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].

Core Insights - GoDaddy (GDDY) is set to report its third-quarter 2025 results on October 30, 2025, with projected revenues between $1.22 billion and $1.24 billion, reflecting a 7% growth at the mid-point compared to the same quarter last year [1][9] Revenue Expectations - The Zacks Consensus Estimate for third-quarter revenues stands at $1.23 billion, indicating a year-over-year increase of 7.27% [2] - GoDaddy anticipates Applications & Commerce (A&C) revenue growth in the mid-teens, with A&C revenues estimated at $484 million, representing a 14.4% year-over-year rise [4] - Core platform revenues are expected to reach $747 million, suggesting a 3% year-over-year growth [4] Earnings Projections - The consensus estimate for earnings is $1.50 per share, which has increased by one cent over the past 30 days, indicating a growth of 13.64% from the previous year's figure [2] - GoDaddy's earnings have beaten the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 0.54% [2] Growth Drivers - GoDaddy is expected to benefit from the growing adoption of its high-margin solutions for the Commerce end-market, particularly the newly launched Rate Saver feature, which reduces credit card surcharging costs for merchants by over 50% [5][9] - The GoDaddy Airo and Ask Airo tools are gaining traction, leading to improved attachment rates, term lengths, and renewals [6] Challenges - The company faces challenges such as macroeconomic uncertainties, increased competition in the digital services market, and rising operational costs [6] Earnings ESP and Ranking - GoDaddy currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable [7]

Core Insights - The partnership between GoDaddy and authors Laura Brown and Kristina O'Neill aims to empower individuals navigating career transitions through their book "All The Cool Girls Get Fired" and GoDaddy Airo's digital tools [1][4]. Company Overview - GoDaddy provides tools for entrepreneurs to establish their online presence, including domain registration, website design, and online marketing support [5]. - GoDaddy Airo is an AI-powered platform designed to help small businesses quickly get online and enhance their digital marketing efforts [5]. Book Highlights - "All The Cool Girls Get Fired" features personal stories and advice from notable women, including Oprah Winfrey and Katie Couric, emphasizing how unexpected career changes can lead to new opportunities [3][2]. - The book serves as a guide for readers to pivot in their careers with confidence and purpose [2]. Promotional Offer - GoDaddy is offering new U.S. customers a domain for just $4.99 as part of the promotional campaign linked to the book [4].