Yahoo Finance GoDaddy (GDDY) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
GoDaddy GDDY reported second-quarter 2024 adjusted earnings of $1.10 per share, beating the Zacks Consensus Estimate by 2.8% and jumped 74.6% year over year.
GDDY generated revenues of $1.12 billion, surpassing the Zacks Consensus Estimate by 0.97%. Revenues increased 7.3% year over year on a reported basis and a constant-currency (cc) basis.
Quarter in Detail
Applications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications and payments & commerce, generated $405.6 million (contributing 36.1% to total revenues), up 15.3% on a year-over-year basis.
Core Platform, consisting of domains, aftermarket, hosting and security, increased 3.2% year over year to $718.9 million (contributing 63.9% to total revenues).
In the second quarter, international revenues were $357.1 million, up 4.7% year over year on a reported and cc basis.
GoDaddy Inc. Price, Consensus and EPS Surprise
GoDaddy Inc. price-consensus-eps-surprise-chart | GoDaddy Inc. Quote
Total bookings of $1.3 billion increased 11% year over year and at cc.
Average revenues per user were $210, up 5.5% year over year.
Total annualized recurring revenues (ARR) were $3.85 billion, up 6.5% year over year. In the reported quarter, Applications & Commerce ARR was $1.5 billion, up 14% year over year. Core platform ARR totaled $2.3 billion and moved up 2% year over year.
Total customers at the end of the second quarter were 20,866, down 0.6% year over year.
Operating Results
On a non-GAAP basis, normalized EBITDA in the second quarter was $331.7 million, up 25.4% year over year.
Operating expenses (technology and development, marketing and advertising, customer care and general and administrative) of $468 million declined 2.3% year over year. As a percentage of revenues, operating expenses contracted 410 basis points (bps) year over year to 41.6%.
Operating income was $208.2 million, up 74.1% year over year. Operating margin expanded 710 bps year over year to 18.5%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents were $444.9 million compared with $664 million as of Mar 31, 2024.
As of Jun 30, 2024, GoDaddy had a total debt of $3.9 billion, unchanged sequentially.
Free cash flow was $323 million compared with the previous quarter’s $327.4 million.
In the second quarter, GoDaddy repurchased 4.1 million shares of its common stock for $520.8 million.
Guidance
For the third quarter of 2024, GoDaddy expects revenues of $1.13-$1.15 billion, indicating year-over-year growth of 7% at the mid-point.
The company expects third-quarter A&C revenue growth in the mid-teens and Core revenue growth in the low single digits.
For the third quarter, GDDY expects the normalized EBITDA margin to be 29%.
For 2024, GoDaddy expects total revenues of $4.525-$4.565 billion, indicating year-over-year growth of 7% at the mid-point.
The normalized EBITDA margin for the full year is expected to be 29%.
For 2024, GoDaddy anticipates a free cash flow of at least $1.3 billion.
Zacks Rank & Stocks to Consider
GDDY currently carries a Zacks Rank #3 (Hold).
The stock has increased 33.2% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 17.2%.
Shopify SHOP, CACI International CACI and Dell Technologies DELL are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shopify shares have declined 25.4% year to date. SHOP is set to report second-quarter 2024 results on Aug 7.
CACI International shares have gained 43.2% year to date. CACI is set to report fourth-quarter fiscal 2024 results on Aug 8.
Dell Technologies shares have gained 41.7% year to date. DELL is set to report second-quarter fiscal 2025 results on Aug 29.
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