Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
GoDaddy's free cash flow improved in the third quarter, supported by strong operating cash generation and controlled capital spending. The free cash flow margin expanded compared to both the prior quarter and the same quarter last year.
- Revenue remained stable while operating cash flow increased significantly, driving free cash flow higher. Capital expenditure edged up from the prior quarter but remained modest, preserving cash conversion.
- Compared to the prior quarter, operating cash flow and free cash flow both improved, with the free cash flow margin rising. Versus the same quarter a year ago, free cash flow was higher, reflecting stronger cash generation and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$350.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$355.2M
Cash generated by operations before capital spending.
CapEx
$5.0M
Capital spending and related asset purchases.
FCF margin
30.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-12-31 | $1.1B | $297.7M | $4.0M | $293.7M | 26.7% |
| 2024-03-31 | $1.1B | $297.2M | $4.4M | $292.8M | 26.4% |
| 2024-06-30 | $1.1B | $294.8M | $2.8M | $292.0M | 26.0% |
| 2024-09-30 | $1.1B | $355.2M | $5.0M | $350.2M | 30.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow strength
The increase in operating cash flow was the primary driver behind the free cash flow improvement, more than offsetting a modest rise in capital expenditure.
Stronger operating cash flow directly boosted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable while operating cash flow increased significantly, driving free cash flow higher. Capital expenditure edged up from the prior quarter but remained modest, preserving cash conversion.
Compared to the prior quarter, operating cash flow and free cash flow both improved, with the free cash flow margin rising. Versus the same quarter a year ago, free cash flow was higher, reflecting stronger cash generation and lower capital expenditure.
Monitor capital expenditure levels, which increased slightly from the prior quarter after being relatively low.