GoDaddy (GDDY) Q4 2024 earnings summary

Executive summary

• Achieved 8% year-over-year revenue growth in 2024, reaching $4.6B, with bookings up 9% to $5.0B and strong performance in Applications & Commerce and Core Platform segments.

• Normalized EBITDA margin expanded to 31% for the year, with free cash flow up 25% to $1.4B and unlevered free cash flow at $1.5B.

• Airo, the AI-powered platform, became the largest funnel for Websites & Marketing, driving over 50% of paid subscriptions and boosting engagement.

• Key initiatives included pricing, bundling, cost optimization, and a focus on high-value customers, resulting in higher ARPU and average order size.

• Delivered at or ahead of all 2024 and Q4 targets, with continued investment in innovation and digital business solutions.

Financial highlights

• Q4 2024 revenue grew 8% year-over-year to $1.2B, exceeding guidance; Q4 bookings were $1.2B, up 9%.

• Applications & Commerce revenue rose 16.9% to $1.65B in 2024; Core Platform revenue up 3.4% to $2.92B.

• Q4 Normalized EBITDA grew 19% to $385M, with margin at 32%; full-year Normalized EBITDA was $1.4B (31% margin).

• Free cash flow for 2024 increased 25% to $1.4B; unlevered free cash flow up 20% to $1.5B.

• Annualized recurring revenue (ARR) was $4.04B, up 8.4% year-over-year; ARPU up 8% to $220.

Outlook and guidance

• 2025 revenue guidance: $4.86B–$4.94B (7% growth at midpoint); Q1 2025 revenue expected at $1.175B–$1.195B.

• Applications & Commerce revenue expected to grow mid-teens, Core Platform low single digits in 2025.

• Normalized EBITDA margin expected to expand by 100 basis points in 2025, targeting 33% by 2026.

• Free cash flow target for 2025 is at least $1.5B (+11%).

• Capital expenditures for 2025 expected at $30M; cash interest payments at $150M.