GoDaddy lifts AI bookings pace above $100 million as quarterly revenue grows 6%

The company said Airo’s annualized bookings pace exceeded $100 million in its third-quarter results, according to StockStory’s account on Yahoo Finance. Revenue rose 6% to $1.34 billion, while management said Airo carries gross-margin pressure compared with older products.

The quarter nevertheless delivered higher company-wide profitability. Operating margin reached 27%, up from 23.4% a year earlier, and adjusted earnings were $2.56 a share against analysts’ $2.47 estimate. Management pointed to expense discipline alongside Airo adoption, rather than presenting AI growth alone as the explanation for the financial results.

Airo sells more than the first product

Management attributed Airo’s momentum largely to customers moving from legacy website products and buying additional services. More than 70% of new Airo customers add at least one other paid product. The company said Airo already matches or exceeds its predecessor at encouraging customers to buy multiple products, giving the migration a commercial role beyond replacing an older website offering.

CEO Aman Bhutani said the rollout has begun offsetting declines in legacy products. Management also highlighted retention above 85%, with customers using several products showing particularly strong loyalty and lifetime value.

The bookings measure describes an annualized pace, not $100 million of quarterly revenue. Its progression is nonetheless substantial: management put the rate at $10 million two quarters earlier. GoDaddy plans to make Airo central to its product lineup, supported by more marketing and product integration intended to lift conversion and additional purchases.

Higher sales meet a heavier cost profile

The margin comparison is less favorable at the product level. Management expects operating efficiencies and cost controls to offset Airo’s gross-margin pressure at the adjusted EBITDA level, a profit measure before interest, taxes, depreciation, amortization and certain adjustments. That is an expectation about managing the cost mix, not a claim that Airo is cheaper to deliver than legacy products.

GoDaddy is working on the cost of inference—the computing needed to run AI models—using internal data centers and open-weight models. Its plans also include refining model selection and expanding internal GPU resources. CFO Mark McCaffrey said savings from AI-driven operational improvements are expected to help fund strategic initiatives.

Pricing and distribution remain moving targets

GoDaddy reaffirmed full-year revenue guidance of about $5.24 billion at the midpoint. Its commercial plans include testing bundles and pricing as domain and hosting competitors offer more discounts and free entry-level services. Management wants those tests to attract both traditional small businesses and more technically oriented customers, rather than relying on one buyer group.

The company has also expanded software interfaces for agents across domains, hosting, email and commerce. These target customers working through coding assistants and command-line tools. Bhutani described that activity as a new traffic channel requiring different product integration, while management said buyers arriving through AI-powered interfaces will shape its sales and marketing approach.

Seeking Alpha contributor Ricardo Fernandez offered a bullish interpretation in his October 31 investment analysis: Airo is helping GoDaddy raise average revenue per user and withstand AI disruption. He maintained a Buy rating and a $162 year-end 2027 price target. Those are his investment judgments, distinct from the company’s reported operating results and revenue guidance.