GoDaddy (GDDY) Q4 2024 earnings summary

Executive summary

• Achieved 8% year-over-year revenue growth in 2024, reaching $4.6B, with bookings up 9% to $5.0B and strong performance in Applications & Commerce and Core Platform segments.

• Normalized EBITDA margin expanded to 31% for 2024 (32% in Q4), with free cash flow up 25% to $1.4B and unlevered free cash flow at $1.5B.

• Airo, the AI-powered platform, became a major customer entry point, driving over 50% of paid website subscriptions and boosting renewal rates and customer spend.

• Gross payments volume from commerce offerings grew 55% to $2.6B.

• Delivered at or ahead of all 2024 and Q4 targets, with continued focus on empowering entrepreneurs and expanding digital business solutions.

Financial highlights

• Q4 revenue was $1.2B, up 8% year-over-year; consolidated annual recurring revenue rose 8% to $4.04B.

• Applications & Commerce revenue grew 16–16.9% to $1.65B in 2024; Core Platform revenue up 3–3.4% to $2.92B.

• Q4 Applications & Commerce revenue up 17% to $441M; Core Platform up 4% to $751M.

• Q4 normalized EBITDA increased 19% to $385M, with margin expanding to 32%.

• Free cash flow for 2024 reached $1.36–$1.4B, up 25%; unlevered free cash flow $1.5B, up 20%.

Outlook and guidance

• 2025 revenue guidance: $4.86B–$4.94B (7% growth at midpoint); Q1 2025 revenue expected at $1.175B–$1.195B.

• Applications & Commerce revenue expected to grow mid-teens, Core Platform low single digits in 2025.

• Normalized EBITDA margin expected to expand by 100 bps in 2025, targeting ~33% by 2026.

• Free cash flow target for 2025 is at least $1.5B, up from $1.36B in 2024.

• U.S. growth to outpace international by 200 bps due to currency headwinds.