Slide 1: Q1 2024 Earnings Results
Q1 2024 Earnings Results May 2, 2024 ©© 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: 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: Q1 progression towards GoDaddy's North Star
Q1 progression towards GoDaddy's North Star 26% 22% +400 bps Free cash Applications & Commerce Normalized EBITDA flow growth bookings growth margin expansion All comparisons are year-over-year. 4 © 2024 GoDaddy Inc.
Slide 5: Key initiatives: growth & margin drivers
Key initiatives: growth & margin drivers Q1 2024 highlights Pricing & bundling Seamless experience Commerce Leveraging our vast network of Removing friction out of every Unlocking value across our base to data to create dynamic piece of the Entrepreneur’s Wheel drive strong growth opportunitie
Slide 6: Deploying the power of GoDaddy Airo throughout our ecosystem
Deploying the power of GoDaddy AiroTM throughout our 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 6 © 2024 GoDaddy Inc.
Slide 7: At GoDaddy, we partner with our customers
Payable Domains At GoDaddy, Paylink Security we partner with Identity Marketplaces Domain our customers at every point Payments Logo on the Commerce Entrepreneur’s In-store POS Email Wheel Hosting Conversations Websites Online Store Presence Marketing Content 7 © 2024 GoDaddy Inc.
Slide 8: Global AI domain search
Global AI domain search GoDaddy AiroTM : Going Global Argentina Brazil France Germany Italy Singapore 8 © 2024 GoDaddy Inc.
Slide 9: Care & Services model boosted by GABI
Our long-standing best-in-class Care & Services model boosted by GABI 9 © 2024 GoDaddy Inc.
Slide 10: GoDaddy investment thesis
GoDaddy investment thesis Sustained strong growth in our Applications & Commerce segment Continued margin expansion driven by our seamless technology platform and focus on operational discipline Coupling strong free cash flow with disciplined capital allocation to drive long-term shareholder value 1
Slide 11: Q1 progression towards GoDaddy's North Star
Q1 progression towards GoDaddy's North Star $327M free cash flow 145.6M fully diluted shares outstanding 13% 28% Applications & Commerce Normalized EBITDA revenue growth Y/Y margin 11 © 2024 GoDaddy Inc.
Slide 12: Key strategic focus
Key strategic focus Key strategic focus Enhancing our bundling & Enhancing our bundling & pricing capabilities pricing capabilities Removing friction through Removing friction through seamless experiences seamless experiences Building customer value with Building customer value with our one-stop-sho
Slide 13: Q1 2024 revenue
Q1 2024 revenue 7% revenue growth with mix shift trending towards increasing A&C revenue Applications & Core Commerce Platform $1,109M $383M Q1 2024 revenue $725M 13% Y/Y growth 7% Y/Y growth 4% Y/Y growth ~35% of revenue ~65% of revenue 13 © 2024 GoDaddy Inc.
Slide 14: Q1 2024 Financial Results
Q1 2024 Financial Results Revenue Average Revenue Per User Customers 7% Increase reported (ARPU) Flat & constant currency 5% Increase 2+ products > 50% ~85% customer retention $1,109M $1,036M 7% growth $206 21.0M 21.0M $197 5% growth Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 14 © 2024 GoDaddy
Slide 15: Impressive growth in high-margin Applications & Commerce
Impressive growth in high-margin Applications & Commerce A&C ARR up 13% to $1.5B Q1 2024 revenue 13% increase | +300 bps of segment EBITDA Growth levers Metrics margin improvement Y/Y Product attach Customers with 2+ products $383M International expansion International revenue $338M 42% Bundling/pri
Slide 16: Core Platform segment delivers consistent stable base
Core Platform segment delivers consistent stable base Core Platform ARR up 3% to $2.3B Q1 2024 revenue 4% increase | ~300 bps of segment EBITDA Growth levers Metrics margin improvement Y/Y $725M Demand New customers $698M Pricing ARPU 30% Subscriptions ARR 27% International expansion International r
Slide 17: Aftermarket revenue
Aftermarket revenue Transactional business subject to global macro-economic conditions Q1 2024 Revenue Annual Aftermarket Revenue 12% increase $438M $436M $122M $414M $109M $218 $217 $261 $191 $217 Q1 2023 Q1 2024 2021 2022 2023 2024E Average Transaction Value (ATV) 17 © 2024 GoDaddy Inc.
Slide 18: Accelerating margin expansion and improved profitability
Accelerating margin expansion and improved profitability Targeting Q4 2024 NEBITDA margin of ~31% Normalized EBITDA Annual normalized EBITDA 25% Increase | +400 bps margin expansion Y/Y $313M $1,134M $1,013M ~29% $250M $872M 28% 27% 25% 24% 23% 14% CAGR 2021 2022 2023 2024E Q1 2023 Q1 2024 NEBITDA M
Slide 19: Q1 2024 Financial Results
Q1 2024 Financial Results Bookings Revenue Normalized EBITDA Unlevered free Free cash flow 9% Increase reported & 7% Increase reported & 25% Increase cash flow 26% Increase constant currency constant currency 28% margin 18% Increase $1,313M $1,109M $1,199M $359M $327M $1,036M $313M $304M 9% 7% 25% 1
Slide 20: Multi-year track record of delivering strong free cash flow
Multi-year track Free cash flow Annual free cash flow record of 26% Increase delivering strong free cash flow growth and share $1,084M buybacks despite $327M $969M rising interest $259M 26% $856M rates growth 13% CAGR Q1 2023 Q1 2024 2021 2022 2023 2024E Represents three-year free cash flow CAGR. 20
Slide 21: Disciplined capital allocation strategy to drive shareholder returns
Disciplined capital allocation Cumulative Shares Repurchased as of: strategy to drive shareholder $2.9B returns $2.6B Completed $2.9B in share buybacks under current authorizations $1.3B Repurchased 37.0 million shares, representing a 22% 168.7M reduction of shares 145.6M outstanding since January 2
Slide 22: Strong balance sheet and ample liquidity
Strong balance Fixed interest rates sheet and Leverage ratio providing stability ample liquidity Fixed Variable 87% 13% Total liquidity of $1.7B* 2.8X 2.7X Finished Q1 with $664M in cash 2.4X $3.2B in net debt Term loan Maturity $722M 2027 $1.75B 2029 Unsecured notes Maturity $600M 2027 $800M 2029 2
Slide 23: Driving durable growth & expanding margins, generating attractive cash flow
Driving durable growth & expanding margins, generating attractive cash flow Outlook Q2 2024 2024 Revenue $1.10B - $1.12B $4.50B - $4.56B Segment growth rates: Applications & Commerce Low – mid teens Low – mid teens Core Platform Low single digits Low single digits NEBITDA margin ~28% ~29% Unlevered
Slide 24: Delivered at or ahead of Q1 2024 targets
Delivered at or ahead of Q1 2024 targets Growth/ Key Metrics Q1 2024 Q1 2023 Q1 Guidance Expansion Revenue $1.109B $1.036B 7% $1.085 - $1.105B Applications & Commerce Revenue $383M $338M 13% Low – mid teens Core Platform Revenue $725M $698M 4% Low single digits Normalized EBITDA Margin 28% 24% +400
Slide 25: Q1 2024 Earnings Results — Appendix
Q1 2024 Earnings Results — Appendix May 2024 © 2024 GoDaddy Inc.
Slide 26: NEBITDA & NEBITDA Margin
Non-GAAP reconciliation: NEBITDA & NEBITDA Margin Three months ended March 31, Reconciliation of NEBITDA ($M) 2024 2023 Net income $401.5 $47.4 Depreciation and amortization 37.2 48.5 Equity-based compensation expense1 71.0 71.6 Interest expense, net 34.7 38.0 Acquisition-related expenses 0.9 4.4 Re
Slide 27: NEBITDA & NEBITDA Margin
Non-GAAP reconciliation: NEBITDA & NEBITDA Margin Year ended December 31, Reconciliation of NEBITDA ($M) 2021 2022 2023 Net income $242.8 $352.9 $1,375.6 Depreciation and amortization 199.6 194.6 171.3 Equity-based compensation expense1 207.9 264.4 294.0 Interest expense, net 124.9 135.0 155.4 Acqui
Slide 28: Free Cash Flow
Non-GAAP reconciliation: Free Cash Flow Three months ended March 31 Reconciliation of free cash flow ($M) 2024 2023 Net cash provided by operating activities 297.2 270.3 Capital expenditures (4.4) (22.8) Cash paid for acquisition-related costs 15.8 1.4 Cash paid for restructuring and other charges1
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) March 31, 2024 Current portion of long-term debt 17.6 Long-term debt 3,794.8 Unamortized original issue discount and debt issuance costs 57.5 Total debt $3,869.9 Less: cash & cash equivalents (664.0) Less: short-term investments - Net
Slide 31: Constant Currency
Reconciliation: Constant Currency Three months ended March 31, Reconciliation of constant currency ($M) 2024 Revenue 1,108.5 Constant currency adjustment (0.5) Constant currency revenue $1,108.0 Bookings 1,312.7 Constant currency adjustment (0.1) Constant currency bookings $1,312.6 31 © 2024 GoDaddy
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 issuance
Slide 34: Q1 2024 Earnings Results
Q1 2024 Earnings Results May 2, 2024 © 2024 © GoDaddy Inc. 2024 GoDaddy Inc.