Slide 1: Company Overview
Company Overview Kim Flores Fit Phoenix FITPHX.COM May 2023 © 2023 GoDaddy Inc.
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward–looking statements and non-GAAP financial measures This presentation 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 tim
Slide 3: Who we are
Who we are Priscylla Guesser Portal Da Mandala PORTALDAMANDALA.COM.BR © 2023 GoDaddy Inc.
Slide 4: Empowering entrepreneurs everywhere
Empowering entrepreneurs everywhere Making opportunity more inclusive for all Priscylla Guesser Portal Da Mandala PORTALDAMANDALA.COM.BR 4 © 2023 GoDaddy Inc.
Slide 5: Our vision and mission
Our vision is to radically shift the global economy toward life-fulfilling entrepreneurial ventures Our mission is to empower entrepreneurs everywhere, making opportunity more inclusive for all Johanna Boccardo JOHANNA.MIAMI 5 © 2023 GoDaddy Inc.
Slide 6: Our strategy
Our strategy We champion everyday entrepreneurs by empowering them with sage guidance set in seamlessly intuitive experiences to securely name, create, and grow their ventures in select markets; leveraging the exponential power of our community at global scale to deliver profitable revenue growth. 6
Slide 7: Partnering with customers at every point on the Entrepreneur's Wheel
At GoDaddy, Marketplaces & social media Digital identity our goal is to Messaging commerce Payments partner with Domain our customers Logo Connected Email at every point commerce Link in Bio on the Create posts Website Entrepreneur’s Online store Hosting & Wheel Physical store Ubiquitous security Of
Slide 8: What we do
What we do Applications & Commerce Core platform 31% 69% $1.3B 13% Y/Y growth $4.1B $2.8B 5% Y/Y growth 2022 revenue Website building + Commerce + 7% Y/Y growth Domains + Hosting + Security Payments + Productivity 8% constant currency growth 8 © 2023 GoDaddy Inc.
Slide 9: Durable and differentiated strategic position
Durable and differentiated strategic position trusted by customers for over 25 years with industry leading brand awareness 21M 85% 12% paying customer applications & commerce customers retention growth 10% $1B+ ARR growth in gross payments volume Create + Grow products (GPV) As of March 31, 2023. 9
Slide 10: Customer Care: Our Special Sauce
Customer Care: Our Special Sauce 6,100+ Dejay M. GoDaddy Guide Customer Care Pros around the world Dedicated to providing a personalized care experience to each of our 21M customers Localized care agents to optimize efficiency around the globe 14M+* human-guided moments with customers per month Gene
Slide 11: Unique, differentiated and highly profitable model
Unique, differentiated and highly profitable model Large and Durable and Attractive growing differentiated shareholder opportunity strategic position value creation Diverse, durable revenue growth, attractive unit economics and a management team committed to delivering free cash flow (FCF) per share
Slide 12: High brand awareness
High brand awareness Our brand awareness remains strong and steady GoDaddy’s high brand awareness sets us apart from the competition Competitor 1 Score Competitor 2 Competitor 3 Competitor 4 2019 2020 2021 2022 As of December 31, 2022. 12 © 2023 GoDaddy Inc.
Slide 13: Our business model
Our business model Jason Vigil & Jenna Stewart Canyon Adventure Vans CANYONADVENTUREVANS.COM © 2023 GoDaddy Inc.
Slide 14: Key Investment Highlights
Key Investment Highlights Market-leading solutions for SMBs for a one-stop shop experience Loyal base of 21M customers with customer retention of 85%, expanding their digital identities with upside to attach more solutions and increase customer lifetime value Focused on delivering a balanced combina
Slide 15: Our strengths enable our disciplined approach
Our strengths enable our disciplined approach Profitable growth at scale Sustainable Our 25-year history of supporting entrepreneurs revenue model High brand and product awareness Expanding international presence Robust cash flow Large, loyal and growing customer base Disciplined shareholder Excepti
Slide 16: Strategic objectives are key to value creation
Strategic objectives are key to value creation Redefine existing Move up market; Maximize our categories while serve customers customers’ success disruptively entering from idea to single through presence adjacencies digit millions in sales and commerce Key metrics Key metrics Key metrics Attach and
Slide 17: 2023 cost savings plan
2023 cost savings plan Decreased Annualized Back-end Workforce operating net cost infrastructure reduction expense savings of integration spend ~$100M 17 © 2023 GoDaddy Inc.
Slide 18: Two segments aligned with our strategic vision
Two segments aligned with our strategic vision Applications & commerce Websites + Marketing Managed WordPress Productivity apps Payments & commerce Core platform Domains Aftermarket Hosting Security 18 © 2023 GoDaddy Inc.
Slide 19: GoDaddy investment thesis
GoDaddy investment thesis Durability Growth Value creation Durable financial framework Profitable Robust Disciplined with potential upside growth at scale free cash flow capital allocation 15%+ 20%+ $3 billion Continued revenue growth NEBITDA FCF/share in share buybacks CAGR CAGR 85% of annual ~$10B
Slide 20: Product excellence
Product excellence Sofia Car SOFIACARHAIR.COM © 2023 GoDaddy Inc.
Slide 21: GoDaddy priorities
Driving commerce Delivering for Innovating in through presence GoDaddy Pros domains GoDaddy priorities 21 © 2023 GoDaddy Inc.
Slide 22: A vision for a one-stop shop
A vision for a one-stop shop Sell anything Sell anywhere Tools to sell anything, anywhere © 2023 GoDaddy Inc. 22 © 2023 GoDaddy Inc.
Slide 23: Driving commerce through presence
Driving commerce through presence Saving our customers time by providing a “one- stop- shop” solution for our small business customers, so they can focus on pursing their dreams and growing their businesses Enabling commerce on every surface through our continuously expanding eCommerce solution: • S
Slide 24: Commerce Revenue Drivers
Commerce Revenue Drivers 2.3% + $0.30 online 2.3% in store Hardware & Software Sales Attach in W+M & Partnership & Reseller Managed WordPress Agreement 24 © 2023 GoDaddy Inc.
Slide 25: Any channel, one solution
Any channel, one solution Easy Advanced Payments & ecommerce site online store Point-of-sale Starter Customer Large SMB (Advanced) (Easy) Managed WordPress W + M Suite Managed Website Builder WooCommerce Stores Marketing, messaging & channel sales Commerce data & services capabilities Sell across Pa
Slide 26: Commerce launched in the U.S. on every surface
Commerce launched in the U.S. on every surface Website (W+M & WordPress) pay.domain.com Messag ing Events Physical store 26 © 2023 GoDaddy Inc.
Slide 27: Delivering for GoDaddy Pros
Delivering for GoDaddy Pros Our 1.5M Pro’s loyalty depends upon trust –that the sites they build are fast, always- on and secure We pride ourselves in providing the tools that empower Pro’s to build and manage sites, collaborate with their client s and ultimately grow their own businesses Providing
Slide 28: Innovating in domains
Innovating in domains Expanded bundling offerings, leading to increased product attach for both new and existing customers Differentiated Payable Domains solution enabled by default to all US domains customers, allowing for the acceptance of payments as soon as their domain is created, without the r
Slide 29: Harnessing the power of AI
Harnessing the power of AI We see AI as one more tool in our arsenal that will save our customer's precious time, time better spent running their own businesses From website building to customer care, AI and machine learning technologies have long been implemented across the GoDaddy ecosystem Genera
Slide 30: The numbers
The numbers Laura Font Moka Design MOKA.DESIGN © 2023 GoDaddy Inc.
Slide 31: Q1 2023 results
Q1 2023 results Bookings Revenue Normalized EBITDA Unlevered Free Free Cash Flow 4% increase 3% increase (NEBITDA) Cash Flow (uFCF) (FCF) 5% constant currency 5% constant currency 11% increase 6% increase ~Flat $1,199M $1,156M $1,036M $1,003M $304M $250M $287M $259M $259M $226M $6.19 24% $5.25 23% Q
Slide 32: Bookings
Bookings 4% increase Trailing twelve months 5% constant currency $4,412M $4,414M $4,457M $4,299M $4,363M $4,232M $1,199M $1,156M 4% 10% CAGR Q1 2022 Q1 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Represents two-year revenue CAGR. 32 © 2023 GoDaddy Inc.
Slide 33: Consistent revenue growth
Consistent revenue growth 3% increase Trailing twelve months 5% constant currency $4,071M $4,091M $4,125M $4,002M $3,917M $3,816M $1,036M $1,003M 10% CAGR Q1 2022 Q1 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Represents two-year revenue CAGR. 33 © 2023 GoDaddy Inc.
Slide 34: Applications & commerce revenue
Applications & commerce revenue Q1 2023 revenue Growth levers 12% increase | 39% Segment EBITDA $338M $303M New customers International expansion Average revenue Annualized recurring per user (ARPU) revenue (ARR) Q1 2022 Q1 2023 GMV/GPV Subscriptions Website building + Commerce + Payments + Producti
Slide 35: Core platform revenue
Core platform revenue Q1 2023 revenue Growth levers ~Flat | 27% Segment EBITDA $700M $698M New customers Average revenue per user (ARPU) Leveraging market-leading position in domain registration Q1 2022 Q1 2023 International expansion Domains | Aftermarket | Hosting | Security 35 © 2023 GoDaddy Inc.
Slide 36: Growing NEBITDA and expanding margin
Growing NEBITDA and expanding margin 11% increase Trailing twelve months $1,013M $1,037M $966M $1,001M $872M $906M 25% 25% 24% 24% $250M 23% 23% $226M 24% 23% 18% CAGR Q1 2022 Q1 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 NEBITDA Margin NEBITDA Margin Represents two-year Normalized EBITDA
Slide 37: Unlevered free cash flow
Unlevered free cash flow 6% increase Trailing twelve months $1,096M $1,113M $1,061M $1,016M $960M $979M $304M $287M 9% 10% CAGR Q1 2022 Q1 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Represents two-year uFCF CAGR. 37 © 2023 GoDaddy Inc.
Slide 38: Durable free cash flow growth
Durable free cash flow growth Free cash flow per share up 18% Free cash flow Trailing twelve months $969M $969M $940M $898M $856M $861M $259M $259M $6.20 $6.19 $5.96 $6.19 $5.67 $5.25 $5.25 $5.07 17% CAGR Q1 2022 Q1 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 TTM FCF per share FCF per share
Slide 39: Bridge to top-line double-digit growth
Bridge to top-line double-digit growth ~Double- digit growth 5% 2023 g uide FX impact in Divestiture of Aftermarket ARPU PY deferred non- core compare expansion revenue hosting assets 2023 exit rate Illustrative depiction. Assumes no material change in FX. 39 © 2023 GoDaddy Inc.
Slide 40: Global footprint
$341M $330M Q1 2023 Q1 2022 Global footprint Q1 2023 International revenue 3% increase | 7% constant currency 40 © 2023 GoDaddy Inc.
Slide 41: Strong ARR, GPV and GMV growth signal higher customer lifetime value
Strong ARR, GPV and GMV growth signal higher customer lifetime value Applications & Core commerce platform ARR $1.3B (+9% Y/Y) $2.3B (+1% Y/Y) Create & grow $450M (+10% Y/Y) ARR GPV +$1B Dr. James Bogash GMV $28B (+18% Y/Y) LifeCare Chiropractic LIFECARECHIROPRACTIC.COM Annualized recurring revenue
Slide 42: Growth model – operating leverage
Driving innovation Growth model – operating leverage while delivering Investing in future growth and delivering margin expansion margin accretion Operating expenses — % of revenue Sources of operating leverage: 78% 80% 78% 77% 75% Cash flow positive business 9% 9% 7% 7% 7% General & Administrative
Slide 43: Balance sheet and liquidity
Balance sheet and liquidity Leverage ratio Interest rate exposure Fixed Variable Total liquidity of $1.9 billion 87% 13% 2.8X $892 million in cash and 2.7X cash equivalents 2.6X $1.0 billion undrawn revolver $3.0 billion in net debt Variable Fixed Net leverage ~2.7x Term loan Maturity $729M 2027
Slide 44: Capital return strategy
Capital return strategy Cumulative shares repurchased Our capital allocation strategy remains unchanged Completed $1.4B in share buybacks $1.4B under current $3B authorization $1.3B Reduced fully diluted share count by approximately 11% since 168.7 inception of $3B authorization On target for the 15
Slide 45: Strong customer base and growing ARPU
Strong customer base and growing ARPU Customer ARPU $197 21.0M $190 Q1 2023 20.9M Q1 2023 Q1 2022 Q1 2022 45 © 2023 GoDaddy Inc.
Slide 46: Solid cohort performance continues to provide durable growth
Solid cohort performance continues to provide durable growth and cash flow generation 85% of total revenue generated from customers in our base Cohorts 2022 2021 2020 2019 2018 Pre-2018 2018 2019 2020 2021 2022 46 © 2023 GoDaddy Inc.
Slide 47: Consistent cohort retention
Consistent cohort retention Stable customer retention rates, with retention of 3+ year customers increasing 93% 93% 93% 92% 92% Retention rate 85% 85% 85% 85% 85% 2018 2019 2020 2021 2022 Total Customers with GDDY for 3+ years 47 © 2023 GoDaddy Inc.
Slide 48: Outlook
Outlook Q2 2023 2023 Revenue $1.045B -$1.065B $4.250B - $4.325B Segment growth rates Applications & commerce 8% -10% 8% -10% Core platform 1% - 3% 2% - 4% NEBITDA margin ~25% ~26% Unlevered free cash flow $1.2B+ Free cash flow $1.0B+ Nikki Quittner Test Before You Invest TESTBEFOREYOUINVEST.COM.AU S
Slide 49: Appendix
Appendix Orlando Blanco Visualist Photography VISUALIST.BIZ © 2023 GoDaddy Inc.
Slide 50: Non-GAAP reconciliation: NEBITDA
Non-GAAP reconciliation: NEBITDA Three months ended March 31 Reconciliation of NEBITDA ($M) 2023 2022 Net income $47.4 $68.6 Depreciation and amortization 48.5 48.2 Equity-based compensation expense 71.6 61.2 Interest expense, net 38.0 33.2 Acquisition-related expenses 5.0 7.7 Restructuring and othe
Slide 51: Non-GAAP reconciliation: Trailing twelve-months NEBITDA
Non-GAAP reconciliation: Trailing twelve-months NEBITDA Reconciliation ($M) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net income (loss) $242.8 $300.6 $344.2 $346.5 $352.9 $331.7 Depreciation and amortization 199.6 198.8 197.3 195.0 194.6 194.9 Equity-based compensation expense 207.9 216.5 231.
Slide 52: Non-GAAP reconciliation: Free cash flow and unlevered free cash flow
Non-GAAP reconciliation: Free cash flow and unlevered free cash flow Three months ended March 31 Reconciliation ($M) 2023 2022 Net cash provided by operating activities $270.3 $250.9 Capital expenditures (22.8) (12.3) Cash paid for acquisition-related costs 3.1 18.1 Cash paid for restructuring and o
Slide 53: Non-GAAP reconciliation: Trailing twelve months free cash flow
Non-GAAP reconciliation: Trailing twelve months free cash flow Reconciliation ($M) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net cash provided by operating activities $829.3 $858.9 $900.4 $943.9 $979.7 $999.1 Capital expenditures (51.1) (54.4) (60.2) (60.1) (59.7) (70.2) Cash paid for acquisit
Slide 54: Non-GAAP reconciliation: Trailing twelve months unlevered free cash flow
Non-GAAP reconciliation: Trailing twelve months unlevered free cash flow Reconciliation ($M) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net cash provided by operating activities $829.3 $858.9 $900.4 $943.9 $979.7 $999.1 Capital expenditures (51.1) (54.4) (60.2) (60.1) (59.7) (70.2) Cash paid fo
Slide 55: Non-GAAP reconciliation: net debt
Non-GAAP reconciliation: net debt Reconciliation ($M) March 31, 2023 Current portion of long-term debt $18.3 Long-term debt 3,809.6 Unamortized original issue discount and debt issuance costs 67.1 Total debt $3,895.0 Less: cash & cash equivalents (892.4) Net debt $3,002.6 55 © 2023 GoDaddy Inc.
Slide 56: Constant currency reconciliation
Constant currency reconciliation Three months ended March 31 Reconciliation ($M) 2023 Bookings $1,199.2 Constant currency adjustment 18.9 Constant currency bookings $1,218.1 Revenue $1,036.0 Constant currency adjustment 13.8 Constant currency revenue $1,049.8 56 © 2023 GoDaddy Inc.
Slide 57: Non-GAAP reconciliation: Operating expenses
Non-GAAP reconciliation: Operating expenses Reconciliation of Operating Expense ($M) 2018 2019 2020 2021 2022 Cost of revenue $839.9 $1,026.8 $1,158.6 $1,372.2 $1,484.5 Equity-based compensation: cost of revenue — (0.4) (0.7) (0.9) (1.5) Cost of revenue, net $839.9 $1,026.4 $1,157.9 $1,371.3 $1,483.
Slide 58: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics 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 o
Slide 59: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics Net debt We define net debt as total debt less cash and cash equivalents. 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 managem
Slide 60: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics 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
Slide 61: Our leadership team
Our leadership team Aman Bhutani Chief Executive Mark McCaffrey Chief Financial Michele Lau Chief Legal Officer Officer Officer Monica Bailey Roger Chen Fara Howard Charles Beadnall Chief People Chief Operating Chief Marketing Chief Technology Officer Officer Officer Officer Osama Bedier Auguste Gol