GoDaddy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $1.34 billion, a 6% increase year-over-year on both reported and constant currency basis.
• Total bookings were $1.43 billion, up 6% year-over-year on reported and constant currency basis.
• Operating income rose 22% year-over-year to $362.5 million, representing a 27% margin.
• Net income increased 24% year-over-year to $261.8 million, with a 20% margin.
• Normalized EBITDA (NEBITDA) grew 10% year-over-year to $449.3 million, achieving a 33% margin.
• Net cash provided by operating activities was $487.7 million, up 10% year-over-year.
• Free cash flow totaled $480.8 million, an increase of 9% year-over-year.
• Applications and Commerce (A&C) revenue grew 9% year-over-year to $524.3 million.
• Core Platform revenue grew 4% year-over-year to $817.5 million.
• International revenue increased 3% year-over-year to $435.5 million.
• Average revenue per user (ARPU) was $253, up 7% from $237 in the prior year period.
• Annualized recurring revenue (ARR) stood at $4.51 billion, up 5% year-over-year.

Guidance and Future Outlook:

• For the full year ending December 31, 2026, GoDaddy expects revenue to finish toward the higher end of the range $5.215 billion to $5.255 billion, representing 6% year-over-year growth at the midpoint.
• Full-year A&C revenue growth is expected to be approximately 10%, while Core revenue growth is expected to be approximately 4%.
• The company reaffirms a NEBITDA margin target of over 33% for the full year 2026.
• GoDaddy reaffirms a free cash flow target of approximately $1.8 billion for the full year 2026, compared to $1.6 billion in 2025.

Business Segments and Product Lines:

• Airo, the flagship website product, achieved an annualized bookings run rate exceeding $100 million, more than doubling the $50 million run rate reported one quarter prior, and began incrementally contributing to bookings growth.
• The Developer Platform was expanded with agent-friendly APIs for hosting, professional email, and commerce, enabling developers and AI agents to deploy live businesses.
• Total customers reached 20.5 million, an increase of 40,000 during the quarter and 75,000 since December 31, 2025.
• Segment EBITDA for A&C was $246.0 million with a 46.9% margin, up 11.9% year-over-year.
• Segment EBITDA for Core was $268.9 million with a 32.9% margin, up 4.0% year-over-year.

Market and Competitive Landscape:

• Management stated the company is positioning for an "agentic world" by expanding Airo's capabilities and platform reach.
• The AI transformation is described as gaining momentum, with Airo becoming a central component of the product strategy.

Risks and Challenges:

• The press release includes standard forward-looking statement risks regarding the unpredictable nature of the market, fluctuations in financial results, and the ability to innovate and gain customer acceptance of AI-powered solutions.
• Specific risks mentioned include cyberattacks, dependence on payment card networks, and the effects of competition and macroeconomic conditions.

Management Commentary and Tone:

• CEO Aman Bhutani stated, "Our AI transformation is gaining momentum," and emphasized positioning GoDaddy for an agentic world.
• CFO Mark McCaffrey highlighted "financial discipline," noting solid revenue growth, expanded profitability, and strong free cash flow supporting continued shareholder returns.

Other Key Points:

• Year-to-date through October 26, 2026, GoDaddy repurchased 15.7 million shares for an aggregate price of $1.4 billion, resulting in a 12% gross reduction in fully diluted shares outstanding.
• As of September 30, 2026, the company held $1.1 billion in cash and cash equivalents, with total debt of $3.8 billion and net debt of $2.7 billion.
• An in-person Investor Night is scheduled for December 1, 2026, at the Tempe, Arizona headquarters to discuss strategy and AI transformation.
• A quarterly earnings webcast was held on October 29, 2026, at 5:00 p.m. Eastern Time.