Godaddy Inc. · NYSE:GDDY
Godaddy — Q4 2021 Earnings Presentation
28 slides from Godaddy's earnings presentation, Feb 10, 2022
Slide 1: Q4 2021 Earnings Results
Q4 2021 Sarah Fung The Hula Earnings Results THEHULA.COM February 10, 2022 1 © 2022 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: Q4 and 2021 Themes
Q4 and 2021 Themes Driving commerce through presence GoDaddy Pros Innovation in domains 3 © 2022 GoDaddy Inc.
Slide 4: Q4 2021 Results
Q4 2021 Results Bookings Revenue uFCF 11% Y/Y increase 17% Y/Y increase 12% Y/Y increase 11% Constant Currency 16% Constant Currency $1.05B $1.02B Q4 2021 $203M $943M Q4 2021 Q4 2021 Q4 2020 $874M $181M Q4 2020 Q4 2020 uFCF and constant currency are non-GAAP measures. A reconciliation table between
Slide 5: ~$410M in ARR
Subscription software tools enabling websites, content creation and commerce Annualized Recurring Revenue growing 19% Y/Y ~$410M in ARR GoDaddy GoDaddy GoDaddy Sellbrite Websites + Marketing Managed WordPress Studio ARR as of Q4 2021: Includes ARR from Websites + Marketing (W+M) and Managed WordPres
Slide 6: Commerce — A Top Priority
Commerce — A Top Priority Click icon to add picture or drag onto slide 6 © 2022 GoDaddy Inc.
Slide 7: Connected Commerce
Connected Commerce Q3 Launch of OmniCommerce showing promising early results • Sold over 1,000 point-of-sale devices in since launch • 60% of customers within the commerce tier of Websites + Marketing chose GoDaddy Payments over well-known competitors • Nearly 25% of our Managed WordPress customers
Slide 8: Ubiquitous Presence
Ubiquitous Presence Added connectivity to TikTok, Twitch & Discord Launched Social Site - GoDaddy Studio's bio site capability Enabled Conversations in Websites + Marketing • Unified messaging inbox aggregates messages from various connection points, all into one convenient inbox Sarah Fung The Hula
Slide 9: Product Progress | Websites + Marketing
Product Progress | Websites + Marketing 30-day no credit card Online COVID-19 CTA/button Social composer Integration Partnership appointments guidance in W+M customization dashboard free trial accessible for and GoDaddy Offer low global markets mobile app transaction fees & new payment options (PP W
Slide 10: GoDaddy Pro
GoDaddy Pro 1.5 million Pros in GoDaddy base as of Q4 Committed to providing a differentiated experience through new features launched Site Building & • Priority care ticketing Maintenance • Commission-based incentives • Percent-based pricing for new reseller Member Stories customers • Client report
Slide 11: Product Progress | Managed WordPress
Product Progress | Managed WordPress Added 10 more Premium extensions for free to Blocked eCommerce plan Comments Pre-installing Spam which Launched Launched necessary improved Improve GD Payments GoDaddy Launched the Payments Rollout MySQL Updated in app FAQs and Built phase one of Improved inside
Slide 12: Domains
Domains Aftermarket innovation and market demand led to strong Q4 performance Unleash the Power of Your .Brand The most innovative brands in the world depend on us to deliver more creativity, GoDaddy Registry launched reputation higher engagement and deeper insight. protection solution to help custo
Slide 13: Key Investment Highlights
Key Investment Highlights A global leader in serving a large market of Everyday Entrepreneurs Innovative customer-led offering driving share gains across the customer journey Capability to invest capital aggressively Distinctive financial profile with profitable growth at scale Sarah Fung The Hula E
Slide 14: 2021 Revenue, Customers and ARPU
2021 Revenue, Customers and ARPU Revenue Customers ARPU 15% Y/Y increase 3% Y/Y increase 10% Y/Y increase 21.2M $182 $3.82B 20.6M 2021 $166 2021 2021 2020 $3.32B 2020 2020 14 © 2021 2022 GoDaddy Inc.
Slide 15: Global Footprint
Global Footprint Continued global expansion International Revenue: 13% Y/Y growth | 12% Constant Currency $331M Q4 2021 $293M Q4 2020 Sarah Fung The Hula *Constant currency is a non-GAAP measure. Definitions for non-GAAP measures can be found at the end of this presentation. THEHULA.COM 15 © 2022 Go
Slide 16: Q4 2021 Revenue
Q4 2021 Revenue Domains Hosting & Presence Business Applications 24% Y/Y increase 7% Y/Y increase 18% Y/Y increase $330M $309M Q4 2021 $497M Q4 2021 Q4 2020 $192M $402M Q4 2021 $163M Q4 2020 Q4 2020 • Continued strong renewals and registrations • Expanded presence suite to help entrepreneurs be • Mi
Slide 17: Q4 2021 Results
Q4 2021 Results Bookings Revenue uFCF 11% Y/Y increase 17% Y/Y increase 12% Y/Y increase 11% Constant Currency 16% Constant Currency $1.05B $1.02B Q4 2021 Q4 2021 $203M $943M $874M Q4 2021 Q4 2020 $181M Q4 2020 Q4 2020 uFCF and constant currency are non-GAAP measures. A reconciliation table between
Slide 18: Durable Unlevered Free Cash Flow (uFCF) growth
Durable Unlevered Free Cash Flow (uFCF) growth Trailing Twelve-Month uFCF 14% CAGR $938M $960M $910M $825M $859M $789M $822M $771M Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 uFCF is a non-GAAP measure. A reconciliation table between uFCF and its nearest GAAP equivalent for the periods presented
Slide 19: Balance Sheet and Liquidity
Balance Sheet and Liquidity Strong liquidity position Leverage ratio Term loan Maturity Cash generative / +25% uFCF margins (LTM) $1.8B 2024 $1.26B in cash on balance sheet $739M 2027 $600M undrawn revolver Unsecured notes Maturity No significant debt maturities until 2024 2.6X 2.6X $600M 2027 Signi
Slide 20: Outlook
Outlook Q1 2022 Revenue $985M-$990M 10% growth at the midpoint 2022 Full Year Revenue $4,140M-$4,160M 9% growth at the midpoint Unlevered Free $1.1B 15% growth Cash Flow Linda Hsiao Knotwork LA KNOTWORKLA.COM 20 © 2022 GoDaddy Inc.
Slide 21: Non-GAAP Financial Measures and Other Operating Metrics
Sarah Fung The Hula Non-GAAP Financial THEHULA.COM Measures and Other Operating Metrics 21 © 2022 GoDaddy Inc.
Slide 22: Non-GAAP Reconciliation: Bookings & uFCF
Non-GAAP Reconciliation: Bookings & uFCF Three months ended December 31 Twelve months ended December 31 Reconciliation of Bookings ($M) 2020 2021 2020 2021 Total revenue $873.9 $1,019.3 $3,316.7 $3,815.7 Change in deferred revenue 11.9 (21.5) 210.5 186.6 Net refunds 55.9 52.1 247.3 224.2 Other 1.4 0
Slide 23: Non-GAAP Reconciliation: Normalized EBITDA
Non-GAAP Reconciliation: Normalized EBITDA Three months ended December 31 Twelve months ended December 31 Reconciliation of Normalized EBITDA ($M) 2020 2021 2020 2021 Net income (loss) $70.8 $87.4 ($494.1) $242.8 Interest, net 26.6 31.9 86.9 124.9 Benefit/Provision for income taxes & TRA adjustments
Slide 24: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt Reconciliation of Net Debt ($M) December 31, 2021 Current portion of long-term debt $24.1 Long-term debt 3,858.2 Unamortized original issue discount and debt issuance costs 38.9 Total debt $3,921.2 Less: Cash & cash equivalents (1,255.7) Net Debt $2,665.5 24 © 2021
Slide 25: Non-GAAP Reconciliation: Trailing Twelve Months uFCF
Non-GAAP Reconciliation: Trailing Twelve Months uFCF Reconciliation of uFCF ($M) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Net cash provided by operating activities $757.0 $763.8 $760.9 $764.6 $752.6 $793.9 $823.0 $829.3 Cash paid for interest 70.1 76.6 75.4 80.5 84.3 90.0 106.3 104.2 Cash pai
Slide 26: Non-GAAP Financial Measures and Other Operating Metrics
Non-GAAP Financial Measures and Other Operating Metrics Total Bookings Total bookings represents cash receipts from the sale of products to customers in a given period adjusted for products where we recognize revenue on a net basis and without giving effect to certain adjustments, primarily net refu
Slide 27: Non-GAAP Financial Measures and Other Operating Metrics
Non-GAAP Financial Measures and Other Operating Metrics Normalized EBITDA Normalized EBITDA is a supplemental measure of our operating performance used by management to evaluate our business. We believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to prov
Slide 28: February 2022
Sarah Fung The Hula THEHULA.COM February 2022 28 © 2022 GoDaddy Inc.