GoDaddy (NYSE:GDDY) Releases Quarterly Earnings Results

GoDaddy (NYSE:GDDY) released its quarterly earnings results on Thursday. The technology company reported $1.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.07, FiscalAI reports. GoDaddy had a net margin of 17.32% and a return on equity of 366.98%. The company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the company earned $1.51 EPS. The firm’s revenue for the quarter 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 Trading Up 0.0%

Shares of GDDY traded up $0.03 during mid-day trading on Friday, hitting $86.82. The company had a trading volume of 4,017,623 shares, compared to its average volume of 1,961,505. The business’s 50-day simple moving average is $84.84 and its 200-day simple moving average is $107.03. The company has a quick ratio of 0.61, a current ratio of 0.61 and a debt-to-equity ratio of 17.50. GoDaddy has a 1-year low of $73.06 and a 1-year high of $190.50. The stock has a market cap of $11.58 billion, a PE ratio of 13.94, a P/E/G ratio of 0.80 and a beta of 0.92.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on GDDY. UBS Group decreased their price target on shares of GoDaddy from $145.00 to $105.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 25th. Evercore set a $95.00 price target on shares of GoDaddy in a research note on Wednesday, February 25th. Piper Sandler began coverage on shares of GoDaddy in a research note on Thursday, March 12th. They set a “neutral” rating and a $93.00 price target on the stock. Wells Fargo & Company raised their price target on shares of GoDaddy from $77.00 to $83.00 and gave the stock an “equal weight” rating in a research note on Friday. Finally, Jefferies Financial Group decreased their price target on shares of GoDaddy from $140.00 to $100.00 and set a “hold” rating on the stock in a research note on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, GoDaddy presently has an average rating of “Moderate Buy” and an average target price of $120.93.

Trending Headlines about GoDaddy

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 Activity at GoDaddy

In related news, CEO Amanpal Singh Bhutani sold 34,148 shares of the firm’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 sale, the chief executive officer directly owned 530,120 shares of the company’s stock, valued at approximately $47,175,378.80. This trade represents a 6.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Leah Sweet sold 650 shares of the firm’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 transaction of $56,459.00. Following the completion of the sale, the director directly owned 11,414 shares in the company, valued at $991,420.04. This represents a 5.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 61,918 shares of company stock valued at $5,500,469 over the last three months. Insiders own 0.70% of the company’s stock.

Institutional Investors Weigh In On GoDaddy

Hedge funds have recently modified their holdings of the stock. Brown Brothers Harriman & Co. boosted its position in shares of GoDaddy by 145.6% in the third quarter. Brown Brothers Harriman & Co. now owns 253 shares of the technology company’s stock worth $35,000 after acquiring an additional 150 shares during the last quarter. GW&K Investment Management LLC raised its holdings in GoDaddy by 57.6% in the fourth quarter. GW&K Investment Management LLC now owns 498 shares of the technology company’s stock valued at $62,000 after buying an additional 182 shares during the period. CIBC Private Wealth Group LLC raised its holdings in GoDaddy by 67.1% in the third quarter. CIBC Private Wealth Group LLC now owns 610 shares of the technology company’s stock valued at $83,000 after buying an additional 245 shares during the period. Los Angeles Capital Management LLC purchased a new position in GoDaddy in the fourth quarter valued at approximately $80,000. Finally, Osterweis Capital Management Inc. purchased a new position in GoDaddy in the second quarter valued at approximately $152,000. 90.28% of the stock is owned by institutional investors and hedge funds.

GoDaddy Company Profile

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.