GoDaddy Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GDDY?
Source: seekingalpha
- Strong Financial Performance: GoDaddy's Q4 total revenue grew by 7% to $1.3 billion, with international revenue rising 10% to $420 million, indicating robust performance in global markets, while Applications & Commerce (A&C) revenue increased 13% to $498 million, further solidifying its market position.
- AI-Driven Product Innovation: CEO Bhutani emphasized advancements in AI, particularly the evolution of Airo.ai aimed at enhancing product experiences for small businesses, which not only boosts customer satisfaction but also lays the groundwork for future revenue growth.
- Optimistic Outlook: GoDaddy expects total revenue for 2026 to range between $5.195 billion and $5.275 billion, reflecting approximately 6% growth, with management projecting EBITDA margins to exceed 33%, showcasing confidence in the company's future financial health.
- Market Strategy Adjustment: The new one-year domain offer has driven strong subscription unit growth, although short-term impacts from pricing and contract term changes have affected bookings and revenue growth; however, management believes these strategies will attract more high-intent customers and enhance long-term value.
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Analyst Views on GDDY
Wall Street analysts forecast GDDY stock price to rise
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 87.760
Low
85.00
Averages
166.38
High
240.00
Current: 87.760
Low
85.00
Averages
166.38
High
240.00
About GDDY
GoDaddy Inc. is engaged in serving a market of entrepreneurs, developing and delivering easy-to-use products in a one-stop shop solution alongside personalized guidance. The Company serves small businesses, individuals, organizations, developers, designers and domain investors. The Company's segments include Applications and Commerce (A&C) and Core Platform (Core). The A&C segment primarily consists of sales of products containing proprietary software, notably its Website building products, as well as its commerce products and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of its proprietary software products. The Core segment primarily consists of sales of domain registrations and renewals, aftermarket domain sales, Website hosting products and Website security products when not included in bundled offerings of its proprietary software products, as well as sales of products not containing a software component.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GoDaddy Shares Drop 8.23% Post Q4 2025 Earnings Report
- Earnings Beat: GoDaddy's Q4 2025 earnings report exceeded EPS estimates, although specific figures were not disclosed, indicating a positive signal regarding the company's profitability.
- Stock Price Reaction: Despite the strong earnings performance, GoDaddy's shares fell 8.23% in after-hours trading to $84.70, suggesting market concerns about future prospects that could undermine investor confidence.
- Market Sentiment: The significant drop in stock price may reflect investor skepticism regarding the company's growth potential in a highly competitive industry, potentially leading to capital outflows.
- Need for Strategic Adjustment: In light of the stock decline, GoDaddy may need to reassess its market strategies and operational efficiencies to restore investor confidence and drive stock recovery.
See More
GoDaddy Q4 2025 Earnings Call Insights
- Strong Financial Performance: GoDaddy's Q4 total revenue grew by 7% to $1.3 billion, with international revenue rising 10% to $420 million, indicating robust performance in global markets, while Applications & Commerce (A&C) revenue increased 13% to $498 million, further solidifying its market position.
- AI-Driven Product Innovation: CEO Bhutani emphasized advancements in AI, particularly the evolution of Airo.ai aimed at enhancing product experiences for small businesses, which not only boosts customer satisfaction but also lays the groundwork for future revenue growth.
- Optimistic Outlook: GoDaddy expects total revenue for 2026 to range between $5.195 billion and $5.275 billion, reflecting approximately 6% growth, with management projecting EBITDA margins to exceed 33%, showcasing confidence in the company's future financial health.
- Market Strategy Adjustment: The new one-year domain offer has driven strong subscription unit growth, although short-term impacts from pricing and contract term changes have affected bookings and revenue growth; however, management believes these strategies will attract more high-intent customers and enhance long-term value.
See More
GoDaddy Q4 Earnings Beat Estimates, Shares Drop
- Earnings Beat: GoDaddy's Q4 2025 earnings report revealed an EPS of $1.80, exceeding the $1.58 estimate by 13.92%, yet shares fell 8.23% in after-hours trading to $84.70, indicating market concerns about future prospects despite the earnings success.
- Revenue Growth: The company reported a revenue increase of $81 million year-over-year, reaching approximately $1.27 billion, demonstrating its ongoing growth in the competitive web services market, but the significant drop in stock price suggests a lack of investor confidence in its long-term performance.
- Analyst Target Downgrade: Recent analyst actions have lowered GoDaddy's 12-month price target to $156.25, down 10.59% from $174.75, reflecting a weakened market outlook on the company's future profitability, which may influence investor decisions.
- Weak Market Performance: With a market capitalization of $12.47 billion, GoDaddy's stock has declined 46.98% over the past year, currently positioned about 5.17% above its annual low, indicating a weak long-term trend that necessitates clear recovery signals before investors consider significant moves.
See More
GoDaddy Forecasts Annual Revenue Below Expectations Amid AI Adoption Concerns
- Revenue Forecast Downgrade: GoDaddy anticipates annual revenue between $5.20 billion and $5.28 billion, falling short of Wall Street's average estimate of $5.29 billion, indicating concerns over slow adoption of its AI tools that could hinder future growth.
- Stock Price Reaction: Shares of GoDaddy dropped nearly 8% in extended trading, reflecting market pessimism regarding the company's outlook, particularly in light of weakened customer acquisition in its core hosting business.
- AI Investment Strategy: Despite significant investments in AI integration and the launch of new tools aimed at helping small and medium-sized businesses automate their online presence, market acceptance of these tools appears insufficient, potentially leading to sluggish revenue growth.
- Fourth Quarter Performance: The company reported fourth-quarter revenue of $1.27 billion, largely in line with estimates; however, the overall revenue forecast downgrade may undermine investor confidence and impact future market performance.
See More
GoDaddy Exceeds Q4 Revenue Expectations but Guidance Falls Short
- Revenue Growth: GoDaddy reported Q4 revenue of $1.27 billion, reflecting a 6.8% year-on-year increase, which aligns with Wall Street expectations, indicating the company's ability to maintain sales stability in a competitive market.
- Earnings Performance: The GAAP EPS of $1.80 surpassed analyst estimates of $1.58 by 14%, showcasing the company's strong performance in cost control and profitability.
- Future Outlook: Despite a solid Q4 performance, the revenue guidance for Q1 CY2026 is set at $1.26 billion, falling short of the $1.28 billion expected by analysts, highlighting potential challenges in future growth.
- Customer Base: GoDaddy's customer count reached 20.42 million, an increase of 9,000 from the previous quarter, indicating improved customer growth; however, this did not translate into a corresponding increase in annual recurring revenue, suggesting difficulties in attracting larger clients.
See More
Analysis and Outlook: A Surge of Concerns
- Supreme Court Ruling: The Supreme Court's decision that certain tariffs were illegal led to a temporary boost in the markets on Friday.
- Presidential Tariffs: President Donald Trump's announcement of 15% global tariffs caused a decline in the markets on Monday.
See More
GoDaddy Shares Drop 8.23% Post Q4 2025 Earnings Report
- Earnings Beat: GoDaddy's Q4 2025 earnings report exceeded EPS estimates, although specific figures were not disclosed, indicating a positive signal regarding the company's profitability.
- Stock Price Reaction: Despite the strong earnings performance, GoDaddy's shares fell 8.23% in after-hours trading to $84.70, suggesting market concerns about future prospects that could undermine investor confidence.
- Market Sentiment: The significant drop in stock price may reflect investor skepticism regarding the company's growth potential in a highly competitive industry, potentially leading to capital outflows.
- Need for Strategic Adjustment: In light of the stock decline, GoDaddy may need to reassess its market strategies and operational efficiencies to restore investor confidence and drive stock recovery.
See More
GoDaddy Q4 2025 Earnings Call Insights
- Strong Financial Performance: GoDaddy's Q4 total revenue grew by 7% to $1.3 billion, with international revenue rising 10% to $420 million, indicating robust performance in global markets, while Applications & Commerce (A&C) revenue increased 13% to $498 million, further solidifying its market position.
- AI-Driven Product Innovation: CEO Bhutani emphasized advancements in AI, particularly the evolution of Airo.ai aimed at enhancing product experiences for small businesses, which not only boosts customer satisfaction but also lays the groundwork for future revenue growth.
- Optimistic Outlook: GoDaddy expects total revenue for 2026 to range between $5.195 billion and $5.275 billion, reflecting approximately 6% growth, with management projecting EBITDA margins to exceed 33%, showcasing confidence in the company's future financial health.
- Market Strategy Adjustment: The new one-year domain offer has driven strong subscription unit growth, although short-term impacts from pricing and contract term changes have affected bookings and revenue growth; however, management believes these strategies will attract more high-intent customers and enhance long-term value.
See More
GoDaddy Q4 Earnings Beat Estimates, Shares Drop
- Earnings Beat: GoDaddy's Q4 2025 earnings report revealed an EPS of $1.80, exceeding the $1.58 estimate by 13.92%, yet shares fell 8.23% in after-hours trading to $84.70, indicating market concerns about future prospects despite the earnings success.
- Revenue Growth: The company reported a revenue increase of $81 million year-over-year, reaching approximately $1.27 billion, demonstrating its ongoing growth in the competitive web services market, but the significant drop in stock price suggests a lack of investor confidence in its long-term performance.
- Analyst Target Downgrade: Recent analyst actions have lowered GoDaddy's 12-month price target to $156.25, down 10.59% from $174.75, reflecting a weakened market outlook on the company's future profitability, which may influence investor decisions.
- Weak Market Performance: With a market capitalization of $12.47 billion, GoDaddy's stock has declined 46.98% over the past year, currently positioned about 5.17% above its annual low, indicating a weak long-term trend that necessitates clear recovery signals before investors consider significant moves.
See More
GoDaddy Forecasts Annual Revenue Below Expectations Amid AI Adoption Concerns
- Revenue Forecast Downgrade: GoDaddy anticipates annual revenue between $5.20 billion and $5.28 billion, falling short of Wall Street's average estimate of $5.29 billion, indicating concerns over slow adoption of its AI tools that could hinder future growth.
- Stock Price Reaction: Shares of GoDaddy dropped nearly 8% in extended trading, reflecting market pessimism regarding the company's outlook, particularly in light of weakened customer acquisition in its core hosting business.
- AI Investment Strategy: Despite significant investments in AI integration and the launch of new tools aimed at helping small and medium-sized businesses automate their online presence, market acceptance of these tools appears insufficient, potentially leading to sluggish revenue growth.
- Fourth Quarter Performance: The company reported fourth-quarter revenue of $1.27 billion, largely in line with estimates; however, the overall revenue forecast downgrade may undermine investor confidence and impact future market performance.
See More
GoDaddy Exceeds Q4 Revenue Expectations but Guidance Falls Short
- Revenue Growth: GoDaddy reported Q4 revenue of $1.27 billion, reflecting a 6.8% year-on-year increase, which aligns with Wall Street expectations, indicating the company's ability to maintain sales stability in a competitive market.
- Earnings Performance: The GAAP EPS of $1.80 surpassed analyst estimates of $1.58 by 14%, showcasing the company's strong performance in cost control and profitability.
- Future Outlook: Despite a solid Q4 performance, the revenue guidance for Q1 CY2026 is set at $1.26 billion, falling short of the $1.28 billion expected by analysts, highlighting potential challenges in future growth.
- Customer Base: GoDaddy's customer count reached 20.42 million, an increase of 9,000 from the previous quarter, indicating improved customer growth; however, this did not translate into a corresponding increase in annual recurring revenue, suggesting difficulties in attracting larger clients.
See More
Analysis and Outlook: A Surge of Concerns
- Supreme Court Ruling: The Supreme Court's decision that certain tariffs were illegal led to a temporary boost in the markets on Friday.
- Presidential Tariffs: President Donald Trump's announcement of 15% global tariffs caused a decline in the markets on Monday.
See More
