GoDaddy, Inc. Class A (GDDY.N): Airo Impacting NT Bookings as GoDaddy Prioritizes Product Transformation; Watching Free-to-Paid Conversion

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GoDaddy, Inc. Class A (GDDY.N): Airo Impacting NT Bookings as GoDaddy Prioritizes Product Transformation; Watching Free-to-Paid Conversion

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02 Aug 2026 21:56:12 ET │ 15 pages

GoDaddy, Inc. Class A (GDDY.N)

Airo Impacting NT Bookings as GoDaddy Prioritizes Product

Transformation; Watching Free-to-Paid Conversion

CITI'S TAKE

While A&C bookings growth decelerated ~200bps in 2Q to +7% Y/Y, we Buy / High Risk

believe GoDaddy’s near-term bookings challenges are largely the result of

strategic product transformation efforts: displacing legacy solutions by Price (31 Jul 26 16:00) US$82.74

folding capabilities into an improved Airo UX. However, with Airo monetized Target price US$105.00↓

by a mix of subscriptions and token consumption, vs. standalone-priced

from US$110.00legacy offerings, the transition is resulting in lower NT bookings even as

GoDaddy expects higher LTV over time (with initial proof points from higher Expected share price return 26.9%

attach rates and free-to-paid conversion). Therefore, while acknowledging Expected dividend yield 0.0%

displacement headwinds clouding near-term visibility, with shares of GDDY

Expected total return 26.9%-17% since reporting 2Q earnings, we reiterate our Buy rating on GoDaddy’s

strengthening product roadmap which could re-accelerate bookings Market Cap US$10,479M

growth as Airo demand and conversions ramp, though our lower $105 TP

reflects execution risks.

5 Key Takeaways from the Quarter: Price Performance

(RIC: GDDY.N, BB: GDDY US)

1) A&C Bookings Growth Decelerates ~200bps to ~7% Y/Y in 2Q with Airo

Impacting NT Pipeline—with Airo migrations a combined ~1pt headwind to total

bookings growth as Do-It-For You (DIFY) customers self-serve via Airo (narrowing