What's Going On With GoDaddy Shares

  • GoDaddy Inc GDDY reported Q1 2023 revenue growth of 3.3% to $1.036 billion (+4.7% Constant Currency), broadly in line with the consensus
  • Applications & commerce revenue rose 11.5%, while Core platform fell 0.2% Y/Y. International revenue increased 3.3% Y/Y in the quarter. 
  • ARR for Applications and commerce segment rose 9% Y/Y, and for Core platform grew 1% Y/Y in Q1.
  • Gross merchandise volume rose 18% Y/Y to $28 billion. Gross payments volume from GoDaddy's commerce surpassed $1 billion of annualized GPV in Q1.
  • Total bookings and customers grew by 3.7% Y/Y and 0.7% Y/Y, with an annual revenue per user growth of 4.0% Y/Y.
  • Normalized EBITDA rose 10.5% to $249.7 million, with margins expanding 160 bps Y/Y to 24.1%.
  • EPS of $0.30 missed the consensus of $0.50.
  • Cash and equivalents stood at $892.4 million at the end of Q1, while total debt stood at $3.90 billion.
  • Unlevered free cash flow increased 6.0% Y/Y to $303.9 million in the quarter.
  • With regard to the previously announced restructuring plan, the company recorded pre-tax restructuring charges of $50.4 million in Q1, including a $21.0 million charge related to the planned asset disposal. It expects restructuring and related exit charges of around $55 million to $65 million in H1 2023
  • In May 2023, Microsoft Corp MSFT joined GoDaddy to facilitate payment in virtual meetings. 
  • Repurchases: GoDaddy repurchased shares worth $113.9 million year-to-date through March 2023.
  • Outlook: For Q2 2023, GDDY expects revenues of $1.045 billion-$1.065 billion (+4% Y/Y at mid-point, consensus $1.06 billion) and a normalized EBITDA margin of about 25%. 
  • For 2023, the company reaffirms its outlook for revenues at $4.250 billion-$4.325 billion (+5% Y/Y at the midpoint, consensus $4.29 billion) and a normalized EBITDA margin at about 26%. GDDY expects an unlevered free cash flow of around $1.2 billion (+9% Y/Y). 
  • Price Action: GDDY shares closed lower by 4.55% at $69.00 after-hours on Thursday.
Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesLarge CapNewsGuidanceBuybacksMarketsMoversTechBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!