GoDaddy Q3 2025 Results: Strong Revenue Growth and Higher ARPU

GoDaddy, a key player in providing digital tools for entrepreneurs and small businesses, recently filed its financial results for the third quarter of 2025. For anyone interested in the health of the small business economy or the digital services market, this latest 10-Q filing offers a valuable look under the hood. Let's break down the key numbers and what they tell us about the company's performance.

Solid Growth at the Top Line

GoDaddy reported a strong quarter, with total revenue reaching $1.27 billion, a 10.3% increase from the same period last year. This growth was fueled by both of its primary business segments:

• Applications & Commerce (A&C): This segment, which includes higher-value services like website builders, e-commerce tools, and managed WordPress, was the star performer. It generated $481 million in revenue, marking a significant 13.7% increase year-over-year.
• Core Platform: The company's traditional powerhouse, encompassing domains and basic hosting, also saw healthy growth. It brought in $784 million, up 8.3% from the prior year.

This continued momentum, especially in the A&C segment, highlights GoDaddy's successful strategy of moving customers beyond simple domain registrations to more comprehensive—and lucrative—digital solutions.

The following flow diagram provides a clear visual breakdown of GoDaddy's revenue streams and how they translate into profit for the third quarter.

The Story of ARPU vs. Customers

While revenue growth is strong, a deeper look at the operational metrics reveals a fascinating strategic pivot. GoDaddy's total customer count slightly decreased to 20.4 million from 20.7 million a year ago. However, this isn't a red flag. In fact, it points to a deliberate focus on customer quality over quantity.

The key metric here is Average Revenue Per User (ARPU), which surged to $237 from $215 in the prior year. This impressive jump shows that GoDaddy is effectively upselling and cross-selling its existing customers onto higher-tiered products, particularly within its fast-growing A&C segment. The company is successfully getting more value from a more engaged customer base, a strategy that often leads to more sustainable long-term growth.

This is further supported by the growth in total bookings, a forward-looking indicator that measures cash collected for future services. Bookings rose 9.1% to $1.35 billion, suggesting that the revenue pipeline remains healthy.

Profitability and Shareholder Returns

GoDaddy's growth isn't just on the top line; it's also translating into strong profits. The company's net income for the quarter was $210.5 million, a 10.5% increase from the prior year. Operating income grew even faster, up 16.9% to $296.7 million, indicating improved efficiency in managing its operational expenses.

The company is using its strong cash flow to reward shareholders. In the first nine months of 2025, GoDaddy spent approximately $1.4 billion on share repurchases, a significant return of capital that reflects management's confidence in the business's value and future prospects.

Final Thoughts

GoDaddy's Q3 2025 results paint a picture of a mature company executing a smart transition. While facing intense competition from players like Squarespace and Shopify, GoDaddy is leveraging its massive domain customer base to build a thriving ecosystem of commerce and application services. The trade-off of a slightly lower customer count for a significantly higher ARPU appears to be a winning formula, driving both revenue and profit growth. As small businesses continue to digitize, GoDaddy's strategic focus on providing a comprehensive suite of tools positions it well for continued success.