GoDaddy (GDDY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 7.3% year-over-year to $1.124 billion, surpassing guidance, with Applications & Commerce up 15% and Core Platform up 3%.

• Net income increased 76% year-over-year to $146.3 million, with a 13% margin.

• Normalized EBITDA rose 25% to $331.7 million, margin expanded to 29.5%, and free cash flow grew 35% to $323.4 million.

• Applications and commerce bookings grew 24%, with strong international expansion and product attach.

• AI-powered Airo platform rolled out to all English-speaking markets, with over 1 million new customers discovering it and over 500,000 engaging.

Financial highlights

• Applications & Commerce revenue grew 15.3% to $405.6 million; Core Platform revenue up 3.2% to $718.9 million.

• Bookings reached $1.262 billion, up 11% year-over-year; ARPU increased 6% to $210.

• Normalized EBITDA was $331.7 million, up 25.4% year-over-year; margin expanded to 29.5%.

• Net income for Q2 2024 was $146.3 million, with a net income margin of 13%.

• Net cash from operating activities was $294.8 million, up 49% year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.525–$4.565 billion, 7% growth at midpoint.

• Q3 2024 revenue expected between $1.13–$1.15 billion, up 7% year-over-year at midpoint.

• Applications & Commerce segment projected to grow at mid-teens rates; Core Platform at low single digits.

• Normalized EBITDA margin expected at ~29% for Q3 and full year, with Q4 exit rate at 31%.

• Free cash flow target raised to at least $1.3 billion for 2024.