On August 1, 2024, GoDaddy Inc (GDDY, Financial) released its 8-K filing for the second quarter ending June 30, 2024. GoDaddy, a leading provider of domain registration, website hosting, and business productivity tools, reported impressive financial results that surpassed analyst estimates.
Performance Highlights
GoDaddy Inc (GDDY, Financial) reported total revenue of $1.1 billion for Q2 2024, marking a 7% year-over-year increase and falling short of the estimated revenue of $1.114 billion. The company's net income surged by 76% year-over-year to $146.3 million, representing a 13% margin. This performance is significant as it demonstrates GoDaddy's ability to drive profitable growth and maintain a strong financial position.
Segment Revenue and Growth
The Applications and Commerce (A&C) segment saw a 15% year-over-year revenue growth, reaching $405.6 million. The Core Platform segment also experienced growth, with revenue totaling $718.9 million, a 3% increase year-over-year. These segments are crucial for GoDaddy's business as they represent the core services and innovative solutions offered to its customer base.
Financial Achievements
GoDaddy's financial achievements for Q2 2024 include:
- Total bookings of $1.3 billion, up 11% year-over-year.
- Normalized EBITDA (NEBITDA) of $331.7 million, up 25% year-over-year, with a 29% margin.
- Net cash provided by operating activities of $294.8 million, up 49% year-over-year.
- Free cash flow of $323.4 million, up 35% year-over-year.
These achievements highlight GoDaddy's strong cash generation capabilities and its ability to invest in growth initiatives while returning value to shareholders.
Income Statement and Key Metrics
Key details from GoDaddy's income statement include:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenue | $1,124.5 million | $1,048.1 million | 7.3% |
| Net Income | $146.3 million | $83.1 million | 76.1% |
| Net Cash from Operating Activities | $294.8 million | $198.0 million | 48.9% |
| Free Cash Flow | $323.4 million | $239.9 million | 34.8% |
Commentary and Strategic Initiatives
"GoDaddy successfully delivered a great quarter," said GoDaddy CEO Aman Bhutani. "We are making progress on our key initiatives, including growing discovery and engagement of our AI-powered experience, GoDaddy Airo. We see tremendous opportunity for long-term growth as we continue to create value for our customers with innovative solutions and seamless experiences."
"We are pleased with our strong second-quarter results, demonstrating execution against our plan to drive both innovation and operational efficiency," said GoDaddy CFO Mark McCaffrey. "Our track record of profitable growth, driving compounding free cash flow and maintaining a strong balance sheet, alongside our capital allocation strategy, positions GoDaddy well to drive long-term shareholder value."
Balance Sheet and Cash Flow
As of June 30, 2024, GoDaddy reported total cash and cash equivalents of $444.9 million and total debt of $3.9 billion, resulting in a net debt of $3.4 billion. The company also highlighted its debt refinancing efforts, which are expected to reduce annual cash interest expenses by approximately $25 million.
Analysis
GoDaddy Inc (GDDY, Financial)'s strong Q2 2024 performance underscores its ability to innovate and grow in a competitive market. The company's focus on expanding its AI-powered solutions and digital marketing tools positions it well for future growth. Additionally, GoDaddy's robust cash flow and strategic capital allocation enhance its financial stability and shareholder value.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from GoDaddy Inc for further details.
