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 2024, with free cash flow up 25% to $1.4B and NEBITDA margin at 32% in Q4.

• Airo, the AI-powered platform, became the largest funnel for Websites & Marketing, with over 50% of paid subscriptions originating from Airo.

• Gross payments volume from commerce offerings grew 55% year-over-year to $2.6B.

• Continued focus on empowering entrepreneurs and expanding digital business solutions, highlighted by GoDaddy Airo and enhanced product bundling.

Financial highlights

• Q4 2024 revenue was $1.2B, up 8% year-over-year, exceeding guidance.

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

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

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

• Ended 2024 with $1.1B in cash and $2.1B in total liquidity.

Outlook and guidance

• 2025 revenue guidance: $4.86B–$4.94B (7% growth at midpoint), with mid-teens growth in Applications & Commerce and low single-digit growth in Core Platform.

• Q1 2025 revenue expected at $1.175B–$1.195B; NEBITDA margin ~30% with +100 bps expansion.

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

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

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