Core Insights - GoDaddy reported strong third-quarter results, with revenue of $1.3 billion, a 10% year-over-year increase, and raised its full-year outlook [1][4][8] - The company's Airo AI platform is enhancing average revenue per user, which grew by 10% in the third quarter [3][5][8] - Despite the growth in applications and commerce revenue, which soared 14%, the core domain registration business is slowing overall growth [4][6][8] Financial Performance - Earnings per share increased to $1.51 from $1.32 year-over-year [4] - Free cash flow reached $440 million in the third quarter, up 21% year-over-year, with an expected full-year free cash flow of around $1.6 billion [5] - GoDaddy raised its 2025 revenue outlook to a range of $4.93 billion to $4.95 billion, indicating an approximate 8% growth at the midpoint [5] Strategic Initiatives - GoDaddy is focusing on expanding its AI offerings, particularly through the Airo platform, which provides tools for domain name discovery, logo design, website building, and custom app creation [3] - The applications and commerce segment is expected to grow at a mid-teens percentage, driven by higher-value services [5][6] Market Position - GoDaddy's stock has decreased over 30% this year, but it appears inexpensive relative to free cash flow, with a market capitalization of roughly $18 billion [6] - The company is expected to see a shift in revenue dynamics as AI-related services grow, although this diversification will take time [7]

Company Overview - GoDaddy Inc. (GDDY) is a leading internet services company based in Arizona, with a market cap of $18.1 billion, specializing in domain registration, web hosting, website building, online marketing, and digital commerce tools for small businesses and entrepreneurs. The company was founded in 1997 and serves over 20 million customers while managing more than 80 million domain names worldwide [1]. Earnings Projections - GoDaddy is expected to release its Q3 2025 earnings on October 30, with analysts projecting earnings of $1.50 per share, representing a 13.6% growth from $1.32 in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two occasions [2]. - For fiscal 2025, analysts forecast an EPS of $5.84, marking a 20.4% increase from $4.85 reported in fiscal 2024. In fiscal 2026, earnings are expected to grow 22.1% annually to $7.13 per share [3]. Recent Performance - In the second quarter of fiscal 2025, GoDaddy reported revenue of $1.22 billion, an 8.3% year-over-year increase, exceeding Wall Street's estimate of $1.20 billion. The company's EPS rose 39.6% year-over-year to $1.41, also surpassing analysts' expectations of $1.34 [5]. - However, shares of GoDaddy fell about 3% after the announcement of ceasing operations as the registry service provider for the .CO top-level domain, which is expected to create a 50-basis-point headwind to bookings and revenue, primarily impacting the fourth quarter [6]. Stock Performance - GoDaddy's stock has declined 18.8% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund's 23.6% surge and the S&P 500 Index's 14.4% uptick during the same time frame [4]. Analyst Ratings - Analysts maintain a moderately optimistic view on GoDaddy, with an overall "Moderate Buy" rating. Out of 18 analysts covering the stock, there are nine "Strong Buys," one "Moderate Buy," and eight "Holds." The mean price target of $191.60 suggests a 44.7% upside potential from current price levels [7].