GoDaddy Inc. ((GDDY)) has held its Q1 earnings call. Read on for the main highlights of the call.
GoDaddy’s recent earnings call for Q1 2025 showcased a robust financial performance, underscored by significant growth in bookings, revenue, and free cash flow. The company has successfully expanded its pricing and bundling initiatives, resulting in positive customer engagement with its Airo platform, despite a stable customer count and ongoing macroeconomic uncertainties. The completion of a substantial share repurchase program further highlights GoDaddy’s confidence in its business model.
Strong Bookings and EBITDA Margin Growth
GoDaddy reported an impressive 8% growth in bookings and expanded its normalized EBITDA margin to 31%. The company also achieved a 26% year-over-year increase in free cash flow, underscoring its financial strength and operational efficiency.
A&C Segment Revenue Surge
The A&C segment experienced a remarkable 17% increase in revenue and a 14% growth in bookings. This surge was driven by the strong adoption of subscription solutions, with the EBITDA margin expanding by nearly 200 basis points to 44%.
Successful Pricing and Bundling Initiatives
GoDaddy’s strategic pricing and bundling initiatives exceeded expectations in Q1, leading to an increase in average order size and improved customer retention, contributing significantly to the company’s financial performance.
Airo’s Growing Impact
Airo is playing a pivotal role in enhancing customer engagement, conversion, and product attach rates, thereby contributing positively to GoDaddy’s financial results. The Airo Plus offering is also gaining traction among customers.
International and Aftermarket Growth
International revenue grew by 10%, bolstered by strong aftermarket sales that surpassed prior expectations, indicating GoDaddy’s successful expansion in global markets.
Share Repurchase Program Completion
GoDaddy completed a $4 billion share repurchase program, reducing its outstanding shares by over 25% since inception. The company also announced a new $3 billion repurchase authorization, reflecting its commitment to returning value to shareholders.
Stable Customer Count
The customer count remained stable at 20.5 million, as the company continues to lap the impact of past divestitures. While a return to customer growth is anticipated, it has not yet been realized.
Macro-Economic Uncertainty
Despite its strong performance, GoDaddy acknowledged the pressures from broader macroeconomic conditions, including tariffs, which are being monitored closely to mitigate potential impacts.
Forward-Looking Guidance
GoDaddy reaffirmed its full-year 2025 guidance, projecting revenue between $4.86 billion and $4.94 billion, with a free cash flow target of at least $1.5 billion. This outlook reflects the company’s confidence in sustaining its growth trajectory.
In summary, GoDaddy’s Q1 2025 earnings call highlighted a strong financial performance, driven by strategic initiatives and robust segment growth. Despite macroeconomic uncertainties, the company remains confident in its business model and future prospects, as evidenced by its substantial share repurchase program and optimistic guidance.