GoDaddy surpasses 20 million customers

GoDaddy Inc. (NYSE: GDDY) reported financial results for the second quarter ended June 30, 2020.

“Q2 was a very strong quarter for GoDaddy,” said GoDaddy CEO Aman Bhutani. “In addition to delivering great financial results, we found innovative ways to improve our products and allocate resources to drive long-term value for customers and shareholders.”

“We are extremely pleased to be able to settle our TRA obligation for a one-time payment of $850 million, versus what would have been $1.8 billion over the next 10+ years,” said GoDaddy CFO Ray Winborne. “This settlement is an efficient and highly accretive use of capital, and a good opportunity to reduce uncertainty around our future cash flows.”

• Total revenue of $806.4 million, up 9.4% year over year, or 10.2% on a constant currency basis.
• Total bookings of $936.3 million, up 10.7% year over year, or 12.1% on a constant currency basis.
• Net cash provided by operating activities of $168.1 million, up 4.2% year over year.
• Unlevered free cash flow of $185.9 million, up 10.8% year over year.
• Domains revenue of $369.6 million, up 10.5% year over year.
• Hosting and presence revenue of $292.2 million, up 4.4% year over year.
• Business applications revenue of $144.6 million, up 17.6% year over year.
• International revenue of $266.1 million, up 7.4% year over year, or 9.9% on a constant currency basis.

Operating Highlights

• GoDaddy has now surpassed 20 million paying customers, having added more than 400,000 net new customers during Q2.
• Investment in marketing expected to continue at increased rate as thresholds for return on spend remain attractive and unit economics improved quarter over quarter.
• Websites + Marketing, GoDaddy’s website building platform, sees solid user and revenue growth, as well as a strong funnel of new freemium users.
• GoDaddy added its Sellbrite commerce offering to the freemium lineup, as well as more accessible pricing for paid subscriptions.
• The commerce tier of GoDaddy’s Websites + Marketing product accelerated with net adds growing 60% quarter-over-quarter and 90% year-over-year.
• As the global champion of WordPress, GoDaddy sees strong adoption of its Go Theme in the top 8 of nearly 8,000 available themes in the WordPress ecosystem.
• GoDaddy’s acquisition of Uniregistry is showing significant progress in integration with shorter sales cycles and early revenue synergies.
• Over, GoDaddy’s content creation acquisition, sees acceleration in both monthly average users and subscribers since completion.
• In August, GoDaddy completed the previously announced acquisition of the registry business of Neustar Inc. for $215.9 million in cash, subject to final adjustments.
• GoDaddy announces settlement of its entire Tax Receivable Agreements (TRAs) obligation for a one-time aggregate $850 million payment. At current tax rates, the settlement is expected to eliminate an estimated $1 billion in tax-related payments through 2028, and more thereafter.