Financial Data and Key Metrics Changes - Total revenue grew 8% to $1,200,000,000, surpassing the high end of the guided range [17] - Annual recurring revenue increased by 9% to $4,200,000,000 [17] - Free cash flow grew 21% to $392,000,000, reinforcing the strength of customer cohorts [20] - Normalized EBITDA margin expanded nearly 200 basis points to 31% [16][19] Business Line Data and Key Metrics Changes - Applications and Commerce (A&C) revenue grew 14% to $464,000,000, now accounting for 38% of total revenue, an all-time high [17][18] - Core platform segment revenue increased by 5% to $754,000,000, driven by growth in primary domains and bundling initiatives [18] - A&C bookings grew 12%, while core platform bookings increased by 3% [19] Market Data and Key Metrics Changes - International revenue grew 11%, indicating strong performance in global markets [17] - The company surpassed $3,000,000,000 in annualized gross payments volume, signaling effective strategy execution [12] Company Strategy and Development Direction - The company is focused on maximizing free cash flow and attracting high-intent customers who generate high lifetime value [6][20] - AI initiatives, particularly the introduction of Ask Arrow, are expected to enhance customer experience and operational efficiency [7][9] - The company is actively testing and scaling new offerings, including pricing and bundling strategies, to drive growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of small businesses and their optimism despite increased complexity in the market [5] - The company anticipates easier comparisons for A&C growth in the second half of the year [30] - Management raised full-year free cash flow guidance to approximately $1,600,000,000, reflecting strong performance [23] Other Important Information - The company will no longer operate as the registry service provider for the .co top-level domain starting in Q4, which is expected to create a 50 basis point headwind to bookings and revenue [24][25] - The balance sheet remains strong, with $1,100,000,000 in cash and total liquidity of $2,100,000,000 [22] Q&A Session Summary Question: How should we think about the A&C growth and its continuation through 2025? - Management indicated no trough in A&C growth and expressed confidence in its momentum, expecting it to grow to about 40% of total business [30][31] Question: What are the latest trends in customer cohorts experiencing Arrow? - Management reported higher conversion rates and average order sizes among customers using Arrow, with near-perfect retention [36][39] Question: How does the company view the impact of AI on the website ecosystem? - Management is optimistic about AI's potential to simplify customer interactions and enhance product offerings, positioning GoDaddy favorably in the market [44][76] Question: Can you elaborate on the sustainability of the Rate Saver promo? - Management clarified that Rate Saver is a product feature rather than a promotional offer, expecting its adoption to grow among new cohorts [125]

Financial Data and Key Metrics Changes - GoDaddy reported total revenue growth of 8% to $1.2 billion, surpassing the high end of guidance [15][16] - Annual recurring revenue grew 9% to $4.2 billion, with international revenue increasing by 11% [16] - Free cash flow increased by 21% to $392 million, reflecting strong customer cohort performance [20][23] - Normalized EBITDA margin expanded nearly 200 basis points to 31% [15][19] Business Line Data and Key Metrics Changes - The Applications and Commerce (A&C) segment saw revenue growth of 14% to $464 million, now accounting for 38% of total revenue, an all-time high [17][18] - Core platform segment revenue grew 5% to $754 million, driven by primary domains and bundling initiatives [18] - A&C bookings grew 12%, while core platform bookings increased by 3% [19] Market Data and Key Metrics Changes - GoDaddy's commerce initiative reached over $3 billion in annualized gross payments volume, indicating strong customer conversion [12] - The company reported that cohorts spending over $500 annually have shown near-perfect retention and increased average order size [20][21] Company Strategy and Development Direction - GoDaddy is focused on enhancing AI capabilities, particularly through the Ask Arrow initiative, which aims to provide a seamless customer experience [6][7] - The company is actively executing pricing and bundling strategies, with promising early results from new partnerships [10][11] - GoDaddy is committed to maximizing free cash flow and has raised its full-year guidance to approximately $1.6 billion [5][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of small businesses and the ongoing demand for GoDaddy's services [4] - The company anticipates easier comparisons for A&C growth in the second half of the year [32] - Management highlighted the importance of AI in transforming customer interactions and internal operations [44][45] Other Important Information - GoDaddy will no longer operate as the registry service provider for the .co top-level domain starting in Q4, which is expected to impact bookings and revenue by approximately 50 basis points [24][25] - The company exited the quarter with $1.1 billion in cash and total liquidity of $2.1 billion, with net debt at $2.8 billion [22] Q&A Session Summary Question: Insights on A&C growth and Arrow strategy - Management confirmed no trough in A&C growth and expressed excitement about its momentum, expecting it to grow to about 40% of total business [31][32] - The latest cohorts experiencing Arrow are converting at higher rates and driving average order size [35][36] Question: Impact of Agentic AI on customer experience - Management emphasized the transformative potential of Agentic AI in simplifying customer interactions and enhancing product offerings [44][45] Question: Updates on customer count and growth expectations - Management expects a return to customer growth later this year, driven by high-intent customers spending over $500 [68][70] Question: Sustainability of the Rate Saver product - The Rate Saver is a product feature that helps merchants reduce costs, with strong adoption expected among new cohorts [121][123] Question: Arrow's exposure at the top of the funnel - Nearly all new customers are starting to see Arrow, indicating strong integration into the customer journey [124]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $1,043,000,000, representing a 7% year-over-year increase as reported and a 6% increase in constant currency [6][19] - Non-GAAP operating margin was 30%, and non-GAAP earnings per share (EPS) was $1.73, up 9% year-over-year as reported and in constant currency, exceeding guidance by $0.15 [6][25] - Non-GAAP net income for Q2 was $251,000,000, with a cash gross margin projected at approximately 72% to 73% for Q3 [25][32] Business Line Data and Key Metrics Changes - Cloud Infrastructure Services (CIS) revenue was $71,000,000, up 30% year-over-year as reported and 29% in constant currency, with expectations for accelerated growth due to large contracts signed earlier in the year [20][7] - Compute revenue was $171,000,000, up 13% year-over-year as reported and in constant currency [20] - Security revenue was $552,000,000, up 11% year-over-year as reported and 10% in constant currency, with API security and Zero Trust enterprise security combined revenue at $67,000,000, up 48% year-over-year [23][24] - Delivery revenue was $320,000,000, down 3% year-over-year as reported and down 4% in constant currency, but showing improvements in pricing and traffic growth [24] Market Data and Key Metrics Changes - International revenue was $516,000,000, up 10% year-over-year or 8% in constant currency, representing 49% of total revenue in Q2 [24] - U.S. foreign exchange fluctuations positively impacted revenue by $17,000,000 sequentially and $8,000,000 year-over-year [25] Company Strategy and Development Direction - The company is focusing on cloud infrastructure services and AI applications, with significant investments in these areas to capture growth opportunities [7][9] - Akamai is enhancing its go-to-market strategy by increasing sales capacity and expanding partnerships to drive new revenue growth [30] - The introduction of new AI solutions, such as the AI gateway and firewall for AI, aims to address challenges in deploying large language models [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of CIS, projecting a year-over-year growth rate of 40% to 45% in constant currency by year-end [20][39] - The competitive landscape has improved, with several major competitors exiting the market, allowing for better pricing and traffic trends [44] - Management anticipates a lower operating margin in the second half of the year due to investments in sales and marketing [30] Other Important Information - The company repurchased approximately 3,900,000 shares for $300,000,000 during Q2, with $1,200,000,000 remaining on the current repurchase authorization [26][27] - The recent legislation signed into law is not expected to materially impact the company's tax rate in 2025 [31] Q&A Session Summary Question: Can you walk us through how the first half of the year transpired versus expectations for compute revenue? - Management noted that compute, particularly CIS, has exceeded expectations, with significant customer signings and a forecast of 40% to 45% growth in ARR by year-end [38][39] Question: What is the competitive environment for the delivery business? - Management highlighted that four major competitors have exited the market, leading to improved pricing and traffic trends, with expectations for stable performance moving forward [44] Question: Can you provide insight into the guidance and the impact of TikTok revenue? - Management indicated that TikTok revenue is expected to contribute approximately $40,000,000 to $50,000,000, but overall guidance reflects strength across multiple areas [55] Question: What is the pipeline for CIS contracts? - Management reported a healthy pipeline for CIS, with participation from various verticals and larger deal sizes than typical [68] Question: What is driving demand for API and micro-segmentation security? - Management noted that enterprises are increasingly recognizing the need for security solutions, with significant growth expected in both API security and micro-segmentation [75][76]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $1,043 million, representing a 7% year-over-year increase as reported and a 6% increase in constant currency [5][17] - Non-GAAP operating margin was 30%, and non-GAAP earnings per share (EPS) was $1.73, up 9% year-over-year as reported and in constant currency, exceeding guidance by $0.15 [5][17] - Non-GAAP net income for Q2 was $251 million, with a cash gross margin projected at approximately 72% to 73% for Q3 [23][32] Business Line Data and Key Metrics Changes - Cloud Infrastructure Services (CIS) revenue was $71 million, up 30% year-over-year as reported and 29% in constant currency, with expectations for accelerated growth due to large contracts signed earlier in the year [6][18] - Compute revenue was $171 million, up 13% year-over-year as reported and in constant currency [18] - Security revenue was $552 million, up 11% year-over-year as reported and 10% in constant currency, with API security and Zero Trust enterprise security combined revenue at $67 million, up 48% year-over-year [20][21] - Delivery revenue was $320 million, down 3% year-over-year as reported and down 4% in constant currency, but showing improvements in pricing and traffic growth [22] Market Data and Key Metrics Changes - International revenue was $516 million, up 10% year-over-year or 8% in constant currency, representing 49% of total revenue in Q2 [22] - The company noted a positive impact from foreign exchange fluctuations, contributing $17 million sequentially and $8 million year-over-year [23] Company Strategy and Development Direction - The company is focusing on the growth of its cloud infrastructure services portfolio, particularly in AI applications, and is investing in expanding its sales capacity and partnerships [6][30] - The management highlighted the importance of security solutions in response to increasing cyber threats, particularly ransomware, and emphasized the growth potential in API security and micro-segmentation [12][78] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of CIS, projecting a year-over-year growth rate of 40% to 45% in constant currency by year-end [18][39] - The competitive landscape has improved due to the exit of several CDN peers, allowing for better pricing and traffic trends [44] - The company anticipates a lower operating margin in the second half of the year due to investments in sales and marketing [30] Other Important Information - The company repaid $1,150 million of outstanding convertible senior notes and issued $1,725 million in new senior convertible notes [24] - The company plans to continue share buybacks to offset dilution from employee equity programs [25] Q&A Session Summary Question: Can you walk us through how the first half of the year transpired versus expectations for compute revenue? - Management noted that compute, particularly CIS, has exceeded expectations with significant customer signings, projecting a growth rate of 40% to 45% in ARR by year-end [38][39] Question: What is the competitive environment like for the delivery business? - Management indicated that the competitive landscape has changed significantly, with four major competitors exiting the market, leading to improved pricing and traffic trends [44] Question: Can you provide insight into the guidance and the impact of TikTok revenue? - Management clarified that TikTok revenue is expected to contribute approximately $40 million to $50 million, but the overall guidance reflects strength across multiple areas [56] Question: What is driving the demand for API and micro-segmentation security? - Management highlighted the increasing need for security solutions as enterprises face more vulnerabilities, with strong demand for their market-leading solutions [76][78]

Core Insights - Tucows Inc. reported a 10.1% increase in consolidated net revenue for Q2 2025, reaching $98.5 million compared to $89.4 million in Q2 2024, driven by strong performance across all business segments [3][8] - The company achieved a 6.2% increase in gross profit, totaling $22.1 million, attributed to margin gains from Wavelo and Tucows Domains, despite a decrease in gross margin from Ting due to a one-time lease adjustment [4][8] - Adjusted EBITDA grew by 37% to $12.6 million, reflecting improved operational efficiency and revenue growth across all segments [6][8] Financial Performance - Net loss for Q2 2025 decreased to $15.6 million, or $1.41 per share, compared to a net loss of $18.6 million, or $1.70 per share, in Q2 2024, indicating improved operational efficiency [5][8] - Adjusted net loss for Q2 2025 was $16.3 million, or $1.47 per share, compared to an adjusted net loss of $17.8 million, or $1.63 per share, in Q2 2024 [5][8] - Cash and cash equivalents at the end of Q2 2025 were $68.6 million, up from $55.0 million at the end of Q1 2025 and $52.2 million at the end of Q2 2024 [7][8] Business Segment Performance - Ting Internet Services generated revenue of $16.4 million, up from $14.6 million in Q2 2024, with gross profit decreasing due to a one-time lease expense [9][10] - Wavelo Platform Services reported revenue of $12.7 million, an increase from $10.5 million in Q2 2024, with gross profit also rising [10] - Tucows Domain Services achieved revenue of $67.6 million, compared to $62.4 million in Q2 2024, with gross profit increasing to $21.6 million [10]

Financial Performance - Total revenue reached $1.2 billion, an 8% increase year-over-year[4] - Total bookings amounted to $1.3 billion, also up by 7% year-over-year[4] - Applications and Commerce (A&C) revenue experienced a 14% growth, reaching $463.9 million[4] - Core Platform (Core) revenue increased by 5% year-over-year, totaling $753.7 million[4] - Operating income rose by 28% to $266.3 million, representing a 22% margin[4] - Net income increased by 37% to $199.9 million[4] - Free cash flow increased by 21% year-over-year, reaching $391.5 million[4] Future Outlook - GoDaddy expects Q3 2025 total revenue to be in the range of $1.22 billion to $1.24 billion, representing 7% year-over-year growth at the midpoint[9] - The company raised its full-year 2025 revenue expectations to a range of $4.89 billion to $4.94 billion, representing 7% year-over-year growth at the midpoint[9] - GoDaddy raised its free cash flow target to approximately $1.6 billion for the full year 2025[12]

Core Viewpoint - GoDaddy Inc. reported its financial results for the second quarter of 2025, highlighting its ongoing commitment to supporting entrepreneurs globally through its services and AI-powered tools [1]. Company Overview - GoDaddy assists millions of entrepreneurs worldwide in starting, growing, and scaling their businesses by providing services such as website creation, logo design, product sales, and payment processing [3]. - The company offers GoDaddy Airo®, an AI-powered experience designed to expedite the process of getting small businesses online, driving traffic, and boosting sales [3]. - GoDaddy provides 24/7 expert guidance to assist users in utilizing its services effectively [3].

Service Availability - Starlink's high-speed, low-latency internet is now available in Israel [1]

Starlink resumed its service in Nairobi in June after a monthslong halt, but uptake has remained slow with analysts and users saying the internet market in Kenya has shifted to local providers https://t.co/CItn0baRiV ...

Core Insights - Fastly reported revenue of $148.71 million for the quarter ended June 2025, reflecting a year-over-year increase of 12.3% [1] - The company's EPS was -$0.03, an improvement from -$0.07 in the same quarter last year, with a surprise of +40% compared to the consensus estimate of -$0.05 [1] - Fastly's revenue exceeded the Zacks Consensus Estimate of $145.07 million by 2.51% [1] Financial Performance Metrics - Fastly's enterprise customer count reached 622, surpassing the two-analyst average estimate of 600 [4] - Revenue from enterprise customers was $139.26 million, exceeding the average estimate of $135.45 million, marking a year-over-year increase of 15.4% [4] - Revenue by product included $4.5 million from Other, slightly above the average estimate of $4.47 million, $29.3 million from Security, compared to the average estimate of $29.65 million, and $114.9 million from Network Services, exceeding the average estimate of $111.21 million [4] Stock Performance - Fastly's shares have declined by 12.7% over the past month, while the Zacks S&P 500 composite increased by 0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]