GoDaddy (NYSE:GDDY) Beats Q4 Sales Targets, Guides For 7.1% Growth Next Year

GoDaddy Inc. (NYSE:GDDY), the renowned domain registration and web hosting provider, has reported strong financial results for the fourth quarter and full year 2024, surpassing sales targets and guiding for 7.1% growth in 2025. The company's robust performance can be attributed to several strategic initiatives and product innovations that have driven its growth.



GoDaddy's fourth quarter and full year 2024 results demonstrated impressive growth across various metrics. The company reported total revenue of $4.6 billion for the full year, up 8% year-over-year, and total bookings of $5.0 billion, up 9% year-over-year. Net income for the full year was $936.9 million, down 32% year-over-year, representing a 20% margin. Normalized EBITDA (NEBITDA) for the full year was $1.4 billion, up 23% year-over-year, representing a 31% margin. Net cash provided by operating activities for the full year was $1.3 billion, up 23% year-over-year, and free cash flow for the full year was $1.4 billion, up 25% year-over-year.



GoDaddy's strong performance can be attributed to several strategic initiatives and product innovations. One key factor is the expansion of the company's AI-powered, business-in-a-box GoDaddy Airo experience. Launched in 2024, GoDaddy Airo harnesses the power of generative AI and machine learning to proactively help build and grow online ventures. This feature set expansion, including the launch of the Airo Plus tier, offering advanced logos and imagery, AI-powered marketing tools, and enhanced WordPress site building capabilities, has attracted new customers and increased engagement among existing ones, driving sales growth.

Another significant driver of GoDaddy's growth is the expansion of its commerce offerings. The company's payment facilitator enables customers to accept all major forms of payments, both online and offline. This service, along with the introduction of Smart Terminal, a dual-screen all-in-one Point-of-Sale system, has expanded GoDaddy's commerce offerings and provided customers with a seamless payment experience, contributing to higher sales.

GoDaddy's commitment to the WordPress community has also fostered goodwill and encouraged more users to choose the company's services. The company donated $0.5 million to The WP Community Collective and launched a re-architected Managed WordPress Hosting platform, delivering enhanced performance, scalability, and security. These initiatives have contributed to GoDaddy's strong sales performance and are expected to continue driving growth in the coming quarters.



GoDaddy's guidance for 7.1% growth in 2025 is lower than the average analyst expectation of 7.35% for the same period. However, the company's strong financial performance, strategic initiatives, and product innovations position it well for continued growth. By focusing on these key factors and trends, investors can anticipate GoDaddy's strong sales performance to continue in the coming quarters.

In conclusion, GoDaddy's impressive fourth quarter and full year 2024 results, driven by strategic initiatives and product innovations, have positioned the company for continued growth in 2025. With a strong financial performance and a commitment to innovation, GoDaddy is well-equipped to meet the challenges and opportunities that lie ahead.