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GoDaddy Narrows Full-Year Revenue Forecast, Citing Slower AI Adoption
GoDaddy Inc. has narrowed its annual revenue forecast, signaling that slower-than-expected customer acquisition and a gradual adoption of its new artificial intelligence tools are tempering its outlook for the year. The update came as the company reported second-quarter financial results that were largely in line with Wall Street estimates.
Updated Guidance and Quarterly Performance
The Tempe, Arizona-based company now projects full-year revenue to be between $5.215 billion and $5.255 billion. This represents a tightening of its previous forecast, which ranged from $5.195 billion to $5.275 billion.
Key financial figures reported on Thursday include:
- Second-quarter revenue: $1.298 billion, slightly ahead of the analyst consensus of $1.295 billion, according to data from LSEG.
- Third-quarter revenue forecast: A range of $1.32 billion to $1.34 billion, which aligns with market expectations.
AdAI Strategy and Market Headwinds
The revised guidance reflects challenges the company faces despite significant investments in AI aimed at its core customer base of small and medium-sized businesses. GoDaddy has heavily promoted its "Airo.ai" platform, designed to help users automatically generate logos, websites, and branded marketing assets.
"GoDaddy is advancing a company-wide AI transformation with Airo at the center, creating an agentic operating system that helps our customers accomplish more," CEO Aman Bhutani said in a statement. However, the company noted that slower adoption of these tools, combined with weaker customer acquisition, influenced the updated forecast. The firm also faces strong competition from rivals such as Wix, which has aggressively expanded its own AI-powered offerings for website creation.
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