10-Q: GoDaddy Inc. Reports Q1 2025 Results, Boosted by Applications and Commerce Growth

• GoDaddy Inc. reported its Q1 2025 financial results, showing a 7.7% increase in total revenue to $1,194.3 million compared to $1,108.5 million in Q1 2024.
• The Applications and Commerce (A&C) segment led the growth with a 16.5% increase in revenue, reaching $446.4 million.
• The Core Platform segment also contributed with a 3.1% revenue increase, totaling $747.9 million.
• Operating income increased by 40.6% to $247.3 million.
• Net income decreased by 45.3% to $219.5 million, impacted by a one-time tax benefit in the prior year.
• Normalized EBITDA increased by 16.4% to $364.4 million.
• The company repurchased shares of its Class A common stock for $767.4 million during the quarter.
• International revenue grew by 10.2% to $388.8 million.
• Total bookings increased by 7.9% to $1,417.0 million.

Score: 7

Explanation: The report shows positive revenue growth and increased operating income, but the decrease in net income and the competitive landscape temper the overall sentiment.

• The Applications and Commerce segment showed strong growth, indicating successful adoption of subscription-based products.
• The increase in operating income suggests improved operational efficiency.
• The increase in Normalized EBITDA indicates improved profitability.
• Share repurchases can boost investor confidence and potentially increase share value.
• International revenue growth demonstrates successful expansion into global markets.
• The company's total bookings increased by 7.9%.

• Net income decreased by 45.3%, primarily due to a non-recurring tax benefit in the prior year.
• The company's cash and cash equivalents decreased from $1,089.0 million to $719.4 million.

• The company's future performance depends on its ability to continue increasing sales to new and existing customers.
• The company faces significant competition in the market for its products and services.
• The company's level of indebtedness could adversely affect its financial condition.
• The company is subject to laws, regulations, policies, or claims concerning the domain name registration system and the Internet in general.
• The company is subject to local and international laws, rules, regulations, and orders relating to the operation and security of its computer network and the processing of data, including personal data.
• The company's business depends on its customers' continued and unimpeded access to the Internet and the development and maintenance of Internet infrastructure.

The company believes its existing cash and cash equivalents and cash generated by operating activities will be sufficient to meet its anticipated operating cash needs for at least the next 12 months.

• The CODM uses consolidated expense information to manage operations and is not regularly provided disaggregated other segment items.
• The CODM uses consolidated expense information to manage operations and is not regularly provided disaggregated other segment items.

GoDaddy operates in a competitive market with various players offering domain registration, web hosting, website building, and e-commerce solutions. The company faces competition from both niche point-solution providers and broader solution providers. The increasing adoption of AI technologies is also shaping the competitive landscape.

• It is difficult to compare GoDaddy's results directly to specific industry standards without detailed competitor data.
• However, companies like Wix and Squarespace are key competitors in the website building and e-commerce space.
• Verisign is a key player in the domain name registry market.
• Comparing GoDaddy's growth rate and profitability metrics to these companies would provide a more comprehensive assessment of its performance relative to industry benchmarks.

• Shareholders may be impacted by the share repurchase program and the company's overall financial performance.
• Customers should benefit from the company's continued investment in new products and services.
• Employees may be impacted by the company's restructuring activities and efforts to manage headcount.

• The company will continue to improve its information technology and financial infrastructure, operating and administrative systems and its ability to effectively manage headcount, capital and processes.
• The company will continue to monitor pending legislation and implementation by individual countries and evaluate the potential impact on our business in future periods.

• 2017-04-03: Original date of five-year cross-currency swaps to manage variability in foreign currency rates related to a Euro-denominated intercompany loan.
• 2017-04-01: GoDaddy entered into a five-year pay-fixed rate, receive-floating rate interest rate swap arrangement to effectively convert a portion of the variable-rate borrowings under the previously issued term loans maturing in 2024, which were refinanced with the 2029 Term Loans, to a fixed rate of 5.44%.
• 2020-08-31: GoDaddy entered into seven-year pay-fixed rate, receive-floating rate interest rate swaps to effectively convert the variable one-month LIBOR interest rate on the 2027 Term Loans borrowings to a fixed rate of 0.705%.
• 2022-03-31: GoDaddy entered into a transaction to extend the maturity of cross-currency swaps to August 31, 2027.
• 2023-05-31: GoDaddy terminated interest rate swaps and entered into new SOFR-based interest rate swaps, with a fixed rate of 0.672%.
• 2024-01-01: Desert Newco was converted from a partnership to a disregarded entity.
• 2025-03-10: Aman Bhutani, Chief Executive Officer, adopted a 10b5-1 trading plan.
• 2025-03-10: Jared Sine, Chief Strategy and Legal Officer, adopted a 10b5-1 trading plan.
• 2025-03-31: End of the quarterly period.
• 2025-04-03: The ASRs were settled in full with the delivery of 4,359 shares of Class A common stock at a weighted average price of $176.02 per share.
• 2025-04-25: Date as of which there were 142,488,191 shares outstanding of GoDaddy Inc.'s Class A common stock.
• 2025-05-01: Date of the report.
• 2026-Q2: ICANN is expected to open a new gTLD program, Next Round, upon completion of the policy implementation work.
• 2027-12-01: Maturity date of 2027 Senior Notes.
• 2029-03-01: Maturity date of 2029 Senior Notes.
• 2029-11-10: Maturity date of 2029 Term Loans.
• 2031-05-31: Maturity date of 2031 Term Loans.