What GoDaddy (GDDY)'s Raised Full-Year Revenue Guidance Means For Shareholders

• GoDaddy Inc. recently announced its third quarter 2025 results, reporting revenue of US$1.27 billion and net income of US$210.5 million, while also raising its full-year 2025 revenue guidance to a range of US$4.93 billion to US$4.95 billion, signaling 8% growth at the midpoint.
• Despite a slight shortfall in fourth quarter guidance compared to analyst expectations, the company's decision to raise full-year revenue outlook highlights leadership's confidence in continued business momentum and growth opportunities.
• We will explore how GoDaddy’s raised full-year revenue guidance impacts the company’s investment narrative and future growth expectations.

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GoDaddy Investment Narrative Recap

To be a shareholder in GoDaddy, you need to believe that the company can maintain its lead in helping small and medium businesses establish and grow their online presence, while expanding into higher-margin software and commerce services. The recent uplift in full-year revenue guidance supports the near-term growth catalyst, adoption of AI-driven bundled solutions, yet the updated fourth-quarter outlook doesn’t materially impact the main current risk: competitive pressure from one-stop-shop rivals and persistent customer churn.

Among the recent announcements, GoDaddy’s ongoing investment in expanding its AI-powered offerings, such as the addition of Digital Ads features to more markets and the promotion of Airo, stands out. These innovations are directly tied to the company’s core catalyst of increasing average revenue per user and improving retention by embedding more value into bundled services.

On the flip side, investors should be aware that despite encouraging top-line trends, the risk of ongoing margin pressure from aggressive competitors remains material if...

Read the full narrative on GoDaddy (it's free!)

GoDaddy's outlook anticipates $5.9 billion in revenue and $1.3 billion in earnings by 2028. This projection relies on annual revenue growth of 7.7% and an earnings increase of approximately $491.5 million from the current earnings of $808.5 million.

Uncover how GoDaddy's forecasts yield a $187.75 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members have estimated fair values for GoDaddy between US$110.50 and US$253.49 per share. With opinions this varied, and a key catalyst relying on sustained success in AI-driven services, you have plenty of alternative viewpoints to consider.

Explore 3 other fair value estimates on GoDaddy - why the stock might be worth as much as 90% more than the current price!

Build Your Own GoDaddy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GoDaddy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free GoDaddy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GoDaddy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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