NYSE$GDDY

GoDaddy Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

GoDaddy's Q2 2023 financial results were released, showing growth in Applications and Commerce revenue and progress in AI integration.

GoDaddy reported Q2 2023 financial results, with total revenue of $1,048.1 million, a net income of $83.1 million, and normalized EBITDA of $264.6 million. Applications and Commerce revenue grew by 11% year-over-year, and the company repurchased $746 million in shares through July 2023.

  • Applications and Commerce revenue increased by 11% year-over-year to $352 million.
  • Annualized recurring revenue (ARR) for Applications and Commerce reached $1.3 billion, up 10% year-over-year.
  • GoDaddy implemented generative AI tools into Websites + Marketing.
  • The company repurchased $746 million in shares through July 2023, reducing share count by 16%.

Headline financials

Total Revenue

$1.05B

Previous: $1.02B+3.2%
EPS (adj)

$0.54

Previous: $0.56-3.6%
Total Bookings

$1.14B

Previous: $1.12B+2.0%
ARPU

$199.00

No prior period
Total Customers

21.0K

No prior period
Capital Expenditures

-$28.6M

Previous: -$30.2M+5.3%
Free Cash Flow

$54.3M

Previous: $60.2M-9.8%
Net Income

$82.9M

Previous: $90.4M-8.3%
Operating Income

$120M

Previous: $125M-4.0%
Gross Profit

-$430M

Previous: -$407M-5.6%
Total Assets

$6.79B

Previous: $6.9B-1.6%

Revenue & EPS history

GoDaddy · Revenue · Quarterly

$1.05B

Q2 2023+3.2%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

GoDaddy · $352M total across 1 segment · Q2 2023

  • Applications and Commerce
    $352M+10.9%

Forward guidance

For Q3 2023, GoDaddy targets revenue between $1.055 billion and $1.075 billion, with a Normalized EBITDA margin of approximately 26%. For the full year 2023, the company expects a Normalized EBITDA margin of approximately 26% and unlevered free cash flow of approximately $1.2 billion.

Tailwinds

  • Targeting Q3 2023 revenue between $1.055 billion and $1.075 billion, representing year-over-year growth of 3% at the midpoint.
  • Targeting Normalized EBITDA margin of approximately 26% for Q3 2023.
  • Expecting Normalized EBITDA margin of approximately 26% for the full year 2023.
  • Expecting unlevered free cash flow of approximately $1.2 billion for the full year 2023, representing growth of 9% year-over-year.
  • Expecting free cash flow of approximately $1.0 billion for the full year 2023, representing growth of 3% year-over-year.

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 2023

Historical avgQ2 2023

+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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