GoDaddy (GDDY - Free Report) reported adjusted earnings of $1.08 per share in first-quarter 2024, up from the year-ago quarter’s earnings of 30 cents. The figure beat the Zacks Consensus Estimate by 8%.
GDDY generated revenues of $1.1 billion, surpassing the Zacks Consensus Estimate by 1.07%. Revenues rose 7% year over year on a reported basis and 6.9% on a constant-currency (cc) basis.
Quarter in Detail
Applications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications and payments & commerce, generated $383.1 million (contributing 34.6% to total revenues), up 13.3% on a year-over-year basis. The figure beat the consensus mark by 0.24%.
Core Platform, consisting of domains, aftermarket, hosting and security, increased 3.9% year over year to $725.4 million (contributing 65.4% to total revenues). The figure beat the consensus mark by 1.52%.
In the first quarter, international revenues were $352.9 million, up 3.6% year over year on a reported basis and 3.5% at cc.
Total bookings of $1.3 billion increased 9.5% year over year and at cc. The figure beat the consensus mark by 3.45%.
Average revenues per user were $206, up 4.6% year over year. The figure beat the Zacks Consensus Estimate by 60.34%.
Total annualized recurring revenues (ARR) were $3.8 billion, up 6.5% year over year. In the reported quarter, Applications & Commerce ARR was $1.5 billion, up 13% year over year. Core platform ARR totaled $2.3 billion and moved up 3% year over year.
Total customers at the end of the first quarter were 20,995.
Operating Results
On a non-GAAP basis, normalized EBITDA in the first quarter was $313 million, up 25.4% year over year.
Operating expenses (technology and development, marketing and advertising, customer care and general and administrative) of $458.5 million declined 4.1% year over year. As a percentage of revenues, operating expenses contracted 480 basis points (bps) year over year to 0.41%.
Operating income was $175.9 million, up from the year-ago quarter’s operating income of $70.8 million. As a percentage of revenues, operating income expanded 90 bps year over year to 15.87%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents were $664 million compared with $498.8 million as of Dec 31, 2023.
As of Mar 31, 2024, GoDaddy had a total debt of $3.9 billion compared with a total debt of $3.82 billion as of Dec 31, 2023.
Net Debt was $3.2 billion in the first quarter of 2024 compared with $3.9 billion of net debt in the previous quarter.
The unlevered free cash flow grew 18% to $358.6 million, whereas the free cash flow rose 26.3% to $327.4 million in the reported quarter.
In the first quarter, GoDaddy repurchased 2.8 million shares of its common stock.
Guidance
For second-quarter 2024, GoDaddy expects revenues of $1.10-$1.12 billion, indicating year-over-year growth of 6% at the mid-point.
GoDaddy expects second-quarter A&C revenue growth in the low- to mid-teens and Core revenue growth in the low single digits.
For the second quarter, GDDY expects the normalized EBITDA margin to be 28%.
For 2024, GoDaddy expects total revenues of $4.50-$4.56 billion, indicating year-over-year growth of 6.5% at the mid-point.
The normalized EBITDA margin for the full year is expected to be 29%.
For 2024, GoDaddy anticipates an unlevered free cash flow of at least $1.4 billion.
Zacks Rank & Stocks to Consider
GDDY currently carries a Zacks Rank #3 (Hold).
The stock has increased 16.7% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 8.5%.
Arista Networks (ANET - Free Report) , Applied Material (AMAT - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have appreciated 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
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GoDaddy (GDDY - Free Report) reported adjusted earnings of $1.08 per share in first-quarter 2024, up from the year-ago quarter’s earnings of 30 cents. The figure beat the Zacks Consensus Estimate by 8%.
GDDY generated revenues of $1.1 billion, surpassing the Zacks Consensus Estimate by 1.07%. Revenues rose 7% year over year on a reported basis and 6.9% on a constant-currency (cc) basis.
Quarter in Detail
Applications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications and payments & commerce, generated $383.1 million (contributing 34.6% to total revenues), up 13.3% on a year-over-year basis. The figure beat the consensus mark by 0.24%.
Core Platform, consisting of domains, aftermarket, hosting and security, increased 3.9% year over year to $725.4 million (contributing 65.4% to total revenues). The figure beat the consensus mark by 1.52%.
In the first quarter, international revenues were $352.9 million, up 3.6% year over year on a reported basis and 3.5% at cc.
Total bookings of $1.3 billion increased 9.5% year over year and at cc. The figure beat the consensus mark by 3.45%.
Average revenues per user were $206, up 4.6% year over year. The figure beat the Zacks Consensus Estimate by 60.34%.
Total annualized recurring revenues (ARR) were $3.8 billion, up 6.5% year over year. In the reported quarter, Applications & Commerce ARR was $1.5 billion, up 13% year over year. Core platform ARR totaled $2.3 billion and moved up 3% year over year.
Total customers at the end of the first quarter were 20,995.
Operating Results
On a non-GAAP basis, normalized EBITDA in the first quarter was $313 million, up 25.4% year over year.
Operating expenses (technology and development, marketing and advertising, customer care and general and administrative) of $458.5 million declined 4.1% year over year. As a percentage of revenues, operating expenses contracted 480 basis points (bps) year over year to 0.41%.
Operating income was $175.9 million, up from the year-ago quarter’s operating income of $70.8 million. As a percentage of revenues, operating income expanded 90 bps year over year to 15.87%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents were $664 million compared with $498.8 million as of Dec 31, 2023.
As of Mar 31, 2024, GoDaddy had a total debt of $3.9 billion compared with a total debt of $3.82 billion as of Dec 31, 2023.
Net Debt was $3.2 billion in the first quarter of 2024 compared with $3.9 billion of net debt in the previous quarter.
The unlevered free cash flow grew 18% to $358.6 million, whereas the free cash flow rose 26.3% to $327.4 million in the reported quarter.
In the first quarter, GoDaddy repurchased 2.8 million shares of its common stock.
Guidance
For second-quarter 2024, GoDaddy expects revenues of $1.10-$1.12 billion, indicating year-over-year growth of 6% at the mid-point.
GoDaddy expects second-quarter A&C revenue growth in the low- to mid-teens and Core revenue growth in the low single digits.
For the second quarter, GDDY expects the normalized EBITDA margin to be 28%.
For 2024, GoDaddy expects total revenues of $4.50-$4.56 billion, indicating year-over-year growth of 6.5% at the mid-point.
The normalized EBITDA margin for the full year is expected to be 29%.
For 2024, GoDaddy anticipates an unlevered free cash flow of at least $1.4 billion.
Zacks Rank & Stocks to Consider
GDDY currently carries a Zacks Rank #3 (Hold).
The stock has increased 16.7% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 8.5%.
Arista Networks (ANET - Free Report) , Applied Material (AMAT - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have appreciated 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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