- According to the report published by GoDaddy, the company’s revenue increased by 9% year-over-year and net income increased by 93% year-over-year.
- The company repurchased 12.8 million shares of its common stock for an aggregate purchase price of $1 billion.
- During the quarter, the company launched the Payable Domains pilot program, which is expected to be launched in the third quarter.
The world’s biggest web hosting company and registrar, GoDaddy reported financial results for the second quarter ended June 30. During the period, the company managed to increase its revenue. The company also spent approximately $1 billion to repurchase 12.8 million shares of its common stock. The average price per share was $78.22. It represents an approximately 8% reduction in fully diluted shares outstanding.
Results and outlook
In the second quarter, GoDaddy’s revenue increased by 9% year-over-year while its net income increased by 93% year-over-year. Annualized recurring revenue for applications and commerce grew 12% year-over-year to $1.2 billion. ARR for the core platform grew 5% year-over-year to $2.3 billion. Also, the company achieved a gross merchandise volume of $28 billion, increased by 12% year-over-year.
During the quarter, the adoption of GoDaddy Payments for eCommerce solutions was increased to 80% of Websites + Marketing commerce customers and 30% of Managed WordPress customers in the WooCommerce tier selecting GoDaddy Payments. The company also launched the pilot program for Payable Domains, which is expected to be generally available in the third quarter, to simplify the online payments process by providing a professional branded checkout and allowing them to accept payments. In the quarter, GoDaddy also launched a beta WooSaas online store, offering a solution targeted to larger merchants.
In the next quarter, the company targets a total revenue between $1.030 billion to $1.045 billion, which represents year-over-year growth of 8%. The company is also expecting applications and commerce revenue growth from 13% to 15% and between 4% to 6% growth in core platform revenue. For the whole year, GoDaddy is targeting unlevered free cash flow of approximately $1.1 billion which represents a growth of 15% year-over-year. Aman Bhutani, CEO of GoDaddy said,
« GoDaddy’s strong second quarter results reflect our focus on achieving the strategic initiatives and financial targets we laid out at our Investor Day earlier this year. We continue to adapt to the challenging macroeconomic environment, including using success-based marketing spend to drive demand where we see opportunity and investing in technology and development to drive future growth. »