GoDaddy will pay $218 million for Neustar

GoDaddy Inc. (NYSE: GDDY) today reported financial results for the first quarter ended March 31, 2020.

GoDaddy announced the price of the registry business of Neustar Inc. acquisition for $218.0 million in cash, with expected closing in the coming months. Total GoDaddy revenue was $792.0 million, up 11.5% year over year, or 12.3% on a constant currency basis.

“GoDaddy delivered strong results in the first quarter,” said GoDaddy CEO Aman Bhutani. “In this time of uncertainty for small businesses, we are laser-focused on innovating for our customers, as their digital presence is now more important than ever. We believe our focus on customer value remains the best way to create value for our shareholders as well.”

“First quarter results were strong despite the challenging macro environment,” said GoDaddy CFO Ray Winborne. “The durability of our business model and strength of our balance sheet position us well in times of uncertainty, allowing us to focus on helping customers navigate the complexity of the current reality.”

  • Total revenue of $792.0 million, up 11.5% year over year, or 12.3% on a constant currency basis.
  • Total bookings of $951.1 million, up 9.3% year over year, or 10.1% on a constant currency basis.
  • Net cash provided by operating activities of $233.3 million, up 16.8% year over year.
  • Unlevered free cash flow of $234.5 million, up 18.0% year over year.
  • Domains revenue of $355.9 million, up 11.4% year over year.
  • Hosting and presence revenue of $297.2 million, up 10.5% year over year.
  • Business applications revenue of $138.9 million, up 14.3% year over year.
  • International revenue of $262.4 million, up 7.1% year over year, or 9.1% on a constant currency basis.

Operating Highlights

  • GoDaddy launched the #OpenWeStand initiative offering a number of free tools, widgets, resources and blogposts at OpenWeStand.org to help small businesses keep their digital doors open while their physical doors are closed. Over 50 companies have joined the cause, including American Express, Uber, Slack, Salesforce, PayPal, Nextdoor, GoFundMe, DoorDash, and more.
  • GoDaddy announced the acquisition of the registry business of Neustar Inc. for $218.0 million in cash, with expected closing in the coming months. This acquisition will enable the Company to innovate at the domain registry level, giving more choice to customers at competitive price points.
  • Relocated over 7,500 GoDaddy Guides to home offices to continue providing 24/7 assistance and sage guidance to our customers.
  • GoDaddy quickly pivoted its Websites + Marketing platform to begin offering freemium subscriptions to help small businesses get started online for free during these challenging times.
  • Websites + Marketing enabled and further enhanced additional integrations with GoFundMe and Paypal, as well as introduced virtual location appointment scheduling and gift card functionality.
  • GoDaddy launched Open Exchange in Indonesia, Thailand, Portugal and Vietnam, furthering its international reach and enabling more customers access to affordable domain-based email solutions.
  • Year-to-date through May 5, GoDaddy has repurchased 10 million shares of its common stock for an aggregate purchase price of $542 million for an average price per share of $54.25. These repurchases represent an approximately 6% reduction in fully diluted shares outstanding.

Consolidated First Quarter Financial Highlights

Three months ended March 31,

2020

2019

Change

(in millions)

GAAP Results

Revenue

$

792.0

$

710.0

11.5%

Net cash provided by operating activities

$

233.3

$

199.7

16.8%

Non-GAAP Results

Unlevered free cash flow

$

234.5

$

198.8

18.0%

Operating Metric

Total bookings

$

951.1

$

870.5

9.3%

Sold.Domains

About Konstantinos Zournas

I studied Computer Engineering and Computer Science in London, UK and now live in Athens, Greece. I love domains and building websites. I am online since 1995, learned about HTML in 1996 and about domains in 2002. I started publishing the OnlineDomain.com blog in 2012.

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