GoDaddy Q3 2021 report: revenue up 14% year over year

GoDaddy Inc. (NYSE: GDDY) reported financial results for the third quarter ended September 30, 2021.

“GoDaddy stepped out on the commerce stage in a big way with the hardware and payments offerings we launched in Q3,” said GoDaddy CEO Aman Bhutani, “New solutions like these, combined with a consistent, cash-generative business, give us confidence in our ability to pursue new opportunities and drive profitable growth at scale.”

“We are pleased with the Q3 results and excited about the many opportunities for growth ahead,” said GoDaddy CFO Mark McCaffrey. “We are focused on executing in Q4 and beyond, and we are looking forward to sharing more about GoDaddy’s bright future at our Investor Day in February.”

Business Highlights

• GoDaddy launched its OmniCommerce solution for Websites + Marketing with innovative point-of-sale devices, integrated payments and other solutions that power online and offline commerce.
• GoDaddy’s point-of-sale devices and payment processing are aggressively priced to make leading products and services accessible to as many merchants as possible.
• OPEN 2021, GoDaddy’s free, virtual event for small business owners to learn, connect and grow their businesses, had tens of thousands of people tuned into its keynote OmniCommerce announcement. Everyday Entrepreneurs shared positive feedback from the virtual event, helping GoDaddy deliver on its commitment to be an advocate for small businesses and help them drive their own success.
• Global tennis superstar Naomi Osaka launched her global campaign with GoDaddy as the official ecommerce partner for KINLÒ, her new skincare line specifically formulated to protect melanin-rich skin.
• GoDaddy’s Websites + Marketing Annualized Recurring Revenue (ARR) grew more than 20% year over year in Q3.
• GoDaddy’s Commerce ARR grew more than 30% year over year in Q3.
• ARR from our “Create and Grow” group of products, which includes Websites + Marketing, Managed WordPress, Sellbrite, and GoDaddy Studios, surpassed $400 million in Q3.
• Annualized Gross Merchandise Volume (GMV) across the GoDaddy ecosystem was approximately $25 billion, growing nearly 30%, year over year.
• GoDaddy launched Invoicing and Payments, a new feature in the Hub by GoDaddy Pro enabling easier and faster invoice processing solutions for web designers and developers through a simple, integrated user interface.
• GoDaddy hosted Expand 2021 India, its first ever conference for web designers and developers in India, bringing the community together to share ideas and experiences, make connections, and support each other.
• During Q3, GoDaddy executed an accelerated share repurchase agreement (ASR), repurchasing 3.4 million shares for an average price of $72.99 per share and an aggregate purchase price of $250 million. Upon completion of this ASR, GoDaddy has approximately $750 million remaining available for repurchases under current authorizations.

Balance Sheet

At September 30, 2021, total cash and cash equivalents were $1,143 million, total debt was $3,929 million and net debt was $2,786 million.

Business Outlook

For the fourth quarter ending December 31, 2021, GoDaddy expects revenue of approximately $970 million, or 11% year over year growth.

GoDaddy raised its full year revenue guide to approximately $3.765 billion, representing 14% year over year growth.

GoDaddy raised its full year unlevered free cash flow guide to approximately $960 million, representing 16% year over year growth.

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (GAAP). We do not provide reconciliations from non-GAAP guidance to GAAP because projections of changes in individual balance sheet amounts are not possible without unreasonable effort and presentation of such reconciliations would imply an inappropriate degree of precision. Our reported results provide reconciliations of non-GAAP financial measures to their nearest GAAP equivalents.