GoDaddy(GDDY) - 2023 Q2 - Quarterly Report

Financial Performance - GoDaddy reported a significant increase in revenue, reaching $1.1 billion for the quarter ended June 30, 2023, representing a year-over-year growth of 10%[2]. - Total revenue for Q2 2023 was$ 1,048.1 million, a 3.0% increase from $1,015.5 million in Q2 2022[12]. - Net income attributable to GoDaddy Inc. for Q2 2023 was$ 82.9 million, compared to $90.4 million in Q2 2022, reflecting a decrease of 8.3%[12]. - Operating income for Q2 2023 was$ 119.6 million, a slight decrease from $124.6 million in Q2 2022, representing a decline of 4.0%[12]. - Comprehensive income attributable to GoDaddy Inc. for Q2 2023 was$ 104.7 million, compared to $114.5 million in Q2 2022, a decrease of 8.0%[14]. - Net income for the quarter ended June 30, 2023, was$ 82.9 million, an increase from the previous quarter's $47.3 million[18]. - Total revenue for the three months ended June 30, 2023, was$ 1,048.1 million, compared to $1,015.5 million in the same period last year[121]. - Net income decreased by 8.2% to$ 83.1 million[121]. Customer Metrics - The company added approximately 200,000 new customers during the quarter, bringing the total customer count to 20 million, which is a 5% increase compared to the previous year[2]. - GoDaddy's customer retention rate remains high at 80%, demonstrating strong customer loyalty and satisfaction[2]. - Total customers at period end reached 20,985 thousand, an increase from 20,876 thousand[122]. - Average revenue per user (ARPU) increased to $199 from$ 193 year-over-year[122]. Revenue Segmentation - Revenue from Applications and Commerce (A&C) segment was $351.7 million for the three months ended June 30, 2023, compared to$ 317.2 million for the same period in 2022, reflecting an increase of 10.9%[33]. - The Core Platform segment generated $492.7 million in revenue for the three months ended June 30, 2023, up from$ 485.0 million in the prior year, representing a growth of 1.4%[33]. - Core segment revenue for Q2 2023 was $696.4 million, slightly down from$ 698.3 million in Q2 2022, a decrease of 0.3%[110]. - A&C segment revenue grew by 11% for the three months ended June 30, 2023, reaching $351.7 million, driven by a 10.5% increase in productivity applications revenue[153]. Expenses and Costs - Technology and development expenses for Q2 2023 were$ 219.2 million, up from $198.1 million in Q2 2022, an increase of 10.6%[12]. - Cost of revenue (excluding depreciation and amortization) increased by 7.7% to$ 388.4 million for the three months ended June 30, 2023, primarily due to higher software licensing fees and increased domain costs[137]. - Marketing and advertising expenses decreased by 11.1% to $89.5 million for the three months ended June 30, 2023, primarily due to lower discretionary spending[141]. - General and administrative expenses decreased by 2.1% to$ 92.7 million for the three months ended June 30, 2023, mainly due to decreased acquisition-related expenses[144]. - Depreciation and amortization expenses decreased by 10.1% to $43.5 million for the three months ended June 30, 2023, primarily due to certain acquired intangibles reaching the end of their useful lives[149]. Cash Flow and Assets - Cash and cash equivalents decreased to$ 582.6 million as of June 30, 2023, down from $774.0 million at the end of 2022, a decline of 24.7%[9]. - Total current assets decreased to$ 1,411.8 million as of June 30, 2023, down from $1,582.6 million at the end of 2022, a decline of 10.8%[9]. - Operating cash flow for the quarter was$ 468.3 million, a decrease from $501.8 million in the same quarter of the previous year, indicating a decline of approximately 6.6%[22]. - Net cash provided by operating activities decreased by 21.1% to$ 198.0 million[119]. Debt and Liabilities - Total liabilities increased to $6,793.9 million as of June 30, 2023, compared to$ 6,973.5 million at the end of 2022, a decrease of 2.6%[9]. - Long-term debt as of June 30, 2023, amounted to $3,888.7 million, slightly down from$ 3,901.3 million at the end of 2022[60]. - The company has a substantial level of indebtedness and must manage its ability to repay debt effectively[4]. Strategic Initiatives - GoDaddy is focusing on expanding its product offerings, with plans to launch three new solutions in the next quarter aimed at enhancing customer experience[2]. - The company has initiated a strategic partnership with a leading e-commerce platform to enhance its market presence and customer acquisition efforts[2]. - The restructuring plan announced in February 2023 aims to reduce future operating expenses and improve cash flows, involving a reduction in force and asset sales[38]. - The company is actively exploring potential acquisition opportunities to bolster its service offerings and market share[2]. Future Outlook - The company anticipates revenue growth of 8-10% for the upcoming quarter, projecting total revenue between $1.12 billion and$ 1.14 billion[2]. - Future expectations regarding revenue, cost of revenue, and operating expenses are subject to changes in technology and market conditions[4]. - The company plans to continue its efforts in international growth and managing foreign currency exchange rate fluctuations[4].