Core Insights - GoDaddy Inc. is a significant player in internet domain registration and web hosting services, competing with major companies like Namecheap and Bluehost [1] - Raymond James maintains a "Strong Buy" rating for GoDaddy, adjusting the price target from $175 to $150, reflecting confidence in the company's potential despite current stock price fluctuations [2][6] - GoDaddy has raised its revenue outlook for 2025, driven by increasing demand for AI-enhanced internet hosting services, aligning with the broader trend of AI integration in technology [3][6] Stock Performance - GoDaddy's stock is currently valued at $132.05, showing an increase of approximately 4.19%, with daily fluctuations between $127.50 and $137.93 [4][6] - Over the past year, the stock has experienced a high of $216 and a low of $125, indicating significant market volatility [4] Market Position - The company has a market capitalization of about $18.28 billion and a trading volume of 1,663,202 shares, highlighting its substantial presence in the tech sector [5]

Trade Relations - President Trump and President Xi Jinping agreed to extend a tariff truce, roll back export controls, and reduce other trade barriers, including cutting fentanyl-related tariffs on Chinese goods from 20% to 10% [1] - China will resume purchases of US agricultural products such as soybeans and sorghum, while pausing controls on rare-earth magnets in exchange for the US rolling back restrictions on Chinese companies [1] Market Sentiment - US stock indexes closed higher, driven by positive corporate earnings, with Amazon.com leading the way with a more than 9% increase after reporting strong earnings [4][5] - Over 80% of S&P 500 companies that reported Q3 earnings have beaten estimates, indicating a bullish market sentiment [6] Economic Indicators - The markets are anticipating a 64% chance of a 25 basis point rate cut at the next FOMC meeting, with an overall expected cut of 82 basis points by the end of 2026 [2] - The October MNI Chicago PMI rose by 3.2 points to 43.8, exceeding expectations, which is supportive for stocks [3] Corporate Earnings - Q3 profits for S&P 500 companies are expected to rise by 7.2% year-over-year, the smallest increase in two years, while sales growth is projected to slow to 5.9% year-over-year [6] - Notable corporate earnings include Amazon.com with Q3 net sales of $180.17 billion, exceeding the consensus of $177.82 billion, and forecasting Q4 net sales of $206 billion to $213 billion [14] Government Impact - The ongoing US government shutdown is affecting market sentiment and delaying the release of key economic reports, with an estimated 640,000 federal workers furloughed [8] - The shutdown could lead to increased jobless claims and a rise in the unemployment rate to 4.7% [8] International Markets - Overseas stock markets showed mixed results, with the Euro Stoxx 50 down 0.65% and China's Shanghai Composite down 0.81%, while Japan's Nikkei Stock 225 rose sharply by 2.12% [9]

Core Insights - GoDaddy reported strong third-quarter results, with revenue of $1.3 billion, a 10% year-over-year increase, and raised its full-year outlook [1][4][8] - The company's Airo AI platform is enhancing average revenue per user, which grew by 10% in the third quarter [3][5][8] - Despite the growth in applications and commerce revenue, which soared 14%, the core domain registration business is slowing overall growth [4][6][8] Financial Performance - Earnings per share increased to $1.51 from $1.32 year-over-year [4] - Free cash flow reached $440 million in the third quarter, up 21% year-over-year, with an expected full-year free cash flow of around $1.6 billion [5] - GoDaddy raised its 2025 revenue outlook to a range of $4.93 billion to $4.95 billion, indicating an approximate 8% growth at the midpoint [5] Strategic Initiatives - GoDaddy is focusing on expanding its AI offerings, particularly through the Airo platform, which provides tools for domain name discovery, logo design, website building, and custom app creation [3] - The applications and commerce segment is expected to grow at a mid-teens percentage, driven by higher-value services [5][6] Market Position - GoDaddy's stock has decreased over 30% this year, but it appears inexpensive relative to free cash flow, with a market capitalization of roughly $18 billion [6] - The company is expected to see a shift in revenue dynamics as AI-related services grow, although this diversification will take time [7]

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]