GoDaddy (GDDY) 2 May 242024 Q1 Earnings call transcript

Welcome to GoDaddy's First Quarter 2024 Earnings Call. Thank you for joining us. I'm Christie Masoner, Vice President 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.

If you'd like to ask a question on today's call, please use the Raise Hand feature in the webinar to be added to the queue. On today's call, we'll be referencing both GAAP and non-GAAP financial measures and other operating and business metrics. posted we financial financial equivalents in measures found year-over-year the otherwise why of and may unless today's of Relations comparisons the in non-GAAP Investor SEC. Growth our our to presentation furnished earnings discussion release use investors.godaddy Form measures non-GAAP reconciliations be site on A at our X-K or with on noted. their represent GAAP rates financial those results be will today forward-looking related discussing objectives to as respect future our The future matters we with and statements include or strategies operations. such to forward-looking uncertainties our are in These periodic statements are in subject to and detail that risks SEC filings. discussed of those that May Actual results this X, based on from forward-looking as statements. Any are contained we materially today, make forward-looking statements may XXXX. call differ assumptions in on the required obligation information or we undertake to these because pleased except I'm Aman. that, law, extent to of no statements by introduce future new update to And events. With

you is At thank for today. all. for us everyday and opportunity inclusive make empower afternoon, and to Good more joining mission our GoDaddy, entrepreneurs

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accelerated our commerce XX% North and expand pillars North EBITDA showcase, bookings free growth meaningfully In accelerating in and Star, results cash margin data, on infrastructure, flow flow continue QX, key margin monetization normalized commerce applications applications the off provide The start to It behind Investor delivering disciplined the Today, Star AI The and we are Day, experimentation XXXX. year-over-year. free cash helped on our a our of customer Airo. In we software expansion. of we to are our the I XX% growth QX to GoDaddy of and platform our strong we shared and game-changing segment our service As power large-scale points. At also growth progress learning, margin create combines platform. GoDaddy power our previously. shared GoDaddy our basis and drivers. XXX our expanded wanted software X like to initiatives an and machine update to experiences in

enhancing an First, pricing for important our GoDaddy. remains capabilities and bundling lever

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continues the Third, to The customers. base am fast our on of share primary annualized within a that to grow conversion surpassing milestone. $X driver commerce, GPV be pleased existing I to at continued billion pace,

payments accept the held device launched this addition, hand fly. we Smart Terminal GoDaddy In customers allows to Flex, on a anywhere quarter, our that

within fee solutions population, commerce and increases possibilities transaction customers. value the we the sale driving continue higher-margin tailored GoDaddy us our Our in for subscription week, XXXX our began to of excited us maintaining The tremendously OmniCommerce rolling best payments. Last still on status well out structure up but significant opportunity an for payments. Fourth, so the be focus of revenue pricing through to is phase our customer offering we driving evolve to range as with we our across Airo. about are introduces growing sets our value

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to a be this flow optimize. and we are can actively which new different triggered We excited are testing this is Pay points Wall at that

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Thanks, Aman.

North seamless durable fully our diluted to capital end announce million. The converts strong execution reduced are EBITDA growth one-stop commerce quarter the QX cash free to our and track of free which revenue double-digit X:X million, expansion technology growth. XX%, strategy, cash outstanding coupled key with in our North normalized our we underlying and Star, comprehensive building our $XXX value. flow our of of impressive are pillars $XXX results progress allocation which shop Star delivering approach, improved are of and customer to of toward margin application shares flow We We've an record strong continued our alongside the through at demonstrated XX%, attractive the pleased and segment ratio disciplined continued to

retention attach Our strategic results for building drive rates. foundation better that while focus conversion Together, shareholder efforts a delivering enduring and are impressive these is value. maintaining

well Moving of guided to to as the efforts, the bundling approximately from a our up $X.X and basis on results constant our impacting Total initiative currency end count and also financial migration grew X% aftermarket. despite the XXX basis the of stable our and X% in a remains trailing ARPU $XXX XX-month by range our points. as divestiture for and billion, on grew basis, headwinds pricing on high reported demand revenue exceeding the strength our strong quarter. revenue and to customer

million Additionally, customers XX%. and at with productivity our and our and bundling growing initiative above XX% in guided remained clicking offering, Double commerce. our strength included across major $XXX product or building higher-margin line more X of segments, in rate retention solutions, with XX% Commerce products range. revenue, delivered performance website this drivers all in pricing products including The our segment remained the Applications & into customer

payments first up GPV points. Segment margin XX%, annualized XXX over billion time. Additionally, EBITDA for $X for to GoDaddy the basis was grew

platform billion. and up million, Applications Lastly, ARR up & Core which strength exceeded XX%. revenue $X.X X% for XX% totaled Commerce $XXX growing domains grew guide aftermarket in on our X% to

Our EBITDA to secondary higher in increased XXX growth transaction points. XX%, or a divestitures. Segment market, by pricing up and in margin in primary market grew secondary basis was core strong average the by partially the platform for was driven and in offset decrease domains hosting the for demand a primary nearly market. value This

exceeding margin expense $XXX our for of X%. XX% an up all within Consolidated delivering P&L. normalized $X.X basis line the billion, on million, expansion gains points, EBITDA segment up by driven our items guide. ARR was continued Margin to was core Lastly, expanded grew XXX XX%, platform while leverage

reaching we our Moving on constant to currency basis, billion. bookings. In X% on reported growth achieved QX, and $X.X

collected productivity a in increased the by and the Applications platform aftermarket in strong bookings Core period. demand on website pricing cash commerce. for of commerce in products a building improvements domains momentum the in grew XX% powers offset primary secondary primarily flow million. points from growth subscription headwinds grew market, for $XXX bundling XX% our free million substantial As revenue. and our during on cash and EBITDA profitable $XXX bookings X% of ahead flow performance to our reminder, X The with the the and and bookings hosting. Subscription bookings quarter represent cash in coupled bookings, solutions domains impressive to ratio free in X:X to generation. Unlevered for of to to flow normalized cash grew convert at cash ability commitment free grew XX%

end long-term divestitures. Through change to quarter debt to XX% Capital million also we We in data the cumulative our took center proactive $X.X are XX%, expenditures ahead were by totaling cash billion XX% resulted year. year-to-date, of a since the brings our effectively outstanding to Fully under XX%. our and were shares. repurchased current of compared favorable the reduction from last we repurchased shares balance This shares gross the X-year these interest million shares, our XX the diluted authorizations XX, for in of shares shares outstanding reprice committed at $XXX down reducing authorization million April of payments quarter and million. sheet measures the XXX to managing inception targeted X.X

share successful for continues drive impressive free ROI our program cash repurchase flow to deployment. Our

We with and other the conditions we quarter, to have $X.X current plan compensation authorization, under and billion remaining minimum subject market to every dilution. be market in to share-based our factors, a offset

the $X.X We was debt Moving liquidity net total sheet. in to X.Xx Net of balance cash with of and outlook. QX a basis. Shifting $XXX to leverage billion trailing million XX-month our representing finished on $X.X billion.

the growth strong revenue to representing now of the for our be full the we of end billion year, X.X% are revenue start Given between year expect year full our $X.X lower to $X.XX at raising the We and billion, midpoint. guidance. range

we representing are growth our $X.XX in million of midpoint total range to Additionally, the of at $X.X billion, range. the X% QX of targeting revenue

we the deliver low revenue We single-digit year. In and QX growth second expect expect low to core quarter mid-teens applications deliver the segment, full platform full our growth year. to the in in to for commerce and

in We of leverage track and drive operational are model. expansion, to proud will to margin continue our discipline maintain our of record we further

We EBITDA XX%. be to QX for normalized expect approximately

normalized Additionally, Full margin we to meet EBITDA be EBITDA approximately is QX. track on in to XX%. margin XX% remain normalized year expected

capital respectively. On continue X% and entire XX% Day them at fueled The year remains for flow billion free our flow optimal to our shareholder and subjecting targets and $X.X our we billion free to published of team ensure by to plus for Commerce shared top full mix segment, with cash $X.X track on free framework return, unlevered Applications cash cash delivering allocation, are $X.X for XXXX margin growth billion to annual & evaluate rigorous we achieve deployment. normalized generation in opportunities cash the EBITDA returns-based to will X% expansion plus X-year plus, We cumulative flow. accelerating we the committed flow GoDaddy Investor line framework to against of by

for Our allocation our creates ratio, value profitable flow EBITDA our growth and to free framework, capital shareholders. significant X:X with cash normalized disciplined coupled

we with to towards While from from execution. With the our in strategy North Investor will open our progress our strong I am and Star, Christie continue far Masoner done, confidence Relations we pleased team, have I questions. call have our and are for that,

question Our Thanks, first Arounian from Ygal Instructions] comes from Mark. line [Operator Citi. the of

booking Maybe particularly number off in meaningful in didn't half XQ, I'm start in strong think in we growth I to strong pricing XQ almost know the XX% of acceleration your the growth. on well. in of acceleration guidance. growth back about of just really but type overall driving booking Typically, as revenue bookings talked see there, you that going we the is coming A&C. XX% that And

here? of translates to year all look kind that and we means how we So how about should as whole what through that the be thinking

Ygal, in QX and the year, have coming couldn't the about we thanks We be question. the bookings about the rest impact A&C doubt the of of out more excited for it. momentum growth no on the and

different As of the we get time. the bundling, just be it on is periods recognized reminder, bookings from revenue a and can into

numbers that our be while a size growth excited the takes momentum business, it as it. So to into about the show couldn't obviously, continue. But on, given up more we of go will revenue

do few there headwinds Just a we a Those the in too, will QX. relating have peak to reminder dispositions. out

year. abate a few those We we expect headwinds there. them out to But still of again, throughout have the

that great we some the have momentum, took. balance So of we're again, actions to trying we but

we But excited of updated the do, put all about you as that pretty to lowering we bookings. they would together, pricing and impact bundling was year. end yes, I appropriate comfortable thing say everyone the QX keep and some go throughout the on continue of had the rest of that initiatives the are we're the low we'll guide when the So and to

you And out here, under got months comments rolling but Great. maybe any of Okay. know could you here. I Really Airo, we've internationally belt where helpful. couple more on qualitative some gave share our a

kind domain reflectively just conversion on account marketing. can Or hats they're conversion, whether uplift or you're of website since Anything doing? to how drive the applications seeing incremental You has it. ARPU seeing when mentioned you've their hang what been of customers the kind of else is Airo Anything in investors -- -- to move it's expecting? well on kind you're offered Airo, growth

but about a areas remarks products for engaged. methodically they we're amount soon a products them discovery, of products which shared you through monetization seeing moving discovery, gets today a the about attach more Customers around What they great they with share metrics with they excited And can our Super one-page very it's that cards, are with start of they engage getting we've comment I which Pay more see shared, means have where buy for we're little does phases. site, all we I about these a on those has just our Airo. well. cards, for shared GoDaddy those I'll say, our I've prepared domain, is to Links finding customers. our products. And in It's as customers offering and X it, their be those to domain, can the that built using their that about Airo that coming products way gets we And to vehicle Ygal. results roll to share the job We that best started carry good learn fantastic to fantastic to starting Thanks, customers customers. it a know new And pay doing engagement, there. me, out created engagement. then way customers start very to me. a as base is also where well website continue or

is didn't website more Airo. than we regular when Airo Just with getting engagement have

confidence engagement, we started which will at give to the So these this out and multiple take going and And to of for over discovery Pay have that levers and cards move deliver are to think results years, very we come. next play. we've really in roll do towards to couple And build as monetization, Walls years of us terms the stuff. starting we're well off

Next comes Benchmark. question the from Mark Zgutowicz of line from

follow-up bookings the base versus initiative, first a point? attribute across attach acceleration? just your it product to your curious impressive Curious A&C number. pricing a pricing how just that on pricing terms as Maybe value-based at you A&C AI this that of That's A&C the on or customers -- is pervasive question. much in touch all And side, how

Mark. Thanks,

gone bundling our the pricing a our across the touching What is of business, It's all and out you're to and roll not growth starting sort lot. across starting bookings AI-based application pricing, in initiatives hit bundling, then have too. and Our value-based productivity seeing really combination pricing A&C. to of and website

So go super to more is excited about that. there. There

So that and customers we're and that we time, going on to AMC, to area to them continue and sort go go across GoDaddy new just over of approach bringing but these to of have. in bundling every pricing not invest

conversion it. I on bit, awakening And rate I that increasing you there attach expand giant your then think time. rate, just to seems for you might you're a to be customers. to some maybe a maybe hoping KPIs some sleeping able Got that is some website had that Okay. but just mentioned leading was for domain that seeing, Airo maybe be

sense Just that kind how of could get of a trying significant be. to

But weeks base. We that's putting new and base. for customers. our website customers, coming days, Airo And opportunity, see rates our discovery really soon a do of we're our Mark, course, large customers. actual engagement and website of even with new still X, significant or into our we attach. it's like take literally a the early of Obviously, well. sort With Yes, smaller from in not large, X engagement that see is doing are strategy

customer take it to of approach going little in into going it's a a and So given the large our manner. time, base systematic

taking We of It's more if about base, same share be we're tell And able be of data it. be have learnings that is into is methodical what of customer this into take productivity gather taking going we'll this. will the little approach sort our see. business. it for years, I our to to from the publicly base to you, going But can We're to super many commerce lots a time us base. an bit into taking and many, talking about excited new years, we there the indicator engagement say to

Our next the comes Oppenheimer. Ken line of from from Wong question

I changing Great. the of kind kind terms impact you wanted think then rationale if and to you're the pick there? near-term maybe payment your and any sensing pushback customer of of how of in pricing that structure dynamics kind behind could brain how about

tested. Yes. We're like we've our very pricing. methodical, Ken, to And talked about, is on everything approach

tests our our It we trying to we So really as the it's we're multiple money. have differentiated allows offerings and phased out customers. portfolio to us have value on industry customers. the And position in for there, while more said, And best we for maintain create being within basis. our a for reach products

really products. activity as broader is commerce across of the are -- mindset things bundles. we'll vale see up commerce differentiated we're And with bundling you'll to opens the up talk and over a sort next few quarters. But about together pricing this for pricing it we and what something So different of for the same for of up trying set bringing us solution of, it more

bookings. teens we between it. be of of should of -- the remind of Mark, terms lag in Got and just us in specifically, then revenue kind thinking And what kind And terms just maybe, help through larger like delta on how obviously XXs, kind what from just looks that think there's of A&C, of convergence the the us what where -- like? kind much to -- a

revenue, look at momentum XXXX. take see that the can is it up in out think ahead seeing to multiple many points I'll revenue different us like as aftermarket. we -- as multiple think of when we to the bundling different be we And level And going to as we're for initiative to, The will and bookings Yes. we well to a come the about give have it the terms, different we a in way continue results things ways. products, is be revenue lot X the pricing of X momentum bookings of

term quick just in that little a over. around a Just add, months XX Ken, our general

give of about you the take can bookings idea over that of how XX distributed about So for will months months, XX sort get revenue.

the from Raymond line Beck Our next question from Josh comes of James.

ask and the sounds wanted prior. engagement just discovery uplift I maybe the driven a It it's place you with to some on versus had like what success Pay of Yes, Links. about in

a text So social are better there it's where certain or of driving engagement. job doing channels, whether it's

possible. to understand context comment behind -- Just would some like a just bit little more if that

It of customer discover way sort get of name, to what did of And the ways place our obviously we of it is set Links, domain at Links. But engage cards, with higher in these found Yes. Pay a attach helping and Links together we customers way we've in Airo, we being very customers saw using manner. brought the introduced And we Airo. that it all similar as in simple without vehicle there The had And happens right start Airo customers was best sort capabilities. for and automatically. transact a introduce than Pay in them with in all as right? our we them very up customers, capabilities rates Pay other Pay front the it helping biggest encouragement buys put the the the existing Links when is these significantly engage of

last them this the and customers be So to part sort And to driving $X base continues for of that's of GoDaddy converting annualized the hit with did that payments. GPV into going engagement billion biggest Pay quarter. our the GPV, what's Links. Overall, milestone we of

with you be super these really When base of you? last put should when there to their follow-on customers Is an move of to think for And kind opportunities, payment come firmer about pressure helpful. really the up on them point. just existing maybe of kind incentivize that over. chance that's maybe a conversion looking of some kind to and provider, That's we them opportunity existing renewal you look at a the type to at for

how promote conversion. Just help understand helping you're us that of kind

on events, are renewal with for example, like There opportunity. XX-plus you lead Yes. have customers, what that a that an NPS a But a up we create some right? in may transactional has these said, care. customer-side coming with customer we relationship is GoDaddy really

Our a customers great with relationship us. used having are to

So them engage them, idea when of we offering number one, they're open to GoDaddy Payments. the GoDaddy

of our it GoDaddy. a realize The start with with lot pretty with partner way all great. this stuff is with, approached do relationships Well, my that them payments, of we shop. one-stop can They customers can didn't to and we other with works. bill, had that I Oh, I you introduce the to saying, other because like We offer we this even attractive the second works pillar I what make have that's them work easier, them one GoDaddy. by it's seamlessly one Oh,

win continuously that that's are the works, us customers. encourages you've So that, that which for third what then finding sort today, in of that of we as got that's And best the is too. And sales in pitch. market value pillar pricing a a our comes

Payments, and micro We businesses Who what's have run adopt driving great growth. our us. GPV GoDaddy with been that's relationships

question the from from comes next Vikram line Our of Kesavabhotla Baird.

is first question for My Aman.

been now entire has Gabi that team. remarks prepared your care out in the rolled mentioned to you think I

the that's early curious Investor been reduce having on the of terms efficiency? at interactions that data the for and Just I impact you there team. have in Day, time the points to the talked about for know potential what

my you're from curious and It seeing so there has question care early EBITDA first been like for Mark. is quarter the the on team? And looks you then reception far the exceeded Just what what second guidance margin.

there. outperformance you about leave much I'll And drivers if the some of year? could factors versus specific was balance the that of how it quarter ultimately more the the talk of that there? And the benefit could of wondering Just to

amount always guides where Gabi take excited that taking have I'm what do Gabi. from has able the would move to had it tasks that. to guides we that to together every a many rolled is doing live Vikram, just super is able that sort of of I long guys for that's a a the customers fingertips us and using start out. are otherwise quick over how years, only or is super GenAI company, people for use to to cases bit couple term, even on offers the combination, to power. But are Gabi, in up word automation starting paying XX it. that putting adoption There summaries new a start AI with for mentioned bring Gabby guide little do data GoDaddy right? of use to massive right? about use and that's The to to of the on working and million And the bring time Gabi a it. over on training more where excited with learning and powerful it tool care Being already are the tool of of the

cases So mind. of there's use in have lots we

the over of couple front it. about fantastic in next us. We And yes, of map have excited pretty road years a

quarter-to-quarter, that. the the I the on our A&C of saw of may ability Vic, saw And fluctuations you some And would QX, if tailwind always a you time. you normalized over timing our QX, margin, expand in pacing said benefit have depending EBITDA see to with will we some margins to on look the we of Overall, be say, accelerated spend.

that And to entire all out. we've that. all feel benefit -- those year. track the we're about that we that, the obviously, talked For and to and for and And XX on to see place, the ability our XX to related tailwind expand ANC good the going remains framework in for of we year, about for the continue exit, we're the on track

of the from line Aaron Kessler comes next Seaport. Our question from

just some talk along Maybe just was macro, just know that there impact you maybe on also I may just update I on trends that? kind And the any that? first in that? are on And then point, that year-over-year. to reflect -- customers trends can If disposition [indiscernible] there? seeing of assume you're on you what you seeing with

Thanks, Aaron.

the But course, the macro, gain. adds it's customers And that to of of again, the lot -- I power company, and at continue strong of We top think I really our a the in. The will put believe steadiness our us, is efficient have for a really an and and we as lots And and opportunities that. in we been as returns a On marketing talked good continue us the coming of getting represented to marketing in is And about a best as to had of terms with gross get continuing and for macro. in we to I to that data add explore coming at short-term internally the come gross divestitures funnel. which the steadiness in firepower to on efficient more at macro, better to them. a better, disposal. driven right? offset integrations look -- dollars play continuing at and in word it XXXX positive feel think for that's strong And some

Evercore. from comes line question from next Jian Our of Li the

So to to I kind want Airo. go back of

of to you contribution the the quarter applicable sort it in Pro I and think still talk contribution that early DIY monetization. -- for contribution of revenue and/or for alluded about if also, Day, the And First, like maybe broadly to Investor of to here. can you kind just being you this any users. Are baking across sounds Airo in days to matter? kind So in any of Airo bookings

building features or community? So wondering for I'm you're is pros if product just for that the any specifically there agency Airo

first Aman will answer are we The discovery part Airo with there. right And looking in engagement phase. Yes. way Thanks, we're the at and the the I'll second and now, Jian. part, the start probably

hit our for monetization haven't engagement or looking the our been into early the We at that the phase. built nothing very revenue today. it, We're at looking on. We're in statistics. has model level of all but bookings We're around matter

seamless, that's -- getting bundling value Yes. being of created in you connected. think about experience a is a that's And might way lot Airo because I for think the they're customers it, bundled

that there's that from renewals, of time talked some bought have happen the opportunity out also that a the Premium like we Pay a opportunity, domain. And customer be Airo would but and Walls, would the monetization at monetization year about

on just, improve super that excited Pro, mind actionable advice features the feature personally is which Jian, is how Airo I'm to give an well. On in where Airo your Airo that Pros and So website. for very Insights, the as about keep website that question capability and to existing assess

the products, ground it WordPress to fantastic of a was have it's day from be first that to for that, customers, the We is built Pros. too. going Airo Its with able for product. is from up, Again, engagement all But Airo implementation yet. work But have and we version that's number at to product still first great Like well. phase, the a a this as Pros year, with monetization added methods not it. we we for get test from that and Insights as of on discovery engagement monetized expect

quick seeing. follow-up a just you're Wonderful. And on then that the GPV Great. strengths

customer? can a bit, just managed you it coming the that parse per more it's marketing on WordPress little from If out attached customer And more is side. growing WordPress GPV the or Is more growing? it

as segments just the can you separately well. also of growth talk X these If about

the on the in And full really of target hardware that is it. different we The the the Jian. solution customers ways just to We is of we're a And trying on own has system converting have. broader and driver that for with that top piece bundle omni-commerce do sort solution, than to the our hardware. to our applications the customers lot Thanks, it. of the GPV what online have to We growth stack from the of actually this right? taking base. we're solution biggest the in operating a

base the actually of want in-store with And And customers. a that's driver just of it We of that's don't want start. driver great So often, sort it's the all for And customer. biggest very and that's business. have customer the our GPV. with sale online their a with of GPV, to We the piece And access doing online. the a hardware. a what be be of to to right? We starts with to of want fantastic a we're

in always growth converting existing in of customer biggest commerce we're front the is like we've for opportunity us seeing today. our that's the the And And where base. said, GPV

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

seeing sort more ARPU, better Airo. understand be changing on ask I to Airo and demand. benefit with the We're wanted might any wanted clearly but to again attach I how of top-of-funnel

You last noted years? customer implication on after stronger adds. the gross customer some growth couple muted some of And the potential over second, then improving what growth is

funnel, just products of market a capabilities, about a the but brand that can manner. GoDaddy the provider those set bring the changing capabilities we're excited able aero is of magical being expansive this to and almost On you the top intuitive provider seamless, not Yes. of in

has, platform not something customers, is dive just not taking our a an for GoDaddy into into So our looking at it's ways Airo perception. experience and customer to marketing that really we're just

things to customer customer about about lot and is a thinks GoDaddy the think GoDaddy thinks help if Airo together. and going the about think of domains And about

So if that of funnel is sense, really, of really with Airo that into channel marketing bit for is have our every successful. really every plan the Airo, taking that largest Elizabeth, that making piece makes of the into and shifting the top we the go-to-market

a term terms we yes, and the medium point of GoDaddy. long customer that growth, see of growing absolutely customer as sort or in We see key growth. base of In

is have We globally fantastic, brand awareness the it's unparalleled. that like

to We them. have amazing bring products to

customers, customers So P&L to add that more of there to GoDaddy to a reach are have lot year. reach and firepower believe those able right? plenty for We be absolutely our million $XX we every in to

intent scenarios say of customers always but we've very, lap, QX and the these with on higher of to will we a and And peaking divestitures with. we're continue attracting abate in time. in that And I as bundles that's more the lot be are about. happy that as very the these talked while migrations to A over by product starting are is second some they're Yes. engaging that of to impacted attaching

what call with any the we're I back customers there intent. calorie low end, the losing On that weren't really in

we're the abate we'll everybody basis. start to time, on posting then with keep over model. quarterly a So should happy It and

margin some makes There's and shift side the specific equation. also ANC cost as And of to revenue kind lot That then actions leverage guys the on the a sense. to a expenses. kind you manage follow-up mix growth Great. reaccelerates are also of taking of of

any have margin just to way guys So if stack wondering like the rank there's as the in that it outlook? expansion some of relates these drivers you

are us. And ability big that to more say helping efficient, into probably to look markets our more say, growing profit big AMC Yes. we would locations other pools environment. would amount our type continues cost I And buckets, the now getting higher global to would big related grows, be to base we getting third, as it not driver is our a which just international analyses X what point, talent that I the, is third a the I -- at continues the then Elizabeth, be, infrastructure move have as the I X, simplification. our is of of driver the is at the to tailwind reducing in effective say, that but other access have,

outer those continue into how So our expand will are go the years. margin, we that continue we and as the X to to contributors buckets big

of Our from Trevor the next comes question Young Barclays. at line

double-digit like but up now? year It still second expectations year ATVs growth the territory. plus driving your of are aftermarket, low looks the meanwhile, there growth, compares. it of of benefit almost What's are quarter On single-digit full in on outsized easier right here XX% consecutive kind looks like that

has causing what's trying to that here? something resurgence. changed relatedly, And structurally demand understand would Just that what from slow for business, in cause if to it

these We're of be continuing benefit saw we larger lower going of that in those a Thanks, see the been [indiscernible] the good end, they we grow. short create in prior we But model in the what Trevor. view, XX% into point We're we quarter. From of the build this only I continuing say, the see come to single-digit build the were they the Again, term, the see of return in building but transaction model think the transaction what And low that in like of QX and QX, is is pick because see the to average definitely we value. into volume But at business up still volatility. growth a the we and in missing front of the seen in saw don't this did we -- benefit we're transactions right we have that we can we've steady-state value definitely have can on said, some transactions. a and would don't periods. average to with And the larger some growth. that aftermarket us.

sense. was guide? much on drag just that will sale. the And How makes be previously And of That the that [indiscernible] a contemplated follow-up hosting on a quick 'XX internet revs? in

Yes.

were for I built far year. model. say think into about it enough we we closed along. previously this to guidance way that, the it contemplated our we're and but best announced that the it, when We talking We hadn't

Okay. the sizing And drag? on anything

year the the We points and look with XXX overall, are of peaking second for year. through the abating about the basis at rest divestitures quarter it as that the in

line of from comes John question Young the Jefferies. next from Our

for Brent Young John Thill.

increase anything given is somewhat any if a a the sentiment. I productivity SMBs So power you words payments. pricing I'm could of SMDs know quarter. in a question versus anything on I -- much of don't better is you left share earlier this seems it health the that on know the with last on QX SMB of how the on macro, terms but through and and price health different last change And there's wondering was on lot then now especially struggling. pushed there point, just

really might not one push a of a and bundles These the bit. pricing not want are an differentiated. It that see. new changes. clarify the on little create and to sort John, have that's I price just It's to bundling, It's differentiated approach is pricing value-based. increase to pricing

pricing a this more the see we are to customer based We machine and us base, bundling large-scale runway and of apply data learning, we All the very we in of -- have large capabilities front some thinking. do see of on do sort that.

it sort biggest Day margin a Again, point of at bundling to and time. slide Investor it's same think in and great the best lever. I'll the not and pillar just for increase, bundle get pricing return, drivers during about both bookings the the a growth about right creating maybe and dynamic was renewal because our we the price manner so for it's growth to back it's And pricing and

context little initiative. just think that's a our of bit pricing might and bundling for about how So you

macro, They macro, of terms of we've our tend We think a In and we think them to with and think back customers. optimistic optimistic word falling. sort always with They're our have the the the I survey just we of customers see the is come best sky's to macro, bit they an think always used that's their business. We steady steadiness for more a think, about I helps positive. a And a I group. world never do the sort be never little optimism.

from of the Kuntarich question line comes next UBS. Our from Chris

first calling quarter. you saw nice Second GoDaddy's Airo? in in leverage really Maybe marketing, little We be to use were would just just bit this first Can some brand point. just the back just be unpack Great. out that of a the really around you would one Aman, of of Pay Walls. strength mean by at that overall you kind what around question the

a Just to using -- tactics? marketing the kind needing from guide thinking versus lower awareness kind Airo what's to you push be leverage continue And the on think predicated perspective? for of about more about of remainder of how -- of continuing to how or we that maybe year? should funnel And kind maybe in

Yes.

start about and treated. website a the a suddenly, about you've soon of type you've thing talking is got a by Let buy me coming The you talking Airo. logo, domain got we're name

versions X that got from. created one you You've websites can choose of

that's e-mail you. address for an created got You've been

Pay go. ready a to got Links that's You've

XX it, later. on seconds payments take can You

ability sophisticated were have friction get that of was that introduce products, actually sort improve to customer you I'm it to for a customer, for basically Wall will point at as to we of of or call You've you say, we're this to and work different Walls here, to excited of at is or at a you now, too, them, products, up these it gathering let's lots this -- cards, got test. of are want have you customer paid the want which you that to sort way data technology Pay And Airo of engagement to it customers engage for the for Like have that set Walls this pay and great better a website at Pay if we Pay dynamically point offers and have that the where want, right? And Airo already. say, looking being a breadth We're SaaS the had value different given want usage a to you but capabilities its to all if marketing and you having the capability edit right? logo love how GoDaddy it and you a and very become you this interrupt And looks start certain companies right? The have have. about in that campaigns journey certain the did is it, love that for paid it, with created capability part website that's really plan. of "Hey, us you a

terms of going market, really our back a history, whole at lot are on will have. that working? them. tell it many, that and I'd, with say -- gathering from of subscription a related we Mark sometime to, we're and to marketing, something I'm customer Pay marketing laugh of on are interrupting with of how and flow value the we're say an the very to that approach to is do our of marketing the as to I has a up going and I So think, going with looking understanding the disciplined a sign channels past spend world And I we about How marketing. internally. example, But But probably the we we're return capability Airo shared said, of to of journey, this, in see the then data, websites. the course, in us what sort like my is with how relying lot getting years, many about customer. And Wall sort looking slowly, our in and about

to whatever and want guidelines. But look our to Mark, think we can within So continue of super you discipline year, we'll save the I terms do to? spend for leverage in

the investments and the feel all this the in. to invest that. to optimize of like we in understand start understand we're Marketing us, data the monetization is And day, return. right? going to where point use can what's formula we end And that, really We thing willing the order applies when the then the we for and want at get get to best understand same we to to us we for marketing to to

our go our about across those especially to our and good ability of to feel to and all margins, board tailwind future. leverage the continue we to us we make into as in the P&L. the the obviously, decisions expand uptick the see So gives And ability that, across that

Our next question comes from the line of Naved from Khan B. Riley.

question to growth this? of to that It's it your quick driving for impressive. Is I How I like understand a AMC. much further we is just happening just want there pricing Investor you of that. the And to and at currently? commentary, pricing think booking value-based man, and it should pricing that's How about talked And bundling. So scope on outside kind kind attributed in on you the of much and pricing versus develop more the from bundling more is it pretty of And dynamic in. how that. Day, that kind things do leveraging looking that then broadly? of and

for thanks that Naved, question. Yes,

can the services bundling So that it, looking works already should and our at a has, with We price thing that bundles portfolio. and is we Because pricing we've we've you engagement go if Mark will, how where we where across we the and pricing what of the actually taken then talked value areas create to value-based initiatives invested for that what little take about hand. really want that. approach bit that. And for and that them -- whole that in together hand on customer in it's is the sort what customer, they

as of Investor that that see we we X customers approach pricing huge years after that because Day, we we goodness that base, thinking. have do for can million of type opportunity at going we're at here, us said do of we about with sitting a with this So and believe least initiative. the modeling XX sort And excited

No, the of get It quick assume kind better changed? the what on seems happen. I a done ultimately kind It sales that's it of like where Or a both of follow-up or to wanted just the leveraging guided I renewal CapEx. you it beginning it should you're Maybe has at which on. wasn't to get handle stays discussed, year? just

It Our Obviously, quarter-to-quarter. fluctuate guide changed. spend full could overall year-over-year. our from hasn't we're year reducing

the next from Gogolev question from Alexei comes of JPMorgan. Our line

And of Mark, grow some insight is wondering us I [indiscernible] year? if expectation rest was how the and year? was doing you what the your could this ARR for give

rate Yes. Alexei Without is our remember, getting into specifics lagging ARR, lagging the it growth indicators. of around our of just

revenue formula, the in trails only also not trail in -- trailing impacts the bookings we'll that it to revenue, the it. So but XX months to generally, revenue

our continue see expect ARPU lag of to in It -- will look we the is Well, continue a again, sign ARR, to over increase grow. base continues as to time. On it we healthy growth throughout to we that it So going a to but year, health. good growing, it's at ARPU subscription

very commerce that healthy We applications as well core our steady platform. very within in our as ARR see been has continue and to

X We should points of X ahead of sorry, continue ahead -- to be bookings X be year. that points to overall subscription subscription should the to say revenue X revenue throughout

update that the it's or WordPress second any GPV about Pay was partnership. and then has there in provide Wall from so-called partnership? improvement significant you how coming And tailwind on an Okay. annualized question been also that GPV, faring Could

them excited the doing. every necessarily. The and sort with Yes. driving X a very of more GPV think a months, product there. WordPress. like And team we more they and the had about them, last we partnership selling Obviously, in lot great we have growth excited going excited offering about on with We're the they're the with but We're about isn't month. over WordPress we're place. the new is partnership

is So with at. our that's selling base. own our into But growing GPV mostly where we're our

And line Ygal on Citi our last Arounian comes of from again. question from the

how funnel spend, work comments ask they're distributor me Last minutes up bit of one-on-one a follow-up, time. to ramp for open with they're more for in more letting [indiscernible] going to kind their week, how to a particular. try Thanks of of the about in going VeriSign and little some marketing up couple your particular, to made dotcom partners a

from again lot questions, a a of point. -- and interest investors there's that So and of on been lot

So dotcom or might just ask I I -- on have it your in thought What broader from registry, seeing like what view point know of and I'd as that you what a of registrar guys in kind seeing mean you? you're and are you just the general for both exposure.

for where from a does in seeing the that more efficiency support when if that spend of marketing what on your you're more bit more? that a Just VeriSign, little up open a mean you spend And total domains? what dotcom you bit getting in mean -- little can kind business? So bit the little you're versus top funnel of disparity can more

Thanks, Ygal.

you the kind think of question. I answered

portfolio diversified We with familiar have it. of domains, You're right?

we opportunity in create We The opportunity players. then any right, XXX have compared have opportunity really to that unique other to what massive TLDs. the brand have are markets the more than awareness over to offerings domain other registrar have to [indiscernible] in globally.We different sell are you

on So everyone. great to we happy portfolio more, large work partner all do have to with We partners we always diversified if we're we a want do our domains. wants think Obviously, to love a and more.

it We over to I'll will now Aman. the back Q&A. finish turn

Thank you Bye-bye. see us. We'll for joining quarter. every you