Key Highlights
- GoDaddy shares surged 4% following Q1 adjusted earnings per share of $1.60, surpassing the Street’s $1.52 forecast by $0.08
- Quarterly revenue totaled $1.27 billion, meeting Wall Street projections
- Second quarter revenue outlook of $1.285B–$1.305B, with the midpoint marginally exceeding the $1.29B consensus estimate
- 2026 full-year revenue forecast of $5.195B–$5.275B, aligning closely with analyst predictions
- The company’s Airo AI solution reached a multi-million dollar annualized bookings run rate just weeks following its beta release
GoDaddy (GDDY) shares climbed 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.
Adjusted earnings per share reached $1.60, topping the $1.52 Wall Street consensus. Quarterly revenue totaled $1.27 billion, matching the range of $1.26 billion–$1.27 billion anticipated by market analysts.
Net income declined 2% on a year-over-year basis to $214.6 million, although the organization’s adjusted profitability indicators painted a more positive picture.
Normalized EBITDA reached $413.5 million, posting a 13% year-over-year increase and accounting for a 33% margin. Free cash flow advanced 15% to $473.6 million throughout the three-month period.
GoDaddy bought back 3.0 million shares for $279.7 million during the quarter. The organization maintained its annual free cash flow projection of roughly $1.8 billion.
Outlook for Q2 and Full Year
Regarding the second quarter, GoDaddy forecasted revenue between $1.285 billion and $1.305 billion. The $1.295 billion midpoint slightly surpasses the Wall Street consensus of $1.29 billion.
Full-year 2026 revenue guidance was set at $5.195 billion to $5.275 billion. The $5.235 billion midpoint practically matches the $5.236 billion analyst consensus.
CFO Mark McCaffrey emphasized “disciplined execution and driving compounding free cash flow” as the organization’s primary emphasis moving forward through the remainder of the year.
Artificial Intelligence Initiatives Show Traction
GoDaddy’s Airo AI platform is rapidly emerging as a significant component of the company’s narrative. The solution, which debuted in beta last year featuring five AI agents, has now grown to over two dozen.
These agents currently manage functions spanning logo design to promotional campaigns, all designed to assist small and medium-sized enterprises in establishing and maintaining their online presence.
Airo AI Builder achieved a multi-million dollar annualized bookings run rate mere weeks after its beta rollout, which management highlighted as preliminary proof of market acceptance.
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 organization’s artificial intelligence strategy forms the cornerstone of its approach for drawing additional small businesses to its ecosystem, with GoDaddy framing Airo as an all-in-one solution for micro-enterprise clients.
Shares traded up more than 4% in after-hours activity following the earnings announcement.
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