GoDaddy adds 1.4 million net customers in 2020

GoDaddy Inc. (NYSE: GDDY) today reported financial results for the fourth quarter and year ended December 31, 2020.

“2020 was a really strong year for our business despite the obvious challenges, as our customers proved once again to be resourceful entrepreneurs and successfully pivoted to expand their online presence,” said GoDaddy CEO Aman Bhutani. “We are confident that our 2021 plans to drive innovation and growth will not only bring more everyday entrepreneurs to the GoDaddy ecosystem, but will also help our existing customers achieve new heights of individual success.”

“Aggressive and disciplined investment led to an acceleration across our business,” said GoDaddy CFO Ray Winborne. “With a continued tailwind from elevated demand, and strong returns on our investments, we will continue to lean in on product and marketing to drive further acceleration in 2021.”

• Total revenue of $873.9 million, up 12.0% year over year, on a reported and constant currency basis.
• Total bookings of $943.1 million, up 13.1% year over year, on a reported and constant currency basis.
• Net cash provided by operating activities of $165.9 million, up 2.3% year over year.
• Unlevered free cash flow of $181.1 million, up 1.9% year over year.
• Customers of 20.6 million at December 31, 2020, up 7.1% year over year.
• ARPU of $166, up 5.1% year over year.
• Domains revenue of $402.2 million, up 14.2% year over year.
• Hosting and Presence revenue of $308.8 million, up 5.5% year over year.
• Business Applications revenue of $162.9 million, up 20.4% year over year.
• International revenue of $293.2 million, up 12.2% year over year, or 12.3% on a constant currency basis.

Business Updates

• GoDaddy’s Chief Financial Officer, Ray Winborne, and Chief Legal Officer, Nima Kelly, also announced their intention to retire in 2021. Both leaders are committed to a seamless transition to their respective successors, and will remain in their roles throughout that process.
• GoDaddy completed the Poynt acquisition in February 2021, giving the company a head start in integrating a set of products that span the full spectrum of commerce enablement. This acquisition brings payment capabilities as a payment facilitator and value to customers through its innovative point of sale terminals, inventory management software, loyalty management tools, and more.
• GoDaddy welcomed nearly 1.4 million net new customers in 2020, the largest annual net customer growth in the company’s history, excluding the year in which HEG was acquired.
• GoDaddy sees strong growth in its commerce offering within Websites + Marketing and in Sellbrite with GMV growth of 75% across all platforms nearing $7 billion.
• Websites + Marketing, GoDaddy’s website and marketing suite, launched freemium options in select markets, resulting in millions of sign-ups with strong conversion rates.
• GoDaddy introduced new Websites + Marketing templates and tools to make it easier than ever for entrepreneurs to quickly start selling their products online.
• GoDaddy introduced new tools across Websites + Marketing to power easy promotion of highlighted products and offers across the website and in organic social posts via streamlined integrations.
• GoDaddy invested aggressively in marketing in 2020, generating high incremental returns on both bookings and gross profit.
• For the third year in a row, The Human Rights Campaign awarded GoDaddy a perfect score in its 2021 Corporate Equality Index.
• In January 2021, GoDaddy launched The Hub, by GoDaddy Pro, allowing website designers and developers to perform their work in WordPress, a platform they know, in a simple, intuitive way that saves them time and money.

GoDaddy Inc. (NYSE: GDDY) today also announced that Nima Kelly, Chief Legal Officer, and Ray Winborne, Chief Financial Officer, plan to retire in 2021. Both Kelly and Winborne will remain in their positions until successors have been named and will aid in the transitions.

“Nima and Ray have both had immeasurable impact on GoDaddy, and their contributions will be long-felt,” said Aman Bhutani, GoDaddy CEO. “They have built world-class legal and financial teams, which will serve GoDaddy well as we onboard new leaders and continue to grow the company.  We wish both of them all the best in their retirements and thank them for their extraordinary leadership.”

Kelly joined GoDaddy in 2002, becoming GoDaddy’s General Counsel in 2012.  Under her leadership, Kelly built a high-performing legal team that took the company public, structured ongoing M&A transactions, including the $1.85 billion acquisition of HEG, and established corporate governance and public company processes.  Winborne took the role of GoDaddy CFO in 2016 and helped steer GoDaddy’s tremendous growth over the last five years, during which the company’s revenue nearly doubled.  During his tenure, GoDaddy created significant shareholder value, deploying nearly $5 billion in capital, including M&A, share repurchases, and the settlement of the company’s TRA.

GoDaddy has begun to search for both replacements, evaluating both internal and external talent.