GDDY - Earnings call transcript Q1 2021

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Mark Grant

Good afternoon and thank you for joining us for GoDaddy’s First Quarter 2021 Earnings Call. I’m Mark Grant, Vice President of Investor Relations. With me on the call today are Aman Bhutani, Chief Executive Officer; and Ray Winborne, Chief Financial Officer; as well as Mark McCaffrey, who as we announced today, will be joining as our new Chief Financial Officer in June. All participants are currently in listen-only mode.

Following prepared remarks we will open up the call for your question.

has be be CFO to and answering and while not and June, strategy, skill will any financials, will for Ray all Mark set. Mark starting his until as Aman operations, questions Given regarding himself background made questions related financial bookings, debt, [Operator On unlevered flow, EBITDA, net non-GAAP free gross we’ll operating merchandize metrics both GAAP be cash Instructions] and referencing such and volume. call, and today’s results as total normalized measures of and on equivalents Relations of be posted why financial we the to discussion found investors.godaddy.net presentation our financial measures non-GAAP A filed with non-GAAP reconciliations SEC use the or website X-K at Investor our today’s their with may release. Form to GAAP our in earnings today’s at remarks found prepared website. be also our Relations of now can A Investor copy and forward-looking and be detail matters related innovations, our and future we’ll in The introduction subject discussed to ability results, the filed today our our uncertainties partner SEC. forward-looking to desired to risks that in with discussing and which those are product acquisitions synergies, new These achieve financial statements integrations, are documents include statements, include integrate may differ statements. those contained materially in the forward-looking from results Actual on on obligation and that events required assumptions statements are new or statements of X, information update Any forward-looking by as future as unless May this these we call today, we to make of law. no based XXXX, undertake a result that, With here’s Aman.

Aman Bhutani

Chief the journey. economy day equalizer And that joining new change in all Mark GoDaddy that Michele we making global technological business. and today. promised remain and empower Today, Financial you every Lau that you, Legal them exists radically for to entrepreneurs we Entrepreneurs. us are McCaffrey and emerged internet committed has small and their of in opportunity shift Chief way. the joining as will and more thrilled our Mark, can thank pleased and Officer, also announce as to The vision respectively. are to Thank We greatest support are Everyday Officer favor own GoDaddy their world, the seizing a be to

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Mark McCaffrey

and much was has to on be a meeting of is joining but to the be empowering be this value on to call more businesses part the build and Aman’s what’s I so strategic radically thrilled its this vision, small in change and I’m here to businesses, mission to customers. and accomplished future. an very you to I with next vision look I'm excited what I’m Aman. delivering favor for coming there we’re in incredible about company great the economy of more journey. attracted global the learned of such Thanks, The many months. today. team, in, the leadership I excited about in it. the I small dive going of to GoDaddy more forward to coming wanted history even an anxious to obviously more

Aman Bhutani

Both leadership have Mark. connected fun the you, working with well it very is Mark them. going to be Michele Thank existing and and team with

grateful a Talking of move purpose quickly to our about where fill quickly, are in set moved too. to behind. moving story, attracted are to and and to we candidates the our customers with to quickly position broad large the commitment diverse leaders have true We our and velocity, existing leaving GoDaddy shoes were been the

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year from priority is perspective product this commerce. a top Our

customers explicit more of services, to the online products sell our coming As and we more and those innovating with to are rapidly intent are meet needs.

the we ground February, in hit Poynt of acquisition running. our Following have

market in websites WordPress running a our are in holistic, is for make in marketing We few weeks. And launched launch experience parallel payments to teams solution, to plus getting payments beta seamless coming are payments Everyday our Entrepreneur purpose-built of continuing by true be this a towards GoDaddy year. to omni-commerce while market a significant a the end in goal, progress and functionality for live with

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help from Recently, site customers or millions order we provides new guidance personalized bring to online. working their social Last the bookings percent have best embedded with We appointment to least, customers products which XX% an create publication action. websites increase tool, average been is result? that those and Websites drive marketing and of them of a About Third, Composer, the they GMV XX% an Appointments market and saw service-based per hard we a posts through not Online per and suite have have by and into This a customers, like digital we to capabilities editor. enables directly in accountants, Social on guidance marketing leverages website channels. built rates into media their plus with plus plan our but launched an customers succeed our of unique business increase this The all websites already channels. data Customers with needs. used personal among in site who on their has we guidance grown lot did. social and of their XX%. average that next have action brand composer saw trainers engaged

the and with they We freemium, product out as to with customers dollars possible continue consistently more. want us as get tell marketing customers to many

Pros market efficiently, hosted and GoDaddy will share more Pros. or to Moving platform, is pleased share last we Expand the keep to We clear it. from week, thousands sign up and is developers, done first that scale and had share created absolutely we're best get our early feedback GoDaddy XXXX, to that the ever event and of their bring priority, Expand Pros, community WordPress second We is Pros committed our prefer and together our and tools its and loved them business, happy. help for designers gains. web Pro to clients for to success they WordPress. conference the practices its work Pros

the the We have than rolling public wanted a new ease-of-use globally WordPress starting couple satisfaction We've is WordPress The editor simplicity, that using half editor. level indication early and than are making Pros recent new last customers beta with new first a offer of the launch the optimized building now ever. and the is to new of higher the is nicely releases: users site and users to months. WordPress their editor highlight About of quickly editor, of a out lot for couple over to regular I new in easier of been

Hub. The thousands the Hub of frequently. quarter are talked about launch using and it last Pro it of now second Pros is We and the the using

GoDaddy and over the pros functionality of in And, target for and year. launches initiatives shareholders This week the this the meaningfully customer value and us The equally huge. Our have more enrolled for is many segment is into we putting we're with this value end will for its using Hub important created to opportunity free, XXX,XXX new features for Pros and capabilities. years. We're the that for tap available Pros, market. actively help every is excited the as team place drive by about unique

QX. quarter our you in numbers reward it and started for quarter, our result of products, its customers Moving is and demonstrates accelerated they revenue. engagement showing The we are most on is the high of focusing with in in innovation with with our I GoDaddy for better seeing driving Domains and business even and acceleration us the The opportunities domains a we our mature in the last with customer acceleration higher products, shared customers. up provide exist that in the in velocity function meaningfully when onto last business. needs, It Domains, experimentation

independent with on and will we We for continue by the one on other. a and innovation this to of these drive growth. I experiences bulk is We for them. marketplace of high-teens these that you: innovate Domains Domains, to growth share a day-to-day The levels couple side examples customers searches allowed customers high driven two-sided simplified to in domain the quickly connecting are investors on to Investors That orders. them Domain created wanted do new of experiences for and

domain to could have into they they experiences find aftermarket, As the which right more, investors domains added into inventory for for new their we search name then so pulled independents, the engaged access more and venture.

also loops customer some did weeks and with aftermarket, reverse; us the Registry, bring is in basic spurring that MMX few domain the customers about add bear .design, ago, we experience GoDaddy way that that network activity team and list will an aspirations. Registry our GoDaddy A able The to scale announced for seamless new We're independent effects. deep and into small We models, these such Registry we opportunity make to scale of had Creating to gave XXX,XXX quickly from innovate spur easy testing for to value our that XX the customers is Domain customers. acquisitions, for and types big passive, GoDaddy obvious with accelerate, to including the added our to we been parking was learning every portfolio. TLDs name for efficiencies and a them. sense the of and to the over One reviewing aftermarket, Independent way improvements to be business. custom-built .club, reason domain Investors. names is otherwise their can adding

investment both and Following our while as about new at them from is will that for experiences success, formula foremost, shared closing, giving best partners us we from the GoDaddy. key business gives of we’ve platform us add to third-largest to costs is customers, TLDs value announced, TLDs, our be the us The This and customers. choice world, have in for creating allows high-margin acquisitions low. past, GoDaddy in a while the incremental the cost. near-zero our dollars, first creating keeping In our and for the registry

Thank growth us. to marketing be we last while delivering what With remains to good flow, to value GoDaddy. shareholders. now, on we increase is GoDaddy we healthy cash part inorganic our Ray. you, in Ray our and focused creation but products business muscles and Our driving customer-led for innovation want showed strong model in flexed the and a a our had allowing unlevered from in that long-term quarter, are let's for hear us bookings. constant do to the a of shift a and free customer strong value our yes, invested up, powered acceleration operating about that, software growth, customers key velocity and will our customers, to by his more yes, with quarterly continue and value And innovation yes, for organic company in call

Ray Winborne

Thanks quarter accelerating beginning velocity for in year. the of opportunity the at now a just harder rest proof what and Day. front another provide consecutive QX I’ll year our giving laid the Investor us QX out on teams increase strategy is outlook results growth, every touch financial bookings then validating last seen to huge pushing for innovation, are terrific the the was day confidence and quarters we of solid GoDaddy, in us. four our of Aman, for We've and to the tap point we're

impacts year-over-year, at negligible. quarter, growing in total million, while came the currency over For revenue $XXX XX% were

productivity the Aman fastest on applications a was in not basis. earlier. Business presence year-over-year about behind, demand the And, product and continued That’s line, ever efforts markets growth as increasing Our digital solutions. growing in fastest of increasing experimentation on XX% world. over heels in strength far two XX% our Domains years on email reported the see grew growing branded talked the XX% we international for business around was

operates We most continue million of XX domains to see XX% and GoDaddy total roughly growth With the over aftermarket in now it aftermarket listed, domain and active in revenue. stellar domain world, sales. largest the contributes

This headwinds also We little first in and renewal social great domain and X% the due finally, continue the to the rates. GoDaddy primary quarter. to line in over presence strong product registrations And continues hosting reflect see from strength grew product to both major digits impact, would have outbound milestone scale elimination last sales GoDaddy in social, of periods, and a the marked context growth that motion excluding June. from We hosting some quarter. Putting presence quarter. perspective from the high-single this on been this

billion ever, For at a seeing products XX% reporting most Gross more was Strength with quarterly across the broad-based GoDaddy the first is geographies, XX% time margin bookings of year-over-year upside. Bookings the rose point in tailwind. and dollars. quarter. a domains with currency than in came of

quarter, the quarter, overall we the past, mid-XXs but we've that the As margin variables one we've range this are is Outsized shared with mix gross pointed to. many within margins in you domains of any can in given there impact impacted in always gross most product growth but important. remain

dollars expenses pleased we're profit line and acquisition importantly, quarter. out top the in growth this quarter, to by tech G&A generated accelerated with primarily post-consolidation. and Both and expenses More this pre the performance related dev gross

release call and our acquisition expenses, some we slides. in price February in Poynt operating as which acquisition reconciliation the account us Importantly, the the of tables in press required for out to of GAAP

$XX expense Excluding nearly but and accelerate year-over-year, these we been up XX% development. lower dev press product non-recurring expenses, million, would by tech have to as still

sum market. EBITDA QX, to in normalized in of continued representing XX%. $XXX marketing of growth the capture to in in invest strong The net also resulted We demand million

cash spend out lighter itself quarter that the of CapEx quarter growing million, even year. remainder flow XX%, the free unlevered was should from $XXX flow, for this partially cash to over the Moving

In sheet. cash fund Now, activity. $XXX onto unsecured total the a rate with we and in X.X% senior balance of acquisition with liquidity We QX billion. notes to of finished billion $X.X issued million $X.X nearly eight-year fixed February,

the favorable lowering XX-month maturities debt of the times we rate generating basis XXXX. on $X by XX We no term leverage million market times. and annual net targeted also until of X XXXX at trailing times in a of have Net took X nearly And below our cash $X.X and conditions, advantage debt X basis, stands points billion, to range near repricing savings. the mid-point significant loan

repurchased today, approximately fully in of X% we common Additionally, outstanding. through per stock for just shares our represent of X.X shares million an diluted aggregate purchase repurchases average price share. an price million These $XX or of reduction $XXX under

repurchase growth, announced total our Directors bringing billion. of and incremental a also a our model, the to priorities to number flow that that balance of and let's quarter, cash recurring a to saw We confident Board as share free We of This stock, liquidity turn $X growth against remain approved and authorization us share pursuit revenue allocation share. this an pursue million the repurchases. sheet. GoDaddy flexibility capacity new that, common to has in for organic execute per priorities resilient, of including a $XXX investing to With you have enables capital long-term strong outlook. multiple acquisitions, our we acquire highly repurchase and

investment Given to on growth, marketing at $X.XX continue plan we’re of raising XX% for business, or $XXX flow the our investment million full-year to spend, the revenue levels for raising cash drive unlevered and cadence, to outlook to to we're similar growth. seeing strong free the XX% billion, of we're and With also respect good guidance or pacing growth. returns

seeing we're on development, These of operating including be G&A. tech of offering. investment largely will launch product and and we the customer offset scope care dev as expect an in by the leverage also investments omni-commerce the continued push our We velocity and

growth $XX Poynt growth business and and of of recently in reflects in of this expect For unlevered Note presence. million, $XX with year-over-year, that $XXX domains guidance the of hosting announced applications, high-teens the cash the total approximately free high-single-digit revenue of and incorporate impact growth QX, from acquisition and or XX% dilution million million we any updated revenue deals. not does flow and registry

incremental million Poynt of and to our closing, in yet. continue more $XXX expect out done expectations In in bookings has gate, We not exceeding the strong XXXX than commerce to contribute been solution we’re our to XXXX.

growth providing value in space presence our and well playing to world continues the digital that, Masoner up team in creating GoDaddy its for a customer table for differentiated where experiences, With commerce stakes employees a lead questions. and by significant We’re shareholders. is evolve open Christie quickly. offense will now IR call this opportunities for from

A- Christie Masoner

Thanks, Instructions] comes Our the Morgan. [Operator Auty Ray. go from of question Sterling, from ahead. first line please J.P. Sterling

Sterling Auty

you great, hear can me, right, All okay.

Christie Masoner

can. We

Sterling Auty

right. am note, guidance your happy wondering you on you is I high All Mark on finishing congratulations at raising before up the GoDaddy with but step-out Ray, tenure a such how door?

Ray Winborne

– Thanks it. where it. Happy quarter. trajectory Appreciate the a Sterling. is the fantastic of was It business with

Sterling Auty

So help us fronts. maybe of you a can out couple

still that gets the it and in, go? hosting those where abate? And back I headwinds mentioned business rate? think run logically maybe growth As one is you kind should and to did that of in more headwinds presence, drilling the when normalized the a

Ray Winborne

one commonly. Yeah, pretty thanks for It's that get question we Sterling.

And with about. commerce talked we've software mentioned prepared implies ex-social, from year strong we're we been obviously in happy acceleration a there. start in as the an lot Gosh the you a to in I presence hosting of those grew the high-single-digits what is Aman progress first And perspective. we've did forward As and in continued a of products growth basis that quarter. really see through. remarks, the line in continued the that guide seeing range, rest on seeing move the the growth we're highlighted super subscription

security still percentage that upside from there's products here. The a item. remains line and fact make of traditional up that hosting large So,

huge growing, thing this, the later over That's a are are funded at and businesses, the entrepreneurs. products phase stable [sell in websites we've offerings being an the who the this support they're look plus bright] is of with making the and the market, $XXX the super we critical centric WordPress, investments while we’re investor create as now think seen right, investments year. introduction their to deck, and manage for should journey, those they And those billion success are of partner I little remember they audience, in right? highlighted and All grow investor, cash opportunity customer you've us. TAM, generative, these us by and that slower software omni-commerce our serve like of

a as As tailwind these offerings growth add We and capabilities. to do we expect continue hosting the move scale, be to forward. we that presence to

Sterling Auty

type on And that's going no longer the registry makes then growth the domain with does with the look growth customer grow been the in-line a past? of That we in up we move mix like maybe and operations domains the way it's side, follow of sense. forward? articulated the think new should in that to as with segment rate one about there, How sustainability what this

Aman Bhutani

Hey, Maybe Aman. in. this I'll can is jump Sterling, start and Ray

but that, continue the the inventory, and the you're to you investors, domains advantage of you improve at primary customers in to domain more put the in, know, the from know, the demand the domain course, aftermarket. innovation real know, new innovation, increase seeing the both of here energy the going growth We is seeing that we've here the You seen side, sides, well, right? growth story there's coming we of as of And that. results of company, sort basically outsized market, independence we've pace and there's, taking as aftermarket and more But good about into want of on there. the story we're to product, demand sort and

you And, the is that growth to to to we'll our drive for company. will innovate, on know, every know, look the for sort continue the opportunities, customer continue to You of [road], improve innovation view experience.

making think changes some said, of terms course, to in know, we've know, as to sustainability, you know, last that growth year. see that in You durable, QX the make of goodness started that of you like before, but we we we're

sort of growth. continue to going to innovate we're to to to So, have drive continue

it color. a Ray more to turn I'll to bit add So,

Ray Winborne

adding just to bit little that, a Sterling. Yeah,

that X or of of the could item of think the line as You acceleration lot in the domains a right. points sequential being driver aftermarket,

about So, changes the Aman we're the flows. systemic we in good and the in making feel product mentioned

we we as digits do to moderate That to year. continue to growth expect anticipate said, domains you do move the, by So, growth low-double the the rate end drive to know, we of forward. dollars the meaningful rates the

Sterling Auty

Thank you. Understood.

Ray Winborne

You bet.

Christie Masoner

Our next question of comes [Jan [Jan], Evercore from Lee] please line ahead. from the go ISI.

Unidentified Analyst

on Great. Thank you and guys quarter. congrats the

terms this Mahaney. more guess is growth base Mark So, compared as Jan websites around maybe W color plus like – some of quarters to color rollout? what's M to on the U.S. And like, one you on some plus the continues the for marketing, cadence and are in work I marketing put if grow. question rolled just And out? for web freemium if you and put the could could conversion? overall revenue to Where we also the prior the of

Aman Bhutani

is Yeah, Jan. of that take this let last the first, me Aman, bit

U.S. now we rollout, the the to continue Majority the be of freemium are in happy with the of rollout. terms seeing super customers freemium In product.

are bits us. gathering on it way doing and free conversion last satisfied We are be to we a standpoint the that forward is from it's of trial, data it, better going the than but for still

markets. other the other next will steps there, and taking international speaking into be English path our Our markets, freemium about then there

freemium for roadmap forward. of year-over-years, turn So that's, terms Ray. sort the And I’ll it of comparison, in the to moving

Ray Winborne

consistent with the choosing. seeing rates really are we're to are folks growth be been continue happy what The that recent skews both attach we've products, as talking Jan. the there, Yeah, in well about quarters with as on those rates

Unidentified Analyst

just if assumptions Poynt in XXX million expect terms And to talked at How using XXXX, may much flowing I capture? GMV know, be you just that you what I GMV of a one know time? by question about, that more you of going Poynt, couple the on kind add the of out are through you do years, of

Ray Winborne

market, That's it's go right. into good the to still the it. whether yet, on are that iterating out I get from new details actually versus Those conservative, ways existing. a want because to launching we're don’t

opportunity So, of But the lot looking there's think is that lot we're as at. to going to a we more factors consider that. out. be a We product roll XXX there's minimum beyond

Unidentified Analyst

guys. Great, thank you

Christie Masoner

line comes of ahead. go please Our the Jones from next Nick question Citi. from Nick,

Nick Jones

taking level of subs update is quarter-to-date API Great, who to the, maybe kind the awareness roll-out e-commerce new second social first, in thanks And are, and for play like solutions that sub pretty come winning that? as new with of is give features these uncertainty in with picture, you of trends you the know, persists? I integrations maybe could concerns on for question and is roll-outs Instagram, just questions. COVID guess the the bigger things an kind What then at a this you then, base particular, does And GoDaddy? the of how frequent? know, into current market choose are platform Thanks. maybe

Ray Winborne

one first Nick, can hit and product. the me the on Aman take let Hey, then

really see of cohorts. and in the growth to customer in the absolute in strong continue number cohort. of we trajectory, new the as That’s far year-over-year customers value As both dollar

we what comparable were If cohort, know, QX you surged. to you the the when COVID QX, last year, look at the is, it's quarter demand first size the seeing

but demand around seeing for results we year, the is with this and as what you in differences of the last have numbers you're guide. like seeing lot still are we see just can the in in strong, really a know, world, You in the consistent the to are respect you as small current formation guide we in particular. there, out with including, robust The points that the respect the you trajectory. data is external what as know, full-year, QX new put businesses, we know, well other with business to real the U.S., see in instilling And

Aman Bhutani

kind for to, marketing. package customers websites needs, using launch the plus we you say, quick it and mention just think, try we're the able adopt Hopefully, with question what big. there's you that a increases very, And right. value an to to a build the expand for Pro Nick, why a sales their you all where Z] you capability, on about create very, us ex-percent those to terms is know, intuitive simple that how see but to ton you research upsell, very I I of of of of they're or of market customer earlier leads that to in And and of, of us opportunity but then to, should success you you didn't for success able internally, this, drive feature able they know, And to the increases But you marketing it's able the asking. And know, you are their being this success this features it did them bring powerful the be messaging the look did then, get not continues it starter know, quickly that to know, makes to surprised we're that people. of side, the product, can engagement, existed at That bit is that in our with able build are beautiful their offer and drives success, of use it to set, little more. terms where awareness just of new customers, ecosystem of with of about Y, drives word awareness to customer in bringing features, sort continuing that very just – is know we to new product, there. know, path answers other us ecosystem them, them does for just customers can where were that websites just an that then program. mouth plus awareness it that And that and and sort [X, confidence of that lot

we've for And get huge that liking know, we so functionality, know, they're feature really for they're you it new the that word got And in table for play to know, to easier we've you the GoDaddy have free, new bringing make is set launched a hub. life Pros. out You seeing. of the there what amount editor a far WordPress, can

Nick Jones

Great. Thank you.

Christie Masoner

ahead. Trevor line from Trevor, The question Barclays. comes Young next the go from of please

Trevor Young

that's of preliminary Can stats you and the think for enrolled think knowing how Facebook, you you in Where And drive year-end, days? have for customer you just know, thanks I going you hub Hi, we stand taking that the know, then Aman, XX% adoption? Instagram targeting, posts penetration. API, Pros what's boosted the still comment can pro that, on early today, any And very you about do Thanks. monetize it's, adoption? had do well as by on XXX,XXX to questions. probably as noted you

Aman Bhutani

think, super no for like really, some it's posts, metrics of We'll have things And, our know, data, on bit really Yeah, more a early of days. good you I've see, the where engagement a those. boosted we mentioned know, doubt and features, couple customers from I and others. little for you

sort we're and that to could we you benefit every customers deeper the our segmented with here a them to are know customers. the those said, at engage you're there. our and every marketing hub, see the hub, have a add on which number every terms it week, the our Pros out innovative them types put And XXX,XXX that then something But those customers, sub In looking is them solutions, really are reach with tool of we did out week, value of you million sort X.X as try the to platform, of us, know to other bring we literally week level, from that going segments them – a much engagement of the to we comes within hub allow to of number. from targeting, at basic what tools is look, massive sort we like just those

you soon, you some then see data see the know, of you'll for the set, their have capturing, more and for data you'll we and coming you we're them out go that, things for one if front right is to in that it websites know, on you hub of example, there thing. next today, So the know,

So I'm feel and that this okay, I they today, back something that come have they, week feel two, to they velocity I'm in the seeing a of change or together. that that, to need and going

trying to XXX,XXX create we're So into bring the that to of folks hub. that's type loop the

Ray Winborne

you on we've monetization then customer marketing to first, that we're to those delivering scale. Hey, we'll value on get think focused Trevor, websites right, when monetization capabilities, closer about gotten that plus once

Trevor Young

both leaving you mark. on and congrats thank a Great, strong on Ray

Ray Winborne

it. appreciate I

Christie Masoner

Ron Ron, JMP the please comes question ahead. go of Josey from next The Securities. from line

Ron Josey

to Great, you. thanks Always question. for to taking good talk the

you trading two to maybe and end the both launching ask to on, about year-over-year. Websites XX% wanted think subscriptions I omni-commerce and I guess know, goal getting here. payments So, ready solution on payment market, Aman market talked solution, you the I commerce and commerce, subs the marketing or rose

are launched awareness on? us are that's And new just how your the things expect office, we really launched. from you Thank perspective? now, what once organization around of looks commentary awareness how on the the the are something are being along and more and efficiency building GoDaddy products reopening can But being an coming with in can then so still folks these just given and worked services if just is wondering maybe And to back office how [guides] that's back maybe fully the in talk solutions question you. another organization,

Aman Bhutani

to happy that. take Yeah,

same, interface same, started the out But pipe. you plus you have it said, want every background. On feels That's the a in payments. as marketing know, websites default works know, you way that launch, us, as a to to the the they they is know there. customer just have the I'd or visualize through because WordPress a their choice completely work GoDaddy connected provider, payments you having is, website have works push go picking things you start online, piece, you big the through we're seamless same how know, trying solution into we to they're And start, clean that And an comes see, know, a a domain, ultimately about is you seamlessly experience. they they store things and looks way, online. says, small with The with payments and the a

So, are of to which like know, committed or on the ecosystem others their, we're in, the selling you they solution, with of it's bringing seamlessly not side of. same it's or omni-commerce And just sort to capability, whether taken and well. in-store partners is copy pasting or that everything anything, into related course, their Etsy handled capability care you about launching this as is year, Amazon, know, of

a You WordPress, we few instance payment for GoDaddy also solution of and WordPress of which in we're also our managed managed WordPress, targeting will outside that, weeks. know, which be is launching

do the pieces become full solution, about to market capability we having is can manner You they those actually it course, the able is always, solutions actually bigger to market know, about being a and technology way. talk intuitive, full human continues can as go and available we always bigger. them. them like the to awareness, do have in point together, to put are of of But the customers to the in and GoDaddy, we that to with We to different it go where a simple, guidance once the

you So from us. expect that's should what

reopening, basis. of some many In some employee what in other to terms reopening, know, we ask have base, the in a put surveys companies, going are have volunteer to we you we come folks where, dates know like you done still evaluating of – incur we're on

up lot of there's not folks that. taking us a on And far, so

I think folks to be continue concerned.

to But office. in where more looking in in very a you of think as – depends later there locations we'll right on the now, obviously at like it. this very, open summer set more folks, places are you have situation depending it India, well in it's difficult that back the people know, are slightly many I some think, but the country, point, we know, country, folks on and

Ron Josey

of it improvements in a And call from guides home. now productivity working Maybe perspective, there. you. maybe Thank from three quarters year, the we’re a

Aman Bhutani

a add quite you we've add bit. happy is, we've new that continued know, this for to the Yeah, tech, capability because to for normal we're the a to of that guides sort remotely realize we continued with productivity more more work sort of

lap the you So We know, happy and productivity. that, May of with start to some April far, we're into here. going pretty

we're happy with far, pretty so it. So,

Ron Josey

you. it. Got Thank

Aman Bhutani

Thank you.

Christie Masoner

Co. The comes next Bracelin from & Piper go question ahead. from Sandler Brent Brent, please

Clarke Jeffries

is for Clarke on This Jeffries Brent. Hi.

First much in maybe aftermarket maybe high sense And question, growth the year years aftermarket. XX% have give certainly with of what ASPs domain’s three how top of follow-up. are Ray, of percentage around number, one guide. of Could percentage was business I a appreciate past? from And business highest the ago a us that disclosure versus or you mind is benefit the driving I volumes in And the today? Thanks. the a teens

Ray Winborne

Aman [UX] It's And inventory one not yeah, happy more pipe. all It's climbed it. really up we've a the And lot been double-digit, a work now the been in thing. Yeah, with things just single-digit. while different the doing. team's disclosing the Clarke, purchase putting and articulated different it's to at for it's it’s passes, of place on we've we're in been

X primarily strong. the the that just ASPs. unit a So, the this point sequential that lift versus you pipe talked there through And going on saw are right. ASP been really higher has you versus From These about. more unit, is difference inventory perspective,

Now, not driving we growth. know, do you numbers, but six see our share the that's what's ASPs, revenue digit of strong plus

Clarke Jeffries

of if then And now second a investors, I call any, And particular strength more there was of strength demand with But international. than regions, revenue? then, global and perfect. in know, growing wondering know, we about faster you where detail growth different third obviously to little pockets out? you seeing XX% the any business you're takeaway overall being for the question, seen Alright, strong is could bit with get in this a

Ray Winborne

They've Yeah, stepped fantastic COVID marketing results during particularly side. surge, demand really up out of in the team. the international the

out really look of different of campaigns If that lot you the at put we it's sign-ups. driving in a markets, some there

far of markets strong. As areas as growing strength, any are developed our incredibly

Australia, seeing India, really we're we've So And up. there. results been happy sequentially UK, stepped with the Canada, those all

Clarke Jeffries

much. very you Thank Perfect.

Ray Winborne

You bet.

Christie Masoner

please go from next comes Ygal Our question ahead. from Ygal, Arounian Wedbush.

Ygal Arounian

taking for the thanks questions. guys, Hey,

XQ important thought just sign. of an that that incredibly today call you XQ actually and to the things So, last XQ I that's year, so said far cohorts, positive the think comparable most is the is on I one cohort and the

domains. So, know, could, if I coming core funnels anything into into behavior, bit. you around dig you there's to at where wanted little that the they're around Maybe a

there the hosting those and on around color of You the taking the know, know, you in Is opportunities some larger then, Or you are piece that. of cloud the but remains And market? I on seeing Pro side, lot is the sales pressure more play it's from and So, helping to is ballpark? the it guys the manage in same not push of fanciest marketing website grow do providers share some part that – there business, it there's the And push business? really side? Are behaviors? just grown WordPress, not important. that

Aman Bhutani

Ygal, thanks question. the for

and that strong cohort, the said, know, You QX came as so, talked a the definitely he – in to as cohorts, we about. cohorts, behaving on QX, Ray similar QX

channels. I They're think, overall, that's great coming similar customer through numbers. in

You about still early. an know you talking is you stuff as Pros, we're talked Pros about example, know, the

going to expect are pandemic last pretty the is So, what through year. are And what similar we saw it's the similar. you channels to

nice of So, there isn't more a And in increase, in lot pipe. the second of, going change and the the sort through piece, it. of then on nice I'll continued terms increase It's numbers, just customer take let just Ray shape.

Ray Winborne

very are our using consolidation as taking Ygal, place so right, that And those coming product. is we're on folks are the enhancing in and hosting, that there Yeah, in Pro benefit some way priced far but offering. is for competition, the as another we sharply hub

Ygal Arounian

taking questions. thanks the Great and for

Christie Masoner

question of ahead. comes Mathivanan Wolfe. Deepak, please un-mute go Deepak the line. next please Our Deepak, from your from line

please go We of will ahead. the on Brent move next from Jefferies. Brent, question to coming the from line Thill

Brent Thill

Ray. a Congrats run. on great

Ray Winborne

Thanks, Brent.

Brent Thill

Poynt done you to platform. to with how that of your about think you've also to just it the commitment but side, overall street. you some you're know, tuck-ins others, the And going the and was their versus commitment great nice the balance buyback tech cash questions see ahead and to you the about solidify curious, I'm buyback, know, XX% flow, on When tuck-ins around, too,

Ray Winborne

there, a a are you comment? or got Brent making You question

Brent Thill

that, you're can it M&A, of you relates you when curious incorporating nice just commitment just how curious about to But see if to I comment, forward. I'm the as strategy and think mix was and it going buyback. the the to No, the part was

some Poynt, to you done like tuck-ins expect continue You've going about capital How nice think forward? know, should that allocation? we you

Ray Winborne

added string allocation at acquisitions right, right. and this beauty got the execute strong predictable the M&A, going an invest of outstanding easy the rate call, made business, significant Significant change, pipeline, optionality. take capacity got capital some but that, prudently, don't cash where repurchases. on the share to net of a capital leaves registering that and capacity the earnings our dollars we there. about of whole point, able of were Gosh, pretty and To virtualization for allocation months flow strategic to business turn generation, volatility. market But last order the of XX attractive priorities across billion M&A, those us advantage whether there, We're your opportunistic, think can of product some talent, since equity EBITDA because X% repurchases. with of know, right. prices, accelerated last you honestly, be at a you priorities, it organic in in when When over the is look we've the is have you we us, continue all really at we've capability, model, and we've incredible will And organic a that's it's leverage midpoint near to in that

Brent Thill

you. Thank excellent. Okay,

Christie Masoner

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

Matt Pfau

thanks, Hey, guys.

websites to up ask actually manage professionals question can understanding to product, wanted I the to that the for but if created maybe Pro product aren't it's you sign GoDaddy. Just it another hub on my think that free that is on for incorrect, use and WordPress

helpful maybe with dig if strategy the the hub? monetization could of and Pro model sort be into So, just, you

Aman Bhutani

Yes, Matt. for sure,

it company. The drive manage to the we're of a come more to to hosted fantastic Pros that right. Pro management So in is and know, place a value project where gives But and clients. can helps it capabilities bit you value is tools capabilities add not idea that is to value, aligned only for The adding a more Pro. customer the idea both tool with instances, the drive and or it. a at over as time, do they And here GoDaddy WordPress them right, broader and their of outside. shift also and engagement, manage build approach the much approach create to value hub Absolutely shareholders, our take some is very that

that example, are month, are what just now the site that using it we right with an know save As have per today. pros per already that hours saying just can rate already we three about they

So, time, put come of new forms as us of you have in them, for their we to And a them, that able that part to be Pros products, – starting product to save bigger that we capabilities, time expect a monetize. know, now those expose front because for gives GoDaddy. great to point with to opportunity it and to they business value a us the they they we new the creates high it engagement all products them have

Matt Pfau

you just launching one uptake that business? seeing know, and your interest that, Pro commerce the in or you it sites plus seeing, Got marketing you're in base similar websites within follow-up on are

Aman Bhutani

think in percentage we're early super the GMV are I know of that very Pros today. a that that commerce, of in space. interested supports We online e-commerce sort we huge know WooCommerce

process. know But we know it. in community a behind We demand there's So, that strong there. we're there's pretty early great still

from remember, have joined which as we we an WooCommerce. of you'll As now commerce is SkyVerge, is you QX, Osama Poynt. Bedier, so that division, dedicated the led They're to a in us called overall did team part by acquisition who know, last year,

to across the the plus a company going deliver pieces they are the actually together division manage and WordPress. we're So, different works that here's marketing at and websites saying all bringing commerce platform

Matt Pfau

it. guys, Thanks, appreciate

Aman Bhutani

you. Thank

Operator

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

Naved Khan

question. Thanks thanks. for taking Hi, my

the e-commerce Just And also to on there in the the color the be of comparable is that curious is been mix or last would growth packages the plus some and have that great? a Sellbrite in seen is maybe, about if websites same? what can give few marketing to know XX% we you within Or quarters? if pickup

Aman Bhutani

can commerce was across, you I websites growth you know, sorry, marketing all about Yeah, know, plus take we that. talked the Overall, suite.

you the it's the have with demand skew think it looking online, talked – an remember what for in the also we I you We've right. personalize talked know call you front marketing. with what us some they're XX%, an and come shift, saw GoDaddy, think our skews. you you it, grow, online online grew other seen where matches I of today, is store we So, coming store, the market already are merchandising, And if I the we've year-over-year to that websites we build right, to in unless Customers it I in of homepage faster know, and about consistently the previous plus than put well of right consistent that and about. ability

with them help In we've online prepared that with it's lot what in terms be the of services and others, things talked in talked product the it they're percentages, continues about be product sort the customers, do doing we're just to versus skew the know And putting more as about, continues commerce, customers needs for that unique product tools We're is going are about. their What you are the commerce excited broadly you my you different. to in. and know, well. that. not It and I've remarks. appointment first more of, know, along into as that a commerce that to And looking go you line

hopefully I So, little helps. would that you of the similar know, trend, say but bit color overall,

Naved Khan

a maybe That's helpful. And up. quick follow

you On think packages? respect the integrating or know expectations, your to front, share with in the can you be online point maybe can launch either And how you back start to you tracking numbers the you are the payment generating, that for maybe at that some you XXXX? or maybe also, think own half what with point into

Aman Bhutani

Yeah.

I be already. We And And with we're you for in weeks. the right continue within out aggressively websites there happy we're see a products very integration, you'll moving more very the to us something now. testing know, we've as got Poynt few from building marketing and that WordPress said, plus

we We [midnight] sort seamless, omni-commerce to on on all year, teams track market. You that know, bringing, burning make it's This of fantastic. about and working our to and of difference it's in the the that, know, platforms, that. others. together think opportunity more solution. and about in too terms we're with large. early. of bundled needs just And super those in honestly you one they’ll excited in-store, Etsy, intuitive parallel from look of sales base customer it's opportunities Amazon, a as my bit and, an we Ray provide number We're commerce, the place is XXXX, for going because payments, know, about And providing exactly, with out we're overall the sort there fantastic. really conservative We talking excited invoicing But think coming perspective, behind online, are and all absolutely think numbers It's think and you still a it. our right said, in have a we experience very

Naved Khan

Makes sense, thank you.

Aman Bhutani

you. Thank

Christie Masoner

Frank, comes Our the next Frank from line question Wolfe ahead. from go please of Research. Volpe

Frank Volpe

everyone, Congratulations a on Deepak. great Hi, for quarter. Frank here Volpe

extensions. you Just [indiscernible] about wanted business, the to ask more acquired obviously

to know think could as if we about, Before should building strategy, you innovation about excited kind you're most how you about business here as being what spoke a am curious our I well of to your timing, highlight lot larger? just which central innovations to

Aman Bhutani

more Yeah, need needed business. customer to able give need TLDs. We is, innovate, choice. in more one realize a scale of the to more know, be we to We that bit things we you the

really small a what that can adding we scale you so to adding a you scale there's about, we is we're some of super drive advantages that too, and but experience for us will it. here me bit of bit about So, a soon financial see some course of that we're guys and customers. innovative something excited Believe more as have our things there as hear doing

Frank Volpe

Absolutely.

Ray Winborne

incremental contract we up picked zero TLDs, [indiscernible] Frank [Indiscernible]. costs. right? meaning are Those Hey perpetual or owned either

Frank Volpe

any in terms – Have we pandemic, a you any or things we coming kind of anything then follow and reopen. you of starting and notable, marketing, on with channels? of impact acquisition thinking websites up, you costs, it. marketing And know, Got be to we, the should know, kind customer are out guys about as also struggled your just as that of seen

Aman Bhutani

that spend about you to cohort. know, intend see at our see a we returns. the spend marketing now, today. Ray as least well Yeah, as see a was best know, as strong as to right know, I we bit, We you marketing guided, or we to think, returns And you little marketing for continue in can talked we'll in within the till And, good spend, we QX guidelines. cohort continue

But to good still pretty we So that's what's overall, talk I what Obviously, it. about can't feel we're going do. expecting there's ball no and crystal happen. about to

Frank Volpe

Right.

I'm is impact hearing. what yet So, no

Ray Winborne

No.

In of the like I looked fact, QX, quarter so… first that mentioned, as cohort a the lot last size QX year,

Frank Volpe

right, on All regulations and quarter. everyone Thanks the perfect. great to

Aman Bhutani

you. Thank

Ray Winborne

Appreciate it.

Christie Masoner

closing turn for us today. I'm to for to some Thank joining call remarks. you the Aman going over

Aman Bhutani

you, moment Christie. of years backbone to thank company almost a her Thank Nima Kelly contribution wanted I for this to been and Nima XX and take Ray is has just the immeasurable. Winborne.

And get you doesn't much and just, you the so background group Ray, always out with, the see a to total Sterling big such gave Nima to with joy you Sterling guys laugh. race], And to but and this know all I a Ray, a for these time, done in company. get professional. us her, know, really has You know, see is on calls glad to me work get out you the him always joke, go on helping which and [beaten I'm

You good sure. know hand that is to a point for this to off Mark

Nima joining the and to thank all GoDaddy you, you thanks Ray a and thank call. quarter you great for So, all employees and for

GoDaddy (GDDY) 6 May 212021 Q1 Earnings call transcript