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Dec 31, 2022
GoDaddy Q4 2022 Earnings Report
GoDaddy reported strong revenue and cash flow growth, driven by an innovative product roadmap and enabling commerce on every surface.
Key Takeaways
GoDaddy reported Q4 2022 financial results, with total revenue of $1.04 billion, a 2.0% increase year-over-year. The company's annualized recurring revenue (ARR) grew 4% year-over-year to $3.57 billion. GoDaddy also signed a partnership agreement with FIS Worldpay to sell OmniCommerce solutions.
Signed a partnership agreement with FIS Worldpay to sell OmniCommerce solutions.
Launched Managed WooCommerce Stores solution.
Implemented payments by default, attaching GoDaddy's payments platform to domains and website building plans.
Annualized recurring revenue (ARR) for applications & commerce grew 9% year-over-year to $1.3 billion.
GoDaddy
GoDaddy
GoDaddy Revenue by Segment
Revenue by Segment
Applications & Commerce Revenue
CapyFin.com Forward Guidance
GoDaddy expects Q1 2023 total revenue to be in the range of $1.030 billion to $1.050 billion, representing year-over-year growth of 4% at the midpoint. For the full year 2023, GoDaddy is targeting total revenue in the range of $4.250 billion to $4.325 billion, representing year-over-year growth of 5% at the midpoint.
Positive Outlook
- Q1 2023 total revenue expected to grow by 4% year-over-year at the midpoint.
- FY 2023 total revenue expected to grow by 5% year-over-year at the midpoint.
- Q1 2023 Normalized EBITDA margin expected to be in the range of 24% to 25%.
- FY 2023 Normalized EBITDA margin expected to be approximately 26%.
- FY 2023 unlevered free cash flow expected to grow by 9% year-over-year.
Challenges Ahead
- Restructuring plan expected to incur approximately $55 million to $65 million in charges in the first half of 2023.
- Macroeconomic conditions and geopolitical tensions may impact future results.
- Execution of share repurchases may be affected by market conditions.
- Technological, regulatory, and legal developments could impact results.
- Disruptions to business as a result of the restructuring plan.