Q2 2025 GoDaddy Inc Earnings Call Transcript
Key Points
- GoDaddy Inc (GDDY) reported strong financial performance with A&C bookings growing by 12% and normalized EBITDA margin expanding by nearly 200 basis points.
- The company raised its full-year 2025 free cash flow guidance to approximately $1.6 billion, reflecting a 21% growth.
- GoDaddy Inc (GDDY) is making significant progress in AI integration, with the introduction of Agentic AI and the Ask Airo feature, enhancing customer experience and operational efficiency.
- The company's pricing and bundling initiatives are on track, contributing to both A&C and core platform growth, with promising early results from new partnership capabilities.
- GoDaddy Inc (GDDY) achieved a milestone in its commerce initiative, surpassing $3 billion in annualized gross payments volume, indicating strong customer conversion and strategy resonance.
- GoDaddy Inc (GDDY) will no longer operate as the registry service provider for the dotco top-level domain, which is expected to cause a 50-basis-point headwind to bookings and revenue in Q4.
- The company is still experiencing some residual pressure from customer migrations, affecting total customer count growth.
- Despite the positive momentum, the company faces challenges in maintaining the same level of margin improvement in the second half of the year compared to the first half.
- The rollout of new AI-driven products like Airo Plus is still in early stages, and the company continues to test and refine these offerings.
- GoDaddy Inc (GDDY) is navigating changes in SEO dynamics, which could impact how its own and its customers' websites are found online.
(video playing)
Welcome to GoDaddy's second-quarter 2025 earnings call. Thank you for joining us. I'm Christie Masoner, VP of Investor Relations. And with me today are Aman Bhutani, Chief Executive Officer; and Mark McCaffrey, Chief Financial Officer. Following prepared remarks, we will open up the call for your questions. (Operator Instructions)
On today's call, we'll be referencing both GAAP and non-GAAP financial measures and other operating and business metrics. A discussion of why we use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalents may be found in the presentation posted to our Investor Relations site at investors.godaddy.net or in today's earnings release on our Form 8-K furnished with the SEC.
Growth rates represent year-over-year comparisons unless otherwise noted. The matters we'll be discussing today include forward-looking statements, such as those related to future financial results and our strategies or objectives with respect to
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