Q2 aftermarket revenue was solid compared to the same quarter a year ago, but Q3 2025 will be hard to beat.
GoDaddy (NYSE: GDDY) reported Q2 earnings after the market closed today.
The company generated $1.3 billion in revenue, up 7% year over year. Bookings were up 6% year over year to $1.4B.
The Cort Platform segment, which includes domain names, grew 4% year over year to $783 million.
Domain names contributed $470 million to the segment, a 5% year-over-year growth rate. The aftermarket portion grew faster, with 9% growth to $129 million.
However, aftermarket revenue was down slightly from Q1 2026, when it posted $130 million.
The company also cited a strong aftermarket result in Q3 last year as a challenging comparison for growth in the coming quarter. The number to beat is $136 million, which would likely necessitate some large transactions. (Now might be a good time to reach out if you have been eying a big domain.)
Applications & Commerce revenue grew 11% year over year to $515 million.
GoDaddy admitted that Applications & Commerce growth is moderating as people switch to its AI-powered Airo product. Customers are replacing subscriptions they previously bought separately from the company with an Airo subscription.
Airo remains small but is picking up steam. Annualized bookings increased 5x during the quarter from $10 million to $50 million.
The company narrowed its full-year revenue guidance from between $5.195 billion and $5.275 billion to between $5.215 billion and $5.255 billion.
Wall Street was not impressed with the results, with shares down over 7% in after-hours trading. However, shares had been up over 17% over the past month before the earnings announcement.
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