GoDaddy Q2 2016 Report: Revenue Up 15.6%, Domain Revenue Up 10.2%

“GoDaddy’s second quarter financial performance was strong, with revenue growing 16% or nearly 18% on a constant currency basis. With a clear strategy and consistent execution, we’ve delivered another great quarter and doubled the size of our business over the last four years,” said Blake Irving, GoDaddy’s Chief Executive Officer. “Additionally, we are pleased to welcome Ray Winborne as our new CFO and expand Scott Wagner’s leadership role.”

Second Quarter Financial Highlights

• Total revenue of $456.2 million, up 15.6% year over year, or approximately 17.6% on a constant currency basis.
• Domains revenue of $229.8 million, up 10.2% year over year.
• Hosting and Presence revenue of $167.5 million, up 15.1% year over year.
• Business Applications revenue of $58.9 million, up 45.4% year over year.
• International revenue of $119.0 million, up 17.6% year over year, or approximately 25.0% on a constant currency basis.
• Total bookings of $538.6 million, up 13.2% year over year, or approximately 14.4% on a constant currency basis.
• Net loss narrowed to $11.1 million in Q2 2016 from $71.3 million in Q2 2015.
• Adjusted EBITDA of $103.5 million, up 25.8% year over year.
• Net cash provided by operating activities of $92.4 million, up 95.3% year over year.
• Unlevered free cash flow of $83.9 million, up 9.0% year over year.
• Customers were 14.3 million at quarter end, up 7.9% year over year.
• Average revenue per user (ARPU) of $125, up 6.2% year over year.

Business Highlights

• Entered into an agreement to acquire FreedomVoice to boost the availability and quality of voice communication services for small business.
• Added GoDaddy Pro in new English and Spanish markets, and added support for more Indian languages. GoDaddy Pro also added in-app notifications, allowing members to more easily manage customers and their products.
• Rolled out Office 365 to small businesses across Asian markets.
• Expanded the GoDaddy Investor mobile app to support 15 new languages, as well as several new domain auction features.
• Launched Flare, empowering people to share ideas and get guidance from friends, fellow entrepreneurs and experts, and providing an immediate resource to receive feedback and help bring business ideas to life.
• Joined the federal ‘Fair Pay Pledge’ aimed at closing the gender pay gap between men and women in the United States.
• Pledged to hire 500 military veterans or spouses over the next five years.
• Recognized as a recipient of the “Best Workplaces for Millennials Award” in the U.S., according to FORTUNE magazine.
• Completed a secondary offering of approximately 19.0 million shares of its Class A common stock sold by certain of its stockholders at $30.25 per share onApril 6, 2016.

Balance Sheet

At June 30, 2016, total cash, cash equivalents and short-term investments were $481.7 million, total debt was $1,078.0 million and net debt was $596.3 million.