Revenue Analysis
Total and Operating Revenue: Over the last three fiscal quarters, GDDY has shown a consistent increase in its operating and total revenue, moving from $1,036M in Q1 2023 up to $1,108M in Q1 2024. However, there was a slight variation in Q3 2023.
Gross Profit Margins: The Gross Profit has also been increasing, indicative of better cost management or higher sales efficiencies. The Gross Profit margin has improved slightly from 63% in Q1 2023 to 63% in Q1 2024, reflecting increased operational efficiency.
Cost Management
Cost of Revenue: The Cost of Revenue has trended upwards, from $386M in Q1 2023 to $415M in Q1 2024. This increase aligns with the increase in total revenue, suggesting volume-driven cost increases.
Operating Expenses: Operating Expenses have risen slightly over the periods, aligning with revenue growth, indicating controlled spending relative to business growth.
Total Expenses: There has been a minor fluctuation in Total Expenses, but it increased in the latest quarter (Q1 2024) to $910M compared to $913M in Q1 2023, possibly indicating growing operational costs.
Profitability Analysis
EBITDA: EBITDA has shown an overall upward trend, increasing from $141.9M in Q1 2023 to $221.7M in Q1 2024. This suggests improved profitability from operations before non-cash charges and finance costs.
Operating Income: Similarly, Operating Income has increased significantly, suggesting that increased revenues are effectively converted into operating profits.
Pretax Income: There has been significant variance in Pretax Income, however, indicating possible non-operational or one-time effects affecting profitability.
Net Income: The Net Income saw a drastic increase in Q4 2023 to over $1.1B, likely due to exceptional or non-recurring items. Generally, it has demonstrated variability over the quarters.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses show an increase, signifying growing asset base potentially from increased capital expenditures.
Interest Expense: Interest expenses increased in line with the rise in debt or financing activities, amounting to as much as $44M in Q3 2023 compared to earlier quarters.
Taxation
Tax Rate: There’s been a notable increase in effective tax rate, especially evident in Q1 2024. There may be changes in fiscal policies affecting these figures.
Tax Provision: The tax provision has seen unusual variations, particularly negative provisions seen in some quarters, which could indicate tax credits or reversals.
Tax Effect of Unusual Items: These have shown instances of significant tax adjustments, such as a $9.36M negative effect in Q1 2024.
Shareholder Metrics
Diluted and Basic EPS: EPS has shown substantial variance, with a peak of $8.01 Basic and $7.85 Diluted in Q4 2023. Recent quarters show a decrease, possibly affecting investor returns perspective.
Average Shares: The number of shares has been slightly increasing, diluting individual share value.
Net Income Available to Common Stockholders: This generally matches Net Income, implicating that most income is available to shareholders, reinforcing shareholder value.
Conclusion
GDDY has demonstrated growth in revenue and manages its costs relatively in line with this growth. However, fluctuations in net income due to various unusual items and one-off adjustments should be noted by investors. The increased depreciation and interest expenses indicate significant investment and financing activities. Potential investors should consider these variability factors along with overall growth trends in revenue and profitability.