GoDaddy Inc. (NYSE:GDDY) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 05:00 pm ET

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GoDaddy Inc. (NYSE:GDDY) Q3 2019 Earnings Conference Call Transcript

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Presentation
Executive
Raymond E. Winborne

with 2018.

On the balance sheet, we finished Q3 with $990 million in cash and short-term investments. Net debt landed at $1.4 billion or about 2x net leverage on a trailing 12 month basis. Since our last earnings call, we deployed $459 million in capital repurchasing 7.1 million shares of our common stock at an average price of just under $65 a share.

This repurchase represents nearly 4% reduction in fully diluted shares outstanding. Additionally, the Board of Directors recently approved a repurchase authorization for an incremental $500 million, bringing our total repurchase capacity to $541 million. On the debt side of the capital structure, in October, we refinanced $1.85 billion in term loans, reducing our interest spread by 25 basis points and lowering annual cash interest payments by roughly $4.6 million dollars. As our cash flow and balance sheet capacity expands, you'll continue to see us be thoughtful stewards of capital, with the ultimate goal of prudently driving attractive growth and levered free cash flow for our shareholders.

With that, let's turn to our outlook for the rest of 2018. We are updating our full year revenue guidance to $2.98 billion to $2.99 billion, or full year growth of 12% at the midpoint, squarely where we expected, as we entered 2019.

For full year unlevered free cash flow, we are adjusting our range slightly to $730 million to $740 million, reflecting continued currency headwinds on bookings. The midpoint represents more than a point of margin expansion versus 2018, reflecting our ability to balance both top line growth and margins. Based on today's interest rates, we expect approximately $80 million of cash interest in 2019, yielding slightly faster growth in levered free cash flow.

In closing, we have a distinctive value proposition that combines our products, platform and guidance to uniquely serve our customers, and help them grow their business, while minimizing complexity. There is a huge opportunity in serving the needs of the everyday entrepreneur, and we're excited about delivering on the promise of making the GoDaddy experience seamlessly intuitive.

With that, operator, let's open up the call for questions.