GoDaddy Inc. Q4 FY2024 earnings call

• 2024 was a year of strong execution with over 9% bookings growth, 8% revenue growth, nearly 400 basis points normalized EBITDA margin expansion to 31%, and $1.4 billion in free cash flow. • Pricing and bundling delivered impactful results in 2024, with focus on presence products and customer cohorts in 2025, and plans for further evolution. • Seamless experience initiative exceeded expectations in 2024, with redesigned managed WordPress platform and testing of Aero Site Designer for WordPress, continuing in 2025 to reduce friction and enhance experience. • Commerce initiative performed well with annualized gross payment volume growing fast, transactional payments business up 55% to $2.6 billion, and launch of GoDaddy Capital. • Cost optimization drove impact through platform simplification and talent recruitment, planning to maintain disciplined approach in 2025 with technology and AI. • GoDaddy Aero gained traction, with 50% of paid subscriptions originating from Aero experience, entering monetization phase with Aero and Aero Plus, and Super Bowl ad boosting awareness.

For the Applications and Commerce segment, revenue grew 17% to $441 million with a segment EBITDA margin of 47%. This segment contributed approximately 40% of the overall revenue. The Core Platform segment had revenue growth of 4% to $751 million, with a segment EBITDA margin expanding to 34%.

• Q1 2025 target total revenue $1.175 to $1.195 billion, midpoint 7% growth, ANC revenue mid-teens growth, core platform low single digits growth, normalized EBITDA margin ~30%. • Full-year 2025 total revenue range $4.86 to $4.94 billion, midpoint 7% growth, US revenue growth outpaces international by ~200 basis points, ANC mid-teens growth, core platform low single digits growth. • 2025 normalized EBITDA margin expansion ~100 basis points, targeting free cash flow at least $1.5 billion (+11% growth).

• Transactional business volatility, as larger transactions in prior years create tough comps. • FX impact, with more prominent headwinds in first half of 2025. • Customer count headwinds from divestitures, deep discounting end, and migrations.

Q: On pricing and bundling focus on presence products and customer cohorts, and next evolution in 2026 A: Pricing and bundling delivered ahead of expectations in 2024, focusing on presence products and customer cohorts in hosting business in 2025, with continued experimentation on bundles and customer surplus.

Q: On returning to customer growth in 2025 and top of funnel A: Focus on high-quality customers with intent, seeing solid traffic at top of funnel, entering monetization phase with Aero but impact modest in 2025, with Aero as new starting point for customers Q: On Aero monetization phase and GPV growth A: Aero entered monetization phase earlier than planned, GPV growing fast, with still plenty of runway for growth as new customers use payments Q: On Aero early cohorts renewal rate and expansion A: Early Aero cohorts show better renewal rates due to multiple product interactions, with opportunity to expand offerings and expose to more capabilities Q: On margin guidance and capital allocation A: Margin improvement driven by A and C growth tailwind, capital allocation approach unchanged, evaluating buybacks and returns-based framework Q: On aftermarket and AI infrastructure efficiencies A: Aftermarket had tough comps, AI infrastructure efficiencies quickly evolving, focus on creating value for customers through AI