GoDaddy has trimmed its full-year revenue forecast, citing slower-than-expected adoption of its artificial intelligence tools and weakening customer acquisition rates.
The domain registrar largely met second-quarter earnings estimates, but the downward revision to its annual outlook signals persistent headwinds in converting AI investments into immediate top-line growth.
The company's struggle to accelerate AI uptake contrasts with peers that have successfully leveraged similar technologies to drive advertiser demand.
While some internet platforms are reporting revenue boosts from AI-driven ad tools, GoDaddy faces a more challenging path to monetization in its core domain and hosting business.
The weaker customer acquisition suggests that the broader slowdown in new business formation or increased competition is impacting the registrar's ability to expand its user base.
This development adds to a growing list of tech companies facing scrutiny over the return on investment for AI initiatives.