GoDaddy (NYSE:GDDY) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Company ParticipantsAman Bhutani - CEOChristie Masoner - VP of Investor RelationsMark McCaffrey - CFONaved Khan - Managing Director of Equity ResearchYgal Arounian - Managing DirectorNone - Video NarratorConference Call ParticipantsArjun Bhatia - Partner, Co-Head Tech Equity Research, and Software AnalystJames Michael - Research AnalystKen Wong - Managing Director and Senior AnalystMark Zgutowicz - Senior Research AnalystSang-Jin Byun - ...

Financial Data and Key Metrics Changes - The company reported total revenue growth of 7% year-over-year, reaching $1.3 billion in Q4 2025, at the high end of guidance [21] - Annual revenue for 2025 was approximately $5 billion, representing an 8% growth [23] - Normalized EBITDA margin expanded to 32%, reflecting a 150 basis points increase over the prior year [25] - Free cash flow grew 19% to $1.6 billion, with a conversion rate of greater than 1:1 from Normalized EBITDA [25] Business Line Data and Key Metrics Changes - Applications and Commerce segment revenue grew 13% to $498 million, with an EBITDA margin improvement of 40 basis points to 47% [21] - Core Platform segment revenue increased by 3% to $776 million, driven by an 8% growth in aftermarket domains [22] - Total bookings grew 5% to $1.3 billion, with Applications and Commerce bookings up 11% and Core Platform bookings up 1% [22] Market Data and Key Metrics Changes - International revenue grew 10% to $420 million in Q4 2025, contributing to an annual international revenue of $1.6 billion, up 11% [21][23] - The company captured nearly 2 billion customer signals daily, enhancing its data-driven approach [2] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance customer experiences and operational efficiencies, with Airo being a key component of this strategy [7][9] - Airo is evolving into an agentic operating system for small businesses, aiming to streamline operations and improve customer engagement [10][14] - The company is expanding its go-to-market strategy to attract high-intent customers, optimizing the customer acquisition funnel [38][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive advantages, including brand strength, domain leadership, and a robust data infrastructure [8][90] - The company anticipates that the new go-to-market strategy will lead to improved customer acquisition and retention, with a focus on high-value customers [31][82] - Management acknowledged the challenges posed by competitive dynamics but emphasized the company's adaptability and strategic positioning [104] Other Important Information - The company has made significant investments in AI, with the majority of new code now being AI-generated, enhancing development efficiency [93] - The new website builder, integrating AI features, is expected to launch soon, further enhancing the customer experience [17][70] Q&A Session Summary Question: Can you elaborate on the promotional offer with .com and its impact on bookings? - Management explained that the new go-to-market strategy aims to attract high-intent customers, and while it has impacted bookings, it is expected to improve over time as customer engagement increases [36][41] Question: How do you view the impact of AI costs on margins? - Management indicated a disciplined approach to AI costs, ensuring visibility and operational focus to maintain margins while investing in AI [42][45] Question: What are the expectations for active customer growth in 2026? - Management expressed optimism about attracting high-intent customers, which should positively impact active customer growth moving forward [81][82] Question: Can you clarify the impact of the new go-to-market strategy on bookings and revenue? - Management confirmed that while bookings may lag initially due to shorter contract terms, they expect bookings to strengthen throughout the year [56][60] Question: What advantages does the company have over newer entrants in the market? - Management highlighted the company's extensive data and established brand as key competitive advantages that facilitate the integration of AI into its offerings [90][91]

GoDaddy (NYSE:GDDY) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Speaker14Nearly 2 billion customer signals captured every day. We have the experience, data, and infrastructure to lead the way with agentic open internet for small business. That's the advantage behind Airo, an advantage no one else can claim, and an agentic experience none can rival. Airo supports the entire customer journey. It starts by turning your idea into a website. Next, it grows your business, optimizing websites, improving ma ...

Sigourney Morisson Dressed New Orleans DRESSEDNEWORLEANS.COM Forward-looking statements and non-GAAP financial measures Q4 2025 Earnings Results February 24, 2026 © 2026 GoDaddy Inc. © 2026 GoDaddy Inc. Empower entrepreneurs everywhere, making opportunity more inclusive for all Our strategy This presentation contains forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on estimates and information avail ...

Core Insights - GoDaddy has launched six new AI agents as part of its Airo.ai online experience, aimed at simplifying marketing, operations, and website management for small businesses [1][3] - The Airo.ai framework is designed to determine the next best action for customers, coordinating tasks to enhance customer success [1][3] New AI Agents - Conversations Inbox: Organizes customer communication across various channels, allowing small business owners to respond faster and manage interactions in one place [4] - Marketing Calendar and Social Posts Agents: Assists in planning and launching marketing campaigns, creating content for social media, and saving time [4] - Online Appointments Agent: Streamlines scheduling for service-based businesses, helping owners manage services and appointments quickly [4] - Domain Activation Agent: Simplifies the process of connecting GoDaddy domains to websites and email providers, facilitating faster online launches [4] - Domain Protection Agent: Enhances domain security by checking protection levels and recommending upgrades, ensuring the safety of digital assets [4] - DIFY (Do-It-For-You) Agent: Connects entrepreneurs with human experts for professional services, automating the matchmaking process [4] Company Overview - GoDaddy supports millions of entrepreneurs globally in starting, growing, and scaling their businesses, providing tools for website creation, marketing, and payment processing [3][5] - The Airo.ai experience is part of GoDaddy's commitment to making small business growth faster and easier through intelligent tools [3][5]

Core Insights - GoDaddy Inc. will have its Chief Financial Officer Mark McCaffrey present at the Barclays Global Technology Conference on December 11, 2025 [1] - The company offers a range of services to help entrepreneurs start, grow, and scale their businesses, including website creation, logo design, and payment processing [2] - GoDaddy has launched Airo, an AI-powered experience designed to assist small businesses in establishing an online presence quickly and effectively [2][5] Group 1 - GoDaddy's CFO will present at the Barclays Global Technology Conference on December 11, 2025, at 12:15 p.m. ET [1] - The company provides 24/7 expert guidance to entrepreneurs, enhancing their ability to drive traffic and boost sales [2] - Airo.ai is a new AI website experience that simplifies the process of turning conversations into completed tasks for small businesses [5] Group 2 - GoDaddy has made significant advancements in its Agent Name Service (ANS), which is a trusted identity naming system for AI agents [4] - The launch of Airo.ai represents GoDaddy's commitment to integrating AI technology to support small businesses [5]

Core Insights - GoDaddy's shares have decreased by 36.6% over the past 12 months, significantly underperforming the Zacks Computer and Technology sector, which returned 23.6% [1] - The company is facing challenges from a tough macroeconomic environment and intense competition in the digital services market, but it is expected to benefit from AI integration initiatives [1] Company Developments - GoDaddy has launched Airo.ai, a beta agentic AI platform designed for small businesses, which includes six agents to assist in various tasks from domain registration to website building [2] - The shift towards an Agentic AI platform, with Airo.ai and Airo Plus at its core, is becoming a major growth driver for the company [3] - GoDaddy plans to have AI generate 70% of its code by the end of the year, with 45% currently being AI-generated [3] Financial Projections - GoDaddy has raised its revenue guidance for 2025, projecting total revenues between $4.93 billion and $4.95 billion, reflecting an 8% year-over-year increase at the midpoint [4] - The company anticipates mid-teens growth in Applications and Commerce (A&C) revenues and mid-single digit growth in core revenues for 2025 [4] - For Q4 2025, GoDaddy expects revenues of $1.255-$1.275 billion, representing a 6% increase at the midpoint, with a normalized EBITDA margin of approximately 32% [5][8]

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.

Core Insights - GoDaddy has launched Airo.ai, a Beta agentic AI platform designed to transform simple conversations into completed tasks for small businesses [1] Company Overview - The new Airo.ai platform aims to enhance productivity for small businesses by utilizing AI to streamline task completion [1] Industry Impact - The introduction of Airo.ai reflects a growing trend in the technology sector towards integrating AI solutions to support small business operations [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]