SCOTTSDALE, Ariz., Nov. 2, 2016 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY), the world's
largest cloud platform dedicated to small, independent ventures, today reported financial results for the third quarter ended
September 30, 2016.
"GoDaddy turned in another strong quarter, with results again exceeding the top-end of our guidance. I'm particularly
pleased with the advancements we've made in both new product introductions, and how we serve our global markets. We've
proven our ability to successfully scale the business, delivering compelling products and experiences that will continue to grow
our business over the long term," said Blake Irving, GoDaddy Chief Executive Officer.
Third Quarter Financial Highlights
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except customers in thousands and ARPU)
|
|
GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
472.1
|
|
|
$
|
411.1
|
|
|
14.8
|
%
|
|
$
|
1,362.0
|
|
|
$
|
1,181.9
|
|
|
15.2
|
%
|
|
Net income (loss)(1)
|
$
|
8.3
|
|
|
$
|
(5.2)
|
|
|
NM
|
|
|
$
|
(21.1)
|
|
|
$
|
(119.9)
|
|
|
NM
|
|
|
Net cash provided by operating activities
|
$
|
99.7
|
|
|
$
|
78.7
|
|
|
26.7
|
%
|
|
$
|
297.4
|
|
|
$
|
198.1
|
|
|
50.1
|
%
|
|
Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
Unlevered Free Cash Flow
|
$
|
95.6
|
|
|
$
|
79.7
|
|
|
19.9
|
%
|
|
$
|
280.1
|
|
|
$
|
241.8
|
|
|
15.8
|
%
|
|
Operating Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Bookings
|
$
|
534.3
|
|
|
$
|
475.6
|
|
|
12.3
|
%
|
|
$
|
1,630.7
|
|
|
$
|
1,450.2
|
|
|
12.4
|
%
|
|
Total customers at period end
|
14,547
|
|
|
13,572
|
|
|
7.2
|
%
|
|
14,547
|
|
|
13,572
|
|
|
7.2
|
%
|
|
ARPU
|
$
|
127
|
|
|
$
|
119
|
|
|
6.5
|
%
|
|
$
|
127
|
|
|
$
|
119
|
|
|
6.5
|
%
|
|
|
|
|
|
(1)
|
Net loss for the nine months ended September 30, 2015 includes $51.1
million of costs consisting of $29.7 million in termination payments made in connection with the completion of the IPO
and the $21.4 million loss on debt extinguishment.
|
- Total revenue of $472.1 million, up 14.8% year over year, or 16.4% on a constant currency
basis.
- Domains revenue of $236.6 million, up 10.0% year over year.
- Hosting and Presence revenue of $174.1 million, up 15.5% year over year.
- Business Applications revenue of $61.4 million, up 35.5% year over year.
- International revenue of $129.2 million, up 21.4% year over year, or 27.2% on a constant
currency basis.
- Total bookings of $534.3 million, up 12.3% year over year, or 13.1% on a constant currency
basis.
- Net income of $8.3 million, represented a positive swing versus a net loss of $5.2 million in the prior year.
- Net cash provided by operating activities of $99.7 million, up 26.7% year over year.
- Unlevered free cash flow of $95.6 million, up 19.9% year over year.
- Customers were 14.5 million at quarter end, up 7.2% year over year.
- Average revenue per user (ARPU) of $127, up 6.5% year over year.
Business Highlights
- Registered 1 millionth .UK domain in the United Kingdom. An estimated 25% of Britain's most popular domains are now registered through GoDaddy.
- Launched Domain Connect Initiative, making it easier for customers to connect their domain names to their web service of
choice, regardless of their domain name registrar.
- Acquired ManageWP to offer a single destination for best-in-class WordPress management and hosting.
- Launched WordPress Websites featuring an exclusive WordPress Quick Start Wizard that simplifies the website creation
process helping our customers get started quickly.
- Launched Email Archiving and Email Encryption add-on services for Office 365 users making it easier for small business
owners to transmit, store and protect valuable data, and simpler for those operating in regulated industries to remain
compliant.
- Joined a growing consortium of U.S. companies to help promote best practices and share ideas to eliminate the gender pay
gap.
Balance Sheet
At September 30, 2016, total cash, cash equivalents and short-term investments were $565.8
million, total debt was $1,075.3 million and net debt was $509.5
million.
Business Outlook
For the fourth quarter ending December 31, 2016, GoDaddy expects total revenue in the range of $483 - $487 million. For the full year ending December 31, 2016, GoDaddy expects total revenue in the
range of $1.845 - $1.849 billion.
For the full year 2016, GoDaddy expects unlevered free cash flow of about $350 million,
representing approximately 20% growth versus the $294 million in unlevered free cash generated in
2015.
In the third quarter, GoDaddy modified its reporting and guidance practices to ensure compliance with recent SEC
interpretations on the use of non-GAAP measures. As a result, GoDaddy transitioned away from its historical presentation of
Adjusted EBITDA. The table below shows the significant components of the historical presentation of Adjusted EBITDA, including
EBITDA excluding equity-based compensation as well as changes in key balance sheet items such as deferred revenue and prepaid and
accrued domain registry costs, to allow these components to be compared to GoDaddy's previously issued guidance and past results
for Adjusted EBITDA.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
(in millions, except customers in thousands and ARPU)
|
|
EBITDA excluding equity-based compensation
|
$
|
80.9
|
|
|
$
|
61.2
|
|
|
$
|
192.1
|
|
|
$
|
80.5
|
|
|
Change in deferred revenue
|
$
|
27.3
|
|
|
$
|
29.8
|
|
|
$
|
158.3
|
|
|
$
|
161.9
|
|
|
Change in prepaid and accrued registry costs
|
$
|
(1.6)
|
|
|
$
|
(4.0)
|
|
|
$
|
(25.9)
|
|
|
$
|
(32.8)
|
|
GoDaddy does not intend to provide guidance for or report Adjusted EBITDA going forward. GoDaddy intends to continue to report
the components of the measure formerly known as Adjusted EBITDA to allow comparison to previously issued guidance and past
results.
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (GAAP). We do not provide reconciliations from non-GAAP guidance to GAAP, because
projections of changes in individual balance sheet amounts are not possible without unreasonable effort, and presentation of such
reconciliations would imply an inappropriate degree of precision. Our reported results provide reconciliations of non-GAAP
financial measures to their nearest GAAP equivalents.
Quarterly Conference Call and Webcast
GoDaddy will host a conference call and webcast to discuss third quarter 2016 results at 5:00 p.m.
Eastern Time on November 2, 2016. To hear the call, dial (877) 201-0168 in the United
States or (647) 788-4901 from international locations, with passcode 92690648. A live webcast of the call, together with a
slide presentation including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest
comparable GAAP measures, will be available through GoDaddy's Investor Relations website at https://investors.godaddy.net. Following the call, a recorded replay of the
webcast will be available on the website.
GoDaddy Inc. uses its Investor Relations website at https://investors.godaddy.net as a means of disclosing material non-public information and for complying with its
disclosure obligations under Regulation FD. Accordingly, investors should monitor GoDaddy's Investor Relations website, in
addition to following press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
Forward-Looking Statements
This press release contains forward-looking statements which are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements are based on estimates and information available to us at the time of
this press release and are not guarantees of future performance. Statements in this release 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 such forward-looking statements. All statements other than statements of historical fact could be
deemed forward-looking statements, including, but not limited to: launches of new, or expansion of existing, products or
services; any statements 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 hiring expectations or international expansion
plans; any statements regarding integration of recent or pending acquisitions; any expectations regarding our future financial
results; 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 any previous
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; and developments in the economy, financial
markets and credit markets.
Additional risks and uncertainties that could affect GoDaddy's financial results are included under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Company's Annual
Report on Form 10-K for the year ended December 31, 2015, as amended, which is available on the
Company's website at https://investors.godaddy.net and on the SEC's
website at www.sec.gov. Additional information will also be set forth in other
filings that the Company makes with the SEC from time to time. All forward-looking statements in this press release are based on
information available to the Company as of the date 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 on which they were made.
Non-GAAP Financial Measures and Other Operating Metrics
In addition to our results determined in accordance with GAAP, this press release includes Total Bookings and ARPU, as
operating metrics, and financial measures defined as "non-GAAP financial measures" by the SEC including EBITDA Excluding
Equity-Based Compensation, Unlevered Free Cash Flow and Net Debt. These measures may be different from non-GAAP financial
measures used by other companies in our industry, as those other companies may calculate their non-GAAP financial measures
differently, particularly related to adjustments for acquisition accounting and non-recurring expenses.
We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and
enhancing an overall understanding of our past financial performance. The non-GAAP financial 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 GAAP equivalent is included in this release following the
financial statements. We use both GAAP and non-GAAP measures to evaluate and manage our operations.Total bookings. Total
bookings represents cash receipts from the sale of products to customers in a given period before giving effect to certain
adjustments, primarily net refunds granted in the period. Total bookings provides valuable insight into the 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
term of our customer contracts. We report total bookings without giving effect to refunds granted in the period because refunds
often occur in periods different from the period of sale for reasons unrelated to the marketing efforts leading to the initial
sale. Accordingly, by excluding net refunds, we believe total bookings reflects the effectiveness of our sales efforts in a given
period.
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 and end of the period. ARPU provides insight into our ability to sell additional products to
customers, though the impact to date has been muted due to our continued growth in total customers.
EBITDA Excluding Equity-Based Compensation. EBITDA excluding equity-based compensation is a supplemental
measure of our operating performance allowing management, investors and others to evaluate and compare our core
operating results and trends by removing the impact of our capital structure (interest expense from our outstanding
long-term debt), asset base (depreciation and amortization), tax consequences (tax provision and TRA liability) and
equity-based compensation. In addition to its use by management, we also believe it is a measure widely used by securities
analysts, investors and others to evaluate the financial performance of our company and other companies
in our industry. We calculate EBITDA excluding equity-based compensation as net income (loss) excluding
depreciation and amortization, interest expense (net), provision (benefit) for income taxes and adjustments to the TRA liability
and equity-based compensation expense. Other companies may calculate EBITDA excluding equity-based compensation differently;
therefore, our calculation may not be comparable to similarly titled measures of other companies in our industry.
Unlevered Free Cash Flow. Unlevered free cash flow is a supplemental measure of our liquidity used by management to
evaluate the amount of cash generated by our business prior to the impact of our capital structure and after tax distributions
required by Desert Newco LLC's limited liability company agreement and purchases of property and equipment, such as data center
and infrastructure investments, that can be used by us for strategic opportunities and strengthening our balance sheet. Unlevered
free cash flow excludes certain charges that will be settled in cash, such as payments for interest on our long-term debt,
acquisition and sponsor-related costs and tax distributions. Given our debt obligations, unlevered free cash flow does not
represent residual cash flow available for discretionary expenses.
Net Debt. We define net debt as gross debt less cash and cash equivalents and short-term investments. Gross debt
consists of the current portion of long-term debt plus long-term debt, unamortized original issue discounts and unamortized debt
issuance costs. We believe the presentation of net debt provides useful information to investors because our management reviews
net debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Furthermore,
certain analysts and debt rating agencies monitor our net debt as part of their assessments of our business.
About GoDaddy
GoDaddy powers the world's largest cloud platform dedicated to small, independent ventures. With more than 14 million
customers worldwide and over 63 million domain names under management, GoDaddy is the place people come to name their idea,
build a professional website, attract customers and manage their work. Our mission is to give our customers the tools, insights
and the people to transform their ideas and personal initiative into success. To learn more about the company,
visit www.GoDaddy.com.
|
GoDaddy
Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In millions, except share amounts which are reflected in thousands and per share
amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Domains
|
$
|
236.6
|
|
|
$
|
215.0
|
|
|
$
|
685.3
|
|
|
$
|
622.7
|
|
|
Hosting and presence
|
174.1
|
|
|
150.8
|
|
|
502.0
|
|
|
436.5
|
|
|
Business applications
|
61.4
|
|
|
45.3
|
|
|
174.7
|
|
|
122.7
|
|
|
Total revenue
|
472.1
|
|
|
411.1
|
|
|
1,362.0
|
|
|
1,181.9
|
|
|
Costs and operating expenses(1):
|
|
|
|
|
|
|
|
|
Cost of revenue (excluding depreciation and amortization)
|
169.2
|
|
|
144.0
|
|
|
485.7
|
|
|
420.9
|
|
|
Technology and development
|
72.3
|
|
|
67.3
|
|
|
214.2
|
|
|
201.2
|
|
|
Marketing and advertising
|
53.4
|
|
|
49.3
|
|
|
170.9
|
|
|
150.8
|
|
|
Customer care
|
59.8
|
|
|
54.8
|
|
|
183.6
|
|
|
167.2
|
|
|
General and administrative(2)
|
52.8
|
|
|
44.2
|
|
|
153.8
|
|
|
168.6
|
|
|
Depreciation and amortization
|
43.4
|
|
|
40.6
|
|
|
121.6
|
|
|
116.4
|
|
|
Total costs and operating expenses
|
450.9
|
|
|
400.2
|
|
|
1,329.8
|
|
|
1,225.1
|
|
|
Operating income (loss)
|
21.2
|
|
|
10.9
|
|
|
32.2
|
|
|
(43.2)
|
|
|
Interest expense
|
(14.4)
|
|
|
(14.6)
|
|
|
(43.0)
|
|
|
(54.7)
|
|
|
Tax receivable agreements liability adjustment
|
1.3
|
|
|
(0.6)
|
|
|
(9.4)
|
|
|
(0.6)
|
|
|
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
(21.4)
|
|
|
Other income (expense), net
|
(0.7)
|
|
|
—
|
|
|
(0.8)
|
|
|
0.7
|
|
|
Income (loss) before income taxes
|
7.4
|
|
|
(4.3)
|
|
|
(21.0)
|
|
|
(119.2)
|
|
|
Benefit (provision) for income taxes
|
0.9
|
|
|
(0.9)
|
|
|
(0.1)
|
|
|
(0.7)
|
|
|
Net income (loss)
|
8.3
|
|
|
(5.2)
|
|
|
(21.1)
|
|
|
(119.9)
|
|
|
Less: net income (loss) attributable to non-controlling
interests
|
3.5
|
|
|
(2.7)
|
|
|
(6.5)
|
|
|
(44.2)
|
|
|
Net income (loss) attributable to GoDaddy Inc.
|
$
|
4.8
|
|
|
$
|
(2.5)
|
|
|
$
|
(14.6)
|
|
|
$
|
(75.7)
|
|
|
Net income (loss) per share of Class A common
stock(3):
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.06
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.82)
|
|
|
Diluted
|
$
|
0.05
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.82)
|
|
|
Weighted-average shares of Class A common stock
outstanding(3):
|
|
|
|
|
|
|
|
|
Basic
|
83,733
|
|
|
64,999
|
|
|
77,170
|
|
|
56,153
|
|
|
Diluted
|
96,743
|
|
|
64,999
|
|
|
77,170
|
|
|
56,153
|
|
|
___________________________
(1) Costs and operating expenses include equity-based compensation expense as follows:
|
|
|
|
|
|
|
Technology and development
|
$
|
7.0
|
|
|
$
|
4.4
|
|
|
$
|
16.9
|
|
|
$
|
12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and advertising
|
2.3
|
|
|
1.5
|
|
|
5.8
|
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer care
|
1.6
|
|
|
0.9
|
|
|
3.0
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
6.6
|
|
|
3.2
|
|
|
14.6
|
|
|
9.4
|
|
|
|
|
(2)
|
General and administrative expenses for the nine months ended September 30,
2015 include $29.7 million of additional costs related to certain termination payments made in connection with the
completion of the IPO.
|
|
|
|
(3)
|
Amounts for periods prior to our initial public offering (IPO) have been
retrospectively adjusted to give effect to the pre-IPO organizational transactions. The prior period amounts do not
consider the 26,000 shares of Class A common stock sold in our IPO. As of September 30, 2016, we have a total of
165,334 shares of common stock outstanding, consisting of 86,413 shares of Class A common stock and 78,921 shares of
Class B common stock.
|
|
GoDaddy Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In millions, except share amounts which are reflected in thousands and per share amounts)
|
|
|
September 30,
|
|
December 31,
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
556.2
|
|
|
$
|
348.0
|
|
|
Short-term investments
|
9.6
|
|
|
4.5
|
|
|
Accounts and other receivables
|
10.8
|
|
|
4.8
|
|
|
Registry deposits
|
21.6
|
|
|
18.7
|
|
|
Prepaid domain name registry fees
|
311.1
|
|
|
292.6
|
|
|
Prepaid expenses and other current assets
|
31.3
|
|
|
25.3
|
|
|
Total current assets
|
940.6
|
|
|
693.9
|
|
|
Property and equipment, net
|
230.8
|
|
|
225.0
|
|
|
Prepaid domain name registry fees, net of current portion
|
171.8
|
|
|
163.7
|
|
|
Goodwill
|
1,678.1
|
|
|
1,663.4
|
|
|
Intangible assets, net
|
705.5
|
|
|
735.3
|
|
|
Other assets
|
6.6
|
|
|
12.1
|
|
|
Deferred tax assets
|
7.8
|
|
|
5.4
|
|
|
Total assets
|
$
|
3,741.2
|
|
|
$
|
3,498.8
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
63.2
|
|
|
$
|
39.4
|
|
|
Accrued expenses and other current liabilities
|
124.6
|
|
|
127.0
|
|
|
Payable to related parties for tax distributions
|
—
|
|
|
5.3
|
|
|
Deferred revenue
|
1,043.3
|
|
|
937.7
|
|
|
Long-term debt
|
4.1
|
|
|
4.2
|
|
|
Total current liabilities
|
1,235.2
|
|
|
1,113.6
|
|
|
Deferred revenue, net of current portion
|
528.4
|
|
|
478.5
|
|
|
Long-term debt, net of current portion
|
1,036.7
|
|
|
1,039.8
|
|
|
Payable to related parties pursuant to tax receivable agreements, net of
current portion
|
199.5
|
|
|
151.6
|
|
|
Other long-term liabilities
|
39.1
|
|
|
34.3
|
|
|
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;
86,413 and 67,083 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
|
0.1
|
|
|
0.1
|
|
|
Class B common stock, $0.001 par value - 500,000 shares authorized; 78,921
and 90,398 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
|
0.1
|
|
|
0.1
|
|
|
Additional paid-in capital
|
548.0
|
|
|
454.6
|
|
|
Accumulated deficit
|
(46.8)
|
|
|
(32.2)
|
|
|
Accumulated other comprehensive income
|
2.7
|
|
|
3.2
|
|
|
Total stockholders' equity attributable to GoDaddy Inc.
|
504.1
|
|
|
425.8
|
|
|
Non-controlling interests
|
198.2
|
|
|
255.2
|
|
|
Total stockholders' equity
|
702.3
|
|
|
681.0
|
|
|
Total liabilities and stockholders' equity
|
$
|
3,741.2
|
|
|
$
|
3,498.8
|
|
|
GoDaddy Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In millions)
|
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Operating activities
|
|
|
|
|
Net loss
|
$
|
(21.1)
|
|
|
$
|
(119.9)
|
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
121.6
|
|
|
116.4
|
|
|
Equity-based compensation
|
40.3
|
|
|
28.5
|
|
|
Loss on debt extinguishment
|
—
|
|
|
21.4
|
|
|
Other
|
13.4
|
|
|
7.5
|
|
|
Changes in operating assets and liabilities, net of amounts
acquired:
|
|
|
|
|
Registry deposits
|
(2.9)
|
|
|
(3.4)
|
|
|
Prepaid domain name registry fees
|
(26.6)
|
|
|
(32.5)
|
|
|
Deferred revenue
|
156.6
|
|
|
161.9
|
|
|
Other operating assets and liabilities
|
16.1
|
|
|
18.2
|
|
|
Net cash provided by operating activities
|
297.4
|
|
|
198.1
|
|
|
Investing activities
|
|
|
|
|
Purchases of short-term investments
|
(10.5)
|
|
|
(7.3)
|
|
|
Maturities of short-term investments
|
5.4
|
|
|
4.9
|
|
|
Business acquisitions, net of cash acquired
|
(57.9)
|
|
|
(30.7)
|
|
|
Purchases of intangible assets
|
—
|
|
|
(22.5)
|
|
|
Purchases of property and equipment, excluding improvements
|
(37.8)
|
|
|
(31.3)
|
|
|
Purchases of leasehold and building improvements
|
(5.0)
|
|
|
(3.0)
|
|
|
Other investing activities, net
|
—
|
|
|
1.1
|
|
|
Net cash used in investing activities
|
(105.8)
|
|
|
(88.8)
|
|
|
Financing activities
|
|
|
|
|
Proceeds received from:
|
|
|
|
|
Issuance of Class A common stock sold in IPO, net of offering
costs
|
—
|
|
|
482.4
|
|
|
Stock option and warrant exercises
|
45.9
|
|
|
1.2
|
|
|
Payments made for:
|
|
|
|
|
Distributions to holders of LLC Units
|
(10.8)
|
|
|
—
|
|
|
Repayment of senior note
|
—
|
|
|
(300.0)
|
|
|
Repayment of revolving credit loan
|
—
|
|
|
(75.0)
|
|
|
Repayment of term loan
|
(8.2)
|
|
|
(8.2)
|
|
|
Financing-related costs
|
—
|
|
|
(13.5)
|
|
|
Contingent consideration for business acquisitions
|
(1.5)
|
|
|
—
|
|
|
Capital leases and other financing obligations
|
(8.8)
|
|
|
(7.4)
|
|
|
Net cash provided by financing activities
|
16.6
|
|
|
79.5
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
(0.1)
|
|
|
Net increase in cash and cash equivalents
|
208.2
|
|
|
188.7
|
|
|
Cash and cash equivalents, beginning of period
|
348.0
|
|
|
139.0
|
|
|
Cash and cash equivalents, end of period
|
$
|
556.2
|
|
|
$
|
327.7
|
|
Reconciliation of Non-GAAP Financial Measures and Other Operating Metric
The following tables reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure and
other operating metric:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
Total Bookings:
|
|
|
|
|
|
|
|
|
Total revenue
|
$
|
472.1
|
|
|
$
|
411.1
|
|
|
$
|
1,362.0
|
|
|
$
|
1,181.9
|
|
|
Change in deferred revenue
|
27.3
|
|
|
29.8
|
|
|
158.3
|
|
|
161.9
|
|
|
Net refunds
|
35.4
|
|
|
34.3
|
|
|
108.8
|
|
|
104.8
|
|
|
Other
|
(0.5)
|
|
|
0.4
|
|
|
1.6
|
|
|
1.6
|
|
|
Total bookings
|
$
|
534.3
|
|
|
$
|
475.6
|
|
|
$
|
1,630.7
|
|
|
$
|
1,450.2
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
EBITDA Excluding Equity-Based Compensation:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
8.3
|
|
|
$
|
(5.2)
|
|
|
$
|
(21.1)
|
|
|
$
|
(119.9)
|
|
|
Interest expense, net of interest income
|
13.9
|
|
|
14.3
|
|
|
41.8
|
|
|
54.2
|
|
|
(Benefit) provision for income taxes and adjustments to the TRA
liability
|
(2.2)
|
|
|
1.5
|
|
|
9.5
|
|
|
1.3
|
|
|
Depreciation and amortization
|
43.4
|
|
|
40.6
|
|
|
121.6
|
|
|
116.4
|
|
|
EBITDA
|
63.4
|
|
|
51.2
|
|
|
151.8
|
|
|
52.0
|
|
|
Equity-based compensation expense
|
17.5
|
|
|
10.0
|
|
|
40.3
|
|
|
28.5
|
|
|
EBITDA excluding equity-based compensation
|
$
|
80.9
|
|
|
$
|
61.2
|
|
|
$
|
192.1
|
|
|
$
|
80.5
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue(1)
|
$
|
27.3
|
|
|
$
|
29.8
|
|
|
$
|
158.3
|
|
|
$
|
161.9
|
|
|
Change in prepaid and accrued registry costs(1)
|
$
|
(1.6)
|
|
|
$
|
(4.0)
|
|
|
$
|
(25.9)
|
|
|
$
|
(32.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In addition to EBITDA excluding
equity-based compensation, we also monitor the changes in deferred revenue and changes in the associated prepaid and
accrued registry costs to facilitate a supplemental comparison of our performance from period to period.
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
Unlevered Free Cash Flow:
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
$
|
99.7
|
|
|
$
|
78.7
|
|
|
$
|
297.4
|
|
|
$
|
198.1
|
|
|
Cash paid for interest
|
11.7
|
|
|
11.9
|
|
|
35.0
|
|
|
47.3
|
|
|
Cash paid for acquisition and sponsor-related costs
|
0.4
|
|
|
0.4
|
|
|
0.8
|
|
|
30.7
|
|
|
Capital expenditures
|
(16.2)
|
|
|
(11.3)
|
|
|
(42.8)
|
|
|
(34.3)
|
|
|
Cash paid for tax-related distributions
|
—
|
|
|
—
|
|
|
(10.3)
|
|
|
—
|
|
|
Unlevered free cash flow
|
$
|
95.6
|
|
|
$
|
79.7
|
|
|
$
|
280.1
|
|
|
$
|
241.8
|
|
|
|
|
September
30, 2016
|
|
(in millions)
|
|
Net Debt:
|
|
|
Current portion of long-term debt
|
$
|
4.1
|
|
|
Long-term debt
|
1,036.7
|
|
|
Unamortized original issue discounts on long-term debt
|
32.1
|
|
|
Unamortized debt issuance costs
|
2.4
|
|
|
Total debt
|
1,075.3
|
|
|
Less: Cash and cash equivalents
|
(556.2)
|
|
|
Less: Short-term investments
|
(9.6)
|
|
|
Net debt
|
$
|
509.5
|
|
|
|
|
Shares Outstanding
Shares of Class B common stock do not share in our
earnings and are not participating securities. Total shares of common stock outstanding are as follows:
|
|
|
September
30, 2016
|
|
September
30, 2015
|
|
|
|
|
|
(in thousands)
|
|
Shares Outstanding:
|
|
|
|
|
Class A common stock
|
86,413
|
|
|
65,263
|
|
|
Class B common stock
|
78,921
|
|
|
90,398
|
|
|
Total common stock outstanding
|
165,334
|
|
|
155,661
|
|
|
Effect of dilutive securities(1)
|
13,010
|
|
|
15,731
|
|
|
178,344
|
|
|
171,392
|
|
|
|
|
|
|
(1) In periods in which we have a net
loss, the impact of potentially dilutive securities is excluded from the calculation of earnings earnings per share
because the effect would be antidilutive.
|
© 2016 GoDaddy Inc. All Rights Reserved.
Logo - http://photos.prnewswire.com/prnh/20150330/195302LOGO
Source: GoDaddy Inc.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/godaddy-reports-continued-strong-growth-in-third-quarter-300356110.html
SOURCE GoDaddy Inc.