GoDaddy Inc.

Previous wording

•Net cash provided by operating activities of $404.7 million, an increase of 36.2%.

Current wording

•Net cash provided by operating activities of $379.9 million, an increase of 28.9%.

Previous wording

(3)Net income for the three months ended March 31, 2025 included a one-time benefit for the recognition of an uncertain tax position of $34.6 million. Net income for the three months ended March 31, 2024 included a non-routine, non-cash benefit to income taxes of $267.4 million related to the conversion of our Desert Newco, LLC subsidiary from a partnership to a disregarded entity for U.S. income tax purposes.

Current wording

(2)Net income for the three months ended June 30, 2025 included a one-time benefit for the recognition of an uncertain tax position of $34.6 million.

Previous wording

(4)A reconciliation of Normalized EBITDA to net income, its most directly comparable GAAP financial measure, is set forth in "Reconciliation of NEBITDA" below.

Current wording

(3)A reconciliation of Normalized EBITDA to net income, its most directly comparable GAAP financial measure, is set forth in "Reconciliation of NEBITDA" below.

Previous wording

(1)The three months ended March 31, 2024 excludes $0.8 million of equity-based compensation expense associated with our restructuring activities, which is included within restructuring and other.

Current wording

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

Previous wording

Total revenue increased 7.7% due to the increases in our A&C and Core revenues, as described below:

Current wording

Total revenue increased 8.3% and 8.0% for the three and six months ended, respectively, due to the increases in our A&C and Core revenues, as described below:

Previous wording

A&C revenue grew $63.3 million, or 16.5%, for the three months ended March 31, 2025 driven by continued customer adoption of our subscription-based products.

Current wording

A&C revenue grew $58.3 million, or 14.4%, for the three months ended June 30, 2025 and $121.6 million, or 15.4%, for the six months ended June 30, 2025 due to continued customer adoption of our subscription-based products.

Previous wording

Core revenue grew $22.5 million, or 3.1%, for the three months ended March 31, 2025 driven by $24.0 million growth in domain registration and add-on revenues and $5.9 million growth in aftermarket revenue. Partially offsetting this increase was a $2.9 million decrease in hosting revenues primarily due to the disposition of certain hosting assets.

Current wording

Core revenue grew $57.3 million, or 4.0%, for the six months ended June 30, 2025 driven by $53.7 million growth in domain registration and add-on revenues and $13.2 million growth in aftermarket revenue. This increase was partially offset by a shift in sales mix as well as a $5.6 million decrease in hosting revenues related to end of life migrations away from certain products and the disposition of certain hosting assets in 2024.

Previous wording

The 7.9% increase in total bookings for the three months ended March 31, 2025, respectively, was driven by strength in domains and aftermarket, and continued customer adoption of our subscription-based A&C products, partially offset by a $10.0 million impact from changes in foreign currency exchange rates net of hedging gains from our cash flow hedging program.

Current wording

The $83.4 million, or 6.6%, increase in total bookings for the three months ended June 30, 2025 and the $187.8 million, or 7.3%, increase in total bookings for the six months ended June 30, 2025 were driven by strength in domains and aftermarket and continued customer adoption of our subscription-based A&C products. For the six months ended June 30, 2025, the increase was partially offset by a $10.6 million impact from changes in foreign currency exchange rates net of hedging gains from our cash flow hedging program.

Previous wording

The $26.0 million, or 6.3%, increase in cost of revenue for the three months ended March 31, 2025 was driven by the increases in revenue described above.

Current wording

The $34.0 million, or 8.3%, increase in cost of revenue for the three months ended June 30, 2025 and the $60.0 million, or 7.3%, increase in cost of revenue for the six months ended June 30, 2025 were driven by the increases in revenue described above.

Previous wording

There was no material change in technology and development expenses for the three months ended March 31, 2025.

Current wording

The $8.4 million, or 4.1%, increase in technology and development expenses for the three months ended June 30, 2025 and the $10.8 million, or 2.6%, increase in technology and development expenses for the six months ended June 30, 2025, were attributable to a $6.8 million and $9.1 million increase, respectively, in personnel costs driven by higher average headcount associated with our continued investment in product development.

Previous wording

The $12.6 million, or 14.4%, increase in marketing and advertising expenses for the three months ended March 31, 2025 was attributable to an increase in discretionary advertising spend in support of our strategic initiatives, including broader awareness of our GoDaddy Airo experience.

Current wording

The $12.8 million, or 7.1%, increase in marketing and advertising expenses for the six months ended June 30, 2025 was attributable to an increase in discretionary advertising spend in support of our strategic initiatives, including broader awareness of our GoDaddy Airo experience.

Previous wording

There was no material change in customer care expenses for the three months ended March 31, 2025.

Current wording

There was no material change in customer care expenses for the three and six months ended June 30, 2025.

Previous wording

There was no material change in general and administrative expenses for the three months ended March 31, 2025.

Current wording

There was no material change in general and administrative expenses for the three and six months ended June 30, 2025.

Previous wording

Restructuring and other was $2.1 million for the three months ended March 31, 2025, which related to severance and employee benefits incurred pursuant to restructuring activities. Restructuring and other was $22.4 million for the three months ended March 31, 2024, which included $11.1 million of severance and employee benefits incurred pursuant to restructuring activities and $5.8 million of expense related to the abandonment of certain operating leases, as further discussed in Note 13 to the financial statements.

Current wording

Restructuring and other was $2.4 million for the six months ended June 30, 2025, which related to severance and employee benefits incurred pursuant to restructuring activities. Restructuring and other was $29.3 million for the six months ended June 30, 2024, which includes $17.5 million of costs incurred pursuant to restructuring activities and $6.0 million of expense related to the abandonment of certain operating leases.

Previous wording

There was no material change in interest expense for the three months ended March 31, 2025.

Current wording

There was no material change in interest expense for the three and six months ended June 30, 2025.

Previous wording

There was no material change in other income (expense), net for the three months ended March 31, 2025.

Current wording

There was no material change in other income (expense), net for the three and six months ended June 30, 2025.

Previous wording

The $35.0 million, or 21.6%, increase in A&C Segment EBITDA for the three months ended March 31, 2025 was attributed to a $63.3 million increase in revenue as described above. This increase was partially offset by a $28.3 million increase in other segment items driven by an increase in cost of revenue and operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to the increase in revenue, higher marketing costs and higher technology and development costs.

Current wording

The $64.2 million, or 19.0%, increase in A&C Segment EBITDA for the six months ended June 30, 2025 was attributed to a $121.6 million increase in revenue as described above. This increase was partially offset by a $57.4 million increase in other segment items driven by higher cost of revenue attributable to an increase in revenue as well as operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to higher marketing costs and higher technology and development costs.

Previous wording

The $18.6 million, or 8.6%, increase in Core Segment EBITDA for the three months ended March 31, 2025 was attributed to a $22.5 million increase in revenue as described above. This increase was partially offset by a $3.9 million increase in other segment items driven by an increase in cost of revenue and marketing costs (excluding equity-based compensation expense) partially offset by lower care and technology and development costs (excluding equity-based compensation expense).

Current wording

The $45.2 million, or 10.4%, increase in Core Segment EBITDA for the six months ended June 30, 2025 was attributed to a $57.3 million increase in revenue as described above. This increase was partially offset by a $12.1 million increase in other segment items driven by an increase in cost of revenue and marketing costs (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) partially offset by lower care and technology and development costs.

Previous wording

Our principal sources of liquidity have been cash flow generated from operations and long-term debt borrowings. Our principal uses of cash have been to fund operations and capital expenditures, to make mandatory principal and interest payments on our long-term debt and to effectuate our share repurchase program. Our liquidity position also benefits from U.S. and state DTAs such that we have not historically paid a significant amount of U.S. federal or state income taxes.

Current wording

Our principal sources of liquidity have been cash flow generated from operations and long-term debt borrowings. Our principal uses of cash have been to fund operations and capital expenditures, to make mandatory principal and interest payments on our long-term debt and to effectuate our share repurchase programs. Our liquidity position also benefits from U.S. and state DTAs such that we have not historically paid a significant amount of U.S. federal or state income taxes.

Previous wording

Net cash provided by operating activities increased $107.5 million from $297.2 million during the three months ended March 31, 2024 to $404.7 million during the three months ended March 31, 2025, driven by the growth in total bookings. Bookings growth was due to strong adoption across our A&C product suite, as well as continued strength in domains and aftermarket performance. The increase was also driven by lower restructuring related payments as well as lower technology and development related spending.

Current wording

Net cash provided by operating activities increased $192.6 million from $592.0 million during the six months ended June 30, 2024 to $784.6 million during the six months ended June 30, 2025, driven by the growth in total bookings. Bookings growth was due to strong adoption across our A&C product suite, as well as continued strength in domains and aftermarket performance. The increase was also driven by lower restructuring related payments.

Previous wording

Net cash provided by investing activities decreased $47.3 million from $43.7 million net cash provided during the three months ended March 31, 2024 to $3.6 million net cash used during the three months ended March 31, 2025, due to maturities of short-term investments totaling $40.0 million as well as proceeds from dispositions of certain assets and liabilities of our hosting business in the three months ended March 31, 2024.

Current wording

Net cash provided by investing activities decreased $50.9 million from $40.9 million net cash provided during the six months ended June 30, 2024 to $10.0 million netcash used during the six months ended June 30, 2025, due to maturities of short-term investments totaling$40.0 million as well as proceeds from dispositions of certain assets and liabilities of our hosting business in the six months ended June 30, 2024.

Previous wording

Our financing activities generally consist of long-term debt borrowings, the repayment of principal on long-term debt, stock option exercises, ESPP proceeds and share repurchases.

Current wording

Our financing activities generally consist of long-term debt borrowings, the repayment of principal on long-term debt, stock option exercises, ESPPs proceeds and share repurchases.

Previous wording

Net cash used in financing activities increased $637.2 million from $135.0 million during the three months ended March 31, 2024 to $772.2 million during the three months ended March 31, 2025, primarily due to a $639.1 million increase in share repurchases.

Current wording

Net cash used in financing activities increased $135.5 million from $646.2 million during the six months ended June 30, 2024 to $781.7 million during the six months ended June 30, 2025, primarily due to a $143.3 million increase in share repurchases.

Previous wording

Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions. As of March 31, 2025, we were in compliance with all such covenants and had $998.7 million available for borrowing under the Revolver.

Current wording

Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions. As of June 30, 2025, we were in compliance with all such covenants and had $994.7 million available for borrowing under the Revolver.

Previous wording

As discussed in Note 4 to our financial statements, we are authorized to repurchase up to $4,000.0 million of our Class A common stock. During the three months ended March 31, 2025, we entered into two ASRs to repurchase shares of our Class A common stock in exchange for upfront payments totaling $767.4 million. During April 2025, the ASRs were settled in full with the delivery of 4,359 shares of Class A common stock at a weighted average price of$176.02 per share. Upon completion of the ASRs, no amount was remaining for repurchases under the current board authorization. Cumulatively, we have repurchased 43,738 shares at an average price of $91.45, representing a gross reduction of over 25% in fully diluted shares from those outstanding at the January 2022 inception of the authorization.

Current wording

As discussed in Note 4 to our financial statements, the board previously authorized the repurchase of up to $4,000 million of our Class A common stock. During the three months ended March 31, 2025, we executed two ASRs totaling $767.4 million in upfront payments, fully utilizing the amount remaining under this board authorization. These ASRs were fully settled in April 2025 with the delivery of approximately 4.4 million shares at a weighted average price of $176.02 per share. Upon completion of the ASRs, no amount was remaining for repurchases under this board authorization.

Previous wording

In April 2025, our board of directors approved the repurchase of up to an additional $3,000 million of our Class A common stock through the end of 2027 as further discussed in Note 18 to the financial statements.

Current wording

Following the execution of the share repurchase authorization described above, in April 2025, the board approved the repurchase of up to an additional $3,000 million of our Class A common stock through the end of 2027 as further discussed in Note 4 to the financial statements. During the six months ended June 30, 2025, we repurchased a total of approximately 0.2 million shares of our Class A common stock in the open market for an aggregate purchase price of $27.0 million. As of June 30, 2025, we had $2,973.0 million of remaining authorization available for repurchases.

Previous wording

We prepare our financial statements in accordance with GAAP, and in doing so, we make estimates, assumptions and judgments affecting the reported amounts of assets, liabilities, revenues and expenses, as well as the related disclosure of contingent assets and liabilities. We base our estimates, assumptions and judgments on historical experience and on various other factors we believe to be reasonable under the circumstances, and we evaluate these estimates, assumptions and judgments on an ongoing basis. Different assumptions and judgments could change the estimates used in the preparation of our financial statements, which, in turn, could change our results from those reported. We refer to estimates, assumptions and judgments of this type as our critical accounting policies and estimates, which we discussed in our 2024 Form 10-K. We review our critical accounting policies and estimates with the audit and finance committee of our board of directors on an annual basis.

Current wording

We prepare our financial statements in accordance with GAAP, and in doing so, we make estimates, assumptions and judgments affecting the reported amounts of assets, liabilities, revenues and expenses, as well as the related disclosure of contingent assets and liabilities. We base our estimates, assumptions and judgments on historical experience and on various other factors we believe to be reasonable under the circumstances, and we evaluate these estimates, assumptions and judgments on an ongoing basis. Different assumptions and judgments could change the estimates used in the preparation of our financial statements, which, in turn, could change our results from those reported. We refer to estimates, assumptions and judgments of this type as our critical accounting policies and estimates, which we discussed in our 2024 Form 10-K. We review our critical accounting policies and estimates with the audit and risk committee of our board of directors on an annual basis.