GoDaddy (GDDY) 14 Feb 232022 Q4 Earnings call transcript

Good afternoon, and thank you for joining us for GoDaddy's Fourth Quarter and Full-Year 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]

On today’s call, we’ll be referencing both GAAP and non-GAAP financial results and operating and business metrics such as total bookings, unlevered free cash flow, free cash flow, normalized EBITDA, annualized recurring revenue or ARR, gross merchandise volume or GMV, gross payments volume or GPV, and net debt. year-over-year otherwise represent presented rates comparisons noted. unless Growth

presentation use measures measures today’s and discussion in their of filed of earnings financial the we why the found our be financial A release reconciliations included or Form non-GAAP our SEC. equivalents may to in posted investors.godaddy.net GAAP X-K in to with non-GAAP

respect including results, The related to those approach matters which our or allocation, statements, strategies include new we’ll operations, be forward-looking discussing to objectives capital to with our and innovations, subject to introductions that future in SEC. our today achieve and desired financial future and include filed risks These product and are are ability statements documents integrate in detail the our acquisitions forward-looking discussed uncertainties synergies. with to our

in XXXX differ Any events. law, required to call because future are by Actual materially statements. update these or that make of contained of as and no we XX, assumptions statements, new undertake those from today on information forward-looking we may February except based this obligation statements to forward-looking extent results the on

here’s that, With Aman.

to tools We commerce you, merge in-store bring this guidance and so and business. Thank the GoDaddy is for focus with surface. GoDaddy. delivering customers their customers on for is all. to tools providing that them help you joining to and our that their start digital online customers by make can Christie, get opportunity This all online journey, running and a and their empowers experience every for inclusive robust GoDaddy’s one-stop shop today. sage more us thank tools have mission our achieve

the of Day February. results laid X-year I and our and will XXXX out Mark cover at key accomplishments financial in context Today, Investor last plan our

on and our environment. We share the an opportunity more in continued Commerce information there and uncertain P&L the macro managing of our progress, face will in especially also

driving free flow a billion XX% than a over $X.X flow cash billion XX% growing of EBITDA increased delivered increase share X% $X.XX and margin. basis leading in $X cash a in in per constant GoDaddy higher currency targets. Normalized Free revenue, XXXX, to In XXXX on our XX%

to added base Our our our customers solution, priority section to customers large but on offerings detail incredible Payable existing Commerce enabling as products be of with Managed XX SaaS consistent much strategy, it including a just new our we priorities including surface. product into and more Links, with to newly and Stores in has launched more months, to WooCommerce on work on plan the of bit Pay our empower Commerce and more. will now, I offerings, direction Marketing X-year + touch continue Buttons in every about go with OmniCommerce WordPress, lineup, GoDaddy new Websites and Pay Domains, our

customers. market. are together, to from commerce Worldpay, solutions their to positive And in The OmniCommerce and partners. customers now announced lineup teams U.S.-based bank partnership an receiving feedback small previously new exciting fully that be we for are preferred business of and are adding already are offerings with Our today, we with working FIS provider

X-year in in growth short-term. also outlined these the we targets confident our long-term the growth but year challenged remain be in We top-line potential may that plan, last recognize

global achieve that workforce. deeper These of brands, integration profitability savings, even preserving we disciplined acquired of a in in cost ability annualized spend our X% aggressive taken and $XXX economic have actions our our in in structure result, overall a some over reduction As in and cost result million weak our will actions targets an reduction include some in environment. an vendor to

through priorities domains. presence, top innovating Web our of commerce to thoughtful continue and will growth in driving Pros make prudent and We for in delivering investments areas and

time. this call this bit I share on will about and our key on always, priorities focus a Commerce As more

through driving to Day connected every at shared surface. commerce, bringing about On Investor commerce vision we which our commerce is of presence,

the Pay in freemium to goal Websites products capabilities and on customer commerce + Domain launch early a Button or to the website. has a be lifecycle, been Marketing Our engage a which Payable might

direction tremendous made website Pay into the broad more. and have Pay our progress through We in release payments this Links, domains, of Buttons, builders,

market of customers starting year out accelerating, are we U.S. reach with In our of out we sharing less commerce GPV by payment GoDaddy engage a QX, am purchases. regularly. forward you than for Most share $XXX In been new been looking volume by in base, we websites. furthered default million our gross Payments, in and offerings just our by XXXX. have January, to we to default, I enabling all domain new this transacted our in payments to in the are has rolled new to that metric so happy and our

customers, Merchants shared and SaaS to We website, GoDaddy have Stores. needs. of highly WooCommerce the sell ability giving the new Managed is called This at also can social to payments and launched using WordPress, via with on micro-business larger and their end performant channels and our a in-person OmniCommerce and offering flexibility scale them marketplace WooCommerce inventory. sell targeted terminals, our product on

We excited by a robust need offering are brings more opportunity customers solution. the to this potential and who

with payment together offering in the reach, year. institutions, their and WooCommerce products over will for Worldpay U.S.-based provides solutions provider Managed over a significant throughout commerce FIS including provider, services be our transactions We new the Worldpay will debit FIS to than than and business our million a supporting unions more create partners. are preferred XX in technologies strategies also bank merchant Worldpay. and XXX credit OmniCommerce financial of offering cards and is marketplace. partnership FIS each leveraging more FIS Stores X,XXX market-leading Worldpay’s small we and billion our new customers processing U.S., Bringing XX.X

have more have And and our integrate some improve to to continued briefly on we of product acquired our supporting Pros, started GoDaddy deeply offering brands.

costs. experience lower they are projects and a complex, better to these much While will lead customer

points Media next X customers I testing key the we over while that the informed And December be our price brands, our of Temple, in sunsetting and best customers already OmniCommerce mentioned one brand appeal offering, SaaS and Pros to all will are Web audience. months. our new we For actively XXXX

innovating integrated for third X add In ahead and the All platform. our users accompanied such the milestone domain distribution opted-in is we reached network. automatically milestone as network by the as Dan aftermarket offer exposure domains bid integration was that Afternic value optimized experience. currently Our numerous service their other a is will history into This and continue now from critical our greater our further platform. benefit inventory listing schedule into enhancements by QX, aftermarket Afternic priority of in months on to Dan.com listings launching Dan

Domains up enabled launch weeks. and in the Payable a will in is U.S. XXX% of the be couple ramping marketing

pay shortly create purchase domain, a newly branded link, via page, accepting online after they links that have As a you Payable recall, begin or a secure enable registered U.S.-based store. even domain they shareable yet to Domains payments that checkout not website do name are if customers a

already purchased, enables up to any the and Combining new, GoDaddy through customers name quickly. their Domain credibility get running Payable with a businesses can existing For respective easily domain access domain of the small ability accept to or Dashboard. and payments the

months, a few fully GoDaddy While over payment in-market this differentiated a customers ready capabilities. domain capability giving truly has thrilled expanded to we’re domain rolling been and with be

difficult and operating In in financial results with we delivered, annual environment. quarterly while closing, we this are pleased the

importantly, the our initiatives last excited remain future. year we are Investor of We progress More key for against Day. our that incredibly we the outlined proud at

presence connecting are our We with leading and customers’ identified, identity, digital unique market opportunity, commerce bringing building their surface. on every together our position abundant, long-term to

strategy. Being customers of this is one-stop for shop the our our center at

continuing to pace as in committed shareholder focused our innovation, strong on are growing value. We results, and delivering customers’ success, participating intently our of financial always

that, With here’s Mark.

our GoDaddy us. year, $X.X turned of buybacks. revenue EBITDA, Day, and in flow share you exceeding where and coming around strong targets. we billion; growth, hosted and all shared goals, free for delivering free cash year years buybacks, share everyone, Hello, per executing a of financial cash Normalized we Investor Last of goals flow revenue and Aman. X per Normalized against for $X.XX joining Thanks meeting thank those billion; share financial in our $X share the billion EBITDA $X.X a comprehensive

deliver in of and growth to the cash the described at Day feel earlier growth remain our outlined While revenue and Investor ability flow pace will has going Aman we we steps confident accelerating short-term, moderated strategic in profitability the for serve our forward. tailwinds as

also our remain to year. share Board We completing committed buybacks by last authorized the

annual financial in X%. total our XXXX, billion $X.X Reviewing results, growing revenue was

in year the billion, commerce set XX% line revenue revenue over for Excluding growth, a for for basis. last Applications billion, representing half have both grown a totaled $X.X and to year. constant and the growth, X% headwind, of year revenue X% year the FX point grew would representing platform targets $X.X a with currency the total Core and we on

year, International representing X% revenue the was $X.X growth. billion for

Total the was Excluding growth basis. constant been would have growing impact, bookings currency a international FX in X% currency constant on on or XXXX $X.X X%, basis. X% billion, a

grew unlevered million. flow $X.XX share $XXX growth, of our Full per our XX% Free to free share, year to grew per line $X. of last issued investor day flow $X.X ahead cash year. Free XX% guide target in billion, cash with increased to representing flow cash XX%

billion, of full the for XX% over the Normalized X a which expansion year Lastly, resulting is points topping in $X an year. EBITDA grew margin year, XX% prior

International X%, quarter to grew fourth of quarter. on and $X Growth or ARR to Moving fueled XX% our X% growing sales. adoption million, Commerce constant payments Applications a that, on revenue the attach, products, of billion. results, constant increasingly or was continued in with ARR guided line applications the our basis. The and our the XX% from create $XXX topped the and grew revenue million. a With X%, email $X.X grew hardware the GoDaddy on to for and for currency to related revenue commerce and and total basis. XX% Applications in X% currency products X% range and grew X% $XXX Grow by grow to adoption of commerce billion, Create

represents impressive as already the launched $XX with payments of progress to commerce our U.S., a on GPV GPV in provide an on new the surface with has amount XX% platform. processed into Additionally, across share of GoDaddy billion. the GoDaddy GoDaddy every efforts Payments. fully to QX the payments first we areas million. $XXX grown business, annualized key approximately demonstrating more visibility ecosystem will GMV the Furthering grew our dollar metric With quarter the to growth

quarter, the revenue tough than as we our million quarter larger year-ago platform have modest as in to X% decreased average from some benefited aftermarket a due previously business. the to when hosting to well the $XXX Core discussed fourth compare primarily decrease in transactions

the core platform for Europe in to to out-sized mentioned, business billion. previously exposure FX as ARR grew hosting uneven pressure. as demand As X% has well $X.X

Applications due basis. X% currency on billion, QX bookings $X.X Platform and aftermarket growing Websites email of and Marketing, bookings X% flat decreased strength on constant Commerce + noted to to X% bookings attach earlier broader Core and and and hosting the grew grew business. compares in year-over-year sales. softness year-over-year a hardware tough software on

mix. was on pressure due in some put down margin quarter, gross margins future. gets revenue Gross for primarily Payments the stream to larger will revenue this slightly the product as

are we Payments, so acquired there to incremental operating However, once accretive up highly customers and costs are those GoDaddy we Normalized scale. be relatively expect EBITDA set as payments to low on

X% and the Normalized of XX% quarter. a XX in points EBITDA QX to expansion grew $XXX an representing in million, basis margin

of allowed in our in increase algorithm high margins at than discipline spend. to GoDaddy’s Continued our a brand effectiveness bookings. allowed drive rate our efficiencies marketing higher to and awareness in-house us bidding spending the us

customer We also care. leverage in drive to continued

XX% cash per free flow cash to cash while last $XXX million share in per to over grew million, year’s flow share. $X.XX a QX flow increase delivering XX% the Unlevered free $XXX flow cash free quarter, free grew XX%

Turning X in below to $X.X a $X.X to exited targeted the at leverage basis, times $XXX total balance with X the liquidity billion. year the of Net on sheet, net midpoint cash range times. and trailing debt XX-month we landed of our million near and X billion, of

XXXX, to to fully share we’ve we repurchase XX% repurchased our approximately of count returned From diluted cash shares, for current XX.X XX% on of XXXX, share billion shareholders million February the net has beginning the reduced period. XXXX authorization. X, X, which through by the efforts, since our XX% reduction the January X-year target under $X.X On for

partners. revenue expanded and through way recent customers, to we customers, offerings On evolved resellers years, generate has the our our over

and We the ARR, like GMV health our show strategic at and business Investor of to GPV will Day. continue to towards metrics as discussed our use the progress goals

customers. As the and way customers a result total our have with of we is way updated relationship we our evolving, report measure the

now previously will versions changes paid the growth period, end These the to at addition subscriptions and of free exclude accounts that trends with meaningfully retention XX converted affect in do we to accounts disclosed. of our include not transactions have trailing In the customer software. the paid or historical months

the updated on We detail higher long-term of and definition lifecycle continued focus propensity historical the our believe around more the more spend. provides overall dynamic customers to a accurately cohorts a with reflects strength customer with

Under and compared rates $XXX definition, ARPU XXXX, XXXX consistent XX.X XXXX count the XX.X remained customer Retention increased in at and new $XXX in respectively. to million XX.X XXXX, and respectively. $XXX compared XX% million in XXXX to in XXXX to and increased to and

This of events. agreement our our Moving year full QX with several for to outlook signed Worldpay be start in covering commerce and OmniCommerce contribute to January, XXXX, arrangement second a to reach increased for FIS expected through of strategy half U.S.-based to offerings partners. on by small reseller us is and website a partnership OmniCommerce notable and the the and let solutions business strategic year In bank we growth of our our for attachment. drive customers will

We Application Commerce and are this segment in going and launch partnership about XXXX of and XXXX gives the excited beyond. this momentum our into the

ourselves in through to to restructuring, of result within will $XXX as our environment a will Platform annualized XXX a economic workforce, certain modest and million we of reduced Core spending, with approximately our of brands. position core structure current of This certain This savings combination the align result basis sunset actions platform points we brands future integration XXXX certain in On reduction necessary in growth. in and and a took revenue European headwind also segment. businesses for

million XXXX. the charges related be most We $XX charges restructuring with estimated expect of and exit other half $XX of to in of the to recognized million first

of total from prior growth $X.XX range $X.XX approximately XXXX, X% year and billion at bookings. the This headwind of represents In we to midpoint are revenue QX targeting X of points includes billion. the FX

midpoint the of imply Excluding approximately growth. this, our points of would X guidance

Normalized of during expect XX%. in range margin EBITDA We to QX the be to XX%

year, midpoint of inclusive is expect mentioned X% range. representing of from to outlook to from full year of billion, at billion and bookings be brand FX total $X.XX growth of For the we points approximately a prior the above. of revenue the This range headwind within anticipated $X.XXX the integrations X

X%. XX%. growth In are continue revenue we X% growth and to of segment, we of in to year Application is to Commerce with range Normalized are the targeted the the In projecting Platform, of EBITDA XX%. Core projecting approximately a expected during revenue X% to grow, margin

commerce gross As low- a be to in the we our mid-XXs pressured reminder, as scale range. margin be expected is to will offerings, and

drive we in this Normalized operational As EBITDA incremental is efficiency expected to margins. gain commerce,

shareholder revenue, strike statement over while value we As to have growing This to multiple levers sustainable continue our continue operating the while achieving in invest cycle. drive we previously, the we within margins, us drive business. allows to shared income control to down balance have leverage and a the

targets, our where our we in of our within guidance delivering year executing accomplishment this profitability we confident seen record margin are have against our regardless of on land and range. of recent goals You revenue

shareholders and XXXX, cash full remain flow share are the For more free $X.X $X to of buyback unlevered of returning cash are the flow on greater in the we than to free $X of and under authorized XXXX. of targeting to year remaining flow We deliver than greater free billion capital billion. than Board by per target cash committed the

evaluate will on the options and in quarterly capital a we strategy allocation use-of-cash our past, remains continue to stated our As unchanged basis.

approximately of cash $XX approximately payments expenditures $XX interest and million tax million. of of capital million, $XXX expect payments We approximately income

GMV, ARPU share ARR, will quarterly. we customer count and forward, Moving

rate GPV share retention and will annually. We

an a these of ability expand ever-growing value. may and and to a business metrics are fluctuate to together, embedded profitability over That given base. in our growth provide expansive Taken view revenue advantaged solutions divestitures as and customer said, acquisitions, on into integrations, comprehensive provide to time GoDaddy’s more based customer a seasonality. of continue metrics These position provide we suite view lifetime large, an we

business strong where resilient our are we our mission model, are critical we and to summary, proud customers. In of

ability are at outlined going of serve confident for pace in strategic and forward deliver steps will profitability the flow and into accelerating XXXX as tailwinds and revenue cash feel We the our to Day, taken this we Investor our growth beyond. quarter

value Our to predictable model and provides for us visibility the business allows operating remain make grow to decisions shareholders. us long-term to prudent in business the resolute our

who Masoner, hand be I’ll that, Christie leading to the over Q&A. With will

Thanks, Mark.

Sorry about investors.godaddy.net call, to remarks posted in prepared reference. the technical of the the for are difficulties our middle

raise ask bottom screen question, the if reminder, webinar be queue. the use the the feature to please to like a a added As to on of hand center you’d

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

on more congrats you you just revenue And increases, customer as revenue thinking first you, growth, the in the on growth details include or Thank ability growth a Maybe pricing guidance are does provide any price just raise thoughts just year. and well? can pricing? between and maybe bit the to little general maybe about future your XXXX how on

part we’re Thanks, in a overall FX to Aaron, in our that are some growth for we’re of and and the at through growth. therefore going look related XXXX, our One, few XXXX question. within our bookings rate. looking headwinds rolling thanks the the to at we When have year, the things first impacting

have And those into taking some Second integrations put we’ve effect. to related to into numbers. our we that, we’re headwinds

of us growth a rate nuanced I the continue products across you’re when that, look annualized for us, opportunities comes to can pricing overall to more take can. to take think we around to look and set and have those, it within for always we before at and we continue where take a account you into price market look X% when the we what opportunities looking broad to take we at need our to share where – market, price, base, we customer at

of the a we’ve on year. assumed partnership think we’ll that new some in around have half before there’s we’re going about signed we to throughout the macroeconomic recently. of persists of And, XXXX, second the related course, lot talked things obviously, some things we excited that of seen some about Worldpay commerce. we’ve environment And, coming the into And, acceleration we’ve that that XXXX

in would when That’s account, do into right. Mark take the that guide. are included as pricing say. actions, of we maybe I’ll those all And And guide, especially just factors we add the those normally

Thank Great. you.

Thank you.

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

Great. Thanks my bit. wanted expand on question. taking I just macro to for a comments those little

retention if like held look we at your it steady. seems rates So commentary, have

So and those reasonable seeing that additions we just for addition forward? then why demand, in when gave, And about net expectation? And you’re side, that customer in of attrition rolling macro net the terms on more customer be is be? lower look it XXXX of what we how numbers should terms at should you the think might a

I be strong. customers, some can when that year our Overall, to Mark through step items that, through and those retention rates continued was for can a look rates about items. very with of headwinds. all those. start cover we we’re we did maybe couple happy talked customers have Yeah, plus the see to with our just XXXX What about Matt, at XX% We talked retention and the

number. of a little pressure on bit So see that we did

on – talked in last of think, the about factors adds the call. adds a a slightly that for being I combination impact net the We the It’s little also weaker those XXXX. bit really gross

you from guide we delivering if net showing particularly, And the the the expect assuming continuing same generally to to don’t every XXXX retention to don’t Looking up for patterns into service. Mark, demand I XXXX. going touch company, we’re adds, and same products we’re XXXX, just, great we’re to strong because on the rates great but want know, the day

we to continue. those So continue to expect

Yeah.

through on with with remarks, our And to focus. a Worldpay those be We more propensity stated a us resellers. that our customer will announced. and to continue in will our certain a their We we’ll our customers, dealing is definition that spend with we’re focus access In greater as signed and they have customers. partnership noted but we cases agreements, with to we be of customers changing now,

for the So will going us nature net ongoing more adds and forward. and become broad change definition of

drive We’re on shop, we’re going continue and the being provide sure ARPU, all to forward going our focus benefits focus to that focus to one-stop to customers we will growth. on our continue to to continue making going on can a that

for Thanks my it. taking Appreciate Great. question.

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

thanks. Great,

On how in just appreciate was And than appreciated? gross the is actually would of it Was you your it in talk the update maybe is can cadence converging security? overall percent Core Or of any Platform just revenue, the large about comments what growth, just areas be as the core domains? the that aftermarket aftermarket or how a declines there were and and arrive on then flowing softer sort Or expectations? stronger thing. decline fast weaker hosting on is greater add quarter; versus or customer own it and color with growing, any that

I’ll it’s X% to out Yeah. it growth still coming talked XX% are the we our Perfect. the Platform. we our about to overall contributing revenue. on our within And start pressure of of with aftermarket. about Overall, about year, see Maybe of what is the QX, out consistent today continuing Core revenue coming with drivers

pressure also we European still retention we hosting, especially business. seeing around seeing on QX talked we’re core progress. when in pace just we’re the not market platform to the They’re about you So that see it of And GoDaddy uneven demand And in hosting; at saw XXXX. rates we that hosting take platform. continue and in outside the impacts for

the to forgot QX saw second because that of think, that QX, see I and been going the question. of into there, consistent at think And, going are we the those XXXX. I have we when looking I’m things half to Overall, have QX I pause

Yeah.

large it dovetail specifically there, to is. to just trend that answered being with brand the sunset. what it continue Is addressed you so worsen? really that on But a the how perhaps product, aftermarket should Mark, of that’s we hosting piece, were expect just You’ve kind

Yeah, the about talking Media brand hosting big for we’re Temple, brand it is GoDaddy. and is a

Great. Thank you.

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

Hello, taking question. thank you for the

those Firstly, drive in that half refill is to the bit like? ARPU Will size growth customers, that Worldpay pay? of get customers seem arrangement in expected those What different economics on for like if the arrangement skew the opportunity specifics lot that be partnerships, second existing for and this the I of then terms those Worldpay partnership encouraging of little customer hear was might any look the a sense year. of on your wondering that would a compared more the partnership. does higher of to to we customers

right, talk to how bigger the early end to of our Worldpay reach with medium the absolutely the next the business of that’s sized new putting reach But products the And in given or we’re we’re course, and relationship customers. is about too business, customer super the ARPU of micro the product it’s opportunity, our is market. an you’re of going small ready the specifics Worldpay. and Yeah, create opportunity sort would Worldpay about of develop. of exciting the on sort But to excited partnership

excited where about our between teams some can to two the go. a this we’re it’s to see pretty we’re together, excited the companies, pilot, long-term partnership work looking, are customers and starting We’re in

the the only. also is XXXX U.S. launch And Yeah. for in

very more about lot and very, the down a we’re excited it. road, opportunity there’s So

first We our the leading at hit out comes overall second of half have platform. when half. platform, But how milestones to into some revenue year our the look the commerce commerce you that of and

and hardware have sales. We software

reseller. have We

Managed GoDaddy to Marketing and have then and have WordPress. + attach-related payments, We the we Websites

And to will customers software. It’ll it’ll attach Managed hardware and partnership + us of Marketing hit to several some also Websites and those, their allow reseller we’ll WordPress. impact with directly start Worldpay and have

given nature the we not be think So XXXX, to the to growth ability only into drive rates of but ARPU going this around relationship. fantastic, commerce are our we go as

trends could macro. I sequential trends like if in in the Perfect. curve comment disclosed I one get follow-up, Any in you feel look I’m we’ve of in this it it leveled And are helpful? At if in where kind out and Does I what e-commerce? there an view point, your could ask of ARR slight if terms the would improvement wondering year-over-year maybe we the from be Grow on Create of customer improvement at just and trends.

do it’s to… – Well, you want

No. Go ahead.

Maybe I’ll well. go in as and first, you can jump

with I think, macro, continue the we’re crystal everybody and and of hard sort we in at what our to indicators it have it’s look the predict But we’re look control. well. execution of we pretty trying focused none we at sure business us we’re we the it. best And, really around the results, that and run marketplace. And ball, happy the looks to I’m uncertainty doing our on else then of as to see but the have the sort to and at what see we’re and data

an this up economist in environment, gave to truth. I trying be Yeah, the that’s

business, broad too. a have We

+ of make taking this a seen areas. – there. So customers million impact progress to lot when continues around about example, our converting XXXX, in transactions see we see through continued impacts aftermarket, existing the environment talk going the XX seeing about to attach-related the Marketing, we’re people or funnel, commerce to customer we’ve over base our talked But we’ve progress we’ve And the Websites coming in payments. different of to into are

place, progress stated streams time the first as have revenue all we and the and for objectives, excited really making they’re that towards especially beyond. we our We’re in look XXXX at

as which different overall, on things but gets continue different continue business our we one something happening, need based to the evaluate impacted to we us monitor. So, that to thing ways protection in gives

it. Really much. Thank you appreciate very

from ahead. please Our Ygal, Citi. Ygal next Arounian question is from go

good Hey, afternoon, guys.

committed the flow cash gave, macro guidance of still sounds we’re growth EBITDA, given like it and it XX% to to the free sounds the the then business. like off So you’re commitment and revenue stepping the

growth guys revenue the about any help where thinking typically coming on be million can thinking just those savings, are or you and color way share what first, items? – right OpEx then from could about you us you thinking. And think which $XXX through think where the the in on are should So we to more line

start, I’ll add. Aman Yeah, and could you

XX% about at year looking components. year. Investor revenue per our back Normalized cash we buybacks, Day, cash flow going to profitability we and in our share flow thesis So the main per into the EBITDA, And looking XXXX, forecasting talked in the were share started growth, investment at coming the XX% share, the to for

year of the ahead on profitability. so target XX%, we’re exiting We’re

delivering share the $X, at greater We’re targeted cash per we than flow had $XX.XX.

So we our really those happy with are progress. two,

hit FX environment our like booking, the Things and that subscription out. In bookings. roll takes to our revenue, time in especially macro

leading So that we’re into to revenue seeing related headwinds XXXX growth.

some about. of in on actions the for integrated that revenue headwind with building we’ve taking the brands been some talking we’re also We or

we’re But in a stay cash around about to lot can meet flow ability our what take goes environment. versus be to back to headwinds So positioned profitability we revenue are the well the we of growth But as a time good share there. And into to our we get we’re on, and feel our think objectives controlling we to on company to tailwinds we revenue what’s XXXX. our really per facing for will time double-digit going positive what buybacks, control coming committed so it macro are around forward. share. to other going our bookings the We roll monitoring

that, tailwind will into into see a a go XXXX. we Assuming we as turn headwind

you think it all. covered I

to put medium take and an the sort if might to the position business doesn’t change allows focus From to macro milestones our term. being perspective, and a position ourselves faster long improve us the and if is it entrepreneur. our my share. be we where huge. and secular very and the out success our wanting get moving top-line I think opportunity internet, grow idea excited about internet, good as bit, aligned it with that it are to inspired doesn’t a actually trends there a it it direction, metrics, strategy, I the GoDaddy those is can super change coming what around in we’re transacting of people And people be that on the And their add to people over is pursuing

coming the on savings? where OpEx from Great. And of specifically for kind then, that’s

areas. actions think line some of segment around give some were And targeted things primary our areas the marketing, those think, we’re were were the a within HR I color items And ones Platform Core the of different of recruiting, include, expense. the couple area. event. this primarily So operating One, I in to the during most then, our that of

partnership interesting. Okay. on Worldpay it’s question then last And the there, really

in of the more do strategy I and partnership think become you have growth? the shift Is future done? first things retail and customer major that to bigger a this a part kind this, guys like it’s growth of

store, to look, small path terminals businesses, GoDaddy of every see like to reach customers being by to software GoDaddy of Yeah, and millions a in gives to see a micro access partnership faster. and and our pool us millions used be is Worldpay able

reach to strategy. as our opportunities So our other present I opportunities aligned or well. at We’ll goals say would And, yes, that it’s much themselves as strategy. look very execute core to

great. Okay, Thanks.

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

just Great. to bit I hit on wanted Thank the more. a so much. you little restructuring

help about outlook then for And demand? versus you on to could just just the guidance? to your on an we of about restructuring growth the revenue business? and outlook reinvestment So improve from the QX Is QX this should in how related, start context allocation think announcement with us understand resources more

have QX, can And look how reflect bookings we operating growth QX. what to to size controlling it growth of at we in of growth it where our to primarily for look we invest. core non-strategic to as into macroeconomic and driver I’ll applications that’s area And in an on hosting be the our and in, invest continues continues it And XXXX. us we growth So we We platform, revenue dev, looked flip QX assuming our is going at persist structure was out – be coming evaluate hi, the it to and leaving commerce versus comes started a XXXX. at monitoring on going I’ll with around impact when throughout to today needed we to and brands the environment start XXXX we’re year. will the with and start were looked into the commerce we of right control operating some to going tech productions the to When at impact, had the Elizabeth. and that investment leading an side the that from perspective. bookings

in to use forward, own the to one to things we been to dev, need towards push always and continue it in have you win been forward. going the and growth. investment can those when of the to the need to our has I is again, on there’s tech two us innovation, for you that both comes commentary, need have Commerce, care obviously, continue strength And we continue for industry customer going innovate. you to we innovation to customer continue and something that. So look relationships tech relationship, focus of areas

investment areas those to for two continue the So of be us. areas

the ARPU customer on any through of versus context as to into XXXX actually XXXX, should ARPU, for about level how think ARPU recorded grew we any given the accelerate And, the just for XX% just just you of in is and how there improve the in then And count XXXX. attach payments? commerce opportunity Great. that the sustainability change you

range. customers on exposing customers ARPU. talked bringing our And, more to and bundling them and about something around focused right, more existing and and absolutely we’re Yeah, many of more products over strategy product quarters, growing is new we’ve our about

to of happen. We’ve continue we’re ARPU. the just consistent years So and comment we’re touch on to the over see years, opportunities to the had right are sort And investing trends at ARPU growth that over absolutely looking decisions the and similar. making to increase your

with a increase transactional entity for Yeah, big right an that commerce, one-stop on us we a on of ARPU. think opportunity base create will as continued but we focus it nature from spend be the more subscription comes customers now, will into get businesses of to in shop, existing the our the revenue our greater XX% to opportunity. to continue

Great. Thank so much. you

comes go Mark, line Mark of from next ISI. Mahaney Our question ahead. the please from Evercore

increased The thing. disclosure is Thanks. good a

and quarterly doing thanks going So, for that forward. it doing

domain payables enablement? you on that? You Thank And Payable for more marketing color timing in any color the provide talked then U.S., you. Domains on the for any launch about international

and you really starts launch of that some up to Domains collateral, start domains including given to PR, you’ll Yeah, to show the in we had thanks, in under our today, Mark. marketing see Payable past Domains X our large weeks in Payable about of this the site marketing The with a roll can talked fact, in out. I think get size management, just about it I’ve lot

So all different we domains. kinds support could of

with that ready We’re in the U.S.

our site, Now able to in the see marketing for and so new into that our dots it, and is it to we’re what every understand is. bring so them to existing this going Domain into and connect it they it just merchandising start customer promotions, Payable that a to the start to bring bring

but a international, just on In global, work terms is rollout obviously, just Domain we no this the product specific very of domain world, timing appealing, should because yet. everywhere feel Payable just like international with name in

Okay. Thank Aman. you,

Thank you, Mark.

ahead. from John, of the muted. Brent on go line of Thill. John, Our Hey, [ph] next Jefferies you’re question from [John Bryan] comes behalf please

John?

Thanks. unmuted. [ph] that, I of about Thill. on behalf guess, Sorry Brent This is John now

there about on of question sort margin operating impact is you on think FIS when first what The and Worldpay, that gross scaled, have the might is they when margin?

Yes.

certain XXXX, think but have impact it’ll XXXX, momentum XXXX. relatively small going into give as it’s to So now as start hit milestones, it’ll in be to us within going we we

expect Managed us margins. improve ability to to down about breadth operating the margins but leverage relationship it’s to hardware/software as operating we ability get start and overall, accretive to be scale, Websites Again, other road. and transactional, and a our then the leads leads + to of margins give our We WordPress, fees, not and is the Marketing just our to it operating our attach to that should the

We’re focused going very relationship. think right to to on the we very excited on It’s overall it U.S. the moving broad this. global now. forward. go exciting opportunity about a be Again, it’s is But

like you. halfway does the it feel it’s terms to Thank all what of the QX. about in environment, then, starting at base? And in customer any through recovery of And we’re and you. Are I’m with QX? see see you new Great. to activity similar you Thank trends? wondering, demand terms

look There when the work, Yeah, at that do I that continue trend And, see last to at we to in the of geographies, in are past we quarters uncertainty happen. around one ultimately seen a – can the we stability, of I’d But good quickly. sort sell, even is word continues think, products a fluctuation. long-term. no were see trends right what large different we we used which say is we’ve certain is very the which going that to what’s in look we’ve any the very, geography, – QX, some seeing looking over we’re now, overall, thing. change from into core But, couple when

differently aftermarket. – as we one is that large obviously, there a and the environment, go we’re different assuming continued muted stays aftermarket, seeing We’ve for bit we’ve related see answers, to environment of to of we we large us macro this transactions to in – coming to the see talked go into still it’s previous out back that And, think the gather, to opportunity again, Yeah, not business are that. and monitor impacted parts my our continue about XXXX.

continued So that is XXXX. has something into that

we around hand, see grow other seeing we’re the attach greater commerce, to year. and trend the throughout continue On the

So in rest we’re excited the year. going the things about to of

some that you. revenue acknowledging some we we’re develop time may of bookings Thank to subscription take However, into reset under or these as our business.

you. Thank

of from go ahead. Deepak, question comes to Mathivanan Wolfe Research. the Our line please Deepak next

pricing potential philosophy see domain want philosophy your raise a the the currently other expectations happening Hey, guys, on on thanks And about taking talk just either you side to ask the questions. in tweaks for on lot for – given the inflation. pricing XXXX of prices about There’s to you market or in products I XXXX. Can areas? whether the sustained any

in your then, question, seeing market Websites core Marketing are any in in And products share + second you domains, currently? shifts or

On Yeah. Deepak, continue to have we nuanced pricing, a approach.

also pricing there we about specific products on population geography, and based talked As before, your is serve as bundling channel on our the dynamics, well. the price I’ve customer based we

provide that much have. price maintain also that is and the our higher customers, products services than where the we We we to we provide value

ad we price nuanced it, and around we be So a over of us last to lot for about But we opportunity. the to feel spend. have dollars capabilities because market move us within and pricing return geos continue year flexible be around to to to and get how how there’s on do continue allow that channels sort how added we’ll best we we of the between

So, sort yes, markets, you’ll see our there’s but some Mark testing that’s clearly sort like room – some see decreases, share some the our from And of approach to you’ll as some actions as in you’ll some of also you market increases, in well. see us, take also pricing overall says, because guide see all are which share there. that to shows

I move marketing We’re we constantly dollars and market take opportunity, when now we’re testing than things. we would in past. were an in around share, much see say, the And able to faster, we’re these to going lean and quickly

price. So we market we will lean see opportunity markets we share. price, And take to and will in other where take in there take

expect I I contribution other unpack a then, the areas? one follow-up, just was asked you already. some incremental ask little if much from and quick And and XXXX Can these like payments, this bit, you guidance of of it. things if terms revenue can specifically apologize maybe Got growth in how

Yeah.

growing the haven’t of in platform, our Again, pressures which each our commerce our of applications of around areas versus core we’re about right and talked and is looking breakdown in the aftermarket. we’ve on seen area a subscription around contributing at hosting growth We businesses. our focus revenue the into obviously higher ARR now some we’ve is gotten right guidance now continued

at year, the effect rollover well of the our what the stabilizes – looking in should but we in continue to dollars our will remember, But a look down get of excited a all of assuming the FX tailwind as for year. at say, headwind revenue business, of first we the a between contributor. XXXX. as haven’t into to be part as broken of we out that, back that the half condition We the we’re some we as be macro a would subscription that become commerce, I about And looking

So versus a this product we moving into product gotten this type of of haven’t parts lot there, things.

thing We’re we out. one of that’s extremely the the call to continue commerce about excited progress

that the about again, ability shop excited we able those see continue that contribution going to And and into of We’re the to continue momentum our us be and applications to opportunity customers in be around long-term our Worldpay, XXXX, business. we to gives it our commerce for pursue. one-stop

remarks. Great. Thank for you. I’ll Aman over the final some now call hand to

for and Thank you you, joining all Christie, us. thank

focused always business. As another good We’ll the of to business sort and like and quarter, energy I’d the all continue thank grow drive GoDaddy the to employees you quarter. to for see next