GoDaddy (GDDY) 2026 Evercore Global TMT Conference summary

AI transformation and product innovation

• Transitioning to an AI-native company with strong early momentum for Airo AI Builder, focusing on organic customer engagement and premium plan adoption before broader marketing efforts.

• ANS (Agent Name Service) is positioned as foundational infrastructure for agentic internet use, aiming to build trust and scalability similar to DNS in the early internet.

• Internal AI adoption is driving operational efficiencies, supporting reinvestment in innovation and maintaining a 33% normalized EBITDA margin target.

• AI tools are tailored to micro-businesses and entrepreneurs, with a focus on fulfilling their evolving needs and supporting business growth.

• Airo AI Builder's integration into the main purchase path is planned but will be executed pragmatically based on customer engagement data.

Customer acquisition, retention, and marketing strategy

• High-intent customer acquisition is prioritized, with offers like the $4.99 domain targeting new customers who quickly attach additional products.

• Marketing campaigns are tailored to generational shifts, leveraging platforms like Instagram, TikTok, and YouTube to attract Gen Z and Gen Y creators.

• Brand awareness remains strong, with 60% of traffic arriving directly and ongoing optimization to attract the right customer segments.

• Airo helps customers attach a second product 30% faster, increasing retention and lifetime value (LTV).

• Renewal cycles are accelerated with one-year terms, creating opportunities for pricing, bundling, and upselling, especially as new products are introduced.

Financial performance and capital allocation

• Free cash flow per share grew 27% in Q1, driven by both operational performance and share buybacks.

• Temporary headwinds include the .co contract decision, aftermarket transaction variability, and promotional pricing, but the $1.8 billion free cash flow target for the year remains intact.

• ARPU growth has moderated but LTV momentum remains strong; future guidance will be provided at an upcoming investor event.

• Capital allocation remains focused on share buybacks and disciplined M&A, with internal innovation raising the bar for potential acquisitions.

• Cost discipline and profitability are maintained through proprietary data, model routing, and careful management of AI-related expenses.