GoDaddy's Q2 2025: Dissecting Contradictions in Customer Sentiment, AI Vision, and Airo's Growth Impact

Impact of macroeconomic conditions on customer sentiment, Agentic AI's vision and impact on Airo, customer growth and Airo impact, Airo's impact on customer engagement and monetization are the key contradictions discussed in GoDaddy's latest 2025Q2 earnings call.



Revenue and Growth Strategy:
- GoDaddy reported a revenue growth of 8% to $1.2 billion, surpassing the high end of its guided range.
- The growth was driven by a strong performance in the Applications and Commerce (A&C) segment, which grew 14%, and consistent execution of strategic initiatives like pricing and bundling.

Free Cash Flow and Profitability:
- The company's free cash flow grew 21% to $392 million, reflecting a strong financial performance.
- This growth was supported by the expansion of normalized EBITDA margin to 31% and an increase in cash flow conversion to greater than 1:1.

AI and Airo Impact:
- GoDaddy's AI-driven solutions, particularly Airo, are contributing significantly to improved customer conversion, average order size, and high retention rates among high-intent customers.
- The integration of Agentic AI is transforming operations, reducing manual tasks, and enhancing customer experiences, driving sustainable growth.

Seamless Experience and Pricing Bundling:
- The company's A&C revenue grew to $464 million, approaching an annualized run rate of nearly $2 billion
- This growth was supported by strong execution in pricing and bundling, which are contributing equally to growth, along with improved customer retention and new customer conversion.