GoDaddy Proves Resilient Amid Tapering Pandemic Tailwinds and Challenging Macroeconomic Conditions

GoDaddy delivered a sound first-quarter fiscal 2022 result amid a tapering of pandemic-era digitization tailwinds, geopolitical unrest, and challenging macroeconomic conditions. Group revenue increased 11% year on year, which we believe comfortably outpaced domain registration growth, implying higher average product uptake per customer. This result was supported by strong demand for website design, email attachment, and aftermarket domain sales. Adjusted EBITDA margin expansion was ahead of our expectations, increasing an impressive 120 basis points to 22.5%. This was underpinned by leverage on marketing expenses and partly offset by continued investment in product innovation, return-to-office expenses, and inflationary pressures.