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Sep 30, 2023
GoDaddy Q3 2023 Earnings Report
GoDaddy's Q3 2023 earnings reflected growth in Applications and Commerce revenue and ARR, alongside achieving targeted NEBITDA margin ahead of schedule.
Key Takeaways
GoDaddy reported a 3.5% increase in total revenue, reaching $1,069.7 million. Applications and Commerce revenue grew by 11.4% to $363.3 million, with a corresponding ARR growth of 11% to $1.4 billion. The company's net income was $131 million, representing a 12% margin, and Normalized EBITDA reached $296 million, achieving a 28% margin.
GoDaddy achieved a 12% net income margin and a 28% Normalized EBITDA margin, reaching its 2023 NEBITDA exit rate target one quarter ahead of schedule.
Applications and Commerce revenue increased by 11% year-over-year to $363 million, with ARR growing by 11% to $1.4 billion.
Core Platform revenue and ARR remained relatively flat year-over-year at $706 million and $2.3 billion, respectively.
The company completed the integration of two platforms into its technology stack, simplifying infrastructure and enabling future margin opportunities.
GoDaddy
GoDaddy
GoDaddy Revenue by Segment
Revenue by Segment
Applications & Commerce Revenue
CapyFin.com Forward Guidance
For Q4 2023, GoDaddy anticipates total revenue between $1.095 billion and $1.115 billion, representing 6% year-over-year growth at the midpoint. They also expect applications and commerce revenue to grow by approximately 13% and core platform revenue to grow between 2% and 3%. The company raises its targeted NEBITDA margin to approximately 29% for the same period.
Positive Outlook
- Total revenue in the range of $1.095 billion to $1.115 billion, representing year-over-year growth of 6% at the midpoint.
- Applications and commerce revenue growth of approximately 13%.
- Core platform revenue growth in the range of 2% to 3%.
- Targeted NEBITDA margin raised to approximately 29%.
- Targeting to deliver approximately 31% NEBITDA margin for the fourth quarter ending December 31, 2024.