On Thursday, GoDaddy reported a significant decrease in its fourth-quarter profit and projected annual revenue that aligns with analysts' expectations. This led to a 3% decline in its shares during after-hours trading.
Investors, who had driven an 85% increase in GoDaddy's shares last year with expectations of significant artificial intelligence-related payouts, were disappointed by the company's subdued outlook.
In the fourth quarter, GoDaddy's net income fell by 82% to $198.6 million, which included a non-routine, non-cash income tax benefit.
The company, known for assisting small and medium enterprises, has introduced AI features to enhance its services. In 2024, it launched GoDaddy Airo, an AI-powered tool for developing businesses' online presence.
Jefferies analysts highlighted that the premium version of Airo, offering services like website creation based on existing social media presence, could boost conversion rates and cross-selling within GoDaddy's range of services.
For the quarter ending on December 31, GoDaddy reported revenue of $1.19 billion, slightly surpassing analysts' average projection of $1.18 billion.
The company anticipates first-quarter revenue to range between $1.18 billion and $1.20 billion, in line with the estimated $1.19 billion.
GoDaddy also projects its 2025 revenue to be between $4.86 billion and $4.94 billion, consistent with the projected $4.90 billion.