GDDY - Earnings call transcript Q3 2018

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Operator

Good afternoon. My name is Jesse, and I'll be your conference operator today. At this time, I would like to welcome everyone to the GoDaddy Q3 2018 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. you. Thank Instructions] [Operator may conference. you begin Kemp, your Sam

Sam Kemp

why our we'll net of use debt On and Winborne, and as to be ARPU. A remarks, prepared non-GAAP cash and the measures, metrics Good financial GoDaddy's With organic the such questions. posted third financial measures non-GAAP or on acquisition of to HEG bookings, our thank filed share you and ability the Unless new are statements, forward-looking our we'll that of our impact Scott. and or we me recent Ray These risks desired we'll that, X-K Scott X, and and future financial release. future information including as discussion that their unlevered acquisitions reconciliations earnings future us share these of for the update program forward-looking investors.godaddy.net, those from be flow, SEC Relations statements today's for and differ are no the the contained Street of product joining our November repurchase be Ray discussed to Hub. financial introductions forward-looking and in stated, a today, With call at over of those HEG integrate are equivalents uncertainties Officer; as potential to Investor when our refer statements. assumptions quarter Executive acquisition achieve to make and are Wagner, in may on to afternoon, Financial subject will Street of those we open found with related and statements SEC. results recent Scott are measures measures statements some Officer. Hub. Main discussing with matters and otherwise and results excluding call, Main Actual GAAP up new today referencing obligation may referring today Chief to forward-looking website in total on this based we materially Chief with XXXX non-GAAP result earnings or free our undertake then results, for include include and detail The presentation we documents today's XXXX, both our which events. to our and in GAAP to Any operating call. Form we innovations, synergies, call filed

Scott Wagner

Sam, of today joining to and discuss all for you us quarter third to thanks results. Thanks, our

never civic through an it's important be online, idea community a enable that take idea an grow and to to not toolset event integrated and it thrive only where environment experience. more been an get to but in idea whether business, We’re organization that or and

indispensable they GoDaddy of and pride continue an our execute making create We drives on in vision digital for to work. as presence a idea that creates their forward, both entrepreneurs partner their

topics. flow XX%. three quarter Our up at will our revenue year-over-year on with strategy even and that third reflect faster time spend we unlevered cash free Today execution results growing XX% on

making we're our applications. online in progress the presence First,

our the broad an Second, execution. financial infrastructure customers’ our and before customer both customer compelling their in And into begin update and level. But coming points and and frontline journeys we Ray world cover continued representing going our about ventures experience, at ways. touch on authentic to GoDaddy is at finally a is ideas the level both

to launch business who juggling world an entrepreneurs in family. be entrepreneurial our thrilled helping most the from successful will active Ayesha that with As of that social new excited one with well. in her icons, scratch, million example we’re brand their entrepreneurial food be personalities part will of excited Ayesha known related Curry be million customer an we’re we followers GoDaddy position and together. XXXX to we’re on her started our journeys see celebrates XX latest the everyday perfect X a over and is to of food customers while ideas partnership and plus doer also the media. affiliated their And our with the evolve and our to in messaging world celebrity Ayesha with experience and venture that as

with and promoter improvements to point my moving we in scores. continued retention, quarter including mobile first shared conversion with themes use, Now presence have rising on net GoCentral, last you customer the free-to-paid

and partner presence businesses profile marketplace recently to to other a application features add its it an create GoCentral the indications the to both for Amazon, Yelp our and engagement builder also dashboard. significant major from from continuing eBay, business and broader added added their sell making We to commerce Yelp products expanding We’ve their claim a Etsy product across listing single solution, website post and We’re dashboard. right presence tool. for as GoCentral as for online marketplaces simpler

building third-party other a new allowing we head quickly to process we’re partnered as we and and pace XXXX. integrations presence of out these add depth streamlined into of new with our As to us points platforms accelerate

offering acquisition of Another Street important media social our which recently branding development engagement. and assisted Main Hub, in platform for closed is our is presence our

we We we’re acquisition Ultimately while our months our validation we’re the and seeing receptivity social audience. on benefit we everybody, and encouraged And is customers customer my of positive help experience. know we’re value us, pieces. can into early a in communicate the customers actually just bring four final customers customer unlock part and ahead early can of We’re Remember that have our into customers our the their management of of ways ties to efforts In and GoDaddy with work them. seeing integration. beginning we’re the a all that we still to serve that to of our base promise of from instead points of selling potential. integration. by point original of our And just this to cultivating media assisted how services for both there's building real through lot ton site

talk strides touch a the we while frontline underlying top teams one itself. this improvements highest up and improvements To tackling satisfaction increasing net we combination crucial how points set, to cut product we points customer other significant we capacity that that into of scores That's lead the with cloud for we’re both scores this the big components GoDaddy's in what in we potential expectations consistent on that a making on success initiatives to and on are infrastructure, and focus are our example marketing, what are and touch that substantial align to our This both of flexibility. with customer whether experience. our seeing the about times the and at measures across While since often software also recently early we and scalability, promoter GoDaddy's making products ability of on of and product these which iterate speed, flows to website, with individual With their history. AWS And migrating and give is deployed of and customers performance, pace platform our change two-thirds versus care in allowing infrastructure is reps be customer or basics can engagement. of our showing significantly have. or we’re our lead our our started you you provide we’re our effort product blocking GoDaddy's lot is in feature around points their and our do application to on and AWS’ performance typically we’ve workloads to able more and begun a seeing infrastructure it’s in

I'd enabling to over to true stepped October. our if ideas didn't Ray thrive attention to who and pleasure cover GoDaddy continues of wide throwing I financials. over we the entrepreneurs his recognize to Parsons, industry in it true and a take built pioneer contributions. Before a big heart Directors six in into know his all to I epitomize fashion, years last now and down his honor him Bob I thank the of taking it's a and to He be been a people's GoDaddy's is devoting Bob for hand get risks. Ray, dream activities. Board remiss and our all the GoDaddy Bob With new was soul while founder, in from moment entrepreneurial is Bob is here so a much and entrepreneurial and that to grow range customers. Personally, start, to and about

Raymond Winborne

solid Scott. cash closing flow, the in We results in outlook while Thanks, financial Main quarter. for future, great strong the delivered will with the for touch the top-line year. earlier continuing quarter the the I performance the Street the to on free of another rest invest including unlevered acquisition and growth quarter Hub of for and

across quarter, purchase business second growing and the $XXX On sales. from all was growing of Hub. and $XXX year-over-year or XX% impact excluding Underlying revenue segments came at year-over-year, the Street in quarter on purchase and with strength revenue of particular million of outperformance XX% in line excluding in accounting in accounting. aftermarket XX% top-line impacts the or with the the International million domains QX registrations strong Main back XX% growth was the reflects coming of the

revenue. basis. were headwinds XX% Bookings XX% a currency $XXX on year-over-year, on million or currency QX grew negligible Foreign to rising constant

Let me few our trajectory. related to bookings a things touch on

That a XXX basis point obviously has affect XXX we flow magnified QX the the results. strengthened QX. from as dollar in US international midsummer, First, saw in currency to tailwind basis in headwind point

Second, improve lifetime we experience as the merchandising continually we’ve and tactics testing the to value. mentioned customer past, are customer in

the in turn, are bookings Some good of revenue impact but the will these long-term business. and of in for customer, short-term the for our health and

in we test initiatives piece While regions still relatively in business our before smaller this up it was as broadly. segments prefer finally, all And that's show quickly. launching been control will growing within a small more iterate will and to of show more likely it up international

that a some China X seeing led softening in total are deceleration QX little bookings. point to in less of We to

XX.X to solid reflecting by HEG go-to-market CapEx flow international balance term. Unlevered net our a and key free new leaning Through investments, We've months, top-line and cloud, remain on both grew we free to With to cost Unlevered With light our landed with robust slight billion this you'll quarter or and particularly quarter X million returns any cash in CapEx just a lifetime gross early to on for notice Moving in to shareholders. year, source on-ramps retention. track was X% in fourth of the but quarter. the ARPU the end in basis. spend be the growth. at year-over-year, other $XXX net spending end near meet $XXX mix we been back year. grew $X.X growth creation through the strong month we on on mid-single-digits finished on we're unit where the improvements precisely ARPU economics impacted leverage adds in cash expect $XXX, last debt we on the was sheet and our spend transition to XX% the of don’t we the X a expect acquisition million. past timing to to need QX would customer them reflecting capacity incremental message and our trailing in was to in which and are the and up exactly a net XX Customer We of customers leverage short-term meaningful at flow, X%, right customer drive we’re right states into efforts, added the times present flow more by base marketing the channel. year rose of year-over-year respect million growth with at solid more including the to where X.X We’ve QX, to the customers more and under X.X metrics. ability the ago. point as said value bounce the we to customers. that leveraging new for value million, at bringing effects favorably evolving the for spend, million was planned about conversational of target in in times our of XX find XX our due customer basis creating acquire flow-through in product base. customers, normalized marketing cash remain cash XX%, we be into One and strength margin times

internal taking this remains investment, repurchases. priority generative highly through and share nature third cash of of acquisitions, first advantage through Our the via business, second

shares. XXX financial up Given Class balance to the an our of declining million strength of ratio purchase to Board Directors our sheet open-ended leverage authorization capacity, our and A of approved the

to as M&A going product, We’ve as bottom-line our far, thus of as in they our experience not year thoughtful ability a well in had made as both this terms we execute take opportunities investments We’re of to a strong arise. platform. constrain to and and manner advantage strength customer top-line in so

that with the year result billion a let performance So as growth Revenue fourth billion $X.XXX the full to the midpoint. for third to are range for at rest outlook year quarter year. $X.XXX we and our XX% me turn of to expectations implying our of the of the raising full strong quarter,

year-over-year and full we experience, impact that burn unlevered Street That Hub acceleration and business year flow, reflects expect approximately implying making marketing. For $XXX the branding expanded Main investments growth. of in free and capabilities in XX% conversational cash customer generate the associated an to we’re cash million with

it approximately with payment $XX which tax-related includes million, million approximately million PlusServer of cash will gain we a the for excludes a and project guidance, payments reminder, total excludes cash year $XX onetime cash on the tax flow of be sale last year. associated As interest payments our of $XX

we And you in rate this GoDaddy the a this As healthy see growth an free on for and couple and with that the And that, we them everyone making of services create power the our advantages. months online provided the plus great while about strategy to is of XX% unlevered hopefully XXXX call which for world that Day top-line our getting of has holds it's GoDaddy our nice we margins future The last continuing up everyone results, markets. volatile business execution. XX% today. let's stability to the to We framework which Thanks a true joining growth reflect a the at run double-digit the resonates standpoint, increasingly provide feel consistency been questions. to open for ideas that of is with and with for in cash consistency flow there Obviously, have look is top-line in choppy defensible mix call. From mission-critical of a time. people's us growth Investor bottom-line over and and for investing XXXX. great, to

Operator

the [Operator Instructions] Grant Your line first from Goldman of Mark question comes with Sachs.

now line Your open. is

Mark Grant

A couple me. quick from ones

in So a bit if could quarter. provide what bookings you the little more around color drove

a that and into things in there? anything mentioned to initiatives talk are into change intelligent kind driving seeing serving then you bit a the those is about are or Can customer You that of saw mentioned growth, seeing seeing upsell potential to worth costs improve side, returns. it any or is in I conversational of base? way guess another good on Thanks. acquisition little those And drilling deferred, couple customer we within some you impact you're initiatives you about more the your go-to-market marketing leaning you’re and that

Raymond Winborne

of did I Ray. a in its Yes number the subscription making a at better frankly experience term bookings. result factors around start decisions my on will were is I in in comments key there a highlight but call length to we’re changes customer due the factors few Mark in the cases drivers. as example, many customer mix, were an decision it experience. Shorter-term product conscious and a play

around more and think that renewal subscription, you renewals they as you serves products examples better say to one a that the more a and points lot would where have an If times comes more of we’d frequent about rather year opportunity well. and customer multiyear single when be sell give a interval sell our at

Scott Wagner

Scott. it's And

The acquisition. marketing second as But going just focused we’re cost talking tiny customer to of spending you to we’re base forward. happy still spend, our about and marketing Mark our more effort customer was is bulk it. of conversational the Your around of marketing said acquisition how question, about around amount think relatively with

grow to us, for continue still to small. and going aspect pretty but notion We’re that it’s

customers, adds for up at basis number new good. mentioned, If we’re our quarter month on on gross a basis you X.X the look had customer million XX are net overall a Ray our

showed gross level a add with retention standpoint, we’re up. what customer on from So happy the level both a and

don't number we’re retention. to manage customer we both mentioned, and we’ve As with happy that adds necessarily but the

Mark Grant

Ray Thanks is there. take mentioned, indication you that as number improvement improve the mentioned shorter experience that be as might you’ve see about? and an duration that you some When talked can something that in then customer able we the we XX% churn customer to that

Raymond Winborne

developed pushing obviously Mark, improve day that's and Yes. improve continued where to experience, markets we’ve improvements over and time retention. in the try churn more we’re the improve to particularly slight every to so see in that

Operator

from is Oppenheimer. question next Jason Helfstein with Your

Your line now open. is

Jason Helfstein

if it's apologize covered. and question Two

down a bookings year-over-year X% pattern last and big is quarter as the part saw deferred I kind we obviously there so year think is to So from slowed down ex-FX second of change a second a basics go that of bookings same where on which revenue in quarter.

shift about you a can talk growth got guess, And XX% that there organic I’ve I follow-up. that as on you down think then the reasonable one of So bookings, more to forward? about versus prepaid causing is and that’s going monthly a then rate is

Raymond Winborne

Hey, Ray, one the had to softening key it’s as your of that those similar in and affect both there it back beyond of Jason China term Mark is a deferred. then mentioned change I and that in the drivers FX question,

we’re as we it bookings XX% you So that seen look move looking from growth double-digit at forward. as is where diverging we've it's been slightly coming and longer-term, revenue at on obviously has growth from. And the call that

Jason Helfstein

follow-up a then And then just for Scott.

your think capital spent either spend in higher markets customers organic do expansion be customers from So higher geographic usage increasing existing Thanks. or either is or to of kind ARPU acquired? drive you on company add should the or marketing existing better

Scott Wagner

Jason. Yes. Thanks,

is over who's answer getting around you accreted incremental last an that We’re average profitable. time, we've customer world is obviously, so and fulfill expansion our what name focus that and I the our the it but to coming doing and going customer customer the both good about customers online customer you everywhere suite add purposeful -- of unit still doesn't quite look the a connecting that start is we presence, The right? economics not still an is to the in do chase if actually time phenomenal international to mean full own promise customers. It domain basic we it website, applications needs have other a right growth great continue with how but over have work that. so are and to we’re is the going only up is, we’re about can around build for on to think idea, economic which

answer do be we the also both, the to to within and both going is through continue flow how reason So able to are things through year. about try and P&L to but

Operator

next Your with Morgan Stanley. Brian from question comes Essex

Your now line open. is

Jonathan Lee

for Brian. looks and on is, what This it add business Hi. demand I some it Jonathan how see color that platform? this have the much a plans dig quarter. wanted you what around like to you past you little Can is bit Lee platform for Plasso, may on paying that from in acquired for

Scott Wagner

Thanks for the question Scott.

to do what for what accelerate Plasso not know to who digital of is different space and going allow commerce. us on start So the a up around Plasso in you commerce cases three may use is those it's

and via be downloads digital to is sell platform. first goods GoCentral The the able to

to employees. to a capabilities Plasso paid to deliver customers. our enable who there up is customers own subscriptions, going and GoDaddy to have our have be help audience. unified really the is try packages, extended And to that their somebody able is only enable payment own are the is we’re have to and and Think build for create again, to that of be a customers the may are it second third the be going GoCentral that going for couple going to membership to system, to The again Again about to go focus might of lot a to platform.

asset a of and Although each can described to things be the WordPress. an that plug-in I also

about us. a Plasso team So we’re excited having join

Jonathan Lee

correct? it looks the Appreciate I platform, rebuilding What’s like the the -- mean you’re is color. that

Scott Wagner

on rebuilding platform? sorry, I’m the

Jonathan Lee

have the platform? your to You Plasso on rebuilding platform

Scott Wagner

to It's going GoCentral. integrated just be into

Operator

comes question from with next Thill Your Jefferies. Brent

Your line is open. now

Brent Thill

shorter of the shift what are shorter on just when billing for Ray But about booking a allocation line duration, give from the you has to away just duration, there? think number, the sense us just can you yearly of time customers year been ongoing. what the versus

Raymond Winborne

haven't driving granularity the we Brian, it, it’s of in of the you gotten into you a level you if Hey, disclosures lot at particularly GoCentral of when look look that's that and well. at but mix more organization using a those a WordPress heavier and monthly are growing piece as product in the products of our we’re monthly are lot the ways as and mix products different Care becoming product a then of

are starting past pull to to Some customer multiyear again in, those those we’re of back in experience. the and

Brent Thill

biggest go you FX three think of headwind a the would biggest had to among the quarter, is -- of that that one this if kind those focus Okay, kind you a I causes this there's on to allocate was you three cite? lot that factors, metric if is headwind

Raymond Winborne

the one one. term was in got you’ve the was China and list. the slowdown number And other X then then almost FX your a your is point in

Brent Thill

-- happening execution versus from that’s perspective? In your China believe macro you on side there's don’t more the that’s any anything

Raymond Winborne

it's like feel what issue GoDaddy seen. specific we’ve from doesn't it Yes a

Operator

next Pfau question Blair. The comes William from with Matt

is now open. line Your

Matthew Pfau

you can you on like if also for it Just seemed to last like there progressing I want room had and there? provide sounded had acquisition an up well. planned know update there HEG but follow was as as quarter, you improvement been

So Thanks. maybe business? just an update on that

Scott Wagner

a and Matt. were continuing a platform was with Well integrated is on. we and work where it think -- were portfolio to particularly going I we global were work, into single that we Thanks, product do the the happy

the will the product progress, priorities deployed good on kind -- plan, moving platform the hit metrics across several but that next portfolio integrated there it single probably along. again, quarters, around two still work and all can are it. global with managing and its that basic it's it's so we’re last to two Care all again, model And do So world. an And for of a be we’re then is

Operator

question comes with SunTrust. Naved Your Khan next from

now Your is line open.

Naved Khan

I had a couple.

So the line $XX first was booking your with kind Main a maybe it. kind million of the had Street I to guided This think you just expectation? -- run you contribution on revenue maybe acquisition. of quarter Was Hub in rate. on the XX% quarter and

did not we to about kind of How way You a $XX it the going think should have you is about quarter any contribution the guidance on about forward that? until And think bookings. still right million relaunch it?

Raymond Winborne

Yes. exactly It’s it's on what run should be annual called true in million on Ray, quarter you that’s quarter. $XX rate both those it, and progress anything an a be and seeing we first we the before the in call dilutive basis comments thinking 'XX about run of but mentioned coming out and are of rate. And in we're to business that start we the as it's the Scott going see integrate to as good EBITDA

Naved Khan

a product. Main the Street Same A - contribution revenue, this more monthly from Wagner Scott of as bookings any Hub? is on And

Naved Khan

Got it.

keeping now Okay. versus a open the follow-up look might optionality spite of quick last what Any then And still updates of like buyback. was on front. on I M&A the pipeline the you're the quarter? in announced sort just I guess that had

Raymond Winborne

are I can are available but target there any assets them. if we assume wouldn’t specific comment at you on out looking there

still strong So it's pipeline. a

Scott Wagner

for look platforms largest that specific to and broader and scope can organizations, there to world is the judicious and Yes, we build priority to expand get and how have opportunity operating customers their it's thought do do us to position a judicious to what both but geographic so to that. value products started, just Scott, additional is would around integrate creates up the to given a and going world to hopefully we be at basis. in ideas buybacks in a continue on our not right the again the it for and for that’s our Obviously we that this way businesses will and we our and certainly them the also to now and and not small context, opportunities think just we going for if one our only that’s be add ability the prudent state-of-the-world are deliver of

Operator

Your Mahaney next question Capital with comes from Market. RBC Mark

is line Your open.

Mark Mahaney

the at synergies you early about with last two GoCentral talk like that rates, AWS? Scott on continued for all just You adoption about and quantify quarters then any solid GoCentral in deck comments could ramp the

Scott Wagner

Mark. Thanks,

In is shows slower annualized and hosting variety in within and growing billion growing, that $X basis GoCentral, and that but obviously be an our much a year which terms on up applications going are present so of line, so GoCentral is this a quicker. hosted of growing there are to about GoCentral

live into Amazon of and fantastic work two-thirds products as the We’re just not in for continuing code the so using GoDaddy's breaking example of with a out AWS On cycles again the on terms cut Amazon we've two for the that's ecosystem own difference applications in our well. between the deploying things split. lead quick by of speed times AWS, into environment amount the different product but our and that's and for product by we’re into of terms two-thirds couple to as time our a debt

Raymond Winborne

really the doing it's think full the a development be workloads, when Mark the heavier getting effort we’re velocity multiyear cloud, of to about realizing Hey, development where right point, Scott’s you transition the and and to product that's application the the now ease. what into going we're is

Operator

May Your Citi. with next comes from question Mark

Your line open. is

Mark May

us shown are can A of it’s that advertising you improvement is like revenue remind factors I'm are order and what get recently of extend XX% had to in just paybacks are you've of and are? terms I couple shorter how sure main the nice possibly guess bit some then XX% you that you willing I'm of And continued short-term please. maybe marketing show and like be in quickly than you’ve growing you're but a much what in if trying marketing nice expense maybe for to or more -- probably test these something margins just the and think down into markets improvements you've couple some how leverage acceptable, of of lean a to than at secondly driving test so faster now little you those there that what the kind On to wonder gross I do sustainable payback periods are would to a established even the market your business sense margins? or quote

Raymond Winborne

start towards levels XX% being as after will bit I Ray, a as at quarter continues marketing. Gross It’s the past shift equal relatively All for gross questions. ticked margin up take Scott let said the flat in we’ve going drift little the then we’re I Great the business call margin year. to of with last this that move but model software do it down up, to and margin take the different higher I’d investments. off you there on we always this based and as P&L will up still caution because to accretion in the see that products not

Scott Wagner

and and grow for and revenue is we’re we aggregate way everybody can Scott, on the return continue fantastic to I would like marketing we to thanks into this framing than the would it marketing, Mark. will faster head grow to I and Yes, one like marketing that second next as marketing on take that on where really our places year looking I think call at spend. grow two mean on spend how as is marketing appreciates we our We

really really quarter XXXX company customers and in something a out kind our we’re accordingly, still growth public think dollars the reinvestment that last that's how nature the you up investment return been look at that customer within it items they marketing a two to again before. top-line The something attractive to there LTV we’ve seeing which still And have and first this gross where the putting which marketing, how scale is there of into bottom-line. over relative to and nice and years at if results marketing dollars business several accrete and our base, the at attractive of we’re conversation actually is franchise looking franchise. that really into both back spent for is managing accretion and our the Again, in is the much to the different addressing the into nice going grow really in adds our new I P&L margin retention were how on signs to and last made as going and these and quarter's we've around which line again economics questions, part pulling of is really the is quarter back of the

I our are going think to boy looking can a going go-to-market we’re spend up. we will test, little lean going that the next pick that as skis, learn we’re head into things find on. go enough we again work idea again, it. for get when we’re we harder? But that we’re that economic into and year But to to forward we Yes the not philosophy we it

Operator

comes question next Your Josey from Ron JMP. with

Your line open. now is

David Scharf

Ron. on is David This Hi. for

can us you Just GoDaddy the wondering Street on if an Main give update integration from Hub lead of perspective?

Scott Wagner

introduction experience. the and Hey, of to we're really GoDaddy David early-stages that what known Street really the process in and as expected that product -- that of of taking in have like Main social and a and our were and seeing and would journey altogether and a the the in as and really we wild, rapid have nice as that's and we’re it's on work which building, social building base expect thing sales system the productivity that delivery world the difference if making to introducing media, absolutely around into in know take because the to website market still and customer fact. one returns It we in and the going seeing for both maintenance what to basically but and now Scott. reputation do across it of the media we’re that And management opposed return service is we we’re offer fantastic is kind it’s Hub seeing both base we’re delivery

Operator

Your from Auty Sterling comes next question JPMorgan. with

Sterling Auty

with the in much or but in and duration? is that’s impact to couple couple my some average certain out term from a the made, quantify just so wondering comments the quarters had see how of we've of length length further I the you left, over impossible, term probably years last what's where what more could way of So know shifts focus has of and been we

Raymond Winborne

make lot therefore don’t growth days, right. size year-over-year the experience our improving months what Yes, rate. it by term down of shortening but and occurred on This of taken are these doing has matters reasons It’s it to days customer base, a you I a wanted Hey, now we've days we're we've like Sterling. time apply is and for retention sound or Ray. quarters, when you over to different a and to talking are that back the what been about is

Sterling Auty

in of revenue be range, business growth one talked be follow-up growth. the any terms multiple so application, color item Okay, you of of and but into about kind in line to domain seem may terms of times just XX%, good the tailing that

just terms versus OXXX wondering seeing growth of you're other what contributions So there? in

Raymond Winborne

and Ray item growth and a or quarter now to a really continue revenue we again the coming not will million continue this growth OXXX $XXX it’s see with as but and on see this Hey, at over just growth. customer pleased Xx drilling good out a a we to here quarter line on XX%, line add year we items penetration productivity of to Xx units. products In long-term in

been happy seen. we’ve we've very So what with

Operator

comes question Riley FBR. Sumeet B. next Sinha Your with from

Your line is open.

Lee Krowl

filling Krowl Lee actually in for is This guys. Hey, Sumeet.

remarks. question a of talked on Just merchandising you something I internationally. touching prepared mean you kind about in tactics mentioned quick guys your

has of against estimated suite Just on tests maybe a not perhaps changed products do it's about internationally the there? these that more out competitive whether you talk more a to and front, or difficult little can landscape competitive maybe

Raymond Winborne

test on some the we it’s where do Lee, get impacts something we from US of Ray. we particularly in standpoint. because the merchandising it's so see markets the don't smaller purpose tactics absolutely that you when Hey, a is No, is competitive these fragmented outside it

Scott Wagner

services geographies At for about platforms in a only standing of while that and Asia, presence sort there's but it in open they both in of business our And is you taking think substantively love think how about don't role growth just media more play there's about we to differently different and certainly a anything Yes, in entering of but web, and a think a thinking us. social looks one adoption relate how world. if to obviously that not the have has terms the all Asia-Pacific just broadly, the companies. little country-by-country I think point and Asia, around different. that growing you of been if nicely continues we happening, the companies this and mean to for dynamics fragmented offer different I traditional what array share and world from audience that web I

offer or at So I has either nothing necessarily dynamic that level, the of changed terms a macro there's global set. competitive would just in say the

Lee Krowl

Got remind it. impact just Etsy, like are integration the to a and potential then convenience with And just things for maybe there it be fundamental third the Yelp that? set opportunity what just feature can like there me to is parties forward? a implications more Is you and revenue going of or on customers a the

Scott Wagner

the to actually more and you where which subscription in somebody’s to and and to major selling and is big release there and well if both offering offer of membership eBay the we’re different to other ideas then Well growing think really our portions commerce, shopping or of do majority on that's and service that it's in against opportunities starting we’re shoulder goods take obviously us right its control commerce, is syndicate our is nicely again which to small business sort at both of the that, physical for that about do and of a small store just cart your from vast booking have way something place and a a to again and of which is it relatively thrown ways really their with one product Etsy billing in to vertical things platform up today the product inventory there's web customers that’s within and Amazon, today traffic are which we or own. even a two the And it opportunity the is commerce to build open and is GoCentral we is small terms of that big inventory, GoCentral's and e-commerce commerce, marketplaces. one

we again it that the needs us really think is of So that’s customers have. small today, the for but addressing most

Operator

next from The Jaffray. Michael Olson Piper from question

line open. Your is

Michael Olson

thanks. Hey,

out change? created market Just China do mentioned a going bit we’re you think that’s or if competition mostly market, any you any the some as broadly of way? of countries, in since it wondering kind what may is of potential fragmented regions or near-term on particular opportunity little then characteristics international, material a on sort And call impact mentioned be there would specific overall to just is you but in other it, having while you model are that for softening, the

Raymond Winborne

lot to the start year. again it Scott’s would off going growing it’s of -- we China like call was faster it to look but behind point what's Ray, It GoDaddy, and does it’s if Mike just very I will I a in know I it’s specific nicely. don’t still in macro with first haven't anything half seen out the

Scott Wagner

I obviously we’re years, we five that customer there's the adds has an to around nothing the if up algorithm last call obviously the has big evolution Europe, profile into mean, Asia markets whole different bunch to standpoint years. And relative been in back there's Pac, concentration a out. there. customer for and make-ups we've growth, a been with the really solidly in And of countries up mid-teens. over has which of world picking But that's last been adds a from the growth different that internationally on the several customer kind of

Operator

from question from Barclays. Mathivanan next Deepak comes Your

open. Your line is

Deepak Mathivanan

questions. Two

of driver? is adjustments US currencies business big FX is have impact on trends, the what in made Because know that in the reflect versus is we registry the The know the for that how expect the on you price impact passed what one, cost even in through pricing the side? potentially recent to the then you would starting consumers, expect local I something XXXX, past international second increases should gross margins past dollars? I first, announcement tried something in sites And dollar is that to you from .com registry .com or you the US bigger

Scott Wagner

it’s Scott, to talk VeriSign Deepak, I'll the situation. Hey,

aren't value turning passed has price the been increase the VeriSign software end from XXXX the that amount relationship XXXX took authorization the .com around and and .com a raise today the industry able VeriSign as amount actually providing you name that and taking something it cares by starting the since pointed more NTIA to X% a in and of somebody domain time is of modestly and about. importantly that bringing the registry out somebody's into price registrant, last received valuable .com through aware be life those we’re a $X.XX to to that around For Deepak who the in which is as that to

their And people so and what to idea great provide value just do focused the around serve you in in on with way with real name a continuing name. we’re but the not the

Raymond Winborne

Yes, Deepak, it’s Ray.

dollar. see slight And So to when to into look bookings when currencies, are a and with currencies turned it's -- for the it XX% we attempt do the truth is in you your global headwind at, at look our address when pricing. of you US us local currency in roughly we fluctuations point

usually dollar-for-dollar not in a cases that able to lag. is most and do are You there

pretty the there dramatic So we've And talking short-term. since impacts the a currency. summer in of things it's change you then start about some the some late some Turkey, seen in we examples currencies see the of in when as Brazil,

with you able price that adjustments. are to capture not going to So

Operator

Lloyd next Your Bank. with question Deutsche from Walmsley comes

is line open. Your

Lloyd Walmsley

at and When adjacencies, over bucket Hub of should or of focus? focus term? the on so intermediate products over think potential expect at should of specifically kind what products in kind or about that kind of opportunity year core interesting is organically or through M&A where see we we most next and to potential how relative newer Street do look you GoCentral Main then And the the either near the adjacencies, terms you then adjacencies of potential

Scott Wagner

Scott. is this Lloyd, Hey,

question. about three talk the I'll things around think I

open call is platforms. I’d social ongoing The the different evolution of what the to first the web

also different at platforms. get by the you if both requires open an platform GoCentral and be be ours. getting into and social new Hub Google is that through not an both customers entrepreneur about get which an a priority actually event so And a it is to found you only and business, That of organization, be it intersect media idea and certainly an Main integrated that with that's could to a media could but end the an web, but it audience an idea, content a a could now customer an site at level is Street how complexity social think position but with in existing to huge position

The marketing, second marketing just to is it more off hanging not invoicing, products but applications taking but talking actually email bookings, marketing. publishing adding that is and about about be a website engagement what And into turning really like used you're either more just delivered a is really activities or which through publishing publishing standalone, not value platform platform. whole right? That

level is idea creating our customer voice pinpoint at effective that in customers ways. with ways our interact messaging which and other both and we’ve actually and again talked about is what The their big audience can before,

capabilities of that all our to voice via that have and group there's call can in messaging enable end text customers. add sorts water and it our We and you toe SmartLine, the ways

products GoDaddy but think are platforms real so some And if we those can provide the we’re customers unique that help one that with just not jobs two people. our technology ways about and is obviously hands-on of for the with people doing with for also

around the touch so we time but get provide ramped frankly don't our to and that a can of people or in of themselves somebody the up experience, care is world is things of a do have unique focus to little again provide case hands-on something one do service. in bit the And our product

not -- that's product it's so se And it's system. a different a engagement new definitely but necessarily per

three be would that the those So highlight. I’d

Operator

Instructions]. [Operator

time. this at questions further no have We

Scott Wagner

a Great. Thanks, listening and Take questions. we everybody. to Thanks in will Thanks talk everybody for care. for quarter. your

Operator

This call. conference concludes today's

disconnect. You may now

GoDaddy (GDDY) 6 Nov 182018 Q3 Earnings call transcript