GoDaddy (GDDY) 30 Oct 242024 Q3 Earnings call transcript

Welcome to GoDaddy's Third Quarter 2024 Earnings Call. Thank you for joining us. I'm Christie Masoner, VP 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. be posted we financial financial equivalents in measures found the why of and may those strategies earnings today's we'll related of to financial and [indiscernible] our relations in non-GAAP to objectives noted. The first forward-looking with operations. include investor our year-over-year our comparisons to presentation future today discussion release, use as statements investors.godaddy.net or respect unless represent measures non-GAAP matters reconciliations discussing such as be site A at our or to their results GAAP and These our that forward-looking statements are subject filings. SEC discussed to in risks detail uncertainties in are periodic Actual that as and XXXX, to today, those because from we to October the of forward-looking except by information law, extent statements these make obligation results of on are future no differ new statements assumptions we or statements. Any this materially update on undertake contained XX, in may required call forward-looking events. based pleased to With introduce that, I'm Aman.

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

relentlessly profitable is us our it This better flow cash north term. the value of long retention. and behind attach on shareholder propelling value strategy Our through creating to conversion, force driving free maximizing is growth and focused model, our customer transforming star towards over the

XXX free meaningful and in execution expanded up strategy, application over basis both delivering were and growth operational flow year-over-year, this We our of EBITDA strong XX% QX results drove effective points. margin bookings demonstrate Our innovation and increasing by commerce efficiency. normalized and cash XX%

commerce GoDaddy Pricing cost bundling, driving continues on the to solid within we our December. Pricing results all investor bundling our of continues optimization teams. forward seamless results live dinner are schedule, enthusiasm deliver an And success to share our to vibrate experience, to in to and quarter. and growth remaining key excited the growth for and The efforts today, looking updates a more early margin application this in along mentioned. are strong contributor ahead Airo with driving are commerce bookings and with update productivity-focused demos initiatives in XXXX. at We XX%

have we greater vast initiative a and capabilities with and value that allowing machine customers led as software journey multiyear the to view our delivered. bundling before, pricing us to As way data solutions a bundle value the us we offers that said platforms, pricing aligned learning in to

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and we continue expectations experience the exceeded Our remove as purchase, seamless friction onboarding pads. to improve and renewal in

and manage Given our results. features, as yield we can and domains WordPress, attached new their the well scale, even modest for added making meaningful renewal customers expanded to enhancements easier In improvements all security in build as it AI-powered to to platform conversion websites. Managed

their better hosted. marketing are businesses their the own and with of intuitive we one GoDaddy to their giving Additionally, regardless customers in base. engage of where an acquire, grow market and to recent empower customer digital website all launch help like product the suite, is these our customers Features expand

being point last quarter, introducing continue fully trends for offering plus [ positive enhance to AI-powered commerce operations by new ] Plus SaaS that out. plans sale new we our our and initiative, adoption had simplify launched The we of invoicing X For merchants. features since rolled have

team against the attached set is them. aggressive targets, have making progress We and

better common AI-powered million conversational instant entered containment markets self-service XX contact with customers in of our intent to rates, with for issues. our use access a we XX in minutes providing interactions initiative, within generative over ] care solutions Finally, cost representing We technology new that savings improvement international our optimization bot satisfaction. this [ double-digit of to without led found sacrificing customer

excited platform our aspire interaction. power our the combined to every proof year to bot to and leverage to data, provide expect to compelling drive our capabilities. a across machine delivering progress conversational along point while to the AI is in experimentation, multiple Airo that large-scale a of It experience these on magical are with infrastructure, We the we better And software a is with globally. and successfully care journey leverage to and GABI, provide continue experience starting learning customers we unleash

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teams them have of a even over discovered was Airo, the with for experience. it moving initial Airo customers X fast Our are over celebrating of half before X-year countries engaging XXX anniversary pace Nearly globally. at testing customer million the the with in available

quickly a XX% are users with with websites for are engaged driving monetization. page, website. see we just the one marketing we engaged Airo in Airo We proof can that over largest website originating Airo the paid With funnel coming with page plus customizable engage in building. a discovery is are in are points the websites published becoming months of experience. and with many pleased soon and the subscriptions the clearly Over marketing largest exciting half engagement winner momentum QX data, of is as plus which of Customers

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next in So with few far, weeks, that website And we starts the a customer Airo purchase. with start out the rolling purchase. exposed will a to start to customers Airo domain

websites website tools an with for Just scaling attached Airo the look highest product Airo to power attach our and growth. of a investor and enabled products maintaining harnessing we X. to experience. This WordPress Airo, of it upcoming we for the AI-powered offerings We during help underscores expect starts We tiers like rapidly have drive avenues our as to new well December word with transform as on forward imagery experience experience our customer customer exciting, through products customers press domains interface. sites, advanced simplified to on commitment when will as intuitive event and to dinner grow premium you by building to showcase with other drive paid their marketing plan the businesses. Equally our conversational become logos continues every reimagines showing Airo to as more which highlight

will recommendations provide demo our to click. optimizer We tool, also performance can actionable with a just site website which any improve and inspect

products these and continued be magical they to will seamless While experiences for learning AI deliver themselves represent our customers. leveraging unique our focus new, our scale on machine data brand and and

focused GoDaddy remains are here's future. In Mark. at success give and With look execution our The in growth the We relentless growth drive create propel profitable thrive. enduring shareholder to initiatives. commitment our dedicated that, thrilled growth remain delighted to I we with will key speed and am you a the team to customers help of our executing value. our on steadfastly that these closing, first and innovations

results, some delivered recent demonstrating We strategy Investor Aman. disciplined execution shared Thanks, Day. we our at the QX of our

increasing results. In flow free our Our lifetime retention financial as $XXX to margin attach to XX% conversion, growing XX% focus is on customer double-digit cash technology in impressive growth, and expansion delivering increasing building North seamless as made demonstrated we progress our developing sustained quarter, normalized XX%. and the We through value drove that toward revenue well drives A&C Star, EBITDA third million.

continued diluted million. share disciplined reducing which execute billion, we allocation capital to revenue addition, constant reported $X.XX basis. $XXX to focused strategy, up shares and In X% grew fully a outstanding buybacks, our Total on our currency on to

For XX% high growth gross about proprietary lower segment to segment, XX% solutions. A&C and by performance performance was our $XXX leverage in line gains offerings spoke commerce A&C and initiatives A&C gross in boosted The strong to drove our expenses. revenue improved offset on third-party the XX% the EBITDA our guided growth of margin in range earlier. for the EBITDA bookings strong of Aman also million, with our by strength on the profiles significant and across segment of high-margin growth operating partially margin margin solutions we all

talent Our proactive the effort driving behind to and our strength. main this recruit infrastructure factors simplify global were

reflected X% $X.X & in on segment of platform Applications trailing for the for margin ARPU for range. Performance revenue this EBITDA XX% $XXX Segment million to $X.X line primary to ARR addition, grew the million. growth billion. core platform migrations. in end-of-life partially and revenue for core We X%, count platform $XX.X guided and domains and to a offset basis, grew XX% bookings quarter our our customer ARR divestitures X% in grew hosting to by to of our declined strength Commerce our $XXX representing with slightly core In while delivered grew billion. XX-month segment

over efforts and remains customer or XX% With XXXX. paid retention with Currently, XX% consolidated to the to have migration behind rate our us, and previously X our more mentioned expect return customer at products divestiture in we of customers us. growth

coupled margin of are This of above, million to our EBITDA leverage recruitment XX%, The third restructuring, to expanded over discipline quarter, accomplishments. drove front-loaded an growing and global drove are basis in and P&L. simplification operational talent benefits the points. XX% evident, normalized the our noted with XXXX these was we tailwind driven profitability. gross with by $XXX We expansion pleased in margin and that in and infrastructure XXX up Moving delivering

track approximately Investor look XX% of forward, XXXX. on As by targets our we to Day deliver remain we

the Xx website flow the our cash to X Capital revenue. Unlevered cash to capture points showcase flow marketing delivered $XXX $XXX quarter we XX, bookings currency constant shares the October our on drove XX% expenditures X.X we Reminder, targeted remaining. We support of year-to-date, were period. representing since million. reduction have X-year under bookings quarter grew growth on in Through liquidity XXXX, our $XXX grew XX% our X million basis. Pivoting ahead to total enabled to Additionally, and for we approximately quarter of upcoming launch our repurchased X% cash reduction billion, the in balance was subscription of $X.X shares because finished demand. On we a Airo points $X.X current with billion QX divestitures. investment during we authorization, in outlook. XX%. center and $XXX for cash and of outstanding Net $X.X to fully ahead top-rated broader totaling of represents diluted million million primarily $X.X a of million remain grew third we builder end, a We billion of repurchased At billion. Subscription reported sheet, outstanding. On a shares and debt XX-month shares a our as the the our XX% quarters, free million, basis. XX% trailing million. collected net data AI XXX bookings, million gross down XX.X in free representing to expect solutions January $XXX customer both look increase leverage to and

raising the X% at $X.XXX are our year revenue We to growth billion billion, guide to $X.XXX approximately range. the midpoint representing of full of

and the revenue billion, core the for billion Commerce, are we the of revenue and platform, revenue & year. full full between quarter mid-teens $X.XXX For quarter, expect in growth fourth representing at low growth we growth also targeting fourth single-digit we In midpoint. In year. expect approximately the QX Applications the and X% $X.XXX

driving demonstrates, expect operational to margin. course make in margins. As on record our expanding operational remain our marketing the and committed EBITDA in to we additional discipline deliver normalized to further track the are investment maintaining our a model XX% leverage we quarter, we fourth Including

Given full conversion plus full flow our billion free raising also flow [indiscernible] year. plus keeping to are the free ratio, are year X:X a to EBITDA year-to-date to normalized target $X.XXX expectation also performance, we to raising and $X.XXX normalized our in unlevered XX%, for EBITDA our billion we flow cash cash cash free

returns-based according and to all allocation capital return rigorous disciplined for and evaluate approach framework. remains our will opportunities unchanged, Our we shareholder

Star. Investor strategy our deliver North executing expanded and We outlined profitability are durable both path committed growth at the our Day, our we to as we drive top to line toward

robust for shareholders. enduring to and sheet allocation Our underpin generation, value ability our strong and thesis our capital framework cash power our create balance investment

X% of We are target in pleased supported Day XX% growth free $X.X normalized and Investor EBITDA generation. our to our cumulative flow margin by X% plus billion with to XXXX. of our cash towards revenue progress by annual expansion

the Tempe, Masoner, December our Lastly, Head over open Arizona call Relations, the headquarters. new now President investor we for our and of call look welcoming to in I forward will your Christie you questions. Investor to turn to dinner Vice to annual on X our

Instructions]. [Operator Mark. Thanks,

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

to and wanted applications ask the about I segment. X Commerce questions

growth. don't the thoughts some Yes, give in the Applications how you third realize fourth puts the should year. And for is and we The we metric, first bookings if bookings of track one straight go year quarter wondering & Commerce, that you growth I just be is on quarter on guide rest and us now this bookings of but or XX% the your that could through to any of takes could considering of then second, growth this higher. as

back But type I'll the higher talked that go of and there. And the low between bookings the thinking for great of and be that seen and topics, you it could grower. of get some on this the that so you just mid-teens to being It leave segment and revenue that conversion thoughts in that puts date, momentum to growth there. given influence us And segment I'm any relationship about wondering if should level the to Day, remind specifically, would the growth if those about revenue of I metric for be to Investor near forward segment? we you've takes a term a

acceleration a us And yes, can things, One, bookings couple a for Vik. tailwind Thanks, in right? of be revenue.

timing especially when is to on Things have that with between the we a group. really difference statement. within with the So is multiple product that our different the at depending mix the looking timing A&C, factual -- X consider we're

example, transactional For commerce. and

We have terms. monthly

terms. We annual have

excited But to terms. get overall to when A&C. it that bookings us is. in will year, multiyear comfortable being it mix be for more a X are we the pushed think about we're at revenue our call we'll bit outpace on being little the over have really to a by about Do And a Obviously, on momentum. earnings with you we help have a spectrum really the QX the what of what X% look points We lot XXXX. the tailwind products -- growth general. We're the broad the yes, talk about [indiscernible] obviously do We talked is X will years. X% by and revenue for sold,

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

Great.

and pricing forward. just bundling First, on going the

Should second tough helpful. anything flattish Can of line term digits versus that you near was such you think a color the I consistent on but in that with domains? And I to would that's assume that, comments aftermarket a of opportunity bit be in made we transactional it's an expand items upon and And core earlier going there? nature, just bit? growth slowed then very some little aftermarket know question, expectations? quite platform. kind in XQ, happen it's of Was bigger going year. your the as double in what's there predict, kind year-on-year so to that on onetime in any

Trevor. the can take pricing approach. I online in Thanks,

to balance rates. of right, the attrition us. And with let's want much of as bundling the about, high customer the the in can that is pricing balance. is company, provide at then value. of can retention curve. curve the opportunity experiment growth then great can and at or maintaining price as way this of say, about cohorts customers that's along the do what we customers, to is we and elasticity for price price finding that we've different that right find retention cohorts customers we drive helps a value the Right points with we sort finding we right our of front where As us right And talked do customers, while And we pricing

for machine there, So bundling, of that cohorts our suite advantages direct that and pricing scale way can using the our using data working of product suite. of approach and that learning, across and experimentation, competitive using product within we our

talking what we customers about -- other this really have that is we're applying we really approach will be of that cohorts what So I'm identified here to.

is are of of take both that to products going core and going bundling platform, across the to sit some in the which segments. of now And those benefit pricing the sort have

aftermarket, Trevor yes. And on

over be a can always will from Just about it's a it volatility talk dollar. think a volatile quarter-to-quarter. time, And low reminder, we there business. be single-digit We

out slightly. pricing. And control don't and again, This to aftermarket. quarter, on jewel [ it the the green was of all call ] down continue. pressure in to pricing Nothing the the seller We saw to lower some demand itself. level, valuations seem ] at a buyer [ It's we on of

and single-digit still little thesis it and bit low again, quarter-to-quarter grower out. a in we'll believe see will it the variability time, over call holds. be we'll a of just So We

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

Perfect. meant divestitures? I that in just of terms kind of just to of Was in on as we XXXX. pace of investments should opportunity? statement the as an sort resuming Or in to that attractive pursue made assume customer acquisition you earlier generally a anniversary you wanted heavier more 'XX touch a just a growth

Yes.

part So that about we've life we to just this And integrations was throughout And it call of the as of away. we want to we that will Aman, out will is, if the previously. customer lapping the and the are lap -- headwind net you divestitures, talked end start talked it yes, to on comment first go about. year, marketing, them what have the add

a given marketing, we customers that. opportunity almost offers viral too. It our rolled an we're took to there's have expect got with in the a some of we product there out had said, And that we've always also by that Yes. about right very sort product lapse that spend the Ken, just for is We've normalization some super together Airo, spend. But we for we of the taken. actions of us get brought good like to portfolio have, the there, and magical we've for and as our an and do customers. have going out Mark Look, play divestitures the in excited, now, product to more marketing result offering on we're actions guardrails of up that includes we experience

at follow-up then A&C pace level? to accelerated question on Got could something we ARR a quick continue considering tougher maybe similar And a Vikram. bookings the see XX% to on it. a comp. Is that that A&C of

Yes.

get as to obviously, of the into So A&C will strength to. compare into we harder and XXXX, go QX

a we overall get a the the basis, obviously, next on percentage harder continue. on momentum So we will percentage like year. comps go that as But into little

And just as that to QX, and comps sort have of see QX for comparatives confirm, happens. I the and can from up of year think in you you sort QX last the step

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

help around what of better. we're little early financial that. the presumably some with in to the if starting of some of with in moving put website progressing that Great to these subscriptions piece. But a starting kind see then That the and marketing maybe are -- seeing. was expectations quarter, results, it that's spot that of the versus about engagement us that of understand talked into and Airo connecting Airo? the and testing to things XX% real paywalls I how dots are maybe engagement of see start Last to -- the a you out piece want yes. called with some just points kind originating starting And what's point around bit the Aman means the you domain see around

Yes. Thanks, Ygal.

in over And up. products. And and click front to those them, that possible discovery to engagement something a along page really a with up line is to The bit, piece we remember if, plus a need many say, a discover call getting engage of them -- to goes customer traction to wanted we're did quarter was those you getting we set we discovery last getting engagement, coming that good the them to where them. with in and to it subscription seeing wanted and is buy is that available with and customize cards, or as Airo just about that progress X products got paywalls And would as soon on engagement. put you'll some of on or engage customers a to on monetization. example, paywall marketing. appear them, And getting Airo websites the of So able if of for GoDaddy and Discovery they what a has breadth do and little more about started time customers

today. And that there, that X down possible for attach. is gotten that would And pay a it But that make bought and that that to X to we our today, what bigger becoming get connected about we months line, ability offers products. and anyway, that, in would Airo have for what is is wall have customer the Airo is it decision. actually talked months, XX% have the bigger to paywall Now that on-ramp is X customer website is right the us the I about And Airo.

we list have today, that, have engage that is the They We with just of sell those with those in see in that don't becomes that to a [indiscernible] subsequent doing have Airo do what offerings, do opportunity we're they the well Yes, because other have a need But customers customer up for is opens which they for see see behavior Airo to we those really and is plus paywalls the in that we on-ramp, definitely other discover them. follow going offerings. customers, have. It's and monetization they front a the to a offerings bigger don't but an marketing it. don't of products that happy needs And paywalls subscription. monetization the future as websites happens, course, coming

payroll have Airo. So first it's and -- story, logos. big in we a story But course, is new an very story. work of it's, good for one a the website similar It's only this

with the well. with of others at couple similar that some [ have to as Airo We we're in and failings we come a work These investor images. the have demo happening ] dinner, work are going things

if understanding And Great. think, suite. on initiatives. more I'm productivity focused majority I on one the Still, still maybe correctly, the bundling Okay.

You Maybe specific or on with could in update products commerce productivity? coming expect to we the X? us within you few called a that you come where are in And could the out see past quarters. quarter out

Yes.

have Our across customer ability generate and the best bundling, folks for working creating here And test and best pricing well. then results to result and various the they're cohorts able cohorts really it can value customer fastest. what the being as that the we on looking value the are where means to monetize that

I So customers. have that terms of products when base look much across products, other [indiscernible] are larger of in to we our the

did So we productivity. but you the think going offer of that those we'll opportunities just we are to keep likely informed like some better with

in we that be next we we'll next of we're today shared A&C for is as guide ourselves I the that that's or of sort think we over now you and go few to this we because a to going know remember in that going to large return we last said, we're you're we products. the thinking the going see is chunk year, one of quarters, did better that things cohorts what, multiple return. But on we where zone have see testing well. customer this in going then from year the And And Similarly, year opportunity. stronger will on productivity see where port]. across apply seeing [ as you our that because come plan you

next did likely going bit year. than So different see this behavior into you you'll year little a

line from comes the Arjun from question of next William Bhatia Our Blair.

for on Bhatia. Arjun I'm Willow

stability as on seeing So impact you to year, base. to And just also in on you questions. seeing then ask comment any please? wanted changes? macro your you're any if called Can new you're net out well, Last comment

about likes But macro, on the high we're say what sort jump close dashboard, keeping things, [ of Mark a and track U.S. our proud Overall, think is we off. of the ] I would talk you and will and specially I in generally, we We're to election before think but sure look customer the some about eye with our always coming speaking, in attention see good, at broadly talked when metrics on I'm base I we've that. about Yes. that. we my if absolutely

Well, gross when door, good to we look the at adds. we traffic see in continue coming

by we traffic continue be where in of different coming be do And some more all geographic, improved segments. of those pockets made We can improved applying up pockets experience sort In how weakness, site. seamless that we've see and the to the how within customer pricing, of good pockets conversion, initiative. to than see that's our sort mechanics those can we've sort we're pockets

feel XX%. than more speaking, higher continue to there get those are good rate at overcome. are broadly few, I So adds we a and for if traffic, our customers gross But continue to get to retention good continue maintain

top is of funnel, are faster we around Yes. rate us customers overall ago. look you a our at you years being seeing strong out intent to the when our you customers did And virals sizes at just what we from We when than customers average ARPU it? the and with beginning. how in Well, add, are take see the they decisions we made the increasing, coming seeing divestitures, with when order attaching driven our take is is by out and ARPU initiate higher they at the

So when the turn funnel. behavior off strong outs the the with you front of and of really peel out very take through ins seeing customers, at intent virals, we're the the the the divestitures,

of funnel but valuations we've lot, behavior strong. the the we a always is things about Now are overall the subject and talked and attachment that aftermarket, the in like

you. one Got if helpful. the I more And growth. That's may. follow-up, Can you bookings comment on

like just It like better. A&C, continuing decelerated and understand it for it strength So to pricing of quarter-to-quarter. tier is seems customer I looks it that like can take good acceleration

let So I that, heard -- if you out. if had know I'll part And deceleration cutting and can part address that. you me to was maybe the it another there,

the it comparison it's same. on and went We in the most was in The It self of QX is So QX tougher momentum comps. from the deceleration, to comps. difficult 'XX in just 'XX. comparison

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

I wanted pricing almost kind And this and expanding in guys to when the there of into big think saw the and on core QX. growth A&C strategy back platform we segment, circle with improvement you the doubled. about bundling a

should we for what have how range? to anything there core Is in little about where we consider X% smaller larger So X% think been benefit should more about with a bookings the segment or productivity? the in the being the than unfolding the saw muted you bit opportunity core

it next it. the But sort Elizabeth. the same. to is data, way Yes, way too the there. the we're we It's we're early approach sort we're quarter's cohorting of our we numbers the it. on customers, putting will testing call the using speaking, where and more creating way in Generally go little talk about from curve, it, a elasticity on the price to way decide of we're the The way definitely

but that to about data is going so today. plan getting into have little it's on of or methodology that it likely that of to All that but similar, run to us more customer for it in to quarter that take a cohort sort takes is do really it executing of we see in what What far be. few QX, us we weeks it really bit going can more ready will where than a we talk are we with rate start a see get

we we've for XXXX earnings QX. about Yes. steps it, what then to of quarter And We're and put guidance get we'll call. the initial as there talking Elizabeth, when the about nothing change fourth talk to out

as on I side. margin wanted to touch the follow-up, Understood. a And then

XX% of XX% to prepared what the support broader the just remarks Is QX? contraction the there in factor then QX main call referenced next of out? launch to What more marketing the and Is the of are You Airo. increased initiatives driving some around the are in ARL? that key from else takes that offset up some puts in And some increasing broadly year? of margin into marketing anything levers spend can

aftermarket QX. -- we saw are a Generally, margin about for Elizabeth. XXX we XX%, QX, our was We basis a Thanks, down product couple take, margins comments. mix points around example, within high-level mix. favorable give from In we think and us. benefited or to lower X%, going of Yes. business And a saw a just for favorable gross that's be

of proprietary higher-margin As a better mix. be our we see part software the

lean margins strength, having transactional lower. high towards we'll the that we see side. If Our will towards see

how there margin. front-loaded And had of simplification front-end and on gross a product timing. talked then timing in what talked marketing to determine from the loaded expenses on QX, like that XX% timing just again, about, seen the we were hitting. the expenses pick continue just start up efforts be alluded more benefits we'll had, impact mix So of is there some in but and we some see to restructuring into those. we'll or for QX. Those hit we to rest the the see was they're target we the will that little little and of We We about recruitment will had some that was global

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

of comments framework. that had Yes. realizing so question. of the you you discover, this the to kind Airo much monetize for Thank to back wanted some engage, I go

think it up discovery Xx of was I the $X to quarter-over-quarter maybe million. element

So in is asked is Elizabeth type about of really be about be could that when key of the really goal, marketing up should And there -- reach be but about, just ramping on thinking spend think pretty metric it that we that year? the base? curious it terms of is the we considering Just in a should not could specific how that. we maybe some half it sizable your that

customers, that very, we on. It's the important on one We engage want data will just to up Josh. XX existing our feel know sort as we one of we because are much engaged than in the enter users attach customers with if and really we a that more our than because on our this of in conversion, it engagement can't products. spend say, monetization fall focused customers non-engaged customers much, for own for manner they as really to is from definitely want and new optimizing discovery both marketing, that are want years, a percentage go metric Thanks, data drop definitely and we hey, very, downs. engagement metric other better we have had of keep the but But companies do very of don't confident because is the the that discovery and very an for you matter metric in we healthy favorable engaged the breadth do seeing right? Metrics data Discovery non-engaged. without which and healthy, is much like the products, phase

the So are future. value the sure That's that's that if makes you that will, going our create more efforts to quality and in that valuable metric. the is are thing

happy I'm coming our and And teams paywall for on Day the large paths build doing Airo website even planning say, engagement discovery for of mode purposefully engagement. sort about and of sort overall, monetization While earlier of that I multiple and good year, put well us. and you discovery paywalls we'll plan the we opportunities mode the X-year believe, being Investor this of doing great years a are because other would large the wanted in and the come. to outside monetization show Airo, the very soon generate at X-year of to and very Because will, we for we very recurrence stuff.

to where a helpful. also with could can bots, a that. is larger I number improvements, benefits to assume at think wanted something and point, then maybe that clarify some respect the I stat how similar follow that And be on you I to which payment double-digit And Just about we wanted think curious time P&L? could see around much deflection could I head. GenAI over with up rate Super rate. to these this

answer question a containment rate being able a question been in and to sessions Yes. really the to agent. resolved satisfactory human customer like that bot the conversational deflection and where was forwarded It in manner, chat of asked the to the is a a sort points rate. customer's

it's at They're of and GABI, provide percentage issue or or off which a about to new this, years. It's our we a around double-digit great technologies. our are start in we want the often. a see these to I've of great this call momentum lower that a first is in look, part, sort But we relatively seeing able quality those So of care, over [indiscernible] the to And talked cost. experience step. X better next great resolve this increase our board course, the in customer ethos guide whether sort X to being

successful, secret to provide is care and we're and that that doing of while And that makes is will one leverage, we a our of of a that as retaining continue customers ways line care better better will expectation our continue and more more to care. So is item the customers. our better for guides That have company. by the in our makes we sauce successful some having technology that a experience

Gogolev Smith line comes of at Ella next Our question for Alexi from on JPMorgan. the

So first, have question you. for yet on Airo another I

clearly is might [ bookings. new you ambitions a when monetize to it's powerful all for Airo and with ] to How clearly Aman, gram your So driving customers are products? balancing the And monetization? open that

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end look shed saw and around That the for sense. program. thinking you on follow-up, at makes -- a strategic some how the of program that lot you and And the light we reseller as of day economics my a that the Can like? news will launched

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given and and going program leave into and the to customers exposing what our in can up let's do can do the you folks you going partner show our with in perform out or to API will power capable of to like very, our give Google. But [indiscernible] But build the building company only of a natively to systems. an those as are that And expanded to Airo it's the and to very into those in not sort discovery that some have be mix, to well very APIs. we're Airo is expand partner is bring can capabilities, coming you? partners sort you're able the able product engagement a we capabilities best beyond where APIs through directly, looking APIs marketing, our do or is And it things set at we say, what experiences. other see that tool marketing, way If advantage that extension is we're for of to the of trying exposing our put expanded right? So offering website given natural we're reseller way just but how as work

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

the how has initial launch question the Any normalized Obviously, let's been expanding behavior attach? And response that's or Airo what's different difference is wondering just is margin. on your around been U.S. as This countries, been if in change Two the you within still talk Brent the available about And say, questions. expected. EBITDA John 'XX. One, is in versus, goal XX% second then than of in sort -- the made over could Thill. XXX for the you faster

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take first can can and one, Yes. Maybe you the one. second take I Mark, the

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of the a especially infrastructure around on this. big our just part [indiscernible] I'll acceleration being in the talked the of X XXXX. XX% about We've -- to about accomplishments, And really the picture. EBITDA, on the the talked talked to the of front-loaded about pools. normalized simplifications. some we've of the a are happy global tailwind elements talent get that We've us talked We're then A&C about buckets

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customer the ability We see and it. accelerate behaviors We Airo. see continue the the to around to engagements

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

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of that's it. websites run over give you on of content management tremendous on the X of on immune terms WordPress about to story. There's we contributions. that the X In it. good data how system the XX% aware, top largest broader everyone in question as or part contributor WordPress, calculate is I a credit world, where the right, top as are to success depending public of WordPress you bunch And

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remarks. turn to the Aman for over now closing I'll call

a and and everyone hard next Just mention. Thank worked quarters you another how you. years. quick looking to great quarter, Thank to I the few for GoDaddy forward employees appreciate all and has