GoDaddy (NYSE:GDDY) Issues Earnings Results

Key Points

• GoDaddy beat Q1 estimates with EPS of $1.60 (vs. $1.53) and revenue of $1.27B (up 6% y/y), reported normalized EBITDA margin of 33% (+210 bps), free cash flow of $474M (+15%), and reaffirmed full‑year guidance including a ~$1.8B FCF target.
• Management said AI initiatives are gaining traction — Airo AI Builder scaled to a $10M+ annualized bookings run rate, Airo Care is deployed in 50+ markets/20 languages, and ARPU rose roughly 9%, supporting better unit economics.
• Risks remain as segment performance was mixed and bookings were modest (+3%); Aftermarket & Commerce grew ~12% while the core platform grew ~3%, with headwinds from the .co contract expiry and removal of a lower‑value product that reduced customer counts.

GoDaddy (NYSE:GDDY - Get Free Report) issued its earnings results on Thursday. The technology company reported $1.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.53 by $0.07, FiscalAI reports. GoDaddy had a return on equity of 366.98% and a net margin of 17.32%.The firm had revenue of $1.27 billion for the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter last year, the business earned $1.51 earnings per share. The company's revenue was up 6.1% compared to the same quarter last year.

Here are the key takeaways from GoDaddy's conference call:

• GoDaddy reported solid Q1 results with revenue up 6%, normalized EBITDA margin expanding to 33% (+210 bps), and free cash flow of $474M (+15%), while reaffirming full‑year guidance and a ~$1.8B FCF target.
• AI initiatives showed early commercial traction — Airo AI Builder scaled to a $10M+ annualized bookings run rate within weeks, Airo Care is deployed in 50+ markets/20 languages with meaningful resolution improvements, and AI sales agents are delivering human‑comparable conversions for smaller leads.
• Segment performance was mixed — high‑margin A&C grew 12% and now represents ~40% of revenue, while the core platform grew 3% (impacted by tougher aftermarket comps and the .co registry contract expiration); management expects A&C to grow low double digits and core low single digits for the year.
• Bookings were modest (+3%) and were pressured by the .co contract expiry, lapping strong prior aftermarket transactions, and the deliberate removal of a lower‑value product (which reduced customer counts despite little impact to bookings), signaling potential near‑term headwinds to customer growth and bookings cadence.

GoDaddy Stock Up 0.0%

NYSE GDDY traded up $0.03 during trading on Friday, hitting $86.82. The stock had a trading volume of 4,017,623 shares, compared to its average volume of 1,961,505. The company has a market capitalization of $11.58 billion, a PE ratio of 13.94, a P/E/G ratio of 0.80 and a beta of 0.92. The company's 50-day moving average price is $84.84 and its two-hundred day moving average price is $107.03. The company has a debt-to-equity ratio of 17.50, a quick ratio of 0.61 and a current ratio of 0.61. GoDaddy has a 12 month low of $73.06 and a 12 month high of $190.50.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Citigroup reduced their target price on GoDaddy from $195.00 to $110.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. JPMorgan Chase & Co. cut their price objective on GoDaddy from $167.00 to $154.00 and set an "overweight" rating on the stock in a report on Friday. Barclays cut their price objective on GoDaddy from $200.00 to $118.00 and set an "overweight" rating on the stock in a report on Thursday, February 26th. Piper Sandler initiated coverage on GoDaddy in a report on Thursday, March 12th. They set a "neutral" rating and a $93.00 price objective on the stock. Finally, Benchmark cut their price objective on GoDaddy from $195.00 to $185.00 and set a "buy" rating on the stock in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, GoDaddy presently has a consensus rating of "Moderate Buy" and an average price target of $120.93.

GoDaddy News Roundup

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: Q1 beat on both EPS and revenue, showing execution strength (EPS $1.60 vs. est. $1.53; revenue $1.27B vs. est. $1.26B) — confirms underlying growth and drove the initial rally. Zacks: Beats Q1 Earnings
• Positive Sentiment: AI platform (Airo) is accelerating monetization — ARPU rose ~9.3% y/y to $246 and management cited faster monetization, supporting better margins and cash generation. This is the main structural growth argument for the stock. Zacks: Airo Execution
• Positive Sentiment: Management/guidance tone is constructive: company forecasted quarterly revenue above estimates and issued FY revenue range roughly in line with consensus, reinforcing the AI-led growth narrative. Reuters: Forecasts Revenue Above Estimates
• Positive Sentiment: Market reaction: coverage and commentaries note a share-price pop after the print, reflecting investor enthusiasm around AI product traction and improving unit economics. Blockonomi: Stock Surges
• Neutral Sentiment: Press release and investor materials (slides, prepared remarks) are available for deeper reads on segment performance, cash flow and capital allocation—useful for modeling next quarters. PR Newswire: Q1 Results
• Neutral Sentiment: Some outlets characterize revenue as essentially in-line with expectations despite the beat—investors should focus on margin/ARPU trends and guidance cadence rather than headline revenue only. Yahoo Finance: Revenue In Line
• Negative Sentiment: JPMorgan trimmed its price target from $167 to $154 (while keeping an Overweight rating), which reduces some upside expectations and may cap near-term analyst-driven flows. TickerReport/Benzinga: JPMorgan Lowers PT

Insider Transactions at GoDaddy

In other GoDaddy news, Director Leah Sweet sold 650 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $86.86, for a total value of $56,459.00. Following the sale, the director owned 11,414 shares in the company, valued at approximately $991,420.04. The trade was a 5.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Amanpal Singh Bhutani sold 34,148 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $88.99, for a total value of $3,038,830.52. Following the completion of the sale, the chief executive officer owned 530,120 shares in the company, valued at $47,175,378.80. The trade was a 6.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 61,918 shares of company stock worth $5,500,469. 0.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GoDaddy

Several institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its position in shares of GoDaddy by 117.5% during the 4th quarter. AQR Capital Management LLC now owns 2,989,931 shares of the technology company's stock worth $370,991,000 after purchasing an additional 1,615,005 shares during the last quarter. Two Sigma Investments LP increased its position in shares of GoDaddy by 99.7% during the 3rd quarter. Two Sigma Investments LP now owns 1,631,100 shares of the technology company's stock worth $223,183,000 after purchasing an additional 814,360 shares during the last quarter. UBS Group AG increased its position in shares of GoDaddy by 43.2% during the 3rd quarter. UBS Group AG now owns 1,259,460 shares of the technology company's stock worth $172,332,000 after purchasing an additional 379,926 shares during the last quarter. Worldquant Millennium Advisors LLC acquired a new position in shares of GoDaddy during the 2nd quarter worth approximately $59,116,000. Finally, Amundi increased its position in shares of GoDaddy by 25.7% during the 4th quarter. Amundi now owns 1,598,493 shares of the technology company's stock worth $198,341,000 after purchasing an additional 326,734 shares during the last quarter. Institutional investors own 90.28% of the company's stock.

About GoDaddy

GoDaddy is a technology company that provides a suite of online services aimed primarily at small businesses, entrepreneurs and individuals looking to establish and grow an online presence. The company's core activities include domain name registration and aftermarket services, a range of website hosting options, and tools for building, managing and promoting websites. Its product mix is designed to simplify the technical aspects of running a website so customers can focus on their businesses.

Product and service offerings span website builders and managed WordPress hosting, shared and dedicated hosting, e-commerce capabilities, email and productivity solutions, SSL certificates and site security tools, and online marketing and search engine optimization services.

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