Q4 2025 GoDaddy Inc Earnings Call Transcript
Key Points
- GoDaddy Inc (GDDY) reported a 7% growth in bookings and a 32% expansion in normalized EBITDA margin for 2025.
- The company achieved a 19% increase in free cash flow, demonstrating strong operational execution.
- GoDaddy Inc (GDDY) is leveraging AI to enhance efficiency, with AI tools generating the majority of their code.
- The launch of Aero.ai in beta has shown promising engagement, with 25 AI agents live and more on the way.
- The company has a strong competitive position with over 20 million customers and a robust global brand.
- The promotional pricing strategy for dotcom domains led to reduced upfront bookings and term revenue.
- There is a near-term impact on bookings due to the shift to shorter initial contract terms.
- AI costs are expected to slightly offset the operational efficiencies and margin improvements.
- The new go-to-market strategy resulted in a reduction in average order size at initiation.
- Active customer growth is modest, with year-on-year growth still trending down.
(video playing)
Welcome to GoDadddy's fourth quarter and full year 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'll open up call for your questions. If you'd like to ask a question on today's call, please use the raise hand feature in the webinar to be added to the queue. On today's call, we'll be referencing both GAAP and non-GAAP financial measures and other operating and business metrics, a discussion of how to use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalents may be found in the presentation posted our investor relations site at Investors.co.g.net or in today's earnings release on our 48 k furnished with the SEC. Growth rates represent year over year comparisons unless otherwise noted. The matters will be discussing today include forward-looking statements such as those
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