GoDaddy forecasts annual revenue below estimates, shares fall

Feb 24 (Reuters) - GoDaddy ‌forecast annual ​revenue ​below Wall Street estimates on Tuesday, a sign of slower adoption of its ‌artificial‑intelligence tools and weaker customer acquisition.

Shares of ⁠the company fell more than 6% in extended ‌trading.

The domain registrar has ‌invested heavily in AI tools designed to help small- and medium‑sized businesses build and ​automate their online presence.

The company faces intensifying competition from companies such as Wix, which ⁠has aggressively expanded its own AI‑powered website‑building tools, pressuring GoDaddy's ​ability to accelerate customer additions and premium upgrades.

Airo, GoDaddy's AI offering allows users ​to automatically create logos, ‌websites and branded marketing assets using information from a customer's existing ⁠online or social‑media footprint, reducing the time and cost involved in establishing a digital identity.

The company ⁠forecast annual revenue between $5.20 billion and $5.28 billion, below analysts' ​average estimate of $5.29 billion, according to data compiled by LSEG.

For the fourth quarter, GoDaddy reported revenue of $1.27 billion, ‌largely in line with estimates.

The company's profit came in at $1.80 per ‌share for the quarter ended December 31, ⁠compared with $1.36 a year ‌earlier.

(Reporting by Anhata ​Rooprai and Kritika Lamba in Bengaluru; Editing by Jonathan Ananda and Maju ‌Samuel)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Solstice acquiring Element Solutions in $14.5B cash and stock deal
• Factbox-Companies cutting jobs as investments shift toward AI
• Fed's Waller: Forward guidance 'valuable,' though not at all moments