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Mar 31, 2023
GoDaddy Q1 2023 Earnings Report
GoDaddy had a strong first quarter, demonstrating progress towards returning to double-digit revenue growth with the Applications and Commerce segment exceeding growth targets.
Key Takeaways
GoDaddy reported a solid first quarter, with Applications and Commerce segment exceeding growth targets. The company is making strides towards achieving double-digit revenue growth and expanding operating margins.
GoDaddy Payments annualized gross payments volume crossed $1 billion in its first year.
Create + Grow annualized recurring revenue accelerated to 10% growth year-over-year.
Applications and commerce revenue grew to $338 million, up 12%.
Total revenue increased by 3.3% year-over-year to $1,036 million.
Revenue by Segment
Forward Guidance
For Q2 2023, GoDaddy targets revenue between $1.045 billion and $1.065 billion, with a Normalized EBITDA margin of approximately 25%. For the full year 2023, revenue is projected between $4.250 billion and $4.325 billion, with an expected Normalized EBITDA margin of approximately 26% and unlevered free cash flow of approximately $1.2 billion.
Positive Outlook
- Targeting total revenue in the range of $1.045 billion to $1.065 billion for the second quarter ending June 30, 2023.
- Expecting year-over-year revenue growth of 4% at the midpoint for Q2 2023.
- Targeting Normalized EBITDA margin of approximately 25% for the second quarter ending June 30, 2023.
- Projecting total revenue in the range of $4.250 billion to $4.325 billion for the full year ending December 31, 2023.
- Expecting unlevered free cash flow of approximately $1.2 billion for the full year ending December 31, 2023.
Challenges Ahead
- Guidance does not provide reconciliations from non-GAAP guidance to GAAP equivalents.
- Projections of changes in individual balance sheet amounts are not possible without unreasonable effort.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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