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GoDaddy GDDY shares fell 4.96% in the pre-market trading as it reported fourth-quarter 2024 earnings of $1.42 per share on Feb. 13, lagging the Zacks Consensus Estimate by 2.74%. The company had registered earnings of $1.08 in the year-ago quarter, increasing 31.5% on a year-over-year basis.
Despite the earnings miss, GoDaddy demonstrated strong operational execution and financial performance throughout 2024, making significant progress across key strategic initiatives.
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GDDY generated revenues of $1.2 billion, surpassing the Zacks Consensus Estimate by 1.38%. Revenues increased 8.4% year over year on a reported and 8.5% on a constant-currency (cc) basis.
GoDaddy Inc. Price, Consensus and EPS Surprise
GoDaddy Inc. price-consensus-eps-surprise-chart | GoDaddy Inc. Quote
In the fourth quarter, GoDaddy benefited from sustained customer demand, driven by the expansion of its digital services and subscription offerings. Continued innovation at GoDaddy Airo, as well as strategic initiatives, including optimized pricing and bundling strategies, contributed to its strong performance and profitability. Operational efficiency has further supported the company's growth trajectory.
GDDY’s Quarterly Performance
Applications and Commerce (A&C), comprising websites, productivity applications, and payments and commerce, generated $441.2 million (contributing 37% to total revenues), up 16.9% on a year-over-year basis.
The Core Platform, consisting of domains, aftermarket, hosting and security, increased 3.9% year over year to $751.4 million (contributing 63% to total revenues).
International revenues in the fourth quarter reached $380.4 million, up 7.5% year over year on a reported and 7.8% on a constant-currency basis.
Total bookings of $1.2 billion increased 8.8% year over year and 8.9% on a cc basis.
Average revenues per user (ARPU) were $220, up 8.4% year over year.
Total annualized recurring revenues (ARR) were $4.04 billion, up 8.4% year over year.
Total customers at the end of the fourth quarter were 20,511, down 2.4% year over year.
GDDY’s Operating Results
On a non-GAAP basis, normalized EBITDA in the fourth quarter was $384.7 million, up 32.3% year over year. The normalized EBITDA margin expanded 280 basis points (bps) year over year.
Operating expenses (technology and development, marketing and advertising, customer care, and general and administrative) of $473.3 million increased 3.3% year over year. As a percentage of revenues, operating expenses contracted 200 bps year over year to 39.7%.
Operating income was $255.6 million, up 34.6% year over year. The operating margin expanded 420 bps year over year to 21.4%.