GoDaddy (NYSE:GDDY) 2025 Conference Summary Industry and Company Overview - **Company**: GoDaddy - **Industry**: Internet Services, specifically focusing on domain registration, web hosting, and online presence solutions Key Points and Arguments AI Strategy and Product Development - GoDaddy has established a three-pillar AI strategy: 1. **Consumer-Facing AI (Airo)**: Transitioned from generative AI to an agentic approach, launching Airo.ai to simplify customer onboarding and growth [12][14] 2. **Internal AI Utilization**: Approximately 90% of new platform code is AI-generated, with 46% of all code written by AI as of October 2023 [13][14] 3. **Community Contribution (ANS)**: The Agentic Name Service aims to promote an open internet, similar to how DNS facilitated website discovery [14] New Product Launches - A new product, the **Co-Founder Agent**, is set to launch, designed to assist users in developing business ideas by conducting market analysis and creating business plans [15][16] - The Co-Founder Agent will also facilitate the creation of an online presence, including branding and e-commerce solutions [16] Customer Acquisition and Market Segmentation - Airo.ai is attracting a different customer cohort compared to traditional GoDaddy.com users, indicating a more sophisticated audience [22] - The average order size and retention rates for customers paying $500 annually have shown improvement, suggesting effective customer engagement strategies [24][25] Incremental Growth and Market Potential - The introduction of Airo and its agentic features is expected to provide incremental growth opportunities, enhancing customer lifetime value (LTV) significantly [25] - GoDaddy's existing customer base will be targeted for improvements in their online presence, leveraging agents to enhance marketing and branding efforts [35][36] Quality and User Experience Focus - GoDaddy emphasizes the importance of quality in product offerings, ensuring that new features provide a seamless experience for users [33] - The company is committed to avoiding "AI slop," focusing on enriching AI-generated content with proprietary data to enhance relevance and effectiveness [36] Customization and Data Utilization - GoDaddy's ability to customize AI models is attributed to its extensive data collection over nearly three decades, which is crucial for scaling AI solutions [38] - The company is focused on building products that are informed by user behavior and feedback, allowing for continuous improvement and value-based pricing strategies [61][62] Market Trends and Customer Behavior - The small business formation landscape has stabilized post-COVID, with GoDaddy seeing an influx of high-intent customers eager to launch their ideas [64][66] - The company aims to facilitate faster ideation and launch processes for entrepreneurs, reducing the need for extensive resources traditionally required for business setup [66] Customer Count and Strategic Focus - GoDaddy is transitioning towards a strategy focused on acquiring higher-intent customers rather than merely increasing customer numbers [69][70] - The company is stabilizing its customer count after previous divestitures and is concentrating on customers who are likely to attach multiple products and generate higher average revenue per user (ARPU) [69][70] Additional Important Insights - GoDaddy's approach to pricing and bundling is evolving, with ongoing experiments to determine the best value propositions for customers [52][54] - The company is preparing to launch additional agents, aiming for a total of 22 agents within a month of the initial launch, enhancing the range of services offered [32][33] This summary encapsulates the key discussions and insights from the GoDaddy conference, highlighting the company's strategic direction, product innovations, and market positioning.