GoDaddy reports Q3 2023 results

GoDaddy Inc. (NYSE: GDDY) today reported financial results for the third quarter that ended September 30, 2023.

“GoDaddy is at the forefront of one of our most exciting eras yet, with the product investments we’ve made over the past several years driving cutting-edge solutions that cater to the evolving needs of our customers,” said GoDaddy CEO Aman Bhutani. “We are thrilled to share one such game-changing innovation, our newly launched AI experience, GoDaddy Airo^TM, at our upcoming Investor Dinner in November. At the same time, we are upholding our commitment to operational discipline to foster profitable growth, efficiency and resilience.”

“We are pleased with our progress toward our goal of delivering profitable growth and margin expansion, as evidenced by the strong performance in our Applications & Commerce segment,” said GoDaddy CFO Mark McCaffrey. “We are excited about the momentum in our business as we venture into a new phase of product offerings and we are confident in our ability to generate further margin expansion, creating long-term value for our shareholders.”

Business Highlights

• GoDaddy delivered net income margin of 12% and expanded Normalized EBITDA (NEBITDA) margin of 28%, achieving the targeted 2023 NEBITDA exit rate one quarter ahead of schedule.
• Applications and Commerce (A&C) revenue grew 11%, year-over-year, to $363 million in the third quarter. Annualized recurring revenue (ARR) for A&C grew 11% year-over-year, to $1.4 billion in the third quarter.
• Core Platform (Core) revenue and ARR totaled $706 million and $2.3 billion, respectively, in the third quarter, both flat year-over-year.
• GoDaddy completed the integration of two platforms into its technology stack, simplifying its infrastructure and enabling further margin opportunities in coming quarters.
• GoDaddy introduced Instant Video, a new AI-powered feature within its GoDaddy Studio App, empowering small businesses to quickly create social media and video content, increase customer engagement, and seize digital marketing and social commerce opportunities.