GoDaddy Inc. (GDDY) Bundle
A Brief History of GoDaddy Inc.
Company Overview
GoDaddy Inc. is a leading technology company that provides a wide range of services to small businesses, including domain registration, web hosting, and online marketing tools. As of 2024, GoDaddy continues to expand its offerings to meet the evolving needs of its global customer base.
Financial Performance
For the three months ended September 30, 2024, GoDaddy reported a net income of $190.5 million, compared to $131.0 million for the same period in 2023. The net income attributable to GoDaddy Inc. for the nine months ended September 30, 2024, was $738.3 million, up from $261.5 million in 2023.
| Period | Net Income (in millions) | Change (YoY) |
|---|---|---|
| Q3 2024 | $190.5 | 45.2% |
| 9M 2024 | $738.3 | 182.3% |
Revenue Growth
GoDaddy's total revenue for the three months ended September 30, 2024, was $724.5 million, reflecting a 3% increase from $706.4 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $2,168.8 million, compared to $2,100.8 million in the previous year.
Segment Performance
The company operates through two primary segments: A&C (Applications and Commerce) and Core. The following table summarizes the revenue and Segment EBITDA for both segments:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Segment EBITDA (Q3 2024, in millions) | Segment EBITDA (Q3 2023, in millions) |
|---|---|---|---|---|
| A&C | $194.6 | $154.3 | $433.6 | $362.9 |
| Core | $724.5 | $706.4 | $239.0 | $208.6 |
Share Repurchases
As of September 30, 2024, GoDaddy had authorized a share repurchase program of up to $4,000 million. During the nine months ended September 30, 2024, the company repurchased a total of 5,179 shares of its Class A common stock for an aggregate purchase price of $668.1 million.
Debt and Liquidity
As of September 30, 2024, GoDaddy's total long-term debt amounted to $3,860 million, with a current portion of $16.5 million. The company had $998.7 million available for borrowing under its revolving credit facility.
Market Position and Future Outlook
GoDaddy remains a dominant player in the domain registration and web hosting industries, continually adapting to market changes and customer needs. As of late 2024, the company is focusing on enhancing its service portfolio and leveraging technology to drive future growth.
A Who Owns GoDaddy Inc. (GDDY)
Major Shareholders
As of 2024, the ownership structure of GoDaddy Inc. (GDDY) is characterized by a mix of institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 16,823,245 | 10.22% |
| BlackRock, Inc. | Institutional | 15,982,910 | 9.83% |
| SSgA Funds Management, Inc. | Institutional | 10,945,832 | 6.73% |
| FMR LLC (Fidelity) | Institutional | 10,342,710 | 6.36% |
| Wellington Management Group LLP | Institutional | 9,846,512 | 6.08% |
| Insider Ownership | Individual | 4,500,000 | 2.77% |
| Other Institutional Investors | Various | 38,000,000 | 23.36% |
| Total Shares Outstanding | — | 164,000,000 | 100% |
Stock Performance and Market Capitalization
As of the end of September 2024, GoDaddy Inc. had a market capitalization of approximately $16.7 billion, with its stock trading at around $102.30 per share. The company has shown a 21.8% increase in net income over the previous year, amounting to $738.3 million for the nine months ended September 30, 2024.
Recent Shareholder Actions
GoDaddy has been active in share repurchase programs, with an authorization of up to $4 billion. As of September 30, 2024, the company repurchased approximately 5,179 shares of Class A common stock for an aggregate purchase price of $668.1 million.
Board of Directors and Executive Team
The board of directors comprises a mix of independent and executive members. Key executives include:
- Abdulaziz Al-Jarbou - CEO
- Scott Wagner - Executive Chairman
- Jodi L. Brunner - Chief Financial Officer
- Andrew L. Miller - Chief Operating Officer
Ownership Trends
Ownership trends indicate increasing institutional investment in GoDaddy, reflecting confidence in the company's strategic direction and market position. Institutional investors collectively control over 60% of the shares, highlighting a strong belief in GoDaddy's growth potential.
Conclusion
GoDaddy's diverse ownership base, with significant institutional holdings, positions the company favorably as it continues to expand its offerings and enhance shareholder value.
GoDaddy Inc. (GDDY) Mission Statement
GoDaddy Inc. aims to empower everyday entrepreneurs by providing them with the tools and services they need to succeed online. The mission focuses on delivering easy-to-use products alongside personalized guidance, ensuring customers can build and grow their businesses effectively.
Financial Overview
As of September 30, 2024, GoDaddy reported a total revenue of $1,147.6 million, reflecting a year-over-year increase of approximately 7.3%. This growth was driven by the company's dual focus on Applications and Commerce (A&C) and Core platform services.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,147.6 million | $1,069.7 million | 7.3% |
| Net Income | $190.5 million | $131.0 million | 45.4% |
| Normalized EBITDA | $366.5 million | $296.0 million | 23.8% |
| Total Bookings | $1,241.7 million | $1,138.9 million | 9.0% |
| Operating Income | $253.8 million | $167.1 million | 51.9% |
Segments of Business
GoDaddy operates primarily through two segments:
- Applications and Commerce (A&C): This segment focuses on sales of proprietary software products, including website building tools and commerce solutions.
- Core Platform: This segment includes domain registrations, website hosting, and security products.
Customer Metrics
As of the end of Q3 2024, GoDaddy's customer base and key operational metrics are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Customers | 20,725,000 | 21,025,000 |
| Domains Under Management | 81,658,000 | 84,035,000 |
| Annualized Recurring Revenue (ARR) | $3,974.6 million | $3,675.1 million |
| Average Revenue Per User (ARPU) | $215 | $200 |
Recent Developments
In 2024, GoDaddy has undertaken significant restructuring efforts to simplify its capital structure. This includes the DNC Restructure completed on December 11, 2023, which transformed Desert Newco into a wholly-owned subsidiary and enhanced strategic flexibility.
Financial Health
The company reported the following balance sheet figures as of September 30, 2024:
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $7,997.2 |
| Total Liabilities | $7,640.5 |
| Total Stockholders' Equity | $356.7 |
GoDaddy's financial performance demonstrates its commitment to supporting entrepreneurs through innovative solutions, while its robust metrics indicate a strong market presence and operational efficiency.
How GoDaddy Inc. (GDDY) Works
Business Model
GoDaddy Inc. operates primarily as a technology company providing domain registration, hosting, and online marketing services. As of September 30, 2024, it serves approximately 20.7 million customers globally, offering a range of products designed to help individuals and businesses establish and maintain an online presence. The company generates revenue through subscription-based services, which include domain registrations, web hosting, website builders, and digital marketing solutions.
Financial Performance
For the three months ended September 30, 2024, GoDaddy reported total revenue of $1.15 billion, reflecting a 7% increase compared to the same period in 2023. The revenue breakdown is as follows:
| Revenue Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Applications and Commerce | $423.1 | $363.3 | $59.8 | 16% |
| Core Platform | $724.5 | $706.4 | $18.1 | 3% |
| Total Revenue | $1,147.6 | $1,069.7 | $77.9 | 7% |
Operating Expenses
GoDaddy's operating expenses for the three months ended September 30, 2024, totaled $893.8 million, a slight decrease from $902.6 million in the same quarter of 2023. The major components of operating expenses are:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $407.4 | $396.9 | $10.5 | 3% |
| Technology and Development | $205.1 | $201.6 | $3.5 | 2% |
| Marketing and Advertising | $84.4 | $86.4 | ($2.0) | (2%) |
| Customer Care | $68.9 | $75.7 | ($6.8) | (9%) |
| General and Administrative | $94.8 | $91.6 | $3.2 | 3% |
| Total Operating Expenses | $893.8 | $902.6 | ($8.8) | (1%) |
Net Income
Net income for the three months ended September 30, 2024, was $190.5 million, compared to $131.0 million for the same period in 2023, representing a significant increase of 45.3%. The net income attributable to GoDaddy Inc. was calculated as follows:
| Item | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Income | $190.5 | $131.0 |
| Net Income Attributable to GoDaddy Inc. | $190.5 | $130.7 |
Share Repurchase Program
GoDaddy has an authorized share repurchase program of up to $4 billion. During the nine months ended September 30, 2024, the company repurchased a total of 5,179 shares of Class A common stock for an aggregate purchase price of $668.1 million. As of September 30, 2024, $767.4 million remains available for future repurchases.
Debt and Liquidity
As of September 30, 2024, GoDaddy had total long-term debt of $3.86 billion. The effective interest rates for its term loans were approximately 7.8% for the 2029 Term Loans and 7.5% for the 2031 Term Loans. The company's liquidity position is supported by cash flow generated from operations, which amounted to $947.2 million for the nine months ended September 30, 2024.
Key Metrics
Key operational metrics for GoDaddy as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Total Customers (in thousands) | 20,725 |
| Annualized Recurring Revenue (in millions) | $3,974.6 |
| Average Revenue Per User (ARPU) | $215 |
| Domains Under Management (in thousands) | 81,658 |
| Total Bookings (in millions) | $1,241.7 |
Future Outlook
GoDaddy continues to focus on expanding its offerings in applications and commerce, with a strong emphasis on productivity solutions and website-building products. The company anticipates ongoing growth in its customer base and revenue as it adapts to changing market demands and enhances its digital solutions.
How GoDaddy Inc. (GDDY) Makes Money
Overview of Revenue Streams
GoDaddy Inc. primarily generates revenue through two main segments: Applications and Commerce (A&C) and Core Platform. As of September 30, 2024, GoDaddy reported total revenue of $1,147.6 million for the third quarter, marking a 7.3% increase compared to $1,069.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $3,380.6 million, up from $3,153.8 million in 2023, reflecting a 7.2% growth.
| Revenue Segment | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) | Growth Rate (Q3 2024 vs Q3 2023) | Growth Rate (9M 2024 vs 9M 2023) |
|---|---|---|---|---|---|---|
| Applications and Commerce | $423.1 | $363.3 | $1,211.8 | $1,053.0 | 16% | 15% |
| Core Platform | $724.5 | $706.4 | $2,168.8 | $2,100.8 | 3% | 3% |
| Total Revenue | $1,147.6 | $1,069.7 | $3,380.6 | $3,153.8 | 7% | 7% |
Applications and Commerce (A&C)
The A&C segment encompasses a variety of products aimed at helping customers establish and grow their online presence. Key drivers of revenue in this segment include:
- Productivity Applications: Revenue grew by 20.5%, largely due to effective pricing and bundling strategies.
- Subscription-Based Products: Continued customer adoption led to an 8.7% revenue increase.
- Commerce Solutions: Revenue surged by 60.0%, attributed to increased payment processing volumes.
Core Platform
The Core Platform primarily focuses on domain registration and hosting services. For the three months ended September 30, 2024, revenue from this segment increased by 2.6%, driven by:
- Domain Registration and Add-On Revenues: Grew by 7.1%.
- Hosting Revenues: Experienced an 8.1% decline due to the end-of-life migrations of certain products.
Cost Structure
GoDaddy's cost of revenue for the three months ended September 30, 2024, was $407.4 million, up from $396.9 million in 2023, reflecting a 3% increase. The cost of revenue for the nine months ended September 30, 2024, was $1,230.2 million, compared to $1,171.4 million in 2023, marking a 5% increase. Key factors contributing to the rise in costs include:
- Growth in Domain Registration: A 6.9% increase in domain registration and add-on revenues.
- Productivity Applications: A 19.2% increase in revenue related to these applications.
- Commerce Solutions: A 52.1% growth in related revenues.
| Cost Type | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Cost of Revenue (Excluding Depreciation) | $407.4 | $396.9 | $1,230.2 | $1,171.4 |
| Technology and Development | $205.1 | $201.6 | $613.9 | $635.8 |
| Marketing and Advertising | $84.4 | $86.4 | $265.1 | $268.3 |
| Customer Care | $68.9 | $75.7 | $218.6 | $230.2 |
| General and Administrative | $94.8 | $91.6 | $282.1 | $278.4 |
Net Income and Profitability
For the three months ended September 30, 2024, GoDaddy reported a net income of $190.5 million, compared to $131.0 million in the same period of 2023. This represents a 16.6% increase. For the nine months ended September 30, 2024, net income was $738.3 million, up from $261.5 million in 2023, reflecting a 21.8% growth.
| Period | Net Income (in millions) | Growth Rate |
|---|---|---|
| Q3 2024 | $190.5 | 16.6% |
| 9M 2024 | $738.3 | 21.8% |
Customer Metrics
As of September 30, 2024, GoDaddy had approximately 20,725 customers, down from 21,025 in 2023. The average revenue per user (ARPU) increased from $200 to $215 during the same period. The total number of domains under management was 81,658, a decrease from 84,035 in the previous year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Customers (in thousands) | 20,725 | 21,025 |
| Average Revenue Per User (ARPU) | $215 | $200 |
| Domains Under Management (in thousands) | 81,658 | 84,035 |
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Article updated on 8 Nov 2024
Resources:
- GoDaddy Inc. (GDDY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GoDaddy Inc. (GDDY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GoDaddy Inc. (GDDY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.