GDDY - Earnings call transcript Q2 2020

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Operator

Thank you for standing by, and welcome to the GoDaddy Q2 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to Mark Grant, Vice President of Investor Relations. Please go ahead, sir.

Mark Grant

Good afternoon, and thank you for joining us for GoDaddy's Second Quarter 2020 Earnings Call. Aman and Executive Chief Andrew are Chief Ray Operating today Officer; Financial Low me Bhutani, Officer; Chief Winborne, Officer. With Ah Kee, then call Ray open and will some remarks, Aman share up your for and the questions. prepared we'll both net On and results debt. as bookings, non-GAAP such flow, cash GAAP unlevered today's metrics be free operating normalized financial we'll total call, referencing and EBITDA and be we of their or of filed why website use in may our GAAP today's with financial discussion measures Relations reconciliations the release. non-GAAP with posted A and on presentation to non-GAAP measures equivalents Investor X-K to found the financial SEC earnings our our Form investors.godaddy.net at our results, be The desired innovation, of as which include leverage and those the on and recent new expected our discussing ability settlement and statements, COVID-XX to financial and the potential customers tax related our forward-looking of restructuring achieve of product the pandemic today and business, flow and matters our proposed TRAs, acquisitions integrate cash impact of recent introductions employees. considerations related as implications impact we'll include acquisitions synergies, the future to our well to detail uncertainties with risks are are discussed that in statements forward-looking SEC. These in subject filed documents our and the contained Actual those may results differ statements. materially in forward-looking the from these August that events a Any as future today, we by on XXXX, law. X, based information to statements of forward-looking new we as and update statements no make required on are this result assumptions call unless or undertake of obligation Aman. here's that, With

Aman Bhutani

the their Again this as communities. strive of it how both the small to them been from a hear to and entrepreneurs there their worldwide build joining and a acceleration uncertainty global their it We Thank help tools again, the to refashion shift time us vital have in world. thank business around we you, we the them economic today. everyday has for to privilege for in all serve their for website digital millions of businesses and to is of businesses customers. March, Mark, massive and dedicated you reach consider customers them for a help economics Since

a companies many gain want business at today to by level team ways our we the has personal members. of challenges their face I it that are digital restructuring over our GoDaddy are In members, in by benefit all acceleration, As from sales And of to activity I is outbound share. with for unmatched acknowledging current announced excited team operations June, start continued grateful and their am years. GoDaddy part the to difficult the highest, The us environment. our while contribution team. we in of always the

hard have speak results strong Our themselves. adapted QX team landscape. members and are for address quickly changing financial The rapidly the working to for

more results are future. We the our with into importantly, well with position with the pleased to customers grow and our

We in strength I of are our items highlight particular. to business, seeing across want parts X many and

the HEG. trends, were This customer gross record demand GoDaddy strong added delivering of Both growth quarter. marketing. strongest quarter when we in customers. than of rates impacted favorable was adds in with customer these driven including coupled stable positively by retention in investments the and trends by acquired market more surpassed significant XX paying net the XX-year XXX,XXX million from customers, we of In First, aside the our history, milestone QX,

as for returns the will threshold. within to in our invest as We long stay continue marketing

tools, such as value continue to marketing our existing to we video and new and options by Second, create for and bulk products, experiences. security streaming, features adding purchase customers functionality demonstratable

freemium with Websites added lineup. e-commerce a products. QX, to our in for offering freemium we use We Sellbrite customers also made for added experience in QX. it to easier Marketing the experiment our + And We and

position further of a Third, generation. optimize long-term actions and business we for our took a strength growth flow set to from decisive cash of

in restructured as to due return to motion become U.S. sales fully profile liquidity its our COVID-XX. both unsustainable we And invest an TRA had our and while As sales June, settled preserving further going team ability outbound attractive the forward. our at mentioned, today, we

Lastly, we will closed his space. the Neustar's remarks. and happy vertical more are topics in of on unlocking provide look registry the on we acquisition to business, integration that in announce we through to forward these details domain have value Ray

sentence. quarter new that us how becoming million second and GoDaddy Let's XX XXX% dig Xs company customers public X just value over demonstrates much and of in customers. has into ago. growth net to growing for year-over-year fantastic Xs customer creating paying of since a getting It Wow, XXXX, Lots years customers. grown

we nearly In seeing new added rapid to years, million those attract fact, and a short continues GoDaddy those ecosystem customers. customers at are X real to X pace, the value. customers in

and high continually are the of Our products consistently to stable, an value services and serve. we small the retention to criticality rates businesses our ongoing and the testament both

continue their in recent the be purchasers, We Domains green the In our and strength We added for team. capabilities the we together name and new ideas. GoDaddy of Uniregistry customers and Corporate GoDaddy first to functionality the their best-in-class leader phase sales teams forming deals greatest the bulk where together. brought global signed months, business,

transactions. Domains sales, reasons more this How is our And online than primary more see double to add-on see of domain the continue business now and segment growth. matters you strength a growing before. ever shows than to up continue also industry aftermarket one We domain in the

allow entrepreneurs and the build $XXX the phases ventures. their and our + love everyday where its Managed most within phase grow billion are growth WordPress we how Websites While TAM the outsized create pursue billion green about to we TAM, with in us $X Marketing excited

growing more recurring with And and Websites commerce. let us. In in features QX, quickly quarter-over-quarter over accelerated especially Our almost and last marketing to the continue Marketing months, our adds that year-over-year. more XX% XX% to common in this, with annualized + want do even commerce grew in accomplish year-over-year. Marketing The them approximately of customers net invest Websites our we tier few XX% revenue will + tier product functionality and for

tier enhanced are historical a everyday for Marketing adoption tier our part for $XX per XX% With at commerce Marketing subscribers get month, of of bigger it commerce strong the [indiscernible]. the including In new opting + e-mail. Websites a of and tools making rate, entrepreneurs our double selling, + set their Websites is ventures nearly online. delivery fact, of X listings simple, easy-to-use platform engine that best-in-class tools year on posting to with of and with Bundled options optimization, unlimited build for search Google, branded local fee integrations

hundreds Care all guidance included. our All of dollars with of by backed that worth award-winning our delivered XX/X Guides

content pieces their of them GoDaddy That more more That The engaging with doubled than exported. with content beautiful, created and customers, at In The with X.X engaging is million growth of XX quarter-over-quarter million users also offering accelerated. do our that. Over heart every the doubled year-over-year. than were of alone, For just user June marketing. lets Over pace month.

full is WordPress. Websites only both We Marketing. excited create the strength in whose captive CMS functionality GoDaddy embedded in to are and company very the and + get grow transcends

nearly available WordPress we into the quickly and themes to our As bring in a ease-of-use Already, the top are are largest for for strong showing WordPress new the in There are WordPress to risen Go excited our WordPress, X,XXX efforts results. X. global ecosystem. WordPress Theme capabilities improving host, champion and has

growth see for the of Managed great is to product. source to open community we WordPress the proud invest are and be in We continue WordPress in us part to the continued encouragement

or our find adopting with well. also additional the means in frequently customers. We year-over-year, e-mail for phone brick-and-mortar as have inbound thrive to customers changing driving and in This relied circumstances to of growth interactions many reaccelerate means With way as back themselves entrepreneurs to yet saw which of can Business customers storefronts customers Many to closed, the their Applications help XX% our communicate with to that stores engage an in-person our calls while as business customers goes growth on is them. another those everyday GoDaddy branded been their today.

second of a for the a demand and on sets Our year. environment value us strong customer adding in well powered rest focus the up strong quarter

profitable revenue, for in billion unlevered and Ray. the in here's free to confident With to XXXX. organically X-X-X poised flow cash hit long our continue for are $X.X We our that, goal, in ability in billion growth sustainable, term be $X

Raymond Winborne

was and the XX% over QX points Aman for model. the customer in both a touch from we've I'll top million, the results headwind, results year quarter through durability the also a Aman. on for clip well, success of subscription currency churn continued the provide came of better-than-expected currency. and us in on XXX metric in $XXX growing at mentioned basis seen proof with very and rates performed beyond. and up with flat year. renewals, currency at reflected financial what great for the a constant QX to points GoDaddy the for Thanks, full seeing business growing XX% U.S. outlook setting resiliency but constant and we're revenue to Total the as growth, and our business key customer basis, globally remainder of strength every bottom, then international on

constant Business grew aftermarket categories, Looking which we product the solutions. reflects with Hosting the across we Business impacted offering incredible the Presence QX. introduced geographies. on businesses strength GoDaddy presence was This product, down with positioned slightly to of The COVID-XX. points domain-based and broad-based an about e-commerce + capture by in growth online X%. Domains XX% year-over-year along and in response productivity headwinds higher towards the as products to their strength of Inside we in at rising X.X Aman COVID Websites registrations, quarter, million, renewals lines. finally, also Total Gross establishing shift models, new grew on pandemic. as solutions margin mix in higher-priced XX% subscriptions response early growth + Marketing as the to currency Applications well on that, deaccelerated we line sequentially bookings the demand demand product terrific XX% headwinds. We saw our Websites a talked item saw was our and basis, a And sales. and Applications seen in and Domains e-mail adapted to earlier. delivered we've were growth from option Marketing, for $XXX XX% to on in currency freemium And disproportionately roughly social was

started Leverage approximately in The points million in that offset of marketing the we G&A X and in care of ramp the to scale turn, margin the year-over-year product in G&A For discretionary in gross we expenses. half benefit delivered We margin, to and of mix operating the with modeling from year. both EBITDA X second the sum by expansion were points similar investment resulted year. lower second over look or anticipate $XXX normalized in net of continuing slightly and approximately to quarter. the leverage in QX purposes, last

to and flow. cash XX% Moving million, nearly flow was unlevered growing the and free XX about $XXX year-over-year. XX-month free flow business. size of scale year-over-year cash margin cash was quarter $XXX up unlevered million, Unlevered with for cash Trailing both this bps illustrating the margin XX%, topped free flow

which impacted charge had financial the million a as take hit specific million, in transition ultimately QX. a QX. our we recorded restructuring remainder $XX the will a outbound received with other Now while accepted million value the moment I of None June. at of QX, impacts discuss want in those team XXX of was of announced dollar approximately of a combined roles. members charge We $XX package the team to to in the sales $XX to end recorded U.S. restructuring

our also We cash outlays approximately to from will can our flow in And leased marketing $XX other be reallocate go-to-market in impairment savings full guide, space year you excluded to million see future recognized assets. metric. and of an the right-to-use charge unlevered as of cash result, we activities. these for Austin, plan of restructuring Actual a the free presentations office exited

no we as preliminary sheet. balance business, billion. closed until we on Neustar's the at We our in week, the to customer end significant and the accounting rebranded this with We liquidity adjustment basis, range. $X.X Xx GoDaddy the of journey. we million leverage deferred acquisition trailing maturities phase third completed in And chain balance, of We've due to our the completed registry team of $XXX look acquisition the QX a the year. debt total extend announced the in XXXX. this and the to Net debt to the minimal the contribute Nicolai to purchase work of $X.X billion forward value nearly we of finished on Registry about targeted Earlier have low XXXX. XX-month landed and magnitude net welcoming Now revenue previously cash revenue dream expect or

year. to $XX million flow this estimate at contributions Our than cash less for the of unlevered free remains

announced new midpoint settle fueled to payment TRAs, a at at cash of strong in of is recurring outcome because, great roughly of eliminating a and This this rates, targeted opportunities about our the the we percentage current the and fund the like payments flexibility net sheet. a strength debt. this tax combination fund The and and TRA our balance greater, $XXX GoDaddy. it's Xx, As transaction the business Post billion the transaction, terrific the reached the on leverage create much arise, an enhancing $X.X with with feel execute agreement We attractive million. business, pursue has a our leverage while to transaction our to liquidity X advantage implied ample onetime of future actual strategy by of and us today, for value cash for savings points; and go hand shareholders. rates likely leaving unique model priorities. long-term for up that rate of tax allocation returns. believe borrowing return we our future, capital so cost two, resilience take further our have stated when in We'll we will And our be range will one, exceeds

X and get economics of free last we're by GoDaddy for the a XX%; X reflect more in value XXXX. good been want the value, proof unlevered by has impressive And QX outcomes: XXXX, approximately The in positioned XXX%. take we've business. of revenue moment the growth increased cash sharing Quite in outlook, well increased since than QX IPO being that next focus stewards since the creating of of over our creation Before progress to financial XXX%; I our the have customers statistics. we've points has the customer Pretty years and to simply, we flow I made the increased years. on and

turn allocators prudent in the be of approximately share. quarter, third pursuit let's flow to continue our of for expect revenue cash long-term outlook or the to levered year. the XX% $XXX per will We and growth of we and full that, growth capital total million free QX In With year-over-year.

relied motion Hosting the expect line. should disproportionately Presence in the on Business double-digit products GoDaddy Domains, outbound in Social and For mid-single-digit QX, you growth Applications. in high-teens and calling growth growth Hosting like Remember, Presence those impact that and

For range with On expect bookings growth. expect are free reinvested restructuring revenue from as XX%, in XXXX revenue to savings by year, the $XXX X million, outpacing approximately the growth we drive full about growth of to a million to unlevered point. of long-term $XXX we cash flow, go-to-market land

marketing us back environment numbers and demand forward in As and in you the see you delever to merits the the investment incremental of QX can XXXX. current should expect guidance, the in and so dev tech half

$XX we're an gain ongoing million playing offense industry highly to a commerce. been have in GoDaddy flow reminder, to acceleration cash would anomalous unlevered In share QX shift XXth higher. continues an has an without as a period, experiencing online free and As which guide our secular pay closing,

open flow up our to more Q&A. And predictable are us and turn the create significant for years take and for of for Aman we confident our allow strong We customers, than opportunities will I'll before come. back employees, that to advantage shareholders ever communities it value now to call cash and

Aman Bhutani

since company about seen base first their year, everyday and I you, mission of talked unprecedented in Thank It that love has fallen and year call. story. many been In to deeply my Ray. an the the risen X has have to I employee that challenges. entrepreneurs have cares earnings GoDaddy with

no inspired I uncertainty crystal still is path am is ahead us, by ball, front opportunity a and the While one in and has our of there forward clear.

turn, Our continued to success development in everyday thrive sell drives world-class on customer our online. of focus That, entrepreneurs products. empowers and

We that getting have incredible brand only an is stronger.

the be stewards prudent GoDaddy resilient, We years for a organically will inorganically significant and we GoDaddy success to continue amazing and story. that an recurring to generates, is cash pursuing of come. have business growth model,

customers. feel TAM have started. questions. we're XX I and Operator, up for $XXX just of the like paying We open let's million call And billion a getting

Mark Grant

please? Operator, question, the we have can first

Operator

[Operator Instructions].

question Barclays. Our Mathivanan comes from from Deepak

Deepak Mathivanan

I on to a wanted of about quarter. a things. Congrats good ask Great. couple

some can you Marketing to is on that of you last then is color say you're I tailwinds e-commerce Domains? question and we you on Websites said, and each And know of do-it-for-me that on from some net Obviously, how give growth the customer Presence. give much the of The nice you're e-commerce you much is attribute Hosting and of us the also adds first overall that XXX,XXX the on-ramp can growth the strong. the correctly? would also confidence size the about + is and can profile second some also products? But cleanup. it's then of by offering the impacted on Xx the then was so this So websites. inside coming color And social can like And the nearly and seeing? bucket think year. How But seeing X%. very it's

Aman Bhutani

of And Thanks, in acceleration. seeing you products, all Ray that about WordPress So Domains. excited want the the it's as the We're Websites Deepak. saw of about We growth spend demand apps take bring that. grow I we're see, in and the growth saw customers take first can This a continue improve take excited is seeing + us, continue growth to biz value to the to the we for the everyday rate, quarter We part, and Aman. product do not healthy products you second. or question? and the on -- the across We're and to Ray, categories. and about sort function basis. customer at our We're Managed all environment can other. and marketing Marketing, growth really our the across probably one and product it's the a right?

Raymond Winborne

only thing might may Deepak, have heard it. I you The tack reference Aman to on to that,

excited of Websites is ARR. That we're adoption that even see the and the within and XX% mix about + more a excited could We you the adoption. in in are seeing super growth Marketing, growth year-over-year growth about rate, fantastic SKUs so

So takes, XX% nice taking uptake folks SKU now. we've I in of think, e-commerce a let's that SKU seen say,

product. So in really we've excited progress the about that there seen

Deepak Mathivanan

How can XQ quantified is that. the the for I I for should impact know if much on I restructuring think XQ? you revenues? previously, mean, the that on follow-up Ray, about from Okay. just say How efforts XQ. it would you we

Raymond Winborne

if think the as saw in XQ guidance year about the for into impact rest year, you well. Yes, second and baked of rest headwinds of the of it's quarter, the the the you that the

Operator

And question Blair. Pfau from William from comes our Matthew next

Matthew Pfau

Just are of performing And longer thoughts the ones? you've term, that products offers discuss your it you're offering providing and that using additional the what on for Maybe then hit expanding business. wanted been just relative those you on to been terms in conversion. both expectations, how interest have on to premium or can both existing two the strategy for your perhaps the the websites

Aman Bhutani

The performing, the in in and to continue about try registered Thanks, come excited product conversion to how freemium and both it's Yes. of terms in, Matt. seeing. we and attracting quarter a we're the is rates offering be users

in and it. drive so continue our to And improvements it's we meeting expectations,

use products. more our we of our that as more be able really to model, and feel a terms need people In customers to freemium

Sellbrite, to added get allows model businesses products us out offering that to there. that freemium we connect of successful way. of there out for is their and a the you So platforms one a the things allows many quarter that in which And micro product this freemium is to do the small saw large the

about in that really talk not we more the And in does that for it's we're number. is That using XX one that mind include products. last a customers. talking million more keep we're So freemium model thing customers to and when about customers, paying

Andrew Low Ah Kee

seeing And I'll in their Andrew. based other what we've one early. obviously, to into we're Matt, convictions marketing. tack leaning on on lean just got mentioned we're thing. into it's Ray the marketing

So...

Matthew Pfau

Got it.

the follow-up. the that business. what websites growth Just able one visibility But quarters, in get seeing based [Technical quick you you're Difficulty] those terms will that are of of on any idea of your into the the future in about be? in good in help you conversion predictability users the of of what And perhaps some freemium visibility to business? how does terms

Aman Bhutani

Yes.

the early continue to quarter sort I be think meet we'll up. a quarters, I the clearer indications, said, our over of a cohorts have to definitely cohorts to idea We're perform. Early quarterly bit few only those expectations. it's how next of too still, set a able like they in. But

excited continue So to to move on we're forward it.

Operator

question JMP. next our from And Josey comes Ron from

Ronald Josey

and adoption, just growth that talking freemium, et you off acceleration of we're cetera. digital, the about call subscriber in Aman, massive started the seeing e-commerce your numbers,

to do of get in take want of in importance about coming you are know, million there? talked digital freemium of this like, to and wanted XX are -- GoDaddy the think Just on, your subs transformation the we importance just we is and and shift you digital think we do you where on freemium where just but -- of to on your adoption thoughts more overall I where with curious where

Aman Bhutani

COVID-XX where adopting think people digital. I not point Yes. the of that pushed inertia they a number were past has of do

pull is to way TAM. the forward say that Another

just they choice we go because years. them. to offerings customers with and line, growth with seeing we're create at us, but We're huge. for is players into a hesitated last to This have attention TAM that people though phase want start when come so as it's in when seeing with the a to people do with And at online, and X do at see look positioned doing I phase, dream even phase, leader in no digital billion, I And we're it put the more the So and well. the on really experimenting over look well ideas. talked we commerce the have GoDaddy of us, think to so we're space like I And they look now and their feel many $XXX past. I had I people support When about tools GoDaddy, you businesses, script the the want in to good more X, back marketing in do there.

the expect we improve in role more play GoDaddy we the offerings, there related to to moving our that name get a those those forward. significant more So out offerings, I very

Operator

comes And from Jones question Nick our Citi. from next

Nicholas Jones

I two. guess just

advertising First on strategic the of kind acquisitions. market think do you kind How view today about helpful. about do lower kind you from feel the mean, we then how you the Are there environment? I that feel aggressive? of and would do today of the, of will And be able kind multiples? advertising. investment kind thoughts how color And to stand second given Any today? last guess, How in question would pipeline of I any be long where customer of window? you CPM acquisition increasing the you're kind more be on and

Aman Bhutani

Yes.

and talking the As months, Neustar about excited few in just you about quite over today know, the closing acquisition we've space active last super that. been

at. we're customers extends to brand we for course, And And are are customers GoDaddy and continue healthy. And what pipeline for broadly add which to they opportunities, our part the to to there's be Our get value lens continues a things looking offer speaking, become and healthy customers. ecosystem. to value pipeline. that to nonlinear we value, able can of kind valuations look That's But opportunities of the our are. of looking be where

And customer just a is customers. and but that In acquisition, of big went costs our from intent acquisition CPMs, the customer year-over-year. down that terms is part quarter-over-quarter and part of demand actually of

we'll as long as So within meets look we as share our demand, marketing, our taking it is this commitment invest to looking continue that thresholds. forward, at in demand this

Operator

from comes Brent Our next Jefferies. from question Thill

Brent Thill

Apps And then the and the the you seeing of And -- where a to you look are gaining Business any -- seems at been set Ray, saw are strength I for in the the things companies awareness? curious on maybe you the how high continued for have best we you better you have of cover finding tail-off? pretty you about sugar check at July And opportunity massive. if ahead, how reaccelerate. look areas can you commenting Aman, I'm are How just there August. month nice QX? see still Or when quarter. it the end curious I'm and comments exited that you was adoption?

Aman Bhutani

Yes.

awareness to the channels, is for apps, there come improve, to that our product of friction activation, just continually through of the the of business but fulfillment. site marketing in people reduce friction or terms really On focus sort really, terms when of not our teams the the in

So that product. quickly. to They're very value that customer adds very, step a get really into able

been of those quarters value. some And the over we've efforts few that started making last has to show

the where clearly, than for of been attention all a Apps And e-mail more many through where likely environment to part telling of their coming the we've it and customers their have customers Business contact a of overall avenues for that for turn address. the and on. here is Now to in looking of get your micro see I'll years telling the reacceleration you you COVID, in them think things customers, looking thinking that. e-mail, to like are reach that regular if use And been to multiples sort Ray we are we businesses, And our about acceleration they're customers, time sort we've so small businesses that July them. branded

Raymond Winborne

so good Brent, trends. Yes.

progression, As increase the it up we quarter, through continued nice June. right was look toward

we're strongest seen April I the And should Andrew July what That business. was our seeing was call XX cohort saying back last May give that better. maybe then no April think the June of on was was you then, in we've better. if that pointed in sense cohort. slowdown I years. the it -- out the some it in saw recall we

Operator

Li And our RBC. from from next question Jian comes

Jian Li

Mark for quarter. Jian on And congrats the Mahaney.

that answer, macro alleviated? into have just you given into and accelerating maybe of assuming are macro baking into full see piggybacking in kind that just trend seeing guide and July, getting QX thoughts therefore, baking on seeing you kind on higher QX that? you're the in will your user from what that And want So right growth? and the you what of terms now -- price year be that's the are if assumptions you more in And assumptions any new last your the just that. you're are better H&P thinking to I'm in QX given pressure QX, I of

Raymond Winborne

Ray. one. reflects it play we now. in trajectory. right Look, guide. or aggressive I'll there's trying it, right what of take a know conservative just sense at overly that We're of uncertainties we the see call It's It not being lot our to Yes. now like and

we're the stats metrics is insight the giving, gets about more, do a to strive don't continue. plus the seeing. of be perfect back half long we In the look at the that's strength pre-COVID going we Keep minus. demand been If on at We're to year QX and from some what some it's of or great. how talked little tougher it better have Aman does into we're guide every number. mind, comps. acceleration what the environment, But happening, you year-over-year guide day. in But going imply the obviously always to or see

Jian Li

the at potential should how early I accretion And we I opportunity on days, follow-up about a may, know the looked if the Great. And kind you the but margin Neustar? term, of medium acquisition. size think maybe of it's have Neustar from there?

Aman Bhutani

Yes.

think we we're it, days of closing upon I in. just a couple just coming --

seen a about medium-term create we're lot offerings the being Suffice pace to talking for So It and years. opportunity don't able to about bit the for to Neustar. customers business excited at the new for on to Domains vertically registry of us super we think scale that a opens return early has within many experiment too space. integrate it's to a say, be

we're so. the going lot about opportunity be or after. over more it And the to next that's talk able So we'll quarter a

Operator

question Arounian next our And Ygal Wedbush comes Securities. from from

Ygal Arounian

I Ron's to differently quarter. for runway XXX,XXX customers to new about of want maybe ask net slightly to question presence sort and pull forward the and of the need increased how relative this think digital

new off a a time little the customers kind and a is bit trying at of number that of questions Is new And to what that when question, look a going too restructuring investors run then more be a for inbound mix bit? second exactly customers back of or team expect continue sales held to new forward, how As we team. we the was terms about to Are ARPU? you level? coming at outbound the understand being forward. we from the little to announced without Just from frame discussion new rate growth the for guys this around in lot of should customers think the versus sales that

Was continuing So what help related we're of can what GoDaddy productivity it And clarify sure same to team work are to to the in from sales all team outbound help from the you as sales investors at Social? make and time, home? then the was. terms you just understand seeing inbound

Aman Bhutani

around Yes. that Maybe three to outbound parts jump second ARPU; If sales. growth; Ray question: the third of I I'll breakdown first, started net subscribers versus in. and got sort get Andrew customer revenue around can around and and

XXX,XXX of the environment we has quarter we're ever see growth, function super you best the obviously, It's if that a And the really take It's number. something HEG customer our that work demand about and the On GoDaddy doing. massive. excited it's acquisition. is been out the net

of you you net that milestone, growth, was time, milestone looking this basis. of that big don't such a things terms would know, sort over especially we And customer with on happening but to the we do forward, it see that the in business. felt given data In you help we share a guide as

continue think many for ARPU, subscribers I would is ARPU see business that In stable years. demonstrated that, has versus this the But healthy continue terms to I see we of large. growth growth that say, subscriber the Obviously, breakdown to very mix. of we

really together, that's been good. So that's --

sales a of particular I'll on outbound discussed, very outbound our the But It Andrew to a terms significantly. more to detail is over it honed it sales years. we as bit motion. over And motion, turn COVID-XX did impact In was it. the share

Andrew Low Ah Kee

Yes.

all team care a know, right? That selling, or motion inbound motion. Our a outbound motion as discretionary whether you uniquely small was operations. outbound an portion was one, We in a in call. outbound sales take our a The one, customer's of of inbound we an history, overall got

to answer us. they We call obligation the when have an phone

ahead, Ray investment, and made challenges the we as it us that that to discretionary And expected side, looked reallocate that On that's marketing we and at sense a we mentioned, thing. what motion into facing activities. as the were outbound for other productivity stop

As focused we focused of on range yes, services. a they and products they team, outbound -- but and that social, on other higher-end

the other On a hit side, there. with productivity, respect took to obviously we

of around we it. mentioned. they digital those chat, the to environment. level embedded seeing have Increasingly, we've engagement in behavior fore about gone in importantly, As you around We've with choose Day, improving consumer of as into of see steady the care. which the current we've productivity it's change to continuous modes engage we're guide the we talked And seen we've Investor come our how expect we past, COVID channels, Ray terms that in with shared in to seen different but through progress some really asynchronous this of other and

Operator

Lloyd our Bank. And next from Deutsche Walmsley comes from question

Lloyd Walmsley

there if where for working you something with think deal Websites kind Marketing, should talk of movement guys of guys part acceleration? some kind And of maybe services. flag a if side your improve unlock Is are that either there lot, on the product together, new First, add AWS, of secondly, announced future? Wondering the been selling of you was any like of a GoDaddy can there's feel key you growth or about that AWS any or we when relationship. in would you it TAM product holes a meaningful you +

Aman Bhutani

about we're phase And that areas marketing for and think X talked the investing Marketing the in about, what squarely customers. they're our + and Websites are grow we opportunities, When in we And messaging, bit commerce. quickly. the give + it very a includes Marketing and Marketing right? marketing To Over includes when into content. acquisition, we're did very, we you Websites bringing flavor,

in So are similarly, And our all we well. know, the reaching Websites all as customers. micro and customers Over we marketing this to a Those well. space as in commerce their is And more are use we're year as to core a that functionality the very quickly. And has, + Marketing big engagement very, customers of offering really them have the businesses capabilities going have great that great feature all commerce. part for more adding of base commerce us, our the functionality features it

milestones good item. of a there. In terms in of But of of of relatively GoDaddy progress revenues, great AWS, the our in had in the total terms continues small. relationship size in our overall, small be we've We what a it do example But revenues to partner. for it's some big think can -- it's a sort

Operator

And from our today Naved question from final Khan comes SunTrust Robinson.

Naved Khan

versus renamed couple other it some just of have around the had -- improved. persists. Securities, might -- for been assume ago? Truist have still becoming to offering I onboarding We've kind the it new the addition freemium talked of indicate in your Curious aftermarket. product, of In The questions. I maybe + name. change a customer customer new of that source that know Is with about But the Domains so more a you question acquisition Websites was had the update, guys April And if had the weakness to the it's results the Marketing year your Is it revamp acquisition. meaningful. fair of ramps and just in

Aman Bhutani

thanks Yes, for question. Naved, your

Domains double seeing secondary XX% aftermarket, you much like the growing primary, segment the great us, that faster that for or industry. we're growing at we know, of sales. traction Overall, in On as business said, than

a of revenue that. different different excited some Marketing healthy the overall, And massive had, super future. than right? XX on in with results Websites + And to in for means it the customer unit and the see Website there. very LTV segment We happy And that did experiences in somewhere us. Super ARR we're basis, we happy growth it's continue by that in customer But Marketing, to with all, of basis. of what we're seeing. right? weakness drives the the terms number a countries are talked it about overall. -- XX% in We in there The freemium about So for says on a LTV, + pockets April, that XXx order Domains business just

for that really that gaining in being good space, a big space being has been in share So in space us. that player and

Operator

today. And for CEO, that turn our back closing call questions to remarks. I'll concludes Aman Bhutani, now the over

Aman Bhutani

Thank big the all you, team and quarter, to forward a members GoDaddy to talking world the for look quarter. next joining call all great thank today. and all you thanks you for A over on to

Operator

concludes this today's you conference participating. call. Thank for And

You may now disconnect.

GoDaddy (GDDY) 5 Aug 202020 Q2 Earnings call transcript