Item 1. Financial Statements

98K characters. Original on sec.gov · Markdown

Item 1. Financial Statements

GoDaddy Inc.

Consolidated Balance Sheets

(In millions, except shares in thousands and per share amounts)


	June 30,		December 31,
	2025		2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,086.7	$	1,089.0

Accounts and other receivables	113.8		91.1
Registry deposits	44.5		34.5
Prepaid domain name registry fees	522.0		492.0
Prepaid expenses and other current assets	156.4		245.2


Total current assets	1,923.4		1,951.8
Property and equipment, net	148.5		156.4
Operating lease assets	48.6		49.4
Prepaid domain name registry fees, net of current portion	239.8		224.8
Goodwill	3,644.0		3,518.9
Intangible assets, net	1,022.2		1,055.8
Deferred tax assets	1,155.3		1,181.5
Other assets	92.1		96.8
Total assets	$	8,273.9	$	8,235.4
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	82.7	$	81.6
Accrued expenses and other current liabilities	519.3		378.6


Deferred revenue	2,399.7		2,222.3
Long-term debt, current portion	15.7		15.9

Total current liabilities	3,017.4		2,698.4
Deferred revenue, net of current portion	937.8		883.2
Long-term debt, net of current portion	3,772.4		3,779.1
Operating lease liabilities, net of current portion	69.5		76.7
Other long-term liabilities	57.8		85.7
Deferred tax liabilities	14.6		20.2
Commitments and contingencies
Stockholders' equity:

Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding	—		—
Class A common stock, $0.001 par value - 1,000,000 shares authorized; 138,863 and 141,208 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively	0.1		0.1

Additional paid-in capital	2,799.8		2,611.8
Accumulated deficit	(2,431.2)		(2,052.3)
Accumulated other comprehensive income	35.7		132.5
Total stockholders' equity	404.4		692.1


Total liabilities and stockholders' equity	$	8,273.9	$	8,235.4

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Operations (unaudited)

(In millions, except shares in thousands and per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenue:
Applications and commerce	$	463.9	$	405.6	$	910.3	$	788.7
Core platform	753.7		718.9		1,501.6		1,444.3
Total revenue	1,217.6		1,124.5		2,411.9		2,233.0
Costs and operating expenses(1):
Cost of revenue (excluding depreciation and amortization)	442.3		408.3		882.8		822.8
Technology and development	214.3		205.9		419.6		408.8
Marketing and advertising	93.4		93.2		193.5		180.7
Customer care	73.5		73.3		144.6		149.7
General and administrative	96.9		95.6		194.0		187.3
Restructuring and other	0.3		6.9		2.4		29.3
Depreciation and amortization	30.6		33.1		61.4		70.3
Total costs and operating expenses	951.3		916.3		1,898.3		1,848.9
Operating income	266.3		208.2		513.6		384.1
Interest expense	(38.3)		(39.5)		(75.5)		(80.8)

Loss on debt extinguishment	—		(2.1)		—		(3.1)
Other income (expense), net	11.1		8.3		21.0		17.9
Income before income taxes	239.1		174.9		459.1		318.1
Benefit (provision) for income taxes	(39.2)		(28.6)		(39.7)		229.7


Net income	$	199.9	$	146.3	$	419.4	$	547.8


Net income per share of Class A common stock:


Basic	$	1.44	$	1.04	$	2.99	$	3.86



Diluted	$	1.41	$	1.01	$	2.92	$	3.77
Weighted-average shares of Class A common stock outstanding:
Basic	138,734		141,269		140,200		141,899
Diluted	141,408		144,644		143,387		145,321
___________________________
(1) Costs and operating expenses include equity-based compensation expense as follows:
Cost of revenue	$	0.3	$	0.3	$	0.6	$	0.3
Technology and development	43.3		39.3		84.5		76.8
Marketing and advertising	8.5		7.9		16.7		15.2
Customer care	5.7		5.7		10.8		11.5
General and administrative	23.2		23.0		48.8		43.4
Restructuring and other	—		—		—		0.8
Total equity-based compensation expense	$	81.0	$	76.2	$	161.4	$	148.0

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	199.9	$	146.3	$	419.4	$	547.8
Foreign exchange forward contracts gain (loss), net(1)	(41.1)		1.2		(56.1)		10.5
Unrealized swap gain (loss), net(1)	0.5		(6.7)		(9.6)		3.8
Change in foreign currency translation adjustment	(26.3)		6.3		(31.1)		10.1
Comprehensive income	$	133.0	$	147.1	$	322.6	$	572.2


___________________________
(1) Amounts are net of the tax effects reflected below:
Foreign exchange forward contracts gain (loss), net	$	(12.4)	$	—	$	(16.9)	$	—
Unrealized swap gain (loss), net	$	(18.8)	$	1.2	$	(29.1)	$	9.7

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Stockholders' Equity (Deficit) (unaudited)

(In millions, except shares in thousands)


	Class A Common Stock			Additional Paid-in Capital	Accumulated Deficit		Accumulated Other Comprehensive Income				Total
	Shares	Amount
Balance at December 31, 2024	141,208	$	0.1		$	2,611.8	$	(2,052.3)	$	132.5		$	692.1
Net income	—	—			—		219.5		—			219.5
Equity-based compensation, including amounts capitalized	—	—			80.9		—		—			80.9
Stock option exercises	81	—			2.5		—		—			2.5
Repurchases of Class A common stock(1)	—	—			—		(765.1)		—			(765.1)
Impact of derivatives, net	—	—			—		—		(25.1)			(25.1)
Change in foreign currency translation adjustment	—	—			—		—		(4.8)			(4.8)
Vesting of restricted stock units and other	1,142	—			(0.2)		(0.1)		—			(0.3)
Balance at March 31, 2025	142,431	0.1			2,695.0		(2,598.0)		102.6			199.7
Net income	—	—			—		199.9		—			199.9
Equity-based compensation, including amounts capitalized	—	—			81.6		—		—			81.6
Stock option exercises	79	—			3.9		—		—			3.9
Repurchases of Class A common stock(1)	(4,510)	—			—		(33.2)		—			(33.2)
Issuance of Class A common stock under the 2024 Employee Stock Purchase Plan	124	—			19.2		—		—			19.2
Impact of derivatives, net	—	—			—		—		(40.6)			(40.6)
Change in foreign currency translation adjustment	—	—			—		—		(26.3)			(26.3)
Vesting of restricted stock units and other	739	—			0.1		0.1		—			0.2
Balance at June 30, 2025	138,863	$	0.1		$	2,799.8	$	(2,431.2)	$	35.7		$	404.4

_________________________________

(1)Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances of $(2.3) million and $6.3 million for the three months ended March 31, 2025 and June 30, 2025, respectively.

GoDaddy Inc.

Consolidated Statements of Stockholders' Equity (Deficit) (unaudited) (continued)

(In millions, except shares in thousands)


	Class A Common Stock			Additional Paid-in Capital	Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)				Total
	Shares	Amount
Balance at December 31, 2023	142,051	$	0.1		$	2,271.6	$	(2,320.7)	$	111.2		$	62.2
Net income	—	—			—		401.5		—			401.5
Equity-based compensation, including amounts capitalized	—	—			72.3		—		—			72.3
Stock option exercises	80	—			2.1		—		—			2.1
Repurchases of Class A common stock(1)	(1,245)	—			—		(147.1)		—			(147.1)
Impact of derivatives, net	—	—			—		—		19.8			19.8
Change in foreign currency translation adjustment	—	—			—		—		3.8			3.8
Vesting of restricted stock units and other	1,543	—			(0.1)		0.1		0.2			0.2
Balance at March 31, 2024	142,429	0.1			2,345.9		(2,066.2)		135.0			414.8
Net income	—	—			—		146.3		—			146.3
Equity-based compensation, including amounts capitalized	—	—			76.8		—		—			76.8
Stock option exercises	46	—			1.8		—		—			1.8
Repurchases of Class A common stock(1) (2)	(2,058)	—			—		(502.8)		—			(502.8)
Issuance of Class A common stock under the 2015 Employee Stock Purchase Plan	249	—			19.5		—		—			19.5
Impact of derivatives, net	—	—			—		—		(5.5)			(5.5)
Change in foreign currency translation adjustment	—	—			—		—		6.3			6.3
Vesting of restricted stock units and other	789	—			(0.1)		(0.1)		—			(0.2)
Balance at June 30, 2024	141,455	$	0.1		$	2,443.9	$	(2,422.8)	$	135.8		$	157.0

_________________________________

(1)Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $(0.5) million and $1.3 million for the three months ended March 31, 2024 and June 30, 2024, respectively.

(2)Includes $245.0 million of upfront payments to repurchase shares of our Class A common stock in conjunction with ASRs. No shares were initially received with these ASRs.

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Cash Flows (unaudited)

(In millions)


	Six Months Ended June 30,
	2025		2024
Operating activities
Net income	$	419.4	$	547.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	61.4		70.3
Equity-based compensation expense	161.4		148.0
(Gain) loss on derivative instruments	44.8		(13.8)





Deferred taxes	18.7		(225.1)

Other	19.9		22.8
Changes in operating assets and liabilities:


Prepaid domain name registry fees	(43.1)		(32.7)


Accounts payable	(0.4)		(52.4)
Accrued expenses and other current liabilities	(34.7)		(39.3)
Deferred revenue	223.8		225.3


Other operating assets and liabilities	(86.6)		(58.9)
Net cash provided by operating activities	784.6		592.0
Investing activities

Maturities of short-term investments	—		40.0



Purchases of property and equipment	(7.7)		(7.2)

Other investing activities	(2.3)		8.1
Net cash provided by (used in) investing activities	(10.0)		40.9
Financing activities
Proceeds received from:
Issuance of term loans	—		2,752.3

Stock option exercises	6.4		3.9

Issuance of Class A common stock under Employee Stock Purchase Plans (ESPPs)(1)	19.2		19.5

Payments made for:






Repurchases of Class A common stock	(792.5)		(649.2)
Repayment of long-term debt	(12.3)		(2,762.3)



Other financing activities	(2.5)		(10.4)

Net cash used in financing activities	(781.7)		(646.2)


Effect of exchange rate changes on cash and cash equivalents	4.8		(0.6)
Net increase (decrease) in cash and cash equivalents	(2.3)		(13.9)
Cash and cash equivalents, beginning of period	1,089.0		458.8
Cash and cash equivalents, end of period	$	1,086.7	$	444.9





Cash paid during the period for:
Interest on long-term debt, including impact of interest rate swaps	$	69.0	$	76.5
Income taxes, net of refunds received	$	19.9	$	14.1
Amounts included in the measurement of operating lease liabilities	$	18.1	$	20.5
Supplemental disclosure of non-cash transactions
Operating lease assets obtained in exchange for operating lease liabilities	$	1.7	$	11.4

_____________________________

(1)Employee Stock Purchase Plans include shares repurchased under the 2015 Employee Stock Purchase Plan for the six months ended 2024 and shares repurchased under the 2024 Employee Stock Purchase Plan for the six months ended 2025.

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Notes to Consolidated Financial Statements (unaudited)

(In millions, except shares in thousands and per share amounts)


Note 1	Organization and Background	7
Note 2	Summary of Significant Accounting Policies	8
Note 3	Goodwill and Intangible Assets	10
Note 4	Stockholders' Equity	11
Note 5	Prepaid Expenses and Other Current Assets	12
Note 6	Equity-Based Compensation Plans	12
Note 7	Deferred Revenue	13
Note 8	Accrued Expenses and Other Current Liabilities	13
Note 9	Long-Term Debt	14
Note 10	Derivatives and Hedging	15
Note 11	Leases	17
Note 12	Commitments and Contingencies	18
Note 13	Restructuring and Other Charges	18
Note 14	Income Taxes	19
Note 15	Income Per Share	19
Note 16	Segment Information	20
Note 17	Accumulated Other Comprehensive Income (Loss)	22

1. Organization and Background

Organization

GoDaddy was incorporated as a Delaware corporation on May 28, 2014. GoDaddy helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services and accept payments. GoDaddy Airo®, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance.

Basis of Presentation

Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated.

Our interim financial statements are unaudited and, in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2025.

These financial statements should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Form 10-K).

Prior Period Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. These amounts were not material to any period presented.

Use of Estimates

GAAP requires us to make estimates and assumptions affecting amounts reported in our financial statements. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ.

Segments

We report our operating results through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core), as further discussed in Note 16.

2. Summary of Significant Accounting Policies

Property and Equipment

Property and equipment, net by geography was as follows:


	June 30, 2025		December 31, 2024
U.S.	$	127.2	$	133.1
All other international	21.3		23.3
	$	148.5	$	156.4

No single international country represented more than 10% of property and equipment, net in any period presented.

Equity Investments

We hold investments in privately held equity securities, which are recorded in other assets, with a carrying value of $55.3 million and $53.1 million as of June 30, 2025 and December 31, 2024, respectively.

Revenue Recognition

Disaggregated Revenue

Revenue by major product type was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
A&C	$	463.9	$	405.6	$	910.3	$	788.7
Core: domains	566.2		529.2		1,128.1		1,061.2
Core: other	187.5		189.7		373.5		383.1
	$	1,217.6	$	1,124.5	$	2,411.9	$	2,233.0

No single customer represented over 10% of our total revenue for any period presented.

Revenue by geography is based on the customer's billing address and was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
U.S.	$	821.7	$	767.4	$	1,627.2	$	1,523.0
International	395.9		357.1		784.7		710.0
	$	1,217.6	$	1,124.5	$	2,411.9	$	2,233.0

No international country represented more than 10% of total revenue in any period presented.

See Note 7 for information regarding our deferred revenue.

Assets Recognized from Contract Costs

Costs to fulfill our customer contracts primarily relate to fees paid to various registries at the inception of a domain registration or renewal. We capitalize and recognize these prepaid domain name registry fees as cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Such expense was $208.2 million and $195.8 million for the three months ended June 30, 2025 and 2024, respectively, and was $410.0 million and $389.6 million for the six months ended June 30, 2025 and 2024, respectively.

We have no other material capitalized contract costs.

Restructuring and Other

Restructuring and other primarily represents: (i) charges related to restructuring activities undertaken to reduce future operating expenses and improve cash flows through reductions in force during the six months ended June 30, 2025 and June 30, 2024, and (ii) charges incurred related to the abandonment of certain operating lease assets during the six months ended June 30, 2024. See Note 13 for further discussion.

Fair Value Measurements

Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:

Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;

Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and

Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.

We hold certain assets required to be measured at fair value on a recurring basis. These include time deposits and money market funds, which we classify within Level 1 because we use quoted market prices to determine their fair value. Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 10. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are no active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets.

The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis:


	June 30, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Notice deposits	$	225.0	$	—	$	—	$	225.0
Time deposits	145.0		—		—		145.0
Commercial paper	—		134.0		—		134.0
Derivative assets	—		68.2		—		68.2
Total assets	$	370.0	$	202.2	$	—	$	572.2
Liabilities:




Derivative liabilities	$	—	$	164.3	$	—	$	164.3


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Time deposits	$	144.9	$	—	$	—	$	144.9
Notice deposits	140.0		—		—		140.0
Commercial paper	—		134.5		—		134.5



Derivative assets	—		172.7		—		172.7
Total assets	$	284.9	$	307.2	$	—	$	592.1

We have no other material assets or liabilities measured at fair value on a recurring basis.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (FASB) issued guidance to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this guidance require additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be effective for the 2025 fiscal year. We are currently evaluating the impact of this standard on our disclosures within our consolidated financial statements.

In November 2024, the FASB issued guidance requiring public business entities to disaggregate disclosure of income statement expenses. The amendment does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories within the footnotes to the financial statements. This update is effective for our 2027 fiscal year and interim periods in fiscal year 2028, with early adoption permitted. We are currently evaluating the impact of this standard on our disclosures within our consolidated financial statements.

3. Goodwill and Intangible Assets

The following table summarizes changes in our goodwill balance by segment:


	A&C		Core		Total
Balance at December 31, 2024	$	1,493.1	$	2,025.8	$	3,518.9

Impact of foreign currency translation	52.5		72.6		125.1


Balance at June 30, 2025	$	1,545.6	$	2,098.4	$	3,644.0

Intangible assets, net are summarized as follows:


	June 30, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets:
Trade names and branding	$	445.0	n/a		$	445.0
Domain portfolio	219.0		n/a		219.0
Contractual-based assets	292.7		n/a		292.7
Finite-lived intangible assets:
Customer-related	434.4		$	(399.6)	34.8
Developed technology	241.7		(232.2)		9.5
Trade names and other	101.1		(79.9)		21.2
	$	1,733.9	$	(711.7)	$	1,022.2


	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets:
Trade names and branding	$	445.0	n/a		$	445.0
Domain portfolio	220.5		n/a		220.5
Contractual-based assets	292.7		n/a		292.7
Finite-lived intangible assets:
Customer-related	394.2		$	(340.8)	53.4
Developed technology	235.1		(215.9)		19.2
Trade names and other	93.2		(68.2)		25.0
	$	1,680.7	$	(624.9)	$	1,055.8

Amortization expense was $19.2 million for the three months ended June 30, 2025 and 2024, and was $38.1 million and $39.7 million for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, the weighted-average remaining amortization period was 17 months for total amortizable intangible assets, 11 months for customer-related, 8 months for developed technology and 31 months for trade names and other.

Based on the balance of finite-lived intangible assets as of June 30, 2025, expected future amortization expense is as follows:


Year Ending December 31:
2025 (remainder of)	$	34.0
2026	24.0
2027	4.4
2028	1.9
2029	1.2

	$	65.5

4. Stockholders' Equity

Share Repurchases

Our board of directors (board) previously authorized the repurchase of up to $4,000 million of our Class A common stock. During the three months ended March 31, 2025, we made upfront payments totaling $767.4 million, which was equivalent to the amount remaining under this board authorization, to enter into two accelerated share repurchase agreements (ASRs) to repurchase shares of our Class A common stock. The ASRs were forward contracts indexed to our Class A common stock and met all of the applicable criteria for equity classification; therefore, the ASRs were not accounted for as derivative instruments. During April 2025, the ASRs were settled in full with the delivery of approximately 4.4 million shares of Class A common stock at a weighted average price of $176.02 per share. The total number of shares delivered under each ASR, and therefore the average purchase price paid per share, was determined based on the volume weighted-average price of our stock during the applicable purchase period less an agreed upon discount and subject to a cap. The shares received were retired at the time of delivery.

Upon completion of the prior repurchase authorization, as described above, in April 2025, our board approved the repurchase of up to an additional $3,000 million of our Class A common stock through the end of 2027. Shares may be repurchased in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws. This authorization does not obligate us to make any repurchases and may be modified, suspended or terminated by us at any time without prior notice. During the six months ended June 30, 2025, we repurchased a total of approximately 0.2 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $27.0 million. As of June 30, 2025, we had $2,973.0 million remaining available for repurchases under the current board authorization.

5. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	June 30, 2025		December 31, 2024
Derivative assets	$	68.2	$	172.7
Prepaid software and maintenance expenses	51.8		33.2
Usage-based prepaid expenses(1)	11.5		20.2
Other	24.9		19.1
	$	156.4	$	245.2

_________________________________

(1)Usage-based prepaid expenses include various cost of sales, marketing, rent and other prepaid commitments that are amortized as the related services are utilized.

6. Equity-Based Compensation Plans

Equity Plan Activity

We have granted stock options at exercise prices equal to the fair market value of our Class A common stock on the grant date as well as granted both stock options and restricted stock awards (RSUs) vesting solely upon the continued service of the recipient. Stock options were last granted in 2020. Performance-based awards (PSUs) vest based on our relative total stockholder return (TSR) as compared to an index of public internet companies.

The following table summarizes stock option activity:


	Number of Shares of Class A Common Stock (#)	Weighted- Average Exercise Price ($)
Outstanding at December 31, 2024	645	54.28

Exercised	(160)	40.10

Outstanding and vested at June 30, 2025	485	58.96

The following table summarizes stock award activity:


			Number of Shares of Class A Common Stock (#)
Outstanding at December 31, 2024			4,955
Granted: RSUs			1,336
Granted: TSR-based PSUs			150
TSR-based PSU achievement above target			210
Vested			(1,881)
Forfeited			(241)
Outstanding at June 30, 2025(1)			4,529

_________________________________

(1)The balance of outstanding awards consisted of the following:


	Number of Shares of Class A Common Stock (#)	Weighted-Average Grant-Date Fair Value Per Share ($)
RSUs	3,967	124.77
TSR-based PSUs	562	168.96


Outstanding at June 30, 2025	4,529

As of June 30, 2025, total unrecognized compensation expense related to non-vested equity grants was $458.9 million with an expected remaining weighted-average recognition period of 1.8 years.

7. Deferred Revenue

Deferred revenue consisted of the following:


	June 30, 2025		December 31, 2024
Current:
A&C	$	877.0	$	783.2
Core	1,522.7		1,439.1

	$	2,399.7	$	2,222.3
Noncurrent:
A&C	$	217.0	$	197.0
Core	720.8		686.2

	$	937.8	$	883.2

The increase in deferred revenue is primarily driven by payments received in advance of satisfying our performance obligations, offset by $673.5 million and $1,543.8 million of revenue recognized during the three and six months ended June 30, 2025 that was included in the deferred revenue balance as of December 31, 2024. Deferred revenue as of June 30, 2025 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are expected to be satisfied, as follows:


	Remainder of 2025		2026		2027		2028		2029		Thereafter		Total

A&C	$	618.4	$	349.5	$	95.2	$	21.2	$	6.0	$	3.7	$	1,094.0
Core	1,006.1		767.7		242.1		97.8		53.4		76.4		2,243.5

	$	1,624.5	$	1,117.2	$	337.3	$	119.0	$	59.4	$	80.1	$	3,337.5

8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	June 30, 2025		December 31, 2024
Derivative liabilities	$	164.3	$	—
Accrued payroll and employee benefits	97.7		146.0
Tax-related accruals	75.0		66.9
Accrued hosting and software licenses	33.6		17.8
Accrued legal and professional	27.5		35.3
Current portion of operating lease liabilities	24.1		23.0










Other	97.1		89.6
	$	519.3	$	378.6

9. Long-Term Debt

Long-term debt consisted of the following:


	Maturity Date	June 30, 2025		December 31, 2024
2029 Term Loans (effective interest rate of 6.7% at June 30, 2025 and 7.6% at December 31, 2024)	November 10, 2029	$	1,451.5	$	1,458.9
2031 Term Loans (effective interest rate of 6.3% at June 30, 2025 and 7.2% at December 31, 2024)	May 31, 2031	990.0		995.0

2027 Senior Notes (effective interest rate of 5.5% at June 30, 2025 and 5.4% at December 31, 2024)	December 1, 2027	600.0		600.0
2029 Senior Notes (effective interest rate of 3.7% at June 30, 2025 and 3.6% at December 31, 2024)	March 1, 2029	800.0		800.0
Revolver	November 10, 2027	—		—
Total		3,841.5		3,853.9
Less: unamortized original issue discount and debt issuance costs(1)		(53.4)		(58.9)
Less: current portion of long-term debt		(15.7)		(15.9)
		$	3,772.4	$	3,779.1

_________________________________

(1)Original issue discount and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the interest method.

Credit Facility

As described in our 2024 Form 10-K, our secured credit agreement (the Credit Facility) includes two tranches of term loans (the 2029 Term Loans and the 2031 Term Loans). A portion of the term loans is hedged by interest rate swap agreements, as discussed in Note 10.

As of June 30, 2025, we had $994.7 million available for borrowing under the Revolver as $5.3 million has been used to secure the issuance of standby letters of credit.

Senior Notes

As described in our 2024 Form 10-K, we have completed two offerings of senior notes (the Senior Notes), the 2027 Senior Notes due in 2027 and the 2029 Senior Notes due in 2029.

Fair Value

The estimated fair values of our long-term debt instruments are based on observable market prices for these instruments, which are traded in less active markets and therefore classified as Level 2 fair value measurements, and were as follows as of June 30, 2025:



2029 Term Loans	$	1,454.2
2031 Term Loans	$	991.9
2027 Senior Notes	$	599.9
2029 Senior Notes	$	756.6

Future Debt Maturities

Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of June 30, 2025 were as follows:


Year Ending December 31:
2025 (remainder of)	$	12.3
2026	24.6
2027	624.6
2028	24.6
2029	2,210.3
Thereafter	945.1
	$	3,841.5

10. Derivatives and Hedging

We utilize the following derivative instruments designated as cash flow hedges:

foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currencies;
cross-currency swaps used to manage variability due to movements in foreign currency exchange rates related to a Euro-denominated intercompany loan; and
pay-fixed rate, receive-floating rate interest rate swaps to effectively convert portions of our variable-rate debt to fixed.

We also utilize cross-currency swaps designated as net investment hedges to mitigate the risk associated with exchange rate fluctuations on our net investment in certain foreign operations.

The following table summarizes our outstanding derivative instruments on a gross basis, all of which are considered Level 2 financial instruments:


	Notional Amount				Fair Value of Derivative Assets(2)				Fair Value of Derivative Liabilities(2)
	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024



Cash flow hedges:
Foreign exchange forward contracts	$	966.9	$	946.3	$	—	$	33.2	$	39.0	$	—
Cross-currency swaps(1)	589.3		520.4		—		12.5		54.9		—
Interest rate swaps	1,928.6		1,939.0		68.2		111.0		—		—
Net investment hedges:
Cross-currency swaps(1)	755.4		667.0		—		16.0		70.4		—
Total hedges	$	4,240.2	$	4,072.7	$	68.2	$	172.7	$	164.3	$	—

_________________________________

(1)The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect of approximately 1.18 and 1.04 as of June 30, 2025 and December 31, 2024, respectively.

(2)In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities.

The following table summarizes the effect of our hedging relationships on accumulated other comprehensive income (AOCI):


	Unrealized Gains (Losses) Recognized in Other Comprehensive Income
	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024

Cash flow hedges:
Foreign exchange forward contracts(1)	$	(53.5)	$	1.2	$	(73.0)	$	10.5
Cross-currency swaps	(0.4)		(0.1)		4.4		(2.2)
Interest rate swaps	(17.9)		(5.4)		(43.1)		15.7
Net investment hedges:
Cross-currency swaps	(62.9)		5.8		(86.7)		19.0
Total hedges	$	(134.7)	$	1.5	$	(198.4)	$	43.0

_________________________________

(1)Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.

The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships:


	Three Months Ended June 30, 2025						Three Months Ended June 30, 2024
	Revenue		Interest Expense		Other Income (Expense), Net		Revenue		Interest Expense		Other Income (Expense), Net
Cash flow hedges:
Foreign exchange forward contracts:
Reclassified from AOCI into income	$	0.7	$	—	$	—	$	1.3	$	—	$	—
Cross-currency swaps:
Reclassified from AOCI into income(1)	—		2.1		(48.7)		—		2.5		4.0
Interest rate swaps:
Reclassified from AOCI into income	—		12.9		—		—		18.7		—
Net investment hedges:
Cross-currency swaps:
Reclassified from AOCI into income	—		2.7		—		—		3.2		—
Total hedges	$	0.7	$	17.7	$	(48.7)	$	1.3	$	24.4	$	4.0

_________________________________

(1)The amounts reflected in other income (expense), net include $48.3 million and $(4.1) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during the three months ended June 30, 2025 and 2024, respectively.


	Six Months Ended June 30, 2025						Six Months Ended June 30, 2024
	Revenue		Interest Expense		Other Income (Expense), Net		Revenue		Interest Expense		Other Income (Expense), Net
Cash flow hedges:
Foreign exchange forward contracts:
Reclassified from AOCI into income	$	2.0	$	—	$	—	$	2.9	$	—	$	—
Cross-currency swaps:
Reclassified from AOCI into income(1)	—		4.5		(72.0)		—		4.9		16.4
Interest rate swaps:
Reclassified from AOCI into income	—		25.7		—		—		36.7		—
Net investment hedges:
Cross-currency swaps:
Reclassified from AOCI into income	—		5.9		—		—		6.3		—
Total hedges	$	2.0	$	36.1	$	(72.0)	$	2.9	$	47.9	$	16.4

_________________________________

(1)The amounts reflected in other income (expense), net include $71.6 million and $(16.5) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, we estimate that $70.3 million of net deferred gains related to our designated hedges will be recognized in earnings over the next 12 months. No amounts have been excluded from our hedge effectiveness testing.

Risk Management Strategies

There have been no material changes in the risk management strategies associated with our derivatives from those disclosed in the 2024 10-K.

11. Leases

Our operating leases primarily consist of office and data center space expiring at various dates through October 2034. Certain leases include options to renew or terminate at our discretion. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of June 30, 2025, operating leases have a remaining weighted-average lease term of 6.1 years and our operating lease liabilities were measured using a weighted-average discount rate of 5.3%.

The components of operating lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Operating lease costs	$	6.2	$	6.9	$	12.4	$	14.5
Variable lease costs	3.6		3.0		6.3		6.7
Sublease income	(2.1)		(1.8)		(3.8)		(4.7)
Total net lease cost	$	7.7	$	8.1	$	14.9	$	16.5

During the six months ended June 30, 2024, we recognized $6.0 million of expense related to the abandonment of certain operating leases, which is included within restructuring and other.

12. Commitments and Contingencies

Litigation

From time-to-time, we are a party to litigation and subject to claims, suits, regulatory and government investigations, other proceedings and consent decrees in the ordinary course of business, including intellectual property claims, putative and certified class actions, commercial and consumer protection claims, labor and employment claims, breach of contract claims and other asserted and unasserted claims. We investigate claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable.

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which were included in Note 13 of Item 8 of our 2024 Form 10-K.

Indirect Taxes

We are subject to indirect taxation in some, but not all, of the various states and foreign jurisdictions in which we conduct business. Laws, rules and regulations attempting to subject communications and commerce conducted over the Internet to various indirect taxes are becoming more prevalent, both in the U.S. and internationally, and may impose additional burdens on us in the future. Increased regulation could negatively affect our business directly, as well as the businesses of our customers. Taxing authorities may impose indirect taxes on the Internet-related revenue we generate based on regulations currently being applied to similar, but not directly comparable, industries. There are many transactions and calculations where the ultimate indirect tax determination is uncertain. In addition, domestic and international indirect taxation laws are complex and subject to change. We may be audited in the future, which could result in changes to our indirect tax estimates. We continually evaluate those jurisdictions in which nexus exists, and believe we maintain adequate indirect tax accruals.

Our accrual for estimated indirect tax liabilities was $33.6 million and $31.5 million as of June 30, 2025 and December 31, 2024, respectively, reflecting our best estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations. Although we believe our indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits, litigation or settlements could be materially different than the amounts established for indirect tax contingencies.

13. Restructuring and Other Charges

Restructuring activities during the six months ended June 30, 2025 were immaterial. We recognized $6.0 million and $17.1 million of pre-tax restructuring charges in our statement of operations related to severance, employee benefits and equity-based compensation during the three and six months ended June 30, 2024, respectively.

The following table shows the total amount incurred and the accrued restructuring costs, which are recorded in accrued expenses and other current liabilities in our balance sheet, for severance and employee benefits:


	Accrued Restructuring Costs
Accrued restructuring costs as of December 31, 2024	$	0.8
Restructuring costs incurred	2.2
Amount paid	(3.0)
Accrued restructuring costs as of June 30, 2025	$	—

Accrued restructuring costs as of December 31, 2023	$	7.4
Restructuring costs incurred (1)	16.7
Amount paid	(17.6)
Accrued restructuring costs as of June 30, 2024	$	6.5

________________________________

(1)Excludes $0.8 million in equity-based compensation expense associated with our restructuring plans in 2024 which was recorded within additional paid-in capital.

14. Income Taxes

Our effective tax rate for the six months ended June 30, 2025 is 8.6%, which differs from the U.S. federal statutory rate primarily due to U.S. research and development tax credits, excess tax benefits related to equity-based compensation and a one-time benefit for the recognition of an uncertain tax position of $34.6 million.

We monitor the realizability of our deferred tax assets (DTAs) considering all relevant factors at each reporting period. As of June 30, 2025, based on the relevant weight of positive and negative evidence, including our ability to forecast future operating results, historical tax losses and our ability to utilize DTAs within the requisite carryforward periods, we do not maintain a valuation allowance on the majority of our U.S. federal and state DTAs.

We maintain valuation allowances on certain U.S., state and foreign carry forwards as we concluded they are not more likely than not to be realized.

Uncertain Tax Positions

The total amount of gross unrecognized tax benefits was $166.7 million as of June 30, 2025, of which $108.5 million, if fully recognized, would decrease our effective tax rate. Although we believe the amounts reflected in our tax returns substantially comply with applicable U.S. federal, state and foreign tax regulations, the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully challenged by a taxing authority could result in an adjustment to our provision or benefit for income taxes in the period in which a final determination is made.

During the six months ended June 30, 2025, we recognized a $34.6 million income tax benefit related to the recognition of an uncertain tax position in a foreign jurisdiction as a result of a favorable tax court ruling.

15. Income Per Share

Basic income per share is computed by dividing net income attributable to GoDaddy Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted income per share is computed giving effect to all potentially dilutive shares unless their effect is antidilutive.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted income per share is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Numerator:


Net income	$	199.9	$	146.3	$	419.4	$	547.8


Denominator:
Weighted-average shares of Class A common stock outstanding—basic	138,734		141,269		140,200		141,899
Effect of dilutive securities:

Stock options	373		448		391		449
RSUs, PSUs and ESPPs shares	2,301		2,927		2,796		2,973
Weighted-average shares of Class A Common stock outstanding—diluted	141,408		144,644		143,387		145,321

Net income per share of Class A common stock—basic	$	1.44	$	1.04	$	2.99	$	3.86



Net income per share of Class A common stock—diluted	$	1.41	$	1.01	$	2.92	$	3.77

The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income per share because the effect of including such potentially dilutive shares would have been antidilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024

RSUs, PSUs and ESPPs shares	102	443	69	292

During the three months ended June 30, 2024, we entered into ASRs to repurchase shares of our Class A common stock in exchange for an upfront payment of $245.0 million. No shares were initially received in connection with these ASRs. For purposes of computing earnings per share, the share repurchases, which settled in the third quarter of 2024, were reflected as a reduction to weighted-average shares of Class A common stock outstanding on the respective delivery dates.

16. Segment Information

We report our operating results through two reportable segments: A&C and Core.

Our chief operating decision maker (CODM), which, as of June 30, 2025, was our Chief Executive Officer, evaluates the performance of and allocates resources to our segments based on each segment's revenue and earnings before interest, taxes, depreciation and amortization (Segment EBITDA). Segment EBITDA is evaluated on a monthly basis by the CODM by monitoring actual results versus the annual plan. This comparison is performed to make strategic decisions regarding segment profitability, resource allocation, pricing strategies and cost optimization. Segment EBITDA is defined as segment revenues less costs and operating expenses, excluding depreciation and amortization, interest expense (net), provision or benefit for income taxes, equity-based compensation expense, acquisition-related costs, restructuring-related expenses and certain other items. We believe Segment EBITDA serves as a measure that assists our CODM and our investors in comparing our segments' performance on a consistent basis.

Our CODM does not use assets by segment to evaluate performance or allocate resources; therefore, we do not provide disclosure of assets by segment. See Note 2 for property, plant, and equipment, net as well as revenue disaggregated by geography.

The A&C and Core segments provide a view into the product-focused organization of our business and generate revenue as follows:

A&C primarily consists of sales of products containing proprietary software, notably our website building products, as well as our commerce products and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of our proprietary software products.
Core primarily consists of sales of domain registrations and renewals, aftermarket domain sales, website hosting products and website security products when not included in bundled offerings of our proprietary software products as well as sales of products not containing a software component.

There are no internal revenue transactions between our reportable segments.

Corporate overhead primarily includes general and administrative expenses and items not allocated to either segment as well as those costs specifically excluded from Segment EBITDA, our segment measure of profitability, such as depreciation and amortization, interest expense and income and provision or benefit for income taxes.

The following table presents our segment information for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024


A&C
Revenue	$	463.9	$	405.6	$	910.3	$	788.7
Other segment items(1)	(258.1)		(229.0)		(507.6)		(450.2)
Segment EBITDA	205.8		176.6		402.7		338.5
Core
Revenue	753.7		718.9		1,501.6		1,444.3
Other segment items(2)	(507.6)		(499.4)		(1,020.2)		(1,008.1)
Segment EBITDA	246.1		219.5		481.4		436.2

Total revenue	1,217.6		1,124.5		2,411.9		2,233.0
Total other segment items	(765.7)		(728.4)		(1,527.8)		(1,458.3)



Total Segment EBITDA	451.9		396.1		884.1		774.7
Unallocated corporate overhead	(70.2)		(64.4)		(138.0)		(130.0)
Depreciation and amortization	(30.6)		(33.1)		(61.4)		(70.3)
Equity-based compensation expense(3)	(81.0)		(76.2)		(161.4)		(147.2)
Interest expense, net of interest income	(29.5)		(34.5)		(57.1)		(69.2)

Restructuring and other(4)	(1.5)		(13.0)		(7.1)		(39.9)
Income before income taxes	239.1		174.9		459.1		318.1
Benefit (provision) for income taxes	(39.2)		(28.6)		(39.7)		229.7
Net income	$	199.9	$	146.3	$	419.4	$	547.8

_________________________________

(1)Other segment items in A&C are primarily composed of product license fees used in our third-party email and productivity solutions, payment processing fees, personnel costs excluding equity-based compensation, data center and systems infrastructure costs excluding depreciation, customer care and marketing costs. The CODM uses consolidated expense information to manage operations and is not regularly provided disaggregated other segment items.

(2)Other segment items in Core are primarily composed of domain registration fees, payment processing fees, costs associated with sales of aftermarket domains, hosting and security license fees, personnel costs excluding equity-based compensation, data center and systems infrastructure costs excluding depreciation, customer care and marketing costs. The CODM uses consolidated expense information to manage operations and is not regularly provided disaggregated other segment items.

(3)The six months ended June 30, 2024 exclude $0.8 million of equity-based compensation expense associated with our restructuring activities which is included within restructuring and other.

(4)In addition to restructuring and other in our statements of operations, other charges included are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, expenses incurred in relation to the refinancing of our long-term debt and incremental expenses associated with certain professional services.

17. Accumulated Other Comprehensive Income (Loss)

The following table presents AOCI activity in equity:


	Foreign Currency Translation Adjustments		Net Unrealized Gains (Losses) on Cash Flow Hedges(1)		Total AOCI
Balance as of December 31, 2024	$	(67.7)	$	200.2	$	132.5
Other comprehensive income (loss) before reclassifications	(31.1)		(31.8)		(62.9)
Amounts reclassified from AOCI	—		(33.9)		(33.9)
Other comprehensive income (loss)	(31.1)		(65.7)		(96.8)
Balance as of June 30, 2025	$	(98.8)	$	134.5	$	35.7


Balance as of December 31, 2023	$	(83.6)	$	195.0	$	111.4
Other comprehensive income (loss) before reclassifications	10.1		(52.9)		(42.8)
Amounts reclassified from AOCI	—		67.2		67.2
Other comprehensive income (loss)	10.1		14.3		24.4
Balance as of June 30, 2024	$	(73.5)	$	209.3	$	135.8

________________________________

(1)Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. See Note 10 for the effect on net income of amounts reclassified from AOCI related to our hedging relationships.

Previous: Cover and table of contents · Next: Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations