GoDaddy posts sharp decline in fourth-quarter profit, shares fall

GoDaddy

13/02/2025 23:05

Feb 13 (Reuters) - GoDaddy  GDDY.N  on Thursday recorded
a massive drop in its fourth-quarter profit and forecast annual
revenue in line with analysts' estimate, sending its shares down
about 3% in extended trading.
    The lackluster outlook by the company, which helps
businesses set up online domains, comes after investors drove an
85% rally in its shares last year expecting large artificial
intelligence-linked payouts.
    The company's fourth-quarter net income dropped 82% to
$198.6 million. Net income was inclusive of a non-routine,
non-cash income tax benefit, it said.
    GoDaddy, which primarily caters to small and medium
businesses, has been rolling out AI features to gain traction
for its services. It launched GoDaddy Airo — an AI-powered tool
to design and build a business' online presence — in 2024.
    The premium version of its Airo tool, which includes
services such website creation based on existing social media
presence, could help drive improved conversion and cross-selling
across GoDaddy's portfolio, Jefferies analysts said in a note in
December.
    The company's revenue for the quarter ended December 31 came
in at $1.19 billion, compared with analysts' average estimate of
$1.18 billion, according to data compiled by LSEG.
    It forecast its first-quarter revenue to be between $1.18
billion and $1.20 billion, in line with the estimate of $1.19
billion.
    The company expects 2025 revenue in the range of $4.86
billion to $4.94 billion, also in line with the estimate of
$4.90 billion.

 (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi
Majumdar)
 ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))