Loading...
01/11 03:24
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A reveal strong financial metrics with raised guidance, especially in free cash flow and revenue outlook. The positive sentiment is further supported by strong customer engagement and product attachment. Although there is some uncertainty in AI-driven commerce, GoDaddy's strategic focus on AI, customer retention, and domain growth presents a positive outlook. The raised guidance and strong performance across various segments, including aftermarket domains, suggest a likely positive stock price movement in the short term.
Total Revenue $1.3 billion, a 10% year-over-year growth, driven by broad-based growth in primary and secondary domain markets and momentum in A&C.
A&C Revenue $481 million, a 14% year-over-year growth, attributed to solid adoption and attach of subscription solutions.
Core Platform Revenue $784 million, an 8% year-over-year growth, driven by 28% growth in aftermarket and 7% growth in primary domains.
Normalized EBITDA $409 million, an 11% year-over-year growth, with a margin of 32%, reflecting AI-driven efficiencies and operational discipline, partially offset by gross margin pressure from product mix and AI investments.
Free Cash Flow $440 million, a 21% year-over-year growth, driven by bookings growth and strong customer cohorts.
ARPU (Average Revenue Per User) $237, a 10% year-over-year increase, boosted by higher attach rates and near-perfect retention in the $500+ customer cohort.
Retention Rates 85%, consistent year-over-year, highlighting the durability of the business model.
Total Customers 20.4 million, a sequential growth, underscoring GoDaddy's central role in bringing entrepreneurs to the Open Internet.
International Revenue 14% year-over-year growth, primarily driven by strength in primary and secondary domain markets.
Total Bookings $1.4 billion, a 9% year-over-year growth, with A&C bookings growing 14% and core platform bookings growing 6%.
Airo platform evolution: Transitioned from Generative AI to Agentic AI, launching 5 new Airo agents for tasks like domain name purchasing, website building, and logo creation. Beta launch of Airo.ai to test new agents and provide tailored customer support.
Agent Name Service (ANS): Introduced ANS to provide verifiable identities for AI agents, enhancing trust and security in the Agentic Open Internet.
International revenue growth: Achieved 14% growth in international revenue, driven by primary and secondary domain markets.
AI-driven efficiencies: Achieved 45% AI-generated code, with 90% for new applications, leading to faster product cycle times and reduced costs.
Normalized EBITDA margin: Delivered 32% margin, reflecting operational discipline and AI-driven efficiencies.
Pricing and bundling: Continued to deliver strong results by offering tailored bundles, enhancing customer value and engagement.
Seamless experience: Improved customer journeys using AI for personalized recommendations, boosting conversion and retention rates.
Commerce ecosystem: Strengthened with high-margin subscriptions like GoDaddy Capital and faster payouts, improving cash flow for entrepreneurs.
Regulatory Challenges: The expiration of the .CO registry contract is expected to impact Q4 revenue, highlighting potential regulatory and contractual risks.
Product Mix Pressure: Gross margin pressure is noted due to product mix, which could affect profitability.
AI Investment Costs: Continued investment in AI initiatives is partially offsetting operational efficiencies, indicating a financial strain from innovation efforts.
Market Competition: The need to maintain high attach rates and customer retention underscores competitive pressures in the domain and subscription markets.
Economic Uncertainty: The company’s reliance on high-margin subscriptions and international revenue growth could be vulnerable to broader economic conditions.
Operational Efficiency Risks: The shift to AI-driven efficiencies requires significant internal transformation, which may pose execution risks.
Full-Year 2025 Revenue Guidance: Raised to 8% growth, at the top end of the 3-year range of 6% to 8%, reflecting continued strength across the business.
Agentic Open Internet Vision: GoDaddy is transforming its platform to support an open, trusted, and accessible web with AI agents collaborating to complete tasks. This includes the evolution of the Airo platform from Generative AI to Agentic AI.
Airo Platform Evolution: Launched 5 new Airo agents with plans to release more in the coming weeks. These agents are designed to handle customer tasks like domain name purchasing, website building, and logo creation. Airo Plus will shift to an Agentic AI toolset for direct monetization.
AI-Driven Operational Changes: Company-wide goal to reach 70% AI-generated code by year-end. Currently at 45%, with higher rates for new applications. Focus is shifting to reducing product cycle time for faster development.
Agent Name Service (ANS) Launch: Introduced ANS to provide verifiable identities for AI agents, enhancing trust and collaboration across the open web. Partners are invited to join this ecosystem.
2025 Strategic Growth Initiatives: Pricing and bundling initiatives are on track, with plans to launch 2026 bundles. Seamless experience improvements are contributing to bookings growth, and commerce solutions are driving solid adoption and high-margin subscriptions.
Q4 2025 Revenue Guidance: Expected to be in the range of $1.255 billion to $1.275 billion, representing 6% growth at the midpoint. A&C growth projected in the low to mid-teens, and core platform growth in the low single digits.
Normalized EBITDA Margin: Projected to be approximately 32% for the full year and 33% for Q4 2025, balancing operational efficiency with AI investments.
Free Cash Flow Target: Reaffirmed at approximately $1.6 billion for the full year, representing over 18% growth.
Share Repurchase: GoDaddy repurchased 9 million shares for a total of $1.4 billion year-to-date. During the third quarter, they repurchased 4.1 million shares, totaling approximately $600 million. This reflects their commitment to shareholder returns and disciplined capital allocation.
The earnings call highlights several negative factors, including a decline in net operating income, increased repair and leasing costs, fair value losses, and decreased occupancy rates. The Q&A session reveals management's lack of concrete updates on key issues like leasing progress and financing, which might further concern investors. These issues, combined with the market rent reset and tenant failures, suggest a negative sentiment, likely leading to a stock price decline in the short term.
The earnings call summary and Q&A reveal strong financial metrics with raised guidance, especially in free cash flow and revenue outlook. The positive sentiment is further supported by strong customer engagement and product attachment. Although there is some uncertainty in AI-driven commerce, GoDaddy's strategic focus on AI, customer retention, and domain growth presents a positive outlook. The raised guidance and strong performance across various segments, including aftermarket domains, suggest a likely positive stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
