GoDaddy (GDDY) Citi’s 2026 Global TMT Conference summary

Product innovation and platform evolution

• Airo has been relaunched as a product, integrating payments, communications, and commerce, with a $50M run rate post-Q2 and strong adoption among existing customers.

• Product roadmap prioritizes customer value and product attach, with higher retention and LTV as customers adopt multiple products within Airo.

• Expansion into the domain purchase path is imminent, expected to drive new customer acquisition and further boost attach rates.

• Airo's token-based usage model is driving higher engagement, with over 70% of Airo users attaching a second product, compared to 50% in the broader base.

• The developer platform and APIs are expanding access, allowing customers to interact with services without visiting the main site, while maintaining customer relationships and sign-ins.

Financial performance and outlook

• Free cash flow per share remains the North Star, with guidance reaffirmed at $1.8B and a 28% growth in the latest quarter, supported by aggressive buybacks.

• Normalized EBITDA margin target of 33% for 2026 is maintained, with AI-driven productivity gains providing additional flexibility for investment and margin expansion.

• Transition to a mix of subscriptions and token usage is expected to change revenue recognition dynamics but is seen as manageable based on past experience.

• Airo's contribution to bookings is growing, with further acceleration expected as it is embedded in the main purchase path.

• Marketing spend is being shifted to the second half of the year to align with the new customer attach strategy.

Strategic positioning and competitive landscape

• Focus remains on high-intent customers, leveraging strong brand recognition and a large organic traffic base (over 60%).

• Discounting is limited to targeted offers, with a shift away from deep discounting resulting in stronger retention rates.

• The DNS infrastructure is seen as foundational for the emerging agentic web, with GoDaddy positioned to play a key role in trust and discovery for agentic traffic.

• Monetization of agentic resource discovery is expected to mirror domain monetization, with registrars validating agent provenance.

• AI is driving operational efficiencies across care, engineering, and G&A, enabling faster product development and reduced reliance on third parties.