Latest news with #AmanBhutani
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.
Entrepreneur
09-05-2025
- Business
- Entrepreneur
Many Small Business Owners Are Still 'Optimistic': Survey
A new report from GoDaddy found that despite the current economic climate, 66% of small business owners surveyed still have "positive revenue expectations." A new survey from website hosting company GoDaddy found that entrepreneurs are still optimistic about the economy, despite new pressures from tariffs. According to the new report, half of microbusiness owners surveyed said that they predict a "weaker economy in the next six months," but 66% of respondents still have "positive revenue expectations." Only 9% of the 2,100 business owners surveyed forecasted a sales decline. Related: GoDaddy's 3 Best Tips for Small Business Marketing Success "Small business owners believe in themselves," said GoDaddy CEO Aman Bhutani, in a statement. "GoDaddy's research shows they remain intent on pushing their small businesses forward." Microbusinesses are defined in the report as "small businesses that typically employ fewer than 10 employees." The report also found that entrepreneurs are changing their long-term goals to adapt to the current climate. About 40% of respondents said they expect to remain "solo entrepreneurs" (up from 36% last year) rather than start hiring and grow a bigger business. "Entrepreneurs are planning for what is ahead," Bhutani added. "They are navigating these times by staying focused and determined. At GoDaddy, our job is to make sure they have the tools they need to succeed." For the full report, click here. Related: How to Transform Companies From Within as an 'Intrapreneur,' According to a Microsoft Office and Yahoo Shopping Cofounder
CNBC
02-05-2025
- Business
- CNBC
GoDaddy CEO on Q1 earnings, customer growth and share pressure
Aman Bhutani, GoDaddy CEO, joins 'Closing Bell: Overtime' to discuss Q1 earnings, customer growth and declining shares.
Associated Press
02-05-2025
- Business
- Associated Press
GoDaddy 2024 Sustainability Report: A Message From Our Chief Executive Officer
Originally published in GoDaddy's 2024 Sustainability Report By Aman Bhutani Chief Executive Officer, GoDaddy A Message From Our CEO Our mission to empower entrepreneurs everywhere, making opportunity more inclusive for all is the driving force that brings us together. GoDaddy's customers are microbusiness owners and most of them have fewer than 10 employees. According to our Venture Forward research, more than half of them are solopreneurs, both business owners and employees themselves. They are resilient and inspiring, making a difference for their families, with approximately one in three contributing 51% or more to their household income. In the U.S., they also elevate their local communities by adding seven jobs per microbusiness entrepreneur at the county level. Customers & Communities We support our customers and foster inclusive entrepreneurship with innovative technology and best-in-class, human-centered guidance. In 2024, we took innovation for our customers to new heights with GoDaddy Airo®. GoDaddy Airo helps our customers using AI technology to, with just a few prompts, find unique names for their businesses, automatically create website options, email addresses, social posts, and much more. It has never been easier for GoDaddy customers to get started with their ideas or grow their businesses. And, when our customers need help, our Guides are there to provide personalized guidance. In 2024, our team engaged with customers through nearly 12 million inbound contacts, striving to help them at every stage of their entrepreneurial journey. People & Culture At GoDaddy, we are very proud of our employees, their hard work, and execution, and I am confident in the opportunity in front of us, our talent, and our drive for continuous improvement. The GoDaddy Leadership Team is a dedicated group of leaders with unique expertise, points of view, and from different countries of origin, helping us effectively serve our customers globally. As a Leadership Team, we're focused on providing our employees with opportunities to learn and develop in their careers to achieve their full potential. GoDaddy also has a remarkable track record of paying people fairly based on the work that they perform regardless of who they are. 2024 marks GoDaddy's tenth-consecutive year of sharing our gender pay data, and the eighth-consecutive year of ethnicity pay data in the U.S. As our business grows globally and our workforce also expands globally, we continue to prioritize fair employee compensation and invest in a workforce that reflects the various communities we serve. Responsible Governance & Operations Our integrated GoDaddy Software Platform drives innovation and growth for both our customers and us. We work to optimize AI, machine learning, monetization, experimentation, data collection, and storage using public and private cloud services to improve the velocity of our business and find savings opportunities. We're committed to using AI responsibly and ethically, ensuring it advances our mission to empower entrepreneurs everywhere while creating meaningful value for their businesses. Our AI and Machine Learning Governance Council plays a key role in overseeing our use of AI, ensuring proper guardrails are in place for responsible and ethical AI use. Environmental Impact We set a new scope 1 and 2 emissions (market-based) reduction targetto reduce emissions by 90% by 2030 from a 2019 baseline after surpassing our initial target two years ahead of schedule. We believe that operating our business responsibly and complying with applicable laws while minimizing the environmental impact of our operations and supply chain is good for our customers, our business, and the planet. With sustainability embedded in our strategy and aligned with our operations, our goal is to continue to make progress on our sustainability journey. Through innovation and discipline, GoDaddy team members will continue to create value for our customers, shareholders, employees, and communities. 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. Visit 3BL Media to see more multimedia and stories from GoDaddy
Yahoo
01-05-2025
- Business
- Yahoo
GoDaddy (NYSE:GDDY) Surprises With Q1 Sales But Stock Drops
Domain registrar and web services company GoDaddy (NYSE:GDDY) reported Q1 CY2025 results exceeding the market's revenue expectations , 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 GAAP profit of $1.51 per share was 9.9% above analysts' consensus estimates. Is now the time to buy GoDaddy? Find out in our full research report. Revenue: $1.19 billion vs analyst estimates of $1.19 billion (7.7% year-on-year growth, 0.6% beat) EPS (GAAP): $1.51 vs analyst estimates of $1.37 (9.9% beat) Adjusted EBITDA: $364.4 million vs analyst estimates of $357.5 million (30.5% margin, 1.9% 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 Annual Recurring Revenue: $4.05 billion at quarter end, up 7.5% year on year Billings: $1.35 billion at quarter end Market Capitalization: $26.01 billion "GoDaddy remains well-positioned for long-term success by driving tangible, measurable outcomes that help our customers grow and thrive in any macroeconomic landscape," said GoDaddy CEO Aman Bhutani. Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website. A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, GoDaddy's sales grew at a weak 6% compounded annual growth rate over the last three years. This was below our standard for the software sector and is a poor baseline for our analysis. This quarter, GoDaddy reported year-on-year revenue growth of 7.7%, and its $1.19 billion of revenue exceeded Wall Street's estimates by 0.6%. Company management is currently guiding for a 7.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 6.8% over the next 12 months, similar to its three-year rate. This projection is underwhelming and suggests its newer products and services will not accelerate its top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. GoDaddy's ARR came in at $4.05 billion in Q1, and over the last four quarters, its growth was underwhelming as it averaged 8% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in securing longer-term commitments. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. It's relatively expensive for GoDaddy to acquire new customers as its CAC payback period checked in at 136.7 months this quarter. The company's slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low. We were impressed by how significantly GoDaddy blew past analysts' bookings expectations this quarter. We were also happy its revenue, EPS, and EBITDA outperformed Wall Street's estimates. On the other hand, its annual recurring revenue missed. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The market seemed to be hoping for more, and the stock traded down 6.5% to $180 immediately after reporting. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
