GoDaddy Inc. (GDDY) Earnings History

GoDaddy Inc. - Q3 2025 EarningsBeat

Filed at: Oct 29, 2025, 8:00 PM EDT|Read from source

EXECUTIVE SUMMARY

GoDaddy reported strong third quarter results with double-digit revenue growth driven by its Applications and Commerce segment, alongside robust cash generation and advancements in AI innovation. The company raised its full-year revenue outlook, signaling confidence in its strategic direction and execution.

POSITIVE HIGHLIGHTS

  • •

    Total revenue of $1.3 billion, up 10% year-over-year on a reported and constant currency basis.

    positive
  • •

    Applications and Commerce (A&C) revenue grew 14% year-over-year to $481.0 million.

    positive
  • •

    Operating income of $296.7 million, up 17% year-over-year, representing a 23% margin.

    positive
  • •

    Net cash provided by operating activities of $444.2 million, up 25% year-over-year.

    positive
  • •

    Free cash flow of $440.5 million, up 21% year-over-year.

    positive
  • •

    Raised full year revenue expectations to $4.930 billion to $4.950 billion, representing 8% year-over-year growth at the midpoint.

    positive

CONCERNS & RISKS

  • •

    Net income decreased 14.7% year-over-year for the nine months ended September 30, 2025, to $629.9 million, impacted by a one-time tax benefit in the prior year.

    attention
  • •

    Total customers at period end decreased 1.5% year-over-year to 20,413.

    attention
  • •

    Segment EBITDA margin for Applications and Commerce (A&C) compressed 30bps year-over-year to 45.7% in the quarter.

    attention
  • •

    Fourth quarter revenue guidance of $1.255 billion to $1.275 billion reflects headwinds from the exit of the .CO registry contract.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.27B
+10.3%
Prior year: $1.15B
Annual (YTD)
$3.68B
N/A
Prior year: $3.38B
Net Income
Quarterly
$210.50M
+10.5%
Prior year: $190.50M
Annual (YTD)
$629.90M
N/A
Prior year: $738.30M
EPS (Diluted)
Quarterly
$1.51
+14.4%
Prior year: $1.32
Annual (YTD)
$4.44
N/A
Prior year: $5.09
Operating Income
Quarterly
$296.70M
+16.9%
Prior year: $253.80M
Annual (YTD)
$810.30M
N/A
Prior year: $637.90M
EPS (Basic)
Quarterly
$1.53
+12.5%
Prior year: $1.36
Annual (YTD)
$4.53
N/A
Prior year: $5.22

MARGIN ANALYSIS

Operating Margin
Current Quarter
23.4%
Prior Year
22.1%
YoY Change
+130 bps
Net Margin
Current Quarter
16.6%
Prior Year
16.6%
YoY Change
0 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q3 2025 2025

VISUAL OVERVIEW

|
Core Platform (Core)
62.0%
$784300.0B
(+8.3% YoY)
Prior year: $724500.0B
Applications and Commerce (A&C)
38.0%
$481000.0B
(+13.7% YoY)
Prior year: $423100.0B

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Core Platform (Core)
$784300.0B$724500.0B+8.3%62.0%
Applications and Commerce (A&C)
$481000.0B$423100.0B+13.7%38.0%
Total Revenue$1265300.0B——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY 2025

revenue
$4930000.0B—$4950000.0B
Mid-point: $4940000.0B
"Raised expectations to 8% year-over-year growth at the midpoint."
A&C revenue
"Expected growth in the mid-teens."
Core revenue
"Expected growth in the mid single-digits."
NEBITDA margin
32.0%—32.0%
Mid-point: 32.0%
"Approximately 32%."
free cash flow
1,600,000,000—1,600,000,000
Mid-point: 1,600,000,000
"Approximately $1.6 billion."

Q4 2025

revenue
$1255000.0B—$1275000.0B
Mid-point: $1265000.0B
"Represents 6% year-over-year growth at the midpoint, reflecting headwinds from .CO registry contract exit."
A&C revenue
"Expected growth in the low to mid-teens."
Core Platform revenue
"Expected growth in the low single-digits."
NEBITDA margin
33.0%—33.0%
Mid-point: 33.0%
"Approximately 33%."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Nine Months Ended September 30, 2025
One-time benefit for the recognition of an uncertain tax position
+$34.6M
Nine Months Ended September 30, 2024
Non-routine, non-cash benefit to income taxes related to the conversion of Desert Newco, LLC subsidiary
+$267.4M
Total Impact
+$302M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

GoDaddy delivered strong third quarter results as we position our business to lead in the emerging agentic AI era.

— GoDaddy Inc., Q3 2025 2025 Earnings Call

Our AI vision and evolution expands our capabilities, accelerates innovation and builds on our leadership in domains to power an open, trusted internet that delivers lasting value for customers.

— GoDaddy Inc., Q3 2025 2025 Earnings Call

Our third quarter results highlighted our disciplined execution, translating into profitable growth and strong cash generation.

— GoDaddy Inc., Q3 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Annualized recurring revenue (ARR)
4293.5M
+8.0% YoY
Prior year: 3974.6M
Average revenue per user (ARPU)
237
+10.2% YoY
Prior year: 215
dollars
Total bookings
1354.5M
+9.1% YoY
Prior year: 1241.7M
Total customers at period end
20.4M
-1.5% YoY
Prior year: 20.7M
thousands

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.