GoDaddy (GDDY) Oppenheimer 29th Annual Technology, Internet & Communications Conference summary

Business overview and customer focus

• Focuses on micro-businesses, typically with up to 10 employees, serving over 20 million customers globally.

• Strong brand awareness and trust built over 30 years, with a broad set of solutions for small businesses.

• High customer retention rates, especially as customers adopt multiple products.

• Emphasizes supporting passionate, resilient entrepreneurs and small teams.

Airo AI platform and transition

• Airo, an agentic AI platform, launched in Q2 and quickly reached a $50 million annual run rate.

• Transitioning core products into Airo, streamlining offerings and driving higher customer engagement.

• Customers adopting Airo are attaching to additional products faster, with 70% adding a second product.

• Airo is being integrated into the domain purchase path, expected to further boost attach rates.

• The shift to Airo is expected to phase out legacy products like DIFY and Websites + Marketing.

Financial performance and outlook

• Maintains a $1.8 billion free cash flow target and expects to grow free cash flow per share at a 25% CAGR.

• Achieved 28% free cash flow per share growth in Q2 during the transition.

• Expects to sustain gross margins around 64% and segment margins at 33% through 2026.

• Confident in ability to expand margins and optimize costs despite AI-related investments.