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Jun 30, 2020
GoDaddy Q2 2020 Earnings Report
GoDaddy's Q2 2020 earnings were released, surpassing 20 million customers and achieving record customer growth. Bookings grew by 12% in constant currency.
Key Takeaways
GoDaddy reported a strong second quarter, exceeding 20 million customers and achieving record customer growth. Total revenue reached $806.4 million, a 9.4% increase year-over-year, and total bookings grew by 10.7% to $936.3 million. The company also announced the settlement of its Tax Receivable Agreements (TRAs) for $850 million.
GoDaddy surpassed 20 million customers, with over 400,000 net new customers added in Q2.
Total revenue increased by 9.4% year-over-year to $806.4 million, or 10.2% on a constant currency basis.
Total bookings grew by 10.7% year-over-year to $936.3 million, or 12.1% on a constant currency basis.
The company settled its Tax Receivable Agreements (TRAs) obligation for a one-time payment of $850 million.
GoDaddy
GoDaddy
Forward Guidance
GoDaddy expects total revenue of approximately $835 million for the third quarter ending September 30, 2020, representing approximately 10% year-over-year growth. For the full year, the company anticipates revenue growth of approximately 10% versus 2019 and unlevered free cash flow in the range of $815 to $825 million.
Positive Outlook
- Revenue growth by category is expected to approximate double-digit growth in domains.
- Revenue growth by category is expected to approximate mid-single-digit growth in Hosting and Presence.
- Revenue growth by category is expected to approximate high-teens growth in Business Applications.
- Full year revenue growth of approximately 10% versus 2019 is expected.
- Unlevered free cash flow is expected in the range of $815 to $825 million for the full year.
Challenges Ahead
- 2020 includes 27 pay periods versus 26 in a normal year, resulting in an incremental cash outflow of approximately $18 million in the fourth quarter.
- Projections of changes in individual balance sheet amounts are not possible without unreasonable effort.
- Reconciliations from non-GAAP guidance to GAAP are not provided.
- The projections are based on estimates and information available at the time of the press release and are not guarantees of future performance.
- Actual results could differ materially from current expectations as a result of many factors.