GoDaddy anticipates unlevered free cash flow of around $1.1 billion for the whole year ending December 31, 2022, an increase of 15% percent over the $960 million in unlevered free cash flow produced in 2021. With a gross merchandise volume (GMV) of $28 billion, up 11 percent year over year in the second quarter, GoDaddy in particular had tremendous growth in its commerce offerings.
“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,” said Aman Bhutani, Chief Executive Officer (CEO) at GoDaddy. “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.”
During the second quarter, the global web hosting provider continues to drive strong acceptance of GoDaddy Payments for eCommerce solutions, with 30 percent of Managed WordPress customers in the WooCommerce tier and 80 percent of Websites + Marketing commerce customers choosing GoDaddy Payments.
In the second quarter, GoDaddy launched a test WooSaas online shop, providing a solution geared for bigger retailers, as part of its ongoing efforts to innovate and improve the services offered to GoDaddy Pros. By incorporating unique functionality as well as premium extensions and features, this product would help streamline the user experience.
GoDaddy’s Third Quarter Achievements
GoDaddy expects total revenue for the third quarter ended September 30, 2022, to be in the range of $1.030 billion and $1.045 billion, or, at the midpoint, an increase of 8 percent over the same period last year. GoDaddy anticipates apps and commerce revenue growth in the range of 13 to 15 percent and core platform revenue growth in the range of 4 to 6 percent for the third quarter ending September 30, 2022.
GoDaddy plans to achieve normalized EBITDA of between $250 million and $260 million for the third quarter that ends on September 30, 2022, which, at the midpoint, would represent an increase of 12 percent over the previous year.
A complete rollout of a ‘Payable Domains’ service by GoDaddy is anticipated for the third quarter. By giving customers a professional branded checkout and enabling them to take payments without requiring any additional subscriptions, Payable Domains would streamline the online payment process.
“GoDaddy’s durable top-line growth, profitability at scale and robust cash flow continue to shine in our second quarter financial results as evidenced by solid revenue growth with margin expansion,” said Mark McCaffrey, Chief Financial Officer (CFO) at GoDaddy. “Along with returning $1 billion in cash to shareholders year-to-date through our share buyback program, we are actively managing investments and expenses to deliver short-term performance while keeping our eye on achieving our committed long-term goals.”