The dramatic increase in **Net Income** for Q4 2023 was driven primarily by a **non-routine, non-cash tax benefit** of approximately **USD 1 billion** due to the release of the majority of the valuation allowance on U.S. and state deferred tax assets. This tax benefit significantly boosted the company’s income despite incurring higher restructuring charges relative to the previous year. In addition, **operational performance** contributed to the spike, with revenue increasing by **6% year-over-year** to **USD 1,100.3 million** and normalized EBITDA growing by **22% year-over-year** to **USD 324.2 million** (representing a margin of **29.5%**). These combined factors led to a dramatic spike in net income in Q4 2023.  **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:1]** **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:11]** 

What drove the dramatic spike in Net Income in Q4 2023?

The unusually high **debt repayment in Q2 2024** was driven by significant **debt refinancing activities**. Specifically, the company issued new term loans totaling **$2,752.3 million**, which were used to refinance existing debt obligations, resulting in a notably high repayment amount for that quarter.  **[0001609711-24-000133_gddy-20240630.htm:8]** 

What led to the unusually high debt repayment in Q2 2024?

The increase in Q3 2024 operating cash flow was primarily driven by **growth in total bookings** thanks to strong adoption across GoDaddy's **Applications and Commerce product suite**. This was especially evident within productivity solutions, where **pricing and bundling initiatives** spurred additional demand. Moreover, the continued strength in **domains**, lower **restructuring-related payments**, and reduced spend in **technology and development** also contributed significantly to the improvement in operating cash flow.  **[0001609711-24-000167_gddy-20240930.htm:41]** 

What factors contributed to the notable increase in operating cash flow in Q3 2024?

Deferred taxes were so large in Q4 2023 because GoDaddy released most of its domestic valuation allowance on deferred tax assets. This significant release—resulting in a non-cash income tax benefit of approximately **$1,014.0 million**—was driven by **improved financial performance**, strong projections for utilizing tax attributes, and management’s judgment that the deferred tax assets were more likely than not to be realized. This favorable outlook included factors such as sustained profitability over recent periods and a lack of expiration risks for its tax attributes.  **[0001609711-24-000022_gddy-20231231.htm:178]** **[0001609711-24-000022_gddy-20231231.htm:123]** **[0001609711-24-000022_gddy-20231231.htm:177]** **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:1]** **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:0]** 

Why are deferred taxes so large in Q4 2023?

9808583c35c68b5a0be79474ffdd52051f3f70aae3a910235f0a10f04838bbbc

The sharp increase in cash and cash equivalents in Q3 2024 was driven by several key factors. **Net cash provided by operating activities** significantly boosted the cash balance, as GoDaddy generated **$947.2 million** during the first nine months of 2024, reflecting strong operational performance.  **[20241030LA44654:1]** **[0001609711-24-000165_gddyex991-20240930xq3earni.htm:1]**  Additionally, a **substantial reduction in capital expenditures**—from **$38.0 million** in the same period in 2023 to **$12.2 million**—resulted in higher free cash flow.  **[20241030LA44654:7]** **[0001609711-24-000165_gddyex991-20240930xq3earni.htm:1]**  This led to a **30.1% year-over-year increase in free cash flow** to **$1,013.5 million**. Moreover, effective management of **financing activities**, including share repurchases and debt refinancing, also contributed to the improved cash position.  **[20241030LA44654:1]** **[0001609711-24-000165_gddyex991-20240930xq3earni.htm:1]** 

Why did cash and cash equivalents increase so sharply in Q3 2024?

The drop in cash and cash equivalents in Q2 2024 was primarily caused by significant financing outflows. Specifically, despite strong operational performance generating **$592.0 million** in cash, GoDaddy used **$646.2 million** in financing activities. This outflow was mainly driven by **share repurchases**—repurchasing **4.1 million shares** for **$520.8 million**—and a substantial **repayment of long-term debt** amounting to **$2.76 billion**. These financing activities outweighed the cash inflows from operating and investing activities, resulting in the overall decrease in cash and cash equivalents.  **[20240801LA75119:1]** **[20240801LA75119:6]** **[0001609711-24-000132_gddyex991-20240630xq2earni.htm:8]** **[0001609711-24-000132_gddyex991-20240630xq2earni.htm:1]** 

What caused the drop in cash and cash equivalents in Q2 2024?

The significant increase in **total assets** in Q3 2024 was driven by several key factors. **Cash and cash equivalents** rose considerably by **$308.3 million** (increasing from **$458.8 million** to **$767.1 million**), largely due to strong operating cash flow. **Deferred tax assets** also grew by **$198.6 million**, a change partially attributable to a **non-routine, non-cash tax benefit of $267.4 million** linked with a subsidiary conversion for U.S. income tax purposes. Additionally, **prepaid domain name registry fees** increased by **$41.0 million**, reflecting higher upfront payments for domain registrations. These contributions more than offset the declines observed in intangible assets and property and equipment, collectively underpinning the overall asset growth in Q3 2024.  **[20241030LA44654:1]** **[0001609711-24-000167_gddy-20240930.htm:4]** **[0001609711-24-000165_gddyex991-20240930xq3earni.htm:1]** 

What factors drove the significant increase in total assets in Q3 2024?

The dramatic turnaround in Q3 2024 was primarily driven by a **significant increase in net income of $738.3 million** that boosted retained earnings, along with **equity-based compensation adding $222.4 million** to additional paid-in capital. These positive effects helped offset the reduction caused by **stock repurchases of 5.2 million shares for $668.1 million**. Additionally, **foreign currency adjustments** played a role by improving the accumulated other comprehensive income. This combination of factors transformed the Total Stockholders' Equity from **$62.2 million at the end of 2023** to **$356.7 million as of September 30, 2024**.  **[20241030LA44654:6]** **[0001609711-24-000165_gddyex991-20240930xq3earni.htm:8]** **[20241030LA44654:1]** **[20241030LA44654:7]** 

What contributed to the dramatic turnaround in stockholders' equity in Q3 2024?

c04e853d1a44ab3a7163e61be6207b191c1232883c17e37b63134c3d5e5e60be

The dramatic tax benefit in Q4 2023 was driven by the **release of the majority of its domestic valuation allowance** on U.S. and state deferred tax assets, which resulted in a **non-routine, non-cash benefit of approximately $1 billion**. This decision was based on **management’s judgment** that positive indicators—such as a **three-year cumulative consolidated book income position**, **improved operating results and profitability**, **projections showing sufficient utilization of tax attributes**, and **a history of no tax attribute expirations**—outweighed the negative evidence.  **[0001609711-24-000022_gddy-20231231.htm:177]** **[0001609711-24-000022_gddy-20231231.htm:123]** **[0001609711-24-000022_gddy-20231231.htm:131]** **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:0]** 

What drove the dramatic tax benefit in Q4 2023?

The surge in **net income in Q4 2023** was primarily driven by a **non-routine non-cash benefit**. Specifically, GoDaddy released the majority of its **valuation allowance on U.S. and state deferred tax assets**, which produced a benefit of approximately **$1 billion** recorded to income taxes in Q4 2023.  **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:0]** **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:1]** 

Why did net income surge in Q4 2023?

The unusually high EPS in Q4 2023 was driven by a combination of factors. **A non‐routine tax benefit of $984.8 million** significantly boosted net income, which, when paired with a dramatic increase in overall net income attributable to the company, had a strong upward impact on EPS. **Operational performance improvements**, reflected in robust revenue growth (a 6% year-over-year increase to $1.1 billion), and **share repurchase activities** that reduced the weighted-average shares outstanding further amplified the per-share earnings result.  **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:8]** **[0001609711-24-000016_a12312023-ex991q4earningsr.htm:0]** 

What factors contributed to the unusually high EPS in Q4 2023?

e65c8778b8642d0c25c2a9f355712ac48c2b16a76ff3d00d3f7015eae88f95a5

Net Income (USD, millions)

Depreciation and Amortization (USD, millions)

Equity-Based Compensation Expense (USD, millions)

(Gain) Loss on Derivative Instruments (USD, millions)

Other Adjustments to Net Income (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Maturities of Short-Term Investments (USD, millions)

Purchases of Property and Equipment (USD, millions)

Other Investing Activities (USD, millions)

Net Cash Provided by (Used in) Investing Activities (USD, millions)

Repurchases of Class A Common Stock (USD, millions)

Other Financing Obligations (USD, millions)

Net Cash Used in Financing Activities (USD, millions)

Effect of Exchange Rate Changes on Cash and Cash Equivalents (USD, millions)

Net Increase (Decrease) in Cash and Cash Equivalents (USD, millions)

Interest Paid on Long-Term Debt (USD, millions)

Income Taxes Paid, Net of Refunds (USD, millions)

Operating Lease Liabilities Payments (USD, millions)

Operating Lease Assets Obtained in Exchange for Liabilities (USD, millions)

Deferred Taxes (USD, millions)

Prepaid Domain Name Registry Fees (USD, millions)

Accounts Payable (USD, millions)

Accrued Expenses and Other Current Liabilities (USD, millions)

Deferred Revenue (USD, millions)

Other Operating Assets and Liabilities (USD, millions)

Cash and Cash Equivalents, Beginning of Period (USD, millions)

Cash and Cash Equivalents, End of Period (USD, millions)

Accrued Purchases of Property and Equipment (USD, millions)

Share Repurchases Not Yet Settled (USD, millions)

3fc4f97aaf8b3e7ed28134dd952c938ad45446d397fa8b533323c8de39d759ac

f83f959feeb7b2bde3bc49bd6b07b1bbb87ed3bf6e3161dfdb5468de56469b63

Revenue - Applications and commerce (USD, millions)

Revenue - Core platform (USD, millions)

Total Revenue (USD, millions)

Cost of revenue (excluding depreciation and amortization) (USD, millions)

Technology and development (USD, millions)

Marketing and advertising (USD, millions)

Customer care (USD, millions)

General and administrative (USD, millions)

Restructuring and other (USD, millions)

Depreciation and amortization (USD, millions)

Total costs and operating expenses (USD, millions)

Operating income (USD, millions)

Interest expense (USD, millions)

Loss on debt extinguishment (USD, millions)

Other income (expense), net (USD, millions)

Income before income taxes (USD, millions)

Benefit (provision) for income taxes (USD, millions)

Net income (USD, millions)

Net income attributable to GoDaddy Inc. per share of Class A common stock - Basic (USD)

Net income attributable to GoDaddy Inc. per share of Class A common stock - Diluted (USD)

Weighted-average shares of Class A common stock outstanding - Basic (Thousands)

Weighted-average shares of Class A common stock outstanding - Diluted (Thousands)

939ec2595779a7a3addeaf8e3934112c9ccb361c68ae02ead744f4463f0cf6e4

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9850f0fc3ab77a289ed318ba7f09fb642a9b4fe2ec768dfd2b5c7cce07c4a458

b28418aa76eee908e91b7c1ebd54fd1595e6f120ab67ed1f03faad4bd7ff5e96

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

a10fb10161a7dda8257afd568ea64c6f86e8fc59dcefcdb9262c394d9beac8f2

Annualized recurring revenue (USD millions)

Total bookings (USD millions)

Total customers at period end (thousands)

ARPU (USD)

Domains under management (thousands)

d653ccd6eb2888ffd8d4e26676d57b800af7890a005236c90e0fa9335f2ef3cf

United States

International

Total Revenue

65cdc5d70aa3ae99d53ac51e4cb6db969eecd5ffa70426bb6d235cffa5a09ccf

Applications and Commerce

- Domains

- Other

Core Platform

Hosting and Presence

Business Applications

a1663d6101572c309652517b5748ca9deeb3fbcff926f67d6b6e53e61df3edfc

GoDaddy (GDDY)

Financials