Summary
GoDaddy posted total revenue of $1,124.5 million for the second quarter of fiscal 2024, up 7.3% from the prior-year quarter. For the six months ended June 30, 2024, revenue of $2,233.0 million was up 7.1%. The mix keeps tilting toward higher-value products. Applications and Commerce revenue grew 15.3% while Core Platform revenue grew 3.2%. Total bookings of $1,261.9 million rose 10.6%, or 11.1% on a constant currency basis. Annualized recurring revenue for A&C grew 14% to $1.5 billion, and Core ARR grew 2% to $2.3 billion. International revenue of $357.1 million was up 4.7%.
Profitability improved sharply. Operating income of $208.2 million rose 74.1%, and operating margin of 18.5% was up 7.1 percentage points from 11.4% in the prior-year quarter. Net income of $146.3 million was up 76.5%, and diluted earnings per share came in at $1.01, with year-to-date diluted earnings per share of $3.77. Normalized EBITDA of $331.7 million rose 25.4% at a 29.5% margin. Management credited lower average headcount and a migration toward a unified infrastructure platform for part of the margin gain, and restructuring and other charges fell year over year. The year-to-date net income line also carries a non-routine, non-cash tax benefit tied to the conversion of the Desert Newco subsidiary to a disregarded entity.
Cash generation was the standout. Net cash provided by operating activities was $294.8 million, up 48.9%, and $592.0 million for the six months, up 26.4%. Capital expenditures fell 51.7% to $2.8 million in the quarter. Free cash flow of $323.4 million rose 34.8%, and unlevered free cash flow of $368.7 million rose 30.0%. Deferred revenue of $2,230.4 million was up 7.2%, and remaining performance obligations of $3,096.5 million were up 7.5%. The balance sheet held $444.9 million of cash and cash equivalents, $3.9 billion of total debt and $3.4 billion of net debt at June 30, 2024. In May 2024 the company amended its credit agreement for a new $1.0 billion tranche of term loans, extended certain maturities to 2031 and cut 25 basis points off the refinanced debt, moves expected to reduce annual cash interest expense by roughly $25.0 million.
Capital returns stayed aggressive. Year to date through July 30, 2024, GoDaddy repurchased 4.1 million shares for $520.8 million, an average price of $126.35, and the company says cumulative buybacks equal an approximate 23% reduction in fully diluted shares since the January 2022 start of the current $4.0 billion authorization. Guidance points to steady momentum. For the third quarter ending September 30, 2024, the company expects revenue of $1.13 billion to $1.15 billion, about 7% growth at the midpoint, with A&C growth in the mid-teens and Core growth in the low single digits, plus a NEBITDA margin near 29%. For the full year ending December 31, 2024, revenue guidance was raised to $4.525 billion to $4.565 billion, about 7% growth at the midpoint, with a full-year NEBITDA margin near 29% and a fourth quarter margin near 31%. Full-year unlevered free cash flow is targeted at no less than $1.45 billion, growth of 16%, and full-year free cash flow at no less than $1.3 billion, growth of 20%.
The softer spots deserve attention. Total customers at period end were 20,866 thousand, and domains under management were 82,056 thousand versus 84,211 thousand. GoDaddy also revised previously reported domains under management for March 31, 2024 and December 31, 2023 downward after a calculation error tied to brand migration, though the company says the revision had no impact on financial results. Core hosting revenue fell 11.4% in the quarter on end-of-life migrations and the disposition of certain hosting assets. Management also flagged the need to remediate a material weakness in internal control over financial reporting, alongside the usual macro, competition and interest rate risks. On the product side, the GoDaddy Airo experience is now bundled with new and existing domain purchases in English-speaking markets, with expansion planned into more than 90 additional countries later this year.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.12B | $1.11B | +1.4% | $1.05B | +7.3% |
| General & administrative | $95.6M | $91.7M | +4.3% | $92.7M | +3.1% |
| Total operating expenses | $916.3M | $932.6M | -1.7% | $928.5M | -1.3% |
| Operating income (loss) | $208.2M | $175.9M | +18.4% | $119.6M | +74.1% |
| Operating margin | 18.5% | 15.9% | +2.6 pp | 11.4% | +7.1 pp |
| Net income (loss) | $146.3M | $401.5M | -63.6% | $83.1M | +76.1% |
| Net margin | 13.0% | 36.2% | -23.2 pp | 7.9% | +5.1 pp |
| Customers | 3 | 2 | +50.0% | 2 | +50.0% |
Risks
GoDaddy disclosed a material weakness in the design of controls related to accounting for income taxes and related disclosures as of December 31, 2023, and management concluded internal control over financial reporting was not effective. Remediation may not succeed, which could impair timely and accurate financial reporting and pressure the stock price.
The filing states GoDaddy is frequently targeted and has experienced cyber attacks, including a multi-year campaign by a sophisticated threat actor group, social engineering attempts that targeted customer domains, and an ongoing FTC investigation from Civil Investigative Demands received in July 2020 and October 2021. Future incidents could cause regulatory action, litigation, and substantial remediation costs.
The company is increasingly using AI, including GoDaddy Airo, and faces evolving AI laws such as the E.U. AI Act and Colorado Consumer Protections for Artificial Intelligence Act. Risks include intellectual property infringement, privacy, bias, accuracy, and additional compliance costs.
GoDaddy faces significant competition in A&C and Core from Shopify, Block, Wix, Squarespace, Google, Amazon, Cloudflare, and others, and expects competition to intensify. Some competitors offer domains or security certificates at low or no cost, which could pressure pricing, market share, and margins.
The filing notes slower growth rates in recent periods and dependence on attracting and retaining customers and maintaining strong renewals. MD&A reports total customers at period end of 20,866 thousand versus 20,985 thousand a year earlier, and domains under management of 82,056 thousand versus 84,211 thousand.
A substantial portion of cloud infrastructure is provisioned through AWS, and AWS may terminate or suspend services for cause. Any disruption or capacity constraint at AWS could interrupt customer access, harm reputation, and require costly alternative arrangements.
The risk factor states evolving technologies and changes in customer behavior, including reliance on social media and search engines, may reduce the value and demand for domain names and websites. MD&A reports domains under management of 82,056 thousand at June 30, 2024 versus 84,211 thousand a year earlier.
GoDaddy has implemented multiple reductions in force, including approximately 100 employees during the three months ended June 30, 2024, and expects substantially all remaining restructuring payments by the end of Q4 2024. The restructuring may not reduce costs as planned, may cause attrition and operational disruptions, and may strain management.
GoDaddy Payments is subject to money transmission, payment card network rules, and third-party processor agreements. The filing notes potential fines, holdbacks or suspension of processing services, and losses from fraudulent or illegal transactions, especially as larger sellers use the platform.
Bookings outside the U.S. represented approximately 33% of total bookings for 2023, 2022, and 2021, and the company has operations in higher-risk regions such as India and contractors in Ukraine. Russia sanctions, Middle East conflicts, and trade tensions could disrupt international operations and product launches.
GoDaddy has significant long-term debt and covenants restricting indebtedness, liens, mergers, asset sales, and restricted payments. In May 2024 it amended the Credit Facility to refinance 2027 Term Loans and repay part of 2029 Term Loans, which could limit flexibility and increase refinancing risk.
The filing cites higher interest rates, inflation in labor and services, and recession or slowdown risks that could reduce demand for products and cause customers to postpone spending. It notes inflationary pressures in certain areas of the business.
MD&A discloses that prior period DUM reported as of March 31, 2024 and December 31, 2023 were revised due to a calculation error identified during Q2 2024 in connection with brand migration efforts, which overstated DUM. The revisions had no impact on financial results but highlight data accuracy and reporting risk.
Workforce reductions and remote or foreign work may make it difficult to preserve company culture and retain employees, including GoDaddy Guides. Loss of key personnel could harm innovation and customer care.
The filing states GoDaddy has been subject to shareholder activity and demands in the past and may be subject to future activist actions, which could disrupt business, divert management attention, and cause stock price fluctuations.
SaaS KPIs
All quarters →Total bookings
Unlevered free cash flow
Free cash flow
Average revenue per user (ARPU)
Total customers at period end
NEBITDA margin
Summary, forecast, risks and KPIs are extracted from GoDaddy Inc.'s SEC filings for Q2 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.