GDDY - Earnings call transcript Q4 2021

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Christie Masoner

Good afternoon, and thank you for joining us for GoDaddy's Fourth Quarter and Full Year 2021 Earnings Call. I'm Christie Masoner, Senior Director of Investor Relations. And with me today are Aman Bhutani, Chief Executive Officer; and Mark McCaffrey, Chief Financial Officer. [Operator Instructions] On today's call, we'll be referencing both GAAP and non-GAAP financial results and operating metrics such as total bookings, unlevered free cash flow, normalized EBITDA, annualized recurring revenue, or ARR; gross merchandise volume, or GMV; and net debt. A discussion of why we use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalence may be found in the presentation posted to investors.godaddy.net or on our Form 8-K filed with the SEC with today's earnings release. operations, discussing our forward-looking strategies introductions future with to be those which are and we'll to achieve respect to approach desired ability related financial future acquisitions innovations; matters and today new to statements, include include objective capital our The allocation; our integrate product and including results, our synergies. to documents are discussed in our filed These the that forward-looking in uncertainties statements risks and are with subject SEC. detail the forward-looking differ materially from in those Actual results statements. contained may Any XXXX, statements on required call to events. forward-looking a no we that this as of of extent statements undertake result are make future as assumptions new obligation today, based these or to by the and on law, we February update XX, except information here's With that, Aman.

Aman Bhutani

all Christie, succeed joining we and and At GoDaddy, helping you laser-focused owners small business you, businesses. today. thank remain their us on micro grow for and Thank

creativity strong show customers a and a were and continue our to results through Our end year. the financial pandemic, resilience strong to QX

As significant excited our have evidenced in commerce aftermarket, ended unlevered in providers. we by offering. QX of in year of integration the of + we GoDaddy we driven OmniCommerce than demand. revenue. billion free Websites Poynt the best trust sustained execution, deep in with and in have customers the tier I strong customers, and in bookings, by of a demonstrated flow the the am market XXXX, XXXX, first delivered being We by established XX% pace QX, growth of We quarter with care acceleration revenue over the cash more of the And other unyielding $X outperformance XX launch Marketing chose NPS back GoDaddy's million in in Payments and a with at look by the XX-plus that

$X in ARR year-over-year. billion for today, we and of them our a We broad-based Grow in announced And that will his program continue Create Mark suite XX% growing to cover strength share drive buyback products with section.

impacted Omicron the customers the started In as were to U.S., While more the we late bit, in to customer the demand our sick little employees. out our more employees and due quarter and results, pandemic. strong delivered impact softened a and financial show

impact might expect, our absentee the the higher you As biggest care operational were of in rates organization.

of world and financial in Operating this excellence. As the the Chen Early care is at to that with staffing have around we executive Roger has to years results impacts Omicron leadership with teams to limited place, as X.X footprint Investor Roger's have Omicron be well-rounded cases focusing better tomorrow. the Roger been in to our Chief strong confident you named on in complete has to by I down, With appointment, front come opportunity GoDaddy for and are ability we our him. and have our and and excited and about GoDaddy a expect seen QX of to large led we execute the Officer. operational expansion we been with of over Day GoDaddy team Roger started XXXX. meet business. international excited Domains year, He leading most happy our recently, am our to share in

priorities our will I cover progress X always, As on top today.

to remarkable midyear GoDaddy launches the Managed involved. We product several Payments Our integration, the Poynt commerce top be we kudos year priority acquisition, continues the success September. launching Websites + all into progress in with product WordPress, teams launch and in A the OmniCommerce Presence. made Marketing to through driving for have and completed

product doubled of to launches the the tested we pace customers. well. our being rapid We intend a which continue We U.S. commerce also with recently as and Commerce SKU, percentage launched of of higher-end currently size team, in is XXXX a

in offering a in OmniCommerce our a giant ability step experience. with serve of September, launch seamlessly our our intuitive the forward we customers to took With

are experience, early right We're And to have is this already anywhere. than are sell are and at the we Payments we X/X all Payments Managed in WordPress XX% GoDaddy We're of out Most customers. Payments. anything Connected Marketing early choosing and gate, the Payments. signs. online have sold XXX seeing in GoDaddy devices this tens are choices, And Commerce and to customers tier, that customers stages pleased GoDaddy thousands need of of call Since over of nearly share of of to customers customers' pleased Commerce. received of we're some point-of-sale from level have attach. Our we the the where choosing of the off-line applications launch, good commerce Websites merging that customers promising choosing + is in be GoDaddy more over already X,XXX

difference We double for customers our customers' have our traffic our and when of profile. increase also Most partnerships running Google, or and with real reach a customers. rapidly Instagram their These making a their expanded Facebook to Instagram integrations are our Facebook website boost online ad.

stores GoDaddy placing at media, number + Additionally, orders. Marketing increase added least social who Xx customers in to Websites their saw customers of

new detail GoDaddy presence where sites connect Since increasingly with least commerce of ways link QX, ubiquitous most our TikTok, customers to and the presence, account is for we know to platforms, that customers these new we'll websites the customers then, solutions up various of what different X show are discuss for customers' need, the TikTok added need. the customers important customer with we interconnected We their they platform. has customers expanded at their link how and focus have from Recognizing this platforms social X & tomorrow. way XX% link in the ability our to platforms from to in which we their customers, Our all And show Discord. more being to social needs websites X/X Twitch up. online call popular. to their they

Social tool the of them Site, Social our a essential clicks, become business fantastic bio top Biosites with Studios their to to Consistent driving goal of Another GoDaddy meeting tool customers social helping our with an with first this site excited support by we're social-first traffic have And for their few customer Studios launch need up Site through where are, grow empowers capability. them customers. content. a they is GoDaddy to set Biosites. just entrepreneurs

Our customers' and and channels customers are cumbersome respond reaching them Facebook more. different check to Messenger channels, much and various through many on consuming. is SMS, time website, Having to these chat

Facebook time, quickly access the it. are jumped and and And and can to can bots fall platforms over to place in help enabled quickly months. enable or acquisition customers sales their is messages from they voice for miss organize unified updates, of opportunity. pulls in we for more + customers a Conversations via respond love feature we answer Marketing use customers messages feature more. conversations feature line, messages website, that and expect help Customers that can on messaging all the available showing business X immediately, Instagram customers mobile convenient the Usage inbox Marketing. inbox. in With automated to convenient Re:amaze multiple Websites questions go. and this customer's app called inbox Messenger, also few into a already from they It X easily and next Websites more never small access, and This shipping This saves the chat a order about +

pace Create higher products, customers. and engagement share competitively, grew we future Managed execution priced We be with to of it continue and here we to this of solutions increase customer continue and metric opportunity and as expect features an Websites we increased consumer to like believe giving us present success pricing opportunities GoDaddy's million well. capturing higher build surplus, The is our short-term WordPress, Sellbrite in will our Grow we as and offer funding indicative + of the and Across with GoDaddy are value also in Studios, greater where showing pricing Marketing, Our $XXX future in measure is results. XXXX, high-growth XX% which year-over-year. conversations, areas innovation approximately ARR in

on priority, Moving our Pros. second to GoDaddy

base our number supporting we of one are working you in Pro have be Pros prefer customer are supporting large them we As X.X and business. WordPress, our majority them we are a in base, engaging widely million to to a committed of deeply hosting customer the of front over and that. opportunities exactly in and us, WordPress. Pros large on our of More continues aware,

MAU. and we our goal new more shifted the While achieve set incentives, to Pros to focus we of ticketing, Hub. or commission-based percent-based QX, priority in feature an for launched register set client In we in Hub, monthly and reports XXX,XXX customers, users, pricing reseller aggressive our active steady quickly launches driving care a Pro

increasing customers, our demonstrate launches, a While our of provide it's Pro new to for features value on early all them. differentiated days these to we create experience commitment these the

with WordPress us. and Pros both use customers products Our Managed hosting

Pros integrate to them our the resulting in for greater them. efforts platform upgrade with performance Pagely, key improvement provide improved well. a increase WordPress, will their improvements. Managed server with best average And relationship optimized NPS across XX% rates to to Hosting preference to is new of offering a Notably, as configuration, we we in over continued response best WordPress times, with to show which the In started As for a started has show XXXX, significant delivering both experience our X% Managed the a and renewal couple customers quarters.

innovating is Our third priority in Domains.

exited another and the posted volume business driving by significant remarkable led of we year, aftermarket increases in demand size the as market transactions. Our both quarter,

Registrars launched While Registry Reputation growth contributing a in Protection business. Registry primary Solution successfully remained GoDaddy the Domain strong growth solid, to

the .tv while valued our significant as business Domains other We The be it products. of offering serves also bid our providing exclusive TLDs. customers often extended of the as by to Registry continues introduction assets a winning to Poynt first attach launching our our issuer to to be most one

share will Day more this tomorrow. on Investor our at We

a to on Investor key tomorrow's content of Lastly, some preview highlight in I the front Day. for as wanted some marketing the wins

that the gets more been growth. And the dollars beginning. website. us that's efficiently. marketing of One team on they The was conversion experimentation-based last improvement and by building hard GoDaddy our work set investment following of at and a continued working areas a world-class and customer We've sights as over year its also conversion. software only had once on incremental the meaningful to site, improvement in teams the our for realize approach, spending to We continue goal development know the engagement

continue turning to Over and Fara tomorrow to on take welcome make a the and couple in this be decisions Day areas our efficiency I you understand for even discover with to channel marketing spend like months talent a journey our able to also to leadership capabilities been at do measurement new add excited place, weeks. moment embarked science needed for for to on strengthening marketing tests to and I area leverage opportunities be has we in advanced the us spend, better Day, last key testing our to of our Investor execution few incrementality faster to a wanted effectively. cover off it more Investor tomorrow. if to and means marketing our will a data

presentation discuss our strategy, strategy, innovation go-forward long-term capital allocation refreshed initiatives, We guide. X-year will revenue and

We are against delighted our key you spend results demonstrating In are we're of that and to delighted appetite in release product the with additional momentum with more it this for our all quarter initiatives. with the even signals We're customers tomorrow. the of progress time adoption. pleased that early and our eager an biggest yet closing, through GoDaddy's

industry driving progress a of disciplined With that, customers, to bringing profitable solutions focus delivering across allocation. our durable cash on and committed innovation, top flow robust pace continuing with are important We entire line capital Mark. to the growth, here's innovative

Mark McCaffrey

XX% long-term introduce results. first and year over full broad-based to on next that, forward everyone hello. with with and results touch for disclosures connecting our let's XXX, revenue days. new new I renewal strong outperformance net exceeding XXXX on in as new am and as Aman, XX% at I'll attach and X move retention and Today, ARPU our year-over-year provide strength an aftermarket. Day, XXX,XXX the With additional we our initial I'll fourth outlook XXXX. for grew financial Tomorrow, rates. in quarter metrics. XXXX customers Investor Thanks, added revenue and to looking our to revenue to Total our well guidance XXXX increased and and renewal continued in billion, XXXX $X.X guidance

with achieved to year-over-year, in million quarterly a new guidance. quarterly approximately XX% growth up Moving renewals. XX% on of the revenue revenue remainder registrations basis of a quarter. Aftermarket and Domains currency increased $XXX in our GoDaddy grew QX the contributing the primary fourth $X International acceleration milestone continued year-over-year point new with in grew driver X% strong revenue of billion, exceeding tailwind. revenue on was attributable of the the in to GoDaddy our results. XX% to Domains year-over-year $XXX X this nearly reported million. Presence and Hosting and strength line, X/X Registry to

Create We QX year-over-year. Grow and in ARR growth drive Hosting Websites + QX Within legacy grew XX% XX% demonstrating digits. XX%, grew million, Marketing. hosting Presence, and continued to opportunity ARR Grow with Websites + single Commerce and Websites in our security Create Commerce suite, $XXX + low Marketing And surpassed products ARR that growing and more specifically, Marketing growing our year-over-year.

more becomes growth to of and for suite. Commerce multiple paths continue disclosure products evolve we'll in products, as Commerce we our pronounced our As in more this have

strength end aftermarket, the of fiscal quarter continues continued strength margin innovation increased Product margin. continued mid-XXs with to XX% consistent attach quarter. billion, a for was was in across currency Bookings ecosystem was their e-mail and last and constant including $XX to grew up-level reported billion GoDaddy customers mix, growing to XX% with and broad-based of as continue maintaining year-over-year year-over-year. on in million tech solutions in revenue productivity product accelerate Business strength branded $XXX strength company's our we XX% XXXX, $X.X solutions. approximately basis. Gross the discipline. the drive particularly on Applications as year-over-year to down in gross the seats aftermarket. pace to was continue in add in Investment while and Growth across slightly GMV improving overall annualized low the dev Lastly, categories,

another footprint. office restructuring This our gain and resulting office to in $XX continue in million X other office offset to of One other get remain item G&A line. the closure simplify below from charge continue during expenses quarter historical in Arizona leverage of that as a We $XX the travel and last a QX, physical we we as is levels. the Arizona to of note million offices, and consolidation onetime recognized our sale our continued

spend, made remained our we the As consistent we elevated in although marketing our lapped strong earlier, noted Year-over-year Aman drove deceleration a investment QX. saw our capture with demand. XXXX in extraordinary and spend we the in efficiency in as QX investment to

As we refine continue our spend return focused marketing to engine, environments we adjusting marketing remain our macro fluctuate. as

of free our $XXX hiring fourth the from quarter expenditures continued and growth flow million, margin resulted decreased to representing Positive in $XXX growing of for with of benefit infrastructure from outperformance. normalized line our guidance. as by estate Full flow investment unlevered as the capital to XX% offset continue and corporate well year-over-year. travel. in EBITDA year-over-year OpEx at we reduced home year million, growth work for cash lower leveraging impacts Our grew year-over-year quarter disciplined profile real in million, as capital the and XX% was and profitability, top Unlevered working line XX% free was cash $XXX

The and X In recurring X% of exited range our at the basis total billion, we $X.X acquisitions capital fueled completed midpoint leverage the Xx. balance of our nearly enabling with on $X.X and trailing us billion. XXXX, and landed liquidity of model strength outstanding of equity. to Xx strong cash business resilience to Net balance a and year in repurchased net On priorities. X have debt address sheet, near sheet, targeted a XX-month allocation our nearly the below $X.X we our billion of

In share free to reduction expected count. and of of addition, through back utilization X cash XXXX. announced to shares next approximately XX% the This $X flow represents our billion we a in intent drive is material projected years of our today, over buy our

announced this to also to million we launch quarter, shows $XXX new a use aggressive which of ASR the commitment We authorization. $X our repurchase expect billion

growing We time. are our value flow the create cash share to increasing and count we by over reducing committed shareholders our free for

Now I'd our XXXX. like provide to for outlook

million. represents billion, growth XXXX, $XXX $X.XX the $X.XX expect the range. year-over-year In the we total total within of range We the of represents at X% to midpoint range. XX% be of billion of midpoint a $XXX revenue targeting are This annual to of million at growth revenue to QX which

cash We $X.X or unlevered XX% XXXX of XXXX. free flow approximately billion expect versus growth

$XX be capital were SMBs, and lot the a interest payments forward-looking of of of income geography cash approximately affected million, can $XX payments line has million. $XXX expect of impacted by million of expenditures COVID by We tax pandemic type. of challenging. The time which and market, approximately businesses in on approximately years has benefited varied that Because variability customer based guidance this or global

comes term. targets potential we of Tomorrow shows call business for important to that makes Investor see Yet multiyear discuss off at a and XXXX, of the shareholder tough today guidance near continued we're year which will in will picture out in a As and the value levers, such, momentum. which Day, it's strong we comps outperformance it better the growth provide providing create.

We committed the hold providing effectively against stated and the business accountable confidently, to business our need for model the us to value you information are executing objectives.

In discussing by we team. I and strategy with our time end metrics, hosted a the long-term company's you Q&A updated the multiyear day innovation addition management incremental to will with mentioned, and our outlook. spend allocation We'll strategy, initiatives as and tomorrow capital key disclosures

results remarks. we limit have that our Investor questions today our information ask in we Day and we've tomorrow, provided XXXX Given you the to prepared

call then. information have leading and to I'll ample the details over be who into With share that, Masoner, Q&A the go to will time have Christie tomorrow, with to you we We hand more will

Christie Masoner

comes Instructions] [Operator of Barclays. question from Young from first the Mark. line Trevor Our Thanks,

Trevor Young

Great.

'XX sort double-digit I there to was as of which that the I First, from Domains, expected core expectation strength were think most commentary in What new tailwinds the to sizable abate? unlock in service in Reputation specifically started registrations? uptick new that that And the better Obviously, pointing XQ. XQ quarter, there there that launched? think was Domains of inventory some retention of relative the aftermarket low was to you drove on then Or were the an growth. last from growth in was or Protection within Solution incremental outperformance

Mark McCaffrey

and Thanks, you. see Trevor, Good hear you. to to good from

aftermarket. in momentum be around at quick in more seeing on the today marketplace we're outperformance We our aftermarket. at real looking the excited the Just couldn't

deals and exited we an both volume As a deal year, great size average at with the momentum. saw in we we're uptick exited pacing we and that

a a Just it's business. transactional reminder,

be cycle the talk on any our so in visibility can more rates excited the to saw going retention related more market strength is those, Domains, the great out we we to But limited. remain short in see the little it but On continue So sales the at to bit period board. platform. tomorrow, strong. momentum couldn't we're as be Customer a demand we about across

had added noted. that items also the We Registry from benefit we

the across So it's I aftermarket at big it across when quarter, but saw we clearly pickup, broad-based, by look was strength driven board. the the

Trevor Young

helpful. really And just quick may. That's follow-up, I a if

customer just Aman then seen think quarter you And customer earlier in the in year, year? in that of the to X% Omicron. in have about improvement some I the that you the growth talk noted can kind how throughout demand trended versus XQ uptick? related softness On maybe later

Aman Bhutani

be as continued as I said, QX limited jump impact. going in it has Yes, remarks, But in sort in that, to terms we I'm Trevor. noted to Omicron well. did XXXX into have I January of impact. a expect of prepared And that happy as demand of slight on the Yes,

sort new XXXX, XXXX, outperformance of Just was of might we full the of of had X.X sort customers in just you year the XXXX reflecting expect, million XXXX. growth forward in in the given -- a net a on reflection huge the as

Christie Masoner

of Jeffries next comes Our Piper Sandler. the line Clarke from from question

Q –Clarke Jeffries

with nearly reflection see maybe just Payments. on what's those little customers XX% WordPress customers surprised A most of is that one Managed GoDaddy First resonating are adopting a convert. to

what kind of them kind Just outreach was what or GoDaddy? was to the of wondering of the sort reason had any on those method conversion? And if you insights prompt choosing communication customers with the for

Aman Bhutani

Clarke. Thanks, Yes.

making about the And and choosing Just see through options is GoDaddy Managed a breaks And course, offering. talk is in have WordPress on super that, they really our what's focused the sort sure XX% for and we're of of XX signing think we the sort we're have customer reach what we're of that's are driving continue other for percentage that it, for the a to pricing and when up terms is we customers sort manner that market. at Payments, Commerce and them Payments to us surfacing in us. they that we GoDaddy excited of XXX to tier competitive helpful We that customers in clarify, customers a in Managed team it. players, customers point attractive of have been allows about understand WordPress over today, of price

Clarke Jeffries

Certainly market product And then for the higher-end SKU of see Commerce particularly maybe that people higher-end opportunity the testing the as encouraging that for to was to the effort, follow-up. with in interested the one to that and the side could see commerce invest the would of go a where appetite sleeve Great. bracket you if the both was the solution, tier. maybe like I SKU? you in on help you I wondering side. frame

Aman Bhutani

in of little won't as of cover with their stores, about bit, online not table sort store. more of integration Poynt. it their the the But physical -- sell on a a I we're lot to now quite in and today. value a only it major detail lot just cover Yes. of media quite bringing on so platforms We'll we can sort social in tomorrow, actually GoDaddy talked the sell or all Customer with it

together and all very it a number bring Hub things the make We like simple. Commerce that have of very, it

we're in the of actually the best a It's up SKU. doing that available packaging higher-end into U.S. what is So now

SKU. related now sort touch because excited see. so website, to go we're to times, get you sort you the to AB and if more adoption sort of a tomorrow. that we test about try on But why higher-end I few of Commerce Connected you Commerce will right will of you see not But may for If it's being what

Christie Masoner

of comes question the ISI. Jo-Ann line from Evercore next Lee Our from

Jo-Ann Lee

Just -- outlook the the the of QX in to impact Omnicon QX. be I the on guess you you that said limited where kind expect follow-up

little of about right you gives to in kind that If seeing pointing upside that direction? you And could any the growth that more about you're is we assumptions a if bit what the color can can where Is year anything guide? full projection? segment talk share? you there confidence there's around And see that

Aman Bhutani

Jo-Ann. Thanks, Yes.

And as in shifts the cases to And Arc years, behavior where me about of Let of what a started cases and first take both Mark, something our those X if to Mark. if part, I'll things for see and we come sort COVID over will. expectation get employee the saw demand. the you. you second with I'll of of back we're sort our care On world, base, down, at especially employees. know have our here the we is over looking to we we're too, bit think turn of a increase, turn rise whereas normal, data you in we the is with will own cases. the it of And sort we saw remember that years customer we similar part Omicron across the Omicron, the seeing talked as charts couple well second number as couple the experience over And COVID a of little you last quarters, as ago, of where had do. And

Mark McCaffrey

tomorrow it, our going ask repositioning about to we're I'll Aman. our a of some Thanks, of and Yes. segments pillars. product talk lot

And in it short around and average great transactional, going I cycle, provide been question, the upside the can the aftermarket. with right, on we Having So it forward. tomorrow. business size upside saw that, we hang tight don't sales that if okay. with that's transactional lead want story volume previously, on give upside, both we're with away thrilled mentioned as deal have said some the market a couldn't I more because and momentum seeing in is it's to a

about Now have But generally how of we there. that's that, we we're to question, don't the to sight line in and your excited answer upside guide.

Jo-Ann Lee

efficiency follow-up of like maybe driving probably Great. marketing If for we'll bit marketing can may, QX? leverage efforts. It marketing. what's the you this quarter. just a Or the and the marketing CAC I trend this mostly guys a environment, that and talk talked quick looks just through leverage I you about little the talk if more know on Is spend about QX the there's quarter?

Aman Bhutani

Yes.

Let me Jo-Ann, approach line maybe on can Mark sort touch on of and other of the touch overall, to items. sort just the perhaps leverage marketing the across then

Our down, of with as fast. that too approach not GoDaddy. with spend been We we We was years customer to and Commerce. voice of as it, into for to but entered wanted topic has make customers maintained sort when the that our to bring down over you demand down want demand. the had that of to well. came marketing couple wanted And But we'll high, last to demand sure we've we drag actually on the share demand wanted more share into didn't tomorrow knew lean make we sure that GoDaddy the

of know, us came about sort -- the saw on the bring for spend down moment. as And the down. that just terms So Mark, a the items, talk demand line leverage demand could of you if that I in you don't

Mark McCaffrey

ability to in And great marketing. great attach, our sticky. continue is that durable see because Yes. about to is revenue increasing do model our and can generate our leverage our and so and cash And we better get business ARPU thing the we

in to see continue that We care.

ability out leverage just top of On that, out upsell get of As our our relationships leverage G&A. of we grow, it. better get will cross-sell, and continue to easier get and we to

to a cloud. look we the As simplify to investing lot in footprint, our we're moving

shareholders us return growth. the model again, creates as a both and to agile about durable is cash flexible as I thing it well our our in it of lot for to So leverage to invest love operating

Christie Masoner

Our next question Ygal Arounian comes from the line of from Wedbush.

Ygal Arounian

guess, I back after COVID. to getting mentioned normal you Aman,

It's demands even different. Omicron normal. business and investor framed the within the of within overall What normal? been how have space that, of kind wave year, of the Whether demand, outlook follow-up. in over we'll years, that just do on are there's it numbers new the broadly the what back the you it's coming framed new touch But I see been come sure just should parse of one from And maybe might guidance, down is or hard outside the this out this. be the application normal? seen just not overall, of just to we but tomorrow. expect? So or the term the kind levels kind long I'm demand forward concern about have pulled after We've the kind to then

Aman Bhutani

Yes. I'll yourself, Ygal, on very or able it how as pandemic you to to how or ball let guidance, asked impact the a crystal businesses. small demand say really hard the touch be framed And no looks Mark continues question. you demand the but to

unique bit business, I way It was looking we're that from different. year. quarter it at. think different at was was the quarters, a XXXX and a just hard is disappeared seasonality every look for very multiple the very and very, to And

But saw. demand sort our we in to I the what call levels points we pattern used see be XXXX more as normal a normal bit to tend when are normal, what the see is -- in to very Now I the seasonality companies course, that lot to more business. back of of predictable a and way expecting data demand the say mean And of seasonality hard at it's business. going I'll is more

Ygal Arounian

understand just on the want Okay. the make follow-up, Payments And to then adoption I sure correctly. I

Payments? and adoption new of How are about saying overall Commerce pace can has what what of that the So are taking that been think at or XX% we be? you renewals hubs it GoDaddy on kind of should

Aman Bhutani

as existing we Payments. + see or we GoDaddy and it's to going those we We Managed Yes, WordPress through too adopting to But rate talk an should GoDaddy, early Ygal, base. customers new -- coming amazing GoDaddy our think have the about do right? which Websites absolutely Marketing they're Payments, at product,

X literally months into like We're a great We an to too Payments. with there's our like or and but that. it's early have existing pricing, GoDaddy great cycle about talk customers, opportunity things renewal brand almost

very So it's very, early.

Ygal Arounian

might big think of We is Okay. the X customers. should up to Payments kind GoDaddy cycle previous renewal people picking first in months start where another

Aman Bhutani

have definitely little share you. Yigal, with we'll When more do a we on it, bit

Christie Masoner

comes line question Stanley. the of next Our Elliott Morgan Elizabeth from from

Elizabeth Elliott

want in user. quarter. dig on count overall got per for the strong impressive. the We monetization on customer first time. to and And don't was growth pretty the Congrats the ARPU in year I a

to on existing how to base versus customers in per color call some trends what uplift any of get landing of the wanted you're seeing out customer the new customer spend I type kind expanding? of and behavior in are So

Aman Bhutani

-- it. with a I'm we customer, would last continue happy very we're It cycle, the see versus previous to is happy X-year accelerated very And particularly ARPU first you Yes, to of Elizabeth. instead overall in see new with say just we're think new consistent I bit And to patterns customers. of happy see that, we take years. When growth. the of to question, cycle on we the if customers, jump about your part take X-year the sort

you, a course, continue for products the Commerce. attach And show customer more offering we lifetime how we TAM GoDaddy. get products, Our greater more as the as to is as Commerce again, we the value of we That's with to tomorrow and higher-priced ARPU maintain that goal, have into with will touch opens just growth. of bit especially that why this them, on the type the of to of up well

Mark McCaffrey

the the ARPU add and again. and Yes. Really of and return future to the to invest talk shareholders. to going of model excited with and durability the into that, the that flow Elizabeth, revenue momentum. showing the and Couldn't customer we'll predictability just And the thrilled forward the of good about I'll to and the more cash have just strength adds be the it

Elizabeth Elliott

Got call And headwind it. limited wanted you the to impact up guidance? FX growth follow-up a headwinds, guys then other more to of color just the to highlighted, the in QX. Any on that on I that Omicron to tailwinds you Omicron QX? QX any Or like kind quick

Aman Bhutani

add terms our Omicron the we I we in base. shared Elizabeth, of Nothing cases, see piece, what on in more versus already to see just the employee what what in

care calls We a a have large customers. that of from having of very lot benefit gets organization the

if a people will, you get or on are how color we little So doing. bit, feeling

of in could So you on. terms that's that. what estimate And is FX, based our Mark, maybe on weigh

Mark McCaffrey

guidance with out we're think pegging think right limited. our happening we're seen We care, that quarter. giving it's things predict with We've now Aman very there we're we're with in think Omicron Yes, QX. the mentioned. comfortable any the for here. But other where absolutely. the January And comfortable hit can't I out I we like Obviously, variants other or

Christie Masoner

comes Brent of Thill the Jefferies. Our from next question from line

Brent Thill

sense to capital, Just can guess I on significant leaving you wiggle us ASR. going are ability given the think some about buyback how do you is? commitment enough a the committing give just M&A in the large tactical to a forward? the of to overall way tuck-in Or use buyback of that is to you when fairly yourself you're do M&A, room

Mark McCaffrey

the lot and ability But to predictability grow have also tomorrow the I leading say would to can bearability, cash the we a great business Brent, is perfect accelerate strategy going at but capital question, look growth our term. items we're of that model, get long one into the generate tomorrow. of up our and over our right? just allocation other of about things because

I as I forward to or QX, details us very and that the how in tomorrow. an for said looking moving forward getting of much about So thinking versus and we're think

Brent Thill

we your great give out X or you X standing new kind all think there's understand product when given us or products X you you features, love equally, you've lot innovation. sense, your areas excited the to the guess of you're that but some -- Aman, X a can you? about I there's is about you by, when And of just most think Great. of --

Aman Bhutani

which particularly I'm is we excited Commerce about top priority, Brent. Commerce surface that our every Yes. and bringing have, to

tomorrow, picked about. X have that least idea that I'm at particularly see will excited I You

to company showcase to of just detail. surface every of bringing So into Commerce I the excited bit that about. but won't say I go suffice it now, a is what most I'm

Christie Masoner

next JP line Our Auty from the Morgan. of comes question from Sterling

Drew Glaeser

behavior OmniCommerce split versus Revisiting the customer trends was is Drew in-store more solution, if specifically I seeing This you're could in to online? speak shopping for between you in wondering on Sterling. the the

Aman Bhutani

that It's on sale. we OmniCommerce early solution. too bit X,XXX be point -- the orders share to over got Drew. a giving of numbers Thanks, We Yes. shipped we've our of did

So data definitely, too a more starting seeing. are in about to that. before excited quarters it, few terms that solution We it's be about adopt of they're to need could talk we're early customers realize we to that this we and of have split what talking but and

Christie Masoner

Our next the from of question line comes Deepak Wolfe from Mathivanan Research.

Deepak Mathivanan

Can you hear me?

Christie Masoner

Yes

Deepak Mathivanan

the also color accurate? revenues? if then some Can great? side And into couple mean same So on this what factors is quarter that, million I that first outperformance aftermarket quarter on questions, bookings would the you the should you of was to like fourth was contribution with On I it up if then maybe and the help to that's also just related of seems X%, And that exclude that, contribution? a in are like $XX because this how about apologies be Domains, aftermarket already math addressed. think deceleration, if And the on that bookings factored accurate? roughly bookings guide, have we were

Mark McCaffrey

I'll just It's this things. to business. Yes. of try on a and A couple On QX transactional QX. of the bridge it, part aftermarket to -- from

revenue at any of So given period. end but when it bookings both impacts recorded, does not it's the and impact revenue deferred

a given provide deferred quarter, but can periods. what does I'd any revenue impact it in So upside not call in have future

any variability. into given provide visibility could our quarter So

On that revenue, smaller. that very XXXX we're coming large would I cohorts XXXX of the off into were and deferred cohorts little we're a say are coming

down deferred seeing what that So there. the but revenue that's trend, out seeing based come on we're generally balances you're

Deepak Mathivanan

I If just Got can that. it. follow up on

XXXX? also trend this continue expect we in should to So

Mark McCaffrey

to seeing XXXX our momentum So in we're would and business when relates grow continuing durable it revenue. say Deepak, to provide I great

We see momentum the the will us to of quarter-to-quarter. are excited but it's aftermarket, still variability stage and have the momentum early for about that from

of are extraordinarily going average up. at excited the going the the size volume transactions up, We deal

we can some But quarter-to-quarter. So it said, vary I from expect momentum. like

Christie Masoner

Blair. next comes the from from Matt Our line of William Pfau question

Matt Pfau

the if thinking for give First ask your about wanted X if it'd you XXXX how you're possible us to by some line on different growth direction be items? revenue could

Aman Bhutani

-- you We're we new will how think tomorrow. the be Matt, forward, we're and pillars to I'm going some until questions. going your information our on describing be able hey, revenue that going I can to answer give wait disclosing to

Matt Pfau

customer look If And was kind revenue Great. growth then growth. overall we your questions on to to of the split follow up some X normal. previous Okay. thinking here? prior and years the of ARPU forward evenly about about customer you as those been ARPU. growth the obviously, then we between split last not are between and And move the drivers How have pandemic, X

Aman Bhutani

continue do. we we've which rate don't I the more, forward Matt, can think Aman for going the have is to our it, both over at opportunity exceptional us which durable and shown we we pandemic, customers it to an way into to think can create time I way add existing to going the new get think customer upsell about of as both great a And provide we is on grow about as one attract base. while well coming me out opportunities the to business

Christie Masoner

the Truist. Naved Our from of next Khan line question comes from

Naved Khan

you Can hear me?

Mark McCaffrey

Yes.

Naved Khan

more P&L inflationary holding come then I down Or year, X/X and -- just that to on the to just -- your base? think touch maybe thinking you still kind ability e-commerce, I So I on of spoke about case? well an are Aman, how last how customer wanted kind even customer there levels normal it you asset customers we up? that mix back Is the as of maybe And of up? additional or environment has as maybe think your to the to your customer. gone being Is on pressures think new in about your on secondarily, e-commerce cut

Mark McCaffrey

Aman, living continue to and move always press in with Obviously, able inflations, the we've we're we look take The comment. part a downs, in the times to that, take maybe and is, I'll model first generate have lot part interesting saw can very of has and around while, been and forward. the the it we've inflationary hey, you a the of that to second today. a fallback durable I seen growth, that, ups for the continue we at and been

continue was. has XXXX, the fantastic in strategic meet what when the to macro see our but think that like that use inflation, objectives our in of cohort we're I we macro time, is that over always forward. which to to looking at or type we'll is impact going generated think environment about period what $X.X back confident ultimate of use, billion you around I So the Example used

our we So model believe remains durable.

Aman Bhutani

that's And growing you grown referencing. XX%, Marketing, the point + today Naved, been on Websites the We data Marketing e-commerce Websites Commerce XX%. the but had SKU had did the were think share I + customers,

in we -- and to was that continue customers see So more ARR number.

the continue to So launching attention in now. actually Commerce and earlier, it's I've the more a we're see And Commerce higher-end U.S. testing shared we in SKU. as SKU,

So of of in the in our overall + that -- business, bigger terms part of a business. Marketing terms is Commerce becoming Websites

Christie Masoner

Rajgopal Sunil Capital Berenberg from of line the from comes question next Our Markets.

Sunil Rajgopal

Can me? you hear

Christie Masoner

We can.

Sunil Rajgopal

their some turning this shed the And recent margins from into is what you what think payment light terminals? impacting management announcement All quarter? right. the Apple gross handsets Can on about does the secondly,

Mark McCaffrey

of second was a first impacted maybe take And The gross products. margin Aman, lower part other you the the by this that. gross quarter It's of take of some aftermarket. that. point part margin I'll than our

is normalized leverage feel some still gross models margin aftermarket very We did margin. ability given that But on our to gross in for those downward our EBITDA actually impacted us. that provide operating outperformance and the grow pressure our -- our the confident provide So the and margin.

Aman Bhutani

there belief the sense. be appear on to tightly to cases we I'll have commerce product makes on going exists. firm coupled it the where touch a Sunil, that's every this And that again, are that tomorrow, announcement, out on every And surface use Apple but that

be on touch on do. we everything Omnipresent we actually are at I GoDaddy, bit it share to a to tomorrow use Commerce cases just that going So believe

capability tap Apple surprise to that there sort is the of bringing sort of no allows So with forward icon. in folks that just

Christie Masoner

closing time, call to share Aman. to please Aman, remarks. this over the some At back turn I'll

Aman Bhutani

world at very all spending you by hard our Thank Christie, day in Thank quarter on. Day. for going We another in forward us. with everything all you thanking tomorrow more And the put the you, the to every you for they much. Investor over with coming work end employees thank look joining all GoDaddy and just and great else time all I'll

GoDaddy (GDDY) 11 Feb 222021 Q4 Earnings call transcript