Wednesday , August 17 2022

GoDaddy Q1 2022 report: revenue was up 11%

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GoDaddy Inc. (NYSE: GDDY) today reported financial results for the first quarter ended March 31, 2022.

Revenue was up 11% and an additional $250M share repurchase plan is coming soon.

“GoDaddy’s value proposition for helping small businesses succeed by simplifying their needs is resonating in the market, as evidenced by our strong first quarter financial results,” said GoDaddy CEO Aman Bhutani, “We continue to execute well against our strategic priorities, including building a one-stop shop for connected commerce, ubiquitous presence and digital identity, wrapped in our world-class customer service.”

“In the first quarter, GoDaddy delivered a strong start to 2022, demonstrating consistent execution and the resiliency of our business,” said GoDaddy CFO Mark McCaffrey. “We remain committed to delivering a balanced combination of durable top-line growth, profitability at scale and robust cash flow as outlined at our recent Investor Day.”

Business Highlights

  • In February, GoDaddy launched a $750 million accelerated share repurchase program and repurchased an initial 6.5 million shares during the first quarter. Remaining shares under this program are expected to be delivered in May.
  • GoDaddy today announced an intention to fulfill its $1 billion share repurchase target for 2022 through an additional $250 million of repurchases to be made during the second and third quarters.
  • During the first quarter, GoDaddy launched Commerce Plus directed at larger customers with more complex needs. Commerce Plus enables sales tax automation, higher order limits for marketplaces, faster inventory syncs with unlimited product and email marketing messages for customer stores.
  • GoDaddy Payments continues to show strength with adoption of 70% within the commerce tier of Websites + Marketing and 25% within Managed WordPress.
  • Annualized recurring revenue (ARR) for Applications and Commerce grew 14% year over year to $1.2 billion.
  • ARR for Core Platform grew 5% year over year to $2.2 billion.
  • GoDaddy continued to drive strong growth in commerce offerings with gross merchandise volume (GMV) of $24 billion in the first quarter, up over 20% year over year.

Balance Sheet
At March 31, 2022, total cash and cash equivalents were $743 million, total debt was $3.913 billion and net debt was $3.170 billion.

Business Outlook

For the second quarter ending June 30, 2022, GoDaddy targets total revenue in the range of $1.01 billion to $1.02 billion, representing year over year growth of 9% at the midpoint. In the second quarter, GoDaddy expects applications & commerce revenue growth in the range of 14% to 16% and core platform revenue growth in the range of 5% to 7%.

For the second quarter ending June 30, 2022, GoDaddy targets normalized EBITDA in the range of $232 million to $237 million, representing year over year growth of 18% at the midpoint.

For the full year ending December 31, 2022, GoDaddy targets total revenue in the range of $4.14 billion to $4.16 billion, representing year over year growth of 9% at the midpoint.

For the full year ending December 31, 2022, GoDaddy expects unlevered free cash flow of approximately $1.1 billion, representing growth of 15% year over year, versus the $960 million of unlevered free cash generated in 2021.

GoDaddy’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (GAAP). GoDaddy does not provide reconciliations from non-GAAP guidance to GAAP because projections of changes in individual balance sheet amounts are not possible without unreasonable effort and presentation of such reconciliations would imply an inappropriate degree of precision. GoDaddy’s reported results provide reconciliations of non-GAAP financial measures to their nearest GAAP equivalents.


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