GoDaddy (GDDY) Q3 2024 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $1.15 billion in Q3 2024, with strong gains in Applications & Commerce and Core Platform segments, and net income rose 45% to $190.5 million.

• Free cash flow increased 29% to $363 million, normalized EBITDA margin expanded by over 400 basis points to 32%, and normalized EBITDA reached $366.5 million.

• Achieved or exceeded all Q3 targets, with continued focus on innovation, operational efficiency, and disciplined capital allocation.

• GoDaddy Airo, the AI-powered platform, expanded globally to over 180 countries, reaching nearly 3 million customers and driving significant engagement and monetization.

• Continued share repurchases, reducing fully diluted shares outstanding by 23% since January 2022.

Financial highlights

• Q3 2024 revenue was $1.15 billion, up 7% year-over-year; A&C revenue grew 16% to $423 million, Core Platform revenue rose 3% to $725 million.

• Free cash flow reached $363 million (29% growth); unlevered free cash flow was $399 million (25% growth).

• Normalized EBITDA was $367 million (32% margin), up from $296 million (28% margin) in Q3 2023.

• ARPU increased 8% to $215; customer count at 20,725 with 85% retention rate.

• Net income margin improved to 16.6% from 12.2% in Q3 2023.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.545–$4.565 billion, representing 7% growth at midpoint.

• Q4 2024 revenue expected between $1.165–$1.185 billion; A&C segment to see mid-teens growth, Core Platform low single-digit growth.

• Full-year normalized EBITDA margin guidance raised to ~30%; Q4 margin expected at ~31%.

• Free cash flow target for 2024 raised to at least $1.325 billion; unlevered free cash flow target at least $1.475 billion.

• On track for 6%-8% annual revenue growth and 33% normalized EBITDA margin by 2026.