GoDaddy (GDDY) Reports
Shares of GoDaddy (GDDY) are trading about flat today as the stock digests yesterday’s slightly better-than-expected Q1 report. The story here remains intact as we look forward to the full launch of Airo, the company’s new AI-powered solution for website creation and management, a significant pain point/roadblock for creators.
Revenue rose 7% to $1.1 billion (1.1% beat) while EPS of $2.76 was way ahead of expectations of $0.95.
The new Airo solution (began to roll out in April) is making progress and showing high website attach rates, especially among new customers. The product will start to roll out to existing customers soon and then internationally. Management talked at length about how the company is using data to better understand how to charge customers for all the features Airo offers and how early results show more customers opting for a website when offered Airo.
This is interesting when coupled with a recent bump in transaction fees across the customer base as GoDaddy tries to bring fees up closer to competitors (it has historically had relatively low fees).
Importantly, bookings growth picked up to 9.5% versus expectations of about 6%, which suggests that management’s decision to keep full-year guidance the same is likely conservative. Keeping at buy. BUY HALF
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