Q4 2023 Applications & Commerce revenue up
13%;
Delivered Q4 net income margin of 103%,
inclusive of non-routine items, and Q4 Normalized EBITDA margin of
over 29%
Cash Provided by Operating Activities up 43% in
Q4; Free Cash Flow up 51% in Q4
TEMPE,
Ariz., Feb. 13, 2024 /PRNewswire/ -- GoDaddy
Inc. (NYSE: GDDY) today reported financial results for the fourth
quarter and full year that ended December 31, 2023.
"GoDaddy demonstrated strong operational execution and financial
performance while also making significant progress in our mission
of empowering entrepreneurs around the world," said GoDaddy CEO
Aman Bhutani. "We are excited and
confident in our ability to deliver compelling solutions for our
customers across our simplified software platform while continuing
to strengthen our strategic positioning."
"GoDaddy delivered strong 2023 financial results, showcasing our
ability to provide a one-stop shop for our customers and drive
margin expansion through operational discipline," said GoDaddy CFO
Mark McCaffrey. "We remain committed
to managing our business to provide an optimal combination of
top-line growth and profitability, delivering compounding free cash
flow and creating enduring shareholder value."
Full Year 2023 Business Highlights
- Total revenue of $4.3 billion, up
4% year-over-year, and 5% on a constant currency basis.
- Total bookings of $4.6 billion,
up 4% year-over-year, and 5% on a constant currency basis.
- Net Income of $1.4 billion,
inclusive of non-routine items, up 295% year-over-year,
representing a 33% margin.
- Normalized EBITDA (NEBITDA) of $1.1
billion, up 12% year-over-year, representing a 27%
margin.
- Net cash provided by operating activities of $1,047.6 million, up 7% year-over-year.
- Free cash flow of $1.1 billion,
up 12% year-over-year.
- On January 1,
2024, GoDaddy's subsidiary holding company, Desert Newco, LLC,
was converted from a partnership to a disregarded entity for U.S.
income tax purposes, thereby terminating its legacy Up-C
structure.
Fourth Quarter 2023 Business Highlights
- Total revenue of $1.1 billion, up
6% year-over-year on a reported and constant currency basis.
- Total bookings of $1.1 billion,
up 7% year-over-year, and 6% on a constant currency basis.
- Net income of $1.1 billion,
inclusive of non-routine items, up 1,107% year-over-year,
representing a 103% margin.
- NEBITDA of $324.2 million, up 22%
year-over-year, representing a 29% margin.
- Net cash provided by operating activities of $297.7 million, up 43% year-over-year.
- Free cash flow of $305.1 million,
up 51% year-over-year.
- Gross payments volume, or GPV, from GoDaddy's commerce
offerings grew to an impressive $1.7
billion, up 125% year-over-year. Gross merchandise volume
was $36 billion, up 26%
year-over-year.
- GoDaddy launched its AI experience, GoDaddy AiroTM,
within the U.S. GoDaddy AiroTM harnesses the power of
generative AI and other machine learning to proactively help build
and grow online ventures, delivering a business-in-a-box experience
that automatically generates a logo, website, tailored content,
communications, and more. Customers engage with it within minutes
of registering a domain or can use other features if they have an
established website.
Consolidated Fourth Quarter and Full Year Financial
Highlights
|
Three Months
Ended
December
31,
|
|
Year
Ended December
31,
|
|
2023
|
|
2022
|
|
Change
|
Constant
Currency
|
|
2023
|
|
2022
|
|
Change
|
Constant
Currency
|
|
(in millions, except
customers in thousands and ARPU in dollars)
|
|
GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
1,100.3
|
|
$
1,039.9
|
|
5.8 %
|
5.8 %
|
|
$ 4,254.1
|
|
$ 4,091.3
|
|
4.0 %
|
4.6 %
|
Applications &
commerce revenue
|
$
377.4
|
|
$
333.4
|
|
13.2 %
|
|
|
$ 1,430.4
|
|
$ 1,279.7
|
|
11.8 %
|
|
Core platform
revenue
|
$
722.9
|
|
$
706.5
|
|
2.3 %
|
|
|
$ 2,823.7
|
|
$ 2,811.6
|
|
0.4 %
|
|
International
revenue
|
$
353.9
|
|
$
340.8
|
|
3.8 %
|
3.8 %
|
|
$ 1,381.1
|
|
$ 1,334.0
|
|
3.5 %
|
5.3 %
|
Net
income(1)
|
$
1,132.3
|
|
$ 93.8
|
|
1,107.1 %
|
|
|
$
1,393.8
|
|
$
352.9
|
|
295.0 %
|
|
Net cash provided by
operating
activities
|
$
297.7
|
|
$
208.0
|
|
43.1 %
|
|
|
$
1,047.6
|
|
$
979.7
|
|
6.9 %
|
|
Segment EBITDA -
A&C
|
$
164.8
|
|
$
135.6
|
|
21.5 %
|
|
|
$
594.2
|
|
$
522.8
|
|
13.7 %
|
|
Segment EBITDA margin -
A&C
|
43.7 %
|
|
40.7 %
|
|
300 bps
|
|
|
41.5 %
|
|
40.9 %
|
|
70 bps
|
|
Segment EBITDA -
Core
|
$
227.8
|
|
$
204.8
|
|
11.2 %
|
|
|
$
816.4
|
|
$
783.7
|
|
4.2 %
|
|
Segment EBITDA margin -
Core
|
31.5 %
|
|
29.0 %
|
|
250 bps
|
|
|
28.9 %
|
|
27.9 %
|
|
100 bps
|
|
Non-GAAP
Results(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized EBITDA
(NEBITDA)
|
$
324.2
|
|
$
266.0
|
|
21.9 %
|
|
|
$ 1,134.5
|
|
$ 1,013.0
|
|
12.0 %
|
|
NEBITDA
margin
|
29.5 %
|
|
25.6 %
|
|
390 bps
|
|
|
26.7 %
|
|
24.8 %
|
|
190 bps
|
|
Unlevered free cash
flow
|
$
346.6
|
|
$
238.2
|
|
45.5 %
|
|
|
$ 1,254.2
|
|
$ 1,095.9
|
|
14.4 %
|
|
Free cash
flow
|
$
305.1
|
|
$
201.6
|
|
51.3 %
|
|
|
$
1,084.4
|
|
$
968.6
|
|
12.0 %
|
|
Operating and
Business Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
bookings
|
$
1,123.9
|
|
$
1,051.6
|
|
6.9 %
|
6.5 %
|
|
$ 4,603.1
|
|
$ 4,413.8
|
|
4.3 %
|
4.7 %
|
Total customers at
period end
|
21,026
|
|
20,897
|
|
0.6 %
|
|
|
21,026
|
|
20,897
|
|
0.6 %
|
|
Average revenue per
user (ARPU)
|
$ 203
|
|
$ 197
|
|
3.0 %
|
|
|
$ 203
|
|
$ 197
|
|
3.0 %
|
|
Annualized
Recurring Revenue
(ARR)
|
$
3,690.8
|
|
$
3,570.1
|
|
3.4 %
|
|
|
$ 3,690.8
|
|
$ 3,570.1
|
|
3.4 %
|
|
_______________________________
|
(1) Net income for the
three months and the year ended December 31, 2023 includes $11.2
million and $90.8 million, respectively, in restructuring and other
charges. In addition, during the fourth quarter of 2023, we
released the majority of our valuation allowance on U.S. and state
deferred tax assets, resulting in a non-routine non-cash benefit of
approximately $1 billion recorded to income taxes.
|
(2) Reconciliations of
our non-GAAP results to their most directly comparable GAAP
financial measures are set forth in "Reconciliation of Non-GAAP
Financial Measures" below.
|
Share Repurchases
From January 1, 2022 through
February 1, 2024, GoDaddy repurchased
34.2 million shares of its common stock for an aggregate purchase
price of $2.6 billion, and an average
price per share of $74.99. These
repurchases represent a reduction of approximately 20% in fully
diluted shares from those outstanding as of December 31, 2021.
Balance Sheet
At December 31, 2023, total cash and cash equivalents and
short-term investments were $498.8
million, total debt was $3.9
billion and net debt was $3.4
billion.
Debt Repricing
In January 2024, GoDaddy repriced
$1.8 billion of the outstanding
principal amount of its term loans to lower the interest rate
margins by 0.5%. This strategic adjustment and the repricing we
completed in July 2023 are expected
to reduce annual cash interest expense by approximately
$22.0 million. The refinanced loans
retain the original maturity date and other terms and
conditions.
Partial Release of Valuation Allowance
During the fourth quarter, as a result of our increasing
profitability over the past several years and forecasted levels of
future taxable income, we released the majority of our valuation
allowance on our U.S. and state deferred tax assets. This resulted
in a non-cash benefit of approximately $1
billion recorded to income taxes.
Business Outlook
For the first quarter ending March 31, 2024, GoDaddy
expects total revenue in the range of $1.085
billion to $1.105 billion,
representing year-over-year growth of 6% at the midpoint, versus
the same period in 2023. For the full year ending December 31,
2024, GoDaddy is targeting total revenue in the range of
$4.480 billion to $4.560 billion, representing year-over-year
growth of 6% at the midpoint, versus the $4.25 billion of revenue generated for the full
year ended December 31, 2023.
For the first quarter ending March 31, 2024, GoDaddy
expects Normalized EBITDA margin of 27%. For the full year ending
December 31, 2024, GoDaddy expects
Normalized EBITDA margin of approximately 29%, with a fourth
quarter Normalized EBITDA margin of approximately 31%.
For the full year ending December 31, 2024, GoDaddy expects
unlevered free cash flow of at least $1.4
billion, versus the $1.3
billion of unlevered free cash flow generated in 2023.
GoDaddy expects free cash flow of at least $1.2 billion, versus the $1.1 billion of free cash flow generated in
2023.
Modeling
Guide
|
2024
|
|
|
|
Capital
expenditures
|
~ $35
million
|
Cash interest on
long-term debt
|
~ $155
million
|
Cash income
taxes
|
~ $30
million
|
GoDaddy's consolidated financial statements are prepared in
accordance with generally accepted accounting principles in
the United States (GAAP). GoDaddy
does not provide reconciliations from non-GAAP guidance to GAAP
equivalents because projections of changes in individual balance
sheet amounts are not possible without unreasonable effort, and
presentation of such reconciliations would imply an inappropriate
degree of precision. GoDaddy provided reconciliations of non-GAAP
financial measures to their nearest GAAP equivalents in the tables
included within this release.
Upcoming Investor Events
GoDaddy will hold an in-person Investor Day on March 6, 2024 at its Tempe, Arizona headquarters during which
leaders will discuss GoDaddy's long-term strategy, innovation
initiatives, financial framework, and capital allocation strategy,
as well as provide demonstrations of recently launched customer
experiences. Given limited space for the live event, interested
shareholders and analysts are encouraged to email
investors@godaddy.com for an invitation. The event, along with
supporting materials, will be accessible live or via an archived
replay through the Investor Relations section of GoDaddy's website
at https://investors.godaddy.net.
Quarterly Earnings Webcast
GoDaddy will host a webcast to discuss fourth quarter and full
year 2023 results at 5:00 p.m. Eastern
Time on February 13, 2024. To participate in the
webcast, please preregister online at
https://investors.godaddy.net/investor-relations/overview/default.aspx.
A live webcast of the event, together with a slide presentation
including supplemental financial information and reconciliations of
certain non-GAAP measures to their nearest comparable GAAP
measures, will be available through GoDaddy's Investor Relations
website at https://investors.godaddy.net. A transcript of
prerecorded remarks will be available on the Investor Relations
website at the time of the webcast. Following the event, a recorded
replay of the webcast will be available on the website.
GoDaddy uses its Investor Relations website at
https://investors.godaddy.net as a means of disclosing material
non-public information and to comply with its disclosure
obligations under Regulation FD. Accordingly, investors should
monitor GoDaddy's Investor Relations website, in addition to
following press releases, Securities and Exchange Commission (SEC)
filings, public conference calls and webcasts.
Forward-Looking Statements
This press release contains forward-looking statements which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
estimates and information available to us at the time of this press
release and are not guarantees of future performance. Statements in
this press release involve risks, uncertainties and assumptions. If
the risks or uncertainties materialize or the assumptions prove
incorrect, our results may differ materially from those expressed
or implied by such forward-looking statements. All statements other
than statements of historical fact could be deemed forward-looking
statements, including, but not limited to any statements regarding:
our business outlook; launches of new or expansion of existing
products or services, including GoDaddy AiroTM, any
projections of product or service availability, technology
developments and innovation, customer growth, or other future
events; historical results that may suggest future trends for our
business; our plans, strategies or objectives with respect to
future operations, partnerships and partner integrations and
marketing strategy; future financial results; our ability to
integrate acquisitions and achieve desired synergies and vertical
integration; the expected impact of our debt repricing; our
forecasted levels of future taxable income; and assumptions
underlying any of the foregoing.
Actual results could differ materially from our current
expectations as a result of many factors, including, but not
limited to: the unpredictable nature of our rapidly evolving
market; fluctuations in our financial and operating results; our
rate of growth; interruptions or delays in our service or our web
hosting; our dependence on payment card networks and acquiring
processors; breaches of our security measures; the impact of any
previous or future acquisitions or divestitures; our ability to
continue to release, and gain customer acceptance of, our existing
and future products and services; our ability to deploy new and
evolving technologies, such as artificial intelligence, machine
learning, data analytics and similar tools, in our offerings; our
ability to manage our growth; our ability to hire, retain and
motivate employees; the effects of competition; technological,
regulatory and legal developments; intellectual property
litigation; the impact of our restructuring efforts; macroeconomic
conditions and developments in the economy, financial markets and
credit markets; continued escalation of geopolitical tensions; the
level of interest rates and inflationary pressures; and execution
of share repurchases.
Additional risks and uncertainties that could affect GoDaddy's
business and financial results are included in the filings we make
with the SEC from time to time, including those described in "Risk
Factors" in our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023, "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our Annual Report on Form 10-K for the year ended
December 31, 2022 and in our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, each of which are available
on GoDaddy's website at https://investors.godaddy.net and on the
SEC's website at www.sec.gov, and any subsequent quarterly or
annual report filed with the SEC thereafter, including our annual
report on Form 10-K for the year ended December 31, 2023. Additional information will
also be set forth in other filings that GoDaddy makes with the SEC
from time to time. All forward-looking statements in this press
release are based on information available to GoDaddy as of the
date hereof. Except to the extent required by law, GoDaddy does not
assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist
after the date on which they were made.
Non-GAAP Financial Measures and Other Operating and Business
Metrics
In addition to our financial results prepared in accordance with
GAAP, this press release includes certain non-GAAP financial
measures and other operating and business metrics. We believe that
these non-GAAP financial measures and other operating and business
metrics are useful as a supplement in evaluating our ongoing
operational performance and enhancing an overall understanding of
our past financial performance. The non-GAAP financial measures
included in this press release should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. In addition, similarly titled
measures may be calculated differently by other companies and may
not be comparable. A reconciliation between each non-GAAP financial
measure and its nearest GAAP equivalent is included in this press
release following the financial statements. We use both GAAP and
non-GAAP measures to evaluate and manage our operations.
Total bookings. Total bookings is an operating metric
representing the total value of customer contracts entered into
during the period, excluding refunds. We believe total bookings
provides additional insight into the performance of our business
and the effectiveness of our marketing efforts since we typically
collect payment at the inception of a customer contract but
recognize revenue ratably over the term of the contract.
Constant currency. Constant currency is calculated by
translating bookings and revenue for each month in the current
period using the foreign currency exchange rates for the
corresponding month in the prior period, excluding any hedging
gains or losses realized during the period. We believe constant
currency information is useful in analyzing underlying trends in
our business by eliminating the impact of fluctuations in foreign
currency exchange rates and allows for period-to-period comparisons
of our performance.
Normalized EBITDA (NEBITDA). NEBITDA is a supplemental measure
of our operating performance used by management and investors to
evaluate our business. We calculate NEBITDA as net income excluding
depreciation and amortization, interest expense (net), provision or
benefit for income taxes, equity-based compensation expense,
acquisition-related costs, restructuring-related expenses and
certain other items. We believe that the inclusion or exclusion of
certain recurring and non-recurring items provides a supplementary
measure of our core operating results and permits useful
alternative period-over-period comparisons of our operations but
should not be viewed as a substitute for comparable GAAP
measures.
NEBITDA margin. NEBITDA margin is used by management as a
supplemental measure of our operating performance and refers to the
ratio of NEBITDA to revenue, expressed as a percentage.
Unlevered free cash flow. Unlevered free cash flow is a measure
of our liquidity used by management to evaluate our business prior
to the impact of our capital structure and restructuring and after
purchases of property and equipment. Such liquidity can be used by
us for strategic opportunities and strengthening our balance sheet.
However, given our debt obligations, unlevered free cash flow does
not represent residual cash flow available for discretionary
expenses.
Free cash flow. Free cash flow is defined as our unlevered free
cash flow less interest payments for the period. We use free cash
flow as a supplemental measure of our liquidity, including our
ability to generate cash flow in excess of capital requirements and
return cash to shareholders, though it should not be considered as
an alternative to, or more meaningful than, comparable GAAP
measures.
Net debt. We define net debt as total debt less cash and cash
equivalents and short-term investments. Total debt consists of the
current portion of long-term debt plus long-term debt and
unamortized original issue discount and debt issuance costs. Our
management reviews net debt as part of its management of our
overall liquidity, financial flexibility, capital structure and
leverage and we believe such information is useful to investors.
Furthermore, certain analysts and debt rating agencies monitor our
net debt as part of their assessments of our business.
Gross merchandise volume (GMV). GMV is a business metric
calculated by annualizing the total quarterly dollar value of
orders facilitated by our customers through our Commerce platform,
including shipping and handling, and taxes, and is shown net of
discounts, and returns (where visibility exists). While GMV is not
indicative of our performance, we believe it is an indicator of the
strengths of our products and platforms.
Gross payments volume (GPV). GPV is an operating metric
calculated by annualizing the total quarterly dollar value of
transactions processed through our payments platform. GPV is
representative of the volume of transactions in which we record
transaction revenue based on our payment processing rate.
Annualized recurring revenue (ARR). ARR is an operating metric
defined as quarterly recurring revenue (QRR) multiplied by four.
QRR represents the quarterly recurring GAAP revenue, net of
refunds, from new and renewed subscription-based services. ARR is
exclusive of any revenue that is non-recurring, including, without
limitation, domain aftermarket, domain transfers, one-time set-up
or migration fees and non-recurring professional website services
fees. We believe ARR helps illustrate the scale of certain of our
products and facilitates comparisons to other companies in our
industry.
Average revenue per user (ARPU). We calculate ARPU as total
revenue during the preceding 12 month period divided by the average
of the number of total customers at the beginning and end of the
period. ARPU provides insight into our ability to sell additional
products to customers, though the impact to date has been muted due
to our continued growth in total customers.
Total customers. We define a customer as an individual or entity
with paid transactions in the trailing twelve months or with paid
subscriptions as of the end of the period. A single user may be
counted as a customer more than once if they maintain paid
subscriptions or transactions in multiple accounts. Total customers
is one way we measure the scale of our business and is an important
part of our ability to increase our revenue base.
About GoDaddy
GoDaddy helps millions of entrepreneurs globally start, grow,
and scale their businesses. People come to GoDaddy to name their
idea, build a professional website, attract customers, sell their
products and services, and accept payments online and in-person.
GoDaddy's easy-to-use tools help microbusiness owners manage
everything in one place and its expert guides are available to
provide assistance 24/7. To learn more about the company, visit
www.GoDaddy.com.
GoDaddy Inc.
Consolidated Statements of Operations (unaudited)
(In millions, except shares in thousands and per share
amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
Applications &
commerce
|
$ 377.4
|
|
$ 333.4
|
|
$
1,430.4
|
|
$
1,279.7
|
Core
platform
|
722.9
|
|
706.5
|
|
2,823.7
|
|
2,811.6
|
Total
revenue
|
1,100.3
|
|
1,039.9
|
|
4,254.1
|
|
4,091.3
|
Costs and operating
expenses(1):
|
|
|
|
|
|
|
|
Cost of revenue
(excluding depreciation and amortization)
|
402.2
|
|
379.5
|
|
1,573.6
|
|
1,484.5
|
Technology and
development
|
203.8
|
|
206.3
|
|
839.6
|
|
794.0
|
Marketing and
advertising
|
84.6
|
|
94.9
|
|
352.9
|
|
412.3
|
Customer
care
|
74.3
|
|
75.3
|
|
304.5
|
|
305.9
|
General and
administrative
|
95.6
|
|
98.6
|
|
374.0
|
|
385.5
|
Restructuring and
other
|
11.2
|
|
0.9
|
|
90.8
|
|
15.7
|
Depreciation and
amortization
|
38.7
|
|
49.5
|
|
171.3
|
|
194.6
|
Total costs and
operating expenses
|
910.4
|
|
905.0
|
|
3,706.7
|
|
3,592.5
|
Operating
income
|
189.9
|
|
134.9
|
|
547.4
|
|
498.8
|
Interest
expense
|
(43.6)
|
|
(42.2)
|
|
(179.0)
|
|
(146.3)
|
Loss on debt
extinguishment
|
—
|
|
(3.6)
|
|
(1.5)
|
|
(3.6)
|
Other income (expense),
net
|
1.2
|
|
6.8
|
|
36.9
|
|
7.6
|
Income before income
taxes
|
147.5
|
|
95.9
|
|
403.8
|
|
356.5
|
Benefit (provision) for
income taxes
|
984.8
|
|
(2.1)
|
|
990.0
|
|
(3.6)
|
Net income
|
1,132.3
|
|
93.8
|
|
1,393.8
|
|
352.9
|
Less: net income
attributable to non-controlling interests
|
0.2
|
|
0.2
|
|
0.8
|
|
0.7
|
Net income attributable
to GoDaddy Inc.
|
$
1,132.1
|
|
$
93.6
|
|
$
1,393.0
|
|
$ 352.2
|
Net income attributable
to GoDaddy Inc. per share of Class A common
stock:
|
|
|
|
|
|
|
|
Basic
|
$
8.01
|
|
$
0.60
|
|
$
9.39
|
|
$
2.22
|
Diluted
|
$
7.85
|
|
$
0.60
|
|
$
9.20
|
|
$
2.19
|
Weighted-average shares
of Class A common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
141,418
|
|
154,745
|
|
148,296
|
|
158,788
|
Diluted
|
144,253
|
|
157,083
|
|
151,452
|
|
161,457
|
____________________________________
|
|
|
|
|
|
|
|
(1) Costs
and operating expenses include equity-based compensation expense as
follows:
|
|
|
Cost of
revenue
|
$
0.2
|
|
$
0.4
|
|
$
1.3
|
|
$
1.5
|
Technology and
development
|
39.2
|
|
37.9
|
|
162.4
|
|
140.3
|
Marketing and
advertising
|
6.9
|
|
7.4
|
|
27.9
|
|
29.1
|
Customer
care
|
6.1
|
|
5.4
|
|
24.1
|
|
20.0
|
General and
administrative
|
16.3
|
|
20.0
|
|
78.3
|
|
73.5
|
Restructuring and
other
|
—
|
|
—
|
|
2.3
|
|
—
|
Total equity-based
compensation expense
|
$
68.7
|
|
$
71.1
|
|
$
296.3
|
|
$
264.4
|
GoDaddy Inc.
Consolidated Balance Sheets (unaudited)
(In millions, except per share amounts)
|
|
|
December
31,
|
|
2023
|
|
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 458.8
|
|
$ 774.0
|
Short-term
investments
|
40.0
|
|
—
|
Accounts and other
receivables
|
76.6
|
|
60.1
|
Registry
deposits
|
37.3
|
|
41.0
|
Prepaid domain name
registry fees
|
466.0
|
|
435.7
|
Prepaid expenses and
other current assets
|
177.2
|
|
271.8
|
Total current
assets
|
1,255.9
|
|
1,582.6
|
Property and equipment,
net
|
185.3
|
|
225.6
|
Operating lease
assets
|
60.8
|
|
84.1
|
Prepaid domain name
registry fees, net of current portion
|
209.0
|
|
197.1
|
Goodwill
|
3,569.3
|
|
3,536.9
|
Intangible assets,
net
|
1,158.6
|
|
1,252.2
|
Deferred tax
assets
|
1,038.8
|
|
—
|
Other assets
|
105.6
|
|
95.0
|
Total assets
|
$
7,583.3
|
|
$
6,973.5
|
Liabilities and
stockholders' equity (deficit)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 148.1
|
|
$ 130.9
|
Accrued expenses and
other current liabilities
|
442.4
|
|
356.7
|
Deferred
revenue
|
2,074.9
|
|
1,954.0
|
Long-term
debt
|
17.9
|
|
18.2
|
Total current
liabilities
|
2,683.3
|
|
2,459.8
|
Deferred revenue, net
of current portion
|
802.4
|
|
770.3
|
Long-term debt, net of
current portion
|
3,798.5
|
|
3,812.9
|
Operating lease
liabilities, net of current portion
|
90.2
|
|
116.5
|
Other long-term
liabilities
|
90.7
|
|
87.1
|
Deferred tax
liabilities
|
37.8
|
|
56.2
|
Commitments and
contingencies
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
Preferred stock,
$0.001 par value
|
—
|
|
—
|
Class A common stock,
$0.001 par value
|
0.1
|
|
0.2
|
Class B common stock,
$0.001 par value
|
—
|
|
—
|
Additional paid-in
capital
|
2,271.6
|
|
1,912.6
|
Accumulated
deficit
|
(2,302.5)
|
|
(2,422.6)
|
Accumulated other
comprehensive income
|
111.2
|
|
178.0
|
Total stockholders'
equity (deficit) attributable to GoDaddy Inc.
|
80.4
|
|
(331.8)
|
Non-controlling
interests
|
—
|
|
2.5
|
Total stockholders'
equity (deficit)
|
80.4
|
|
(329.3)
|
Total liabilities and
stockholders' equity (deficit)
|
$
7,583.3
|
|
$
6,973.5
|
GoDaddy Inc.
Consolidated Statements of Cash Flows (unaudited)
(In millions)
|
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
Net income
|
$
1,393.8
|
|
$
352.9
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
171.3
|
|
194.6
|
Equity-based
compensation
|
296.3
|
|
264.4
|
Gain (loss) on
derivative instruments
|
(12.0)
|
|
27.6
|
Non-cash restructuring
and other charges
|
6.1
|
|
10.4
|
Deferred
taxes
|
(1,011.6)
|
|
(18.4)
|
Loss on
dispositions
|
16.5
|
|
—
|
Other
|
56.5
|
|
66.8
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
Prepaid domain name
registry fees
|
(41.9)
|
|
(34.7)
|
Accounts
payable
|
28.3
|
|
35.1
|
Accrued expenses and
other current liabilities
|
56.4
|
|
11.3
|
Deferred
revenue
|
149.2
|
|
101.6
|
Other operating assets
and liabilities
|
(61.3)
|
|
(31.9)
|
Net cash provided by
operating activities
|
1,047.6
|
|
979.7
|
Investing
activities
|
|
|
|
Purchases of short-term
investments
|
(40.0)
|
|
—
|
Business acquisitions,
net of cash acquired
|
—
|
|
(72.5)
|
Purchases of intangible
assets
|
(35.4)
|
|
(0.4)
|
Net proceeds received
from dispositions
|
12.7
|
|
—
|
Purchases of property
and equipment
|
(42.0)
|
|
(59.7)
|
Purchases of equity
investments
|
(0.5)
|
|
—
|
Other investing
activities, net
|
2.8
|
|
0.6
|
Net cash used in
investing activities
|
(102.4)
|
|
(132.0)
|
Financing
activities
|
|
|
|
Proceeds received
from:
|
|
|
|
Issuance of term
loans
|
1,759.9
|
|
1,725.3
|
Stock option
exercises
|
19.6
|
|
19.9
|
Issuance of Class A
common stock under employee stock purchase plan
|
30.0
|
|
30.1
|
Payments made
for:
|
|
|
|
Repurchases of Class A
common stock
|
(1,270.2)
|
|
(1,294.6)
|
Repayment of term
loans
|
(1,786.3)
|
|
(1,789.9)
|
Financing-related
costs
|
—
|
|
(4.2)
|
Contingent
consideration for business acquisitions
|
(7.5)
|
|
(9.3)
|
Other financing
obligations
|
(7.2)
|
|
(4.0)
|
Net cash used in
financing activities
|
(1,261.7)
|
|
(1,326.7)
|
Effect of exchange rate
changes on cash and cash equivalents
|
1.3
|
|
(2.7)
|
Net decrease in cash
and cash equivalents
|
(315.2)
|
|
(481.7)
|
Cash and cash
equivalents, beginning of period
|
774.0
|
|
1,255.7
|
Cash and cash
equivalents, end of period
|
$
458.8
|
|
$
774.0
|
Reconciliation of Non-GAAP Financial Measures
The following tables reconcile each non-GAAP financial measure
to its most directly comparable GAAP financial measure:
|
Three Months
Ended
December 31,
|
|
Year
Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
NEBITDA and NEBITDA
Margin:
|
(in
millions)
|
Net income
|
$
1,132.3
|
|
$ 93.8
|
|
$
1,393.8
|
|
$ 352.9
|
Depreciation and
amortization
|
38.7
|
|
49.5
|
|
171.3
|
|
194.6
|
Equity-based
compensation(1)
|
68.7
|
|
71.1
|
|
294.0
|
|
264.4
|
Interest expense,
net
|
40.2
|
|
36.1
|
|
155.4
|
|
135.0
|
Acquisition-related
expenses(2)
|
4.9
|
|
7.9
|
|
12.1
|
|
35.1
|
Restructuring and
other(3)
|
24.2
|
|
5.5
|
|
97.9
|
|
27.4
|
Provision (benefit) for
income taxes
|
(984.8)
|
|
2.1
|
|
(990.0)
|
|
3.6
|
NEBITDA
|
$ 324.2
|
|
$ 266.0
|
|
$
1,134.5
|
|
$
1,013.0
|
|
|
|
|
|
|
|
|
Net income
margin
|
102.9 %
|
|
9.0 %
|
|
32.8 %
|
|
8.6 %
|
|
|
|
|
|
|
|
|
NEBITDA
margin
|
29.5 %
|
|
25.6 %
|
|
26.7 %
|
|
24.8 %
|
_________________________________
|
(1)
|
The year ended December
31, 2023 excludes $2.3 million of equity-based compensation expense
associated with our restructuring plan, which is included within
restructuring and other.
|
(2)
|
The year ended December
31, 2023 includes an adjustment of $6.0 million to a
previously-recognized acquisition milestone liability.
|
(3)
|
In addition to the
restructuring and other in our statements of operations, other
charges included are primarily composed of lease-related expenses
associated with closed facilities, charges related to certain legal
matters, adjustments to the fair value of our equity investments,
expenses incurred in relation to the refinancing of our long-term
debt and incremental expenses associated with professional
services.
|
|
December 31,
2023
|
|
(in
millions)
|
Net Debt:
|
|
Current portion of
long-term debt
|
$
17.9
|
Long-term
debt
|
3,798.5
|
Unamortized original
issue discount and debt issuance costs
|
59.7
|
Total debt
|
3,876.1
|
Less: Cash and cash
equivalents
|
(458.8)
|
Less: Short-term
investments
|
(40.0)
|
Net debt
|
$
3,377.3
|
|
Three Months
Ended
December 31,
|
|
Year
Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Free Cash Flow and
Unlevered Free Cash Flow:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$ 297.7
|
|
$ 208.0
|
|
$
1,047.6
|
|
$ 979.7
|
Capital
expenditures
|
(4.0)
|
|
(17.1)
|
|
(42.0)
|
|
(59.7)
|
Cash paid for
acquisition-related costs
|
0.8
|
|
7.2
|
|
11.2
|
|
37.9
|
Cash paid for
restructuring and other charges(1)
|
10.6
|
|
3.5
|
|
67.6
|
|
10.7
|
Free cash
flow
|
$ 305.1
|
|
$ 201.6
|
|
$
1,084.4
|
|
$ 968.6
|
Cash paid for interest
on long-term debt
|
41.5
|
|
36.6
|
|
169.8
|
|
127.3
|
Unlevered free cash
flow
|
$ 346.6
|
|
$ 238.2
|
|
$
1,254.2
|
|
$
1,095.9
|
_________________________________
|
(1)
|
In addition to payments
made pursuant to our February 2023 restructuring plan, cash paid
for restructuring and other charges includes a payment related to
the termination of a revenue sharing agreement, lease-related
payments associated with closed facilities, payments related to
certain legal matters as well as third party payments incurred in
relation to the refinancing of our long-term debt and incremental
payments associated with professional services.
|
Shares Outstanding
Shares of Class B common stock are not participating securities,
and therefore do not have rights to share in our earnings. Total
shares of common stock outstanding are as follows:
|
December
31,
|
|
2023
|
|
2022
|
|
|
|
|
|
(in
thousands)
|
Shares
Outstanding:
|
|
|
|
Class A common
stock
|
142,051
|
|
153,830
|
Class B common
stock
|
259
|
|
312
|
Total common stock
outstanding
|
142,310
|
|
154,142
|
Effect of dilutive
securities(1)
|
2,599
|
|
2,026
|
Total shares outstanding
|
144,909
|
|
156,168
|
_________________________________
|
(1) Calculated using
the treasury stock method, which excludes the impact of
antidilutive securities.
|
Constant Currency
The following table provides
a reconciliation of constant currency:
|
Three Months
Ended
December 31, 2023
|
|
Year Ended
December 31,
2023
|
|
|
|
|
|
(in
millions)
|
Constant
Currency:
|
|
|
|
Revenue
|
$
1,100.3
|
|
$
4,254.1
|
Constant currency
adjustment
|
(0.1)
|
|
25.0
|
Constant currency
revenue
|
$
1,100.2
|
|
$
4,279.1
|
|
|
|
|
Bookings
|
$
1,123.9
|
|
$
4,603.1
|
Constant currency
adjustment
|
(4.0)
|
|
16.8
|
Constant currency
bookings
|
$
1,119.9
|
|
$
4,619.9
|
Source: GoDaddy Inc.
© 2024 GoDaddy Inc. All Rights Reserved.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/godaddy-reports-strong-fourth-quarter-and-full-year-2023-results-302061109.html
SOURCE GoDaddy Inc.