On October 30, 2024, GoDaddy Inc (GDDY, Financial) released its 8-K filing for the third quarter of 2024, showcasing a robust financial performance that exceeded analyst expectations. GoDaddy, a leading provider of domain registration, website hosting, and business productivity tools, reported a total revenue of $1.15 billion, surpassing the estimated $1.144 billion. This marks a 7% increase year-over-year, driven by significant growth in its Applications and Commerce (A&C) segment.
Performance Highlights and Challenges
GoDaddy's third-quarter results reflect a solid execution of its strategic initiatives, with total bookings reaching $1.2 billion, a 9% increase year-over-year. The company's A&C revenue grew by 16% to $423.1 million, while the Core Platform revenue saw a modest 3% increase to $724.5 million. Despite these achievements, GoDaddy faces challenges such as a slight decline in total customers, down 1.4% from the previous year, which could impact future revenue growth.
Financial Achievements and Industry Significance
GoDaddy's financial achievements are noteworthy, particularly its net income of $190.5 million, representing a 45% increase year-over-year and a 17% margin. The company's normalized EBITDA (NEBITDA) rose by 24% to $366.5 million, highlighting its strong profitability. These metrics are crucial for a software company like GoDaddy, as they demonstrate the ability to generate sustainable growth and shareholder value.
Key Financial Metrics and Analysis
GoDaddy's balance sheet remains strong, with cash and cash equivalents totaling $767.1 million and a net debt of $3.1 billion. The company's free cash flow increased by 29% to $362.7 million, underscoring its robust cash generation capabilities. The annualized recurring revenue (ARR) for A&C grew by 15% to $1.6 billion, while the Core ARR increased by 4% to $2.4 billion, reflecting the company's focus on recurring revenue streams.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $1.15 billion | $1.07 billion | 7% |
| Net Income | $190.5 million | $131.0 million | 45% |
| NEBITDA | $366.5 million | $296.0 million | 24% |
| Free Cash Flow | $362.7 million | $280.2 million | 29% |
Commentary and Strategic Outlook
GoDaddy delivered a solid third quarter, with continued progress on our key initiatives," said GoDaddy CEO Aman Bhutani. "We are committed to empowering entrepreneurs worldwide with innovative solutions and look forward to sharing the enhanced capabilities of the GoDaddy Airo experience at our Investor Dinner in December."
GoDaddy's strategic focus on expanding its Airo AI-powered experience and optimizing monetization pathways is expected to drive future growth. The company's disciplined capital allocation and strong balance sheet position it well to create enduring value for shareholders.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from GoDaddy Inc for further details.
