GoDaddy Inc.

GoDaddy is a global leader serving a large market of entrepreneurs, developing and delivering easy-to-use solutions as a one-stop shop provider, backed by proactive, informed and personalized guidance. The company serves small businesses, individuals, organizations, developers, designers and domain investors. The industry is highly fragmented and competitive, with competition based on product capabilities, a secure and reliable integrated technology platform, cost-effective customer acquisition, brand awareness and reputation, customer service and support, and overall customer satisfaction. The company's vision is to radically shift the global economy toward life-fulfilling entrepreneurial ventures, and its mission is to empower entrepreneurs everywhere, making opportunity more inclusive for all.

GoDaddy is the global leader in domain name registration, with approximately 81 million domains under management as of December 31, 2025 ¹. Based on information reported in VeriSign's most recent Domain Name Industry Brief, this represented approximately 21% of the approximately 387 million domain names registered worldwide as of December 31, 2025 ². The company believes its competitive advantages include global brand awareness, seamlessly intuitive experiences, and personalized guidance. Competitors named in the filing include, with respect to Applications and Commerce products: Shopify, Block, BigCommerce, Stripe, PayPal, Liquid Web, SiteGround, WP Engine, Zoho, Mindbody, Toast, Yelp, OpenTable, TikTok, Meta and WeChat; with respect to Core Platform products: Newfold Digital, Namecheap, Tucows, Dynadot, GMO, Cloudflare, Let's Encrypt, SEDO, Comodo, Hostinger and Identity Digital; and with respect to both: Wix, Squarespace, Automattic, Ionos, Google, Amazon, Microsoft, Alibaba and Tencent.

GoDaddy generates revenue primarily from sales of product subscriptions, with subscriptions ranging from monthly terms to multi-annual terms of up to ten years, depending on the product. The company manages and reports its business in two segments: Applications and Commerce (A&C), which primarily consists of sales of products containing proprietary software, notably website building products, proprietary commerce solutions and third-party email and productivity solutions; and Core Platform (Core), which primarily consists of sales of domain registrations and renewals, aftermarket domain sales, domain protection, website hosting products and website security products when not included in bundled offerings of proprietary software products. The business model is described as stable and durable, driven by strong brand recognition, efficient customer acquisition, high customer retention rates, increasing lifetime spend of customers, and the ability to attract high intent customers. In each of the five years ended December 31, 2025, the customer retention rate was approximately 85%, with the exception of the year ended December 31, 2024 when the retention rate was approximately 84% due to divestitures, migrations and end of life of certain products ³. The retention rate for customers who had been with the company for over three years as of December 31, 2025 was approximately 90% ⁴. Greater than 89% of total revenue for the year ended December 31, 2025 was generated by customers who were also customers in the prior year ⁵.

The Applications and Commerce segment includes website building solutions (Websites + Marketing and Managed WordPress), digital marketing tools, email and productivity solutions (Microsoft 365 and Titan email), and commerce products (GoDaddy Payments, Smart Terminal POS devices, GoDaddy Invoicing, Tap to Pay, Virtual Terminal, Online Pay Links, and Online Store capabilities). During the years ended December 31, 2025, 2024 and 2023, the company derived approximately 38%, 36% and 34% of total revenue, respectively, from sales of A&C products ⁶. The Airo platform is an intelligent AI-experience that helps customers with domain search and naming, personalized logo creation, website build, marketing and compliance. The company launched Agent Name Service (ANS), an open architecture built on industry standards to serve as a trust layer for AI-powered agents, which is in production with registered agents operational since the end of 2025.

The Core Platform segment includes domain name registration (primary registrations, aftermarket, and registry services), website hosting (shared hosting and virtual private servers), and website security products (SSL certificates, content delivery network, web application firewall, and managed security). During the years ended December 31, 2025, 2024 and 2023, the company derived approximately 62%, 64% and 66% of total revenue, respectively, from sales of Core Platform products ⁷. As of December 31, 2025, the company offered for purchase over 460 different gTLDs and 59 different ccTLDs ⁸. GoDaddy Registry operates or provides back-end registry services to approximately 170 TLDs ⁹. The company maintains a portfolio of approximately 1.0 million domain names ¹⁰. As of December 31, 2025, approximately 94% of customers purchased a domain from the company ¹¹.

In 2025, the company launched GoDaddy Capital, a merchant cash advance program available to GoDaddy Payments users that allows them to apply for an advance of up to $1.0 million ¹², and Instant Payouts, an on-demand payout option. The company also launched Agent Name Service (ANS), an open architecture built on industry standards to serve as a trust layer for AI-powered agents, which is in production with registered agents operational since the end of 2025. During the year ended December 31, 2025, the company repurchased shares of Class A common stock for an aggregate purchase price of $834.8 million ¹³. In April 2025, the board of directors approved the repurchase of up to an additional $3.0 billion of Class A common stock through the end of 2027 ¹⁴. The company executed two accelerated share repurchase agreements (ASRs) totaling $767.4 million in upfront payments during the three months ended March 31, 2025 ¹⁵, which were fully settled in April 2025 with the delivery of approximately 4.4 million shares at a weighted average price of $176.02 per share ¹⁶. Following a competitive rebid in the second quarter of 2025, the company no longer operates as the registry service provider for the .CO top-level domain after October 3, 2025.

For the year ended December 31, 2025, total revenue was $4,951.1 million ¹⁷, up 8.3% from $4,573.2 million in 2024 ¹⁸. Total bookings were $5,400.0 million ¹⁹, up 7.2% from $5,038.8 million in 2024 ²⁰. Operating income was $1,127.3 million ²¹, an increase of 26.2% from $893.5 million in 2024 ²². Net income was $875.0 million ²³, a decrease of 6.6% from $936.9 million in 2024 ²⁴. Normalized EBITDA was $1,585.9 million ²⁵, an increase of 13.6% from $1,395.9 million in 2024 ²⁶. Net cash provided by operating activities was $1,599.4 million ²⁷, an increase of 24.2% from $1,287.7 million in 2024 ²⁸.

A key growth vector is the expansion of AI-powered tools and solutions, particularly the Airo platform, which is being transformed into an agentic solution built to handle customers' fundamental jobs to be done, such as domain searches and naming, logo creation and building websites and applications. The company launched Agent Name Service (ANS), an open architecture built on industry standards to serve as a trust layer for AI-powered agents, which is in production with registered agents operational since the end of 2025. The company believes the same foundational elements that have historically supported participation on the open internet, such as identity, naming and trust, could become increasingly important in an agentic open internet, and ANS is intended to extend GoDaddy's role in supporting the open internet, presenting opportunities to offer additional services and partnerships related to agent identity and management. The company also continues to expand its commerce offerings, launching GoDaddy Capital, a merchant cash advance program available to GoDaddy Payments users that allows them to apply for an advance of up to $1.0 million ²⁹, and Instant Payouts.

Another growth vector is the expansion of the domain name registration business through participation in the next ICANN gTLD round, which is expected to open in Q2 2026 ³⁰. The company started preparations for and work on an approach towards its participation in the next ICANN gTLD round in 2025, and these efforts will continue throughout 2026. The company also continues to invest in search, discovery and recommendation tools, including those that are AI-powered, and transfer protocols for both primary and secondary domains. International revenue represented approximately 33%, 32% and 32% of total revenue for the years ended December 31, 2025, 2024, and 2023, respectively ³¹, and the company continues to expand its employee base in a number of international locations, including in India, Bulgaria and Serbia.

The company expects technology and development expenses to decrease as a percentage of revenue in future periods following a period of investment in product development and migration toward a unified infrastructure platform. Cost of revenue is expected to increase in absolute dollars in future periods due to increased sales of domains and third-party productivity applications, but may fluctuate as a percentage of total revenue depending on the mix of products sold. During the year ended December 31, 2025, the company engaged in cost optimization initiatives, including decreases in rent and utilities expenses, and reductions in costs associated with data center and systems infrastructure as it continues to migrate to a cloud-based infrastructure, resulting in increased NEBITDA margins.

The company continues to migrate many of its non-hosting products and internal systems to Amazon Web Services. Infrastructure consolidations have reduced the company's managed physical footprint by approximately 81% over the last four years ³². As of December 31, 2025, the company employed 5,845 people worldwide ³³, made up of 2,414 in technology and development ³⁴, 2,237 in care and services ³⁵, 369 in marketing and advertising ³⁶ and 825 in general and administrative functions ³⁷. In addition, approximately 3,400 individuals are employed with or engaged by external partners for contracted care and support services ³⁸. The company expects to make substantially all remaining restructuring payments pursuant to these activities by the end of the second quarter of 2026.

Technology and development expenses were $841.5 million ³⁹, $814.4 million ⁴⁰ and $839.6 million ⁴¹ during the years ended December 31, 2025, 2024 and 2023, respectively. Purchases of property and equipment were $23.9 million ⁴², $26.6 million ⁴³ and $42.0 million ⁴⁴ during the years ended December 31, 2025, 2024 and 2023, respectively. In April 2025, the board of directors approved the repurchase of up to an additional $3.0 billion of Class A common stock through the end of 2027 ⁴⁵. As of December 31, 2025, the company had $2,165.2 million of remaining authorization available for share repurchases ⁴⁶. The company has never declared or paid any dividends on its common stock and currently does not intend to pay dividends.

The company faces structural headwinds from evolving technologies, including AI-based technologies, and changes in customer behavior with respect to the internet that may impact the demand for and value of its products and services. The domain name registration market continues to evolve and adapt to changing technologies, which has, and may in the future include, changes in the administration or operation of the internet, including the creation and institution of alternate systems for directing internet traffic without using the existing domain name registration system, or fundamental changes in the domain name resolution protocol used by web browsers and other internet applications. Additionally, technological changes to web browsers or internet search could reduce demand for domain names. If internet users' preferences or practices shift away from recognizing and relying on web addresses or they were to significantly decrease their use of web browsers in favor of apps or AI-based tools to locate and access content, demand for domain names in the gTLDs the company operates could be negatively affected.

The company faces significant competition, which it expects will continue to intensify. Competitors include providers of domain registration services, web-hosting solutions, website creation and management solutions, e-commerce enablement providers, payment facilitation providers, cloud computing service and online security providers, alternative web presence and marketing solutions providers and providers of productivity tools such as business-class email. Some current and potential competitors could have greater resources, more brand recognition and awareness, more diversified product offerings, greater international scope and larger customer bases. The company also faces risks related to its international operations, including compliance with international laws, rules and regulations, greater difficulty in enforcing contracts, increased expenses, exposure to foreign currency risks, and geopolitical changes such as trade disruptions, including the imposition of tariffs by the U.S. on imports from certain countries and any resulting counter-tariffs, political unrest, warfare and military or armed conflict.

The company faces significant risks from its use, development, and deployment of AI, which could result in increased costs, litigation, reputational harm and liability, as legal and regulatory frameworks related to AI are rapidly evolving and intellectual property ownership surrounding AI technologies has not been fully addressed. The company is exposed to the risk of system failures and capacity constraints, and relies on third-party cloud computing systems and data centers, including Amazon Web Services, to deliver many of its products and services; any disruption could impact services and technology infrastructure. An actual or perceived cybersecurity incident could impair the company's ability to conduct business, protect data, and comply with contractual or legal obligations, and may cause the company to incur substantial costs or subject it to significant liability. The company's level of indebtedness, including its Credit Facility and Senior Notes, could adversely affect its financial condition, ability to raise additional capital, and ability to react to changes in the economy or industry, as well as divert cash flow from operations for debt payments. The company is subject to evolving laws, regulations, policies or claims concerning the domain name registration system and the internet in general, including those from ICANN, which may cause instability in the industry and disrupt its business.

Management's message emphasizes the company's focus on supporting the evolution of the open internet, including the emerging concept of an agentic open internet, and the launch of Agent Name Service (ANS) to serve as a trust layer for AI-powered agents. Key strategic priorities include harnessing the power of AI for customers through agentic AI capabilities across Airo and existing products, powering a simple and effortless presence through website building and marketing solutions, making the business of business easy through business applications and payment tools, enabling the next generation of naming through domain registration and aftermarket services, partnering up through strategic partnerships, helping customers sell anything anywhere through commerce solutions, and enabling trust and discoverability for AI-powered agents. The company is also focused on cost optimization and profitability, with cost optimization initiatives resulting in increased NEBITDA margins. The company's vision is to radically shift the global economy toward life-fulfilling entrepreneurial ventures, and its mission is to empower entrepreneurs everywhere, making opportunity more inclusive for all.