Slide 1: Q4 2023 & Full Year Financial Results
Q4 2023 & Full Year Financial Results Billie Dumaliang Masungi Georeserve February 13, 2024 MASUNGIGEORESERVE.COM © 2024 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: Our vision, mission and strategy
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. Our strategy: Everyday entrepreneurs trust their ideas with us. We guide them to build their business di
Slide 4: Strong 2023 financial performance
Strong 2023 financial performance $4.3B $1.1B Total 2023 Total 2023 free revenue cash flow $1.1B 144.6M NEBITDA at Fully diluted 27% margin shares outstanding As of December 31, 2023 4 © 2024 GoDaddy Inc.
Slide 5: Delivered on 2023 financial priorities
Delivered on 2023 financial priorities Growth/ Key Metrics FY 2023 FY 2022 Guidance* Expansion Applications & Commerce Revenue $1.430B $1.280B 12% 8% - 10% Normalized EBITDA Margin 27% 25% ~200 bps ~26% Free Cash Flow $1.084B $969M 12% $1.0B+ Fully Diluted Shares Outstanding 144.6M 156.2M N/A N/A *R
Slide 6: Partnering with our customers
Partnering Marketplaces and social media Messaging commerce Identity with our Domain customers Payments Logo at every point Commerce Email on the Create posts Link in Bio Entrepreneur’s Online store Wheel Physical store Website Hosting and security Offline point-of-sale Presence Customer relationshi
Slide 7: Incremental operating leverage
Operating leverage: simplified tech stack 1 Reducing server footprint 2 Expanding access to global talent Incremental operating Continuing innovations in internal 3 technologies & AI leverage 4 Leveraging powerful data from our software platform 7 © 2024 GoDaddy Inc.
Slide 8: Deploying the power of Airo throughout the GoDaddy Ecosystem
Deploying the power of Airo throughout the GoDaddy Ecosystem Fast-tracking our customers’ journey from product discovery to engagement to monetization Increased bundling opportunities | Increased product attach Domains Websites Commerce Managed WordPress Care 8 © 2024 GoDaddy Inc.
Slide 9: Key strategic focus
Key strategic focus Sustained strong growth in our Applications & Commerce segment Continued margin expansion driven by our seamless technology platform and focus on operational discipline Compounding Free Cash Flow; reducing fully diluted shares outstanding; driving long-term Elias Dabbas Monument
Slide 10: Accelerating profitability through year end
Accelerating profitability through year end $4.3B $1.1B Total 2023 Total 2023 free revenue cash flow $1.1B 144.6M NEBITDA at Fully diluted 27% margin shares outstanding Elias Dabbas Monument Projects MONUMENTPROJECTS.COM.AU As of December 31, 2023 10 © 2024 GoDaddy Inc.
Slide 11: Impressive growth in high-margin Applications & Commerce segment
Impressive growth in high-margin Applications & Commerce segment $1.4B+ business driving accelerated profitability Q4 2023 revenue Growth levers Metrics 13% increase | ~300 bps of segment EBITDA margin improvement Product attach Customers with 2+ products $377M $333M International expansion Internat
Slide 12: Core Platform segment delivers consistent stable base
Core Platform segment delivers consistent stable base Comparative growth impacted by divestitures of two of our hosting brands Q4 2023 revenue Growth levers Metrics 2% increase | ~250 bps of segment EBITDA margin improvement Demand New customers $723M $707M Pricing ARPU 32% Subscriptions ARR Interna
Slide 13: Maturing Aftermarket revenue
Maturing Aftermarket revenue Transactional business subject to global macro-economic conditions Q4 2023 revenue $438M $436M 14% increase $414M $118M $104M $245M $218 $217 $191 $112 Q4 2022 Q4 2023 2020 2021 2022 2023 Average Transaction Value (ATV) 13 © 2024 GoDaddy Inc.
Slide 14: Global Footprint – International revenue
Global Footprint – International revenue Implementing our successful U.S. playbook globally despite divestiture & migration headwinds 4% increase on reported & constant currency basis $1,381M $1,334M $1,271M $354M $341M $1,105M 8% CAGR Q4 2022 Q4 2023 2020 2021 2022 2023 Represents three-year intern
Slide 15: Accelerating profitability and strong cash flow generation in Q4
Accelerating profitability and strong cash flow generation in Q4 Bookings Revenue Normalized EBITDA Unlevered Free 7% increase 6% increase (NEBITDA) Cash Flow (uFCF) 6% constant currency 6% constant currency 22% increase 46% increase $1,100M $1,124M $324M $347M $1,040M $1,052M $266M 29% $238M 26% Q4
Slide 16: Accelerating margin expansion and improved profitability
Accelerating margin expansion and improved profitability Targeting Q4 2024 NEBITDA margin of ~31% $1,134M $1,013M $324M $266M 27% $872M 25% 29% $722M 23% 26% 22% 16% CAGR Q4 2022 Q4 2023 2020 2021 2022 2023 Quarterly NEBITDA Margin FY NEBITDA Margin Represents three-year normalized EBITDA CAGR. © 20
Slide 17: Driving leverage in technology & development
Driving leverage in technology & development Innovation ~47% Normalized T&D Expense Product Front of site $666M Marketing Tech $635M Care Tech $163M $552M Infrastructure ~53% $160M $466M 16% 16% 16% Cyber 15% 14% 14% Public cloud Platform Data centers Integrations Q4 2022 Q4 2023 2
Slide 18: Multi-year track record of strong free cash flow growth
Multi-year track record of delivering strong free cash flow growth and share buybacks despite rising interest rates 51% increase $1,084M $969M $305M $856M $745M $202M 13% CAGR Q4 2022 Q4 2023 2020 2021 2022 2023 Represents three-year free cash flow CAGR. 18 © 2024 GoDaddy Inc.
Slide 19: Strong balance sheet and ample liquidity
Strong balance Committed to maintaining Fixed Interest rates sheet and ample leverage ratio of 2x-4x providing stability liquidity Fixed Variable 87% 13% Total liquidity of $1.5B* 2.8X 2.7X 2.6X Recent repricings reduce annualized cash interest by $22M Variable Fixed $3.4B in net debt Term loan $724
Slide 20: Disciplined capital allocation strategy to drive shareholder returns
Disciplined capital allocation strategy to drive shareholder returns $2.6B Completed $2.6B in share buybacks under current authorizations Repurchased 34.2 million shares, representing a 20% 168.7M reduction of shares 144.6M outstanding since January 2022 January 2022 February 2024 Fully diluted shar
Slide 21: Durable track record of revenue growth over time
Durable track record of revenue growth over time Full year 2023: 4% growth, 5% constant currency year-over-year $4,254M $4,091M $3,816M $3,317M 9% CAGR 2020 2021 2022 2023 Represents three-year revenue CAGR. 21 © 2024 GoDaddy Inc.
Slide 22: A growing loyal customer base that is spending more with us
A growing loyal customer base that is spending more with us 85% of total revenue generated from customers in our base ARPU Customers 21.0M $203 20.9M $197 Q4 2022 Q4 2023 Q4 2022 Q4 2023 22 © 2024 GoDaddy Inc.
Slide 23: FY 2023 revenue $4.25B
FY 2023 revenue 4% revenue growth including~100 basis point headwind from divestitures & migrations Applications & Commerce Core Platform $1.43B $2.82B 12% Y/Y growth $4.25B ~Flat Y/Y 34% of revenue 66% of revenue 2023 revenue 4% Y/Y growth 23 © 2024 GoDaddy Inc.
Slide 24: FY 2023 Financial Results
FY 2023 Financial Results Bookings Revenue Normalized EBITDA Unlevered Free Free Cash Flow (FCF) 4% increase 4% increase (NEBITDA) Cash Flow (uFCF) 12% increase 5% constant currency 5% constant currency 12% increase 14% increase $4,603M $4,254M $4,414M $4,091M $1,254M $1,134M $1,096M $1,084M $1,013M
Slide 25: Driving durable growth & expanding margins, generating attractive cash flow
Driving durable growth & expanding margins, generating attractive cash flow Outlook Q1 2024 2024 Revenue $1.085B - $1.105B $4.480B - $4.560B Segment growth rates: Applications & Commerce Low – mid teens Low – mid teens Core platform Low single digits Low single digits NEBITDA margin 27% ~29% Unlever
Slide 26: Delivered at or ahead of Q4 2023 targets
Delivered at or ahead of Q4 2023 targets Growth/ Key Metrics Q4 2023 Q4 2022 Guidance Expansion Revenue $1.100B $1.040B 6% $1.095 - $1.115B Applications & Commerce Revenue $377M $333M 13% ~13% Core Platform Revenue $723M $707M 2% 2% - 3% Normalized EBITDA Margin 29% 26% ~400 bps 28%* Unlevered Free
Slide 27: Delivering profitable growth & strong cash generation
Delivering profitable growth & strong cash generation Growth/ Key Metrics FY 2023 FY 2022 Guidance* Expansion Revenue $4.254B $4.091B 4% $4.250 - $4.325B Applications & Commerce Revenue $1.430B $1.280B 12% 8 -10% Core Platform Revenue $2.824B $2.812B - 2 – 4% Normalized EBITDA Margin 27% 25% ~200 bp
Slide 28: Appendices
Appendices 28 © 2024 GoDaddy Inc.
Slide 29: Non-GAAP reconciliation: NEBITDA
Non-GAAP reconciliation: NEBITDA Three months ended Year ended Reconciliation of NEBITDA ($M) December 31 December 31 2023 2022 2023 2022 Net income $1,132.3 $93.8 $1,393.8 $352.9 Depreciation and amortization 38.7 49.5 171.3 194.6 Equity-based compensation1 68.7 71.1 294.0 264.4 Interest expense, n
Slide 30: Non-GAAP reconciliation: NEBITDA
Non-GAAP reconciliation: NEBITDA Reconciliation of NEBITDA ($M) 2020 2021 2022 2023 Net income (loss) $(494.1) $242.8 $352.9 $1,393.8 Depreciation and amortization 202.7 199.6 194.6 171.3 Equity-based compensation expense1 191.5 207.9 264.4 294.0 Interest expense, net 86.9 124.9 135.0 155.4 Acquisit
Slide 31: Non-GAAP reconciliation: NEBITDA
Non-GAAP reconciliation: NEBITDA Reconciliation of NEBITDA ($M) 2020 2021 2022 2023 Net income (loss) $(494.1) $242.8 $352.9 $1,393.8 Depreciation and amortization 202.7 199.6 194.6 171.3 Equity-based compensation expense1 191.5 207.9 264.4 294.0 Interest expense, net 86.9 124.9 135.0 155.4 Acquisit
Slide 32: Non-GAAP reconciliation: Free cash flow
Non-GAAP reconciliation: Free cash flow Three months ended Year ended Reconciliation of free cash flow ($M) December 31 December 31 2023 2022 2023 2022 Net cash provided by operating activities $297.7 $208.0 $1,047.6 $979.7 Capital expenditures (4.0) (17.1) (42.0) (59.7) Cash paid for acquisition-re
Slide 33: Non-GAAP reconciliation: Free cash flow
Non-GAAP reconciliation: Free cash flow Reconciliation of free cash flow ($M) 2020 2021 2022 2023 Net cash provided by operating activities $764.6 $829.3 $979.7 $1,047.6 Capital expenditures (66.5) (51.1) (59.7) (42.0) Cash paid for acquisition-related costs1 27.4 64.9 37.9 11.2 Cash paid for restru
Slide 34: Non-GAAP reconciliation: Net debt
Non-GAAP reconciliation: Net debt Reconciliation of net debt ($M) December 31, 2023 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 $3,876.1 Less: cash & cash equivalents (458.8) Less: short-term investments (
Slide 35: Reconciliation: Constant currency
Reconciliation: Constant currency Three months ended Year ended Reconciliation of constant currency ($M) December 31, 2023 December 31, 2023 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 $4,603.1 Constant currency adju
Slide 36: Non-GAAP reconciliation: Technology & Development
Non-GAAP reconciliation: Technology & Development Reconciliation of Technology & Development ($M) Q4 2022 Q4 2023 Technology & development $206.3 $203.8 Equity-based compensation: technology & development (37.9) (39.2) Acquisition-related costs: technology & development (5.2) (4.8) Normalized techno
Slide 37: Non-GAAP reconciliation: Technology & Development
Non-GAAP reconciliation: Technology & Development Year ended December 31, Reconciliation of Technology & Development ($M) 2020 2021 2022 2023 Technology & development $560.4 $706.3 $794.0 $839.6 Equity-based compensation: technology & development (90.2) (110.0) (140.3) (162.4) Acquisition-related co
Slide 38: 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 39: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics 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. Net debt We define net debt as total debt less cas
Slide 40: Non-GAAP financial measures and other operating and business metrics
Non-GAAP financial measures and other operating and business metrics 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
Slide 41: Q4 2023 & Full Year Financial Results
Q4 2023 & Full Year Financial Results February 13, 2024 Billie Dumaliang Masungi Georeserve MASUNGIGEORESERVE.COM 41 © 2024 GoDaddy Inc.