(Reuters) -GoDaddy marginally beat Wall Street expectations for second quarter revenue on Thursday, aided by steady demand for its internet hosting services.
However, the company’s shares fell around 4% in extended trading. It forecast third-quarter revenue in-line with analysts expectations.
The company also said it will no longer operate as a registry service provider for the .CO level domain from the fourth quarter, instead remaining as just a distributer of the domain.
This is expected to hit to its bookings and revenue by 50 basis points, primarily in the fourth quarter, the company said.
GoDaddy’s incorporation of artificial intelligence has helped attract more businesses to its services as they seek AI tools to grow their digital footprint.
The company, which primarily caters to small-and-medium sized businesses, has seen its stock fall over 21% so far this year after rising nearly 86% in 2024 as investors bet on new product launches to drive growth.
GoDaddy reported second-quarter revenue of $1.22 billion, slightly higher than estimates of $1.21 billion, according to data compiled by LSEG.
The company forecast third-quarter revenue of between $1.22 billion and $1.24 billion, the midpoint of which is in line with analysts expectations.
It raised the lower end of its annual revenue forecast to $4.89 billion from $4.86 billion, while keeping the upper end steady at $4.94 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo)
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