GoDaddy Inc (GDDY, Financial), the company that supports entrepreneurs, released its financial results for the third quarter ending September 30, 2023, on November 2, 2023. The company reported a net income of $131 million on a 12% margin and $296 million in Normalized EBITDA on an expanded 28% margin. The Applications and Commerce (A&C) revenue grew by 11% year-over-year to $363 million in the third quarter. The Annualized recurring revenue (ARR) for A&C also grew by 11% year-over-year to $1.4 billion in the third quarter.
Financial Highlights
The company's total revenue for the third quarter was $1,069.7 million, marking a 3.5% increase from the same period in 2022. The Applications & Commerce revenue stood at $363.3 million, showing an 11.4% increase. The Core platform revenue was $706.4 million, a slight decrease of 0.1% from the previous year. The net income for the quarter was $131.0 million, a significant increase of 31.0% from the same period in 2022.
GoDaddy's CFO, Mark McCaffrey, expressed satisfaction with the company's progress towards its goal of delivering profitable growth and margin expansion. He highlighted the strong performance in the Applications & Commerce segment and expressed confidence in the company's ability to generate further margin expansion, creating long-term value for shareholders.
Business Highlights
GoDaddy introduced Instant Video, a new AI-powered feature within its GoDaddy Studio App, empowering small businesses to quickly create social media and video content, increase customer engagement, and seize digital marketing and social commerce opportunities. The company also completed the integration of two platforms into its technology stack, simplifying its infrastructure and enabling further margin opportunities in the coming quarters.
Share Repurchases and Balance Sheet
Year-to-date through October 31, 2023, GoDaddy repurchased 17.3 million shares of its common stock for an aggregate purchase price of $1.3 billion, with an average price per share of $72.85. This represents an approximate 20% reduction in fully diluted shares from those outstanding at the inception of the current $4.0 billion buyback authorization. As of September 30, 2023, total cash and cash equivalents were $329.2 million, total debt was $3.9 billion, and net debt was $3.6 billion.
Business Outlook
For the fourth quarter ending December 31, 2023, GoDaddy targets total revenue in the range of $1.095 billion to $1.115 billion, representing year-over-year growth of 6% at the midpoint, versus the same period in 2022. The company expects NEBITDA margin slightly above the previously guided 26% for the full year ending December 31, 2023.
Explore the complete 8-K earnings release (here) from GoDaddy Inc for further details.
