GoDaddy Inc. (NYSE: GDDY) has kicked off 2024 with impressive first-quarter financial results, marking significant year-over-year growth and demonstrating the company’s sustained focus on empowering entrepreneurs globally. The Tempe-based company reported a 7% increase in total revenue, which reached $1.1 billion as of March 31, 2024.
Aman Bhutani, CEO of GoDaddy, expressed enthusiasm about the company’s strong start to the year, emphasizing their mission to make opportunities more inclusive. “With a dedicated team and focus on our key initiatives and innovation, we are propelling profitable growth that maximizes free cash flow as we deliver truly magical experiences for our customers,” Bhutani said.
Mark McCaffrey, GoDaddy’s CFO, highlighted the company’s disciplined approach to capital allocation, which has been a cornerstone of its strategy to drive sustainable growth. He noted, “Our strong first quarter results underscore our commitment to sustainable growth and disciplined capital allocation.”
Key Financial and Operational Highlights:
- Revenue Growth: Total revenue saw a 7% increase on a reported and constant currency basis to $1.1 billion. Notably, the Applications and Commerce (A&C) segment surged by 13% to $383.1 million.
- Profit Surge: Net income experienced an extraordinary rise, increasing 747% to $401.5 million, which included a non-routine, non-cash tax benefit of $267.4 million. This jump translated into a robust 36% net income margin.
- Operational Efficiency: Free cash flow was up by 26% year-over-year, amounting to $327.4 million. The company’s operational activities generated $297.2 million, marking a 10% increase from the previous year.
- Customer Engagement: GoDaddy continued to enhance customer experience with the rollout of GoDaddy Airo™, expanding its reach to the existing 21 million customer base and planning further market expansions throughout the year.
Shareholder Value and Corporate Restructuring:
GoDaddy has been active in returning value to its shareholders, repurchasing 2.8 million shares for $345.6 million at an average price of $121.49 per share, significantly reducing the number of fully diluted shares.
The company also undertook strategic corporate restructuring, including a workforce reduction impacting about 180 employees and recording $22.4 million in related charges. This move is part of GoDaddy’s broader effort to streamline operations and enhance future cash flows.
Future Outlook and Guidance:
Looking ahead to the second quarter ending June 30, 2024, GoDaddy anticipates revenue between $1.10 billion and $1.12 billion, reflecting a year-over-year growth of approximately 6%. The company expects the A&C revenue to grow in the low- to mid-teens and the Core platform revenue to see low single-digit growth.
For the full year of 2024, GoDaddy has raised its revenue expectations to a range of $4.50 billion to $4.56 billion, aiming for a year-over-year growth of 6.5% at the midpoint. The anticipated NEBITDA margin is around 29%, with expectations of reaching 31% by the fourth quarter.
As GoDaddy continues to evolve its platform and expand its global footprint, it remains a pivotal player in the internet domain and web hosting industry, with a clear trajectory for sustained growth and innovation in 2024 and beyond.
