Key Highlights
- GoDaddy shares surged 4% following a Q1 adjusted earnings per share of $1.60, surpassing the Street’s $1.52 estimate by $0.08
- Quarterly revenue reached $1.27 billion, meeting Wall Street projections
- Q2 revenue outlook of $1.285B–$1.305B, with the midpoint modestly exceeding the $1.29B Street estimate
- Full-year 2026 revenue forecast of $5.195B–$5.275B, aligning with analyst expectations
- The company’s Airo AI platform achieved a multi-million dollar annualized bookings run rate just weeks after entering beta testing
GoDaddy (GDDY) shares rallied more than 4% during extended trading hours on April 30 following the release of first-quarter results that exceeded earnings projections while meeting revenue targets.
The web hosting and domain registration giant delivered adjusted earnings per share of $1.60, topping the analyst consensus estimate of $1.52. Quarterly revenue totaled $1.27 billion, matching the Street’s expectation range of $1.26 billion to $1.27 billion.
Net income declined 2% on a year-over-year basis to $214.6 million, although the company’s adjusted profitability indicators painted a more favorable picture.
Normalized EBITDA registered at $413.5 million, reflecting a 13% year-over-year increase and representing a 33% margin. Free cash flow expanded 15% to reach $473.6 million during the three-month period.
GoDaddy bought back 3.0 million shares for $279.7 million throughout the quarter. Management reiterated its full-year free cash flow objective of approximately $1.8 billion.
Forward Outlook for Q2 and Full Year
For the second quarter, GoDaddy forecasted revenue between $1.285 billion and $1.305 billion. The midpoint of $1.295 billion slightly surpasses the analyst consensus of $1.29 billion.
The company’s full-year 2026 revenue guidance landed at $5.195 billion to $5.275 billion. The midpoint of $5.235 billion tracks virtually in line with the consensus estimate of $5.236 billion.
CFO Mark McCaffrey emphasized “disciplined execution and driving compounding free cash flow” as the organization’s primary objective for the remainder of the year.
Artificial Intelligence Strategy Showing Early Results
GoDaddy’s Airo AI platform is rapidly emerging as a significant growth driver. The solution, which debuted in beta testing last year with five AI agents, has now grown to include more than two dozen.
These agents currently perform functions spanning logo design to marketing campaign development, all designed to assist small and medium-sized enterprises in establishing and managing their online footprint.
Airo AI Builder reached a multi-million dollar annualized bookings run rate just weeks following its beta release, which management highlighted as preliminary confirmation of market demand.
CEO Aman Bhutani stated that GoDaddy is “moving quickly to lead in this next phase of AI-driven innovation, focusing on helping entrepreneurs turn ideas into real businesses faster and more easily.”
The company’s artificial intelligence initiative represents a cornerstone of its approach to capturing additional small business customers, with GoDaddy framing Airo as an all-in-one solution for microbusiness clients.
Shares traded more than 4% higher in after-hours activity following the earnings announcement.
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