10-K: GoDaddy Inc. Reports 2024 Results: Revenue Climbs 7.5% to $4.57 Billion

• GoDaddy Inc. reported a 7.5% increase in total revenue, reaching $4.57 billion in 2024.
• Total bookings increased by 9.5% to $5.039 billion.
• The Applications and Commerce (A&C) segment saw a revenue increase of 15.6%, while the Core Platform segment grew by 3.4%.
• Operating income increased by 63.2% to $893.5 million.
• Net income decreased by 31.9% to $936.9 million, impacted by a significant tax benefit in the previous year.
• Normalized EBITDA increased by 23.0% to $1.395 billion.
• The company's customer retention rate was approximately 84%, with a higher retention rate of 87% for customers within the GoDaddy platform.
• Approximately 89% of total revenue was generated by customers who were also customers in the prior year.

Score: 7

Explanation: The document presents a mixed sentiment. While revenue and bookings show positive growth, the decline in net income and slight decrease in customer retention temper the overall outlook. The company's strategic initiatives and investments in AI suggest a forward-looking approach, but competitive pressures and potential risks warrant caution.

• Significant revenue growth in the Applications and Commerce (A&C) segment, indicating successful expansion into new product areas.
• Strong growth in total bookings, suggesting continued customer demand and effective marketing efforts.
• Increased operating income and Normalized EBITDA, reflecting improved operational efficiency and profitability.
• High customer retention rates, demonstrating customer loyalty and the effectiveness of GoDaddy's services.
• Successful cost optimization initiatives, including reductions in headcount and infrastructure costs.

• Decline in net income due to the absence of a significant tax benefit that boosted the previous year's results.
• Slight reduction in the overall customer retention rate, potentially indicating increased competition or customer churn.
• Decrease in hosting revenues within the Core Platform segment, attributed to end-of-life and migration activities.

• Intense competition in the market for cloud-based solutions, requiring continuous innovation and competitive pricing.
• Potential for system failures and capacity constraints, impacting website performance and customer satisfaction.
• Threat of cybersecurity incidents, which could disrupt business operations and compromise sensitive data.
• Dependence on third-party service providers, such as AWS, for cloud infrastructure, creating vulnerability to service interruptions.
• Exposure to risks associated with the use of AI, including reputational harm and liability.
• Exposure to risks associated with credit card and other payment chargebacks, fraud and new payment methods.
• Potential for fluctuations in quarterly and annual operating results due to various factors, making future results difficult to predict.
• Risk of non-compliance with local and international laws, rules, regulations and orders relating to the operation and security of our computer network and the processing of data, including personal data.

The company expects to continue investing in its brand, product development, and customer care to drive future growth and profitability.

GoDaddy operates in a highly competitive market for cloud-based solutions, facing competition from both niche point-solution providers and larger, more diversified companies. The company's focus on serving entrepreneurs and small businesses positions it within a specific segment of this broader market.

• GoDaddy competes with companies like Wix, Squarespace, and Shopify in the website building and e-commerce space.
• In the domain registration market, key competitors include Newfold Digital, Namecheap, and Tucows.
• GoDaddy's customer retention rate of approximately 84% is a key metric for assessing its performance against industry benchmarks.
• The company's investments in AI and personalized guidance are aimed at differentiating its offerings from competitors.

• Shareholders may experience fluctuations in stock price due to market volatility and company performance.
• Employees may be affected by restructuring activities and changes in compensation plans.
• Customers can expect continued improvements in product offerings and customer care.
• Suppliers and partners may see changes in business relationships and contract terms.

• Continue to improve information technology and financial infrastructure, operating and administrative systems and our ability to effectively manage headcount, capital and processes.
• Continue to expand the ways we serve our customers to adjust to their changing needs from primarily domain name registration and hosting to a broader spectrum of offerings.
• Continue to invest in search, discovery and recommendation tools and transfer protocols for both primary and secondary domains.
• Continue to invest in our brand as we seek to further grow our total customers.
• Continue to invest in our technology and data platforms to harness the power of generative AI to further enable our personalization efforts and make our products even more intuitive for our customers.

• The company is involved in a shareholder derivative complaint related to the approval of certain settlement and release agreements with respect to certain Tax Receivable Agreements (TRAs).
• The company is responding to requests for information regarding its data privacy and security practices, including from the FTC pursuant to Civil Investigative Demands issued in July 2020 and October 2021.

• 2012: ICANN initiated the 'new gTLD program' (the Expansion Program).
• 2013: Hundreds of new gTLDs were launched through ICANN's Expansion Program.
• 2014: New gTLDs were delegated as a result of the Expansion Program.
• May 28, 2014: GoDaddy Inc. was incorporated in Delaware.
• April 2015: GoDaddy Inc. initial public offering at a price of $20.00 per share.
• 2018: GoDaddy's Venture Forward research initiative was established.
• June 4, 2019: Date of Indenture among Go Daddy Operating Company, LLC, GD Finance Co, Inc., the guarantors party thereto and Wells Fargo Bank, National Association, as trustee.
• June 7, 2022: IBEW Local Union 481 Defined Contribution Plan and Trust filed a shareholder derivative complaint in the Delaware Court of Chancery.
• July 2022: GoDaddy completed the acquisition of Dan.com.
• December 11, 2023: GoDaddy completed the DNC Restructure.
• January 1, 2024: Desert Newco was converted from a partnership to a disregarded entity for U.S. income tax purposes.
• June 6, 2024: GoDaddy's stockholders approved the adoption of the GoDaddy Inc. 2024 Omnibus Incentive Plan and the GoDaddy Inc. 2024 Employee Stock Purchase Plan.
• December 31, 2024: End of the fiscal year for which the report is filed.
• February 14, 2025: Date as of which there were 141,355,906 shares of GoDaddy Inc.'s Class A common stock outstanding.
• February 17, 2025: GoDaddy entered into an ASR transaction to repurchase shares of its Class A common stock.