Oct 29, 2026 earnings call — Airo adoption drives bookings and margin expansion
Airo's annualized bookings run rate more than doubled to over $100 million this quarter.
Revenue $1.3B (est $1.3B) · EPS $2.08 (est $1.90)
Key quotes
"In late Q3, Airo became the default option in the domains path."
"We delivered revenue above the high end of our guide and expanded our normalized EBITDA margin by approximately 120 basis points."
"This demonstration shows the integral role that identity, Agent Name Service and GoDaddy will play in an agentic open Internet."
Analyst Q&A 15
Why Airo grew bookings fast
Q (Hoi-Fung Wong · Oppenheimer): Analyst asked whether Airo volume is from higher contract values or new customers from Airo marketing, and how it's attaching versus cannibalizing other products.
A: Management said most of the Airo bookings came from migrating existing customers, that Airo is adding more than it is taking from Websites + Marketing, and that attaching credit packs at the starter tier is driving incrementality.
"Almost all of it is attributable to the migration of existing customers as we just launched it into the domain purchase path." — Mark McCaffrey (CFO)
AI traffic, bundles, and API tests
Q (Vikram Kesavabhotla · Baird): Analyst asked how GoDaddy is adapting to more traffic from LLMs, early API observations, and planned pricing/bundle tests in 2027.
A: Management said they saw a jump in LLM-originated traffic from a small base, are expanding APIs for agent builders and new channels, and will test new bundles near the end of this year into early next year to improve LLM visibility.
"We'll be testing these bundles at near the end of this year, into early next year." — Amanpal Bhutani (CEO)
Airo margins and model routing plan
Q (Mark Zgutowicz · StoneX): Analyst asked whether gross margin pressure is from inference costs or product mix, and when inference costs might ease.
A: Management said Airo has lower gross margin than some internal products and will pressure gross margin, but they will use levers like routing between frontier and open weight models and running models in their data centers to balance cost and value over the next months.
"So there's 3 or 4 levers there that we intend to use to sort of balance this equation." — Amanpal Bhutani (CEO)
Developer APIs and domain promotions
Q (Jamesmichael Sherman-Lewis · William Blair): Analyst asked about adoption trends for the developer platform and whether domain discounting will change GoDaddy's promotional intensity.
A: Management said the developer APIs are very new but include domains, hosting, commerce, and professional e-mail, and adoption has started well though awareness is low. On promotions, they said they test pricing and merchandising using many metrics and can make tactical moves but focus on high-intent customers and LTV.
"We really want to get to situation where our APIs have the competitive differentiator in terms of the breadth of products that we offer." — Amanpal Bhutani (CEO)
Airo bookings: credits vs subscriptions
Q (Alexei Gogolev · JPMorgan): Analyst asked what percent of Airo bookings are credit packs versus subscription and whether credits attach from migrations or new domain-path customers; also asked to size LLM traffic channel.
A: Management said roughly 2/3 of Airo bookings are subscription and 1/3 are credit packs, primarily from migration as Airo launched in the domain purchase path, and that LLM traffic grew from a small base so it's encouraging but too small to fully parse.
"I would say it's roughly 2/3 subscription, 1/3 credit packs is contributing, and it's primarily coming from the migration as we launched the Airo in the domain purchase path late in the quarter in and of itself." — Mark McCaffrey (CFO)
Repeat credit pack buying behavior
Q (Willow Miller · William Blair (Arjun Bhatia)): Analyst asked whether customers are already repurchasing credit packs and showing repeat consumptive behavior.
A: Management said a Pareto-like mix exists where some customers use many credit packs while most use just enough and then shift to subscriptions; they see opportunities to get customers to use Airo for more jobs to increase engagement and purchases.
"What we're seeing is that the sort of Pareto-type curve where a percentage of customers are using a lot of credit packs, right?" — Amanpal Bhutani (CEO)
Agentic APIs demand and hosting
Q (Kishan Patel · Raymond James): Analyst asked where demand is strongest across Agentic APIs and thoughts on Agentic hosting opportunity.
A: Management said it's very early and they can't yet call where demand is strongest; they noted Node.js hosting launched recently, is adopting well from the web, and that API discovery is the main work remaining.
"Yes. So I think it's just very early for us to sort of comment on where we see the most." — Amanpal Bhutani (CEO)
Airo monetization vs WAM and agent effects
Q (Robert Coolbrith · Evercore): Analyst asked if Airo subscription plus attached products equals Websites + Marketing lifetime value, and whether consumer agents are causing customers to audit subscriptions or cancel renewals.
A: Management said WAM had years of optimization; Airo is early but attaches well and can iterate to similar monetization over time. They also said they have not seen agent-driven cancellations and domain retention has improved; only e-mail seat reductions were noted for microbusinesses.
"As we think about Websites + Marketing, I would just share the context that the optimization of Websites + Marketing across the different plans that exists has been done over -- over multiple years." — Amanpal Bhutani (CEO)
A&C bookings vs revenue and other agents
Q (Naved Khan · B. Riley): Analyst asked whether A&C bookings should accelerate as Airo scales, and how GoDaddy's agent compares to agents from large platforms like Meta.
A: Management said they expect bookings to be slightly ahead of revenue for A&C driven by Airo momentum and that Airo is targeted with built-in hosting, payments, and jobs to be done, giving it advantages versus general agents; they see a changing ecosystem and competition ahead.
"Yes, the comment that we would be slightly ahead on bookings to revenue was for the full year, but we attributed to the momentum in Airo adoption, which is obviously A&C related." — Mark McCaffrey (CFO)
High-value customer cohort and AI internal use
Q (Cantor Fitzgerald): Analyst asked what share of customers spend over $500 with 2+ products and how GoDaddy is using AI internally to offset operating costs.
A: Management said the $500-plus customer group is about 10% and improving. They added that GoDaddy is using AI widely in software development and expects AI tools and routing to different models to trickle into operations over the next 3 to 6 months to improve efficiency.
"I'll start with the -- yes, it's about 10% customer group, $500 plus." — Mark McCaffrey (CFO)
A&C revenue timing and international growth
Q (Sang-Jin Byun · Jefferies): Analyst asked if A&C revenue should rebound after year-end given faster bookings, and why international growth lagged U.S.
A: Management said revenue timing can shift by period based on token usage and subscription starts, but they like Airo momentum; for international, they said no specific issue besides Aftermarket transactions being mostly domestic this quarter versus prior international mix.
"On the A&C revenue, obviously, we are excited about the bookings trajectory of what we're seeing related to Airo and momentum around it." — Mark McCaffrey (CFO)
Verisign price increase and OpEx levers
Q (Elizabeth Elliott · Morgan Stanley): Analyst asked how GoDaddy will handle the upcoming Verisign price increase and to detail incremental OpEx efficiency opportunities.
A: Management said they base price increases on their pricing and bundling initiatives and many metrics including retention, and that price increases apply on renewals. They said OpEx tailwinds persist and productivity gains across the P&L are incremental to prior targets, providing choices for reinvestment.
"So even if we look back the last few years, we tend to take price based on our pricing and bundling initiative versus when partner may take pricing." — Amanpal Bhutani (CEO)
ANS identity, monetization timeline
Q (Ygal Arounian · Wedbush): Analyst asked about ANS progress, whether monetization signals exist, and when it could hit financials.
A: Management said ANS is about assigning identity to agents to build trust and enable commerce; they demonstrated agent-to-agent transactions and rogue-agent rejection, see many monetization use cases they are pursuing, but consider ANS a long-term opportunity and not in current numbers.
Connection check
Q (Chao Zhang · UBS): Analyst checked connection: asked if the host can hear him.
A: No management answer appears in this short exchange; the analyst simply confirmed connection and the call moved on.
ANS role and Airo customer product mix
Q (Chao Zhang · UBS): Analyst asked whether ANS is mainly a long-term indirect driver for domain subscriptions and what incremental investment is needed; then asked to clarify the 70% stat for Airo customers getting a second product.
A: Management said ANS is a tailwind for domains and DNS and that multiple ANS monetization paths are being pursued but need proof over months and years; they added the 70% figure is for new Airo customers who add a second paid product, typically a domain then e-mail.
"The 70% is based on paid products." — Mark McCaffrey (CFO)