NYSE$GDDY

GoDaddy Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

GoDaddy's Q2 2020 earnings were released, surpassing 20 million customers and achieving record customer growth. Bookings grew by 12% in constant currency.

GoDaddy reported a strong second quarter, exceeding 20 million customers and achieving record customer growth. Total revenue reached $806.4 million, a 9.4% increase year-over-year, and total bookings grew by 10.7% to $936.3 million. The company also announced the settlement of its Tax Receivable Agreements (TRAs) for $850 million.

  • GoDaddy surpassed 20 million customers, with over 400,000 net new customers added in Q2.
  • Total revenue increased by 9.4% year-over-year to $806.4 million, or 10.2% on a constant currency basis.
  • Total bookings grew by 10.7% year-over-year to $936.3 million, or 12.1% on a constant currency basis.
  • The company settled its Tax Receivable Agreements (TRAs) obligation for a one-time payment of $850 million.

Headline financials

Total Revenue

$806M

Previous: $737M+9.4%
EPS (adj)

$0.25

Previous: $0.01+2400.0%
Total Bookings

$936M

Previous: $846M+10.7%
Total Customers

20.0M

No prior period
Capital Expenditures

-$30.7M

Previous: -$45.9M+33.1%
Free Cash Flow

-$704M

Previous: -$58.5M-1103.2%
Net Income

-$673M

Previous: -$12.6M-5242.9%
Operating Income

$22.9M

Previous: $18.9M+21.2%
Gross Profit

-$337M

Previous: -$307M-9.6%
Cash & Equivalents

$773M

Previous: $1.2B-35.5%
Total Assets

$6.09B

Previous: $6.45B-5.5%

Revenue & EPS history

GoDaddy · Revenue · Quarterly

$806M

Q2 2020+9.4%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

GoDaddy · $363M total across 1 segment · Q3 2023

  • Applications and Commerce
    $363M+11.4%

Forward guidance

GoDaddy expects total revenue of approximately $835 million for the third quarter ending September 30, 2020, representing approximately 10% year-over-year growth. For the full year, the company anticipates revenue growth of approximately 10% versus 2019 and unlevered free cash flow in the range of $815 to $825 million.

Tailwinds

  • Revenue growth by category is expected to approximate double-digit growth in domains.
  • Revenue growth by category is expected to approximate mid-single-digit growth in Hosting and Presence.
  • Revenue growth by category is expected to approximate high-teens growth in Business Applications.
  • Full year revenue growth of approximately 10% versus 2019 is expected.
  • Unlevered free cash flow is expected in the range of $815 to $825 million for the full year.

Headwinds

  • 2020 includes 27 pay periods versus 26 in a normal year, resulting in an incremental cash outflow of approximately $18 million in the fourth quarter.
  • Projections of changes in individual balance sheet amounts are not possible without unreasonable effort.
  • Reconciliations from non-GAAP guidance to GAAP are not provided.
  • The projections are based on estimates and information available at the time of the press release and are not guarantees of future performance.
  • Actual results could differ materially from current expectations as a result of many factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.5%

Avg return

30 days after

55%

24 / 44 earnings

Positive

+18.0%

Q3 2015

Best reaction

-14.3%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+2.0%-0.2%
Q4 2025-1.7%-4.4%-13.4%
Q3 2025+6.6%+5.0%+0.9%
Q1 2025-8.6%-4.8%-5.3%
Q4 2024-14.3%-16.9%-17.1%
Q3 2024+3.4%+2.6%+22.4%
Q2 2024+4.0%+4.5%+15.1%
Q1 2024+1.1%+7.4%+14.2%
Q4 2023-0.7%-2.1%+4.3%
Q3 2023+16.5%+18.4%+38.9%
Q2 2023-7.7%-6.2%-3.8%
Q1 2023-2.5%-3.0%+6.1%
Q4 2022-0.9%-4.2%-10.1%
Q3 2022-8.3%-4.8%+6.9%
Q2 2022+4.5%+7.0%+1.2%
Q1 2022-4.2%-14.5%-11.0%
Q4 2021+7.6%+15.2%+4.4%
Q3 2021+10.9%+5.9%+2.6%
Q2 2021-13.0%-12.3%-10.8%
Q1 2021-1.5%-1.9%-1.9%
Q4 2020-6.5%-7.3%-21.1%
Q3 2020+2.2%-4.7%+13.1%
Q2 2020+7.9%+6.0%+8.6%
Q1 2020+6.4%+10.0%+14.5%
Q4 2019+10.6%+9.5%-22.5%
Q3 2019+17.5%+11.0%+8.3%
Q2 2019-4.0%-11.4%-13.7%
Q1 2019-2.1%-3.1%-8.3%
Q4 2018+4.4%+3.7%+3.2%
Q3 2018-8.9%-11.7%-9.8%
Q2 2018+1.3%+2.4%+8.6%
Q1 2018+4.2%+4.8%+9.4%
Q4 2017+10.4%+8.4%+9.5%
Q3 2017+3.7%+2.8%-0.2%
Q2 2017+3.1%-2.6%+3.2%
Q1 2017-3.1%-2.0%+4.7%
Q4 2016-1.3%+1.0%+2.3%
Q3 2016-5.7%-6.9%-5.7%
Q2 2016+8.3%+13.6%+11.4%
Q1 2016-1.5%
Q4 2015+3.4%
Q3 2015+18.0%
Q2 2015-8.3%
Q1 2015+3.2%
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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