GDDY - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Mark Grant

Good afternoon and thank you for joining us for GoDaddy’s Third Quarter 2020 Earnings Call. I’m Mark Grant, Vice President of Investor Relations. With me today are Aman Bhutani, Chief Executive Officer and Ray Winborne, Chief Financial Officer.

Following prepared remarks, we’ll open up the call for your questions. [Operator Instructions] On today’s call, we’ll be referencing both GAAP and non-GAAP financial results and operating metrics such as total bookings, unlevered free cash flow, normalized EBITDA, net debt, gross and merchandize volume and annualized recurring revenue. posted we financial financial equivalents on measures found the why of and may our of Relations earnings in non-GAAP Investor release. with our to presentation with Form discussion X-K use investors.godaddy.net the measures non-GAAP reconciliations be website filed A at our SEC or today’s to their GAAP integrate product COVID-XX The acquisitions impact our our future to include those matters we’ll related synergies, integrations, desired be achieve of our partner discussing results, and today customers introductions new as include ability the innovation, and employees. to forward-looking pandemic statements, which as business, and financial well on the risks detail forward-looking are filed SEC. documents These that are the and in subject our discussed in to with statements uncertainties the Actual results forward-looking may differ materially in contained statements. from those this result we are to or of new on we forward-looking as assumptions XXXX, a that obligation future undertake unless November by no on as of Any today, statements statements law. based X, update required information events these and call make Aman. With that, here’s

Aman Bhutani

Thank for you, the record thank a us. joining on details to for quarter I’m all excited Today, share Mark GoDaddy. you and

Before nearly leadership Andrew effective company. Ah we announce our want I leaving Kee, is Operating a after team. decade Chief Officer with November Low to change XX, get GoDaddy though, a started, our to the

more all of organized on needs today him a transition, and leaders and priorities. backfill seamless over next will new strategic few leadership wish allow as this we but with great COO customers strategy grow new tenured dream. adventure, adjustments, full partner for few part GoDaddy make our that can As we building a our both every stand have dream, entrepreneurs for to to the He a passion including days. with focused which key for a deep against start deliver And friend, his the grateful role. will our not and We a leaders bench, I of of the grows significant I’m so the will be stay executing announced day our and in strategy, years. create company and in place, This colleague with will best a trust contributions over complement his was on we that the today. and With then the and we

We are pleased and areas. I highlight key today, with our like would progress, three to

execution strategy few a strong notable our First, with milestones. against our

third, customer are Second, In in our And QX online presence customers over including seeing net commerce we continued customer new once marketing capture solutions, improved was again, seeing progress while also growth momentum our and leaning sustained retention. into investment XXX,XXX of added quarter in record into to we demand. October. continued capabilities. another QX,

demand online has our marketing continue XX% by average solutions traffic We of with to an for increased website the due coupled spend higher and since year-over-year April. pandemic see to increased

We increased and plus well websites creation over as and tools have seen adoption as marketing platform, content manage of commerce our website celebrate. and our WordPress

of nearly growing subscription business, insight share revenue than of this over XX% solution for approximately accounts $XXX an annualized an million XX% QX to more year-over-year. As year-over-year. reached X.X in we of together at that This products the are this million growing additional into group part now recurring excited

growing email. customers all, at to million applications pace. product focusing commerce. on annualized our Best has the by healthy These reinforce grow seats points continue nine with year-over-year. of our these Sellbrite’s line Additionally, an we milestone marketing of accelerate phase surpassing the more GMV platforms, GMV now Sellbrite this and through of of at driving saw GoDaddy $X.X quarter continue scale Business for transacting XX% than of customers, as third nearly the to million a in growth a quarter, between plus acceleration growth of in websites strategy billion three proof numbers nearly

While resting not on we’re laurels. our areas, growth the we’re key pleased these with in

facilitate efforts product marketing increasing profitable long-term our growth. We’re and enhancements driving to

charge opportunities to continue towards We the massive and commerce. of creation content

yet This can leases as an customers a In up recently business shoppable acquisition. for plus internally deeper commerce thinking software quarter, posts create set both on integration well both with and this deep partnerships, marketing we through platforms our and automatic their developed between important sell GoDaddy products. partnership Facebook easily to we integrations, now Facebook’s as Instagram shops with customers channel extension websites offering announced another accomplish

marketing new partnership preview more also delivering experience product header released giving and the Over the app our their new to intuitive We’ve seamlessly a full app schedule XX to a this to acquisition, making the across a customers even also a set internally, customers XX% plus launch tools. continued powerful integration insert as for of with website. to driven short languages, including it our accelerate within our busy has creative in months with quarter. upload Additionally, customers easier into to video businesses velocity Over We’ve their Vimeo growth videos, of in websites market posts. We extended content. This access few allows using a over

the content released single GoDaddy their social connected metrics each composer and across customers social What’s view more dashboard in giving social platform. a post platforms. websites marketing, track a place can of to powerful create performance polished posts by and users rapidly Additionally, plus media social schedule

launched these one GoDaddy Peru, markets. time to commerce, and has and e-commerce We also Chile in customers most store customers a template in template theme by our websites page our XX%. popular introduced publish quickly serve Argentina, for reduced on plus online positioning Colombia, which has become in our simple Continuing it to of capabilities marketing, and we intuitive the

WooCommerce the In welcome we to out domain masking for furthers continue to our to services nearly innovate acquisition for who feature This to and a free WordPress product revamp and payments, box rolled in file professionals our new customers. rich succeed security protections. entrepreneurs memberships, leading web is high performance build. domains super and search XX are and stores commitment QX, also global, with domain with team We and introduced that with quick WooCommerce extensions, tools is help we’re marketing paid investors developer. and upload And email online a excited spanning SkyVerge greater SkyVerge

in Lastly, as marketing for talked as delever about see to plan continue QX, on long our to we we investments. returns our

use these and pleased succeed. focus we While quarter become this the we’ve today. delivered In about and for marketing another investment cohort focus total customer are see, as to talked record tools and increased, easy alongside something on we’ve also size. the areas, commerce in where has a is more product particularly we’re to pronounced marketing build to everyday simple it’s great entrepreneurs coupled ads gains significantly Obviously, need enhancements with closing, strong Online both our XXXX. helping quite

a We elevated of execution adoption powered demand solid seeing environment, succeed, in tools, third are new giving these us rapid customers an more quarter. opportunity the help strong to

sustainable, in are poised ability With long-term our We XXXX. XXX that, to confident our and here’s growth, we for Ray. profitable target continue hit be to in

Ray Winborne

growth margin strong relative year-over-year growth in rates due broad-based in performance and resiliency, for the of negligible. total the June. contrast, creation offerings our and bookings to growing also Business XX% to I’ll We’ve demand year-over-year increasing new to was inside continued positioned highlighted domains reflects our and the customer continued subscription and and proof Aman QX. as hit applications Aman. for transformation. product thanks, product email rates, XX% strength another durability to strength and record registrations, revenue bookings of tremendous In products productivity top-line We it well Hey, and branded year-over-year important currency also bookings, product fastest in customer continue website records. they’re aftermarket impacts experience product us rates force and a outbound quarter And touch quarter sales and products to social their growth came reflected with negligible. across on Presence in XX% and all across comprising customer grew what new future business to Hosting our QX outlook bookings while to on delivered low solutions. GoDaddy was in the elimination expansion, geographies platforms. growth. and acceleration at digital GoDaddy contributor our sales. X%. that, to currency were capture reaccelerated were our of million board line renewal finally, model. the grew renewals from growth rising the brand across while strong in the XX% was and business. headwind Total as financial at continue while an million across $XXX a in impacts businesses a small provide the three $XXX Total then churn points results, growing great international categories accelerated growth

basis margin an a scale advantage. care discretionary establishing was and now a expansion reduced It’s XX% in came businesses operating in also and while as the at small stakes. table many For benefit from presence we a June lower continued both actions as year-over-year. G&A point seen costs gross expenses. restructuring once to XX leverage competitive online delivered quarter,

We’ve metrics. channels, second quarter over increase highlighted break while invest marketing as and long stepped we we’re costs within million saw EBITDA to even our margin and target resulting been performance up we to we to investment approximately even resulted our marketing in of year-over-year return points call, $XXX marketing as and or acquisition net $XX expense. capture the QX, investment two in last year. customer sum as million to remaining advertising demand As on the in meeting normalized our increased in of a in our able elevate competition we’ll in months continue expansion market

cash this flow, XX% XX% unlevered to million margin a quarter growing expansion over $XXX trailing the cash with illustrating business. was Moving flow point. both month margin $XXX over XX was of for cash flow the and and of scale free topped size free year-over-year million, unlevered

to total finished at net an the times with times stands no of $XXX million a We BB balance cash about leverage able the we basis. net capitalize liquidity this billion. and for of all-in debt XXXX. middle targeted That’s significant have a of issuing maturities a over to company. or yield to on $XXX with seven-year rated three X.X%. two on of until XX-month conditions, billion debt four range Now, $X.X $X.X in favorable term were sheet. new loan and QX market we record million, on A with trailing our issuance,

If you strategy execute more ability priorities. allocation and stated leaves the fund have our than capital to pursue this to ample our liquidity business, the deleverage,

a increases corporate have immediate on to not impact any Now, moment GoDaddy’s I to will potential take tax reiterate cash flow. rate an want that to the

cash however would of enhance to rate corporate As the operating we taxes TRA. reminder, tax of before the net XXXX, recent pay U.S. expect position, loss value given settlement a don’t a higher the our

associated balance savings us X% fueled strong priorities sheet including acquisitions, The allocation enabled to over has the tax example, future the repurchasing, across outstanding further returns enhancing the recurring TRA our strong on equity attributes million, with of settling the capital to execute by our our For resilience model rate and completing and already has XX% a a increases nearly four in the $XXX and business TRA. XXXX, settlement. of strength

We in arises capital outlook. of have long-term turn continue and opportunities the leverage allocators and will that of to QX flexibility let’s take our share. cash With growth to pursuit flow advantage that, per of free be to proven

of year-over-year. revenue or XX% expect approximately total growth $XXX We million,

on like double-digit cash million, single-digit the relied expect XXXX motion approximately growth the the in Applications. Remember and line. range. in Hosting at we expect of growth previous should our guidance $XXX You and high-teens products and unlevered disproportionately mid outbound impact Hosting midpoint Presence land calling free on social those Presence, GoDaddy flow, Business growth domains, that to in

a definitely trend anomalous accelerating In without a stay. As been migration has XXth here and cash is would digital flow year, unlevered our $XX highly approximately closing, period to million it’s QX which guide reminder, this free have pay higher. an

software with approaching their Our known the million annual needs well-positioned industry that’s now meet as GoDaddy at content has enabling business been to tools, globe as revenue. they leader growth $XXX with profitable a and commerce, is subscription entrepreneurs to the of creation, websites, an long around scale, recurring set ideas of bring life online. in

cash We’re for the been from ever as we’ll that significant have team, Christie to call with Masoner grow, open flow. generate confident Investor that, as Relations can we our continue questions. take, we’ve up and share,

Christie Masoner

[Operator Jason Oppenheimer Instructions] Company. ahead. first of and Please line the question from Ray. comes Thanks, Helfstein go at Our

Jason Helfstein

Thank you.

Are we XXX,XXX ARR you And just sizing over can you noticed quarter. XXX,XXX to the churn? ARR year appreciate to you that customer If in that or kind relative you secondly, to divide the today in comment e-commerce same So, nets ago, – think how third seeing ads then the million $XXX gross comment about into the on if think second then And compared we about net the it’s churn? about quarter to the we adds higher when way a a versus Thanks. Can X%. this? bookings. bookings, Is e-commerce, related million gross – bookings? reasonable $XXX business gross of or

Aman Bhutani

at we record nets Hey, for Jason. Thanks This represents organic question. is the for look it quarter, up Aman. that GoDaddy. When third growth

happy terms We’re be be stable to And the as at we prepared churn in September really with better. and said, like slightly they to in really here some remarks, as with well. of we line QX, well progress continue in did and look rates, year-over-year October our of continued

something they’re everyday with then I’ll to innovate on Ray start are for question truly roadblocks, Just a your to little maybe, turn going and color the and it get And creative, entrepreneurs they to and they back customers if the they our hit more else and on million. bit second $XXX it. that idea the

Ray Winborne

it’s Jason. booking. apples-to-apples, is Ray, Hey, ARR obviously, with not

cash products relatively from growing levels. booking’s those it’s a seeing we’re versus similar happy there but with revenue, really what from So, we’re at perspective,

Christie Masoner

the comes Citibank. of from Jones from Our Please ahead. next Nick line question go

Nick Jones

kind with you Could and like these on options seeing talked touch press prevent these the Vimeo, SkyVerge? release today, and Thanks. integrations over Instagram, it’s deck I integrate getting of you by, Great. about of I versus of how integrations, Thanks. like things I the as or subs on follow-up is of funnel Facebook, products what then the some you’re do great subs the the how from that impact for kind that. SkyVerge, all by you are guess that whether does uses introducing? you the you guess guess confused all that in

Aman Bhutani

then and specific I’ll take on And touch look from examples briefly Yes. let’s the we previous quarters. how SkyVerge the funnel. at

bringing customers, + into sort was wanted like experiences those family best-in-class over, products GoDaddy in building bringing take the to and mainstream in to And Marketing. we them Uniregistry Websites to experience from our were for goal then want bring that the teams Our bring experiences that we companies, of amazing experiences.

integration, when it’s right we the So, talk about new all now. very over

there. the So, what it’s it’s getting driving and putting we’re less of it’s about about we’re functionality what more from level out subscriptions engagement

which customers through customers are of people moving For experience and you can right on way to in And add products. Vimeo sort core and to customer tiers, pricing SkyVerge capabilities, don’t mind same It’s for sort these content just experience there increase actions slightly, in was that using really the create experience on such, customers can a experience will introduce in simple clutter sense; thing they these It’s where the for that’s are at as coming step as of the use It that value. the example, into in terms value of customer XX% new we right experience, funnel. us, have with And value. our will now, just shows best and add to it’s intuitive over the they commerce in the posts, they they using into place, funnel place, keep by just this not just the over-integration, right of shareholder same be it the first it’s experience. things early we way. taking part place. WordPress and building sort plug-ins. continue buying in for terms content in the or at it’s WooCommerce with in these people formula, media, become customers SkyVerge, immediate the as these time, but – And posting is social the simple turn and as are of creation core value want to our the on the the touch XX right. others pieces the it. freemium a managed product, creating in shows customer the of the but of focused we it the or from well. their And any right up customer by space We a these WooCommerce completely well, it super is formula expect fantastic

because on functionality we In people anything, and layer as can provided part use that feel as fact, use it capability as product. they package, they’ve more more freemium – the if product, more we the encourages to of the and part of got it

Nick Jones

Great. you. Thank

Christie Masoner

from go line question next of Our Ron, please securities. JMP from Ron Josey ahead. the comes

Ron Josey

the new subs with out you Websites sort you with have you. growing follow-up to approach that, the the – can you then talk just we’re to a these growing a how guys you just which freemium maybe needed these just you with and Sellbrite, do you do muted. to that think business the advantage hear the to for you just quarter, I about the Aman, XX% talked in billion talk seeing about this on growth integrations can you going, and are and I’m of Marketing or think in metrics. talk quarter complexion freemium Hopefully, details Facebook on wanted two fully have new fully commerce you in think take also as with the opportunity great – in about, approach to into GMV that and Thank the quarters me. additional but integrated subs $X.X of advantage I changed still + talk tools and platform. about of the what thank you’re commerce now GMV a fully take has specifically are record

Aman Bhutani

at piece merchants that color, super-excited and when the product customers part you growth, question. sort is yet fantastic, out question, our quickly, at look think I it’s It’s sub’s on of customers that’s Marketing. U.S. growing, for and and really, word the business mentioned, XX% out? they quarters Ron. we’re not Sellbrite. I’m the given getting really we’re that is yes, using into rolling about I second get of right. confidence how and + the what but the every in Websites an are same are are a in sales the to place seeing part freemium Happy as the that we’re we but just on And hands do of that, because a part can we’re try means we’re of The well, $XXX and growth Yes. focused our customers on of seeing, exact it’s your way, and is website couple freemium example, by that on about Sellbrite. percent piece just you of product the the quickly And more, using, million it. that are of first the said, us what to blanking in the we Thanks in it’s done the GMV into. it’s more we enough providing I’m the doing that’s really XX% the as the Sellbrite time. the going the XXX% we’re path,

Ray Winborne

customer not freemium. one Ray. Those want point our And are include Ron, does paid within subscriptions. to it’s I that, only clarify count number, on

that organic record subscriptions, is freemium. paid not So growth for

Aman Bhutani

+ And million The sort that that managed what numbers doesn’t also I’ll $X.X in our you WordPress. driving what is products, Sellbrite are core subscriptions. and subscriptions Sellbrite. in hit our fixed use of those say, is Marketing me for growth the then believe part that gave the or question, we gaps, for offering right. to over of commerce the And offering. we the and And Websites of to of clarify we Those over include Yes. customers back a suite asked ton that core platform. as around

go is So as of about we way fantastic certain sort add and customers, say, the capability already. have after operations in to that and capability, the really are of a we offer sort think or we and put of grow build thing customers The set as and to serve well we to of place, what’s going it then buy that’s possible. feature order of I that way set. as next more really cover more let’s an simple it that’s need And needs a it that in to to customers that

Ron Josey

All you. right. Thank

Christie Masoner

line ahead. go please of your Ygal securities. line. Our mute next Arounian question comes Ygal, Wedbush please from from Ygal, the

Ygal Arounian

Okay. Can you now? me hear

Christie Masoner

can. We

Ygal Arounian

right. Great. Thanks. All

where I you’re one And So, as competitive couple in to wanted related kind there. across space ask everything of a feature growing, pretty space. a doing of big picture about you’re the lot, and questions, it’s doing commerce to a that obviously,

always have guys micro as on viewed You yourselves that focused businesses.

and SMBs, the which think, of do down in towards think in here, is you kind but general exposed hard So, maybe of market, still a investors in GoDaddy’s e-commerce change Sellbrite just a for we of focused the and and Facebook business XQ, And Instagram. were micro-SMB? think businesses related your that businesses specifically? and yourself philosophy I to about think what SMBs, in terms when integration saw terms that’s SkyVerge overall shutting getting customer guys applications that XX%. any you’re people something, into from then of playing see in does who time it health. of is? doing and still to new have are, target in over COVID you over your really that that, risk I and the lot very you some of up go-to-market

maybe, space more entrepreneurs happening confidence Aman, businesses, anything, that you typical that you in reopening, than seeing and opening closing extra within Is lot and confidence, too. or shutting environment environments. Thanks. and a down, what there’s gives and that seeing less are there that gives you’re on you but overall So, you touched

Aman Bhutani

Thanks, Yes. Ygal.

XX% to what on and SMB the commerce step great numbers, some turn we sort with the this see target commerce, part then GoDaddy a and we’re seeing I go, product customers, the people is customer that on want of ago a websites, of exposure customers relationships from pieces going address take can you too. customers up by our what question, plus and take in or touch there micro-SMB it back coming Ray tier. the and of in me that Let for the and are up offering space If we you. from have I with saying, want are a commerce marketing of GoDaddy. shared for themselves two signing or These that saying, people signing the We us and quarter then

it So, to Every space people there’s focused because we will is the a we on see And serve, customers to is let’s things. the and those you of right. click them target what are to difference again, online GoDaddy my we’re and future, my view that one micro so offering customer. meet do started say, opportunity much look do the that transact, just is That’s early space previously a they competitive a churn are really to This this micro little an lot at people business bit is I’ll us, and that about steady segment to it’s for want click a and Ray to to is for maybe, view signals And That’s want that. and the the in see everyday I’ll still that going when between is micro the needs. and rates in stuff, the we’re as terms to simpler their define the way the talk deeper, right a this couldn’t. point with an to going scale like, entrepreneur business have of that turn best is no how allow in we we relationship creativity businesses, on just just is it in and is that them into we there the to more to that there of such that? find have exposure, going online, right. micro be people how going business. to be And

Ray Winborne

our call, of the that of core point, to competence is model. on but our knocked last very a nature this things when in your a I of Yes. of lot is lot they Ygal they to employees know, right. from the up. down, A mentioned coming get one a couple five And the solopreneur, backed it’s maybe, point get recurring out cases. customer business

the providing them for service $XX, been customer of it’s primary reasons plus It’s gosh, now. a so valuable month. $XX tools We’re XX all the retention them. It’s need they strong rates. through incredibly our And one years for an

I think about to have exposure as folks small consistently what’s entrepreneurs, wrong volatile gotten businesses. to are it small These be necessarily businesses. not perceived

when a up stable. been XX renewal the for roughly hit the fails, evenly on in and pick holding. the Aman one next natural over idea. they’ve the XXXX, So, they very seven for rates, year are renewal half and The months spread flow months event is into us pandemic renewal rates

the market. the despite us in uncertainty confidence instilling it’s in So,

Ygal Arounian

much, so Thanks very Great. helpful.

Christie Masoner

the please line Brent, Thill from go ahead. of from question next Jefferies. comes Brent Our

Brent Thill

you comp, bookings. a attached. had Thanks. with e-comm of all I I and XX% XX% Ray, business ops, guess, talk more tougher the know

that. not quarter, one you kind direction. to I of you directionally, but takes, a in would little know you’re in maybe, see I than some and on and seeing, thought going in, all it’s just comment can I’m think the puts curious it acceleration right if the what seems like flow you’re more heading

Ray Winborne

lift Brent. tough comp, last Yes, recall point of abuse. bookings was credit and there to over was related year a a your card Obviously, really

roughly new mean, the hammered base, remember year-over-year. ads. that it would in So, we growth, to XX% I to one, noise, at new that are bookings small are view the Aman is it’s net bookings cleaner seeing I the of which closer customer look as comments, a historic beyond opening But I think growth in relative XX%.

for see growth. that market. So, you’re there demand inflection is And not offerings strong going for future our immediately, in the super-critical we’re to but

that investing We’re to our while maintain threshold. maintaining

the new we’re and growing is results pour very us very, seeing So, that strong, on of you marketing. saw the

Brent Thill

And colorful in you’ve fairly been past calls.

evenly what’s based? start quarter, throughout the Just fairly this it was current quarter? on as How the was and it any at into the linearity you would linearity, looking been happening describe to, color Thanks, the quarter of the it or again. steady relates inside of improvements there was just quarter

Ray Winborne

I these Yes, record in would growth are I I our what some I now. and the still historic but see seasonality, would think mean, spectacular. are we’re rates that hit are midsummer. waning looking still right growth the we growth some at peak say but is you, demand market, we’re these The tell rates starting to rates,

Brent Thill

Thanks. Great.

Ray Winborne

guy a what we out QX. we see from Bottom for standpoint that line, the put reflects trajectory

Christie Masoner

Matt question Pfau comes of from Blair. ahead. next line from Our the go William please Matt,

Matt Pfau

guys taking a for quarter. Hey, great and my thanks questions,

guidance. wanted ask Just to on the

So, of a expected bit flow expectation expectation previous the cash of middle full-year to from in sort up the free be range. prior revenue your and

related spend that? So, e-commerce Or faster then going and about you’re on the from is there this what your that you, business? think into is the impact else continue on component growing and continuing gross seeing and of marketing websites, to as margins a lean do How we liking to on something to margin? gross increased be

Aman Bhutani

as by invest business. the again, we’re long thought was marketing talked QX We now We’ll of honestly, line gross the back we invested we’re cost consolidating the and cash you’re relief into does at on about the include board. past what acceleration acquisition benefit see the there impacts in across happy revenue lean down from as safe margins, what paid salaries though, that in there true. Any forward right. continue maintain going perspective in flow, we’re both the margins, this quarter final domain on and on Matt, a Yes. gross right. We QX consistently messaged growth, putting us as external we’ve in GoDaddy glad mid-XXs. an fourth messaged We’ve party. in seeing remains weighed don’t registry, top the seeing eliminating out noticing we an by formally that we’re in and there My that COVID with Yes, the a costs with in no upside benefits staying for to modeling, the to to forget, keep lot right. quarter. we the we’re you’re returns.

want we that put the centric into these into more move maintain offerings, on and margin, continuing to we pricing. to are but As higher software we’re more flexibility those bundle

your mid-XXs So, place I good think it’s is models. for a still

Matt Pfau

Thanks, Appreciate guys. Great. it.

Christie Masoner

from from comes Mark, Mark go please the RBC next ahead. question of Capital Markets. line Our Mahaney

Mark Mahaney

reengage and think customers and you’re very Have what and on and those during had in lax Okay. bit pre-COVID color in customers success good demand to Two channels. better in marketing you you. there of seeing but those be the of of platform must be to assume other you some to from become had past? the the past. ROI more was pull has back that then and probably being the a ROI with there middle about this out for kind terms different Thank that there getting in some to about, back talk really much are related elevated solutions, able that are verticals. you’re lax of I you is them the the digital of of question norms, ROI questions. – had success customers marketing, lot to time on the for GoDaddy? those presence that a in of talking more channels One, go as year, kind GoDaddy that And with to and I working than one marketing the just the back a any were

Aman Bhutani

Mark. Thank you,

we’re your brand numbers on strength me, we core the people Regarding side to the the the direction. marketing continue consideration, continue heading first metrics awareness and like historically see for something part right performance seeing, of we in return see sort on the have we we has measure, and of as brand like question [indiscernible] which to good cost

to Our as continues show performance marketing well. strength

per bit. You’re right, cost have up differences gone that quarter a some impressions in and were there the

sort overall seeing a cost the business seeing. as per still quarter super is And for of a as, This cohorts. biggest cohort really, whole. is XX% history, than valuable cohort. cohort. It’s company’s the every big the which every as it year. quarter, other third as good it’s been impression the what or a It’s mentioned, amazing. we And in have more not the result, We big really had – increase We’re we valuable in we’re cohort we’re has growing

lot after go our we ventures us even lapsed customers and about, stay the terms of In talked customers, their with away. of as a

it’s but new, during So to we of system not happens that. there’s mention COVID, about some – wants of not Ray but to already, special within see if that in I’ll our he aware turn to changing terms of that I’m it anything something

Ray Winborne

the as Yes. Mark, is as base let still new me before The the that. growth in high year-over-year. existing on pull a to solid relative certainly trend little finer the but point we’re seeing customers, purchases growth COVID in new year-over-year not from

the as So, and spiked definitely, well base. demand existing

Mark Mahaney

much. very you Thank Okay.

Christie Masoner

Rosenblatt please Our Mark, Zgutowicz Mark, of unmute next question Securities. from line line. from please the ahead. go your comes Mark

Mark Zgutowicz

a was of and questions asked, A the about so the model now, what if know Sorry necessary? what of got just a also And out curious it’s greater this that. seeing. a I dynamics a, of terms guess, against months, your in cops on over pricing as W sort one next the but of future. revenue And about, played you that. mix Appreciate freemium you’re you is heading just read XX there guess side question just in there the call unit + your is that of component then M is I already pricing comps be will, necessarily on things. of sort pricing I just was little greater is that late, on sort couple summer will + I been on if W equation. that how apologize trajectory of obviously is I of the I required Thanks. think the on the a second a – in has conversion quarters trajectory, next the and initially thoughts couple M

Aman Bhutani

Thanks Mark.

has us, and and freemium see number yes, our that happy on the of we confidence a sort experiment early On specific we will us them things we’ll path it’s we able freemium more want cohorts. to forward better product, is confidence more This still about there we’re quarters more with optimize we’re talk in, over the roll and better of more those be freemium the at given the of experiment. piece, and on the It’s to or to the that generally metrics couple are and freemium. continue – out But the given us to the for more features get and customers over including in using converting that to time. time. usage better and products, The a be

don’t turn into can terms do, need we year commentary wants if what to or but pricing there going here. in pricing actions the he we that in to of In to there’s see I comment – Ray, think what terms of it include I’ll next might much be and some to

Ray Winborne

The customers around this since a I Mark, if there’s well has you as hit. volume, tiers those mix as growth unit that Yes, look think in of higher COVID quarter mix. of at the we products, disclosures at both been percentage the made coming favorable positive

as helping months. comments what the well, yes, that’s no next XX So specific around in but, will look that back comments

Mark Zgutowicz

great. Thanks Okay, guys.

Christie Masoner

Our from next line of go comes from Barclays. the question Mathivanan please Deepak ahead. Deepak,

Deepak Mathivanan

Hey you me? hear guys, can

Christie Masoner

can. we Yes,

Deepak Mathivanan

Great. Two questions.

and are the other expect of a fulfillment, of initiatives, What’s the like, to are additional in and areas said, in are and also the book customers partnerships revenues. quality a art out, more last, pretty big higher seeing term for nicely integrations. can provide a related the recent you of a three, that then customer peers is first side, four modernization you’ve nice where have renewable you of How to compared what second cohorts, in features some on the the e-commerce given the particularly seen over should months products cohorts? and lot much we improved buying? is, of lot Thanks. your little typical the potentially customer? to but product the done payments that question lot they color bit on harder it’s And generate some parse So your some also the When base, like shipping, areas on us the a obviously

Aman Bhutani

and the take first can second. take I’ll Ray Yes, the

On tier by much Marketing the faster going the commerce is Marketing itself e-commerce overall. side, and growing amazingly well + than Websites + Websites is

So, we the were improved We’ve product. improved. yes,

good Good from We there. in continue demand to results and there. we’re invest seeing it, customers

right? to We monetization options, of terms premium for use [ph], scale, increasing and a now tiers, it great the by making like customers to the the features. use get usage, getting inserting of more for them focus by certain more capabilities have offering is In by increasing now for them by us Deepak, right easier

for And to operations. about it’s but an definitely, the We areas for us, you order customer. are creating that the that talked opportunities surplus future continue be of

the and turn share to you. of future First, I’ll then question. we then to we we it numbers And monetization. scale GMV at for the the look Ray want get options to second with want And the

Ray Winborne

in you the other as over out to size me being long-term couple of that we’ve the the early about last let Obviously, performance, We be to historically the Yes. still, in longer seen that really the we in picked line as recession performance cohort flashed largest perform on period. can talk the over they’re to we’ve great able see right to cohorts. of going with quarters tell cohorts how turned up, seen, be XXXX, a up far

cohorts mix of are we differently, to post-COVID, would out no see point a time. but we’ll One going seeing in heavier thing Marketing these suspect manage over are is have I to any these + cohorts Websites reason for So, WordPress. perform attachment I

Deepak Mathivanan

right, thanks Ray, All thanks Aman.

Christie Masoner

Our next from comes go line Brent, question ahead. Bracelin Sandler. Piper from please the Brent of

Brent Bracelin

of a really this growth, international international provide maybe accelerating color this, countries on, you’re thanks customer drive afternoon. strong little record seeing year, taking the look the is Good here. two, we’ve And could, certainly it Could seeing, customer international from acceleration? more you think how for what just record of much the I have you in question a two at as I appreciate if highest and but particular, you this you’re if growth rate in growth coming growth. it’s quarters seen about the adoption

Ray Winborne

international. its timeframe. started, when spike back was split Yes, demand pretty increasing broad-based, marketing we Brent in May, saw We domestic And right. June that evenly on and stand the

it’s any So, towards the obviously world. going trajectory improvement of is around Nothing incremental spend some there. geo those both one seeing in specific and strong the nice to

Brent Bracelin

kind we kind about assume profile talked we million year-over-year. in on one that of acquisition And How of I just basis? that think there. follow-up, some helpful. business there’s about ARR, an think growing a then as revenue growth $XXX our XX% super I think about should That’s year, quick you’re organic Okay.

just as you about should go kind of we forward? kind So, of think potential, organic how that think about ARR growth

Ray Winborne

an Yes, right? vast organic, majority on of Those ARR both small acquisitions X%. were less than that’s basis,

Brent Bracelin

Okay, encouraging. you. great. Super Thank

Christie Masoner

second. for go I a ahead. Our to have we’re Think comes Naved line to of Truist. please skip Naved, Naved from the you question from – next Khan going

with Our comes Kuntarich. through next Chris Deutsche Bank. from question question the your ahead Chris, go line of please

Chris Kuntarich

you can Hi, hear me?

Christie Masoner

we can. Yes,

Chris Kuntarich

business one customers of talked guys million. about, over apps Great. you three on just milestones, now your Maybe

that’s percentage give mid-teens total take a of or customers. your So roughly

XXXX, I had talked were about you buying customers XX-year think in back hosting. roughly a

So, maybe two questions that. around

in of from still your Thanks. First kind being then purchasing, hosting guys And think apps. to customers about How business that think penetration you a is customers? line your third would customers a of second is with right to the hosting to it. where you more of on opportunity penetration maybe about close the with way

Aman Bhutani

the on percentages And very great see years, talk may but a from generally that We attach and Yes, speaking, product that we with tool the were line reach up sort customers customers in that we in I them it’s set support. growth about product. responses us with were how terms along in service domains And them to terms have customers feel terms for next good business feel have see offering for to appreciative product me are of NPS, we to set. have hard we’re able apps. offering to we able of and of think, for of few best-in-class continue it. great this to really both over We Chris,

of of sort a that some really, way. make up apples other customers if comparisons, you there’s to somewhat ways know, you’d support And then it don’t the our – email know is don’t and don’t what that and Chris, sort and to able they’re but anything intention into use. mind, set kind to themselves I can that a oranges couple customers for my customers add. So else, simple Ray, to easier of of really, invest of know we really innovative being – I I had easier in get with so We’ve it in can continue of

Ray Winborne

you Chris, right? a software the go tool. on that to all WordPress only might commerce market perspective marketing suppose, manage tools product focus That’s products, is put from and and both our that, the is marketing of then with Yes. of now marketing right that I go only top and that in

market. have the quoted back So, focused prominent years hosting less we on We have go we’re on pushing may that to whereas software ago. now more products

Chris Kuntarich

Got Appreciate color. the it.

Ray Winborne

You bet.

Christie Masoner

Our question Glaser ahead. from go next please Drew, JPMorgan. from comes the line of Drew

Drew Glaser

first Sterling. on Drew is this Hey,

So another the question on hosting area.

think given Hosting results and segment in the in that see improved that hit that bottom So could Presence, you positive forward? growth going segment and you do we have guys the in

Ray Winborne

off as a I’m driven that But of we the being Ray. a pressure of the seeing there, software I laugh saw we we’re actions clear think, the far it’s headwinds growth there. lot until seeing and in took will back all June. restructuring the Yes. Drew still improvement, nice as products our Obviously in we

Drew Glaser

business in Okay. seeing that all? it back? Got secondly, that coming to government you applications, some and new so And data. guys a surge we’re your benefiting according then start seeing benefit at could Are it. Or business

Ray Winborne

the in are you, that Yes, company’s the ad I quarter the record seeing we think tells net organic fact we customer demand. had a this history

Drew Glaser

Got it. you. Thank

Christie Masoner

the Khan line ahead. Truist. Naved, Our of go please question Naved from comes next

don’t call over And audio Aman. it we turn I’ll back have to for our Everyone, to from today. joining so apologies. much thank Naved think I you

Aman Bhutani

Christie. you all quarter. say you looking all world Thank GoDaddy for a the a just next thank And we’re employees forward the huge to over much. I’ll strong very Thank to quarter. you,

GoDaddy (GDDY) 4 Nov 202020 Q3 Earnings call transcript