GDDY - Earnings call transcript Q1 2022

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Christie Masoner

Good afternoon and thank you for joining us for GoDaddy's First Quarter 2022 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.

Following prepared remarks, we will open up the call for your questions. [Operator Instructions]. recurring be metrics GAAP unlevered and such flow, EBITDA, we'll results non-GAAP free net call gross normalized operating ARR and as annualized debt. today's referencing or and both financial cash merchandise On volume or GMV revenue total bookings, our our may our A of on be today's the investors.godaddy.net the posted to of found Relations with use measures site to or measures and non-GAAP in X-K discussion financial financial their Investor SEC at release. we earnings reconciliations why filed non-GAAP Form GAAP equivalents presentation with forward-looking The future which our ability matters introductions we'll or future be discussing acquisitions our to integrate results, to our those today objectives our product achieve include capital to including innovations respect desired new synergies. to statements, operations and related and strategies and with include financial approach allocation risks subject the filed that statements to discussed forward-looking documents SEC. and These our detail with in uncertainties in are are differ those results Actual forward-looking statements. from may contained in statements on forward-looking to we make May by future of extent XXXX statements new and a obligation update as are of as information these law this today required to that events. based the undertake except assumptions result no X, Any on we or call that With Aman. here's

Aman Bhutani

At you for thank and entrepreneurs Christie you, Thank mission joining GoDaddy, us is making inclusive all for today. opportunity our everywhere, empower to all.

identity. business commerce. helping we With maintain the front the small of secular advantage largest establish GoDaddy's this take We role believe online commerce, them, to digital trends do by with is our Internet of and coupled combination opportunity of and their customers and entrepreneurship of presence the help micro and customers accelerating in the

giving market. commerce has we and important and Together this for in in are presence digital connected unique form web enabling them. Our a wheel, needs mission world into shared and exceed Connected GoDaddy in-store differentiated every and and tools Commerce to for entrepreneurs identity, makes And assets we media never the extend presence. our how their ubiquitous of presence commerce. meet and been by with social framing This at GoDaddy's help February. customers' marketplaces combination of them the customers Investor and Day surface them ubiquitous bringing the them new player to We us their experience, our more representing

presented also to of are We quarter In good XXXX, first year-over-year three-year plan revenue and year-over-year. XX% grew a grew and EBITDA off we the normalized up a XX% faster, start.

for environment, control are we and customers all we shareholders. fluid macro our what on While face focused on delivering we a expectations can and

eye of A close Ukraine. work ramp on the remain other on war the financial and in critically resources business in prolonged likely contractors releases a in in keeping a rollouts will as for war the bigger limited area. The our disruption are mean safety impacts delays some we our in the We are product concerned and of the but war we areas.

uneven dollar of We COVID-XX across patterns to industries. inflation is monitoring ongoing closely the strength leading FX result of a and the are also and the as the pandemic US headwinds demand

offers and and be to us durable model Our opportunities is business adapt nimble.

and our team leadership mitigating three-year is focused plan on headwinds. Our short-term

data Through And Over as strategy be improved last to our with result, to on attract strengthened years, by revenue continues our rate cohort happy to have the lifetime from delivering I higher in renewal already point experience. the quality improvements An our share am XX-month retention customers modest of drive to important we the of our that strong. several that renewal value. the customers is high execution, have a rates. XXXX continued disciplined have we we

of clearly in the is Our our commitment consistency to priorities. highlighted strategy our

our offline priority, GoDaddy increased and customer the listings encouraging. by third, early GMV GoDaddy priorities priorities in driving higher in through for choosing We covered many Commerce billion first, looking the and value presence; the taxes and comments I brief to purchases. Investor from GoDaddy in From in strategic second, limits on Our delivering at plans have $XX will XX% sale. to form be; detail of Day Pros; so shared of these this launch three offering Domains. in I'm of been of year-over-year last of the driven provide couple higher-tier continue innovating new in product are Commerce Plus a simplified Commerce on many includes The one across are new delivered of the from the today. months. across data unlimited we plan. of customers sales to tier is features. campaigns, launches first orders February. we to new I have On new is want our primarily highlight our each But marketplace XX% ecosystem and Payments product Annualized e-mail point now up XX% grew the XX%

offerings commerce WordPress. For for continues best-in-class our Managed be GoDaddy and Pros, create to and focus tooling presence to

The users add teams working hard We of increase continue to and more Hub to to our engagement. rates are

to want to has in of to we continued of to to new market and going upcoming this onboarding called have history improving and we the performance excited markets of accelerating shareholder value. the share ARPU WordPress. in to a Domains. attach built Pagely solid environment. are have Payable for durable integration releases, experimentation happy In in customers a we we that flow Domains. percentage On possible. US. pace By good enter of a February, Our commerce It and with how to a Managed the kinds In test continues are are small products of a I all innovation, you remind they closing, to am customers innovative product, Domains shared too and quality launched. I'm comment quickly business forward our driving of improve new and on looking but it we offering an started economic rate that once I about product is bring as include early adopt innovation as about sharing Payable eager new which we with with and and more that capabilities to at GoDaddy experiment are receive will these a new

Our and the Mark. serving from strength is power retention a extraordinary With cohorts, to business strong we committed existing have that small micro and three-year team the customer the base, of our leadership customer large and customer our advantages and comes plan workforce our mission. competitive disciplined clear here revenue a

Mark McCaffrey

Thanks, Aman thank you for today. joining and us everyone

to QX highlight at targets excited strong our execution towards Day. are shared results, our We recent Investor we which the share our

flow and focus combination business our balanced our delivering Our durable profitability robust topline shows GoDaddy's and performance a cash results of growth, resiliency. demonstrate at on scale,

total Within pleased XX% currency a we we grew billion, strong actively We that through first year-over-year global environment. XX% deliver a able the XX% are a represents which year-over-year to In growth basis. $X basis were on QX, international on quarter, macro manage grew year-over-year revenue and reported total a currency basis. to revenue while constant revenue, constant uncertain on

our will presence opportunities going earlier as presence which up Commerce payment the our two attach Websites XX% three Applications we it Coming meaningful. in will grew grew how and range at lens such XX% transitioned which includes from by our our in products new year-over-year. earlier, Websites year-over-year the business And Studio forward. great of billion. we pillars contributed shared Platform. traction more Applications group show Managed application to guidance Marketing this to year, revenue the to our which we into reporting Applications for February, The solution our as + our us growth. the of Create Marketing, line and Sellbrite, Aman the drove we of and Commerce as segments; which This this in WordPress, item mentioned and and end solutions, about XX% $X.X gives and framework $XXX with and includes million. report grew talk ARR from Core ARR from segments of revenue. As updated this Commerce of year-over-year Grow GoDaddy This change revenue, products + high becomes

all grew driven year-over-year our XX% increase off-line primarily Platform to Core achieved across was $XX guide year-over-year, channels, point-of-sale. by Domains, Lastly, above the with the ARR growing Hosting, products X% by XX% includes $X.X driven February aftermarket. Core grew revenue annualized ecosystem GMV Security billion, for We growth GoDaddy X% which year-over-year. of across delivering billion. and approximately Platform

billion As tough against ago a were over reminder, X% and aftermarket $X.XX a performance the growing basis on X% constant strong bookings quarter. currency basis does not ARR. impact reported QX a comparisons on year from

QX to year-over-year. Normalized grew Applications quarter. XX% EBITDA year Day. representing margin, against point XX% same our at grew a bookings Additionally, bookings margin outlined EBITDA year-over-year normalized and X% the Core we a last at within X% to Commerce over grew expansion and XX% bookings million to $XXX margins largest grew the XX% compared and bringing our QX Platform XX% ever guide Investor period sequentially year-over-year of

increased a development as percent strategies. and quarter commerce revenue Our technology of building as on innovation we focused and our expenses this

as reopening spend, continued offices marketing as Additionally, at of revenue in based G&A also execution expenses leverage percentage remaining below our We Day. outlined historical QX levels. in the while a continued increased of our we Investor drove formula on

increasing foreseen have medium-term inflation hedges faced to and pressures impacts. form the contracts some of in QX, Currently, during energy cloud Additionally, the infrastructure of primarily mitigate we we expenses. FX and

the will monitor these our continue free areas. and profitability. address inflation-related We flow we for million, strong to Unlevered in year-over-year X% quarter was growing $XXX driven these expect cash impacts throughout XXXX and exposure proactively by

announced against or total share, on flow repurchased cash accelerated X.X an increase we since basis free an to the our per share began executing in for prior an QX, during to share authorized our expected year-end Through share $X.XX billion million of count we cash XX%. versus reducing XX-month ASR year initial May. our Additionally, a X% share $X.XX shares of per completed $X quarter $XXX be trailing bringing by repurchase through repurchase initial million flow

On the to at of with and total of billion. stands liquidity $XXX our range four QX finished cash $X.X times. $X.X of balance million at two targeted in we billion midpoint the debt Net sheet,

outlook. on Moving our to

year fluctuations. environment, the know now, year short-term model, we current said our foreign we what increases Given that with which demand full not to macroeconomic immune are start exposure currency our solid our on February. the outlook of Having our customer and provided XXXX predictability to we and comfortable to in based the are

us allows and factors. believe investments While model the we our to seek flexibility predictable revenue our from the remains to exposure leverage to our moderate environment operating offset to expenses these fluid,

in remain cash discussed flow We $X-plus delivering free per to committed also share February. the

represent revenue and and and XX% to For Core to the we $X.XX grow of Applications in expect that would X% QX, to revenue billion we X% Within total billion, which growth midpoint. year-over-year and Commerce at XX% are the between Platform targeting $X.XX revenue between range grow X%. of

approximately be to QX, bookings full growth For points primarily and year below FX pressure. revenue, by two expect we driven

and QX, and in launch We Normalized robust $XXX the investing to our at growth will our in development customer goal for continue margin is represent marketing. midpoint. through of of EBITDA technology year-over-year for $XXX care drive would product balancing while momentum which to range expected to million, be in the million XX% efficiencies expansion

allocation strategy capital unchanged. also Our remains

second target and intend for the of our an XXXX through to share buyback we quarter, billion third During million $X fulfill repurchases. $XXX additional

Additionally, to we and of X revolver, leverage of will rates X and our impact the intention term of rising the refinancing maintaining with explore our loan evaluate times. interest ratio

that to of we consistency on have and record Before want in execution laser-focused I we I reiterate track difficult times. a close, remain

and $X our line XX% billion detail CAGR, XX% CAGR, per We next towards normalized stock XX% our we are three CAGR Day. or top in described buying the better flow over years, EBITDA share of that back in free Investor marching while the cash delivering

long-term understanding of leads needs position emphasizing, and investing at while customers. built results, strong XX our than growth. by are we We in areas near-term providing business goals, our that solutions, time more million in GoDaddy the small delivering future same balancing for a the

Christie current the the built the macro for strong of GoDaddy's up events for have the we Investor businesses. from customer champion comes and competitive as we'll our While call With long cohorts open team of resiliency that, our retention, Relations our present from Masoner challenges, advantages power existing history small the questions.

Christie Masoner

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

Trevor Young

may. I if Great. Two Thanks.

Just where Were Russia-Ukraine from levels. a I on you there did declining year? specifically demand growth trying the customer how at has you first about any thus one Have in-period comments following or saw sense, Aman, a seen cohort Q-on-Q. kind X% just some in far color quarter? relative onset cadence? customers. on the the XXXX that XXXX improvement conflict? of, to see any is Thanks. Europe new basis, the growth trended like any healthy to And of regions you weakness the in think pretty retaining XX-month countries last And on tad specific made get in international, a then, you weakness revs in I'm

Aman Bhutani

is Trevor. This Aman. Thanks,

asking the one And rates I I On been have XXXX retention asking share reasons cohort to a huge of that was is, the wanted us, have XX-month company. investors think And a attract the continued high see us. analysts metric to for we're on customer it. been customer about that rates excited we've with us retention LTV, stay that wants to with to a a very

happy of to rates guide very, of And you. more to it growth. customer us. for year, obviously the something the So about definitely important with were we those the don't in very be and retention growth, share talk terms will at But be end strong we'll customer

and international, mention in we Russia same would environment ruble. that two, perhaps, website the removed sort it of Russia shutdown But macro we thing want In of did an I'm any may In impact. comment impact. you as a an comment wouldn't but generally, Mark, had Mark, you support see Mark to you And to see I on it? sort want I our or of terms example. for it. sure say, call And on that maybe, Europe material the

Mark McCaffrey

and Aman, Trevor. Thanks, Yes.

exactly that's Aman. I right, think

a impacting and to I did a call that this particular out. more Europe, We think the down. significant region say, there throughout to the I on of exposure you impact us. buy would isn't at or stole It shut have country any macroeconomic are it's trends point didn't us line.

Trevor Young

Thank you, Great. both.

Christie Masoner

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

Clarke Jeffries

previous if characterization way North demand, any to for macro into on increase between Hello. kind to thoughts from contribution America offer With question cleaner was that. the international wanted your follow-up And you settle growth think that aftermarket Thank demand above? was you and for as a where level, taking in the and product different XX% just the as Domains? a with line some impacts the then, a question. do addressing And on goes? in Maybe demand there qualitative aftermarket, I could by a or think expectations we of you Domain driven compares,

Aman Bhutani

Yeah. you take Thanks, first, perhaps take the and Clarke. I can can Mark second. the

large market. of business which just core I Clarke, much sort of well. We've for set would We world. to of the really a more TLDs In now the TLDs. the point terms secondary to the across domain demand, combine also selling added primary of sort specific us, capability market the those connected that secondary domain is than market. We sell then We in

more Domains for And a remember added then, and products Registry about also from will we've and we've year, like Corporate ago. year a well. You list as a business in half recently added business a sale

performing But that that it's well you. on are really to to And with the it diverse turn continue aftermarket, have Domains business. of collection of sort we products So can be very us. overall I Mark then, really maybe we our happy the for

Mark McCaffrey

absolutely. there. Thanks, transactions continue strong when and around we volume what prices up. we've look QX. more we about in be happier see larger momentum And average Hey the predict the And momentum have to I the Clarke. to couldn't at aftermarket. the we coming it Yeah, we hard track really It's going than growth think that's talked of out And we listen, seems sorry, that still -- going of there the versus see market. North through with broad-based volume we be amount And within the right versus but market to transactions we see in. out to we obviously is just be still domestic to that in and momentum that Nothing call America now. It the coming them pleased created and that international. quarter-over-quarter or momentum continue

Clarke Jeffries

plan if more macro could in investment given environment. squeeze just And I one about Good. the the how changes

costs be Just look kind you whether some it it benefit to trying around. you profitability will Is a a see to or the as get net contractor offsetting whether to headwind profitability some that sense to you of there of rotate or a of have through net of headcount a do year? kind benefit as net

Aman Bhutani

Yeah.

you're I contractors the group think for and is of talking an small sort It comments Ukraine us. of people my region. -- about if specifically the important but around in a

group So safety of size hire large group small. to around given ability to think of paramount because on across is is importance our it our and overall the an globally world base work wouldn't of shift. sort of Their overfocus engineers of it's with a is the vendors world, us not we the but I important and It huge people. the

Mark McCaffrey

that. I'll The headwind. it just we to is look don't Clarke, add a at cost as on Yeah. --

Clarke Jeffries

Perfect. right. Thank much. you All very

Christie Masoner

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

Ygal Arounian

Good afternoon, of take two-sided. Hey. I'll macro Maybe one like kind a again. guys. the

and we of of things offline about sounded I a is up online start on big in-store like the e-commerce. takes GMV when just of lot talk to -- more and ultimately has images. to you're one the recession, about And So, from around are we're commerce impact strength the SMEs a comes Talk seeing who we a pressure POS that then, puts lot. on usually seeing. in exposed your been typically when have driver mean comments it

and you're things things So know customers? there. hearing your you're like improvements SME customers I you're anything pretty from your hearing the look but just from in anything seeing good renewals tone

Aman Bhutani

quickly. before, to to Look call to Connected be our or bringing offline is able bring online pivot commerce than able Ygal. we for customers very capabilities to quickly on important those what online right? need in-store ever be selling and Commerce Thanks, more together, very, same They

in early Connected sort and in growing have that GMV portfolio the we to of small still given still that overall the business, area. in Commerce very space is and we're generally exposure our our Given are we

today talked of opportunity different have recession, GoDaddy. very, the point might the or cohort think We cohort years $X.X that cohort. for delivered revenue lots I up very early has of I remember we of of field. to about in in the ago. we ago billion you looked billion is delivered years Great you point a to at terms in economic terms Recession And data that couple couple in with had impacts. of where XXXX, the data that feel what of revenue. Well a would I When a $X.X cohort terms in And it we shared

at So very we and perform see other we cohort it that to cohorts. look similar

that. look say we business we products So of to at at short is great up I'll and And our time bit it a their price perform well. customers. that set the those growth. And to a to value This to we very, turn future move very to a to but of bits couple their down look, a in and to term continue things essential yes more maybe our might cohorts deliver over delivered you add

Mark McCaffrey

Yes, and that's great.

shop times very coming to I on opportunity. a we their is on be we're ability XX which seems They customers. business base, an a that something customer think focusing really them. of entrepreneurs make in us from these revenue and our reminder, And million that are XX% help for generate about to with resonating their businesses to go-to-market easier becomes small one-stop our existing what our is count hearing being and their is

it we is relevant look market at to ability very the So huge products going as much forward. a them for a positive us give upside our just and in

Ygal Arounian

kind and product. really – little if bit just you product could Thank a helpful. on a helpful. core upmarket, that. little more anything that and sounds that seems that's Plus customer? you a SMB Commerce could around be is other about you That's going interesting like maybe Is or And really talk any a still focused bit your micro details share points on about more It price will guys of that expand you. And super

Aman Bhutani

Ygal. Sure,

the you year. like you much able our and to points of up needs we it. lots literally shared had offline far SKU we we That's customer do of we them sell about on of more Happy is. serve terms a and need million QX, we million it's But don't US base have Day, stuff are to you already they have in up terms see do And be to what new price launching that details how target well. GMV to as of we want or SKU. Investor And to customers Plus can the In to a in $X our launched and to like their with $X shared serve that because in the website and to higher-end that. Commerce talked send go customers

XXX% You see will of time. the

a that XX% And available are the them. have in which very the we absolutely in So there now February for which and it's XX% SKU means GoDaddy with definitely of of we like little more adopting value about excited adopting to been was we're you. seen provided it we have the customers well Payments, are customers. Commerce pay to that GoDaddy in And it's Payments seen willing customers that greater because bit overall SKUs sales as have new XX% purchases, in our of played a shared part customers that

Ygal Arounian

Thanks much. Great. so

that Let the on me site. check out

Aman Bhutani

you. Thank

Christie Masoner

from Mark, muted. I line go question Mark Mark, you next of ahead. the Our are from believe Benchmark. Zgutowicz please comes

Mark Zgutowicz

I couple those of just that. to on for wanted Thanks the last maybe draft questions.

Plus of customers side your GMV us refresh customer highlighted, mainly of are obviously new you as and Commerce those maybe And your it the new coming relates I'm noted where if again you POS. could curious to perhaps On on coming you sort then, from. just which from growth, go-to-market

sort you're that it sustainability If of sort and Thanks. to that me. CAGR Applications sort talking trying That's sense high growth. the three-year that CAGR and of and of So if Commerce corresponds sort of get a XX% for growth about the for of of parallel to would that that just teens.

Aman Bhutani

Mark. Thanks,

is customer product. most We Plus super Commerce new the in coming just web. the On quarter. last the it's launched base this in terms new of plan through And approach, of it go-to-market

the majority organization fantastic No doubt, that's the to have to a to able advantage and customers. upsell have Care be that be product get But we're motion to this like us really organization terms be But excited year's ability our of it in our we've to we the able We're where excited we in with competitive of can part customers priority the testing. excited launch. able the done to to go-to-market to relationship have huge Commerce. have is to swinging Care GoDaddy and go So for that of customers of a Payments. we're

So that's been fantastic for us.

GMV so In this feel and we growth the a payment such terms base of customer just have we're we early space need. in large with

It's sort hard us specifics terms for numbers it's crystal of course, to take. for out But a commerce very long great so Of positioned I feel marketing. market term. prepared we're plus in a putting products we We're we're doing of We're to more mentioned in TAM. and just early there's comments, innovative terms a and of the much about new have very, my massive the coming ball well. talk really WordPress. In websites with in what of

have domains now out payable We testing US. the in there

lighting services with really Commerce. So, our all we're up

we're feel we So just earlier.

Mark Zgutowicz

much. Well, it. I Super. thanks very appreciate

Christie Masoner

Our Raymond ahead. James. of Aaron, the question Kessler from from next please go Aaron line comes

Aaron Kessler

on hear of me? -- Maybe you for you've years. cloud working I the Can couple Great. transition been know a just

how lower a of of you just lot much as efficient as on are sources? adds from terms leverage of And overall conference about an costs calls having at that that Investor our you're to finally, there. adds up Thank talk for just gross the on think kind that? in obviously find spend, year-over-year I seeing impact marketing Day on is been able any mentioned labor more then I you you impact well? the that you marketing customer then a question that And where you. or spend. Nice or can well? guess, coming Now lower have of

Aman Bhutani

Aaron. Thanks, Yes.

Let you comment me the and the Mark can on marketing take and labor costs. cloud maybe

higher cloud. our we're In very the seeing to with very, terms of in both very and responsiveness. to seeing applications We with moving they We're US continue our our tools productivity, the cloud, sort Google better we globally. happy measure applications to and the be of well, transition performed

plan going we're to there. So transition that. is The very significant nothing to excited call about out

we comment. of terms while it I better to – we into the think for labor sharing with marketing GoDaddy marketing you we to see We technology open with see that our spend the doing we our want and that demand philosophy follow sort last the to pull that very patterns. make mat I'll turn down and do year better too we're making want because over be of that pattern dollars. we we've year, better demand cost data as the the in sure a manage it. us when just and for data In that to allowing don't what in manage been marketing every but demand measure we are changes science want And our efficient investments around more And better is Mark you don't about coupling it. then dollars, marketing, with And them to aggressively that's and lean we

Mark McCaffrey

have thanks a in for Aaron. environment been Yeah. years. here talent of for a labor we costs number On hypercompetitive And

make be to that yet constantly our but and not maintain anything to we to we've the three-year our cost changed, would into we look looking diversify haven't outlook. So think employees been cause to have we're attract in to do levers And at moderate talent buildup us seeing that how that place appropriately. hasn't our the for into sure going that we already. that's forward can going of locations we And built continue what opportunities to guide

Aaron Kessler

Thank you. Great.

Christie Masoner

Morgan go ahead. Elizabeth, Elizabeth. please from Stanley. Porter Our Please Elizabeth next un-mute. question from comes

Elizabeth Porter

landscape. on Hi. competitive Thank question you have a the so much. I

Google March GA in beta back being So product going after with in for they multiple their years. announced that were Domains

So wanted on any I your view changes the the to competitive get landscape? – Thanks. just to

Aman Bhutani

Competing Google, think business. fact industry removal change any we've of the with if I years seven in you create – of a on view. competing more. Specific of sort fundamental or logo with Elizabeth. it for And every been for the of change from Domains doesn't is to Thank will tech tech players life the you, Google my mega sort the beta

we've been competing sort with not them of So with little changed I feel this change and from has them. much

Elizabeth Porter

on see kind customers believe side, are then to that And new XX% from adoption the great that's Commerce. going And that XX%. into payment I Great. up of just to ticked

if had Payments of you their customers I the to over any provider kind wanted see, that change legacy moving pricing with kind competitive there prior GoDaddy been product. of offer just in that given guys to So from

Aman Bhutani

Yeah.

of site. what we've majority the I think through about talked customers going is new

continue customers, our to attractive. do terms for GoDaddy. we set a legacy a are feel big of that that In opportunity of we see customers Anecdotally, is

know that sense. but is we at go new this we – know not work our scale company, pricing that's customers that the the just as can so the is after something can of for priority to But we motions scale. that get across year's this us that, legacy just But well. it's makes still part So go-to-market progress. in We the

Elizabeth Porter

you. Thank

Aman Bhutani

Thank Yep. you.

Christie Masoner

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

Brent Thill

on the just that? this or guess financially you that was anything I good quarter. guess, I execution call Thanks, out growth revenue a a internal comp, the on bookings couple, afternoon. trailed was that that there more caused

Mark McCaffrey

one that into Aman. jump I'll

You can add color.

a about a quarter Day of it lot head gives in tough to there. rest and right comping we've of comfort We're year. as it. of – at into and the the we're of about impacts on last excited we year. talk out did some the Investor get hit You It's us coming which seen quarter market the We positive momentum the the January

bookings QX. And that coming nothing a pretty off growth strong. we also we there's The was to mentioned. haven't great happy in So out particular call very are already that

So the it's an the we the market to up we right the like QX. out we're going about time, momentum, good to we Obviously, it year we manage in quarter the continue now. there through and we like opportunities where interesting but feel end think for and

Brent Thill

year? And rolls the do How elephant rates not? next obviously does insulated the this you Curious was And curious a the of maybe how business quarter interest you quarter, maybe thinking next room and that segment. but through and quick can to in just think is that not about this kind you happens what over follow-up the small or that how as you're think I'm through? what be the watching more this

Mark McCaffrey

One, now. Brent, about it's rate demand. have then that in our Yes. of customer Aman comments customer interest ends end slide I'll And we're think end internally on One on us on XX% remarks or it variable and may the two on some take -- one. two it. I right prepared we're our

tool we And minimal. to look between. add additive us help the we the year are we to So quarter loan ability you them we the if ultimately as think we and impact to for them our do it will our that more and and in don't And will on mentioned choose be refinance revolver. term we an to for Obviously, do helps of customer sense we'll will business versus have look the but their inflation, impact three things impact and Aman But we products it's the that all. our so. base control. be I be in overall know want hard those the the efficient But are to comes within it our if to at believe shop business our growing predict overall When because to our them at think years. to on marketplace the focus hard makes one-stop they it's a something

Aman Bhutani

the view Maybe trends on critical the businesses. around need micro view commerce long-term and really secular just is a Brent is entrepreneurship Internet. This small question. Internet to appreciate well. positioned have say for We're on the we that the the around My around

is website -- a time give don't positioning Lots customers GoDaddy's or up they don't give their very of customers. up in It's the very, So difficult They domain their mission-critical that. don't is them large. do good. don't to TAM anymore.

And from I to economic in to fantastic perspective that's our tough them. for can better. shared up about do That's they times the opportunity XXXX them has actually customers of more So for as kinds to times GoDaddy are cohort for my help sort if with all opportunity can end the how we navigate customers understand of environments. those GoDaddy

Brent Thill

Thank you.

Aman Bhutani

Thank you.

Christie Masoner

Our go from Sunil Berenberg. please the next question ahead. of from line Rajgopal Sunil, comes

Sunil Rajgopal

Payments comment the quarter? quite a Hi. to And line have will front. the up bit gone overhead Can seems expenses be second you on about this question my also please

in Just about want you. you I Thank could phase thought still early But the stream to that would of our understand bit accelerate terms have deployment be about a opportunity. payment what that commented more revenue forward? your from how going earlier little are know you of in potentially you the opportunity potential the Domains payable and

Mark McCaffrey

you And the about of I you G&A first and overhead. the I'll you're say line Sunil, talking can handle when hit maybe assume that second. Aman the part

Sunil Rajgopal

Right.

Mark McCaffrey

are in to It's It saw below we uptick so in offices we our for our we levels the increase specific in normalized related QX. we're going it opening and EBITDA that. represents reopening -- and that one our and the in comfortable be as ready offices QX, margins small we three-year guide But also got put there where in a forward out expect historical for we was started the still to with plan.

Aman Bhutani

of I about I sort during will on it's is selling Sunil, that about else My new excited I'm is excitement how domains, And it. product. product Nobody notice you a that payable idea. fundamentally get sure my view Investor leaked out think, Day.

have understand with We to bring tremendous product market. what scale the to them to that's going we're But is. what that testing. have to That's we -- customers we're what understand to through. And work new help

we'll why it think we're That's about definitely we how great We talking keep what informed and have estimates And about progresses. excited you can on it. be. we're it it on

to able see be on You'll the it side.

it. You'll doing be and more to able more with see us

Sunil Rajgopal

could you. follow-up. just And if Thank I maybe Sure.

terms infrastructure pressures going of up. cloud about costs You talked inflationary the in

you mean, So those incrementally And margins mean, how about end on be should do we there, guidance? low pose costs? the think pushing towards is margin, pressure will it I the I the thinking of

Mark McCaffrey

when So process cloud. to at the of we're infrastructure in still moving look the we the costs, cloud

line. in and and takes. and as well our where guide can we're to normalized expenditures built for at an margins opportunity that included think But it of are year, we tech talked not about today are are. with And capital where I and we moderate but our at our they looking look that cost going Everything dev still our forward. impact our And as we on we've we've as reduce our plan. lots we only see feel in today. puts comfortable the the comfortable what EBITDA for we Obviously, three-year

Sunil Rajgopal

you much. very Thank

Christie Masoner

hand As like the screen. raise a reminder, ask to bottom use of question, you’d feature the webinar the please at if the

are I Khan from think mute. call turn of back Naved go question the remarks. will next on Aman ahead. Naved, the please Our Truist. comes Naved, to I closing you from for line over

Aman Bhutani

Thank all work you have Christie, the with us these good team thanking GoDaddy a members doing and I'll thank results fourth call joining the who do customers the you out end and as job be for our getting tremendous well. just the all all today. for by we you. And been may

GoDaddy (GDDY) 5 May 222022 Q1 Earnings call transcript