Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - GoDaddy reported revenue of $1.27 billion for the quarter ended September 2025, reflecting a 10.3% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $1.51, up from $1.32 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.23 billion, resulting in a surprise of +2.79% [1] - EPS also surpassed expectations with a surprise of +0.67%, compared to the consensus estimate of $1.50 [1] Key Metrics - Total bookings reached $1.35 billion, slightly above the average estimate of $1.33 billion from seven analysts [4] - The total number of customers at the end of the period was 20.41 million, which was below the average estimate of 20.59 million based on five analysts [4] - Revenue from Applications & Commerce was $481 million, compared to the average estimate of $483.99 million, marking a year-over-year increase of +13.7% [4] - Revenue from the Core Platform was $784.3 million, exceeding the estimated $747.15 million, representing an +8.3% change year-over-year [4] - Segment EBITDA for the Core Platform was $258.5 million, surpassing the average estimate of $247.98 million [4] - Segment EBITDA for Applications & Commerce was $219.9 million, slightly below the average estimate of $224.99 million [4] Stock Performance - GoDaddy's shares have returned -4.2% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - GoDaddy (GDDY) reported quarterly earnings of $1.51 per share, exceeding the Zacks Consensus Estimate of $1.50 per share, and up from $1.32 per share a year ago, representing an earnings surprise of +0.67% [1] - The company achieved revenues of $1.27 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.79% and increasing from $1.15 billion year-over-year [2] - GoDaddy has outperformed consensus revenue estimates four times over the last four quarters [2] Earnings Performance - GoDaddy has surpassed consensus EPS estimates two times in the last four quarters [2] - The company had a previous earnings expectation of $1.34 per share, but reported $1.41, resulting in a surprise of +5.22% [1] Stock Performance - GoDaddy shares have declined approximately 35.9% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The current Zacks Rank for GoDaddy is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $1.28 billion, and for the current fiscal year, it is $6.06 on revenues of $4.92 billion [7] - The outlook for the Internet - Delivery Services industry, where GoDaddy operates, is currently in the top 22% of Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Total revenue for Q3 2025 reached $1,265.3 million, a 10.3% increase from $1,147.6 million in Q3 2024[19] - Net income for Q3 2025 was $210.5 million, compared to $190.5 million in Q3 2024, reflecting a growth of 10.5%[19] - Operating income for the nine months ended September 30, 2025, was $810.3 million, up from $637.9 million in the same period of 2024, representing a 27% increase[19] - Comprehensive income for the nine months ended September 30, 2025, was $532.7 million, down from $717.1 million in the same period of 2024[21] - Net income for the nine months ended September 30, 2025, was $629.9 million, compared to $738.3 million for the same period in 2024, reflecting a decrease of approximately 14.7%[30] - Total revenue for the three months ended September 30, 2025, was $1,265.3 million, an increase of 10.3% compared to the same period in 2024[116] - Net income for the three months ended September 30, 2025, was $210.5 million, reflecting a 10.5% increase year-over-year[116] Cash and Liquidity - Cash and cash equivalents decreased to $923.7 million as of September 30, 2025, down from $1,089.0 million at the end of 2024[17] - The company reported a net cash used in financing activities of $1,379.4 million for the nine months ended September 30, 2025, compared to $675.9 million in 2024, reflecting an increase of about 104.5%[30] - Cash and cash equivalents at the end of the period on September 30, 2025, were $923.7 million, up from $767.1 million at the end of September 2024, marking an increase of approximately 20.4%[30] - Net cash provided by operating activities was $444.2 million for Q3 2025, reflecting a significant increase of 25.1%[116] - The company experienced a net cash provided by operating activities of $1,228.8 million for the nine months ended September 30, 2025, compared to $947.2 million in 2024, which is an increase of approximately 29.6%[30] Assets and Liabilities - Total assets decreased to $7,984.7 million as of September 30, 2025, from $8,235.4 million at the end of 2024, a decline of 3.0%[17] - Total current liabilities increased to $3,043.3 million as of September 30, 2025, compared to $2,698.4 million at the end of 2024, marking a 12.8% rise[17] - The accumulated deficit increased to $(2,823.9) million as of September 30, 2025, compared to $(2,052.3) million at the end of 2024[17] - Long-term debt amounted to $3,835.4 million as of September 30, 2025, slightly down from $3,853.9 million at the end of 2024[70] Revenue Segments - Revenue from the Applications and Commerce (A&C) segment was $481.0 million for the three months ended September 30, 2025, compared to $423.1 million in 2024, reflecting a growth of 13.7%[43] - Core segment revenue from domains reached $595.9 million for the three months ended September 30, 2025, up from $535.9 million in 2024, marking an increase of 11.2%[43] - Applications and commerce revenue grew by $57.9 million, or 13.7%, for Q3 2025, and $179.5 million, or 14.8%, for the nine months ended September 30, 2025[131] - Core platform revenue increased by $59.8 million, or 8.3%, for Q3 2025, driven by growth in aftermarket and domain registration revenues[133] Share Repurchase and Equity - The company repurchased Class A common stock totaling $1,383.0 million during the nine months ended September 30, 2025, compared to $668.1 million in the same period of 2024, which is an increase of about 106.5%[30] - The company authorized a total of $4,000.0 million for share repurchases, with $767.4 million utilized for accelerated share repurchase agreements during the three months ended March 31, 2025[59] - The company repurchased approximately 8.6 million shares of Class A common stock for a total purchase price of $1,392.6 million, with $2,374.7 million remaining available for repurchases as of September 30, 2025[61] Expenses - Cost of revenue for Q3 2025 was $468.3 million, representing 37.0% of total revenue, up from 35.5% in Q3 2024[130] - Technology and development expenses for the three months ended September 30, 2025 were $210.5 million, a slight increase of $5.4 million, or 2.6%[141] - Marketing and advertising expenses increased by $7.6 million, or 9.0%, for the three months ended September 30, 2025, totaling $92.0 million, due to increased discretionary advertising spend[144] - General and administrative expenses decreased by $3.5 million, or 3.7%, for the three months ended September 30, 2025, totaling $91.3 million[148] Tax and Restructuring - The effective tax rate for the nine months ended September 30, 2025, was 13.3%, influenced by a one-time benefit of $34.6 million related to an uncertain tax position[97] - The total amount of gross unrecognized tax benefits as of September 30, 2025, was $171.9 million, with $112.0 million potentially decreasing the effective tax rate if fully recognized[100] - The company recognized $7.9 million of pre-tax restructuring charges during the nine months ended September 30, 2025, compared to $17.0 million in the same period of 2024[94][95] Market and Competition - The company faces significant competition, and its ability to maintain or improve its competitive position is uncertain due to various market factors[202] - The company is exposed to risks associated with the use and development of AI technologies, which may lead to increased costs and regulatory scrutiny[209] - Legal and regulatory frameworks regarding AI are rapidly evolving, and compliance with these regulations may increase operating expenses[213] Operational Insights - The company has experienced growth due to sustained subscription growth and strong levels of subscription renewals, with lower costs associated with renewals compared to acquiring new customers[204] - The company launched GoDaddy Airo in 2023, enhancing its AI-powered experience with new features like Airo Plus Site Optimizer and Same-Day Payouts[207]

Financial Data and Key Metrics Changes - GoDaddy achieved a total revenue growth of 10% year-over-year, reaching $1.3 billion, surpassing the high end of the guided range [17][18] - ANC (Annualized Net Customer) bookings grew by 14%, contributing to a total bookings increase of 9% to $1.4 billion [18][19] - Free cash flow increased by 21% to $440 million, reflecting strong operational performance [16][18] - The normalized EBITDA margin was maintained at 32%, with normalized EBITDA growing 11% to $409 million [18][21] Business Line Data and Key Metrics Changes - The high-margin ANC segment saw a revenue increase of 14% to $481 million, driven by solid adoption of subscription solutions [18] - The core platform segment delivered an 8% revenue growth to $784 million, supported by a 28% growth in aftermarket and a 7% growth in primary domains [18] - The $500+ customer cohort now represents approximately 10% of the customer base, contributing to a 10% increase in ARPU (Average Revenue Per User) to $237 [16][17] Market Data and Key Metrics Changes - International revenue grew by 14%, primarily driven by strength in both primary and secondary domain markets [17] - Retention rates remained stable at 85%, with total customers increasing sequentially to 20.4 million [17][18] Company Strategy and Development Direction - GoDaddy is focusing on the evolution of its Aero platform from generative AI to agentic AI, launching new agents to assist customers in various tasks [4][5] - The company is committed to creating an agentic open internet, enhancing customer experiences through AI-powered agents [4][10] - Strategic initiatives include pricing and bundling to provide greater value and choice to customers, and a seamless experience to improve conversion and renewal rates [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of micro-business owners and their continued engagement with GoDaddy's services [81][82] - The company raised its full-year 2025 revenue guidance to approximately $4.93 to $4.95 billion, reflecting ongoing strength across the business [19][21] - Management highlighted the importance of AI in driving operational efficiencies and enhancing customer engagement [61][63] Other Important Information - GoDaddy has repurchased 9 million shares for a total of $1.4 billion year-to-date, demonstrating a commitment to shareholder returns [16] - The company is on track to exceed its investor day North Star commitment of a 20% CAGR (Compound Annual Growth Rate) [16] Q&A Session Summary Question: Impact of AI and agentic services on domains and websites - Management believes that AI and agentic AI will automate customer journeys, leading to an increase in the creation of websites and demand for domains [24][26] Question: Customer base growth and metrics - The total customer account showed slight sequential growth, with a focus on high-intent customers driving ARPU growth [30] Question: Rollout of Aero.ai and its integration - Aero.ai is built on the GoDaddy software platform, providing a seamless experience for existing customers and linking to the GoDaddy ecosystem [34][35] Question: Drivers of strengthening customer cohort dynamics - The high-intent customer cohort is attaching to more products at a higher rate, contributing to bookings and revenue growth [37][38] Question: AI investments and profitability - Investments in AI are being offset by efficiencies gained from internal use cases, with a focus on maintaining operational discipline [61][63] Question: Aftermarket performance - The company experienced strong performance in the aftermarket, particularly in high-value transactions [46] Question: International growth specifics - No specific markets were highlighted, but international growth mirrored domestic performance [79]

Group 1 - GoDaddy raised its annual revenue outlook, indicating a positive growth trajectory for the company [1] - The increase in sales is attributed to the integration of artificial intelligence features into its internet hosting services [1]

Financial Performance - Total revenue grew by 10% to $1.265 billion in Q3 2025[39, 57] - Applications & Commerce (A&C) revenue increased by 14% to $0.5 billion[39, 57] - Core Platform revenue grew by 8% to $0.8 billion[39, 57] - NEBITDA margin reached 32%[9, 40] - Free cash flow increased by 21% to $440 million[35, 45, 57] Growth Drivers and Initiatives - A&C bookings growth contributed 20%[33] - Airo platform is evolving from Generative AI to Agentic AI[12, 15, 22, 27] - Airo customers are spending $500+ annually, representing ~10% of the customer base[36] - ARPU (Average Revenue Per User) grew by 10% in Q3[36] Future Outlook - The company raised full year revenue guide to 8% growth[35] - The company expects approximately $1.6 billion in free cash flow for the full year 2025[56]

Financial Performance - Total revenue for Q3 2025 was $1.3 billion, representing a 10% year-over-year increase[5] - Applications and Commerce (A&C) revenue grew 14% year-over-year to $481.0 million[5] - Operating income increased by 17% year-over-year to $296.7 million, with a margin of 23%[5] - Net cash provided by operating activities was $444.2 million, up 25% year-over-year[5] - Free cash flow reached $440.5 million, reflecting a 21% year-over-year growth[5] - Total revenue for Q3 2025 was $1,265.3 million, a 10.3% increase from $1,147.6 million in Q3 2024[31] - Net income for the nine months ended September 30, 2025, was $629.9 million, compared to $738.3 million for the same period in 2024, reflecting a decrease of 14.7%[35] - Net income for Q3 2025 was $210.5 million, compared to $190.5 million in Q3 2024, representing a growth of 7.5%[36] - NEBITDA for Q3 2025 reached $408.6 million, up from $366.5 million in Q3 2024, indicating an increase of 11.5%[36] - Free cash flow for the nine months ended September 30, 2025, was $1,243.3 million, compared to $1,013.5 million for the same period in 2024, reflecting a growth of 22.7%[39] - Total debt as of September 30, 2025, was $3,835.4 million, with net debt standing at $2,911.7 million after accounting for cash and cash equivalents[38] - The company reported a NEBITDA margin of 32.3% for Q3 2025, slightly up from 31.9% in Q3 2024[36] - The net income margin for Q3 2025 was 16.6%, consistent with the margin reported in Q3 2024[36] Future Expectations - GoDaddy raised its full-year revenue expectations to a range of $4.930 billion to $4.950 billion, indicating an 8% growth at the midpoint[10] - For Q4 2025, total revenue is expected to be between $1.255 billion and $1.275 billion, representing a 6% year-over-year growth at the midpoint[11] - GoDaddy expects NEBITDA margin to be approximately 33% for Q4 2025 and around 32% for the full year[12] Customer Metrics - Annualized recurring revenue (ARR) is a key operating metric that helps illustrate the scale of subscription-based services, exclusive of non-recurring revenue[26] - Average revenue per user (ARPU) is calculated as total revenue divided by the average number of customers, providing insight into the company's ability to sell additional products[27] - Total customers increased, contributing to the revenue base and overall business scale[28] Shareholder Activities - GoDaddy repurchased 9.0 million shares for an aggregate purchase price of $1.4 billion year-to-date through October 28, 2025[8] - Total shares outstanding decreased to 137,391 thousand as of September 30, 2025, down from 143,964 thousand in 2024[41] Operational Efficiency - The NEBITDA margin, a supplemental measure of operating performance, is calculated as NEBITDA to revenue ratio, providing insights into operational efficiency[23] - The company launched five new Airo agents to enhance customer service capabilities[5] - The company reported a restructuring-related expense of $5.5 million in Q3 2025, compared to $0.4 million in Q3 2024, indicating increased restructuring activities[31] - Cash paid for restructuring and other charges totaled $21.3 million for the nine months ended September 30, 2025, down from $62.4 million in 2024[40] - The company incurred $241.0 million in equity-based compensation expense for the nine months ended September 30, 2025, compared to $221.6 million in the same period of 2024[36] Product and Service Development - GoDaddy's AI-powered experience, GoDaddy Airo, aims to enhance small business growth by facilitating online presence and sales[29] - Constant currency revenue for Q3 2025 was $1,265.5 million, with bookings at $1,353.3 million after adjustments[42] - Net debt as of September 30, 2025, was defined as total debt less cash and cash equivalents, which is crucial for assessing financial flexibility[25]

Core Insights - GoDaddy Inc. reported its third quarter 2025 financial results on October 30, 2025 [1][6]. Group 1: Financial Results - The financial results for the third quarter of 2025 were released after the U.S. stock market closed on October 30, 2025 [6]. Group 2: Company Overview - GoDaddy assists millions of entrepreneurs worldwide in starting, growing, and scaling their businesses by providing services such as website creation, logo design, and payment processing [3]. - The company offers an AI-powered experience called GoDaddy Airo, which helps small businesses establish an online presence quickly and effectively [3].