雅虎香港財經 GoDaddy (GDDY) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
GoDaddy GDDY reported adjusted earnings of $1.08 per share in first-quarter 2024, up from the year-ago quarter’s earnings of 30 cents. The figure beat the Zacks Consensus Estimate by 8%.
GDDY generated revenues of $1.1 billion, surpassing the Zacks Consensus Estimate by 1.07%. Revenues rose 7% year over year on a reported basis and 6.9% on a constant-currency (cc) basis.
Quarter in Detail
Applications & Commerce, comprising Websites + Marketing, Managed WordPress, productivity applications and payments & commerce, generated $383.1 million (contributing 34.6% to total revenues), up 13.3% on a year-over-year basis. The figure beat the consensus mark by 0.24%.
Core Platform, consisting of domains, aftermarket, hosting and security, increased 3.9% year over year to $725.4 million (contributing 65.4% to total revenues). The figure beat the consensus mark by 1.52%.
GoDaddy Inc. Price, Consensus and EPS Surprise
GoDaddy Inc. price-consensus-eps-surprise-chart | GoDaddy Inc. Quote
In the first quarter, international revenues were $352.9 million, up 3.6% year over year on a reported basis and 3.5% at cc.
Total bookings of $1.3 billion increased 9.5% year over year and at cc. The figure beat the consensus mark by 3.45%.
Average revenues per user were $206, up 4.6% year over year. The figure beat the Zacks Consensus Estimate by 60.34%.
Total annualized recurring revenues (ARR) were $3.8 billion, up 6.5% year over year. In the reported quarter, Applications & Commerce ARR was $1.5 billion, up 13% year over year. Core platform ARR totaled $2.3 billion and moved up 3% year over year.
Total customers at the end of the first quarter were 20,995.
Operating Results
On a non-GAAP basis, normalized EBITDA in the first quarter was $313 million, up 25.4% year over year.
Operating expenses (technology and development, marketing and advertising, customer care and general and administrative) of $458.5 million declined 4.1% year over year. As a percentage of revenues, operating expenses contracted 480 basis points (bps) year over year to 0.41%.
Operating income was $175.9 million, up from the year-ago quarter’s operating income of $70.8 million. As a percentage of revenues, operating income expanded 90 bps year over year to 15.87%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents were $664 million compared with $498.8 million as of Dec 31, 2023.
As of Mar 31, 2024, GoDaddy had a total debt of $3.9 billion compared with a total debt of $3.82 billion as of Dec 31, 2023.
Net Debt was $3.2 billion in the first quarter of 2024 compared with $3.9 billion of net debt in the previous quarter.
The unlevered free cash flow grew 18% to $358.6 million, whereas the free cash flow rose 26.3% to $327.4 million in the reported quarter.
In the first quarter, GoDaddy repurchased 2.8 million shares of its common stock.
Guidance
For second-quarter 2024, GoDaddy expects revenues of $1.10-$1.12 billion, indicating year-over-year growth of 6% at the mid-point.
GoDaddy expects second-quarter A&C revenue growth in the low- to mid-teens and Core revenue growth in the low single digits.
For the second quarter, GDDY expects the normalized EBITDA margin to be 28%.
For 2024, GoDaddy expects total revenues of $4.50-$4.56 billion, indicating year-over-year growth of 6.5% at the mid-point.
The normalized EBITDA margin for the full year is expected to be 29%.
For 2024, GoDaddy anticipates an unlevered free cash flow of at least $1.4 billion.
Zacks Rank & Stocks to Consider
GDDY currently carries a Zacks Rank #3 (Hold).
The stock has increased 16.7% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 8.5%.
Arista Networks ANET, Applied Material AMAT and Dell Technologies DELL are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have appreciated 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
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