GoDaddy (GDDY) Q1 2025 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $1.2 billion, with strong performance in Applications & Commerce (A&C) and Core Platform segments, and operating income up 40.6% to $247.3 million.

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

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

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

• Net income was $219.5 million, impacted by a one-time $34.6 million tax benefit; prior year included a larger non-recurring tax benefit.

Financial highlights

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

• Bookings increased 8% to $1.42 billion; annual recurring revenue up 7% to $4.1 billion; ARPU rose 9% to $225.

• Normalized EBITDA grew 16% to $364 million, with margin expanding over 200 basis points to 31%.

• Net cash from operating activities was $404.7 million, up 36% year-over-year.

• International revenue increased 10%, driven by strong Aftermarket sales.

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.

• A&C revenue projected to grow mid-teens; Core Platform low single digits for Q2 and full year.

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

• Free cash flow for 2025 expected 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.