Oct 30 (Reuters) - GoDaddy ( GDDY ) raised its annual

revenue outlook on Thursday, expecting to boost sales from the

addition of artificial intelligence features to its internet

hosting services.

GoDaddy ( GDDY ) 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 ( GDDY ) 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 ( GDDY )

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 ( GDDY ) business, which primarily caters to small and medium

businesses.

Shares of GoDaddy ( GDDY ) 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 ( GDDY ) 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.