Core Insights - GoDaddy is launching a trusted identity naming system for AI agents to address the challenge of distinguishing legitimate agents from unvetted or malicious ones as the number of AI agents is expected to exceed one billion in the next three years [1][2] - The new system is based on proven technologies and protocols, leveraging GoDaddy's extensive experience in internet safety, including domain names and SSL certificates [1][2] - The initiative aims to create a secure environment for agent-to-agent interactions, drawing parallels to the early internet's "Wild West" [1] Technical Details - The service utilizes a modular adapter layer that works across protocols and is inspired by an Internet Engineering Task Force (IETF) draft for an Agent Name Service (ANS) [2][3] - Each enrolled agent will receive a report verifying its identity, confirming good standing, and specifying its location, ensuring standards-aligned and ecosystem-ready solutions [2][3] - The system includes features such as lifecycle management for registration, renewal, and revocation, enhancing security and governance for production deployments [3] Availability and Collaboration - A developer preview of the system is set to launch in the coming weeks, with broader availability to follow [2] - GoDaddy is collaborating with standards bodies and industry partners to ensure broad participation and seamless interoperability in the development of this system [2]

Fund Performance - Artisan Global Discovery Fund's Investor Class APFDX returned 10.84%, Advisor Class APDDX returned 10.83%, and Institutional Class APHDX returned 10.93% in Q2 2025, compared to an 11.84% return for the MSCI All Country World Small Mid Index [1] - Global markets experienced volatility in Q2 2025, with a shift from double-digit declines to gains following President Trump's tariff announcements and subsequent suspension [1] Company Focus: GoDaddy Inc. - GoDaddy Inc. (NYSE:GDDY) is a leader in domain registration, generating 70% of its revenue from core domain services and 30% from higher-margin applications and commerce tools [3] - GoDaddy's stock closed at $141.40 per share on September 26, 2025, with a market capitalization of $19.577 billion [2] - The company faced a one-month return of -4.66% and a 52-week loss of 9.81% [2] Investment Strategy and Concerns - Artisan Global Discovery Fund ended its investment in GoDaddy due to increased competition from Wix and AI-based business models, as well as concerns over incremental marketing investments in its AI-powered suite, Airo [3] - GoDaddy's strategy focuses on cross-selling higher-margin products through domain services, but risks from competition and macro challenges for small and medium-sized businesses remain [3]

Industry Overview - The Zacks Internet - Delivery Services industry includes companies providing services through Internet-based platforms, such as food delivery, online travel booking, and web hosting [2] - The industry is characterized by growth-stage companies investing heavily in R&D and sales & marketing, which may hinder short-term profitability [2] Growth Drivers - Increased smartphone usage and improved Internet access are driving growth in the delivery services sector, with 4G and emerging 5G technology enhancing user experiences [3] - Shifting consumer preferences towards convenience and online services are expected to benefit the industry, particularly in food ordering and travel booking [4] - Technological advancements, such as smart routing algorithms and real-time GPS tracking, are improving delivery efficiency and customer experience [5] Challenges - Persistent macroeconomic uncertainties, inflation, and high interest rates pose significant challenges to the industry [1] - Higher upfront costs associated with market expansion may negatively impact profitability, especially as competition intensifies from major tech companies like Amazon and Alphabet [7] - The potential fallout from tariff wars could indirectly affect revenue growth and margins due to reduced spending from small businesses and startups [6] Industry Performance - The Zacks Internet - Delivery Services industry has underperformed compared to the S&P 500 and the broader Computer and Technology sector over the past year, gaining only 0.2% [11] - The industry currently holds a Zacks Industry Rank of 103, placing it in the top 42% of approximately 250 Zacks industries, indicating solid near-term prospects [9][10] Valuation Metrics - The industry is trading at a forward 12-month price-to-sales (P/S) ratio of 1.64X, significantly lower than the S&P 500's 5.44X and the sector's 7.1X [14] Company Highlights - **GoDaddy (GDDY)**: Focused on cloud-based technology products, benefiting from strong momentum in its Applications & Commerce business, with a Zacks Consensus Estimate for 2025 earnings revised upward by 2.2% to $6.05 per share [17][18][19] - **Vipshop Holdings (VIPS)**: An online discount retailer in China, improving its financial performance through enhanced product offerings and a focus on high-margin apparel businesses, with a current-year earnings estimate revised upward by $0.05 to $2.44 per share [23][24] - **QuinStreet (QNST)**: A provider of online marketing services, positioned to benefit from the shift to online business models, with a fiscal 2026 earnings estimate remaining unchanged at $1.05 per share [27][28] - **Asure Software (ASUR)**: A cloud computing firm focusing on human capital management solutions, with a 2025 earnings estimate revised upward by $0.02 to $0.79 per share [31][32]

Core Insights - GoDaddy has launched the Airo Site Designer, an AI-powered website builder aimed at simplifying the process of creating WordPress websites for small businesses [1][2][3] Group 1: Product Features - Airo Site Designer allows users to generate a multipage website by simply describing their business idea in a plain-text prompt, significantly reducing the time and effort required to publish a site [2][4] - The tool is designed to address the common challenge faced by small businesses of getting online quickly, with 64% of small business owners reporting positive results from using AI, yet 39% lacking confidence in its use [3][4] - The latest version of Airo Site Designer offers faster response times, professional layouts, premium imagery, and real-time previews, enhancing the user experience [7] Group 2: Target Audience - The Airo Site Designer is not only beneficial for small business owners but also serves as a valuable tool for digital agencies and freelancers, enabling them to streamline their workflow and focus on higher-value services [6] - By eliminating repetitive tasks, the tool allows professionals to move from client intake to initial draft in minutes, thereby improving efficiency [6] Group 3: Integration and Support - Airo Site Designer is part of GoDaddy's Managed Hosting for WordPress, integrating with the company's broader product offerings, including domains, marketing, and commerce solutions [5] - GoDaddy provides 24/7 expert guidance to assist users in leveraging the Airo experience for business growth [8]

Core Insights - The buyout firm is set to acquire a majority stake in a domain registrar and web-hosting provider based in Arizona [1] Company Summary - The target company operates in the domain registration and web hosting industry, indicating a focus on digital services and online presence [1] Industry Summary - The acquisition highlights ongoing consolidation trends within the domain registration and web hosting sector, suggesting potential growth opportunities and competitive dynamics [1]

Core Insights - GoDaddy's Entrepreneurial Power Rankings highlight the thriving small business environment in cities with professional football teams, showcasing the economic impact of game-day events on local entrepreneurship [2][3][6] Group 1: Entrepreneurial Landscape - The rankings are based on the number of entrepreneurs per 100 people, indicating a strong correlation between pro football stadiums and small business growth in surrounding areas [3][6] - Nearly all metro areas in the rankings have a higher number of entrepreneurs per 100 people than the national average, with Pittsburgh being the only exception [6] - Florida's cities, particularly Miami Gardens (1), Tampa (8), and Jacksonville (15), exemplify how a supportive environment fosters small business growth [6] Group 2: Economic Impact - Events at pro football stadiums drive significant economic activity, benefiting small and microbusinesses, many of which have fewer than 10 employees [3][4] - The presence of game-day fans and tourists contributes to the growth of local businesses, creating a vibrant economic ecosystem [3][4] Group 3: Role of Technology - GoDaddy's AI-powered tools, such as GoDaddy Airo, assist small business owners in establishing an online presence quickly, enabling them to compete effectively with larger companies [5][9] - The company emphasizes the importance of resilience among small business owners, drawing parallels between the qualities admired in football players and those needed for entrepreneurial success [5][6] Group 4: Research and Insights - The GoDaddy Small Business Research Lab analyzes over 20 million online businesses, providing valuable insights into microbusiness trends and the entrepreneurial landscape [10]

Group 1 - The major theme in the industry over the past few months has been the impact of Generative AI, particularly in website building [2] - There is a significant opportunity for companies to leverage Generative AI to create websites through voice commands, which could transform the business model [2] - The discussion around Generative AI highlights both opportunities and potential risks for companies in the website development space [2]

GoDaddy (GDDY) 2025 Conference Summary Industry and Company Overview - **Company**: GoDaddy Inc. (GDDY) - **Industry**: Website building, domain registration, and online business services Key Themes and Insights 1. **Impact of GenAI on Website Building** - GenAI, particularly vibe coding, is transforming website creation, allowing users to create websites through conversational interfaces [3][4] - GoDaddy is positioned to leverage these advancements to enhance customer experience and business operations [5][7] 2. **Introduction of GoDaddy Airo** - GoDaddy Airo, launched nearly two years ago, has significantly improved customer engagement and sales [5][7] - The upcoming Ask Airo feature aims to provide predictive insights for business growth, enhancing customer decision-making [8][9] 3. **Customer Segmentation and Retention** - GoDaddy focuses on high-intent customers, particularly those spending over $500 annually, which increased by nearly 20% from 2023 to 2024 [21][40] - The retention rate for these high-value customers is near perfect, with overall customer retention around 85% [22][41] 4. **Revenue Growth and Average Revenue Per User (ARPU)** - The average revenue per user is increasing, with estimates suggesting entrepreneurs spend around $2,000 annually on their online presence [22][23] - GoDaddy aims to grow ARPU from $20 to over $200, indicating significant growth potential in the market [23] 5. **Conversion Rates from Landing Pages** - There is a notable increase in conversions from landing pages to fully operational websites, indicating effective customer engagement strategies [24] 6. **Pricing and Bundling Strategy** - GoDaddy has shifted to a pricing and bundling strategy that enhances customer retention and renewal rates, particularly in the Applications & Commerce segment [50][51] - The company is experimenting with various bundles to optimize customer value and engagement [52][60] 7. **Market Position and Competitive Landscape** - Despite competition from new entrants, GoDaddy has not seen a significant impact on its business model, maintaining strong traffic and sales momentum [16][17] - The company remains the largest player in the domain registration market, with a focus on maintaining its competitive edge through innovation [80] 8. **Free Cash Flow and Financial Health** - GoDaddy's model emphasizes free cash flow as a key performance indicator, with positive momentum observed in recent quarters [32][84] - The company has successfully balanced investments in innovation while returning value to shareholders through share buybacks [84][88] 9. **M&A Strategy and Future Outlook** - GoDaddy has shifted focus from acquisitions to internal innovation, with a strong balance sheet allowing for strategic M&A opportunities if they arise [87][88] - The company is evaluating potential M&A based on strict criteria, ensuring alignment with its core technology stack and business model [88] 10. **Tax Strategy** - GoDaddy currently does not pay cash taxes in the U.S. and does not expect to do so until 2030, allowing for continued investment in growth [94] Additional Insights - The company is actively testing new features and products, with positive feedback on the upcoming Ask Airo [15][26] - GoDaddy's strategy is focused on serving microbusinesses and entrepreneurs, ensuring that its offerings align with their needs and growth potential [7][42]

Group 1 - GoDaddy's market cap doubled in 2024, but the stock has declined over 26% year-to-date despite beating revenue and EPS expectations in the first half of the year [1] Group 2 - Triba Research aims to identify high-quality businesses with potential for sustainable, double-digit returns, focusing on companies with competitive advantages, low debt, and skilled management [2]

Core Insights - GoDaddy has launched a series of enhancements aimed at making online business management faster, easier, and more intuitive for entrepreneurs [1][4] - The company emphasizes its commitment to continuous innovation, with plans for ongoing improvements in the second half of the year [1] Product Enhancements - Key updates include AI-powered features that assist users in naming, building, and growing their businesses with personalized suggestions [4] - Streamlined in-person checkout and AI-driven catalog creation tools have been introduced to help sellers manage their products more efficiently [4] - Simplified domain transfers and an improved user experience for DNS and domain management have been implemented [4] - The Smart Storefront Customizer provides business owners with enhanced control over their online storefront layout and mobile design [4] Company Overview - GoDaddy supports millions of entrepreneurs worldwide in starting, growing, and scaling their businesses [2] - The company's AI-powered experience, GoDaddy Airo®, facilitates quick online presence establishment and sales growth [2]