Q1 2025 GoDaddy Inc Earnings Call Transcript
Key Points
- GoDaddy Inc (GDDY) reported an 8% growth in bookings and expanded normalized EBITDA margin to 31%, with a 26% growth in free cash flow.
- The company achieved a 17% revenue growth in its A&C segment, driven by strong adoption of subscription solutions.
- GoDaddy Inc (GDDY) successfully completed its $4 billion 2022 share repurchase authorization, reducing its fully diluted shares outstanding by over 25%.
- The company launched high-margin offerings such as GoDaddy Capital and same-day payouts, which are gaining traction.
- GoDaddy Inc (GDDY) reaffirmed its full-year 2025 outlook, expecting total revenue growth of 7% and a free cash flow target of at least $1.5 billion.
- The macroeconomic environment, including tariffs, remains a concern, although GoDaddy Inc (GDDY) claims limited direct exposure.
- Customer sentiment shows some pressure, with small businesses expressing concerns about the economic outlook.
- The company is still in the early stages of testing its Airo Plus SKU, with no significant metrics to report yet.
- GoDaddy Inc (GDDY) experienced a dip in gross margins, attributed to product mix variations.
- The digital marketing suite remains small, with no significant updates on its performance or contribution to revenue.
Welcome to GoDaddy's first-quarter 2025 earnings call. Thank you for joining us. I'm Christie Masoner, VP of Investor Relations. And with me today are Aman Bhutani, Chief Executive Officer; and Mark McCaffrey, Chief Financial Officer. (Event Instructions)
On today's call, we'll be referencing both GAAP and non-GAAP financial measures and other operating and business metrics. A discussion of why we use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalents may be found in the presentation posted on our Investor Relations site at investors.godaddy.net or in today's earnings release on our Form 8-K furnished with the SEC. Growth rates represent year-over-year comparisons unless otherwise noted.
The matters we'll be discussing today include forward-looking statements, such as those related to future financial results and our strategies or objectives with respect to future operations. These forward-looking statements are subject to risks and uncertainties that are
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