoDaddy.

Copyright © 2024 · All Rights Reserved.