Slide 1: Q3 2024 Earnings Results
Q3 2024 Earnings Results October 30, 2024 Angel Retonda It's Barking Good ITSBARKINGGOOD.COM ©© 2024 2024 GoDaddy GoDaddy Inc. 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: Our vision, mission and strategy
Our vision Radically shift the global economy toward life-fulfilling entrepreneurial ventures. Our mission Empower entrepreneurs everywhere, making opportunity more inclusive for all. Our strategy Everyday entrepreneurs trust their ideas with us. We guide them to build their business digitally. Our
Slide 4: Q3 progression towards GoDaddy's North Star
Q3 progression towards GoDaddy’s North Star 29% 20% 400 bps+ Free cash flow A&C bookings Normalized growth growth EBITDA margin expansion Angel Retonda It's Barking Good ITSBARKINGGOOD.COM All comparisons are year-over-year. 4 © 2024 GoDaddy Inc.
Slide 5: Key initiatives: growth & margin drivers
Key initiatives: growth & margin drivers Q3 2024 highlights Pricing & Seamless Cost Commerce bundling experience optimization • Key contributor to • Launched GoDaddy • Positive adoption • Rolled out Gen AI 20% A&C bookings Digital Marketing trends in new SAAS conversational bots growth Suite plans:
Slide 6: Key initiatives: growth & margin drivers
Key initiatives: growth & margin drivers Q3 2024 highlights Pricing & Seamless Cost Commerce bundling experience optimization • Key contributor to • Launched GoDaddy • Positive adoption • Rolled out Gen AI 20% A&C bookings Digital Marketing trends in new SAAS conversational bots growth Suite plans i
Slide 7: GoDaddy Airo
Payable Domains GoDaddy Airo Security Paylinks Identity ~3 million new customers Marketplaces have discovered Airo, with Domain 50%+ customers engaging Payments Logo Now available in 180+ Commerce countries worldwide Email In-store POS 40%+ of W+M subscriptions in Q3 originated with Airo Hosting Con
Slide 8: Expanding the Airo experience across the GoDaddy ecosystem
Expanding the Airo experience across the GoDaddy ecosystem Fast-tracking our customers’ journey from product discovery to engagement to monetization Identity Presence Commerce Care 8 © 2024 GoDaddy Inc.
Slide 9: GoDaddy investment thesis
GoDaddy investment thesis Delivering long-term shareholder value Sustaining strong growth in our Applications & Commerce segment Driving margin expansion with our seamless technology platform Angel Retonda It's Barking Good Delivering compounding ITSBARKINGGOOD.COM free cash flow Executing a discipl
Slide 10: Key strategic focus
Key strategic focus Enhancing our pricing & bundling capabilities Removing friction through seamless experiences Driving better conversion, attach and retention Angel Retonda It's Barking Good ITSBARKINGGOOD.COM 10 © 2024 GoDaddy Inc.
Slide 11: Q3 progression towards GoDaddy's North Star
Q3 progression towards GoDaddy’s North Star $363M free cash flow 144M fully diluted shares outstanding 16% 32% A&C revenue growth Normalized EBITDA margin Angel Retonda It's Barking Good ITSBARKINGGOOD.COM 11 © 2024 GoDaddy Inc.
Slide 12: Q3 2024 revenue
Q3 2024 revenue 7% revenue growth with a ~300 bps mix shift trending towards increasing A&C revenue Applications & Core Commerce Platform $1,148M $423M Q3 2024 revenue $725M 16% growth 7% growth 3% growth 37% of revenue 63% of revenue 12 © 2024 GoDaddy Inc.
Slide 13: Impressive growth in high-margin Applications & Commerce
Impressive growth in high-margin Applications & Commerce A&C ARR up 15% to $1.6B Q3 2024 revenue 16% increase | ~350 bps of segment EBITDA Growth levers Metrics margin improvement $423M Product attach Customers with 2+ products $363M International expansion International revenue 46% Pricing & bundli
Slide 14: Core Platform delivers consistent stable base
Core Platform delivers consistent stable base Core Platform ARR up 4% to $2.4B Q3 2024 revenue 3% increase | ~350 bps of segment EBITDA Growth levers Metrics margin improvement Demand Customers $725M $706M Pricing ARPU 33% Subscriptions ARR 30% International expansion International revenue Q3 2023 Q
Slide 15: Q3 2024 financial results
Q3 2024 financial results Revenue ARPU Customers $1,148M $215 $1,070M $200 21M 21M 7% 8% growth growth Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 15 © 2024 GoDaddy Inc.
Slide 16: Accelerating margin expansion and improved profitability
Accelerating margin expansion and improved profitability Q3 NEBITDA Annual NEBITDA 400 bps+ margin expansion 800 bps+ cumulative margin expansion $367M $1,134M $296M $1,013M ~30% $872M 27% 32% 25% 28% 23% 16% CAGR 2021 2022 2023 2024E Q3 2023 Q3 2024 NEBITDA Margin NEBITDA Margin Estimated cumulativ
Slide 17: Q3 2024 financial results
Q3 2024 financial results Unlevered free Free Bookings Revenue NEBITDA cash flow cash flow $1,242M $1,148M $1,139M $399M $1,070M $367M $363M $320M 9% 7% $296M 24% 25% 29% $280M growth growth growth growth growth Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 17 © 202
Slide 18: Multi-year track record of delivering strong free cash flow growth
Multi-year track record of Q3 free cash flow Annual free cash flow delivering strong free cash $1,325M+ flow growth $1,084M $363M $969M $856M $280M 29% growth 13% CAGR Q3 2023 Q3 2024 2021 2022 2023 2024E Represents three-year free cash flow CAGR. 18 © 2024 GoDaddy Inc.
Slide 19: Disciplined capital allocation strategy to drive shareholder returns
Disciplined capital allocation Cumulative shares repurchased strategy to drive $3.2B shareholder $2.6B returns $3.2B share buybacks completed under current authorizations, $0.8B $1.3B remaining 39.4M shares repurchased 169M 23% reduction in gross 144M shares outstanding since January 2022 2022 2023
Slide 20: Strong balance sheet and liquidity
Strong balance Fixed interest rates sheet and Leverage ratio providing stability liquidity Fixed Variable 2.8X 87% 13% $0.8B cash 2.7X 2.0X $1.8B total liquidity $3.1B in net debt Term loan Maturity $1.5B 2029 $1.0B 2031 Unsecured notes Maturity $600M 2027 2022 2023 Q3 2024 $800M 2029 As of Septembe
Slide 21: Driving durable growth & expanding margins, generating attractive cash flow
Driving durable growth & expanding margins, generating attractive cash flow Outlook Q4 2024 2024 Revenue $1.165B - $1.185B $4.545B - $4.565B Segment growth rates: Applications & Commerce Mid-teens Mid-teens Core Platform Low single-digits Low single-digits Sarah Fung NEBITDA margin ~31% ~30% The Hul
Slide 22: Delivered at or ahead of all Q3 2024 targets
Delivered at or ahead of all Q3 2024 targets Growth/ Key metrics Q3 2024 Q3 2023 Q3 Guidance Expansion Revenue $1.15B $1.07B 7% $1.13B - $1.15B Applications & Commerce revenue $423M $363M 16% Mid-teens Core Platform revenue $725M $706M 3% Low single-digits Normalized EBITDA margin 32% 28% 400 bps+ ~
Slide 23: 3-year path towards GoDaddy's North Star
3-year path towards GoDaddy’s North Star Maximizing free cash flow over the long term 6%-8% ~33% $4.5B+ Annual revenue growth 2026 full year normalized Cumulative free cash flow 2024 -2026 EBITDA margin through 2026 23 © 2024 GoDaddy Inc.
Slide 24: Q3 2024 Earnings Results — Appendix
Q3 2024 Earnings Results — Appendix October 2024 Angel Retonda It's Barking Good ITSBARKINGGOOD.COM © 2024 GoDaddy Inc.
Slide 25: Aftermarket revenue
Aftermarket revenue Transactional business subject to global macro-economic conditions Q3 aftermarket revenue Annual aftermarket revenue ~Flat $107M $106M $438M $436M $414M $252 $218 $217 $212 $191 Q3 2023 Q3 2024 2021 2022 2023 2024E ATV Average Transaction Value (ATV) 25 © 2024 GoDaddy Inc.
Slide 26: NEBITDA & NEBITDA Margin
Non-GAAP reconciliation: NEBITDA & NEBITDA Margin Three months ended September 30, Reconciliation of NEBITDA ($M) 2024 2023 Net income $190.5 $131.0 Depreciation and amortization 32.8 40.6 Equity-based compensation expense 74.4 76.2 Interest expense, net 33.2 39.8 Acquisition-related expenses, net o
Slide 27: NEBITDA & NEBITDA Margin
Non-GAAP reconciliation: NEBITDA & NEBITDA Margin Year ended December 31, Reconciliation of NEBITDA ($M) 2021 2022 2023 Net income $242.8 $352.9 $1,375.6 Depreciation and amortization 199.6 194.6 171.3 Equity-based compensation expense1 207.9 264.4 294.0 Interest expense, net 124.9 135.0 155.4 Acqui
Slide 28: Free Cash Flow & Unlevered Free Cash Flow
Non-GAAP reconciliation: Free Cash Flow & Unlevered Free Cash Flow Three months ended September 30, Reconciliation of free cash flow ($M) 2024 2023 Net cash provided by operating activities $355.2 $281.6 Capital expenditures (5.0) (9.4) Cash paid for acquisition-related costs 0.1 0.8 Cash paid for r
Slide 29: Free Cash Flow
Non-GAAP reconciliation: Free Cash Flow Year ended December 31, Reconciliation of free cash flow ($M) 2021 2022 2023 Net cash provided by operating activities $829.3 $979.7 $1,047.6 Capital expenditures (51.1) (59.7) (42.0) Cash paid for acquisition-related costs1 64.9 37.9 11.2 Cash paid for restru
Slide 30: Net Debt
Non-GAAP reconciliation: Net Debt Reconciliation of net debt ($M) September 30, 2024 Current portion of long-term debt $16.5 Long-term debt 3,783.6 Unamortized original issue discount and debt issuance costs 59.9 Total debt $3,860.0 Less: cash and cash equivalents (767.1) Less: short-term investment
Slide 31: Constant Currency
Reconciliation: Constant Currency Reconciliation of constant currency ($M) September 30, 2024 Revenue $1,147.6 Constant currency adjustment 0.2 Constant currency revenue $1,147.8 Bookings $1,241.7 Constant currency adjustment 4.1 Constant currency bookings $1,245.8 31 © 2024 GoDaddy Inc.
Slide 32: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics 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
Slide 33: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics Net debt is defined 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 issuanc
Slide 34: Q3 2024 Earnings Results
Q3 2024 Earnings Results October 30, 2024 Angel Retonda It's Barking Good ITSBARKINGGOOD.COM © 2024 © GoDaddy Inc. 2024 GoDaddy Inc.