Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36904 | |
Entity Registrant Name | GoDaddy Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-5769934 | |
Entity Address, Address Line One | 2155 E. GoDaddy Way | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85284 | |
City Area Code | 480 | |
Local Phone Number | 505-8800 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | GDDY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001609711 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 140,824,771 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 305,740 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 329.2 | $ 774 |
Accounts and other receivables | 75.3 | 60.1 |
Prepaid domain name registry fees | 469.5 | 435.7 |
Prepaid expenses and other current assets | 325.3 | 312.8 |
Total current assets | 1,199.3 | 1,582.6 |
Noncurrent Assets | ||
Property and equipment, net | 198.7 | 225.6 |
Operating lease assets | 67.5 | 84.1 |
Prepaid domain name registry fees, net of current portion | 210 | 197.1 |
Goodwill | 3,523.4 | 3,536.9 |
Intangible assets, net | 1,187.5 | 1,252.2 |
Other assets | 112.8 | 95 |
Total assets | 6,499.2 | 6,973.5 |
Current liabilities: | ||
Accounts payable | 125.2 | 130.9 |
Accrued expenses and other current liabilities | 409.7 | 356.7 |
Deferred revenue | 2,094.7 | 1,954 |
Long-term debt | 18 | 18.2 |
Total current liabilities | 2,647.6 | 2,459.8 |
Noncurrent Liabilities | ||
Deferred revenue, net of current portion | 803.2 | 770.3 |
Long-term debt, net of current portion | 3,802.3 | 3,812.9 |
Operating lease liabilities, net of current portion | 97.2 | 116.5 |
Other long-term liabilities | 86.1 | 87.1 |
Deferred tax liabilities | 36.2 | 56.2 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional Paid in Capital | 2,170 | 1,912.6 |
Accumulated deficit | (3,315.3) | (2,422.6) |
Accumulated other comprehensive income | 168.9 | 178 |
Total stockholders' deficit attributable to GoDaddy Inc. | (976.3) | (331.8) |
Non-controlling interests | 2.9 | 2.5 |
Total stockholders' deficit | (973.4) | (329.3) |
Total liabilities and stockholders' deficit | 6,499.2 | 6,973.5 |
Class A Common Stock | ||
Stockholders' deficit: | ||
Common stock | 0.1 | 0.2 |
Class B Common Stock | ||
Stockholders' deficit: | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 141,989,000 | 153,830,000 |
Common stock, shares outstanding (in shares) | 141,989,000 | 153,830,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 307,000 | 312,000 |
Common stock, shares outstanding (in shares) | 307,000 | 312,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue: | |||||
Revenue | $ 1,069.7 | $ 1,033.2 | $ 3,153.8 | $ 3,051.4 | |
Costs and operating expenses | |||||
Cost of revenue (excluding depreciation and amortization) | [1] | 396.9 | 374.3 | 1,171.4 | 1,105 |
Technology and development | [1] | 201.6 | 199.5 | 635.8 | 587.7 |
Marketing and advertising | [1] | 86.4 | 100.4 | 268.3 | 317.4 |
Customer care | [1] | 75.7 | 74 | 230.2 | 230.6 |
General and administrative | [1] | 91.6 | 101.6 | 278.4 | 286.9 |
Restructuring and other | [1] | 9.8 | 5.2 | 79.6 | 14.8 |
Depreciation and amortization | [1] | 40.6 | 48.5 | 132.6 | 145.1 |
Total costs and operating expenses | [1] | 902.6 | 903.5 | 2,796.3 | 2,687.5 |
Operating income | 167.1 | 129.7 | 357.5 | 363.9 | |
Interest expense | (44) | (35.6) | (135.4) | (104.1) | |
Loss on debt extinguishment | (1.5) | 0 | (1.5) | 0 | |
Other income (expense), net | 6.3 | 3.1 | 35.7 | 0.8 | |
Income before income taxes | 127.9 | 97.2 | 256.3 | 260.6 | |
Benefit (provision) for income taxes | 3.1 | 2.8 | 5.2 | (1.5) | |
Net income | 131 | 100 | 261.5 | 259.1 | |
Less: net income attributable to non-controlling interests | 0.3 | 0.2 | 0.6 | 0.5 | |
Net income attributable to GoDaddy Inc. | 130.7 | 99.8 | 260.9 | 258.6 | |
Applications & commerce | |||||
Revenue: | |||||
Revenue | 363.3 | 326 | 1,053 | 946.3 | |
Core platform | |||||
Revenue: | |||||
Revenue | $ 706.4 | $ 707.2 | $ 2,100.8 | $ 2,105.1 | |
Class A Common Stock | |||||
Net income attributable to GoDaddy Inc. per share of Class A common stock: | |||||
Basic (in USD per share) | $ 0.90 | $ 0.64 | $ 1.73 | $ 1.61 | |
Diluted (in USD per share) | $ 0.89 | $ 0.63 | $ 1.71 | $ 1.59 | |
Weighted-average shares of Class A common stock outstanding: | |||||
Basic (in shares) | 145,484 | 156,393 | 150,614 | 160,150 | |
Diluted (in shares) | 147,291 | 158,418 | 153,303 | 162,665 | |
[1] Costs and operating expenses include equity-based compensation expense as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cost of revenue $ 0.3 $ 0.4 $ 1.1 $ 1.1 Technology and development 42.2 34.4 123.2 102.4 Marketing and advertising 7.1 7.2 21.0 21.7 Customer care 6.1 4.9 18.0 14.6 General and administrative 20.5 18.5 62.0 53.5 Restructuring and other $ — $ — $ 2.3 $ — Total equity-based compensation expense $ 76.2 $ 65.4 $ 227.6 $ 193.3 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity-based compensation expense | $ 76.2 | $ 65.4 | $ 227.6 | $ 193.3 |
Cost of revenue | ||||
Equity-based compensation expense | 0.3 | 0.4 | 1.1 | 1.1 |
Technology and development | ||||
Equity-based compensation expense | 42.2 | 34.4 | 123.2 | 102.4 |
Marketing and advertising | ||||
Equity-based compensation expense | 7.1 | 7.2 | 21 | 21.7 |
Customer care | ||||
Equity-based compensation expense | 6.1 | 4.9 | 18 | 14.6 |
General and administrative | ||||
Equity-based compensation expense | 20.5 | 18.5 | 62 | 53.5 |
Restructuring and other | ||||
Equity-based compensation expense | $ 0 | $ 0 | $ 2.3 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 131 | $ 100 | $ 261.5 | $ 259.1 | |
Foreign exchange forward contracts gain (loss), net | 8.7 | 24.2 | (7.2) | 48 | |
Unrealized swap gain (loss), net | [1] | 7.8 | 77.7 | 2 | 216.7 |
Change in foreign currency translation adjustment | (9.9) | 5.4 | (3.9) | (19.9) | |
Comprehensive income | 137.6 | 207.3 | 252.4 | 503.9 | |
Less: comprehensive income attributable to non-controlling interests | 0.3 | 0.4 | 0.6 | 1 | |
Comprehensive income attributable to GoDaddy Inc. | $ 137.3 | $ 206.9 | $ 251.8 | $ 502.9 | |
[1] Components of OCI are net of the tax effects reflected below: Unrealized swap gain (loss), net — — — (2.5) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized swap gain (loss), net | $ 0 | $ 0 | $ 0 | $ (2.5) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficit (unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non- Controlling Interests | |
Beginning balance (in shares) at Dec. 31, 2021 | 166,901 | 320 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 83.2 | $ 0.2 | $ 0 | $ 1,594.7 | $ (1,474.6) | $ (38.6) | $ 1.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 68.6 | 68.4 | 0.2 | |||||||
Equity-based compensation, including amounts capitalized | 62.2 | 62.2 | ||||||||
Stock option exercises (in shares) | 202 | |||||||||
Stock option exercises | 8.5 | 8.5 | ||||||||
Repurchases of Class A common stock (in shares) | (6,532) | |||||||||
Repurchases of Class A common stock | (750.2) | (750.2) | ||||||||
Impact of derivatives, net | 93.1 | 93.1 | ||||||||
Change in foreign currency translation adjustment | (34.3) | (34.3) | ||||||||
Vesting of restricted stock units and other (in shares) | 1,115 | 8 | ||||||||
Vesting of restricted stock units and other | 0.2 | 0.2 | (0.1) | 0.1 | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 161,686 | 312 | ||||||||
Ending balance at Mar. 31, 2022 | (468.7) | $ 0.2 | $ 0 | 1,665.6 | (2,156.4) | 20.1 | 1.8 | |||
Beginning balance (in shares) at Dec. 31, 2021 | 166,901 | 320 | ||||||||
Beginning balance at Dec. 31, 2021 | 83.2 | $ 0.2 | $ 0 | 1,594.7 | (1,474.6) | (38.6) | 1.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 259.1 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | 155,704 | 312 | ||||||||
Ending balance at Sep. 30, 2022 | (276) | $ 0.2 | $ 0 | 1,827.8 | (2,312.1) | 205.7 | 2.4 | |||
Beginning balance (in shares) at Mar. 31, 2022 | 161,686 | 312 | ||||||||
Beginning balance at Mar. 31, 2022 | (468.7) | $ 0.2 | $ 0 | 1,665.6 | (2,156.4) | 20.1 | 1.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 90.5 | 90.4 | 0.1 | |||||||
Equity-based compensation, including amounts capitalized | 67.5 | 67.5 | ||||||||
Stock option exercises (in shares) | 158 | |||||||||
Stock option exercises | 4.9 | 4.9 | ||||||||
Repurchases of Class A common stock (in shares) | (6,059) | |||||||||
Repurchases of Class A common stock | (236.3) | (236.3) | ||||||||
Issuance of Class A common stock under Employee Stock Purchase Plan (ESPP) (in shares) | 302 | |||||||||
Issuance of Class A common stock under Employee Stock Purchase Plan (ESPP) | 18.4 | 18.4 | ||||||||
Impact of derivatives, net | 69.7 | 69.7 | ||||||||
Change in foreign currency translation adjustment | 9 | 9 | ||||||||
Vesting of restricted stock units and other (in shares) | 458 | |||||||||
Vesting of restricted stock units and other | (0.3) | (0.1) | (0.2) | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 156,545 | 312 | ||||||||
Ending balance at Jun. 30, 2022 | (445.3) | $ 0.2 | $ 0 | 1,756.3 | (2,302.3) | 98.6 | 1.9 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 100 | 99.8 | 0.2 | |||||||
Equity-based compensation, including amounts capitalized | 66.1 | 66.1 | ||||||||
Stock option exercises (in shares) | 138 | |||||||||
Stock option exercises | 5.4 | 5.5 | (0.1) | |||||||
Repurchases of Class A common stock (in shares) | (1,466) | |||||||||
Repurchases of Class A common stock | (109.6) | (109.6) | ||||||||
Impact of derivatives, net | 101.9 | 101.9 | ||||||||
Change in foreign currency translation adjustment | 5.4 | 5.4 | ||||||||
Vesting of restricted stock units and other (in shares) | 487 | |||||||||
Vesting of restricted stock units and other | 0.1 | (0.1) | (0.2) | 0.4 | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 155,704 | 312 | ||||||||
Ending balance at Sep. 30, 2022 | (276) | $ 0.2 | $ 0 | 1,827.8 | (2,312.1) | 205.7 | 2.4 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 153,830 | 312 | 153,830 | 312 | ||||||
Beginning balance at Dec. 31, 2022 | (329.3) | $ 0.2 | $ 0 | 1,912.6 | (2,422.6) | 178 | 2.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 47.4 | 47.3 | 0.1 | |||||||
Equity-based compensation, including amounts capitalized | 74.5 | 74.5 | ||||||||
Stock option exercises (in shares) | 132 | |||||||||
Stock option exercises | 3.2 | 3.2 | ||||||||
Repurchases of Class A common stock (in shares) | (1,553) | |||||||||
Repurchases of Class A common stock | (113.9) | (113.9) | ||||||||
Impact of derivatives, net | (39.5) | (39.5) | ||||||||
Change in foreign currency translation adjustment | 2.1 | 2.1 | ||||||||
Vesting of restricted stock units and other (in shares) | 1,705 | 5 | ||||||||
Vesting of restricted stock units and other | 0 | 0.2 | (0.1) | 0.1 | (0.2) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 154,114 | 307 | ||||||||
Ending balance at Mar. 31, 2023 | (355.5) | $ 0.2 | $ 0 | 1,990.5 | (2,489.3) | 140.7 | 2.4 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 153,830 | 312 | 153,830 | 312 | ||||||
Beginning balance at Dec. 31, 2022 | (329.3) | $ 0.2 | $ 0 | 1,912.6 | (2,422.6) | 178 | 2.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 261.5 | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | 141,989 | 307 | 141,989 | 307 | ||||||
Ending balance at Sep. 30, 2023 | (973.4) | $ 0.1 | $ 0 | 2,170 | (3,315.3) | 168.9 | 2.9 | |||
Beginning balance (in shares) at Mar. 31, 2023 | 154,114 | 307 | ||||||||
Beginning balance at Mar. 31, 2023 | (355.5) | $ 0.2 | $ 0 | 1,990.5 | (2,489.3) | 140.7 | 2.4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 83.1 | 82.9 | 0.2 | |||||||
Equity-based compensation, including amounts capitalized | 78 | 78 | ||||||||
Stock option exercises (in shares) | 115 | |||||||||
Stock option exercises | 1.5 | 1.6 | (0.1) | |||||||
Repurchases of Class A common stock (in shares) | [1] | (7,019) | ||||||||
Repurchases of Class A common stock | [1] | (511.6) | $ (0.1) | (511.5) | ||||||
Issuance of Class A common stock under Employee Stock Purchase Plan (ESPP) (in shares) | 299 | |||||||||
Issuance of Class A common stock under Employee Stock Purchase Plan (ESPP) | 18.2 | 18.2 | ||||||||
Impact of derivatives, net | 17.8 | 17.8 | ||||||||
Change in foreign currency translation adjustment | 3.9 | 3.9 | ||||||||
Vesting of restricted stock units and other (in shares) | 784 | |||||||||
Vesting of restricted stock units and other | 0.1 | (0.1) | 0.1 | 0.1 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 148,293 | 307 | ||||||||
Ending balance at Jun. 30, 2023 | (664.5) | $ 0.1 | $ 0 | 2,088.2 | (2,917.8) | 162.4 | 2.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Excised tax on share repurchases | 3.8 | |||||||||
Net income | 131 | 130.7 | 0.3 | |||||||
Equity-based compensation, including amounts capitalized | 76.7 | 76.7 | ||||||||
Stock option exercises (in shares) | 59 | |||||||||
Stock option exercises | 4.9 | 4.9 | ||||||||
Repurchases of Class A common stock (in shares) | [1] | (7,166) | ||||||||
Repurchases of Class A common stock | [1] | (528.2) | (528.2) | |||||||
Impact of derivatives, net | 16.5 | 16.5 | ||||||||
Change in foreign currency translation adjustment | (9.9) | (9.9) | ||||||||
Vesting of restricted stock units and other (in shares) | 803 | |||||||||
Vesting of restricted stock units and other | 0.1 | 0.2 | (0.1) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 141,989 | 307 | 141,989 | 307 | ||||||
Ending balance at Sep. 30, 2023 | (973.4) | $ 0.1 | $ 0 | $ 2,170 | $ (3,315.3) | $ 168.9 | $ 2.9 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Excised tax on share repurchases | $ 4.6 | |||||||||
[1]Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $4.6 million. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Operating activities | |||
Net income | $ 261.5 | $ 259.1 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | [1] | 132.6 | 145.1 |
Equity-based compensation expense | 227.6 | 193.3 | |
(Gain) loss on derivative instruments | (9.2) | 21.7 | |
Non-cash restructuring charges | 0 | 10.4 | |
Loss on debt extinguishment | 1.5 | 0 | |
Loss on dispositions | 16.8 | 0 | |
Other | 16.5 | 34.4 | |
Changes in operating assets and liabilities, net of amounts acquired: | |||
Prepaid domain name registry fees | (47.3) | (30.3) | |
Deferred revenue | 173.4 | 132.9 | |
Other operating assets and liabilities | (23.5) | 5.1 | |
Net cash provided by operating activities | 749.9 | 771.7 | |
Investing activities | |||
Business acquisitions, net of cash acquired | 0 | (72.5) | |
Purchases of intangible assets | (35.4) | (0.4) | |
Net proceeds received from dispositions | 12.4 | 0 | |
Purchases of property and equipment | (38) | (42.6) | |
Other investing activities | (0.4) | 0 | |
Net cash used in investing activities | (61.4) | (115.5) | |
Proceeds received from: | |||
Issuance of term loans | 1,759.9 | 0 | |
Stock option exercises | 9.6 | 18.8 | |
Issuance of Class A common stock under ESPP | 18.2 | 18.4 | |
Payments made for: | |||
Repurchases of Class A common stock | (1,133.2) | (1,090.5) | |
Repayment of term loans | (1,780) | (24.4) | |
Other financing obligations | (7.8) | (3.3) | |
Net cash used in financing activities | (1,133.3) | (1,081) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | (4.7) | |
Net decrease in cash and cash equivalents | (444.8) | (429.5) | |
Cash and cash equivalents, beginning of period | 774 | 1,255.7 | |
Cash and cash equivalents, end of period | 329.2 | 826.2 | |
Cash paid during the period for: | |||
Interest on long-term debt, including impact of interest rate swaps | 128.3 | 90.7 | |
Income taxes, net of refunds received | 7.2 | 9.3 | |
Amounts included in the measurement of operating lease liabilities | 34 | 39.4 | |
Supplemental disclosure of non-cash transactions | |||
Operating lease assets obtained in exchange for operating lease liabilities | 8.4 | 10.3 | |
Accrued purchases of property and equipment at period end | 1 | 5.5 | |
Share repurchases not yet settled | $ 17.9 | $ 5.6 | |
[1] Costs and operating expenses include equity-based compensation expense as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cost of revenue $ 0.3 $ 0.4 $ 1.1 $ 1.1 Technology and development 42.2 34.4 123.2 102.4 Marketing and advertising 7.1 7.2 21.0 21.7 Customer care 6.1 4.9 18.0 14.6 General and administrative 20.5 18.5 62.0 53.5 Restructuring and other $ — $ — $ 2.3 $ — Total equity-based compensation expense $ 76.2 $ 65.4 $ 227.6 $ 193.3 |
Organization and Background
Organization and Background | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background Organization We are the sole managing member of Desert Newco, and as a result, we consolidate its financial results and report non-controlling interests representing the economic interests held by other members. The calculation of non-controlling interests excludes any net income attributable directly to GoDaddy Inc. As of September 30, 2023, we owned approximately 99.8% of Desert Newco. 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, 2023. 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, 2022 (the 2022 Form 10-K). 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Property and Equipment Property and equipment, net by geography was as follows: September 30, 2023 December 31, 2022 U.S. $ 155.9 $ 167.5 France 22.5 28.8 All other international 20.3 29.3 $ 198.7 $ 225.6 No other 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, and were as follows: Equity Investments Equity investments as of December 31, 2022 $ 40.5 Fair market value adjustments (1) 14.4 Impairment losses (1) (2.3) Additional investments 0.5 Equity investments as of September 30, 2023 $ 53.1 _________________________________ (1) Fair market value adjustments and impairment losses are recorded in other income (expense), net. Revenue Recognition Disaggregated Revenue Revenue by major product type was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Applications and commerce $ 363.3 $ 326.0 $ 1,053.0 $ 946.3 Core platform: domains 508.2 494.0 1,493.0 1,462.9 Core platform: other 198.2 213.2 607.8 642.2 $ 1,069.7 $ 1,033.2 $ 3,153.8 $ 3,051.4 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 U.S. $ 724.2 $ 700.6 $ 2,126.6 $ 2,058.2 International 345.5 332.6 1,027.2 993.2 $ 1,069.7 $ 1,033.2 $ 3,153.8 $ 3,051.4 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 Fees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amortization expense of such asset was $194.4 million and $180.3 million for the three months ended September 30, 2023 and 2022, respectively and was $571.6 million and $532.0 million for the nine months ended September 30, 2023 and 2022, respectively. Restructuring and Other Restructuring and other primarily represents: (i) charges related to the restructuring activities implemented in the first and third quarters of 2023, which were undertaken to reduce future operating expenses and improve cash flows through a combination of reductions in force and the sale of certain assets and liabilities of our hosting business within our Core segment; and (ii) a charge incurred in the second quarter of 2023 related to the termination of a revenue sharing agreement. See Note 13 for further discussion. Fair Value Measurements The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Time deposits $ 71.0 — — $ 71.0 Derivative assets — 219.1 — 219.1 Total assets $ 71.0 $ 219.1 $ — $ 290.1 Liabilities: Derivative liabilities $ — $ 1.2 $ — $ 1.2 Total liabilities $ — $ 1.2 $ — $ 1.2 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Commercial paper $ — $ 120.0 $ — $ 120.0 Time deposits 347.3 — — 347.3 Derivative assets — 218.5 — 218.5 Total assets $ 347.3 $ 338.5 $ — $ 685.8 Liabilities: Derivative liabilities $ — $ 4.9 $ — $ 4.9 Total liabilities $ — $ 4.9 $ — $ 4.9 We have no other material assets or liabilities measured at fair value on a recurring basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes changes in our goodwill balance by segment: A&C Core Total Balance at December 31, 2022 $ 1,497.0 $ 2,039.9 $ 3,536.9 Impact of foreign currency translation (2.6) (3.7) (6.3) Less: goodwill related to disposition of businesses — (3.3) (3.3) Other adjustments — (3.9) (3.9) Balance at September 30, 2023 $ 1,494.4 $ 2,029.0 $ 3,523.4 Intangible assets, net are summarized as follows: September 30, 2023 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 240.8 n/a 240.8 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 446.4 $ (326.3) 120.1 Developed technology 243.4 (196.7) 46.7 Trade names and other 102.5 (60.3) 42.2 $ 1,770.8 $ (583.3) $ 1,187.5 December 31, 2022 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 During the nine months ended September 30, 2023, we completed two purchases of indefinite-lived domain portfolio intangible assets and related finite-lived customer-related intangible assets for a total of $35.4 million in cash and a variable earn-out of up to $4.0 million. Amortization expense was $24.0 million and $31.8 million for the three months ended September 30, 2023 and 2022, respectively, and was $82.8 million and $96.7 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the weighted-average remaining amortization period for amortizable intangible assets was 30 months for customer-related, 26 months for developed technology and 47 months for trade names and other, and was 33 months in total. Based on the balance of finite-lived intangible assets as of September 30, 2023, expected future amortization expense is as follows: Year Ending December 31: 2023 (remainder of) $ 21.8 2024 81.3 2025 73.7 2026 24.6 2027 4.4 Thereafter 3.2 $ 209.0 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In August 2023, our board of directors approved the repurchase of up to an additional $1,000.0 million of our Class A common stock. Such approval was in addition to the amount available for repurchases under prior approvals of our board of directors, such that our total approved authority under the program is $4,000.0 million of shares of our Class A common stock through 2025. During the nine months ended September 30, 2023, we repurchased a total of 15,738 shares of our Class A common stock in the open market, which were retired upon repurchase, for an aggregate purchase price of $1,145.3 million. As of September 30, 2023, we had $1,554.6 million of remaining authorization available for repurchases. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: September 30, 2023 December 31, 2022 Derivative assets $ 219.1 $ 218.5 Prepaid software and maintenance expenses 38.0 29.5 Registry deposits 33.9 41.0 Usage-based prepaid expenses (1) 12.9 10.6 Other 21.4 13.2 $ 325.3 $ 312.8 _________________________________ (1) Usage-based prepaid expenses include various cost of revenue, marketing, rent and other prepaid commitments that are amortized as the funds are used. |
Equity-Based Compensation Plans
Equity-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation Plans | Equity-Based Compensation Plans We have granted stock options at exercise prices equal to the fair market value of our Class A common stock on the grant date. We have granted both stock options and restricted stock awards (RSUs) vesting solely upon the continued service of the recipient as well as performance-based awards (PSUs) with vesting based on either (i) our achievement of financial targets or (ii) our relative total stockholder return (TSR) as compared to an index of public internet companies. The following table summarizes stock option activity: Number of Weighted- Outstanding at December 31, 2022 1,426 44.38 Exercised (306) 31.28 Forfeited (17) 70.64 Outstanding at September 30, 2023 1,103 47.64 Vested at September 30, 2023 1,097 47.49 The following table summarizes stock award activity: Number of Outstanding at December 31, 2022 7,632 Granted: RSUs 3,394 Granted: TSR-based PSUs 264 TSR-based PSU achievement above target 91 Vested (3,287) Forfeited (796) Outstanding at September 30, 2023 (1) 7,298 _________________________________ (1) The balance of outstanding awards is comprised of the following: Number of Weighted-Average Grant-Date Fair Value Per Share ($) RSUs 6,514 78.35 TSR-based PSUs 759 119.56 Financial-based PSUs 25 77.23 Outstanding at September 30, 2023 7,298 |
Deferred Revenue
Deferred Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Deferred Revenue Deferred revenue consisted of the following: September 30, 2023 December 31, 2022 Current: A&C $ 692.9 $ 622.1 Core 1,401.8 1,331.9 $ 2,094.7 $ 1,954.0 Noncurrent: A&C $ 173.7 $ 173.1 Core 629.5 597.2 $ 803.2 $ 770.3 The increase in deferred revenue is primarily driven by payments received in advance of satisfying our performance obligations, offset by $438.9 million and $1,789.2 million of revenue recognized during the three and nine months ended September 30, 2023, respectively, which was included in deferred revenue as of December 31, 2022. Deferred revenue as of September 30, 2023 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 2023 2024 2025 2026 2027 Thereafter Total A&C $ 284.1 $ 447.5 $ 96.8 $ 26.3 $ 6.8 $ 5.1 $ 866.6 Core 517.6 994.9 270.2 109.4 61.1 78.1 2,031.3 $ 801.7 $ 1,442.4 $ 367.0 $ 135.7 $ 67.9 $ 83.2 $ 2,897.9 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: September 30, 2023 December 31, 2022 Accrued payroll and employee benefits $ 131.3 $ 116.3 Tax-related accruals 47.8 42.8 Accrued legal and professional 32.7 34.3 Current portion of operating lease liabilities 30.6 33.3 Share repurchases not yet settled 17.9 5.8 Accrued marketing and advertising 17.5 13.6 Accrued acquisition-related expenses and acquisition consideration payable 17.2 26.2 Accrued restructuring costs 10.1 — Share repurchases excise tax payable 8.4 — Other 96.2 84.4 $ 409.7 $ 356.7 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: Maturity Date September 30, 2023 December 31, 2022 2027 Term Loans (effective interest rate of 7.3% at September 30, 2023 and 4.3% at December 31, 2022) August 10, 2027 $ 725.6 $ 731.3 2029 Term Loans (effective interest rate of 8.4% at September 30, 2023 and 4.1% at December 31, 2022) November 10, 2029 1,756.8 1,770.0 2027 Senior Notes (effective interest rate of 5.5% at September 30, 2023 and 5.4% at December 31, 2022) December 1, 2027 600.0 600.0 2029 Senior Notes (effective interest rate of 3.6% at September 30, 2023 and 3.6% at December 31, 2022) March 1, 2029 800.0 800.0 Revolver November 10, 2027 — — Total 3,882.4 3,901.3 Less: unamortized original issue discount and debt issuance costs (1) (62.1) (70.2) Less: current portion of long-term debt (18.0) (18.2) $ 3,802.3 $ 3,812.9 _________________________________ (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 2022 Form 10-K, our secured credit agreement (the Credit Facility) includes two tranches of term loans (the 2027 Term Loans and the 2029 Term Loans) and a revolving credit facility (the Revolver). A portion of the term loans is hedged by interest rate swap arrangements, as discussed in Note 10. In May 2023, we entered into an amendment to the Credit Facility to replace LIBOR on our 2027 Term Loans with the Secured Overnight Financing Rate (SOFR), beginning in July 2023. These borrowings bear interest at a rate equal to, at our option, either (a) SOFR for an interest period of one month plus an initial margin of 2.0% per annum or (b) an initial margin of 1.0% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) SOFR for an interest period of one month plus 1.0%. Fees incurred in conjunction with this amendment were not material. In July 2023, we entered into an amendment to the Credit Facility to provide for a new tranche of term loans maturing in 2029 (the 2029 Term Loans), the proceeds of which were used to refinance our existing term loans maturing in 2029. Pursuant to this amendment, these loans were issued at par and bear interest at a rate equal to, at our option, either (a) SOFR for an interest period of one month plus an initial margin of 2.5% per annum or (b) an initial margin of 1.5% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) SOFR for an interest period of one month plus 1.0%. In conjunction with this refinancing, aggregate fees paid to lenders of $1.2 million were recorded as additional discount, and we recognized a loss on debt extinguishment of $1.5 million. As of September 30, 2023, we had $999.2 million available for borrowing under the Revolver as $0.8 million has been used to secure the issuance of standby letters of credit. We were not in violation of any covenants of the Credit Facility as of September 30, 2023. Senior Notes As described in our 2022 Form 10-K, we have completed two offerings of senior notes (the 2027 Senior Notes and the 2029 Senior Notes). As of September 30, 2023, we were not in violation of any covenants of the senior notes. 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 September 30, 2023: 2027 Term Loans $ 725.6 2029 Term Loans $ 1,759.0 2027 Senior Notes $ 566.1 2029 Senior Notes $ 673.2 Future Debt Maturities Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of September 30, 2023 were as follows: Year Ending December 31: 2023 (remainder of) $ 6.3 2024 25.1 2025 25.1 2026 25.1 2027 1,318.9 Thereafter 2,481.9 $ 3,882.4 |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | 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) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Cash flow hedges: Foreign exchange forward contracts $ 479.9 $ 364.7 $ 7.8 $ 9.4 $ 1.2 $ 2.0 Cross-currency swaps (1) 538.5 549.7 10.3 15.8 — 2.2 Interest rate swaps 1,964.9 1,980.5 187.7 173.0 — — Net investment hedges: Cross-currency swaps (1) 690.3 704.6 13.3 20.3 — 0.7 Total hedges $ 3,673.6 $ 3,599.5 $ 219.1 $ 218.5 $ 1.2 $ 4.9 _________________________________ (1) The notional values of the cross-currency swaps have been translated from Euros to U.S. dollars at the foreign currency rates in effect of approximately 1.06 and 1.07 as of September 30, 2023 and December 31, 2022, respectively. (2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash flow hedges: Foreign exchange forward contracts (1) $ 8.7 $ 24.2 $ (7.2) $ 48.0 Cross-currency swaps (7.8) (0.5) (12.4) 42.9 Interest rate swaps 15.6 78.2 14.4 171.3 Net investment hedges: Cross-currency swaps 12.3 43.7 (7.0) 65.3 Total hedges $ 28.8 $ 145.6 $ (12.2) $ 327.5 _________________________________ (1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. The following tables summarize the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 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 $ 3.8 $ — $ — $ 2.3 $ — $ — Cross-currency swaps: Reclassified from AOCI into income (1) — 2.4 17.4 — 2.7 35.2 Interest rate swaps: Reclassified from AOCI into income — 17.8 — — 2.4 — Net investment hedges: Cross-currency swaps: Reclassified from AOCI into income — 3.1 — — 3.6 — Total hedges $ 3.8 $ 23.3 $ 17.4 $ 2.3 $ 8.7 $ 35.2 _________________________________ (1) The amounts reflected in other income (expense), net include $(17.4) million and $(34.9) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by cross-currency swaps during the three months ended September 30, 2023 and 2022, respectively. Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 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 $ 13.5 $ — $ — $ 0.9 $ — $ — Cross-currency swaps: Reclassified from AOCI into income (1) — 7.2 6.8 — 12.3 88.0 Interest rate swaps: Reclassified from AOCI into income — 48.3 — — (13.6) — Net investment hedges: Cross-currency swaps: Reclassified from AOCI into income — 9.4 — — 7.9 — Total hedges $ 13.5 $ 64.9 $ 6.8 $ 0.9 $ 6.6 $ 88.0 _________________________________ (1) The amounts reflected in other income (expense), net include $(6.9) million and $(87.8) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by cross-currency swaps during the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, we estimate that $102.2 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 Foreign Exchange Forward Contracts From time-to-time, we may enter into foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in foreign currencies. We designate these forward contracts as cash flow hedges, which are recognized as either assets or liabilities at fair value. At September 30, 2023, all such contracts had maturities of 24 months or less. Cross-Currency Swaps In April 2017, in order to manage variability due to movements in foreign currency rates related to a Euro-denominated intercompany loan, we entered into five-year cross-currency swaps. In March 2022, we entered into a transaction to extend the maturity of these swaps to August 31, 2027. We and the existing counterparties executed cancellation agreements to terminate all rights, obligations and liabilities associated with the original swaps. On the modification date, the existing cash flow hedging relationships were de-designated and new hedging relationships incorporating the terms of the new swaps (the 2022 Cross-Currency Swaps) were designated as either cash flow hedging relationships or net investment hedging relationships. The 2022 Cross-Currency Swaps had an aggregate amortizing notional amount of €1,184.2 million at inception (approximately $1,262.5 million). The swaps designated as cash flow hedging relationships convert the 3.00% fixed rate Euro-denominated interest and principal receipts on the intercompany loan into U.S. dollar interest and principal receipts at a fixed rate of 4.81%. The swaps designated as net investment hedging relationships hedge the foreign currency exposure of our net investment in certain Euro denominated functional currency subsidiaries. Pursuant to the contracts, the Euro notional value will be exchanged for the U.S. dollar notional value at maturity. Interest Rate Swaps In April 2017, we entered into a five-year pay-fixed rate, receive-floating rate interest rate swap arrangement to effectively convert a portion of the variable-rate borrowings under the previously issued term loans maturing in 2024, which were refinanced with the 2029 Term Loans, to a fixed rate of 5.44%. In March 2022, we entered into a transaction to extend the maturity of the swaps to August 31, 2027. We and the existing counterparties executed cancellation agreements to terminate all rights, obligations and liabilities associated with the original swaps. On the modification date, the existing cash flow hedging relationships were de-designated and new hedging relationships incorporating the terms of the new interest rate swaps (the 2022 Interest Rate Swaps) were designated. The 2022 Interest Rate Swaps, which had an amortizing notional amount of $1,262.5 million at inception, serve to convert a portion of the variable-rate borrowings under the 2029 Term Loans to a fixed rate of 4.81%. In November 2022, in conjunction with the Credit Facility refinancing discussed in our 2022 Form 10-K, we terminated these swaps and entered into new SOFR-based interest rate swaps. This modification impacted no critical terms other than the reference rate change from LIBOR to SOFR and thus had no impact on our hedging relationships or financial statements. In August 2020, in conjunction with the issuance of the 2027 Term Loans, we entered into seven-year pay-fixed rate, receive-floating rate interest rate swaps to effectively convert the variable one-month LIBOR interest rate on the 2027 Term Loans borrowings to a fixed rate of 0.705%. These interest rate swaps, which mature on August 10, 2027, had an aggregate notional amount of $750.0 million at inception. In May 2023, in conjunction with the first Credit Facility amendment discussed in Note 9, we terminated these swaps and entered into new SOFR-based interest rate swaps. This modification impacted no critical terms other than the reference rate change from LIBOR to SOFR and thus had no impact on our hedging relationships or financial statements. The objective of these arrangements, which are designated as cash flow hedges and recognized as assets or liabilities at fair value, is to manage the variability of cash flows in the interest payments related to the portion of the variable-rate debt designated as being hedged. The unrealized gains and losses on the swaps are included in AOCI and will be recognized in earnings within or against interest expense when the hedged interest payments are accrued each month. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | LeasesOur operating leases primarily consist of office and data center space expiring at various dates through November 2036. 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 September 30, 2023, operating leases have a remaining weighted average lease term of 6.7 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease costs $ 8.9 $ 11.9 $ 28.3 $ 34.3 Variable lease costs 3.6 3.8 11.2 8.8 Sublease income (3.6) (2.5) (8.1) (6.2) Total net lease cost $ 8.9 $ 13.2 $ 31.4 $ 36.9 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. As described in our 2022 Form 10-K, as of December 31, 2022, we had accrued $8.1 million as our estimated loss provision related to the settlement of certain class action complaints alleging violation of the Telephone Consumer Protection Act of 1991. On January 19, 2021, a single objector to the settlement filed a notice of appeal to the 11th Circuit Court of Appeals (the 11th Circuit). On July 27, 2022, the 11th Circuit vacated the settlement approval order and remanded the case for further action due to standing issues among the class members. On August 18, 2022, the plaintiffs filed a petition for a rehearing before the 11th Circuit. On December 7, 2022, the 11th Circuit was notified of the death of one of the plaintiffs, Jason Bennett. On March 13, 2023, the 11th Circuit granted the plaintiffs' petition for a rehearing before the 11th Circuit; the rehearing occurred on June 13, 2023. On July 24, 2023, the en banc 11th Circuit reversed the 11th Circuit's July 27, 2022 decision and remanded the appeal to the 11th Circuit for further action. Given the pending nature of the appeal, we have not adjusted our estimated loss provision for this settlement as of September 30, 2023. We have denied and continue to deny the allegations in the complaints. Nothing in the final settlement agreement is deemed to assign or reflect any admission of fault, wrongdoing or liability, or of the appropriateness of a class action in such litigation. We received a full release from the settlement class concerning the claims asserted, or that could have been asserted, with respect to the claims released in the final settlement agreement. Our legal fees associated with this matter have been recorded to general and administrative expense as incurred and were not material. As more fully described in the section titled “Risk Factors” located elsewhere in this Quarterly Report, in March 2020, we discovered that a threat actor group had compromised the hosting login credentials of certain of our customers to their hosting accounts and the login credentials of a small number of our personnel. We have expended resources investigating and responding to this activity, notified the impacted customers, reported the activity to applicable regulatory authorities, and are responding to requests for information regarding our data privacy and security practices, including from the Federal Trade Commission (FTC) pursuant to Civil Investigative Demands issued in July 2020 and October 2021. The timing of resolution and the outcome of these matters are uncertain and could result in us being subject to substantial monetary or other costs to our business. The amounts currently accrued for other matters are not material. While the results of such normal course claims and legal proceedings, regardless of the underlying nature of the claims, cannot be predicted with certainty, management believes, based on current knowledge and the likely timing of resolution of various matters, any additional reasonably possible potential losses above the amounts accrued for such matters would not be material. However, the outcomes of claims, legal proceedings or investigations are inherently unpredictable and subject to uncertainty, and may have an adverse effect on us because of defense costs, diversion of management resources and other factors that are not known to us or cannot be quantified at this time. We may also receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The final outcome of any current or future claims or lawsuits could adversely affect our business, financial condition or results of operations. We periodically evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued or the reasonably possible losses that we have disclosed, and make adjustments as appropriate. 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 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 $21.7 million and $18.9 million as of September 30, 2023 and December 31, 2022, 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. |
Restructuring and Other Charges
Restructuring and Other Charges and Disposition of Businesses and Related Assets | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges and Disposition of Businesses and Related Assets | Restructuring and Other Charges and Disposition of Businesses and Related Assets In February 2023, we announced a restructuring plan to reduce future operating expenses and improve cash flows through a combination of a reduction in force and a commitment to sell certain assets. As part of this plan, we announced a reduction in our workforce of approximately 550 employees, representing approximately 8% of our total employees. In conjunction with this restructuring, during the nine months ended September 30, 2023, we recorded $34.6 million of pre-tax restructuring charges in our statement of operations related to severance, employee benefits and equity-based compensation, $0.8 million of which was recognized during the third quarter. In addition, we recognized a pre-tax loss of $16.8 million upon the completion of the planned disposition of certain assets and liabilities of our hosting business within our Core segment, which occurred on June 30, 2023. During the three months ended September 30, 2023, we implemented additional restructuring activities to further reduce operating expenses and improve cash flows through a reduction in force, which impacted approximately 250 employees. In conjunction with these restructuring efforts, we recognized $9.2 million of pre-tax restructuring charges in our statement of operations related to severance and employee benefits. We estimate that we will incur up to an additional $4.7 million in restructuring charges related to our restructuring activities, primarily during the fourth quarter of 2023. We do not expect to incur additional restructuring charges beyond the first quarter of 2024. Cash payments of $31.4 million related to the restructuring activities described above were made during the nine months ended September 30, 2023. We expect to make substantially all remaining restructuring payments by the end of the first quarter of 2024. 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 as of September 30, 2023: Accrued Restructuring Costs Accrued restructuring costs as of December 31, 2022 $ — Restructuring costs incurred during the nine months ended September 30, 2023 (1) 41.5 Amount paid during the nine months ended September 30, 2023 (31.4) Accrued restructuring costs as of September 30, 2023 $ 10.1 ________________________________ (1) Excludes $2.3 million in equity-based compensation expense associated with our restructuring plan, which was recorded within additional paid-in capital. During the nine months ended September 30, 2023, we also recorded a charge of $17.0 million in our statement of operations related to the termination of a revenue sharing agreement. This termination fee was paid in full during the second quarter of 2023. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to U.S. federal, state and foreign income taxes with respect to our allocable share of any taxable income or loss of Desert Newco, as well as any stand-alone income or loss we generate. Desert Newco is treated as a partnership for U.S. income tax purposes, and for most applicable state and local income tax purposes, and generally does not pay income taxes in most jurisdictions. Instead, Desert Newco's taxable income or loss is passed through to its members, including us. Despite its partnership treatment, Desert Newco is liable for income taxes in certain foreign jurisdictions in which it operates, in those states not recognizing its pass-through status and for certain of its subsidiaries not taxed as pass-through entities. We have acquired the outstanding stock of various domestic and foreign entities taxed as corporations, which are now wholly-owned by us or our subsidiaries. Where required or allowed, these subsidiaries also file and pay tax as a consolidated group for U.S. federal and state income tax purposes and internationally, primarily within the United Kingdom (UK), Germany and India. We anticipate this structure to remain in existence for the foreseeable future. Our effective tax rates differ from the U.S. federal statutory rate primarily due to changes in valuation allowances based on current year earnings and the impact of foreign earnings primarily related to the UK, Germany and India jurisdictions. In determining the need for a valuation allowance, we prepare quarterly estimates using historical and forecasted future operating results, based upon approved business plans, including a review of the eligible carryforward periods and tax planning strategies. Based primarily on the negative evidence outweighing the positive evidence as of September 30, 2023, we believe there is uncertainty as to when we will be able to utilize certain of our domestic net operating losses (NOLs), credit carryforwards and other deferred tax assets (DTAs). This negative evidence includes our historical tax losses, the difficulty in forecasting excess tax benefits related to equity-based compensation and the difficulty in forecasting profits due to the current uncertain macroeconomic conditions, such as inflation and the possibility of recession or an economic slowdown. Therefore, we have recorded a valuation allowance against the DTAs for which we have concluded it is more-likely-than-not they will not be realized. If the current uncertain macroeconomic conditions dissipate making it easier to forecast in the long-term, our operating results continue to improve and our projections show sufficient utilization of tax attributes, we will consider that as significant positive evidence and our future reassessment may result in the determination that all or a portion of the valuation allowance is no longer required. If this were to occur, any reversal of the valuation allowance would result in a corresponding non-cash income tax benefit, thereby increasing total DTAs. Uncertain Tax Positions The total amount of gross unrecognized tax benefits was $151.8 million as of September 30, 2023, of which $45.9 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. |
Income Per Share
Income Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Income Per Share | Income Per ShareBasic 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 131.0 $ 100.0 $ 261.5 $ 259.1 Less: net income attributable to non-controlling interests 0.3 0.2 0.6 0.5 Net income attributable to GoDaddy Inc. $ 130.7 $ 99.8 $ 260.9 $ 258.6 Denominator: Weighted-average shares of Class A common stock outstanding—basic 145,484 156,393 150,614 160,150 Effect of dilutive securities: Class B common stock 307 312 308 313 Stock options 405 616 462 712 RSUs, PSUs and ESPP shares 1,095 1,097 1,919 1,490 Weighted-average shares of Class A Common stock outstanding—diluted 147,291 158,418 153,303 162,665 Net income attributable to GoDaddy Inc. per share of Class A common stock—basic $ 0.90 $ 0.64 $ 1.73 $ 1.61 Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted $ 0.89 $ 0.63 $ 1.71 $ 1.59 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 152 218 163 246 RSUs, PSUs and ESPP shares 2,213 520 620 2,557 2,365 738 783 2,803 Shares of Class B common stock are not participating securities and, therefore, do not have rights to share in our earnings. Accordingly, separate presentation of income per share of Class B common stock under the two-class method is not required. Each share of Class B common stock is exchangeable for one share of Class A common stock. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We report our operating results through two reportable segments: A&C and Core. Our chief operating decision maker (CODM), which, as of September 30, 2023, 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 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, commerce products and third-party email and productivity solutions as well as 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: A&C $ 363.3 $ 326.0 $ 1,053.0 $ 946.3 Core 706.4 707.2 2,100.8 2,105.1 Total revenue $ 1,069.7 $ 1,033.2 $ 3,153.8 $ 3,051.4 Segment EBITDA: A&C $ 154.3 $ 135.6 $ 429.4 $ 387.2 Core 208.6 202.1 588.6 578.9 Total Segment EBITDA 362.9 337.7 1,018.0 966.1 Unallocated corporate overhead (66.9) (75.0) (207.7) (219.1) Depreciation and amortization (40.6) (48.5) (132.6) (145.1) Equity-based compensation expense (1) (76.2) (65.4) (225.3) (193.3) Interest expense, net of interest income (39.8) (32.1) (115.2) (98.9) Acquisition-related expenses (2) 1.0 (8.9) (8.7) (27.2) Restructuring and other (3) (12.5) (10.6) (72.2) (21.9) Income before income taxes 127.9 97.2 256.3 260.6 Benefit (provision) for income taxes 3.1 2.8 5.2 (1.5) Net income $ 131.0 $ 100.0 $ 261.5 $ 259.1 _________________________________ (1) The nine months ended September 30, 2023 excludes $2.3 million of equity-based compensation expense associated with our restructuring plan, which is included within restructuring and other. (2) The three and nine months ended September 30, 2023 include an adjustment of $6.0 million to a previously-recognized acquisition milestone liability. (3) In addition to the 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, adjustments to the fair value of our equity investments and expenses incurred in relation to the refinancing of our long-term debt. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 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 Gross balance as of December 31, 2022 (2) $ (75.0) $ 253.4 $ 178.4 Other comprehensive income (loss) before reclassifications 0.4 (90.4) (90.0) Amounts reclassified from AOCI (4.3) 85.2 80.9 Other comprehensive income (loss) (3.9) (5.2) (9.1) $ (78.9) $ 248.2 169.3 Less: AOCI attributable to non-controlling interests (0.4) Balance as of September 30, 2023 $ 168.9 Gross balance as of December 31, 2021 (2) $ (52.9) $ 14.2 $ (38.7) Other comprehensive income (loss) before reclassifications (19.9) 169.2 149.3 Amounts reclassified from AOCI — 95.5 95.5 Other comprehensive income (19.9) 264.7 244.8 $ (72.8) $ 278.9 206.1 Less: AOCI attributable to non-controlling interests (0.4) Balance as of September 30, 2022 $ 205.7 _________________________________ (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. (2) Beginning balance is presented on a gross basis, excluding the allocation of AOCI attributable to non-controlling interests. The sale of certain assets and liabilities of our hosting business, as discussed in Note 13, resulted in the reclassification from AOCI of $4.3 million in cumulative foreign currency translation adjustments. This amount was included within the loss on disposal reported in restructuring and other in our statements of operations for the three and nine months ended September 30, 2023. See Note 10 for the effect on net income of amounts reclassified from AOCI related to our hedging relationships. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to GoDaddy Inc. | $ 130.7 | $ 99.8 | $ 260.9 | $ 258.6 |
Insider Trading Arrangements
Insider Trading Arrangements - Leah Sweet [Member] shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 9, 2023, Leah Sweet, member of the Company's Board of Directors, adopted a 10b5-1 trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The 10b5-1 trading plan provides for the sale of an aggregate of 1,000 shares of the Company’s common stock between November 2023 and November 2024. | |
Name | Leah Sweet | |
Title | member of the Company's Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 9, 2023 | |
Arrangement Duration | 395 days | |
Aggregate Available | 1 | 1 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2023. 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, 2022 (the 2022 Form 10-K). |
Use of Estimates | 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 | SegmentsWe report our operating results through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core), as further discussed in Note 16. |
Assets Recognized from Contract Costs | Assets Recognized from Contract CostsFees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. |
Restructuring and Other | Restructuring and other primarily represents: (i) charges related to the restructuring activities implemented in the first and third quarters of 2023, which were undertaken to reduce future operating expenses and improve cash flows through a combination of reductions in force and the sale of certain assets and liabilities of our hosting business within our Core segment; and (ii) a charge incurred in the second quarter of 2023 related to the termination of a revenue sharing agreement. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Property and Equipment, Net by Geography | Property and equipment, net by geography was as follows: September 30, 2023 December 31, 2022 U.S. $ 155.9 $ 167.5 France 22.5 28.8 All other international 20.3 29.3 $ 198.7 $ 225.6 |
Summary of Investments in Privately Held Equity Securities | We hold investments in privately held equity securities, which are recorded in other assets, and were as follows: Equity Investments Equity investments as of December 31, 2022 $ 40.5 Fair market value adjustments (1) 14.4 Impairment losses (1) (2.3) Additional investments 0.5 Equity investments as of September 30, 2023 $ 53.1 _________________________________ (1) Fair market value adjustments and impairment losses are recorded in other income (expense), net. |
Revenue by Product Type | Revenue by major product type was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Applications and commerce $ 363.3 $ 326.0 $ 1,053.0 $ 946.3 Core platform: domains 508.2 494.0 1,493.0 1,462.9 Core platform: other 198.2 213.2 607.8 642.2 $ 1,069.7 $ 1,033.2 $ 3,153.8 $ 3,051.4 |
Revenue by Geography | Revenue by geography is based on the customer's billing address and was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 U.S. $ 724.2 $ 700.6 $ 2,126.6 $ 2,058.2 International 345.5 332.6 1,027.2 993.2 $ 1,069.7 $ 1,033.2 $ 3,153.8 $ 3,051.4 |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Time deposits $ 71.0 — — $ 71.0 Derivative assets — 219.1 — 219.1 Total assets $ 71.0 $ 219.1 $ — $ 290.1 Liabilities: Derivative liabilities $ — $ 1.2 $ — $ 1.2 Total liabilities $ — $ 1.2 $ — $ 1.2 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Commercial paper $ — $ 120.0 $ — $ 120.0 Time deposits 347.3 — — 347.3 Derivative assets — 218.5 — 218.5 Total assets $ 347.3 $ 338.5 $ — $ 685.8 Liabilities: Derivative liabilities $ — $ 4.9 $ — $ 4.9 Total liabilities $ — $ 4.9 $ — $ 4.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in our goodwill balance by segment: A&C Core Total Balance at December 31, 2022 $ 1,497.0 $ 2,039.9 $ 3,536.9 Impact of foreign currency translation (2.6) (3.7) (6.3) Less: goodwill related to disposition of businesses — (3.3) (3.3) Other adjustments — (3.9) (3.9) Balance at September 30, 2023 $ 1,494.4 $ 2,029.0 $ 3,523.4 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net are summarized as follows: September 30, 2023 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 240.8 n/a 240.8 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 446.4 $ (326.3) 120.1 Developed technology 243.4 (196.7) 46.7 Trade names and other 102.5 (60.3) 42.2 $ 1,770.8 $ (583.3) $ 1,187.5 December 31, 2022 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net are summarized as follows: September 30, 2023 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 240.8 n/a 240.8 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 446.4 $ (326.3) 120.1 Developed technology 243.4 (196.7) 46.7 Trade names and other 102.5 (60.3) 42.2 $ 1,770.8 $ (583.3) $ 1,187.5 December 31, 2022 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the balance of finite-lived intangible assets as of September 30, 2023, expected future amortization expense is as follows: Year Ending December 31: 2023 (remainder of) $ 21.8 2024 81.3 2025 73.7 2026 24.6 2027 4.4 Thereafter 3.2 $ 209.0 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: September 30, 2023 December 31, 2022 Derivative assets $ 219.1 $ 218.5 Prepaid software and maintenance expenses 38.0 29.5 Registry deposits 33.9 41.0 Usage-based prepaid expenses (1) 12.9 10.6 Other 21.4 13.2 $ 325.3 $ 312.8 _________________________________ (1) Usage-based prepaid expenses include various cost of revenue, marketing, rent and other prepaid commitments that are amortized as the funds are used. |
Equity-Based Compensation Pla_2
Equity-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Award Activity | The following table summarizes stock option activity: Number of Weighted- Outstanding at December 31, 2022 1,426 44.38 Exercised (306) 31.28 Forfeited (17) 70.64 Outstanding at September 30, 2023 1,103 47.64 Vested at September 30, 2023 1,097 47.49 The following table summarizes stock award activity: Number of Outstanding at December 31, 2022 7,632 Granted: RSUs 3,394 Granted: TSR-based PSUs 264 TSR-based PSU achievement above target 91 Vested (3,287) Forfeited (796) Outstanding at September 30, 2023 (1) 7,298 _________________________________ (1) The balance of outstanding awards is comprised of the following: Number of Weighted-Average Grant-Date Fair Value Per Share ($) RSUs 6,514 78.35 TSR-based PSUs 759 119.56 Financial-based PSUs 25 77.23 Outstanding at September 30, 2023 7,298 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Deferred Revenue | Deferred revenue consisted of the following: September 30, 2023 December 31, 2022 Current: A&C $ 692.9 $ 622.1 Core 1,401.8 1,331.9 $ 2,094.7 $ 1,954.0 Noncurrent: A&C $ 173.7 $ 173.1 Core 629.5 597.2 $ 803.2 $ 770.3 |
Expected Recognition of Deferred Revenue | Deferred revenue as of September 30, 2023 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 2023 2024 2025 2026 2027 Thereafter Total A&C $ 284.1 $ 447.5 $ 96.8 $ 26.3 $ 6.8 $ 5.1 $ 866.6 Core 517.6 994.9 270.2 109.4 61.1 78.1 2,031.3 $ 801.7 $ 1,442.4 $ 367.0 $ 135.7 $ 67.9 $ 83.2 $ 2,897.9 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Composition of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: September 30, 2023 December 31, 2022 Accrued payroll and employee benefits $ 131.3 $ 116.3 Tax-related accruals 47.8 42.8 Accrued legal and professional 32.7 34.3 Current portion of operating lease liabilities 30.6 33.3 Share repurchases not yet settled 17.9 5.8 Accrued marketing and advertising 17.5 13.6 Accrued acquisition-related expenses and acquisition consideration payable 17.2 26.2 Accrued restructuring costs 10.1 — Share repurchases excise tax payable 8.4 — Other 96.2 84.4 $ 409.7 $ 356.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Composition of Long-Term Debt | Long-term debt consisted of the following: Maturity Date September 30, 2023 December 31, 2022 2027 Term Loans (effective interest rate of 7.3% at September 30, 2023 and 4.3% at December 31, 2022) August 10, 2027 $ 725.6 $ 731.3 2029 Term Loans (effective interest rate of 8.4% at September 30, 2023 and 4.1% at December 31, 2022) November 10, 2029 1,756.8 1,770.0 2027 Senior Notes (effective interest rate of 5.5% at September 30, 2023 and 5.4% at December 31, 2022) December 1, 2027 600.0 600.0 2029 Senior Notes (effective interest rate of 3.6% at September 30, 2023 and 3.6% at December 31, 2022) March 1, 2029 800.0 800.0 Revolver November 10, 2027 — — Total 3,882.4 3,901.3 Less: unamortized original issue discount and debt issuance costs (1) (62.1) (70.2) Less: current portion of long-term debt (18.0) (18.2) $ 3,802.3 $ 3,812.9 _________________________________ (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. |
Estimated Fair Values of Long-Term Debt Instruments | 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 September 30, 2023: 2027 Term Loans $ 725.6 2029 Term Loans $ 1,759.0 2027 Senior Notes $ 566.1 2029 Senior Notes $ 673.2 |
Aggregate Principal Payments Due on Long-Term Debt | Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of September 30, 2023 were as follows: Year Ending December 31: 2023 (remainder of) $ 6.3 2024 25.1 2025 25.1 2026 25.1 2027 1,318.9 Thereafter 2,481.9 $ 3,882.4 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Instruments | 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) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Cash flow hedges: Foreign exchange forward contracts $ 479.9 $ 364.7 $ 7.8 $ 9.4 $ 1.2 $ 2.0 Cross-currency swaps (1) 538.5 549.7 10.3 15.8 — 2.2 Interest rate swaps 1,964.9 1,980.5 187.7 173.0 — — Net investment hedges: Cross-currency swaps (1) 690.3 704.6 13.3 20.3 — 0.7 Total hedges $ 3,673.6 $ 3,599.5 $ 219.1 $ 218.5 $ 1.2 $ 4.9 _________________________________ (1) The notional values of the cross-currency swaps have been translated from Euros to U.S. dollars at the foreign currency rates in effect of approximately 1.06 and 1.07 as of September 30, 2023 and December 31, 2022, respectively. (2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets accrued expenses and other current liabilities |
Summary of the Gains (Losses) Recognized within Earnings Related to Derivative Instruments | 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash flow hedges: Foreign exchange forward contracts (1) $ 8.7 $ 24.2 $ (7.2) $ 48.0 Cross-currency swaps (7.8) (0.5) (12.4) 42.9 Interest rate swaps 15.6 78.2 14.4 171.3 Net investment hedges: Cross-currency swaps 12.3 43.7 (7.0) 65.3 Total hedges $ 28.8 $ 145.6 $ (12.2) $ 327.5 _________________________________ (1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. The following tables summarize the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 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 $ 3.8 $ — $ — $ 2.3 $ — $ — Cross-currency swaps: Reclassified from AOCI into income (1) — 2.4 17.4 — 2.7 35.2 Interest rate swaps: Reclassified from AOCI into income — 17.8 — — 2.4 — Net investment hedges: Cross-currency swaps: Reclassified from AOCI into income — 3.1 — — 3.6 — Total hedges $ 3.8 $ 23.3 $ 17.4 $ 2.3 $ 8.7 $ 35.2 _________________________________ (1) The amounts reflected in other income (expense), net include $(17.4) million and $(34.9) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by cross-currency swaps during the three months ended September 30, 2023 and 2022, respectively. Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 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 $ 13.5 $ — $ — $ 0.9 $ — $ — Cross-currency swaps: Reclassified from AOCI into income (1) — 7.2 6.8 — 12.3 88.0 Interest rate swaps: Reclassified from AOCI into income — 48.3 — — (13.6) — Net investment hedges: Cross-currency swaps: Reclassified from AOCI into income — 9.4 — — 7.9 — Total hedges $ 13.5 $ 64.9 $ 6.8 $ 0.9 $ 6.6 $ 88.0 _________________________________ (1) The amounts reflected in other income (expense), net include $(6.9) million and $(87.8) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by cross-currency swaps during the nine months ended September 30, 2023 and 2022, respectively. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Expenses | The components of operating lease expense were as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease costs $ 8.9 $ 11.9 $ 28.3 $ 34.3 Variable lease costs 3.6 3.8 11.2 8.8 Sublease income (3.6) (2.5) (8.1) (6.2) Total net lease cost $ 8.9 $ 13.2 $ 31.4 $ 36.9 |
Restructuring and Other Charg_2
Restructuring and Other Charges and Disposition of Businesses and Related Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Activity in the Restructuring Related Accruals | 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 as of September 30, 2023: Accrued Restructuring Costs Accrued restructuring costs as of December 31, 2022 $ — Restructuring costs incurred during the nine months ended September 30, 2023 (1) 41.5 Amount paid during the nine months ended September 30, 2023 (31.4) Accrued restructuring costs as of September 30, 2023 $ 10.1 ________________________________ (1) Excludes $2.3 million in equity-based compensation expense associated with our restructuring plan, which was recorded within additional paid-in capital. |
Income Per Share (Tables)
Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted Net Income Per Share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted income per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 131.0 $ 100.0 $ 261.5 $ 259.1 Less: net income attributable to non-controlling interests 0.3 0.2 0.6 0.5 Net income attributable to GoDaddy Inc. $ 130.7 $ 99.8 $ 260.9 $ 258.6 Denominator: Weighted-average shares of Class A common stock outstanding—basic 145,484 156,393 150,614 160,150 Effect of dilutive securities: Class B common stock 307 312 308 313 Stock options 405 616 462 712 RSUs, PSUs and ESPP shares 1,095 1,097 1,919 1,490 Weighted-average shares of Class A Common stock outstanding—diluted 147,291 158,418 153,303 162,665 Net income attributable to GoDaddy Inc. per share of Class A common stock—basic $ 0.90 $ 0.64 $ 1.73 $ 1.61 Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted $ 0.89 $ 0.63 $ 1.71 $ 1.59 |
Summary of Weighted Average Potentially Dilutive Shares | 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 152 218 163 246 RSUs, PSUs and ESPP shares 2,213 520 620 2,557 2,365 738 783 2,803 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table presents our segment information for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: A&C $ 363.3 $ 326.0 $ 1,053.0 $ 946.3 Core 706.4 707.2 2,100.8 2,105.1 Total revenue $ 1,069.7 $ 1,033.2 $ 3,153.8 $ 3,051.4 Segment EBITDA: A&C $ 154.3 $ 135.6 $ 429.4 $ 387.2 Core 208.6 202.1 588.6 578.9 Total Segment EBITDA 362.9 337.7 1,018.0 966.1 Unallocated corporate overhead (66.9) (75.0) (207.7) (219.1) Depreciation and amortization (40.6) (48.5) (132.6) (145.1) Equity-based compensation expense (1) (76.2) (65.4) (225.3) (193.3) Interest expense, net of interest income (39.8) (32.1) (115.2) (98.9) Acquisition-related expenses (2) 1.0 (8.9) (8.7) (27.2) Restructuring and other (3) (12.5) (10.6) (72.2) (21.9) Income before income taxes 127.9 97.2 256.3 260.6 Benefit (provision) for income taxes 3.1 2.8 5.2 (1.5) Net income $ 131.0 $ 100.0 $ 261.5 $ 259.1 _________________________________ (1) The nine months ended September 30, 2023 excludes $2.3 million of equity-based compensation expense associated with our restructuring plan, which is included within restructuring and other. (2) The three and nine months ended September 30, 2023 include an adjustment of $6.0 million to a previously-recognized acquisition milestone liability. (3) In addition to the 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, adjustments to the fair value of our equity investments and expenses incurred in relation to the refinancing of our long-term debt. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
OCI Activity in Equity | The following table presents AOCI activity in equity: Foreign Currency Translation Adjustments Net Unrealized Gains (Losses) on Cash Flow Hedges (1) Total AOCI Gross balance as of December 31, 2022 (2) $ (75.0) $ 253.4 $ 178.4 Other comprehensive income (loss) before reclassifications 0.4 (90.4) (90.0) Amounts reclassified from AOCI (4.3) 85.2 80.9 Other comprehensive income (loss) (3.9) (5.2) (9.1) $ (78.9) $ 248.2 169.3 Less: AOCI attributable to non-controlling interests (0.4) Balance as of September 30, 2023 $ 168.9 Gross balance as of December 31, 2021 (2) $ (52.9) $ 14.2 $ (38.7) Other comprehensive income (loss) before reclassifications (19.9) 169.2 149.3 Amounts reclassified from AOCI — 95.5 95.5 Other comprehensive income (19.9) 264.7 244.8 $ (72.8) $ 278.9 206.1 Less: AOCI attributable to non-controlling interests (0.4) Balance as of September 30, 2022 $ 205.7 _________________________________ (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. (2) Beginning balance is presented on a gross basis, excluding the allocation of AOCI attributable to non-controlling interests. |
Organization and Background (De
Organization and Background (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Class of Stock [Line Items] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Desert Newco, LLC | |
Class of Stock [Line Items] | |
LLC units held (as a percent) | 99.80% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Property and Equipment, Net by Geography (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 198.7 | $ 225.6 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 155.9 | 167.5 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 22.5 | 28.8 |
All other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 20.3 | $ 29.3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Investments in Privately Held Equity Securities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Increase (Decrease) In Equity Investments [Roll Forward] | |
Equity investments as of December 31, 2022 | $ 40.5 |
Fair market adjustments | 14.4 |
Impairment losses | (2.3) |
Additional investments | 0.5 |
Equity investments as of September 30, 2023 | $ 53.1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue by Product Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,069.7 | $ 1,033.2 | $ 3,153.8 | $ 3,051.4 |
Applications & commerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 363.3 | 326 | 1,053 | 946.3 |
Core platform | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 706.4 | 707.2 | 2,100.8 | 2,105.1 |
Core platform | Domains | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 508.2 | 494 | 1,493 | 1,462.9 |
Core platform | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 198.2 | $ 213.2 | $ 607.8 | $ 642.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 1,069.7 | $ 1,033.2 | $ 3,153.8 | $ 3,051.4 |
U.S. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 724.2 | 700.6 | 2,126.6 | 2,058.2 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 345.5 | $ 332.6 | $ 1,027.2 | $ 993.2 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Amortization of contract costs | $ 194.4 | $ 180.3 | $ 571.6 | $ 532 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Measured on a Recurring Basis - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Derivative assets | $ 219.1 | $ 218.5 |
Total assets | 290.1 | 685.8 |
Liabilities: | ||
Derivative liabilities | 1.2 | 4.9 |
Total liabilities | 1.2 | 4.9 |
Commercial paper and other | ||
Assets: | ||
Cash and cash equivalents | 120 | |
Time deposits | ||
Assets: | ||
Cash and cash equivalents | 71 | 347.3 |
Level 1 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets | 71 | 347.3 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Commercial paper and other | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Level 1 | Time deposits | ||
Assets: | ||
Cash and cash equivalents | 71 | 347.3 |
Level 2 | ||
Assets: | ||
Derivative assets | 219.1 | 218.5 |
Total assets | 219.1 | 338.5 |
Liabilities: | ||
Derivative liabilities | 1.2 | 4.9 |
Total liabilities | 1.2 | 4.9 |
Level 2 | Commercial paper and other | ||
Assets: | ||
Cash and cash equivalents | 120 | |
Level 2 | Time deposits | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Commercial paper and other | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Level 3 | Time deposits | ||
Assets: | ||
Cash and cash equivalents | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | $ 3,536.9 |
Impact of foreign currency translation | (6.3) |
Less: goodwill related to disposition of businesses | (3.3) |
Other adjustments | (3.9) |
Balance at September 30, 2023 | 3,523.4 |
Applications & commerce | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | 1,497 |
Impact of foreign currency translation | (2.6) |
Less: goodwill related to disposition of businesses | 0 |
Other adjustments | 0 |
Balance at September 30, 2023 | 1,494.4 |
Core platform | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | 2,039.9 |
Impact of foreign currency translation | (3.7) |
Less: goodwill related to disposition of businesses | (3.3) |
Other adjustments | (3.9) |
Balance at September 30, 2023 | $ 2,029 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (583.3) | $ (534.2) |
Net Carrying Amount | 209 | |
Gross Carrying Amount | 1,770.8 | 1,786.4 |
Net Carrying Amount | 1,187.5 | 1,252.2 |
Trade names and branding | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 445 | 445 |
Domain portfolio | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 240.8 | 243.2 |
Contractual-based assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 292.7 | 256.8 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 446.4 | 487.7 |
Accumulated Amortization | (326.3) | (309) |
Net Carrying Amount | 120.1 | 178.7 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 243.4 | 243.9 |
Accumulated Amortization | (196.7) | (171.1) |
Net Carrying Amount | 46.7 | 72.8 |
Trade names and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 102.5 | 109.8 |
Accumulated Amortization | (60.3) | (54.1) |
Net Carrying Amount | $ 42.2 | $ 55.7 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Purchases of intangible assets | $ 35.4 | $ 0.4 | ||
Variable earn-out payment | $ 4 | 4 | ||
Amortization expense | $ 24 | $ 31.8 | $ 82.8 | $ 96.7 |
Weighted Average | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining amortization period | 33 months | 33 months | ||
Customer-related | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining amortization period | 30 months | 30 months | ||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining amortization period | 26 months | 26 months | ||
Trade names and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining amortization period | 47 months | 47 months |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization of Finite Lived Intangible Assets (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 (remainder of) | $ 21.8 |
2024 | 81.3 |
2025 | 73.7 |
2026 | 24.6 |
2027 | 4.4 |
Thereafter | 3.2 |
Net Carrying Amount | $ 209 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 | Jun. 30, 2023 | [1] | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Aug. 31, 2023 | ||
Class of Stock [Line Items] | ||||||||||
Aggregate purchase price | $ 528.2 | [1] | $ 511.6 | $ 113.9 | $ 109.6 | $ 236.3 | $ 750.2 | |||
Remaining authorization available | $ 1,554.6 | $ 1,554.6 | ||||||||
Class A Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of additional stock | $ 1,000 | |||||||||
Authorized amount | $ 4,000 | |||||||||
Class A Common Stock | New Accelerated Share Repurchase Agreement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchases of Class A common stock (in shares) | 15,738 | |||||||||
Aggregate purchase price | $ 1,145.3 | |||||||||
[1]Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $4.6 million. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative assets | $ 218.5 | |
Prepaid software and maintenance expenses | $ 38 | 29.5 |
Registry deposits | 33.9 | 41 |
Usage-based prepaid expenses | 12.9 | 10.6 |
Other | 21.4 | 13.2 |
Prepaid expenses and other current assets | $ 325.3 | $ 312.8 |
Equity-Based Compensation Pla_3
Equity-Based Compensation Plans - Summary of Stock Option Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at beginning of period (in shares) | shares | 1,426 |
Exercised (in shares) | shares | (306) |
Forfeited (in shares) | shares | (17) |
Outstanding at end of period (in shares) | shares | 1,103 |
Vested at end of period (in shares) | shares | 1,097 |
Weighted- Average Exercise Price Per Share ($) | |
Outstanding weighted average exercise price (in dollars per share) | $ / shares | $ 44.38 |
Exercised (in dollars per share) | $ / shares | 31.28 |
Forfeited (in dollars per share) | $ / shares | 70.64 |
Outstanding weighted average exercise price (in dollars per share) | $ / shares | 47.64 |
Vested at end of period (in dollars per share) | $ / shares | $ 47.49 |
Equity-Based Compensation Pla_4
Equity-Based Compensation Plans - Summary of Stock Award Activity (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at beginning of period (in shares) | 7,632,000 |
Vested (in shares) | (3,287,000) |
Forfeited (in shares) | (796,000) |
Outstanding at end of period (in shares) | 7,298,000 |
RSUs | |
Number of Shares of Class A Common Stock (#) | |
Granted (in shares) | 3,394,000 |
Outstanding at end of period (in shares) | 6,514,000 |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 78.35 |
TSR-based PSUs | |
Number of Shares of Class A Common Stock (#) | |
Granted (in shares) | 264,000 |
Outstanding at end of period (in shares) | 759,000 |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 119.56 |
TSR-Based Performance Stock Units Above Target | |
Number of Shares of Class A Common Stock (#) | |
Granted (in shares) | 91,000 |
Financial-based PSUs | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at end of period (in shares) | 25,000 |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 77.23 |
Equity-Based Compensation Pla_5
Equity-Based Compensation Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
RSU's and ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs | $ 417.3 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average recognition period | 2 years 1 month 6 days |
Deferred Revenue - Composition
Deferred Revenue - Composition of Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | $ 2,094.7 | $ 1,954 |
Deferred revenue, noncurrent | 803.2 | 770.3 |
Applications & commerce | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 692.9 | 622.1 |
Deferred revenue, noncurrent | 173.7 | 173.1 |
Core platform | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 1,401.8 | 1,331.9 |
Deferred revenue, noncurrent | $ 629.5 | $ 597.2 |
Deferred Revenue - Narrative (D
Deferred Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 438.9 | $ 1,789.2 |
Deferred Revenue - Expected Rec
Deferred Revenue - Expected Recognition of Deferred Revenue (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 2,897.9 |
Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | 866.6 |
Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | 2,031.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 801.7 |
Expected recognition period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 284.1 |
Expected recognition period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 517.6 |
Expected recognition period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 1,442.4 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 447.5 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 994.9 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 367 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 96.8 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 270.2 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 135.7 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 26.3 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 109.4 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 67.9 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 6.8 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 61.1 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 83.2 |
Expected recognition period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Applications & commerce | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 5.1 |
Expected recognition period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Core platform | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 78.1 |
Expected recognition period |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued payroll and employee benefits | $ 131.3 | $ 116.3 |
Tax-related accruals | 47.8 | 42.8 |
Accrued legal and professional | 32.7 | 34.3 |
Current portion of operating lease liabilities | 30.6 | 33.3 |
Share repurchases not yet settled | 17.9 | 5.8 |
Accrued marketing and advertising | 17.5 | 13.6 |
Accrued acquisition-related expenses and acquisition consideration payable | 17.2 | 26.2 |
Accrued restructuring costs | 10.1 | 0 |
Share repurchases excise tax payable | 8.4 | 0 |
Other | 96.2 | 84.4 |
Accrued expenses and other current liabilities | $ 409.7 | $ 356.7 |
Long-Term Debt - Composition of
Long-Term Debt - Composition of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,882.4 | $ 3,901.3 |
Less unamortized original issue discount and debt issuance costs | (62.1) | (70.2) |
Less: current portion of long-term debt | (18) | (18.2) |
Long-term debt, net of current portion | 3,802.3 | 3,812.9 |
2027 Term Loans | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 725.6 | $ 731.3 |
Effective interest rate percentage | 7.30% | 4.30% |
2029 Term Loans | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,756.8 | $ 1,770 |
Effective interest rate percentage | 8.40% | 4.10% |
2027 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 600 | $ 600 |
Effective interest rate percentage | 5.50% | 5.40% |
2029 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 800 | $ 800 |
Effective interest rate percentage | 3.60% | 3.60% |
Revolver | Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2023 | May 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ 1.5 | $ 0 | $ 1.5 | $ 0 | ||
2029 Term Loans | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Additional discount | $ 1.2 | |||||
Loss on debt extinguishment | $ 1.5 | |||||
Line of Credit | 2029 Term Loans | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Line of Credit | 2029 Term Loans | SOFR | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Line of Credit | 2029 Term Loans | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Line of Credit | 2029 Term Loans | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Line of Credit | 2027 Term Loans | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Line of Credit | 2027 Term Loans | SOFR | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Line of Credit | 2027 Term Loans | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Line of Credit | 2027 Term Loans | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Line of Credit | Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Available borrowing capacity | 999.2 | 999.2 | ||||
Standby Letters of Credit | Senior Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings used | $ 0.8 | $ 0.8 |
Long-Term Debt - Estimated Fair
Long-Term Debt - Estimated Fair Values of Long-Term Debt Instruments (Details) - Level 2 $ in Millions | Sep. 30, 2023 USD ($) |
2027 Term Loans | Secured Debt | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | $ 725.6 |
2029 Term Loans | Secured Debt | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | 1,759 |
2027 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | 566.1 |
2029 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | $ 673.2 |
Long-Term Debt - Aggregate Prin
Long-Term Debt - Aggregate Principal Payments Due on Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2023 (remainder of) | $ 6.3 | |
2024 | 25.1 | |
2025 | 25.1 | |
2026 | 25.1 | |
2027 | 1,318.9 | |
Thereafter | 2,481.9 | |
Aggregate principal payments | $ 3,882.4 | $ 3,901.3 |
Derivatives and Hedging - Summa
Derivatives and Hedging - Summary of Outstanding Derivative Instruments (Details) € in Millions, $ in Millions | Sep. 30, 2023 USD ($) € / $ | Dec. 31, 2022 USD ($) € / $ | Apr. 30, 2017 USD ($) | Apr. 30, 2017 EUR (€) |
Derivative [Line Items] | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | ||
Designated as Hedging Instrument | Level 2 | ||||
Derivative [Line Items] | ||||
Notional amount | $ 3,673.6 | $ 3,599.5 | ||
Fair value of derivative assets | 219.1 | 218.5 | ||
Fair value of derivative liabilities | 1.2 | 4.9 | ||
Cash Flow Hedging | Foreign exchange forward contracts | Designated as Hedging Instrument | Level 2 | ||||
Derivative [Line Items] | ||||
Notional amount | 479.9 | 364.7 | ||
Fair value of derivative assets | 7.8 | 9.4 | ||
Fair value of derivative liabilities | $ 1.2 | $ 2 | ||
Cash Flow Hedging | Cross-currency swaps | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional amount | $ 1,262.5 | € 1,184.2 | ||
Euro to U.S. dollar exchange rate for translation | € / $ | 1.06 | 1.07 | ||
Cash Flow Hedging | Cross-currency swaps | Designated as Hedging Instrument | Level 2 | ||||
Derivative [Line Items] | ||||
Notional amount | $ 538.5 | $ 549.7 | ||
Fair value of derivative assets | 10.3 | 15.8 | ||
Fair value of derivative liabilities | 0 | 2.2 | ||
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Level 2 | ||||
Derivative [Line Items] | ||||
Notional amount | 1,964.9 | 1,980.5 | ||
Fair value of derivative assets | 187.7 | 173 | ||
Fair value of derivative liabilities | 0 | 0 | ||
Net Investment Hedging | Cross-currency swaps | Designated as Hedging Instrument | Level 2 | ||||
Derivative [Line Items] | ||||
Notional amount | 690.3 | 704.6 | ||
Fair value of derivative assets | 13.3 | 20.3 | ||
Fair value of derivative liabilities | $ 0 | $ 0.7 |
Derivatives and Hedging - Sum_2
Derivatives and Hedging - Summary of the Gains (Losses) Recognized within Earnings Related to Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | ||||
Revenue | $ 1,069.7 | $ 1,033.2 | $ 3,153.8 | $ 3,051.4 |
Interest Expense | 44 | 35.6 | 135.4 | 104.1 |
Other Income (Expense), Net | 6.3 | 3.1 | 35.7 | 0.8 |
Reclassification out of Accumulated Other Comprehensive Income | Total hedges | ||||
Derivative [Line Items] | ||||
Revenue | 3.8 | 2.3 | 13.5 | 0.9 |
Interest Expense | 23.3 | 8.7 | 64.9 | 6.6 |
Other Income (Expense), Net | 17.4 | 35.2 | 6.8 | 88 |
Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Total hedges | 28.8 | 145.6 | (12.2) | 327.5 |
Foreign exchange forward contracts | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges | ||||
Derivative [Line Items] | ||||
Revenue | 3.8 | 2.3 | 13.5 | 0.9 |
Interest Expense | 0 | 0 | 0 | 0 |
Other Income (Expense), Net | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | 8.7 | 24.2 | (7.2) | 48 |
Cross-currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges | Euro-Denominated Intercompany Loan | ||||
Derivative [Line Items] | ||||
Other Income (Expense), Net | (17.4) | (34.9) | (6.9) | (87.8) |
Cross-currency swaps | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges | ||||
Derivative [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Interest Expense | 2.4 | 2.7 | 7.2 | 12.3 |
Other Income (Expense), Net | 17.4 | 35.2 | 6.8 | 88 |
Cross-currency swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | (7.8) | (0.5) | (12.4) | 42.9 |
Cross-currency swaps | Net Investment Hedging | Reclassification out of Accumulated Other Comprehensive Income | Net investment hedges | ||||
Derivative [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Interest Expense | 3.1 | 3.6 | 9.4 | 7.9 |
Other Income (Expense), Net | 0 | 0 | 0 | 0 |
Cross-currency swaps | Net Investment Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | 12.3 | 43.7 | (7) | 65.3 |
Interest rate swaps | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges | ||||
Derivative [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Interest Expense | 17.8 | 2.4 | 48.3 | (13.6) |
Other Income (Expense), Net | 0 | 0 | 0 | 0 |
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | $ 15.6 | $ 78.2 | $ 14.4 | $ 171.3 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) € in Millions | 1 Months Ended | |||
Aug. 31, 2020 USD ($) | Apr. 30, 2017 USD ($) | Sep. 30, 2023 USD ($) | Apr. 30, 2017 EUR (€) | |
Derivative [Line Items] | ||||
Net deferred losses from cash flow hedges | $ 102,200,000 | |||
Euro-Denominated Intercompany Loan | ||||
Derivative [Line Items] | ||||
Base rate | 3% | 3% | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange forward contracts | ||||
Derivative [Line Items] | ||||
Derivative remaining maturity | 24 months | |||
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | ||||
Derivative [Line Items] | ||||
Derivative contract term | 5 years | |||
Notional amount | $ 1,262,500,000 | € 1,184.2 | ||
Fixed rate | 4.81% | 4.81% | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap Agreement - April 2017 | ||||
Derivative [Line Items] | ||||
Derivative contract term | 5 years | |||
Notional amount | $ 1,262,500,000 | |||
Fixed rate | 5.44% | 5.44% | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap Agreement - August 2020 | ||||
Derivative [Line Items] | ||||
Derivative contract term | 7 years | |||
Notional amount | $ 750,000,000 | |||
Fixed rate | 0.705% | 4.81% | 4.81% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Operating lease, remaining weighted average lease term | 6 years 8 months 12 days |
Operating lease, weighted average discount rate | 5.30% |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease costs | $ 8.9 | $ 11.9 | $ 28.3 | $ 34.3 |
Variable lease costs | 3.6 | 3.8 | 11.2 | 8.8 |
Sublease income | (3.6) | (2.5) | (8.1) | (6.2) |
Total net lease cost | $ 8.9 | $ 13.2 | $ 31.4 | $ 36.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Estimated loss provision for settlement | $ 8.1 | |
Indirect Taxation | ||
Loss Contingencies [Line Items] | ||
Accrual for estimated indirect tax liabilities | $ 21.7 | $ 18.9 |
Restructuring and Other Charg_3
Restructuring and Other Charges and Disposition of Businesses and Related Assets - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Feb. 28, 2023 employee | Sep. 30, 2023 USD ($) employee | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other | $ 12.5 | $ 10.6 | $ 72.2 | $ 21.9 | |||
Restructuring and other | [1] | 9.8 | $ 5.2 | 79.6 | $ 14.8 | ||
Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments related to restructuring | 31.4 | ||||||
Restructuring Plan | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in current workforce, percentage | 8% | ||||||
Restructuring and other | 0.8 | 34.6 | |||||
Maximum expected charges | 4.7 | 4.7 | |||||
Cash payments related to restructuring | 31.4 | ||||||
Restructuring and other | $ 17 | ||||||
Restructuring Plan | Workforce reduction | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in current workforce | employee | 550 | ||||||
Restructuring Plan | Disposition Of Assets | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Disposition of certain assets and liabilities | $ 16.8 | ||||||
Additional Restructuring Plan | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other | $ 9.2 | ||||||
Additional Restructuring Plan | Workforce reduction | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in current workforce | employee | 250 | ||||||
[1] Costs and operating expenses include equity-based compensation expense as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cost of revenue $ 0.3 $ 0.4 $ 1.1 $ 1.1 Technology and development 42.2 34.4 123.2 102.4 Marketing and advertising 7.1 7.2 21.0 21.7 Customer care 6.1 4.9 18.0 14.6 General and administrative 20.5 18.5 62.0 53.5 Restructuring and other $ — $ — $ 2.3 $ — Total equity-based compensation expense $ 76.2 $ 65.4 $ 227.6 $ 193.3 |
Restructuring and Other Charg_4
Restructuring and Other Charges and Disposition of Businesses and Related Assets - Summary of the Activity in the Restructuring Related Accruals (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Additional Paid in Capital | $ 2,170 | $ 1,912.6 |
Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Accrued restructuring costs as of December 31, 2022 | 0 | |
Restructuring costs incurred during the nine months ended September 30, 2023 | 41.5 | |
Amount paid during the nine months ended September 30, 2023 | (31.4) | |
Accrued restructuring costs as of September 30, 2023 | 10.1 | |
Additional Paid in Capital | $ 2.3 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 151.8 |
Unrecognized tax benefits that if fully recognized would decrease the effective tax rate | $ 45.9 |
Income Per Share - Reconciliati
Income Per Share - Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net income | $ 131 | $ 83.1 | $ 47.4 | $ 100 | $ 90.5 | $ 68.6 | $ 261.5 | $ 259.1 |
Less: net income attributable to non-controlling interests | 0.3 | 0.2 | 0.6 | 0.5 | ||||
Net income attributable to GoDaddy Inc. | $ 130.7 | $ 99.8 | $ 260.9 | $ 258.6 | ||||
Class A Common Stock | ||||||||
Denominator: | ||||||||
Weighted-average shares of Class A common stock outstanding—basic (in shares) | 145,484 | 156,393 | 150,614 | 160,150 | ||||
Weighted-average shares of Class A Common stock outstanding—diluted (in shares) | 147,291 | 158,418 | 153,303 | 162,665 | ||||
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic (in USD per share) | $ 0.90 | $ 0.64 | $ 1.73 | $ 1.61 | ||||
Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (in USD per share) | $ 0.89 | $ 0.63 | $ 1.71 | $ 1.59 | ||||
Class B Common Stock | ||||||||
Denominator: | ||||||||
Effect of dilutive securities (in shares) | 307 | 312 | 308 | 313 | ||||
Stock options | ||||||||
Denominator: | ||||||||
Effect of dilutive securities (in shares) | 405 | 616 | 462 | 712 | ||||
RSUs, PSUs and ESPP shares | ||||||||
Denominator: | ||||||||
Effect of dilutive securities (in shares) | 1,095 | 1,097 | 1,919 | 1,490 |
Income Per Share - Summary of W
Income Per Share - Summary of Weighted Average Potentially Dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 2,365 | 738 | 783 | 2,803 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 152 | 218 | 163 | 246 |
RSUs, PSUs and ESPP shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 2,213 | 520 | 620 | 2,557 |
Income Per Share - Narrative (D
Income Per Share - Narrative (Details) | Sep. 30, 2023 shares |
Class B Common Stock | |
Class of Stock [Line Items] | |
Conversion feature of Class B common stock, number of Class A common shares (in shares) | 1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Segment Reporting [Abstract] | ||||||||
Number of reportable segments | segment | 2 | |||||||
Number of operating segments | segment | 2 | |||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | $ 1,069.7 | $ 1,033.2 | $ 3,153.8 | $ 3,051.4 | ||||
Unallocated corporate overhead | (66.9) | (75) | (207.7) | (219.1) | ||||
Depreciation and amortization | (40.6) | (48.5) | (132.6) | (145.1) | ||||
Equity-based compensation expense | (76.2) | (65.4) | (225.3) | (193.3) | ||||
Interest expense | (39.8) | (32.1) | (115.2) | (98.9) | ||||
Acquisition-related expenses | 1 | (8.9) | (8.7) | (27.2) | ||||
Restructuring and other | (12.5) | (10.6) | (72.2) | (21.9) | ||||
Income before income taxes | 127.9 | 97.2 | 256.3 | 260.6 | ||||
Benefit (provision) for income taxes | 3.1 | 2.8 | 5.2 | (1.5) | ||||
Net income | 131 | $ 83.1 | $ 47.4 | 100 | $ 90.5 | $ 68.6 | 261.5 | 259.1 |
Adjustment to previously recognized acquisition | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Acquisition-related expenses | 6 | 6 | ||||||
Restructuring Plan | Equity Based Compensation Expense | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and other | (2.3) | |||||||
Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 1,069.7 | 1,033.2 | 3,153.8 | 3,051.4 | ||||
Total Segment EBITDA | 362.9 | 337.7 | 1,018 | 966.1 | ||||
Applications & commerce | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 363.3 | 326 | 1,053 | 946.3 | ||||
Applications & commerce | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 363.3 | 326 | 1,053 | 946.3 | ||||
Total Segment EBITDA | 154.3 | 135.6 | 429.4 | 387.2 | ||||
Core platform | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 706.4 | 707.2 | 2,100.8 | 2,105.1 | ||||
Core platform | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 706.4 | 707.2 | 2,100.8 | 2,105.1 | ||||
Total Segment EBITDA | $ 208.6 | $ 202.1 | $ 588.6 | $ 578.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - AOCI Activity in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ (664.5) | $ (329.3) | $ 83.2 |
Other comprehensive income (loss) before reclassifications | (90) | 149.3 | |
Amounts reclassified from AOCI | 80.9 | 95.5 | |
Other comprehensive income (loss) | (9.1) | 244.8 | |
Ending balance | (973.4) | (973.4) | (276) |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 178.4 | (38.7) | |
Ending balance | 169.3 | 169.3 | 206.1 |
AOCI Attributable to Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 162.4 | 178 | (38.6) |
Ending balance | 168.9 | 168.9 | 205.7 |
Net investment hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (75) | (52.9) | |
Other comprehensive income (loss) before reclassifications | 0.4 | (19.9) | |
Amounts reclassified from AOCI | (4.3) | (4.3) | 0 |
Other comprehensive income (loss) | (3.9) | (19.9) | |
Ending balance | (78.9) | (78.9) | (72.8) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 253.4 | 14.2 | |
Other comprehensive income (loss) before reclassifications | (90.4) | 169.2 | |
Amounts reclassified from AOCI | 85.2 | 95.5 | |
Other comprehensive income (loss) | (5.2) | 264.7 | |
Ending balance | 248.2 | 248.2 | 278.9 |
AOCI Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Ending balance | $ (0.4) | $ (0.4) | $ (0.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | $ (80.9) | $ (95.5) | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | $ 4.3 | $ 4.3 | $ 0 |