GoDaddy raised its three-year free-cash-flow-per-share compound-growth rate target to at least 25%, up from 20%, at the Goldman Sachs Communacopia + Technology Conference on September 9, while reaffirming full-year free-cash-flow guidance of $1.8 billion.
Chief Financial Officer Mark McCaffrey said normalized EBITDA margin for 2026 remains on track at 33%. Normalized EBITDA converts to free cash flow at a rate "slightly better than one to one," he said, noting that normalized EBITDA margins have expanded by 1,000 basis points over the past five years.
The guidance revisions followed stronger-than-expected adoption of Airo, the company's AI builder launched in the first quarter that consolidates website building, app development and commerce into a single platform. GoDaddy said second-product attachment rates are happening 30% faster than before Airo's launch. More than 50% of GoDaddy's overall customer base now holds a second product, compared with 70% of Airo customers, the company said.
Customer retention after the first product sits at roughly 85%, McCaffrey noted. Retention rises further once customers adopt a second product, and by the third product, "we pretty much have a customer for life," he said. "Airo kind of puts jet fuel on our ability to do that."
GoDaddy launched Airo internally without adding engineers, the company said, underscoring what McCaffrey described as disciplined capital allocation.
"We're getting and going into areas that have the right ROI and just not investing in things for the sake of investing," McCaffrey said.
On the infrastructure side, GoDaddy introduced its Agent Name Service, which it called an extension of DNS into the agentic internet. ANS was contributed to and co-developed with the Linux Foundation alongside Cisco and Salesforce, backed by what McCaffrey described as the company's 30 years of DNS experience. "We're trying to prevent the Wild West of agents," he said.
GoDaddy targets entrepreneurs, micro-businesses and mom-and-pop shops typically employing two to five people, rather than enterprises or developers. About 60% of domain traffic reaches godaddy.com organically and directly, the company said.
GoDaddy shares were trading around $101.23, up 3.22% at the time of publication.
Christie, GoDaddy's head of investor relations, participated in the session alongside McCaffrey.
