Investing.com -- GoDaddy (NYSE: GDDY) shares plunged more than 16% following its quarterly results on July 30, despite revenue landing above the midpoint of guidance and free cash flow rising 13% in the period.

While the stock has partially recovered from the initial low, it remains below the pre-results level. Speaking to Investing.com following the release, GoDaddy’s Chief Financial Officer Mark McCaffrey pointed to margin expansion and cash generation when asked what he feels the market underappreciated.

"We focus on what we can control: executing with discipline and delivering for our customers, in service of our North Star of maximizing free cash flow over the long term," McCaffrey said. "Share prices go through cycles."

Free cash flow rose to $443.5 million in the quarter and normalized EBITDA margin expanded to 33%. Operating income climbed 29% to $342.5 million on revenue of $1.3 billion. The company narrowed full-year revenue guidance to between $5.215 billion and $5.255 billion and reaffirmed its free cash flow target of roughly $1.8 billion.

Much of the attention around the results centered on Airo, GoDaddy's agentic AI platform for small businesses, which reached an annualized bookings run rate of $50 million during the quarter, up from $10 million three months earlier.

Against total revenue, it remains a small contributor; however, McCaffrey noted that the growth was almost entirely organic and that the company has yet to put marketing weight behind the product.

Airo is being tested in GoDaddy's domains purchase path, its largest and most optimized funnel, with plans to scale spend once testing concludes.

"We are early, so I would not put a specific timetable on it at this point," he said of when AI becomes a larger share of the top line. “As we weave more capabilities into it and further expand the jobs it can do for our customers, over time we expect that combined offering to be more valuable than the separately priced products our customers engage with today.”

Customer growth has been close to flat, with total customers reaching 20.5 million after adding 35,000 since the start of the year, while average revenue per user rose 9% to $250. McCaffrey framed that as intentional.

"Our focus is on attracting high-intent customers and helping them get more value from GoDaddy over time," he said, noting retention above 85% and that more than half of customers hold two or more paid products. Airo users skew higher on that measure, with more than 70% holding two or more products.

“We continue to find meaningful room to grow. Many of our customers are still early in their journey,” added McCaffrey. “Airo is helping accelerate that progression.”

On demand conditions, the CFO highlighted a gap between how small businesses view their own prospects and how they view the wider economy.

GoDaddy research from July found 68% held a positive six-month outlook and 51% expect 2026 revenue to exceed 2025, while 65% believed the national economy had deteriorated over the past year.

"They are making thoughtful decisions about every dollar they spend," he said. However, he stated that “overall, we’re seeing resilience and optimism among small businesses.”

Asked whether a conventional website still matters as consumers turn to AI assistants for answers, McCaffrey rejected the framing of a trade-off, arguing a website remains a business's owned digital presence and pointing to the identity layer GoDaddy is building around it.

“With AI assistants more often being used as a discovery channel, alongside search engines and social media, it’s even more important for businesses to have a strong, structured digital presence that AI systems can understand and trust,” he explained.

“As AI agents become more capable of taking actions on a customer's behalf, businesses will also need ways to identify themselves and communicate with those agents. That's where technologies like Agent Name Service (ANS) come in.”

"We are building for a future in which small businesses need to be both human-friendly and agent-ready," concluded McCaffrey. “