GoDaddy (GDDY) Q2 2024 earnings summary

Executive summary

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

• Net income rose 76% year-over-year to $146.3M, with a 13% margin, and normalized EBITDA grew 25% to $331.7M, margin expanding to 29.5%.

• Free cash flow increased 35% to $323.4M, and bookings reached $1.262B, up 11% year-over-year.

• AI-powered Airo rolled out to all English-speaking markets, with over 1M new customers discovering it and over 500K engaging.

• Continued focus on pricing, bundling, seamless experience, and commerce as key growth drivers.

Financial highlights

• Applications & Commerce revenue grew 15.3% to $405.6M; Core Platform revenue up 3.2% to $718.9M.

• Normalized EBITDA margin expanded to 29.5%, and ARPU increased 6% to $210.

• Net income margin reached 13%, and operating margin improved to 18.5% from 11.4% year-over-year.

• Annualized recurring revenue totaled $3.85B, up 6.5% year-over-year; deferred revenue increased to $3.1B.

• Net cash from operating activities was $294.8M, up 49% year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.525–$4.565B, ~7% growth at midpoint; Q3 revenue expected at $1.13–$1.15B.

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

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

• Free cash flow target raised to at least $1.3B for 2024, up 20% year-over-year.

• Management expects existing cash and cash flows to meet operating needs for at least the next 12 months.