GoDaddy Q3 2020 Earnings Report
Key Takeaways
GoDaddy reported a strong Q3 2020 with revenue of $844.4 million, up 11% year-over-year. The company added over 400,000 net new customers this quarter and over 1 million in 2020 to date. GoDaddy also saw accelerated growth in bookings and revenue across all three product categories.
Total revenue reached $844.4 million, an 11.0% increase year-over-year (or 11.2% on a constant currency basis).
Total bookings amounted to $945.0 million, reflecting an 11.0% increase year-over-year (or 11.2% on a constant currency basis).
Unlevered free cash flow was $223.9 million, up 17.0% year-over-year.
Over 1 million net new customers were added in 2020.
GoDaddy
GoDaddy
GoDaddy Revenue by Segment
GoDaddy Revenue by Geographic Location
Forward Guidance
For the fourth quarter ending December 31, 2020, GoDaddy expects revenue of approximately $865 million, or approximately 11% year over year growth. For the full year, GoDaddy expects unlevered free cash flow of approximately $820 million, representing full year growth of 11% versus 2019.
Positive Outlook
- Revenue is expected to be approximately $865 million, representing approximately 11% year-over-year growth.
- Domains revenue growth is expected to approximate double-digit growth.
- Business Applications revenue growth is expected to approximate high-teens growth.
- Hosting and Presence revenue growth is expected to approximate mid-single-digit growth.
- Full year unlevered free cash flow is expected to be approximately $820 million, representing full year growth of 11% versus 2019.
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
- Release of reconciliations would imply an inappropriate degree of precision.
- Unpredictable nature of rapidly evolving market
- Fluctuations in financial and operating results