Slide 1: Q2 2023 Financial Results
Q2 2023 Financial Results August 3, 2023 Amy Guzman Binibi © 2023 GoDaddy Inc. BINIBI.CO
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 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. Amy Guzman Binibi BINIBI.CO 3 © 2023 GoDaddy Inc.
Slide 4: Durable and differentiated strategic position
Durable and differentiated strategic position trusted by customers for over 25 years with industry leading brand awareness 21M 85% 11% paying customer Application & Commerce customers retention revenue growth 11% $33B+ ARR growth in gross merchandise Create + Grow products volume (GMV) Stephen Glenn
Slide 5: A vision for a one-stop shop
A vision for a one-stop shop Tools to sell Sell anything Sell anywhere anything, anywhere Natalie Morris Hey Baby Consignment HEYBABYCONSIGNMENT.COM 5 © 2023 GoDaddy Inc.
Slide 6: GoDaddy's AI-powered Digital Guide — Our unique opportunity
GoDaddy’s AI-powered Digital Guide — Our unique opportunity Commerce-enabled Social media personalized website Branding Logo marketing messages 6 © 2023 GoDaddy Inc.
Slide 7: Partnering with customers at every point on the Entrepreneur's Wheel
At GoDaddy, Marketplaces and social media Digital Messaging commerce Identity our goal is to Payments partner with Domain our customers at Logo Connected Email every point on the Commerce Link in Bio Entrepreneur’s Create posts Website Wheel Online store Hosting and security Physical store Offline p
Slide 8: GoDaddy priorities
Driving commerce Delivering for Innovating in through presence GoDaddy Pros domains GoDaddy priorities 8 © 2023 GoDaddy Inc.
Slide 9: GoDaddy priorities
Driving commerce Delivering for Innovating in through presence GoDaddy Pros domains Strong traction in Exclusive AI-powered tools GoDaddy Digital Guide commerce adoption with resulting in faster site bundled with domain both new and existing creation purchase coming soon customers, driving GPV
Slide 10: Key investment highlights
Key investment highlights Loyal base of 21M customers expanding their digital identities with upside to attach more solutions, increase customer lifetime value, and customer retention of 85% Focused on delivering a balanced combination of durable top-line growth, 15%+ NEBITDA CAGR, and 20% FCF per s
Slide 11: Q2 2023 results
Q2 2023 results Bookings Revenue Normalized EBITDA Unlevered Free Free Cash Flow (FCF) 2% increase 3% increase (NEBITDA) Cash Flow (uFCF) 14% per share 3% constant currency 4% constant currency 2% increase 3% increase increase $1,048M $1,141M $1,119M $1,016M $284M $265M $274M $258M $243M $240M 25% 2
Slide 12: Applications & commerce
Applications & commerce ARR: $1.3B (+10% ) | Create & Grow ARR: $465M (+11% ) Q2 2023 revenue Growth levers 11% increase | 41% segment EBITDA margin New customers $352M $317M International expansion Average revenue per user (ARPU) Annualized recurring revenue (ARR) GMV/GPV Q2 2022 Q2 2023 Subscripti
Slide 13: Core platform
Core platform ARR: $2.3B (~Flat ) Q2 2023 revenue Growth levers ~Flat | 27% segment EBITDA margin New customers $698M $696M Average revenue per user (ARPU) Leveraging market-leading position in domain registration International expansion Q2 2022 Q2 2023 Domains | Aftermarket | Hosting | Security 13
Slide 14: Sustainable revenue growth
Sustainable revenue growth 3% increase $4,250M- 4% constant currency $4,325M $4,091M $3,816M $1,048M $1,016M $3,317M 9% CAGR Q2 2022 Q2 2023 2020 2021 2022 2023E Represents revenue CAGR. 14 © 2023 GoDaddy Inc.
Slide 15: Global footprint
$341M $331M Global footprint Q2 2023 International revenue 3% increase | 6% constant currency Q2 2022 Q2 2023 15 © 2023 GoDaddy Inc.
Slide 16: Strong customer base and growing ARPU
Strong customer base and growing ARPU 85% of total revenue is generated from customers in our base Customers ARPU 21.0M $199 20.9M $193 Q2 2022 Q2 2023 Q2 2022 Q2 2023 16 © 2023 GoDaddy Inc.
Slide 17: Growing NEBITDA and expanding margins
Growing NEBITDA and expanding margins ~$1.1B $1,013M $265M 26% $258M $872M 25% $722M 25% 25% 23% 22% 16% CAGR Q2 2022 Q2 2023 2020 2021 2022 2023E NEBITDA Margin NEBITDA Margin Represents Normalized EBITDA CAGR. 17 © 2023 GoDaddy Inc.
Slide 18: Durable free cash flow growth
Durable free cash flow growth Multi-year track record of delivering strong free cash flow per share growth $1B+ $969M $7.25 $856M $243M $240M $6.20 $745M $6.44 $5.07 $5.67 19% $4.31 CAGR Q2 2022 Q2 2023 2020 2021 2022 2023E TTM FCF per share FCF per share Represents free cash flow per share CAGR. 18
Slide 19: Capital return strategy
Capital return strategy Cumulative shares repurchased Capital allocation strategy remains unchanged Completed $2.0B in share buybacks $2.0B under current authorization Reduced fully diluted share count by approximately 16% since $3B authorization $1.3B On target for 15% - 20% net 168.7M share reduct
Slide 20: Balance sheet and liquidity
Balance sheet and liquidity Leverage ratio Interest rate exposure Fixed Variable 2.9X 87% 13% Total liquidity of $1.6B 2.8X $583M in cash and 2.6X cash equivalents $1.0B undrawn revolver Reduced interest rate by 75 bps Variable Fixed on $1.8B of outstanding principal Term loan Maturity $3.3B in
Slide 21: Outlook
Outlook Q3 2023 2023 Revenue $1.055B - $1.075B $4.250B - $4.325B Segment growth rates Applications & commerce 9% -11% 9% -11% Core platform ~Flat ~1% NEBITDA margin ~26% ~26% Unlevered free cash flow $1.2B+ Billie Dumaliang Free cash flow $1.0B+ Masungi Georeserve MASUNGIGEORESERVE.COM Share repurch
Slide 22: Bridge to continuing long-term value creation
Bridge to continuing long-term value creation Accelerating revenue growth, ARPU with continuing expansion margin expansion, Aftermarket & improving lapping FCF/share Migration & Divestiture of FX impact in non-core assets 2023 PY deferred exit rate revenue 7% revenue growth 28% NEBITDA margin $7.25
Slide 23: Key investment highlights
Key investment highlights Loyal base of 21M customers expanding their digital identities with upside to attach more solutions, increase customer lifetime value, and customer retention of 85% Focused on delivering a balanced combination of durable top-line growth, 15%+ NEBITDA CAGR, and 20% FCF per s
Slide 24: Appendices
Appendices 24 © 2023 GoDaddy Inc.
Slide 25: Non-GAAP reconciliation: NEBITDA
Non-GAAP reconciliation: NEBITDA Three months ended June 30 Six months ended June 30 Reconciliation of NEBITDA ($M) 2023 2022 2023 2022 Net income $83.1 $90.5 $130.5 $159.1 Depreciation and amortization 43.5 48.4 92.0 96.6 Equity-based compensation1 77.5 66.7 149.1 127.9 Interest expense, net 37.4 3
Slide 26: Trailing twelve-months NEBITDA
Non-GAAP reconciliation: Trailing twelve-months NEBITDA Reconciliation ($M) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net income (loss) $300.6 $344.2 $346.5 $352.9 $331.7 $324.3 Depreciation and amortization 198.8 197.3 195.0 194.6 194.9 190.0 Equity-based compensation1 216.5 231.9 246.3 264.4
Slide 27: Free cash flow and unlevered free cash flow
Non-GAAP reconciliation: Free cash flow and unlevered free cash flow Three months ended June 30 Six months ended June 30 Reconciliation ($M) 2023 2022 2023 2022 Net cash provided by operating activities $198.0 $250.9 $468.3 $501.8 Capital expenditures (5.8) (17.9) (28.6) (30.2) Cash paid for acquisi
Slide 28: Trailing twelve months free cash flow
Non-GAAP reconciliation: Trailing twelve months free cash flow Reconciliation ($M) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net cash provided by operating activities $858.9 $900.4 $943.9 $979.7 $999.1 $946.2 Capital expenditures (54.4) (60.2) (60.1) (59.7) (70.2) (58.1) Cash paid for acquisit
Slide 29: Net debt
Non-GAAP reconciliation: Net debt Reconciliation ($M) June 30, 2023 Current portion of long-term debt $18.2 Long-term debt 3,806.0 Unamortized original issue discount and debt issuance costs 64.5 Total debt $3,888.7 Less: cash & cash equivalents (582.6) Net debt $3,306.1 29 © 2023 GoDaddy Inc.
Slide 30: Constant currency
Non-GAAP reconciliation: Constant currency Reconciliation ($M) June 30, 2023 Bookings $1,141.1 Constant currency adjustment 6.9 Constant currency bookings $1,148.0 Revenue $1,048.1 Constant currency adjustment 8.9 Constant currency revenue $1,057.0 30 © 2023 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 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 32: 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 33: 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 34: Q2 2023 Financial Results
Q2 2023 Financial Results August 3, 2023 Junior Garcia Laced in Love LACEDINLOVE.BIZ © 2023 GoDaddy Inc.