GoDaddy Conference Call Summary Company Overview - **Company**: GoDaddy - **Industry**: Domain registration and web hosting services Key Points AI Landscape and Airo.ai - GoDaddy is evolving its generative AI tool, Airo, into an agentic operating system for small business customers, aiming to automate tasks for micro small businesses [3][4] - The company is optimistic about Airo.ai's potential to enhance customer experience by helping businesses validate ideas, establish digital presence, and connect with customers [4][5][6] Q4 Results and Promotional Pricing - GoDaddy introduced a promotional pricing strategy at $4.99 to widen customer reach, which resulted in strong demand and cohort quality similar to previous one-year offers [7][8][10] - The promotional pricing has a marginal impact on revenue but affects bookings, with expectations for bookings to trail revenue in Q1 [16][18][22] Customer Cohorts and ARPU - High-intent customers, defined as those spending $500 or more annually, are growing and represent 10% of the customer base, with low double-digit growth expected in fiscal 2025 [15][70] - GoDaddy emphasizes the importance of retaining high-intent customers, as those with multiple products show significantly higher retention rates [73][74] Product Development and Airo.ai - Airo.ai is designed to automate tasks for customers, enhancing their ability to manage their businesses effectively [25][26] - The company is also upgrading its Websites + Marketing product, integrating AI-powered chat features, with positive early feedback from customers [35][40] Agentic Name Service (ANS) - ANS is positioned as a foundational infrastructure layer for the open internet, aimed at verifying the identity of agents online [48][49] - GoDaddy is focused on widespread adoption of ANS, with partnerships like MuleSoft validating the framework [60][62] Pricing and Bundling Strategy - GoDaddy's pricing and bundling strategy is seen as an evergreen initiative, continuously evolving to meet customer needs [63][67] - The company aims to offer tailored bundles based on customer usage patterns, enhancing customer engagement and retention [68] Financial Performance and Margins - GoDaddy has achieved 1,000 basis points of margin expansion over five years, with expectations to exceed a 33% margin target in 2026 [114][122] - Key drivers of margin expansion include infrastructure simplification, access to global talent, and a favorable product mix with higher-margin offerings like ANS [115][118] Competitive Landscape - GoDaddy maintains strong brand awareness, driving over 60% of traffic through direct navigation, which is crucial for attracting micro small businesses [127][129] - The competitive environment remains intense, but GoDaddy's established brand and comprehensive service offerings provide a competitive edge [128] Capital Allocation and M&A Strategy - GoDaddy has a strong balance sheet and continues to prioritize share buybacks, with 100% of free cash flow allocated to this in 2025 [141] - The company remains open to M&A opportunities that align strategically and can be integrated into its platform [139][140] Additional Insights - The company is focused on enhancing customer experience through empathetic conversations and direct marketing strategies, which have proven effective in driving additional product attachments [133][134] - GoDaddy's approach to customer acquisition and retention is evolving, with a focus on both high-quality customer growth and ARPU expansion [72][78]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved bookings growth of 7% and expanded Normalized EBITDA margin to 32%, reflecting operational execution and improved structural leverage [7][25] - Total revenue for Q4 grew 7% to $1.3 billion, with international revenue increasing by 10% to $420 million [21][23] - Free cash flow grew 8% to $370 million in Q4 and 19% to $1.6 billion for the full year [23][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 and 5% growth in primary domains [21][22] - ANC ARR grew 12%, while Core Platform bookings grew 1% [22] Market Data and Key Metrics Changes - The company captured nearly 2 billion customer signals daily, indicating strong engagement and data utilization [2] - The cumulative annual spend from Airo cohorts has grown in the high teens, with a 30% acceleration in second product attach rates compared to non-Airo cohorts [24] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance customer experiences and operational efficiencies, with Airo evolving into an agentic operating system for small businesses [9][10] - The strategy includes expanding the go-to-market approach to attract high-intent customers and optimizing the customer journey [18][39] - The introduction of Agent Name Service (ANS) aims to enhance digital identity and trust in automated environments, potentially creating new monetization opportunities [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive advantages, including brand strength, domain leadership, and AI capabilities, positioning it well for future growth [8][18] - The company anticipates bookings growth rates to align with revenue growth rates by the end of 2026, despite near-term impacts from promotional pricing and contract term changes [27][29] - Management highlighted the importance of maintaining strong customer engagement metrics and the potential for improved lifetime value from new customer cohorts [31][39] Other Important Information - The company exited the year with $1.1 billion in cash and total liquidity of $2.1 billion, maintaining a net leverage of 1.6x [25] - Share repurchase programs have reduced fully diluted shares outstanding by approximately 33% since 2021 [26] Q&A Session Summary Question: Can you elaborate on the promotional offer with .com and its impact on bookings? - Management indicated that the new go-to-market strategy aims to attract high-intent customers, and early results have shown improved attach rates for the new cohort [38][39] Question: How do you view AI costs and their impact on margins? - Management expressed confidence in managing AI costs and maintaining margin guidance, emphasizing a disciplined approach to spending [42][45] Question: What are the expectations for active customer growth in 2026? - Management noted that the new go-to-market strategy is expected to be a tailwind for attracting high-intent customers, which is crucial for long-term retention [82][83] Question: Can you clarify the impact of shorter initial contract terms on bookings? - Management confirmed that shorter contract terms have affected bookings but expect improvements as customer volume increases [84][85] Question: What competitive advantages does the company have over newer entrants? - Management highlighted the extensive proprietary data and established brand presence as key advantages in leveraging AI for customer engagement [90][91]

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]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved bookings growth of 7% and expanded Normalized EBITDA margin to 32%, reflecting strong operational execution and improved structural leverage [5][22] - Total revenue for Q4 grew 7% to $1.3 billion, with international revenue increasing by 10% to $420 million [17][19] - Free cash flow grew 8% to $370 million in Q4 and 19% to $1.6 billion for the full year [22][19] Business Line Data and Key Metrics Changes - Applications and Commerce segment revenue grew 13% to $498 million, with segment EBITDA margin improving by 40 basis points to 47% [17] - Core Platform segment revenue increased by 3% to $776 million, driven by an 8% growth in aftermarket and 5% growth in primary domains [18] - ANC ARR grew 12%, while Core Platform bookings grew 1% [18][20] Market Data and Key Metrics Changes - International revenue for the full year grew 11% to $1.6 billion, indicating strong global demand [19] - The cumulative annual spend from Airo cohorts has grown in the high teens, with a 30% acceleration in the velocity of second product attach relative to non-Airo cohorts [21] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance customer experiences and operational efficiencies, with Airo evolving into an agentic operating system for small businesses [6][7] - The strategy includes expanding the go-to-market approach to attract high-intent customers and optimizing the customer journey through AI-driven solutions [15][12] - The introduction of Agent Name Service (ANS) aims to enhance digital identity and trust in automated environments, positioning the company at the center of the agentic economy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to rapid technological changes and emphasized the importance of AI in reshaping business operations [6][15] - The company anticipates continued growth in bookings and revenue, despite short-term impacts from changes in go-to-market strategy and contract terms [24][27] - Management highlighted the strong customer engagement metrics and the potential for long-term value creation through improved customer retention and attach rates [21][27] Other Important Information - The company exited the year with $1.1 billion in cash and total liquidity of $2.1 billion, maintaining a net leverage of 1.6x [22] - The new one-year domain offer successfully increased new customer volume, although it initially reduced upfront bookings and near-term revenue [13][24] Q&A Session Summary Question: Can you elaborate on the promotional offer with .com and its impact on bookings? - Management explained that the go-to-market evolution aims to attract more high-intent customers and optimize conversion rates, with positive results observed in February [33][34] Question: How are AI costs being managed and their impact on margins? - Management stated that they are disciplined in managing AI costs and have visibility into maintaining margins while investing in AI [37][40] Question: What is the outlook for active customer growth in 2026? - Management indicated that they expect to see sequential growth in active customers and believe the new go-to-market approach will serve as a tailwind [77][78] Question: How does the new go-to-market strategy address competitive dynamics? - Management noted that the strategy focuses on attracting high-intent customers and leveraging existing strengths to defend against competition [101][102]

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]