GoDaddy Inc.

From the dawn of the internet, GoDaddy has been front and center, the leader in domains. And now, with nearly 30 years of innovation, serving over 20 million customers and nearly 2 billion customer signals captured every day, We have the experience, data, and infrastructure to lead the way with agentic open internet for small business. That's the advantage behind Arrow. An advantage no one else can claim. And an agentic experience none can rival. Arrow supports the entire customer journey. It starts by turning your idea into a website. Next, it grows your business, optimizing websites, improving marketing, and engaging customers through intelligent recommendations. And Arrow accelerates opportunities at scale, uncovering new markets, streamlining operations, and scaling smarter. It's a paradigm shift away from tools that require expertise to agents that provide expertise and implement it automatically. For our customers, that means real-time back, better decisions, higher success rates. For GoDaddy, agentic AI is already transforming how we operate. We're reducing cycle time and increasing our speed to shift. leading to higher average order size and better retention and renewal rates. The results for our customers are even more groundbreaking. We've been here before, moments where technology redefined what's possible. This time, GoDaddy Aero is the next leap forward.

Welcome to GoDaddy's fourth quarter and full year 2025 earnings call. Thank you for joining us. I'm Christy 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 will 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 on our investor relations site at investors.go.edu.net or in today's earnings release on our Form 8K 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, February 24, 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 mission is to empower everyday entrepreneurs and make opportunity more inclusive for all. We serve millions of micro businesses around the world who rely on us to power their digital presence. By seamlessly connecting identity, presence, and commerce into a unified technology platform at a compelling value, we give entrepreneurs the infrastructure they need to manage their ventures. Starting with 2025 results, we delivered bookings growth of 7% and expanded normalized EBITDA margin to 32% for the full year. This margin expansion reflects ongoing operational execution, reduced cycle times, and improved structural leverage, driving strong free cash flow growth of 19%. Importantly, we achieved this while continuing to embrace and develop AI tools and innovative solutions for our customers. These results demonstrate the strong earnings power of our integrated platform and the progress we are making towards our financial North Star. As we look ahead, the pace of change driven by AI continues to accelerate. AI is reshaping how businesses are built and run. Customer expectations around speed, automation and integration are unprecedented. Our global brand, domain leadership, platform scale, engineering talent, velocity of execution and care organization provide competitive advantages that will continue to differentiate us as the landscape evolves. GoDaddy is adapting with a sharpened and deliberate strategy that builds on these competitive advantages and drives long-term shareholder value. Typically, I walk through our initiatives, including pricing and bundling, seamless experience, and commerce. We continue to execute well on these priorities and they remain foundational to how we run and grow the business every day. Today, I am focusing the conversation on the forces reshaping the world, including our AI journey, our competitive positioning, and why we believe GoDaddy is positioned to win. We have accelerated our path to offering the best AI native products and experiences for our current and future customers. Over the last quarter, we have made strong progress on the following three components of our AI journey. First, evolving Aero to be the agentic operating system for small businesses brought to life on aero.ai. Second, driving efficiency by leveraging AI adoption across all functions. And third, powering AI agents on the agentic open internet with agent name service. Beginning with Aero, we have made meaningful progress evolving Aero from a generative AI experience into an agentic operating system for small businesses. Our team is building agentic AI experiences that feel like magic by effortlessly handling customers as jobs to be done, then suggesting the next best action it can take for them. Aero.ai brings this to life. We launched Aero.ai in beta late last year and are ramping traffic this quarter. Aero.ai already has 25 agents live and more are on the way. These agents autonomously perform tasks across the entrepreneur's wheel, including business idea validation, domain registration, website building, application building, marketing tools, compliance, and much more. What differentiates GoDaddy is our more than 20 million customers, decades of proprietary behavioral data, and deep relationships across identity, presence, and commerce. And we are uniquely positioned to train, refine, and scale these agents in ways that are grounded in real customer needs. our distribution at the top of the funnel combined with an integrated platform and 24 by 7 care uniquely positions us to deploy agentic capabilities at scale while maintaining trust and reliability creating and optimizing this experience is a meaningful part of the opportunity at godaddy and we are capturing value through paywalls within the experience engagement continues to build, and as adoption scales and monetization becomes more meaningful, we will provide greater visibility into the underlying performance metrics. Second, as we embed AI across the company, we are reducing cycle times and improving how work gets done. AI tools are now generating the majority of our code. New code bases are almost entirely AI-generated, shipping new features at breathtaking velocity. And multiple experiments on agent-only dev teams are underway. In our operations, we are excited about our internal AI sales agent, which handles one of the most complex sales use cases without human intervention. In the first six weeks of 2026, the sales agent handled thousands of voice calls and text chats with healthy conversion rates and very high engagement rates. As we scale this, we expect to build on the leverage we have already seen in care over the last few years and create new opportunities for sales as well. We have also built AI agents to handle tasks spanning from financial planning to compliance to marketing reviews and much more. As these examples demonstrate, AI adoption gives us confidence that we can drive further efficiencies in our business that will build on the margin improvement we have delivered over the last few years. The third update builds on our global domain leadership to extend digital identity into the agentic era through Agent Name Service or ANS. ANS is designed to anchor agent identity to the global and public domain-based infrastructure called Domain Name System or DNS. This is a unique aspect of our solution that provides multiple benefits and leverages existing internet infrastructure. By linking agents to domain-based identity, ANS introduces a verifiable layer of trust in an increasingly automated environment. And because ANS publishes to DNS, verified agent identities are discoverable worldwide within seconds using infrastructure that already supports identity and authentication across the internet today. We are pleased to announce that last week, MuleSoft, a Salesforce company, and GoDaddy launched an integration between MuleSoft's agentic fabric and GoDaddy ANS. This represents an important step in validating the framework and extending ANS into enterprise-grade workflows. ANS has the potential to create monetization similar to domain registration, extending GoDaddy's infrastructure leadership into the agentic economy while reinforcing our position at the center of digital identity. I also want to share a couple of updates on our evolving go-to-market and product efforts. Domains has been and will continue to be GoDaddy's strong, durable, cash-generative engine, serving as a long-term funnel to drive GoDaddy's growth. To further build on this resilient foundation and bring more quality customers onto the platform, this quarter we expanded our go-to-market approach with a streamlined purchase experience for new domain customers. Our objective is to broaden the top of the funnel while strengthening the long-term opportunity for lifetime value expansion. We activated our marketing channels on this streamlined experience and introduced a promotional price for .com domains with a one-year term. The approach successfully increased new customer volume that purchased domain units with one-year terms. But the demand for this offer was greater than we expected, and the shift in term mix combined with the promotional price reduced upfront bookings and near-term revenue. Mark will cover the numbers on this in his section. This new cohort of customers had solid attached behavior and post-purchase activation close to our other one-year cohorts. This early data and our history of strong cross-sell capabilities and customer retention gives us confidence that with iteration, we can optimize this path. We are refining our approach in a manner that balances increased acquisition of new high intent customers on one side with longer term and higher attach on the other, creating overall greater long term value. In February, we saw improvement with this effort and our team is focused on unlocking this value. On the product side, we are excited to share a significant upgrade to Websites Plus Marketing with a new website builder that brings together powerful AI features and a powerful editor as well. The experience starts with a fully built website based on a description and then allows easy editing with an expanded set of design options in the editor, Or if the customer prefers, they can continue with an AI-powered chat-based interface. Optimized for GoDaddy customers, the new builder creates design-led sites with amazing ease and at a cost that meets our and our customers' expectations. I am excited to share that new customers are already being opted into this experience. We plan to move fast on this transition, but given the scale of websites plus marketing, we expect it to take a few months. I look forward to sharing a broader update on this next quarter. In closing, we are executing a sharpened and deliberate strategy in a period of rapid technological change, leveraging the trust we have built with more than 20 million customers. We are leaning into our competitive strengths of domain leadership, global brand awareness, platform scale, engineering talent, velocity of execution, and care. We are advancing our AI journey, evolving our go-to-market engine, and scaling innovation in our products with measurable proof points and financial discipline. As we look to 2026 and beyond, our path forward is clear. The market opportunity is significant, our competitive position is strong, and we have the financial flexibility to win. With that, here's Mark.