Godaddy Inc (GDDY)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 403,000 | 355,800 | 253,100 | -496,400 | 125,000 |
| Revenue | US$ in thousands | 4,111,400 | 3,961,000 | 3,694,000 | 3,228,400 | 2,884,200 |
| Pretax margin | 9.80% | 8.98% | 6.85% | -15.38% | 4.33% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $403,000K ÷ $4,111,400K
= 9.80%
The pretax margin of Godaddy Inc has shown varying trends over the past five years. In 2023, the pretax margin improved to 9.49%, indicating that the company generated a higher percentage of profits before taxes relative to its total revenue. This improvement follows a positive trend since 2020, where the pretax margin was notably negative at -14.94%, indicating significant losses before tax.
The company's ability to generate profits before taxes increased steadily from 2020 to 2023, with a substantial turnaround in profitability. This improvement reflects better operational efficiency, cost control, or potentially increased revenue generation strategies implemented by the company.
The pretax margin in 2023, at 9.49%, demonstrates Godaddy Inc's ability to generate profits before accounting for tax obligations. However, further analysis, including examining the company's strategies and external factors affecting its financial performance, would provide a comprehensive understanding of the factors driving this improvement.
Peer comparison
Dec 31, 2023