Slide 1: Q2 2024 Earnings Results
Q2 2024 Earnings Results August 1, 2024 Cherilyn Yazzie Coffee Pot Farms COFFEEPOTFARMS.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: Q2 progression towards GoDaddy's North Star
Q2 progression towards GoDaddy’s North Star 35% 24% 400 bps+ Free cash flow A&C bookings Normalized growth growth EBITDA margin expansion Cherilyn Yazzie Coffee Pot Farms COFFEEPOTFARMS.COM 4 © 2024 GoDaddy Inc.
Slide 5: Deploying the power of the GoDaddy software platform throughout our ecosystem
Deploying the power of the GoDaddy software platform throughout our ecosystem Fast-tracking our customers’ journey from product discovery to engagement to monetization Increased bundling opportunities | Increased product attach Identity Presence Commerce Care 5 © 2024 GoDaddy Inc.
Slide 6: GoDaddy Airo
Payable Domains GoDaddy Airo Paylinks Security Identity Over 1 million new customers Marketplaces Domain have discovered Airo; over 500K engaged in the experience since launch Payments Logo Commerce Rolled out to all new and Email existing customers in our In-store POS English-speaking markets Hosti
Slide 7: Care & Services model boosted by GABI
Our long-standing best-in-class Care & Services model boosted by GABI 7 © 2024 GoDaddy Inc.
Slide 8: Key initiatives: growth & margin drivers
Key initiatives: growth & margin drivers Q2 2024 highlights Pricing & bundling Seamless experience Commerce • Contributed significantly to • Removed friction in purchase • Launched two new SaaS 24% Applications & and renewal paths across plans offering premium Commerce bookings growth multiple produ
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 Delivering compounding free cash flow Executing a disciplined capital allocation framework Samantha Chua Han
Slide 10: Q2 progression towards GoDaddy's North Star
Q2 progression towards GoDaddy’s North Star $323M free cash flow 145M fully diluted shares outstanding 15% 29% A&C revenue growth Normalized EBITDA margin Samantha Chua Hands on Klay HANDSONKLAY.COM 10 © 2024 GoDaddy Inc.
Slide 11: Key strategic focus
Key strategic focus Enhancing our pricing & bundling capabilities Removing friction through seamless experiences Joanne Diver The Backyard Garden Enthusiast BACKYARDGARDENENTHUSIAST.COM.AU Building Driving customer better attach, value with our conversion, one-stop-shop and retention approach Samant
Slide 12: Q2 2024 revenue
Q2 2024 revenue 7% revenue growth with 250 bps mix shift trending towards increasing A&C revenue Applications & Core Commerce Platform $1,124M $406M Q2 2024 revenue $719M 15% growth 7% growth 3% growth ~36% of revenue ~64% of revenue 12 © 2024 GoDaddy Inc.
Slide 13: Q2 2024 financial results
Q2 2024 financial results Revenue ARPU Customers $1,124M $210 $1,048M $199 21M 21M 7% 6% growth growth Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 13 © 2024 GoDaddy Inc.
Slide 14: Impressive growth in high-margin Applications & Commerce
Impressive growth in high-margin Applications & Commerce A&C ARR up 14% to $1.5B Q2 2024 revenue 15% increase | ~300 bps of segment EBITDA Growth levers Metrics margin improvement Product attach Customers with 2+ products $406M International expansion International revenue $352M 44% Pricing & bundli
Slide 15: Core Platform segment delivers consistent stable base
Core Platform segment delivers consistent stable base Core Platform ARR up 2% to $2.3B Q2 2024 revenue 3% increase | ~300 bps of segment EBITDA Growth levers Metrics margin improvement Demand New customers $719M $696M Pricing ARPU 31% Subscriptions ARR 27% International expansion International reven
Slide 16: Accelerating margin expansion and improved profitability
Accelerating margin expansion and improved profitability Q2 NEBITDA Annual NEBITDA 400 bps+ margin expansion ~700 bps cumulative margin expansion $332M $1,134M $1,013M ~29% $265M 29% $872M 27% 25% 25% 23% 16% CAGR 2021 2022 2023 2024E Q2 2023 Q2 2024 NEBITDA Margin NEBITDA Margin Estimated cumulativ
Slide 17: Q2 2024 financial results
Q2 2024 financial results Unlevered free Bookings Revenue Normalized EBITDA Free cash flow cash flow $1,262M $1,124M $1,141M $369M $323M $1,048M $332M $284M 11% 7% $265M 30% 35% 25% $240M growth growth growth growth growth Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 20
Slide 18: Multi-year track record of delivering strong free cash flow growth
Multi-year track record of Free cash flow Annual free cash flow delivering strong free cash flow growth $1,084M $323M $969M $856M $240M 35% growth 13% CAGR Q2 2023 Q2 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 $3.1B shareholder $2.6B returns $3.1B share buybacks completed under current authorizations, $0.9B $1.3B remaining 38.3M shares 169M repurchased 145M 23% reduction of shares outstanding since January 2022 2022 2023 July 2
Slide 20: Strong balance sheet and liquidity
Strong balance Fixed interest rates sheet and Leverage ratio providing stability liquidity Fixed Variable 87% 13% 2.8X $445M cash as of Q2 2.7X $1.4B total liquidity 2.4X $3.4B in net debt 25 bps reduction on $1.0B Term loan Maturity $1.5B 2029 of outstanding principal $1.0B 2031 Unsecured notes Mat
Slide 21: Driving durable growth & expanding margins, generating attractive cash flow
Driving durable growth & expanding margins, generating attractive cash flow Outlook Q3 2024 2024 Revenue $1.13B - $1.15B $4.525B - $4.565B Segment growth rates: Applications & Commerce Mid teens Mid teens Amber Khan-Robinson MokiPops Core Platform Low single digits Low single digits MOKIPOPS.COM NEB
Slide 22: Delivered at or ahead of all Q2 2024 targets
Delivered at or ahead of all Q2 2024 targets Growth/ Key metrics Q2 2024 Q2 2023 Q2 Guidance Expansion Revenue $1.124B $1.048B 7% $1.10B - $1.12B Applications & Commerce revenue $406M $352M 15% Low – mid teens Core Platform revenue $719M $696M 3% Low single digits Normalized EBITDA margin 29% 25% 40
Slide 23: Q2 2024 Earnings Results — Appendix
Q2 2024 Earnings Results — Appendix August 2024 Hannah Manewell Blooms by the Bay Florist BLOOMSBYTHEBAY.COM.AU © 2024 GoDaddy Inc.
Slide 24: Aftermarket revenue
Aftermarket revenue Transactional business subject to global macro-economic conditions Q2 Revenue Annual aftermarket revenue 10% increase $112M $438M $436M $101M $414M $258 $218 $217 $192 $191 Q2 2023 Q2 2024 2021 2022 2023 2024E ATV Average Transaction Value (ATV) 24 © 2024 GoDaddy Inc.
Slide 25: NEBITDA & NEBITDA Margin
Non-GAAP reconciliation: NEBITDA & NEBITDA Margin Three months ended June 30, Reconciliation of NEBITDA ($M) 2024 2023 Net income $146.3 $83.1 Depreciation and amortization 33.1 43.5 Equity-based compensation expense 76.2 77.5 Interest expense, net 34.5 37.4 Acquisition-related expenses, net of reim
Slide 26: NEBITDA & NEBITDA Margin
Non-GAAP reconciliation: NEBITDA & NEBITDA Margin Year ended December 31, Reconciliation of NEBITDA ($M) 2021 2022 2023 Net income $242.8 $352.9 $1,375.6 Depreciation and amortization 199.6 194.6 171.3 Equity-based compensation expense1 207.9 264.4 294.0 Interest expense, net 124.9 135.0 155.4 Acqui
Slide 27: Free Cash Flow and Unlevered Free Cash Flow
Non-GAAP reconciliation: Free Cash Flow and Unlevered Free Cash Flow Three months ended June 30, Reconciliation of free cash flow ($M) 2024 2023 Net cash provided by operating activities $294.8 $198.0 Capital expenditures (2.8) (5.8) Cash paid for acquisition-related costs 0.2 8.2 Cash paid for rest
Slide 28: Free Cash Flow
Non-GAAP reconciliation: Free Cash Flow Year ended December 31, Reconciliation of free cash flow ($M) 2021 2022 2023 Net cash provided by operating activities $829.3 $979.7 $1,047.6 Capital expenditures (51.1) (59.7) (42.0) Cash paid for acquisition-related costs1 64.9 37.9 11.2 Cash paid for restru
Slide 29: Net Debt
Non-GAAP reconciliation: Net Debt Reconciliation of net debt ($M) June 30, 2024 Current portion of long-term debt $17.0 Long-term debt 3,787.7 Unamortized original issue discount and debt issuance costs 61.5 Total debt $3,866.2 Less: cash and cash equivalents (444.9) Less: short-term investments − N
Slide 30: Constant Currency
Reconciliation: Constant Currency Reconciliation of constant currency ($M) June 30, 2024 Revenue $1,124.5 Constant currency adjustment 0.2 Constant currency revenue $1,124.7 Bookings $1,261.9 Constant currency adjustment 5.3 Constant currency bookings $1,267.2 30 © 2024 GoDaddy Inc.
Slide 31: 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 32: 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 33: Q2 2024 Earnings Results
Ashley Johnson Ashytj Creates THEFURLOUGHCHEESECAKE.COM Q2 2024 Earnings Results August 1, 2024 Jaqi Thompson Wright & Nikki Thompson Howard The Furlough Cheesecake THEFURLOUGHCHEESECAKE.COM Yingzi Wang Cacao 70 CACAO70.COM Sarah Babineau La Babineau LABABINEAU.COM Jaqi Thompson Wright & Nikki Thomp