(Reuters) -GoDaddy raised its annual revenue outlook on Thursday, expecting to boost sales from the addition of artificial intelligence features to its internet hosting services.
GoDaddy has been rolling out AI features to gain traction for its services, which help businesses set up online domains, payment systems and expand their online presence.
For the year, GoDaddy raised its revenue expectations to a range of $4.93 billion to $4.95 billion, up from a prior sales forecast of sales between $4.89 billion and $4.94 billion.
The company launched GoDaddy Airo in 2024, an AI-powered tool to design and build a business’ online presence.
The premium version of the product, dubbed Airo Plus, includes services such as logos and website creation based on existing social media presence. Analysts expect it to help drive improved conversion and cross-selling across GoDaddy’s portfolio.
However, it forecast fourth-quarter revenue below estimates, facing intensifying competition from providers like Wix in the near term.
Wix has seen robust bookings growth and strength in new purchases and renewal activity, posing a significant threat to GoDaddy’s business, which primarily caters to small and medium businesses.
Shares of GoDaddy fell close to 1% in extended trading. The stock has fallen about 35% this year.
The company expects fourth-quarter revenue in the range of $1.26 billion to $1.28 billion. The midpoint of this range is below analysts’ average estimate of $1.28 billion, according to data compiled by LSEG.
For the quarter ended September 30, GoDaddy reported revenue of $1.27 billion, beating estimates of $1.23 billion.
Its third-quarter net income grew 10% to $210.5 million from last year.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
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