Press release·05/02/2026 00:11:11

GoDaddy’s Solid First Quarter Performance Highlights Strength Across Segments

GoDaddy, a leading provider of online tools and services for small businesses and entrepreneurs, has reported its financial results for the first quarter of 2026. The company’s performance showcases its ability to drive growth across its two main business segments - Applications and Commerce (A&C) and Core Platform (Core).

Financial Highlights

For the three months ended March 31, 2026, GoDaddy reported the following key financial metrics:

Metric	Q1 2026	Q1 2025	Change
Total Revenue	$1,266.9 million	$1,194.3 million	6.1% increase
International Revenue	$415.9 million	$388.6 million	7.0% increase
Total Bookings	$1,455.3 million	$1,417.0 million	2.7% increase
Operating Income	$310.5 million	$247.3 million	25.6% increase
Net Income	$214.6 million	$219.5 million	2.2% decrease
Normalized EBITDA	$413.5 million	$364.4 million	13.5% increase
Net Cash Provided by Operating Activities	$471.5 million	$404.7 million	16.5% increase

The company’s total revenue grew 6.1% year-over-year, driven by strong performance in both the A&C and Core segments. International revenue also saw a 7.0% increase, highlighting GoDaddy’s ability to expand its global footprint.

Total bookings, a key metric that provides insight into the company’s sales performance, grew 2.7% year-over-year, indicating continued customer demand for GoDaddy’s products and services.

Operating income increased by a substantial 25.6%, reflecting the company’s focus on operational efficiency and cost optimization. However, net income decreased by 2.2% due to a one-time tax benefit recognized in the prior year period.

Normalized EBITDA, a non-GAAP measure that excludes the impact of certain items, grew by 13.5%, demonstrating the company’s ability to generate strong profitability. Additionally, net cash provided by operating activities increased by 16.5%, showcasing GoDaddy’s robust cash flow generation.

Segment Performance

GoDaddy operates its business through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core).

Applications and Commerce (A&C) The A&C segment primarily consists of sales of products containing GoDaddy’s proprietary software, such as website building products, commerce solutions, and third-party email and productivity solutions. This segment also includes sales of certain products when they are bundled with the company’s proprietary software offerings.

For the first quarter of 2026, the A&C segment reported the following:

Metric	Q1 2026	Q1 2025	Change
Revenue	$498.2 million	$446.4 million	11.6% increase
Segment EBITDA	$225.2 million	$196.9 million	14.4% increase
Segment EBITDA Margin	45.2%	44.1%	110 bps increase

The A&C segment experienced a strong 11.6% increase in revenue, driven by continued customer adoption of GoDaddy’s subscription-based products. This revenue growth, coupled with effective cost management, led to a 14.4% increase in Segment EBITDA and a 110 basis point expansion in Segment EBITDA margin.

Core Platform (Core) The Core segment primarily consists of sales of domain registrations and renewals, aftermarket domain sales, website hosting products, and website security products when not included in bundled offerings of GoDaddy’s proprietary software products. This segment also includes sales of products not containing a software component.

For the first quarter of 2026, the Core segment reported the following:

Metric	Q1 2026	Q1 2025	Change
Revenue	$768.7 million	$747.9 million	2.8% increase
Segment EBITDA	$253.5 million	$235.3 million	7.7% increase
Segment EBITDA Margin	33.0%	31.5%	150 bps increase

The Core segment delivered a 2.8% increase in revenue, driven by growth in primary domain registrations and add-on revenues. This revenue growth, combined with effective cost management, led to a 7.7% increase in Segment EBITDA and a 150 basis point expansion in Segment EBITDA margin.

Outlook and Strategic Initiatives

GoDaddy’s strong first quarter performance demonstrates the company’s ability to execute on its strategic priorities and capitalize on the growing demand for its products and services among small businesses and entrepreneurs.

The company’s focus on product innovation, customer experience, and operational efficiency has been a key driver of its success. GoDaddy continues to invest in developing new AI-powered solutions, such as Airo, to enhance its offerings and provide even more value to its customers.

Additionally, the company’s ongoing efforts to migrate its infrastructure to a cloud-based platform are expected to drive further improvements in cost efficiency and scalability, positioning GoDaddy for long-term sustainable growth.

Looking ahead, GoDaddy remains optimistic about its future prospects. The company’s large and growing customer base, diverse product portfolio, and strong brand recognition provide a solid foundation for continued expansion and market share gains.

Strengths and Opportunities

GoDaddy’s key strengths and opportunities include:

1. Diversified Product Portfolio: The company’s ability to offer a comprehensive suite of products and services, ranging from website building and e-commerce solutions to domain registration and security, allows it to cater to the diverse needs of small businesses and entrepreneurs.

2. Strong Brand Recognition: GoDaddy has built a strong and trusted brand in the online tools and services market, which helps it attract and retain customers.

3. Expanding International Presence: The company’s focus on international expansion, as evidenced by the 7.0% year-over-year growth in international revenue, presents significant opportunities for future growth.

4. Subscription-based Business Model: GoDaddy’s subscription-based revenue model provides a stable and predictable revenue stream, which supports the company’s long-term financial performance.

5. Operational Efficiency: The company’s focus on cost optimization and operational efficiency, as demonstrated by the 25.6% increase in operating income, positions it well to maintain profitability and reinvest in growth initiatives.

6. Innovative Product Development: GoDaddy’s commitment to developing new AI-powered solutions, such as Airo, positions the company to stay ahead of the curve and meet the evolving needs of its customers.

Weaknesses and Challenges

While GoDaddy has demonstrated strong performance, the company also faces some potential weaknesses and challenges:

1. Dependence on Domain Registration and Renewals: A significant portion of GoDaddy’s revenue is derived from domain registration and renewal fees, which could be subject to pricing pressure and increased competition.

2. Integration of Acquired Businesses: The company’s growth strategy includes strategic acquisitions, which can present integration challenges and potentially impact short-term financial performance.

3. Regulatory Compliance: As an online service provider, GoDaddy must navigate a complex regulatory landscape, which could lead to increased compliance costs and potential legal or reputational risks.

4. Talent Acquisition and Retention: The company’s ability to attract and retain top talent, particularly in the areas of technology and product development, will be crucial to its long-term success.

5. Macroeconomic Conditions: Changes in economic conditions, such as a potential recession or slowdown in small business activity, could impact the demand for GoDaddy’s products and services.

Conclusion

GoDaddy’s strong first quarter performance demonstrates the company’s ability to execute on its strategic priorities and capitalize on the growing demand for its products and services. The company’s diversified product portfolio, strong brand recognition, and focus on operational efficiency position it well for continued growth and success.

While the company faces some potential challenges, such as its dependence on domain registration and renewals and the need to navigate a complex regulatory landscape, GoDaddy’s innovative product development, expanding international presence, and subscription-based business model provide a solid foundation for long-term sustainable growth. As GoDaddy continues to invest in its AI-powered solutions and cloud-based infrastructure, the company is well-positioned to meet the evolving needs of small businesses and entrepreneurs worldwide.