Yahoo Finance GoDaddy Inc. (NYSE:GDDY) Q1 2024 Earnings Call Transcript
GoDaddy Inc. (NYSE:GDDY) Q1 2024 Earnings Call Transcript May 2, 2024
GoDaddy Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Christie Masoner: Welcome to GoDaddy's First Quarter 2024 Earnings Call. Thank you for joining us. I'm Christie Masoner, Vice President of Investor Relations. And with me today are Aman Bhutani, Chief Executive Officer; and Mark McCaffrey, Chief Financial Officer. Following prepared remarks, we will open up the call for your questions. [Operator Instructions] On today's call, we'll be referencing both GAAP and non-GAAP financial measures and other operating and business metrics. A discussion of why we use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalents may be found in the presentation posted to our Investor Relations site at investors.goddady.net or in today's earnings release on our Form 8-K furnished at the SEC.
Growth rates presented represent year-over-year comparisons, unless otherwise noted. The matters we'll be discussing today include forward-looking statements such as those related to future financial results and our strategies or objectives with respect to future operations. These forward-looking statements are subject to risks and uncertainties that are discussed in detail in our periodic SEC filings. Actual results may differ materially from those contained in forward-looking statements. Any forward-looking statements that we make on this call are based on assumptions as of today, May 2nd, 2024. And except to the extent required by law, we undertake no obligation to update these statements because of new information or future events. With that, I'm pleased to introduce Aman.
Aman Bhutani: Good afternoon and thank you for joining us today. At GoDaddy, our mission is to empower everyday entrepreneurs and make opportunity more inclusive for all. Our strategy relentlessly focuses on creating customer value and successfully transitions it to shareholder value. This is the driving force behind our profitable growth model that maximizes free cash flow. I am excited by the innovative experiences we are delivering for our customers, the dedication and velocity of execution of our teams and the trajectory those have created for our company. At our Investor Day, we shared our updated three-year strategic framework and financial targets. As our Q1 results showcase, we are off to a strong start in 2024. In service of our North Star, we continue to expand our free cash flow meaningfully, delivering 26% free cash flow growth.
The pillars behind our North Star are accelerating growth in our Applications and Commerce segment and disciplined margin expansion. In Q1, Applications and Commerce bookings accelerated to 22% and normalized EBITDA margin expanded 400 basis points. At our Investor Day, we also shared our progress on the GoDaddy Software Platform. The GoDaddy Software Platform helped create game-changing customer experiences like GoDaddy AiroTM. It combines the power of our infrastructure, large-scale data, AI and machine learning, experimentation and monetization to power our growth and margin drivers. Today, I wanted to provide an update on four of the key initiatives we shared previously. First, enhancing our pricing and bundling capabilities remains an important lever for GoDaddy.
This quarter we focused our pricing and bundling efforts on our productivity solutions which was a key contributor to the 22% bookings growth in our Applications and Commerce segment. Our software platform has a vast amount of data, and we leverage that data in more and more pricing and bundling experimentations. This gives us powerful insights on how and where to push forward as we continue to roll these learnings into additional products and bundles over time. Second, creating seamless experiences for our customers continues to be a key priority. We are removing friction out of every piece of the Entrepreneur’s Wheel, saving our customers time and money. We continuously work on simplification and performance improvements that deliver value for our customers.
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