GoDaddy Q1 Revenue Up 6%, EBITDA Margin at 33%, AI Bookings Top $10M
GDDY•GoDaddy posted Q1 revenue growth of 6% to $1.3 billion and expanded normalized EBITDA margin by over 200 basis points to 33%. Its Airo AI Builder reached an annualized bookings run rate above $10 million and the company repurchased 3 million shares for $280 million.
1. Q1 Financial Results
GoDaddy delivered Q1 revenue of $1.3 billion, up 6% year-over-year, and expanded normalized EBITDA margin to 33%, an increase of over 200 basis points. Free cash flow rose 15% to $474 million, demonstrating strong operating leverage and cash generation.
2. AI Innovations and Airo Performance
The Airo AI Builder achieved an annualized bookings run rate exceeding $10 million shortly after its beta launch, highlighting rapid adoption of AI-native solutions. AI-driven support initiatives like Airo Care improved customer resolution rates by approximately 50%, underscoring the company’s focus on operational efficiency.
3. Segment Performance and Challenges
International revenue climbed 7% to $416 million, while the A&C segment grew 12% to $500 million. Core platform revenue rose 3% to $769 million, offset by softer hosting demand and the expiration of the .CO registry, leading to a modest 3% increase in total bookings to $1.5 billion.
4. Capital Actions and Outlook
GoDaddy repurchased 3 million shares for $280 million and ended the quarter with net debt of $2.6 billion, maintaining leverage at 1.4 times. Full-year revenue guidance was raised to a range of $5.195 billion to $5.275 billion, implying 6% growth at the midpoint.
