GoDaddy Inc.

What they do

GoDaddy sells domain registration, hosting, website building, security, email and commerce tools to small businesses, individuals, organizations, developers, designers and domain investors. The company organizes customer needs around an 'Entrepreneur's Wheel' of Identity, Presence and Commerce, spanning domain names and email to websites, marketing and payments. It reports in two segments: Applications and Commerce, which includes proprietary software such as website building and commerce solutions, and Core Platform, which includes domain registrations and renewals, aftermarket sales, domain protection, hosting and security. Support is delivered through GoDaddy Guides and AI-powered experiences under the Airo platform.

Revenue drivers

• Core Platform — Primarily domain registrations and renewals, aftermarket domain sales, domain protection, website hosting and website security, plus products without a software component. Generated $783.2 million, or 60.3% of Q2 2026 total revenue, growing 3.9% year over year.
• Applications and Commerce — Proprietary software including website building, proprietary commerce solutions, and third-party email and productivity solutions, plus bundled offerings of proprietary software. Generated $514.8 million, or 39.7% of Q2 2026 total revenue, growing 11.0% year over year.
• International — Revenue from outside the United States reached $427.1 million in Q2 2026, up 7.9% reported and 7.1% constant currency, representing about a third of total revenue.
• GoDaddy Airo — AI-powered toolset spanning domain search, logo creation, website building and email setup. Management reported an annualized bookings run rate of $50 million, five times the $10 million cited one quarter earlier.

Recent performance

For the second quarter ended June 30, 2026, total revenue was $1,298.0 million, up 6.6% reported and 6.3% constant currency, with total bookings of $1,422.1 million, up 5.7%. Applications and Commerce revenue rose 11.0% to $514.8 million while Core Platform rose 3.9% to $783.2 million. Operating income was $342.5 million, up 28.6% and a 26.4% margin, and net income was $240.1 million, up 20.1%. Net cash provided by operating activities was $442.5 million, up 16.5%, and free cash flow was $443.5 million, up 13.7% on the Normalized EBITDA measure of $434.1 million.

Strategy

Management is pursuing a company-wide AI transformation centered on Airo, describing it as an agentic operating system for customers, and is converting AI-powered solutions into agentic tools that handle tasks such as domain naming, logo creation and website building. GoDaddy announced its intent to contribute Agent Name Service to the Linux Foundation and is co-developing Agentic Resource Discovery with Cisco, Databricks, GitHub, Google, Hugging Face, Microsoft, Nvidia, Salesforce, ServiceNow and Snowflake. It launched the GoDaddy Developer Platform with APIs that let developers and AI systems search, purchase, configure and manage domains. Management cites a disciplined operating model and a returns-based approach to capital allocation, including substantial share buybacks.

Risks

• AI execution risk — The company states that its use, development and deployment of AI and other evolving technologies may present significant risks, including increased costs, litigation, reputational harm and liability.
• Customer growth dependence — GoDaddy states that if it cannot continue to increase sales to new and existing customers, its business and operating results would be harmed; total customers were 20.5 million, up 35 thousand since December 31, 2025.
• Competition — The company says it faces significant competition for its products, which it expects to intensify, and may not maintain or improve its competitive position or market share.
• International exposure — GoDaddy states that future growth depends in part on international revenue and that its continued international presence subjects it to additional risks, including foreign currency fluctuation.

Outlook

The provided excerpts do not include specific forward revenue or earnings guidance. Management said the second quarter reflects solid revenue growth, expanded profitability and strong free cash flow, and that it maintains a disciplined, returns-based approach to capital allocation through share buybacks. The company frames its AI transformation as ongoing, with Airo momentum cited as evidence it is meeting small businesses where they are going.