GDDY - Earnings call transcript Q3 2021

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Mark Grant

Good afternoon, and thank you for joining us for GoDaddy's Third 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 Mark McCaffrey, Chief Financial Officer.

Following prepared remarks, we will open up the call for your questions. 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, annualized recurring revenue, or ARR, gross merchandise volume, or GMV, and net debt. 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 product strategies desired The our introductions acquisitions future our future to include those matters we'll related integrations, to partner be innovations, and pandemic the respect discussing results, and today of or our our include operations, integrate on with the COVID-XX new forward-looking synergies statements, which to impact objectives financial business. ability and achieve risks These the are uncertainties SEC. that detail filed forward-looking subject discussed with statements to and in are in our documents differ in contained may results the those from materially statements. forward-looking Actual today, statements are on a that as unless update these make on statements assumptions by information no future law. to result November new we XXXX, forward-looking obligation this X, as based or Any call of and required undertake we events of here's Aman. that, With

Aman Bhutani

growing focus to incredibly future Mark, you designed We company. seeking most product are entrepreneurs inclusive launch to active off-line. made excited significant our help types maintained our traction. most customers about continued initiatives of business, the all has domain And us company's we aftermarket the GoDaddy who most quarter their be domain serve the GoDaddy makers millions a for few the in websites various company. serve clients, Today, further products serve the their leverage innovation, today. investors highlight and great I'd grow this I we this and this progress on own the tools for product our a have web a professional customer independent better of be and what accelerating little remarkable the we to in gaining to bit We and audience who September, create we largest of consider online to celebrated been body of thank of you, serve and leading are all, impactful both history. make and why what leverage build opportunity customers. mission our world. and to for holds more in for understand more for joining Thank these our like excited We've to in never

key for as Looking gross query at of number environment, we period. demand well a sell first in volume. is track of any macro products we metrics, we by as look search online given searching the customers monitoring That adds the at including couple potential customer

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value, We new all strong are streams, delivering revenue flow. and new increasing hyperfocused cash durable on still generating TAM customer while unlocking

through out presence; we updates Domains. winning GoDaddy innovating new XXXX: success commerce second, you in driving the exciting have We first, third, priorities laid with in and to Pros; three to

QX. As our giant priority top you this year, heard me driving XXXX, and commerce we forward success took say through presence for leap in consistently in is a

As many of you huge saw, in we had product launch a September.

all anywhere. sell Marketing, offering. they to + Websites our anything OmniCommerce offerings We our tools need complement we the our in solutions online our introduction customers introduced hardware solutions, OmniCommerce place off-line to of have the With for giving now tools for

go-to-market be products be that new and this end would them strategies, building of Websites for soon. about We have SKUs the exciting OmniCommerce year plans the experimentation and you Marketing that look said XXXX pricing, with updates forward and and + to those out with beyond XXXX bundling, getting sharing promotions. would by We've about

of experimentation early months start too. is best we that launched One get the things to three products earlier, about the the getting

options have up simplest omnichannel We merchant bundles, SKUs for exploring to to make begun the way venture. OmniCommerce an already new a commerce strategies for set and easiest and go-to-market

the priority. fees. transaction payment feature-rich in merchant-friendly make the with Marketing product give Terminal, small success number can online to reflects and businesses adding commerce ability the they solutions and WordPress these online, wanted and terminals now. furthering September, systems, out their and as Reader, Customers vendor as were comparable seamlessly point-of-sale track logo when and pricing point-of-sale customers other off-line that devices is than + more Links sell, manage the transactions commerce the now launch solutions our places as to communicate arrive, receipts. to of GoDaddy We WooCommerce commitment in listings, OmniCommerce pricing right spanning experiences comprised Terminal GoDaddy platform. industry-leading and work industry introduced solutions our merchants, Our devices Virtual and the rounds most these thrilled third-party Card and we innovative off-line to that In including believe point-of-sale see intuitive launched commitment Payments in our to The Websites potential accessible well greatest platforms. and and We their state-of-the-art we These any to GoDaddy Online across package e-commerce, Smart sales devices, before our configure devices of well. Pay platform, stunning, custom GoDaddy's

available Hub. We're charged will in-person GoDaddy is $X.XX. online payments plus customer two And over approximately more continues with launched save small increased online mapping easily dashboard of So Commerce To to to to virtual we it tools. In businesses. that or across help see our annualized customers while track partner. introduced fee $XX to sessions arrives, sale Commerce online products sales OPEN GoDaddy in own would on learn the be people providers off-line brand Osaka, to leading the digitization $X.XX, orders, and the The the event, continue lowest they event X.X% Hub partner, and to Grow Managed our Websites more is majority, XX,XXX X.X% branding, growth as designed saw Payments online, ARR XXXX and earn. e-commerce year-over-year charge GMV Studios, across XX% in off-line at GoDaddy business. of days On will attended surpassing transactions Similar GoDaddy and with plus Sellbrite + pleased of navigate dollar all GoDaddy to to their keep and to continue Hub GoDaddy included includes Pro products, customers $XXX business, intuitive every inventory U.S. business September tough fees help share than the entrepreneurs WordPress, for help XXXX's products and each We the of transaction to Hub, with Marketing, Poynt we introduced a the including entrepreneurs. customers our when and as single of and marketing other midst performance, also comps. even for the free both. for to Commerce ready and average, to grow Sellbrite XXXX device metrics compared million, manage with soon + billion, view Naomi our that QX, shipping. and with materially them we GoDaddy transaction Websites surpassed We of official channels transactions later our and breakout in-person to an who the growing on help customers transaction visualizations, year-over-year. billion. as comparison allowing year-over-year account with OPEN tracking customers this Create innovation last an other effective roughly virtual our skincare which Marketing, capabilities XX% are $XX fees. both access about performing pandemic-driven and tools More their launched in are sales provides pricing grow bird's-eye for the her turnout our grow sign-on network the best, nearly year XX% even

we getting months. our you Commerce short with Presence, can products see, what of Investor to more ambitious can view accomplish We're few Day we're what have excited show to in at we can our what share an products more and plan accomplish you just of started. we of a in do and and those As

the Pros. year, Managed WordPress Pro our developers champion and GoDaddy serving end WordPress, goal prefer remains we this WordPress, and by the the ambitious on hosting the of GoDaddy Earlier Hub legacy know to the out shared details of of launch, we global an year. new and and We our and of Hub solutions. that Pros designers Pros Pro Moving with into XXX,XXX set current bringing both

value increase another on our track commitment work the of The GoDaddy and delivering our to on goal. are to functionality reach Pro now. Pros' customers simplifies Hub as this powerful of example serves We to

it and Pro The can firsthand first their Pros Hub so is step much underway the getting now in easier professional with makes they life. well see engaged how

step, second those is The more to way as successful well. capture share share find in is ways to makes which among come, economics Pros that and them wallet more to a yet

solution. launched the third-party Pros. for were This immediately, pain saw Invoicing most adoption. major manage Pro the another Invoicing for within This need Hub, point yet was quarter, simple available and we solutions Payments and eliminating Pros Pros track in Pro to almost We our functionality requested was deliver feature we for GoDaddy and and point a good Payment's the happy to ecosystem.

GoDaddy exponential power event GoDaddy community, India, of specifically facilitating for our continued the Lastly, in we hosting first and Pros. the harnessing

we humbled you said Expand India the As event positive, presenters. developers for hosting agency a event, the see In topics I Expand event were by April who them. GoDaddy this from selection pros in customer was Customer for to feedback another we one and registered was thousands the well up professional GoDaddy event, country-specific United in the of and the India. to of We Expand blown summed States. very Pros forum giving held us by recall, help in away expanded in event designers, September,

has it Domains. this This by for GoDaddy a Moving on and continues been year, margin. fantastic outperform business to industry large the past to

year, acquired and significant been the tools growth. in year-over-year of Aftermarket areas, cohort in have we year-over-year. primary revenue acquire, X% A As GoDaddy Registry the to all new still Registry. QX growth as registrations, When Registry, and prove great unit last we of GoDaddy to driving QX last with list from we our continuing Registry, ability were cohorts aftermarket year. shrinking are we the to benefit continue Neustar's introduced our year, to in the registrations fantastic teams within integrate innovate sale On drive throughout continues example new sharing Domains its assets is performance down accelerate.

year accelerate that new now within business the into that acquisition, pleased able and year, been first we are we're X have to We to report significantly.

Registrar sites is nearly new more We're increased year-over-year, up our initiatives about innovation the Domains organically. are all have in Investor for share our registrations Day. both to what XX% works. and business, of We and room we're seeing unit in the exciting now significant There cooking at several domain Registry improvement we in and still excited

up, finish moment our to a people wanted Day in to coming upcoming share heads wanted We I things. exciting take expect that was I few Before give about to a because weeks up really ago. it we Investor February, to announced a some talk

allocation happy discuss We our financial long-term GoDaddy's initiatives, capital quite quarter thoughts opportunities and engaging get to closing, We go-forward strategy and structure. expect this reporting innovation to event. we're we as ability pursue ahead. the to this strategy, feedback forward enormous prepare with and to for results you financial look your with In framework,

increasing as positioned ability has scale with core well at solutions. with great durable points growth at that its generate attractive continue customer GoDaddy profitable We profile, a and an and to is provide true technology to business touch predictable cash global leader results financial essential flow. a are and will

capability shareholder Importantly, have prudently. focus on demonstrated we'll capital a maintain relentless to the invest increasing value and

driving to committed here's entire continuing innovation, value bringing the drive to Mark. customers, new the are important our solutions creation continuing flywheel. industry We and of across to that, pace With progress

Mark McCaffrey

which the a want and $XXX outlook for QX financial showed I currency includes growing came then was of Aman. up move take over revenue third XX Total Thanks, to tailwind. financial at discuss the to our which in moment quarter, results rest in strong the quarter a to XX% basis points for year-over-year, million, our financial results. XXXX. of

grew a reported business approximately with points XX% on international basis, two currency of Our tailwind. at

year-over-year, last our the be of saw in continue the Presence As Difficulty] Hosting the top demand below expectations in mid-single-digit signals we trends line of the funnel XXXX. an at elevated for X% to grew high and with year, but growth. [Technical delivering end

our to share ARR + Marketing in an million the of year-over-year and well + still hosting seeing We with Presence, and from growth from the our suite, products, launch disclosed Studios. pleased ARR Create the $XXX any too continue than year-over-year Marketing nice to while early Websites specifically, QX, from really are September Payments Within GoDaddy legacy details, in grew and Presence ARR Websites we're ARR WordPress, than of tempered are in in like Managed that more what and broadly. commerce security group QX. see Marketing, + + in And Sellbrite seeing previously growth to we're Within to suite Hosting far products it's we more and Grow more which uptake our metric XX% as grew update as more passed Websites in from business. by OmniCommerce includes QX. our GoDaddy XX% in Marketing, slower pleased we products so Websites The provide

year-over-year. third the quarter. large late billion, put the in driven the Lastly, we point-of-sale contributor by across nearly XX% online annualized We year-over-year. in all grew to growth place lap Domains the was saw growing growth $XX channels, primarily GMV year which performance as off-line innovation XX% tailwinds the from is approximately last a aftermarket, teams COVID. in saw across was ecosystem The we driving GoDaddy

We registrations. Applications increasing see fastest-growing comp also XX% consistent our primary continue to finally, line, renewals and product And year-over-year. was Business

mix quarter currency bookings similar strong points see in customers and in rising renewals customer year-over-year, continue the reflect attach, $X.XX in Strength e-mail seats solutions. basis We and Bookings adding XX new billion, what drive productivity called additional the to XX% of in we've at came of with range saw out tailwind. existing margin. the in last Product for overall quarter, in to revenue. margin Gross the line company's both and with at came what continues drivers we we XX% gross quarter guided to mid-XX to.

launch gross revenue margins impacts September, Payments scales. we margin as and have expect two the revenue as stream revenue on years. some Payments to the quarters larger in it will put announced Payments pricing in coming the Given the gets different we pressure and

are up operating However, there acquired and those on incremental low relatively customers are costs once GoDaddy Payments. set

Payments innovation was So tech to highly quarter discipline. as continue EBITDA maintaining to our accretive with in fiscal Investment over we last consistent of to expect and time. be we while normalized dev accelerate pace

with We the though the decelerated continue advertising elevated last made in last other in leverage year. office started our remain travel marketing and get levels. G&A we the quarter, remained expenses and investment to investment as growth to as historical lap strong we QX, extraordinary below Consistent saw to year-over-year capture demand we

normalized representing our technology cloud. disciplined profitability, Our growth capital in We Unlevered of to from due supply as and some continue spending EBITDA CapEx planned and CapEx workloads we however, working QX. investment flow the note, issues XX% shifting of $XXX XX% quarter in of impacts to the impacting global cash chain into like year-over-year, was investment shifted $XXX servers, by the continued growing quarter million, million, growth the driven strong for second year-over-year. resulted free positive hardware

flow free expect CapEx line guide. continue our investment unlevered bringing full with to in year cash our QX, in We

and and finished billion. QX Now a the trailing total sheet near midpoint both We liquidity net debt on XX-month equity resilient Net below position, $X.X balance billion has liquidity stands targeted capital a access markets basis capital billion of operations. with Xx at on in $X.X cash to our to and and Xx Xx. debt of allocation. range strong to leverage GoDaddy of $X.X and the cash-generating

$XXX executed buying During price million. aggregate third million for X.X the purchase accelerated share we quarter, an shares an repurchase of

million also space. to in the $XXX allocated acquisitions We nearly Registry

balance way make we we share that priorities, deployed the the $XXX on After remaining for to repurchases the capital approximately believe completion shareholders. generate sure returns will about long-term best continue above, authorization. the have our is think and we in will M&A repurchase capital of ASR to we As million mentioned

the laid on beginning on out outperform Moving we initial to GoDaddy outlook. at flow year. free to unlevered track targets is cash the our of and the revenue

full Looking and QX, guidance to revenue XX% $X.XXX total year our Based raising for million a of XX% outperformance or $XXX our QX at billion, growth growth QX, year-over-year. on year-over-year. approximately expectations expect we're our approximately we in revenue

noted for we're CapEx year to the our QX seen performance flow strong for $XXX has some continued XX% of the CapEx full spending to or million shifted raising I approximately the plan spending year-over-year. our year-to-date, As earlier, on million $XX from and we've Based in unlevered cash free QX. guidance growth

be of In the As our therefore, the face the quarter expect in QX revenue we Domains we know, tougher points aftermarket, abate period. last impact below a year. mentioned couple the in tough compares last still and and growth at list bookings improvements that QX last we expect quarter, low in grow not growth revenue the as from does continue last business, to other QX, double revenue is to year lap The FX it digits end the the of year talked for compares our final we from sale we tailwinds as to impact the we aftermarket about deferred you the non-subscription introduced a of of tool quarter. of as

We full expect deliver revenue the growth year. Hosting and for Presence mid-single-digit to

saw October. seen hosting very growth will market, of offerings top We our be continue of we growth. And new got optimistic track next Hosting improvements an strong to that with to a driving able and of growth September slate Presence of the in with We're We've some coming + to like also over and the impressive the accelerate rebuild, single-digit record remain year. we funnel Websites even lapping difficult the to our comps higher Marketing see will and legacy take low products growth in in the time softness business. summer we

driven the higher-priced demand customers our on investing we're we marketing upgrades the growth relatively tiers for to we'll current expenses, and and Business With solutions. growth expecting maintain customer momentum by to as Based respect product continue be environment, continue among expect of we've flat high-teens and in attach, absolute We the to in tech Applications productivity seek year-to-date. to year, to QX. full dev sequentially in work the investments existing seen spend

continue by and leverage care to G&A. We investments continued in offset to expect be largely customer

last still guidance we'll targets specific We provide February. X-X-X in the year, early set we are formal more out with comfortable and

over revenue the of more are expect Some to become impactful Payments that in recognized like streams aftermarket we immediately. time

time. revenue the over and both with and capture immense expect would financial GoDaddy pursue and an ahead resources and to converge innovation the well we incredibly road growth equipped needed is bookings So growth us. bright the opportunity has before to

generation consistent Our to gives significant us to and that. shareholders, levers generate committed doing for cash we're multiple returns our just

It's and from to we'll need our Day prepare of confidently, accountable and the have value being about look be and our place As February, vision putting our for that, Christie with to I'm against the with forward questions. GoDaddy up outreach. each quarter the excited we then. us we plans for Masoner are in you an direction in to to business our Investor hold information is providing strategic Investor for exciting they effectively to the their team business investor and all With of investors executing going day, stated open the enhance objective. model committed the call communication company, Relations we

Christie Masoner

Our Thanks, the go Ygal Mark. Arounian please comes from of Wedbush. from first Instructions] ahead. Ygal, [Operator line question

Ygal Arounian

board guess you just some understand, level. trying I across outperformance Okay, And highest in start guys. solid to at had XQ. the I'll the good afternoon, good

-- you entertainment customer earnings, that. travel vacations peak summer and those the since the customer about guidance it of of your the like Can light into to at last then? softness feel was XQ? summer, and of were translating in how headwinds, the evolved and shift kind aren't strongest I talk talked the You all on over about and trends why have Why and they outperformance the the

Aman Bhutani

on view August There in sort with and that. is deliver little drop with a uneven QX. sort seeing can was answer there line of a very of in were as happy To we give Thanks, was you, in Ygal. strong over in chronological July. and take Obviously, question I the saw we we your that in of results enabled stabilization summer. signals then it, September, September. bit you demand the the October that us to a bit Even our we're shared and though execution most working improved out strong

monitor, to seeing last the the returning we're continuing to we're to what business, share we're about would So this you're which and seasonality see, still like exactly but what guidance. and optimistic that that's did to We cautiously again we in with time. looking you we do time, normal

Ygal Arounian

maybe post is business the color and cohort just there. a you Okay, bit what to around turning little growth more thanks. Thanks. that give happening the pre-M&A on Neustar ask exactly the from I'll is about there Can M&A?

Aman Bhutani

is new We're to team. know, come They've Yes, all the and super as maintained really scale them, integrate and integration. GoDaddy. through they Registry the go have into excited businesses proud of for we GoDaddy The strong had growing through team have you But it, execution. to them. with

they've but So and a I've that much this execution, team, we with innovations done of forward, And job. as course, as GoDaddy and with of it's strong team but shared one working looking coming fantastic really the you come And right? that we brands. past, small for can, have the to as about just ability good a looking together, is continue team execution, we'll the leaders in for specific share it's opportunities

Ygal Arounian

Great, thanks much. so

Christie Masoner

of Our the next from ahead. Jeffries Sandler. go from Piper Clarke question comes line please Clarke,

Clarke Jeffries

ahead understand wanted growth kind help what beyond context what understand I some of XXXX? guidance. expectations was orient segment to durable Great are talking are if rate would compares out, results the pre-pandemic? us quarter know historical and strong of sort to maybe XXXX, looking us and funnel could exiting of not products? as I that even understand I growing in maybe just tough And you beyond to you want of another to about Grow the see we growth some softness that for you called what Create of top of Hello. to

Mark McCaffrey

seeing XX% hand first ARR signs of And part. it we with the it happy really maybe historical are and our Yes. + positive then and part We're Aman for Websites in Marketing Thanks, and to around Clarke. Create to comments, and a but take optimistic take Marketing the really rebuild on Grow, I'll positive we commerce the the XX%. looking said funnel and at with like Acknowledging little at of we're bit signs. that softness slowdown QX, our will + the Websites in time

we Day X-X-X we comfortable said, and one looking to with catching are up and also Investor forward communicate of putting everybody the As moving kind on we're we forward, with really to it so can all you. together

Clarke Jeffries

Great. this with industry-leading out What in the OmniCommerce release market, solution And what understand POS allowed to to of I to plus transactions, to gives on just flexibility compared peers? then the now grant you pricing wanted you kind X.X pricing XX.

Aman Bhutani

to goal at is here to And ground it a need know, And have from team I'm to there. we technology payments lose structure, and about pricing we is look The make them? hardware. say, you as to it's what the innovation. build do and And Yes. broke happy the in or our products real customers from in fantastic accessible up not our start down for Poynt. these and money any

that to that and we at and for adopt products. to innovate, on customers our pass idea customer. pricing the up the demand Our it bottom, the about of excited see I'm a goal And they lot from is build the value look this

Clarke Jeffries

Okay. Thank you very much.

Aman Bhutani

Thank you.

Christie Masoner

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

Nicholas Jones

through? questions. likely increase kind through two are taking you is next Domain of success is, maybe questions. tilting you it I second are another become more remind TLDs Domains seeing shoppers a just Great, on Thanks. dotcom, will question to can I bigger opposed I of us expecting kind the business, are take year any for how I dotcom to popular? guess that people year? price sometime And impact coms you as towards to as the So it's the the trickle flows own then generally price Verisign those think think increases next which dot think thanks the the

Aman Bhutani

you, Thank Nick.

giving to of the own, whatever about treatment we we or pricing your We own It's price customer. whether of our registry TLDs side in the I of customer know, to TLDs that. question On the certain is we merit. may -- as -- on side we'll do irrespective Verisign in to think we quite preferential best do on value their sell That's the that don't work registrar nuanced. our terms increases, works you not. well front All what

pricing by that's different have populations. We customer

have pricing that We we an as different by that's differs pricing geography. example. We're bundle when

always truly look optimize. that So options. have to makes to always we we the as time, We're know, an you over passed if and price GoDaddy, are realize registrars have experimenting looking opportunity with And our we to And pricing. customer. it sense, Registry as increases at

I'll to turn do you that. on add something to and maybe the Mark to also option And But for option have dollars. the We have that. the we Mark, look to profit opportunity it for really pass if optimize have to not price and

Mark McCaffrey

share to approach market any versus Aman. it pricing do at for profit. if just Thanks, pricing pricing And solving use as not for But us, We share. we an on profit, broad it Yes. on increases. -- go at we brush pricing, One, are will do with we enforce of QX gross market wasn't for to we to an a just When really comes look impact market-by-market gross FYI. look basis. type

Nicholas Jones

it. on maybe just and I maybe first different the question if could Got And way. say a it follow up

a statistic handle find you've domain away. looking the for of right like searching XX% don't think kind a given they're for I of people that

more guess if and purchases are you with that they TLDs was kind handle that options the more of with next. So they tilted may I know more don't that want maybe be the I present where clarify you ends or dotcom up towards able of to helps going kind own. it yielding I

Aman Bhutani

TLDs. that, right. dotcom to looking they're already the results AI options, Yes. lot learning to it's is And taken, options already because to for machine Nick, the improving give A get What customers our specific we it's customer we don't include to you're quickly use somebody's just respond more it. and and of more, do we're search. pizza.com, and got the very where search actually those

not customers about up letting It's the providing the it's with really TLDs the make with options choice. own. the then high search So is about different and on what we those really might as TLDs and customer it what makes sense search

Nicholas Jones

thank you. Great,

Mark McCaffrey

I'll they that, not add get to help does them present to And Yes. just Aman. us otherwise. that able Aftermarket names be to might

driving growth as our some well. is it So of aftermarket

Nicholas Jones

thanks. Great,

Christie Masoner

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

Brent Thill

Great, thanks.

As mentioned it to kind And can I'm what the side? quick the from you context then just this of trajectory that there's had about -- And -- be of curious relates curious, it like to you may follow-up. I historically you the rebound? a seasonality, hearing in me seems a rebound. put when I'm you're think

Aman Bhutani

GoDaddy Brent. obviously, a we're Search we example. points here. of access that data and okay, to population there Sure, universe. how is know that's we're looking the and the at site, our in percentage what gross coming ad couple as parse evolving. that But Google shift of looking GoDaddy. I of And a overall overall okay, it at at then becoming demand, is We're we sort looking customers for saying, There or have And too. data, approaching say, And actually folks traffic changing customer and an to you

up over see signals our do see what it in months, the you with So guide, four, are last in and data. around what the the assumptions match broader we in five macro we see the

so XXXX compare answering -- on a big it does what cycle, was do we how to question very the In your demand Obviously, on. it large past? and cohorts was terms of

than against is and are in So with XXXX. what really XXXX, XXXX comparing line these signals more demand we're

Brent Thill

And factors, at a and lot a it's bookings the great. the there's quick revenue, and delta follow-up just I I Okay. mean, financials. That's never, been I on wide know think, between of but X% this mentioned now? is FX right know But converge. seeing why so XX.X% it is the -- so divergence? I versus on what they're we to are large? going that And you Why

Mark McCaffrey

as look cycle. of at I kind a it

We divergence. are a -- we saw

being out large that being time, you're deferred cohorts happen we a now. They starting them we're we're And that seeing revenue. the But way. year. do, result equal last like smaller going expect see it's had They're cohorts, in And right Now to we now. they're you convergence now. by come out amortized seeing divergence into went over other to to and replaced said, as back our

Brent Thill

you. thank Great,

Christie Masoner

line Our comes Stanley. next go Elizabeth, ahead. please the of Elliott Morgan from from Elizabeth question

Elizabeth Elliott

for Hi, thank questions. so you much

for So I'll the Payments? eligible on fees little How try to could new color dig kind us bit are opting and and share savings in on providers. about on versus color a users? you XX% Any of of mix super other GoDaddy Payments many with of those helpful

Aman Bhutani

Elizabeth. too talk really existing versus about to Thanks, users. new It's early

big you to know, As a lot launch customers, OPEN attracted called did folks it. see XX,XXX plus got we XX and a of

in of sort folks how their manage to thousands the engaged online their talked get sessions of we how detailed where off-line marketing, and platforms. and do have and We into about to big portfolios markets

it's but -- And very, early it's specific So unfortunately, any early. comment numbers. on very all too to

Elizabeth Elliott

Got it, thank you.

Mark McCaffrey

great early the And excited is really get We're seeing. we're it. we'll to what add a just about quarter launching data thing a quarter about early. see I'll Elizabeth,

looking So Day. some to on we're the adding really Investor color forward

Elizabeth Elliott

know just the then for goal I that on XXX,XXX Pros. you're kind on Great. It's Hub. follow-up Pro me great for see itself is Hub quick free. ambitious track a to that of the And on

the attach those order could kind to to users just of the you more products provide to in color of any the opportunity? on monetize Pros So ability grow mix and

Aman Bhutani

Yes.

As Pros web you X.X platform. know, we have on million our

of their They get piece and percentage some very, a opportunity giving Hub bigger engagement optimizing And in, get could a these launched that places support to what large Given very rest. a us forum. lots lot we regular where the We be with jobs Pros what wallet of monetization focus on time, ways the we them is the Other have access WordPress, hub a multi-sites. them there. know them able The know and to do on customers give and of a focus their Pros. so we're with experience basis, the for built course, their looking have all on to share we of Pros to about with experiments, of businesses ways that's a to we Invoicing. better you'll for growing we're see we GoDaddy business. But it's save ultimately, is have them to us,

within lots creates tool. it good stickiness, Hub. creates with We're offers It So experimenting the that's of special also also a but economics. some

economics we with the experiments for also to give of where to with what we'll And them a and piece can -- try see us. just say, versus it. So GoDaddy it's hey, encourages sort you'll Those and something Pros those are to is see, let's this of create buy else. try if types something product, of idea there sell share you the you

Elizabeth Elliott

thank you much very color. Great, for

Aman Bhutani

you. Thank

Christie Masoner

the Sterling, please Next Auty line question ahead. Sterling go of from from comes JPMorgan.

Sterling Auty

guys. thanks. Yes, Hi,

give So I'm color you could trends about. that on you if talked curious some us the geographically

look how sluggishness the the signs into back versus versus XXXX, improving words, other that Europe that's in cetera? in So does et Brazil, turning U.S. to

Aman Bhutani

the a COVID, arc international environment truly lot UC there Thanks, The a covered I as demand actually see the in Sterling. bigger and we've those and and portfolio, about small. GoDaddy we overall, in that of the follows It that's bounce But about sort see past bit well. similarities. U.S. talked impact around of Having from demand said we and in that, that COVID is geos. likely in a geos, certain talked little

there specifically look isn't overall significant So the as And really to out X trends the impact. at call I similar. any portfolio, if are having broadly, geo

Sterling Auty

And follow-up side. All right. one Great. then the on Payments

given You experiment with opportunity pricing. the mentioned being to

announced Or that's is fluctuate? want experiment the test So something to is and is bed pricing could you that lowest a that you just what that to of that with? kind mean it

Aman Bhutani

and that's new But X.X% SKUs opportunity Sterling, the pricing we of Payments. the plus have as $X.XX for you online, $X.XX the plus to that in-store know, including a these. for announced, bundles, value build lot pricing X.X% and we

SKUs suite the that more. looking where that us those you the those experimentation how for full experiment you'll see bundle be offer we the is the pricing So at are if we the when things things do we'll hardware, that new bang, areas force differently, the price will, and get customers

Sterling Auty

you. thank Excellent,

Aman Bhutani

Thank you.

Christie Masoner

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

Trevor Young

we lost have might I Well, Trevor. think

So Naved, please from Truist, ahead. are go available, you Khan if Naved

Naved Khan

hear Yes, thank you. okay? Can you me

Christie Masoner

can. We

Naved Khan

Great.

$XX different GMV can rails some the maybe GoDaddy on over maybe -- gradually move levers And with own versus what through to do that? what the pull touch of to Poynt, are can your Payments just billion maybe can So the of you going kind opportunity this on in you the are you things legacy?

Aman Bhutani

Thanks, Naved.

$XX As are have channel at very you success. know, GMV using Poynt this a built large GPV as its a tool set. about does thesis customers. would a and to That customer more directly having payments. what And their of obviously, Poynt success part show that at to partners directly is and base, customers of look success customer our use partners, us want So to lot for sell customer banks time, predominantly rails having scale as more and over be billion through flowing direct of selling right? that is But I GoDaddy we those channel customers,

Naved Khan

kind it. If mix? going just how follow-up, quick efficiency, I forward? you marketing at channel have might Got that changes made look should seems sequentially. a Or improved if of And about a we Any I then like may. just this it to think it

Aman Bhutani

into of back is the demand. And wanted for we returns Yes. pull share want didn't voice. hard we on wanted that here what was year, lean And pull marketing actually to as that Overall, came last so down over to very our ourselves. we you're high, demand to We on demand down, happy seeing demand maintain really the marketing spend. the as are we with

let marketing pull the So spend demand we down. the

You're efficiency. seeing some in the that of

get channels, same. doing we're also remains profile, channels the across on no broadly less or but bookings comment some Overall, You're more on. in especially on we that specific our way optimizations the seeing demand

Mark McCaffrey

to add that, Naved. I'll

as just expect question we're it to be flat asking well. We that for QX, case in

Naved Khan

That's helpful.

Christie Masoner

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

Trevor Young

thanks. Great,

I on two, if may, Just Payments.

for of adoption sounds on refinement? days, It like overall OpEx interchange and about fees, and higher it's but some versus other then cost unpack resonating what What talk opportunities feedback POS maybe margin, maybe the scales? fraud Payments, savings Mark, with the that terms early can margin the But on comments seems it you well be as the OMs lower fees to profile. over kind helpful then initial help acknowledging And revenue were your gross on Thank you there us First merchants of needs like there, can of and in lines time. security, you. devices?

Aman Bhutani

on introduced Marketing that the about GoDaddy had Payments, we've previously, I seen we talking positive. Payments. shared + the Trevor. you been Thanks, Omnicommerce, just in Websites adoption On One thing the products feedback if good customers flow. I'm talked has remember, had Payments we Payments. on from not about And GoDaddy

good adoption see We to continue there.

months. holding shipped devices And getting that few So the in over we OmniCommerce, related other the of U.S. it's over numbers know last are the terms been to all

feedback it's to you'll good. soon. So them see except comment too the on But early really that customer specifics, is

Mark McCaffrey

some I'll Trevor, just of without add, And that into getting the breakdown pricing. of

we to on data be Just pressure a points. see our One, the of money level, the it our little don't expectation, And bit hardware a couple payments. of we'll gross normalized at accretive plan going should margin although the and lose forward. to EBITDA

Trevor Young

Great, guys. you, thank

Christie Masoner

over I for us closing will for today. remarks. joining to Thank it turn you Aman

Aman Bhutani

Day end Investor with appreciate a you to our everyone able you We Christie. thank deliver quick strong and us all on the you I for over your be goes GoDaddy. to seeing forward you questions. to I'll time Thank February. just lot thank GoDaddy much. to in teams. thanking A you, Thank in for at these look at joining. very you with results you the big and A to engaging quarter,

GoDaddy (GDDY) 4 Nov 212021 Q3 Earnings call transcript