GoDaddy revenue is up 11.9%, domain revenue is up 11.6%

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GoDaddy Inc. (NYSE: GDDY) reported financial results for the third quarter ended September 30, 2019.

“GoDaddy sits in a privileged position relative to a massive opportunity, strengthened by our differentiation in guidance, seamlessly intuitive experiences, and the potential in activating our community,” said GoDaddy CEO Aman Bhutani. “Our execution focus is on strengthening our platform, increasing our experimentation, and continually accelerating our product, which lays the foundation to increase value to customers and returns to shareholders for years to come.”

  • Total revenue of $760.5 million, up 11.9% year over year, or 13.3% on a constant currency basis.
  • Total bookings of $851.0 million, up 14.7% year over year, or 15.7% on a constant currency basis.
  • Net cash provided by operating activities of $200.2 million, up 30.0% year over year.
  • Unlevered free cash flow of $191.3 million, up 8.9% year over year.
  • Customers of 19.1 million, up 4.6% year over year.
  • Average revenue per user (ARPU) of $155, up 7.1% year over year.
  • Domains revenue of $345.3 million, up 11.6% year over year.
  • Hosting and Presence revenue of $285.0 million, up 8.3% year over year.
  • Business Applications revenue of $130.2 million, up 21.9% year over year.
  • International revenue of $254.3 million, up 7.8% year over year, or 11.7% on a constant currency basis.

Operating Highlights

  • GoDaddy’s Websites + Marketing platform exceeded 1 million paid subscriptions, reflecting the power and popularity of this rapidly evolving suite since its debut as GoCentral in 2017.
  • In September 2019, GoDaddy announced InSight, a feature of Websites + Marketing that delivers specific, tailored, step-by-step marketing plans for customers across their websites, social media, online reviews and marketplaces.
  • GoDaddy launched a platform-wide update to its Managed WordPress platform, compounding its leading position in WordPress with unparalleled simplicity, proprietary design tools, security, and plugin automation.
  • GoDaddy announced a partnership with WooCommerce, the most popular and powerful eCommerce engine available for WordPress, dramatically simplifying the process of starting and running an eCommerce store.
  • In October 2019, GoDaddy refinanced the entire outstanding principal amount of its term loans to lower the interest rate margins by 0.25%, reducing annual cash interest by $4.6 million. The refinanced loans were issued at a 0.125% discount at original issue, with no changes made to the maturity date or other terms of the loans.
  • During Q3, GoDaddy repurchased 6.2 million shares of its Class A common stock in the open market for an aggregate purchase price of $399.6 million. Subsequent to quarter end, GoDaddy repurchased an additional 1.0 million shares of its Class A common stock for an aggregate purchase price of $59.0 million.

Consolidated Third Quarter Financial Highlights(1)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2019

2018

Change

2019

2018

Change

(in millions, except customers in thousands and ARPU)

GAAP Results

Revenue

$

760.5

$

679.5

11.9%

$

2,207.7

$

1,964.3

12.4%

Net cash provided by operating activities(2)

$

200.2

$

154.0

30.0%

$

561.2

$

431.3

30.1%

Non-GAAP Results

Unlevered free cash flow

$

191.3

$

175.6

8.9%

$

557.9

$

492.7

13.2%

Operating Metrics

Total bookings

$

851.0

$

741.8

14.7%

$

2,567.6

$

2,279.1

12.7%

Total customers at period end

19,110

18,267

4.6%

19,110

18,267

4.6%

ARPU

$

155

$

145

7.1%

$

155

$

145

7.1%

(1)

See reconciliation tables for a detailed listing of certain items included in our condensed consolidated statements of operations.

(2)

Net cash provided by operating activities in 2018 includes cash tax payments made in connection with the gain on the August 2017 sale of PlusServer.

Balance Sheet

At September 30, 2019, total cash, cash equivalents and short-term investments were $990.2 million, total debt was $2,438.6 million and net debt was $1,448.4 million.

Share Repurchase Authorization

GoDaddy today announced that its Board of Directors has approved a new share repurchase authorization to acquire an incremental $500.0 million of the company’s Class A common stock, bringing the total repurchase capacity to $541.0 million. GoDaddy may purchase shares from time to time in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws. The new program has no time limit and may be modified, suspended or terminated by the company at any time without prior notice. The amount and timing of repurchases are subject to a variety of factors including liquidity, share price, market conditions and legal requirements. Share repurchases will be funded by available cash and cash equivalents.

 

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About Konstantinos Zournas

Konstantinos studied Computer Engineering and Computer Science in London and lives in Athens, Greece. He loves domains and building websites. He is online since 1995, learned about html in 1996 and got into domains in 2002. He started the OnlineDomain.com blog in 2012.

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