GoDaddy (GDDY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 7% year-over-year to $1.15 billion, with strong Applications & Commerce (A&C) segment gains and continued profitability.

• Net income rose 45% to $190.5 million, with normalized EBITDA up 24% to $366.5 million and margin expanding to 32%.

• Free cash flow increased 29% to $363 million, and unlevered free cash flow reached $399 million.

• Strategic focus on innovation, AI-powered Airo platform, and operational efficiency drove results, with Airo now in over 180 countries and nearly 3 million customers.

• Delivered at or ahead of all Q3 targets, with disciplined capital allocation and margin expansion.

Financial highlights

• Q3 revenue was $1.15 billion, up 7% year-over-year; A&C revenue grew 16% to $423 million, Core Platform revenue rose 3% to $725 million.

• Normalized EBITDA reached $367 million (32% margin), up from $296 million (28% margin) in Q3 2023.

• Free cash flow was $363 million (29% growth); unlevered free cash flow $399 million (25% growth).

• ARPU increased 8% to $215; customer count slightly declined to 20,725, with retention at 85%.

• Net income margin improved to 16.6% from 12.2% in Q3 2023.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.545–$4.565 billion, representing 7% growth at midpoint.

• Q4 2024 revenue expected between $1.165–$1.185 billion, up 7% year-over-year at midpoint.

• A&C segment projected for mid-teens revenue growth in Q4 and full year; Core Platform for low single-digit growth.

• Full-year normalized EBITDA margin guidance raised to ~30%; Q4 margin expected at ~31%.

• Free cash flow target for 2024 raised to at least $1.325 billion; unlevered free cash flow to at least $1.475 billion.