Key Highlights
- GoDaddy shares climbed 4% following 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
- Second-quarter revenue outlook set at $1.285B–$1.305B, with the midpoint edging past the $1.29B consensus
- Fiscal 2026 revenue forecast placed at $5.195B–$5.275B, aligning closely with analyst models
- The company’s Airo AI suite achieved a multi-million dollar annualized booking rate shortly after entering beta testing
Shares of GoDaddy (GDDY) advanced more than 4% during extended trading on April 30 following the release of first-quarter financial results that exceeded earnings projections while meeting revenue targets.
The web hosting giant delivered adjusted earnings per share of $1.60, topping the analyst consensus of $1.52. Quarterly revenue totaled $1.27 billion, landing within the anticipated range of $1.26 billion to $1.27 billion.
Net income declined 2% on a year-over-year basis to $214.6 million, although alternative profitability measurements painted a more optimistic picture.
Normalized EBITDA reached $413.5 million, marking a 13% year-over-year increase and representing a 33% margin. The company generated $473.6 million in free cash flow during the period, reflecting 15% growth.
GoDaddy bought back 3.0 million shares for $279.7 million throughout the quarter. Management maintained its full-year free cash flow guidance of roughly $1.8 billion.
Forward-Looking Projections
For the second quarter, GoDaddy forecasted revenue between $1.285 billion and $1.305 billion. The $1.295 billion midpoint slightly exceeds the analyst consensus of $1.29 billion.
The company’s full-year 2026 revenue guidance spans $5.195 billion to $5.275 billion. At a midpoint of $5.235 billion, this projection virtually matches the Street’s $5.236 billion estimate.
CFO Mark McCaffrey emphasized “disciplined execution and driving compounding free cash flow” as central priorities for the remainder of the fiscal year.
Artificial Intelligence Initiatives Show Promise
GoDaddy’s Airo AI platform is emerging as a significant growth driver. Originally introduced in beta with five AI agents, the solution has expanded to encompass more than two dozen specialized tools.
These digital agents perform various functions from logo design to comprehensive marketing campaign development, all designed to support small and medium-sized enterprises in establishing and maintaining their online footprint.
The Airo AI Builder achieved a multi-million dollar annualized booking rate mere weeks after beta deployment, representing what management characterized as preliminary validation 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 artificial intelligence strategy represents a cornerstone of the company’s approach to capturing additional small business customers, with GoDaddy framing Airo as an integrated solution tailored for micro-enterprise clients.
Shares increased more than 4% in after-hours trading following the earnings announcement.
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