GoDaddy Inc. Q1 FY2026 earnings call

GoDaddy serves over 20 million global customers with an integrated AI-powered platform. Made progress on AI-native products, e.g., Aero AI Builder with strong early adoption. Expanded agent name service as a new identity layer. Deployed AI across operations for efficiency, e.g., Aero CARE in support and AeroSales agent in sales. Executed on pricing, bundling, seamless experience, and commerce, refined promotional offer, removed lower-value product.

Q1 revenue grew 6%. Normalized EBITDA margin was 33%, up over 200 basis points. Total revenue was $1.3 billion, up 6% on reported and constant currency basis. ANC segment revenue grew 12% to $500 million, representing approximately 40% of total business. Core platform segment revenue grew 3% to $769 million. ANC ARR grew 10%, core platform had 5% growth in primary domains with stronger mix towards higher-priced non-dot-com TLBs. Total bookings grew 3%, ANC bookings grew 9%, core platform bookings declined 1%. ARPU grew 9% to $246.

Reaffirmed full-year 2026 guidance: total revenue range 5.195 - 5.275 billion, growth 6% midpoint. Q2 target revenue 1.285 - 1.305 billion, 6% midpoint growth. Normalized EBITDA margin expected ~33% in Q2 and over 33% full year. Full-year free cash flow target ~$1.8 billion, on track to exceed 20% CAGR.

Forward-looking statements subject to risks and uncertainties in SEC filings. Impact of AI transformation execution risks. Competition and market dynamics risks.

Q: On customer base and product portfolio, how ensure right customers and measure quality; on AI efficiencies flow through.

A: Attract high-intent customers via activation/attach of other products; balance margin expansion, AI investment with return focus.

Q: On Aero AI Builder ARR, growth potential; on hosting for AI workloads.

A: Early $10M+ annualized bookings run rate, early stage; Aero AI Builder uses GoDaddy hosting, focus on customer base.

Q: On bookings growth shape, capital allocation.

A: Bookings growth on par or above; capital allocation based on history, buybacks strong lever.

Q: On Aero AI Builder unit economics, WFOSM upgrade pricing.

A: Early, gross margin positive; WFOSM upgrade pricing tied to customer experience parity.

Q: On A&C Booking growth, impact of promos.

A: Impact from go-to-market offers and pricing of WFOSM upgrade.

Q: On Aero AI Builder monetization, international revenue growth.

A: Monetization via subscription and credits; international revenue growth due to tougher aftermarket compare.

Q: On ANS competitive advantage, domain business strategy.

A: ANS competitive via open standard, domain name role; domain business focus on high-intent customers.

Q: On Aero website builder traffic, marketing for AI builder.

A: Small traffic from GoDaddy.com, ramping marketing in Q2 with data-driven approach.

Q: On removed lower value product, impact.

A: Retired old product, little impact on bookings, slight on churn.

Q: On AI in top-of-funnel, GoDaddy's positioning.

A: Saw some search traffic impact, focus on providing value wherever customer journeys start.

Q: On AeroCare in international markets, impact.

A: AeroCare helps compete better in international markets, enable aggressive entry.