- Margin Expansion & Free Cash Flow: Normalized EBITDA margin expanded 200 bps to 31%, and free cash flow grew 21% to $392M, with full-year guidance raised to ~$1.6B.
- Agentic AI Integration: AI-driven tools are enhancing customer experiences, improving conversion rates (e.g., Airo boosting attach rates and order size), and streamlining internal operations.
- Revenue Growth Drivers: A&C revenue grew 14%, international revenue rose 11%, and commerce initiatives surpassed $3B in annualized gross payments volume.
- High-Intent Customer Cohorts: High-spend customers ($500+/year) saw significant growth, with near-perfect retention and higher average order sizes.
AI-Driven Transformation
The company is undergoing a fundamental shift powered by AI, with employees embracing AI and Agentic tools to accelerate velocity of execution. Agentic AI is unlocking new capabilities for GoDaddy's customers, and the company is testing a new conversational experience that lays the foundation for a fully guided and proactive digital experience powered by Agentic AI and empathetic care.
Go-to-Market Strategy
GoDaddy's go-to-market strategy is focused on attracting high-intent customers who adopt multiple products and generate high lifetime value. The company is seeing strong momentum in its customer cohorts, with those spending over $500 annually growing meaningfully and demonstrating near-perfect retention. According to CFO Mark McCaffrey, "We're seeing strong performance, with A&C revenue growth of 14%, normalized EBITDA margin expansion to 31%, and free cash flow growth of 21%."
Valuation
With a P/E Ratio of 25.03 and an EV/EBITDA of 21.91, GoDaddy's valuation appears to be pricing in its strong growth prospects. The company's ROIC of 17.22% and ROE of 214.84% suggest that it is generating strong returns on its investments. Meanwhile, the Free Cash Flow Yield of 7.21% indicates that the company is generating substantial cash flows.