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Q4 2020Earnings ResultsFebruary 2021Azhar MohamedLESCRIBE.IN
Forward–looking statementsThis presentation contains forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements arebased on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Statements in this presentation involve risks,uncertainties and assumptions. If the risks or uncertainties materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by suchforward-looking statements. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to: launches of new orexpansion of existing products or services, any projections of product or service availability, technology developments and innovation, customer growth, or other future events; anystatements about historical results that may suggest future trends for our business; any statements regarding our plans, strategies or objectives with respect to future operations,including international expansion plans, partner integrations and marketing strategy; any statements regarding integration of recent or planned acquisitions, including desiredsynergies and vertical integration from recent acquisitions, changes to executive leadership, any statements regarding our future financial results; as well as the impact of theCOVID-19 pandemic on our business, customers, employees and third-party partners; and any statements of assumptions underlying any of the foregoing.Actual results could differ materially from our current expectations as a result of many factors, including, but not limited to: the unpredictable nature of our rapidly evolving market;fluctuations in our financial and operating results; our rate of growth; interruptions or delays in our service or our web hosting; breaches of our security measures; the impact of anyprevious or future acquisitions; our ability to continue to release, and gain customer acceptance of, our existing and future products and services; our ability to manage our growth;our ability to hire, retain and motivate employees; the effects of competition; technological, regulatory and legal developments; intellectual property litigation; developments in theeconomy, financial markets and credit markets, including as a result of COVID-19; and execution of share repurchases.Additional risks and uncertainties that could affect GoDaddy’s financial results are included in the other filings we make with the SEC from time to time, including those described in"Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as well as those described in “Management's discussion and Analysis of FinancialCondition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarter endedSeptember 30, 2020, which are available on GoDaddy’s website at https://investors.godaddy.net and on the SEC's website at www.sec.gov. Additional information will also be setforth in other filings that GoDaddy makes with the SEC from time to time. All forward-looking statements in this presentation are based on information available to GoDaddy as of thedate hereof. GoDaddy does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date onwhich they were made.Non-GAAP Financial MeasuresIn addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this presentation includes certain non-GAAPfinancial measures and other operating metrics. We believe that these non-GAAP financial measures and other operating metrics are useful as a supplement in evaluating our ongoingoperational performance and enhancing an overall understanding of our past financial performance. The non-GAAP financial measures included in this presentation should not beconsidered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation between each non-GAAP financial measure and itsnearest GAAP equivalent is included at the end of this presentation. 2021 GoDaddy Inc.
GoDaddy immediately addressable TAM: 180BDreamCreateGrowDomainsOnline Presence Branded EmailMarketing Commerce Consumer EngagementTypical customer spendin category per year 15 100- 250 600- 1,000Available TAM 5B 45B 130B 5B 50B 180BGoDaddy offeringCumulative TAMTAM figures are GoDaddy estimates for 2020 based on internal metrics and data from the GPFI Global Partnership for Financial Inclusion. 2021 GoDaddy Inc.
Q4 2020 resultsBookingsRevenueUFCF†13% Y/Y increase12% Y/Y increase2%‡ Y/Y increase13% Constant Currency12% Constant Currency12%‡ excluding 27th pay period 943M 834MQ4 2019Q4 2020 780M 874M 178MQ4 2020Q4 2019Q4 2019*uFCF is a non-GAAP measure. A reconciliation table between uFCF and its nearest GAAP equivalent for the period presented can be found at the end of this presentation. 2021 GoDaddy Inc. 181MQ4 2020
1.4 MILLIONNet new customers in 2020. 2021 GoDaddy Inc.
eCommerce value prop01 Reach more customersEasily list inventory, in bulk, on multiplesales channels.02 Avoid oversellingAdjust and sync inventory across all channels.03 Streamline fulfillmentPrint postage and ship all ordersfrom a single interface. 2021 GoDaddy Inc.
Evolution Broader experimentation program Delivering functionality faster Setting ambitious goals while alsogiving us the confidence to achievethem Putting more products in the hands ofmore customers and winning theright to do more for them. Leadership evolutionLaura JohnsonYOUANDYOURS.COM 2021 GoDaddy Inc.
Commerce Strong growth in our Websites Marketing offering for commerce,and in Sellbrite GMV grew 75% across all platforms Exceptional WooCommercecapabilities through SkyVergeacquisition Acquired Poynt February 2021:§ Head start in integrating a setof commerce solutions§ Payment capabilities aspayment facilitator§ Innovative point of sale terminals§ Inventory management software,loyalty management tools, and more 2021 GoDaddy Inc.
GoDaddy Pro HubLaunch Enables website designers anddevelopers to perform their work in asimple, intuitive way that saves themtime and money Enables bulk updates across hundredsof sites for WordPress Core, plugins,and themes, allowing pros to roll outupdates for better security, newfunctionality, and better availability,in seconds rather than hoursWATCH THE VIDEO 2021 GoDaddy Inc.
Innovation in Domains Recently added GoDaddy CorporateDomains and GoDaddy Registry “Find” adaptive user experienceleverages multiple inputs ensuringcustomers see the options andbundles that will create the most value List for Sale tool allowing customerswith unused domains to list in theaftermarket 2021 GoDaddy Inc.
Websites Marketing Freemium rollout adding millionsto our base with strong conversion Freemium availability to additionalmarkets in the coming year Added 9 new commerce templatesto make it easier than ever to getstarted selling online Enhanced layouts and tools to helpcustomers promote offers in newengaging ways Improved integration with socialmedia to improve organic posts 2021 GoDaddy Inc.Ben BarnettBARNETTBUILDING.COM.AU
Product Progress — Websites nerfeatureinventorymanagementPixel codeto ationIntegrationPageinsightsMy BusinessPartnership3rd partyratings &reviews syncIntegrationOnline storeaccessiblefor 20 globalmarketsProtectionbyrecaptchaMembersonly page1M paidsubscriptionsfor W nslateHTMLcustomization 2021 GoDaddy Inc.BlogtoolOnline / offlineinventory litiesBlog postorganizationby categoriesOffer lowtransactionfees & newpaymentoptions (PPcredit, Venmo)with PayPalBusinesspaymentsContact formattachmentsWebsitesync toFacebook& InstagramShopExpandedShoppingAds andSurfaceswidgetsInline fontsizing fordesktopGoDaddyapp updatesinclude toreexpansionin gradedmobile emailmarketingCommerceintegrationswithgShopping, thefacebookDeveloperPlatform &2018Websitebackup& restorefree trialWidgetInsightsmart alleryMeta tag30-day nocredit cardWebsites MarketingfreemiumExpandedgallery oftemplatesTMAnalyticsCOVID-19guidance inW M andGoDaddymobile appOnlineappointmentsaccessible forglobal marketsImprovedOLS zerostate &featuredproductsDrivingWebsites ditingcontrolshow-tocoursesConsumeraccountsfor online store& appointmentsSocial mediaimagepublishingWebsites Marketingnew productnameEnhancedmediainsertion &managementtoolsAndroid &iOS appCOVID-19AwarenesstemplatesGift cardwidget &gift ardingLocal deliveryCOVID-19“one-click”Zoom meetinglinksSocial mediacontentcreationwith OverintegrationCOVID-19local deliveryoptionWebsite careproactiveoutreach forCOVID-19updates3-month free trialdigital marketing suiteProduct SEOimprovementTwitch tplacelisting flowVideo hostingand creationvia ddyconversationsSMSnotificationsenabled fornew ordersOne-pagee-commercetemplate
Product Progress — Managed tthemes toE-com planlogos Core onWeb (1.2)editorsettingpanelicon egalleryblockUX Corestylingapplied tothe blockeditor forNextGenand GoAddedproductstour inActionCenter forNewonboardingavailable inall dsImproveFAQs anddocumentationfor both Go lblockcontactformblockUpdated in apppurchase andupgrades forMWP plansDeployedthe OWSwebsite onWordPressusingRolloutcentralizedCore onSFTP (1.2)Go themeavailable inWordPressrepositoryAdded 10 morePremium WooCommerceextensions for free toeCommerce planBlockedCommentsSpam whichimprovedMySQLperformanceand reducedslow queriesextensionsbased on user’sgoalsBuilt phase one ofthe GoDaddylayout and designpattern libraryPhase oneof removingjQuerysupportfromCorelayoutsadded tothe GothemeWordPress5.5 & 5.5.1rolloutLaunchedManagedWordPress onour EMEAPartner BrandsTSO Host,DomainFactory,Heart InternetGo is nowthe #7 mostpopulartheme at50,000 activeinstallsImprovedgradientcontrolsfor GoImprovedWP-Cronwith betterstabilityLight-boxgallerysupportfor galleryblocksNewprovisioningflow withimportanttipsmap block(simple GoogleMaps APIsupport)enhancedform blockacquired“SummerRefresh”UI launchtimed w/DeepSeelaunchIntroducedutilitybased classframeworksocialprofilesblock 2021 GoDaddy Inc.Launchedecommerceplan SVP, apptforms)extensionseventsblockintroducePHP hyfontspostsblockGutter &columnutilityclassesacross allblocksMWP waslabeled asa top-tierWordPresshostingproduct byReviewSignalWordPress m newlyprovisionedsitesEnabledSSL ontempdomainsDevelopeda processfor MySQLBalancingNew ProvisionedSites have all preinstalled pluginsup-to-dateLaunched eCommerce#OpenWeStandpromotionslide outcart in GoCustomCSSpropertiesfor blockspacingbecame the #1 WordPressblocks plugin by number ofactive installs (usage),including used byRequestWordPress.comfree cquisitionVerticalalignmentcontrolsadded tothe RowblocksGlobalviewportbasis controlfor sitespacing inGoUpdate CoBlocks& Go to supportWordPress 5.5Addedabilityto servelayouts andpatterns viathe WPNUXAPISuccessfullymigrated allcustomersfrom MWP2.0 to MWP1.0Added cardand overlapstyles tothe Media& TextblockLaunchednew DomainAttachWidget forEMEA BrandsWordPress5.5.2 /5.5.3 and5.6 rollout
DomainsHosting & PresenceBusiness Applications14% Y/Y increase5% Y/Y increase20% Y/Y increase 402M 352MQ44022020Q4 3522019 Continued strong renewals andregistrations Better and differentiated searchacross desktop and mobile devices Broadest and deepest domainaftermarket marketplace Launch of GoDaddy Registry 2021 GoDaddy Inc. 293MQ4 2019 309M 163MQ4 2020Q4 2020 135MQ4 2019 Expanding presence suite to helpentrepreneurs be everywhere they need tobe to meet their customers Increasing functionality and feature set ofcommerce offering Broad integrations and partnerships Build and customize your site onany device Microsoft M365 continued strongadoption Open-Xchange in emerging markets Strong Workspace renewals
Global footprintContinued global expansionInternational Revenue: 12% Y/Y growth 12% Constant Currency 293M 261MQ4 2020100 CountriesQ4 2019 1.2B Run Rate50 MarketsVanika ChoudharySEQUELMUMBAI.INAyah SharafAyah Sharaf DesignsAYAHSHARAFDESIGNS.COM 2021 GoDaddy Inc.
Exceptional unlevered free cash flow (uFCF)15%Trailing Twelve Month uFCFCAGR900280800230700600 736M 656M 669M 685MQ1 19Q2 19Q3 19 771M 789MQ1 20Q2 20 822M 825MQ3 20Q4 2018050013040030080200301000-20Q4 19A reconciliation table between uFCF and its nearest GAAP equivalent for the period presented can be found at the end of this presentation. 2021 GoDaddy Inc.
Disciplined investmentdrives growth at greatreturnsFor each 1 invested in Marketing in2020, GoDaddy generated 0.85 inincremental Bookings and 0.45 inincremental Gross Profit onproducts that: 439 MILLONinvested in Marketing andAdvertising in 2020 374M 197MIncrementalIncremental 3,776M2020 3,401M 2,158M2019 create significant, immediatecustomer value 1,961M2019 have high renewal rates have strong potential for upselland cross-sell have significant pricing power are only getting betterBookingsGross profit2020
Balance sheet and liquidityStrong liquidity positionCash generative / 25% uFCF marginsLeverage Ratio(LTM) 1.8B Term LoanMaturity – 2024 748M Term Loan 765M in cash on balance sheetMaturity - 20272.6X leverage 600M Unsecured No significant debt maturities until 20242.6XDebt – 2027600M undrawn revolverTRA2.2X1.8XSettled TRA for one-time payment of 850MVariableInterest RateExposureEliminates approximately 1.0B in tax-relatedpayments through 2028, and more thereafterFuture growth targets 3B in cumulative uFCF through 2023Targeted leverage of 2X-4XIncremental debt capacity of more than 1B,with total deployable capital of more than 5B through 2023, assuming 4X leverage. 2021 GoDaddy Inc.Deployable capitalthrough 2023Variable201820192020Fixed 5B
Key investment highlights Clear global leader in serving massivemarket of everyday entrepreneurs4-1-1 Innovative customer-led offering drivingshare gains across the customer journeyOn GoDaddy Capability to invest capital aggressively 4B Revenue 1.1B uFCF Distinctive financial profile with profitablegrowth at scale Experienced management with a trackrecord of successOrganic target for 2022Potential for upside from future M&AReconciliations to non-GAAP metrics can be found in the appendix. 2021 GoDaddy Inc.
Q1 2021 OutlookTotal RevenueDomainsHosting & PresenceBusiness Applications 2021 GoDaddy Inc. 885M; 12% growthdouble-digit growthmid-single-digit growthhigh-teens growth
2021 OutlookTotal RevenueUnlevered Free Cash FlowDomainsHosting & PresenceBusiness Applications 2021 GoDaddy Inc. 3.7B; 12% growth 945M; 15% growthdouble-digit growthhigh-single digit growthhigh-teens growth
Non-GAAP Reconciliation: Bookings & uFCFThree Months Ended December 31Reconciliation of Bookings ( M)Twelve Months Ended December 312019202020192020 780.4 873.9 2,988.1 3,316.7Change in deferred revenue(3.1)11.9180.5210.5Net refunds56.655.9233.4247.3Other(0.3)1.4(0.8)1.0 833.6 943.1 3,401.2 3,775.5Total revenueTotal BookingsReconciliation of Unlevered Free Cash Flow ( M)Net cash provided by operating activitiesCash paid for interestCash paid for acquisition-related costsCapital expendituresCash paid for restructuring chargesUnlevered Free Cash Flow 2021 GoDaddy Inc.Three Months Ended December 31Twelve Months Ended December 312019 162.22020 165.92019 723.42020 .6)(66.5)—3.7—19.4 177.7 181.1 735.6 825.4
Non-GAAP Reconciliation: Normalized EBITDAThree Months Ended December 31Reconciliation of Normalized EBITDA ( M)Twelve Months Ended December 312019202020192020 61.1 70.8 138.4( 494.1)Interest, net17.626.669.986.9Benefit/Provision for income taxes & TRA adjustments(4.6)(5.5)(20.7)673.4Equity-based compensation expense40.849.4147.0191.5Depreciation and turing charges—1.1—46.8Accrual for legal settlement expenses—(2.3)18.1(10.0)0.3—14.8— 166.7 196.8 586.6 722.2Net income (loss)Acquisition-related costsDebt refinance expensesNormalized EBITDAIn Q3 2019, we recognized a 20.4M credit to correct an immaterial error related to certain performance-based awards in prior periods.This adjustment increased Net Income by 20.4M and lowered equity-based compensation by 20.4M. 2021 GoDaddy Inc.
Non-GAAP Reconciliation: Net DebtReconciliation of Net Debt ( M)Current portion of long-term debtLong-term debtDecember 31, 2020 24.33,090.1Unamortized original issue discount on long-term debt13.5Unamortized debt issuance costs25.7Total debtLess: Cash and cash equivalentsNet Debt 2021 GoDaddy Inc. 3,153.6(765.2) 2,388.4
Non-GAAP Reconciliation: Trailing Twelve Months uFCFReconciliation of uFCF ( M)Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20Q4-20Net cash provided by operating activities 611.1 643.5 689.7 723.4 757.0 763.8 760.9 764.6Impact of discontinued operations23.82.4——————Cash paid for 37.31.3————— 655.9 669.0 684.7 735.6 771.3 789.5 822.1 825.4Cash paid for restructuring chargesCash paid for acquisition-related costsCapital expendituresCash paid for indirect taxesUnlevered Free Cash Flow 2021 GoDaddy Inc.
Non-GAAP Financial Measures& Other Operating MetricsIn addition to our results determined in accordance with GAAP, this presentationincludes certain non-GAAP financial measures and other operating metrics.We believe that these non-GAAP financial measures and other operating metrics areuseful as a supplement in evaluating our ongoing operational performance andenhancing an overall understanding of our past financial performance. The non-GAAPfinancial measures included in this release should not be considered in isolation from,or as a substitute for, financial information prepared in accordance with GAAP.A reconciliation between each non-GAAP financial measure and its nearest GAAPequivalent is included in this release following the financial statements. We use bothGAAP and non-GAAP measures to evaluate and manage our operations. 2021 GoDaddy Inc.
Total Bookings. Total bookings represents cash receipts from the sale of products to customers in a given period adjusted for products where we recognizerevenue on a net basis and without giving effect to certain adjustments, primarily net refunds granted in the period. Total bookings provides valuable insight intothe sales of our products and the performance of our business since we typically collect payment at the time of sale and recognize revenue ratably over the termof our customer contracts. We report total bookings without giving effect to refunds granted in the period because refunds often occur in periods different fromthe period of sale for reasons unrelated to the marketing efforts leading to the initial sale. Accordingly, by excluding net refunds, we believe total bookingsreflects the effectiveness of our sales efforts in a given period.Total customers. We define a customer as an individual or entity, as of the end of a period, having an account with one or more paid product subscriptions. Asingle user may be counted as a customer more than once if they maintain paid subscriptions in multiple accounts. Total customers is one way we measure thescale of our business and is an important part of our ability to increase our revenue base.ARPU. We calculate ARPU as total revenue during the preceding 12-month period divided by the average of the number of total customers at the beginning andend of the period. ARPU provides insight into our ability to sell additional products to customers.Unlevered Free Cash Flow. Unlevered free cash flow is a measure of our liquidity used by management to evaluate our business prior to the impact of our capitalstructure and restructuring and purchases of property and equipment, such as data center and infrastructure investments, that can be used by us for strategicopportunities and strengthening our balance sheet. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow availablefor discretionary expenses.Normalized EBITDA. Normalized EBITDA is a supplemental measure of our operating performance used by management to evaluate our business. We believethat the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of core operating results andpermits period-over-period comparisons of our operations. We calculate Normalized EBITDA as net income excluding depreciation and amortization, interestexpense (net), provision or benefit for income taxes and TRA adjustments, equity-based compensation expense, acquisition-related costs and certain othercertain items.Net Debt. We define net debt as total debt less cash and cash equivalents and short-term investments. Total debt consists of the current portion of long-termdebt plus long-term debt, unamortized original issue discount and unamortized debt issuance costs. We believe the presentation of net debt provides usefulinformation to investors because our management reviews net debt as part of its management of our overall liquidity, financial flexibility, capital structure andleverage. Furthermore, certain analysts and debt rating agencies monitor our net debt as part of their assessments of our business.Gross Merchandise Volume (GMV) is an operating metric and represents the total dollar value of orders facilitated by our customers through the Websites Marketing and Sellbrite platforms, including shipping and handling, and taxes, and is shown net of discounts, and returns (where visibility exists). While GMV isnot indicative of our performance, we believe it is helpful to illustrate the volume of commerce facilitated by our products. 2021 GoDaddy Inc.
GoDaddy, Inc. 14455 N. Hayden Rd. Scottsdale, AZ 85260
WordPress hosting product by Review Signal Deployed the OWS website on WordPress using and Go Updated in app purchase and upgrades for MWP plans Launched eCommerce #OpenWeStand promotion Removed irrelevant plugin notifications from newly provisioned sites Added 10 more Premium WooCo
