GoDaddy (GDDY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 7.3% year-over-year to $1.124 billion, surpassing guidance, with Applications & Commerce up 15% and Core Platform up 3%.

• Net income rose 76% year-over-year to $146.3 million, with a 13% margin, and normalized EBITDA increased 25% to $332 million (29% margin).

• Free cash flow expanded 35% to $323 million, and bookings reached $1.26 billion, up 11%.

• AI-powered Airo rolled out to all English-speaking markets, with over 1 million new customers discovering it and over 500,000 engaging; new SaaS and digital marketing products launched.

• Key growth drivers included innovation in AI, pricing, bundling, seamless experience, and productivity solutions.

Financial highlights

• Applications & Commerce revenue grew 15% year-over-year to $406 million; Core Platform revenue up 3% to $719 million.

• Normalized EBITDA was $332 million (29% margin), up 25% year-over-year; ARPU increased 6% to $210.

• Free cash flow increased 35% to $323 million; unlevered free cash flow up 30% to $369 million.

• Net income for Q2 2024 was $146.3 million, with a net income margin of 13%.

• Customer count at period end: 20.87 million, down slightly due to divestitures and migrations.

Outlook and guidance

• Raised full-year 2024 revenue guidance to $4.525–$4.565 billion, ~7% growth at midpoint.

• Q3 2024 revenue expected at $1.13–$1.15 billion, ~7% growth at midpoint.

• Applications & Commerce segment expected to deliver mid-teens growth for Q3 and full year; Core Platform in low single digits.

• Normalized EBITDA margin guidance: ~29% for Q3 and full year, 31% for Q4.

• Raised unlevered free cash flow target to $1.45+ billion and free cash flow to $1.3+ billion.