GoDaddy (GDDY) Q1 2025 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $1.2 billion, with strong performance in Applications & Commerce and Core Platform segments.

• Free cash flow increased 26% year-over-year to $411 million, supporting robust cash generation.

• Strategic focus on high-intent customers, pricing, bundling, and AI-driven product innovation, including GoDaddy Airo and Airo Plus, drove improved engagement and renewals.

• Over 25% of fully diluted shares repurchased since 2022; new $3 billion multi-year repurchase program authorized through 2027.

• Operating income rose 40.6% year-over-year to $247.3 million, with net income at $219.5 million, impacted by a one-time $34.6 million tax benefit.

Financial highlights

• Q1 2025 revenue reached $1.2 billion, up 8% year-over-year; Applications & Commerce revenue grew 17% to $446 million, Core Platform revenue up 3% to $748 million.

• Bookings increased 8% to $1.42 billion; normalized EBITDA rose 16% to $364 million, with margin expanding to 31%.

• Free cash flow for Q1 2025 was $411 million; ARPU increased to $225 from $206 year-over-year.

• International revenue increased 10% to $388.8 million, driven by strong aftermarket sales.

• Customer count at period end was 20.48 million, with retention above 85%.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $4.86–$4.94 billion (7% growth at midpoint); Q2 revenue expected between $1.195–$1.215 billion.

• Applications & Commerce revenue projected to grow mid-teens; Core Platform low single digits.

• NEBITDA margin expected at ~31% for Q2 and 100 basis points expansion for the full year.

• Free cash flow for 2025 targeted at least $1.5 billion, up over 11% from 2024.

• Long-term targets include $4.5B+ cumulative free cash flow and normalized EBITDA margin expansion to 33% by 2026.