GoDaddy narrowed its outlook for full-year revenue on Thursday and reported second-quarter top-line results that largely matched market estimates, signaling a period of more cautious near-term growth for the domain registrar and web services provider.
The Tempe, Arizona-based company said it now expects full-year revenue to fall between $5.215 billion and $5.255 billion, tightening the prior range of $5.195 billion to $5.275 billion. For the second quarter, GoDaddy delivered revenue of $1.298 billion, compared with the $1.295 billion consensus compiled by LSEG.
Looking ahead, management provided a third-quarter revenue forecast in the range of $1.32 billion to $1.34 billion, which the company indicated is consistent with analyst estimates.
GoDaddy has made substantial investments in artificial intelligence tools intended to help small and medium-sized businesses build and automate websites. Central to that effort is the Airo.ai platform, introduced last year, which generates logos, websites and branded marketing assets by leveraging a customer’s existing database. The company said Airo.ai has seen rapid expansion since launch.
Despite those investments, management pointed to slower adoption of AI tools and weaker customer acquisition as factors behind the more constrained revenue outlook. GoDaddy also faces strong competition from rivals such as Wix, which the company noted has been expanding its own AI-powered website-building capabilities.
CEO Aman Bhutani described Airo as the focal point of a company-wide AI transformation, calling it an "agentic operating system" intended to help customers accomplish more using automated capabilities and existing customer data.
The quarter and the revised guidance paint a picture of a business investing heavily in AI-enabled products while navigating near-term execution challenges related to customer growth and competitive dynamics in the website-building market.
Financial metrics referenced
- Full-year revenue guidance: $5.215 billion to $5.255 billion (previously $5.195 billion to $5.275 billion)
- Second-quarter revenue: $1.298 billion (LSEG estimate: $1.295 billion)
- Third-quarter revenue guidance: $1.32 billion to $1.34 billion (in line with estimates)