GoDaddy 2026 Q2 Earnings Call

Welcome to GoDaddy's second quarter 2026 earnings call. Thank you for joining us. I'm Christie Masoner, VP of Investor Relations, and with me today are Aman Bhutani, Chief Executive Officer, and Mark McCaffrey, Chief Financial Officer. Following prepared remarks, we'll open up the call for your questions. If you'd like to ask a question on today's call, please use the raise hand feature in the webinar to be added to the queue. On today's call, we'll be referencing both GAAP and non-GAAP financial measures and other operating and business metrics. A discussion of why we use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalents may be found in the presentation posted to our investor relations site at investors.godaddy.net or in today's earnings release on our Form 8-K furnished with the SEC. Growth rates represent year-over-year comparisons unless otherwise noted.

The matters we'll be discussing today include forward-looking statements, such as those related to future financial results and our strategies or objectives with respect to future operations. These forward-looking statements are subject to risks and uncertainties that are discussed in detail in our periodic SEC filings. Actual results may differ materially from those contained in forward-looking statements. Any forward-looking statements that we make on this call are based on assumptions as of today, July 30th, 2026, and except to the extent required by law, we undertake no obligation to update these statements because of new information or future events. With that, I'm happy to introduce Aman.

Good afternoon and thank you for joining us. At GoDaddy, our purpose is to make opportunity more inclusive for all. Our strategy is to serve our customers' needs across the entrepreneur's wheel. AI is fundamentally changing how our customers create and grow their businesses and how we execute on our strategy. We have built and positioned Airo as an agentic operating system for small businesses. Airo is the centerpiece of GoDaddy's largest initiative, our AI transformation. The AI transformation will enable us to continue to build on our significant track record of delivering value for both our customers and shareholders. When we introduced Airo almost three years ago, it was an AI-powered experience that helped our customers discover, engage, and adopt more of our products. Last quarter, Airo AI Builder took a significant step beyond that as a distinct agentic experience.

Today, we have unified Airo and Airo AI Builder into a single platform as an agentic operating system for small businesses simply called Airo. Airo can build out the comprehensive experience of whatever a small business needs to operate, from storefronts and booking systems to client portals, and it helps our customers run their businesses day to day. Everything our customers relied on before lives inside this singular, immersive AI experience. Airo for small businesses is our biggest focus and source of excitement, and customers are loving it. I work directly with Airo customers every week, and their response tells me we are building exactly what they need to succeed. Customers are choosing Airo at a rate that is exceeding our expectations.

Annualized bookings run rate has increased 5x to $50 million versus the $10 million we shared just one quarter ago. Engagement continues to build among our high-intent customers. The momentum behind Airo is undeniable. Just as important, the quality has improved as we have scaled. Nearly all of this growth has been organic, demonstrating strong customer interest even before we have meaningfully leaned into marketing. Customer satisfaction also remains high, giving us confidence heading into the second half of the year. We are actively testing Airo in the domains purchase path, which is a high bar since it is our largest funnel and one that has been optimized for conversion and attach with our existing products for years. With a number of enhancements already underway, we expect to scale marketing and deliver continued strong traction for Airo. The world is evolving quickly. We are meeting the moment.

Small businesses are engaging with technology in entirely new ways. We are transforming our experience to meet them where they are going. That requires making deliberate choices about where we invest our time, talent, and capital, recognizing that investments carry different return profiles. Our priority is to build the best end-to-end AI operating system for our customers. As part of that shift, we are de-emphasizing a few products as standalone offerings and bringing their capabilities into Airo, simplifying the experience and enabling customers to build and manage increasingly sophisticated web experiences themselves. More broadly, as AI reshapes how small businesses create and manage their online presence, we expect the need for traditional products like Do It For You services and template-based website builders to narrow and evolve over time.

As the transformation unfolds, GoDaddy is well-positioned with an earned right to win, grounded in a value creation strategy that remains consistent. Building a business online takes more than a layer of AI. It takes secure hosting, payments, customer engagement tools, and dozens of other jobs most small businesses lack the time or expertise to stitch together themselves. We have built one of the most trusted brands in small businesses over nearly three decades, backed by more than 20 million customers, a strong distribution advantage, a broad set of solutions, deep technology expertise, and a care organization that knows our customers and the needs of small businesses better than anyone. Our AI transformation is how we are putting those trends to work. Our vision for Airo is to deliver all of that as one integrated, immersive experience. That completeness is what differentiates GoDaddy.

We remain focused on generating profitable growth by attracting high-intent customers who adopt more of our technology and in turn drive higher lifetime value. The mechanisms may evolve through AI or pricing or merchandising or other means, but the model remains remarkably durable. In addition to Airo, there are three other connected work streams in the AI transformation at GoDaddy. I'm excited to briefly touch on these today. First, we are reinventing our own operations to be AI native to improve customer outcomes and increase the speed of innovation. In care, Airo continues to improve resolution rates across both chat and voice, with the 24-hour repeat contact rate for customers served by our voice bot dropping by over 16 percentage points in Q2. This allows our care teams to focus their expertise on more complex needs and on guiding customers as they build their businesses.

We are also using Airo to power processes internally at GoDaddy, giving us the opportunity to test new capabilities and rapidly improve the product through everyday use. That same rigor extends to how we fund this work. Scaling Airo at this pace comes with investment and managing it carefully matters, as does the innovation itself. We anticipated the rise in AI compute costs and took actions early to offset them, giving us room within our financial framework to support both greater AI usage and increased marketing behind Airo. We continuously test across multiple models to make sure we are creating the expected customer experience while using the most effective and efficient option for each job. That discipline gives us confidence in our ability to manage compute and token costs as Airo scales over the long term.

The second and newest work stream in the AI transformation is doubling down on GoDaddy APIs being better designed for consumption by agents, including LLMs. This quarter, we launched the GoDaddy Developer Platform, a new generation of domain APIs that allow developers and AI systems to search, purchase, configure, and manage domains directly within the tools where they are already working. LLMs are increasingly becoming a large surface for creating software and businesses, and this enables our platform to be equally accessible to both people and AI. This is our first step. Today, these APIs focus on the domain life cycle, but over time, we see the opportunity to expand this approach across more of our platform, making it easier for AI systems to securely interact with a broader set of GoDaddy capabilities, including hosting and commerce.

On ANS, our third work stream intended to help shape the infrastructure of the agentic web, we achieved strong new alliances this quarter. Identity and discovery are essential layers of the open agentic web, and domains are the natural foundation for both as the web moves towards an agentic future. To that end, GoDaddy enhanced the Agent Name Service standard, launched it in production, and this quarter announced our intent to contribute it to the Linux Foundation. On discovery, we co-developed the Agentic Resource Discovery specification, or ARD, alongside many of the world's leading technology and AI companies. ARD helps solve agent discovery, making it possible to locate tools, skills, agents, and other resources instantly. Together, ANS and ARD point to the same conclusion.

Domains are and will remain a trusted foundation for identity and discovery in an AI-driven Internet. That trust enhances and extends the value and demand for domains well into the future. Our Q2 financial performance and the work we have shared today showcases a company executing on both the business we have today and the business we are building for the future. We stay focused on the fundamentals and what we can control. Our core initiatives, pricing and bundling, seamless experience, and commerce continue to perform well, strengthening our high-intent customer base and reinforcing the durability of our model. At the same time, the momentum in Airo is giving us greater confidence in the role GoDaddy will play as AI reshapes how small businesses are created and grown.

We will host an investor night in December, which will give us the opportunity to connect the AI transformation work underway across the company with the value it can create for our customers and our shareholders. There is much more ahead, and we look forward to sharing it with you.

With that, here's Mark. Thanks, good afternoon, everyone.