GoDaddy Inc., the world's largest technology provider dedicated to small businesses, today reported financial results for the second quarter ended June 30, 2015.
"Our investments in products, technology platform, and customer care are delivering innovative and increasingly personalized products and services for our customers around the world, and our second quarter results again show that focusing on their needs drives real shareholder returns. Balanced growth in customers and ARPU drove revenue up over 16% and EBITDA up more than 29%," said Blake Irving, GoDaddy chief executive officer.
Second Quarter Financial Highlights
- Revenue of $394.5 million, up 16.5% year over year.
- Total Bookings of $475.9 million, up 16.0% year over year.
- Adjusted EBITDA of $82.3 million, up 29.0% year over year.
- Unlevered free cash flow of $77.0 million, an increase of 21.1% year over year.
- Customers were 13.3 million at quarter end, up 9.1% year over year.
- Annual ARPU of $118, up 8.6% year over year.
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||
|
in millions, except ARPU |
2015 |
2014 |
Change |
2015 |
2014 |
Change |
|||||||||||||||
|
GAAP Results |
|||||||||||||||||||||
|
Revenue |
$ |
394.5 |
$ |
338.5 |
16.5 |
% |
$ |
770.8 |
$ |
658.7 |
17.0 |
% |
|||||||||
|
Net loss (1) |
$ |
(71.3) |
$ |
(37.6) |
NM |
$ |
(114.7) |
$ |
(88.9) |
NM |
|||||||||||
|
Net cash provided by operating activities |
$ |
119.4 |
$ |
104.6 |
14.1 |
% |
|||||||||||||||
|
Non-GAAP Results |
|||||||||||||||||||||
|
Total Bookings |
$ |
475.9 |
$ |
410.3 |
16.0 |
% |
$ |
974.6 |
$ |
848.8 |
14.8 |
% |
|||||||||
|
Adjusted EBITDA |
$ |
82.3 |
$ |
63.8 |
29.0 |
% |
$ |
176.2 |
$ |
143.5 |
22.8 |
% |
|||||||||
|
Unlevered Free Cash Flow |
$ |
77.0 |
$ |
63.5 |
21.1 |
% |
$ |
162.1 |
$ |
113.4 |
42.9 |
% |
|||||||||
|
Customers (at quarter end) |
13.3 |
12.2 |
9.1 |
% |
13.3 |
12.2 |
9.1 |
% |
|||||||||||||
|
ARPU (Average revenue per user) |
$ |
118 |
$ |
108 |
8.6 |
% |
$ |
118 |
$ |
108 |
8.6 |
% |
|||||||||
|
(1) |
Net loss for the three and six months ended June 30, 2015 includes $51.1 million of costs consisting of $29.7 million in termination payments made in connection with the completion of the IPO and the $21.4 million loss on debt extinguishment associated with the prepayment of the $300 million senior note. |
Second Quarter Operating Highlights
- Domains revenue of $208.5 million, up 10.3% year over year.
- Hosting and Presence revenue of $145.5 million, up 18.5% year over year.
- Business Applications revenue of $40.5 million, up 51.4% year over year.
- International revenue of $100.2 million, up 19.6% year over year.
- GoDaddy now offers more than 375 top level domain extensions (including gTLDs and ccTLDs) and has more than 60 million domains under management.
- GoDaddy Pro continues to grow, with tens of thousands of web professionals now signed up, nearly half of which are in international markets.
- GoDaddy Email Marketing (GEM) is now available globally in multiple languages, and is being offered through GoDaddy's Website Builder and via web professionals through GoDaddy Pro. GoDaddy also began offering Microsoft Office 365 bundled with GoDaddy Website Builder.
Balance Sheet
At June 30, 2015, total cash and cash equivalents and short-term investments were $294.8 million, total long-term debt, including current portion, was $1,049.1 million, gross debt was $1,089.0 million and net debt was $794.2 million.
Business Outlook
For the third quarter ending September 30, 2015, the Company expects revenues in the range of $405 – $410 million and adjusted EBITDA in the range of $82 – $85 million.
For the full year ending December 31, 2015, the Company expects revenues in the range of $1,595 – $1,605 million and adjusted EBITDA in the range of $328 – $333 million.
