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GoDaddy Inc.’s (GDDY - Free Report) fourth-quarter 2023 adjusted earnings of $1.08 per share beat the Zacks Consensus Estimate by 4.85%. The bottom line jumped 74.2% year over year.
GDDY generated revenues of $1.10 billion, lagging the Zacks Consensus Estimate by 0.11%. Revenues rose 5.8% year over year on a reported basis, as well as a constant-currency (cc) basis.
Quarter in Detail
Applications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications, and payments & commerce, generated $377.4 million (contributing 34.3% to the total revenues), up 13.2% on a year-over-year basis. The figure beat the consensus mark by 0.23%.
Core Platform, consisting of domains, aftermarket, hosting and security, increased 2.3% year over year to $722.9 million (contributing 65.7% to the total revenues). The figure missed the consensus mark by 0.26%.
In the fourth quarter, international revenues were $354 million, up 4% year over year on a reported basis and at cc.
Total bookings of $1.1 billion increased 7% year over year and 6% at cc. The figure beat the consensus mark by 0.61%.
Average revenues per user were $203, up 3% year over year. The figure beat the Zacks Consensus Estimate by 0.5%.
Total annualized recurring revenues (ARR) were $3.69 billion, up 3.4% year over year. In the reported quarter, Applications & Commerce ARR was $1.4 billion, rising 10% year over year. Core platform ARR totaled $2.3 billion, flat year over year.
Total customers at the end of the fourth quarter were 21,026, increasing 0.6% year over year.
Operating Results
On a non-GAAP basis, normalized EBITDA in the fourth quarter was $324.2 million, up 22% year over year.
Operating expenses (technology and development, marketing and advertising, customer care, and general and administrative) of $458.3 million declined 3.5% year over year. As a percentage of revenues, operating expenses contracted 400 basis points (bps) year over year to 41.7%.
Operating income was $189.9 million, up 40.8% year over year. As a percentage of revenues, operating income expanded 430 bps year over year to 17.3%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash and cash equivalents were $498.8 million compared with $329.2 million as of Sep 30, 2023.
As of Dec 31, 2023, GoDaddy had a total debt of $3.82 billion compared with a total debt of $3.9 billion as of Sep 30, 2023.
The unlevered free cash flow grew 46% to $347 million, whereas the free cash flow rose 51% to $305 million in the reported quarter.
Guidance
For first-quarter 2024, GoDaddy expects revenues of $1.085-$1.105 billion, indicating year-over-year growth of 6% at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $1.11 billion.
For the first quarter, GDDY expects the normalized EBITDA margin to be 27%.
For 2024, GoDaddy expects total revenues of $4.48-$4.56 billion. The Zacks Consensus Estimate for the same is pegged at $4.25 billion.
The normalized EBITDA margin for the full year is expected to be 29%.
For 2024, GoDady anticipates an unlevered free cash flow of at least $1.2 billion.
Zacks Rank & Other Stocks to Consider
GoDaddy sports a Zacks Rank #2 (Buy).
Shares of GoDaddy have gained 6.5% on a year-to-date basis, outperforming the Zacks Computer and Technology sector’s return of 6.4%.
Image: Bigstock
GoDaddy (GDDY) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
GoDaddy Inc.’s (GDDY - Free Report) fourth-quarter 2023 adjusted earnings of $1.08 per share beat the Zacks Consensus Estimate by 4.85%. The bottom line jumped 74.2% year over year.
GDDY generated revenues of $1.10 billion, lagging the Zacks Consensus Estimate by 0.11%. Revenues rose 5.8% year over year on a reported basis, as well as a constant-currency (cc) basis.
Quarter in Detail
Applications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications, and payments & commerce, generated $377.4 million (contributing 34.3% to the total revenues), up 13.2% on a year-over-year basis. The figure beat the consensus mark by 0.23%.
Core Platform, consisting of domains, aftermarket, hosting and security, increased 2.3% year over year to $722.9 million (contributing 65.7% to the total revenues). The figure missed the consensus mark by 0.26%.
In the fourth quarter, international revenues were $354 million, up 4% year over year on a reported basis and at cc.
GoDaddy Inc. Price, Consensus and EPS Surprise
GoDaddy Inc. price-consensus-eps-surprise-chart | GoDaddy Inc. Quote
Total bookings of $1.1 billion increased 7% year over year and 6% at cc. The figure beat the consensus mark by 0.61%.
Average revenues per user were $203, up 3% year over year. The figure beat the Zacks Consensus Estimate by 0.5%.
Total annualized recurring revenues (ARR) were $3.69 billion, up 3.4% year over year. In the reported quarter, Applications & Commerce ARR was $1.4 billion, rising 10% year over year. Core platform ARR totaled $2.3 billion, flat year over year.
Total customers at the end of the fourth quarter were 21,026, increasing 0.6% year over year.
Operating Results
On a non-GAAP basis, normalized EBITDA in the fourth quarter was $324.2 million, up 22% year over year.
Operating expenses (technology and development, marketing and advertising, customer care, and general and administrative) of $458.3 million declined 3.5% year over year. As a percentage of revenues, operating expenses contracted 400 basis points (bps) year over year to 41.7%.
Operating income was $189.9 million, up 40.8% year over year. As a percentage of revenues, operating income expanded 430 bps year over year to 17.3%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, cash and cash equivalents were $498.8 million compared with $329.2 million as of Sep 30, 2023.
As of Dec 31, 2023, GoDaddy had a total debt of $3.82 billion compared with a total debt of $3.9 billion as of Sep 30, 2023.
The unlevered free cash flow grew 46% to $347 million, whereas the free cash flow rose 51% to $305 million in the reported quarter.
Guidance
For first-quarter 2024, GoDaddy expects revenues of $1.085-$1.105 billion, indicating year-over-year growth of 6% at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $1.11 billion.
For the first quarter, GDDY expects the normalized EBITDA margin to be 27%.
For 2024, GoDaddy expects total revenues of $4.48-$4.56 billion. The Zacks Consensus Estimate for the same is pegged at $4.25 billion.
The normalized EBITDA margin for the full year is expected to be 29%.
For 2024, GoDady anticipates an unlevered free cash flow of at least $1.2 billion.
Zacks Rank & Other Stocks to Consider
GoDaddy sports a Zacks Rank #2 (Buy).
Shares of GoDaddy have gained 6.5% on a year-to-date basis, outperforming the Zacks Computer and Technology sector’s return of 6.4%.
Dell Technologies (DELL - Free Report) , Itron (ITRI - Free Report) and CrowdStrike (CRWD - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell shares have gained 9.8% year to date. DELL is set to report its fourth-quarter fiscal 2024 results on Feb 29.
Itron shares have declined 4.1% year to date. ITRI is set to report its fourth-quarter 2023 results on Feb 26.
CrowdStrike shares have jumped 26.3% year to date. CRWD is set to report its fourth-quarter fiscal 2024 results on Mar 5.