Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$75.19Last close (Nov 2, 2023)
Post-Earnings Price$77.88Open (Nov 3, 2023)
Price Change
$2.69(+3.58%)
- Applications and Commerce bookings are accelerating, driven by new bundling capabilities for domains and productivity accepted well by customers, and GPV is on track to double year-over-year, indicating robust growth in GoDaddy Payments. ,
- Domains bookings growth accelerated to 8%, supported by pricing actions and strong demand across various TLDs, benefiting from GoDaddy's broad offering of over 400 TLDs and international reach. ,
- The core GoDaddy hosting platform is stable with high retention rates and cash flow generation, despite headwinds from divestitures and migrations, showing resilience in the core business.
- Hosting business facing headwinds: GoDaddy's hosting business is experiencing about 150 basis points of headwind due to divestitures and migrations, with expectations of continued headwinds into next year.
- Aftermarket growth slowing down: The aftermarket business, although a $400 million-plus segment, is growing at a lesser rate than before, with fewer large transactions compared to previous periods.
- Activist investor pressure and demand for clearer strategy: An activist investor has become more active and vocal, indicating potential concerns with company strategy or management; investors are seeking more information on plans for margin expansion and faster growth in applications and commerce.