Latest news with #Airo
Telegraph
26-05-2025
- Business
- Telegraph
Troublesome tariffs and underwhelming results make the perfect moment to buy
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. There was a time when the ambitions of go-getters could be met by the demands of a nine-to-five job. Today, though, increasing numbers of upwardly mobile types want the added challenge, and income, of a side hustle. From selling home crafts to online tutoring, cottage-industry sidelines are blossoming and most of them require a presence on the world wide web. GoDaddy, the world's leading internet domain registration service, is benefiting from this entrepreneurial zeal. Over the last five years sales have grown at an annualised rate of 9pc while the company's underlying operating profits have compounded at an astronomical 33pc. A good deal of the growth is explained by the company's strategy of broadening the range of products it offers and its success at upselling to customers after they join. Core products, which includes domain names, hosting and security, still accounted for 63pc of revenues in the first quarter. But the 37pc of sales from applications and commerce is driving growth, with sales up 17pc in the first quarter compared with 3pc for core products. Application and commerce products are also higher margin. The value-added offering includes things such as payments, marketing, branding and content services. GoDaddy has also introduced an AI-powered platform called Airo that helps customers make better use of the full range of its products. Airo is proving very popular and driving increased takeup. The focus on product and platform innovation is underpinned by healthy levels of research and development (R&D) spending. R&D has increased threefold over the last 10 years to more than $800m (£591m) in 2024, equivalent to 18pc of sales. GoDaddy's focus on small businesses does expose it to wider economic conditions, which means that worries around Trump's tariffs hurting business are a concern. However, the company also offers some defensive attributes. For one thing, the services it offers customers are normally central to their ambitions. Being without a website these days is akin to being without a business card. That means domain names are normally only relinquished only when the last glimmer of hope for a venture dies. The services the company provides are also outside the reach of proposed tariffs, insulating it from their direct impact. The business is also extremely cash generative. Many of the services the company provides are paid for upfront, which means reported free cash flow regularly exceeds the group's reported earnings. At the end of 2024, the balance sheet showed $2.2bn of advanced payments on revenue not yet recognised, compared with $4.6bn of reported revenue for the year. Brokers are forecasting for net debt to tumble over the coming years leaving the group in a net cash position by the end of 2027. Comfort in GoDaddy's resilience can also be taken from the level of support it has from the world's best fund managers. Ten of these individuals, all ranked among the top performing 3pc of equity managers globally by financial publisher Citywire, hold shares in GoDaddy. The conviction with which these top professional investors hold the stock has resulted in the company attaining Citywire's top AAA Elite Companies rating. In common with many US growth companies GoDaddy makes large share-based payments, which represented a near $300m cost to shareholders last year. It is in the habit of highlighting 'normalised' earnings figures that exclude this very real expense. That said, it uses its strong cash flows to buy back more shares than it issues and has reduced its share count by 18pc since the end of 2019. While GoDaddy favours buybacks over dividends, British buyers of the shares should still fill out the correct forms to minimise withholding tax as well as checking for any extra overseas dealing costs with brokers. The company's last two quarterly earnings reports have underwhelmed. Fourth quarter numbers were a little disappointing while recent first quarter results, although ahead of expectations on most measures, led some analysts to worry about the rate of new customer wins. The company regards lower wins as temporary and less important than growth in order size by upselling. The benefit of these market jitters has been to take some froth off the valuation of the shares. While a forecast price-to-earnings ratio of 28 for next year sounds high, this is expected to drop rapidly to 18 times over three years. More significantly, though, advanced payments mean the valuation looks a lot more tempting based on free cash flow (FCF). The forecast FCF yield for the next year is a hearty 6.4pc rising to 7.2pc in the following 12 months. That looks an attractive price for such strong prospects. Ticker: NYSE:GDDY
Associated Press
17-05-2025
- Business
- Associated Press
GoDaddy 2024 Sustainability Report: About GoDaddy
Originally published in GoDaddy's 2024 Sustainability Report About Us We're a trusted partner for millions of entrepreneurs globally. GoDaddy helps entrepreneurs around the globe start, grow, and scale their businesses. People come to us to name their idea, build a website and logo, sell their products and services, and accept payments. GoDaddy Airo®, the company's AI-powered experience, makes growing a small business faster and easier by helping customers get their idea online in minutes, enabling them to drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. OUR MISSION To empower entrepreneurs everywhere, making opportunity more inclusive for all. Our Products & Services GoDaddy is a global leader serving a large market of entrepreneurs, developing and delivering easy-to-use solutions as a one-stop shop provider, alongside personalized guidance. We serve small businesses, individuals, organizations, developers, designers, and domain investors. We are passionate about our mission and honored that entrepreneurs trust us with their ideas. 2024 Sustainability Highlights At GoDaddy, we aim to promote a sustainable and inclusive future. Our 2024 environmental, social, and governance (ESG) initiatives reflect our dedication to positively impacting the communities we serve, empowering entrepreneurs everywhere, ensuring ethical business practices, and encouraging innovation while driving business value and minimizing our environmental footprint. Customers & Communities Our customers and the communities in which we operate are at the heart of our mission. People & Culture A thriving workplace culture drives our success. • Employee Engagement: 84% of our employees participated in GoDaddy Voice, our annual employee survey, revealing that employees feel a strong sense of trust and support within our teams. We're using the feedback to continue creating a positive working environment and culture. Responsible Governance & Operations We uphold the highest standards of ethics, compliance, and accountability. Environmental Impact We continue to take decisive action toward environmental sustainability. To learn more, read our 2024 Sustainability Report. About This Report This GoDaddy 2024 Sustainability Report details our progress toward our corporate sustainability goals, strategies, and initiatives in support of our overarching corporate mission and values. Unless otherwise noted, this report reflects our corporate sustainability performance across our global operations covering the fiscal year period from January 1 to December 31, 2024. To demonstrate our commitment to transparent communication regarding our sustainability progress, we routinely share updates through our website and our annual Sustainability Report. We welcome your questions, comments, and feedback on this report by contacting [email protected]. This report references the Global Reporting Initiative (GRI) Standards, includes select Sustainability Accounting Standards Board (SASB) metrics for the Internet Media and Services sector, and the Task Force on Climate Related Financial Disclosures (TCFD). We also disclose our contributions and progress toward priority UN SDGs. For additional information on how we align with these frameworks and key indicators demonstrating our sustainability performance, please refer to the Frameworks & Metrics section. 1 Represents the total number of entrepreneurs that have had at least one contact (i.e., group workshop, facilitated course, one-on-one mentorship) or who have completed one course in the online self-serve learning portal. 2AI includes Artificial Intelligence, Machine Learning, Agentic AI, Generative AI, or other similar tools. Visit 3BL Media to see more multimedia and stories from GoDaddy
Yahoo
16-05-2025
- Business
- Yahoo
GDDY Q1 Earnings Call: AI Initiatives and Bundling Drive Margin Expansion Amid Customer Base Stability
Domain registrar and web services company GoDaddy (NYSE:GDDY) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 7.7% year on year to $1.19 billion. The company expects next quarter's revenue to be around $1.21 billion, close to analysts' estimates. Its non-GAAP profit of $2.10 per share was 12.8% above analysts' consensus estimates. Is now the time to buy GDDY? Find out in our full research report (it's free). Revenue: $1.19 billion vs analyst estimates of $1.19 billion (7.7% year-on-year growth, 0.6% beat) Adjusted EPS: $2.10 vs analyst estimates of $1.86 (12.8% beat) Adjusted Operating Income: $247.3 million vs analyst estimates of $241.7 million (20.7% margin, 2.3% beat) The company reconfirmed its revenue guidance for the full year of $4.9 billion at the midpoint Operating Margin: 20.7%, up from 15.9% in the same quarter last year Free Cash Flow Margin: 34.4%, up from 28.7% in the previous quarter Customers: 20.48 million, down from 20.51 million in the previous quarter Net Revenue Retention Rate: 85.4%, in line with the previous quarter Annual Recurring Revenue: $4.05 billion at quarter end, up 7.5% year on year Billings: $1.35 billion at quarter end Market Capitalization: $27.07 billion GoDaddy's first quarter results were shaped by operational progress on pricing, bundling, and product innovation, particularly within its Artificial Intelligence (AI)-powered tools. CEO Aman Bhutani highlighted the ongoing shift from product-centric to customer cohort-driven strategies—especially in pricing and bundling—as a core factor driving higher average order sizes and improved customer retention. Notably, GoDaddy's seamless experience initiative and expanded commerce offerings, including GoDaddy Capital and same-day payouts, contributed to higher engagement and renewal rates. Looking ahead, management reaffirmed its full-year revenue outlook, citing continued confidence in the company's ability to attract higher lifetime value customers and expand free cash flow. CFO Mark McCaffrey emphasized that the company's operational discipline, investments in marketing for the Airo platform, and continued innovation in AI and automation remain central to their margin expansion targets. While GoDaddy acknowledged modest headwinds in small business sentiment, management stated that customer resilience and a favorable product mix underpin their guidance for the remainder of the year. GoDaddy's management attributed the quarter's revenue and margin gains to progress on its AI-driven product suite, disciplined execution on pricing and bundling, and ongoing efforts to attract higher value customers. The company also extended its share repurchase program, reflecting confidence in its capital return framework. AI-powered product engagement: The rollout of Airo, GoDaddy's generative AI platform, continued to drive increased product attachment and customer engagement. Management noted that Airo customers are purchasing more products and demonstrating higher renewal rates. Early results from Airo Plus, the premium tier, are encouraging but still in the initial testing phase. Bundling and pricing strategy: Management's shift from product-based to customer cohort-based pricing and bundling delivered ahead of internal expectations. The company is testing new bundles across segments, leveraging its platform to quickly integrate both proprietary and third-party products, which is expanding average order size and customer retention. Commerce and payments growth: GoDaddy's commerce segment saw healthy annualized gross payments volume growth, primarily from deeper conversion within its existing customer base. New offerings such as GoDaddy Capital (merchant cash advance) and same-day payouts are gaining traction, broadening the company's one-stop-shop value proposition. Operational efficiency and margin expansion: The company expanded its normalized EBITDA margin, crediting favorable product mix, infrastructure simplification, and disciplined marketing spend, especially around AI-driven products. Management reiterated that product mix—not one-off cost savings—was the primary driver of margin gains. Capital allocation and buybacks: With the prior $4 billion repurchase program completed, GoDaddy's board approved a new $3 billion share repurchase authorization through 2027. Management reiterated its focus on returning value to shareholders within a disciplined capital allocation framework. GoDaddy's management outlined a future focused on expanding its high-intent customer base, further AI integration, and disciplined capital deployment, with ongoing macroeconomic monitoring. AI and automation rollout: The company expects continued improvements in customer engagement and retention as Airo and Agentic AI features automate more tasks for small businesses, supporting lifetime value growth. Bundling and pricing optimization: Further testing of customer cohort-driven bundles and rapid integration of third-party solutions are expected to sustain higher average order size and lower churn rates, supporting both revenue and margin expansion. Customer base and macro resilience: Management is watching for stabilization and return to customer growth as the company laps prior divestitures, while monitoring small business sentiment for potential economic headwinds. Elizabeth Porter (Morgan Stanley): Asked about small business sentiment and potential macro pressures; management noted resilience but acknowledged some pressure, relying on strong retention and value delivered to customers. Ygal Arounian (Citigroup): Inquired about trends in average order size and Airo/Airo Plus adoption; management said average order size gains persist, with Airo driving faster product attachment and improved retention, while Airo Plus remains early-stage. Vikram Kesavabhotla (Baird): Sought details on Agentic AI and bundling; CEO Bhutani explained Agentic AI's future role in automating tasks for microbusinesses and described ongoing bundling tests as key to value creation. Trevor Young (Barclays): Asked about the path to renewed customer growth and gross margin drivers; management emphasized a strategy of focusing on higher-intent customers and attributed margin expansion to favorable product mix rather than cost reductions. Brad Erickson (RBC): Probed the relative impact of pricing vs. bundling; management said the highest customer lifetime value comes from well-integrated bundles, making it difficult to separate the two. In coming quarters, the StockStory team will be watching (1) the adoption and monetization of Airo Plus and its impact on customer engagement, (2) results from ongoing bundling and pricing experiments across customer cohorts, and (3) whether GoDaddy can achieve a return to customer growth as it laps prior divestitures. The pace of uptake for new commerce and payments offerings will also be a critical indicator of progress. GoDaddy currently trades at a forward price-to-sales ratio of 5.5×. Should you load up, cash out, or stay put? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Axios
14-05-2025
- Business
- Axios
High-speed Airo trains are coming to Seattle
Seattle is a step closer to getting new, faster Amtrak trains. Driving the news: Construction has begun at Amtrak 's Seattle maintenance facility to help launch the company's new Airo trains, which can travel 125 miles per hour. Why it matters: The trains — which promise faster and more comfortable rides — are set to debut first on the Amtrak Cascades route, which connects Seattle to Portland and Vancouver B.C. The trains are slated to be in service on the route by the end of next year, according to Amtrak spokesperson W. Kyle Anderson. State of play: In the meantime, Seattleites may notice major work happening in SoDo. By the numbers: The $300 million maintenance facility will stretch 600 feet — almost two football fields. That's long enough to accommodate the full Airo "trainset," which can't be separated like older railcars, Anderson told Axios. 500,000 gallons of groundwater will be pumped out daily during construction, enough to fill 15 swimming pools. (The site sits on a former tidal bed filled with early Seattle landfill.) The facility will be anchored by steel piles driven 140 feet into the ground, which would stretch out 17 miles if lined up end to end. The bottom line: While Seattle's Airo facility is the second to break ground, after Philadelphia, it will be the first to open, per Anderson.
Yahoo
06-05-2025
- Business
- Yahoo
Seattle's $300M Amtrak expansion to bring modern trains, transportation by 2027
This story was originally published on Amtrak ridership is now well above pre-pandemic levels between Portland and British Columbia, and it's only expected to grow as new trains debut in Seattle next year. Only the horn of a passing train was capable of drowning out the sound of pile-driving at the new maintenance facility under construction, just south of Holgate in SODO. This $300 million expansion project is needed so Amtrak can upgrade its trains and streamline maintenance. Amtrak President Roger Harris visited the site on Friday for the first time. 'It's really impressive, not only how much work has been done this quickly, but how large the facility is going to be,' he said in the shadow of massive piles being driven into the ground. Because of the soft and wet soil, workers are de-watering 500,000 gallons from the site a day so they can install 140-foot-long pilings into the ground. When finished, the new 600-foot-long building will be able to accommodate Amtrak's new Airo trains, which will debut in Seattle next year. The amenities and frequency of the new Amtrak trains 'It has 5G Wi-Fi,' Harris said. 'It has a modern food service car, modern seating, lighting, etc, so the entire customer experience is far more contemporary.' The new building is designed for these new trains and will make the maintenance process much more efficient. 'The trains will come in every day or so. They get a certain level of maintenance that's planned in advance,' Harris said. 'You don't have to separate the train, move it to a different building, put it back together, etc. So it's a much more careful car graph maintenance program, I would say.' It will also keep the trains and the workers out of the rain. 'In the climate here in the Pacific Northwest, being able to put all the maintenance under cover 24/7 and have an air-conditioned work environment. It is also a substantially better work environment that improves worker productivity,' Harris said. The new 100,000 square foot maintenance building is expected to open in 2027. It will be the first new maintenance yard to open out of the six Amtrak is building around the country. Nearly one million people rode the Amtrak Cascades line last year. That's a 41% increase over ridership in 2023, and has surpassed pre-pandemic ridership numbers in 2019. Chris Sullivan is a traffic reporter for KIRO Newsradio. Read more of his stories here. Follow KIRO Newsradio traffic on X.
