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Earnings Call: Q2 2021

Aug 4, 2021

Speaker 1

And reconciliations of our non GAAP financial measures to their GAAP equivalents may be found in the presentation posted to our Investor Relations site at investors. Godaddy.net or on our Form 8 ks filed with the SEC with today's earnings release. The matters we'll be discussing today include forward looking statements, which include those related to our future financial results, strategies and objectives with respect to future operations, new product introductions and innovations, partner integrations, our ability to integrate acquisitions and achieve desired synergies and the impact of the COVID-nineteen pandemic on our business. Site. These forward looking statements are subject to risks and uncertainties that are discussed in detail in our documents filed with the SEC.

Actual results may differ materially from those contained in the forward looking statements. Any forward looking statements that we make on this call are based on assumptions as of today, August 4, 2021, and we undertake no obligation to update these statements as a result of new information or future events unless required by law. With that, here's Aman.

Speaker 2

Thank you, Mark, and thank you all for joining us today. At GoDaddy, our mission is about making opportunity inclusive for all. We are committed to making everyday entrepreneurs successful. Website. Through bold innovation and disciplined execution, we will succeed in our mission.

More than 20,000,000 customers website. Rely on GoDaddy's seamless and intuitive technology, highly performant products and world class customer care to help them grow their business online and offline. As I look back at the last quarter website. And the last year, I am most proud of the acceleration in innovation at the company, even in the face of a pandemic. Our teams have done a fantastic job delivering new functionality for our customers and every quarter we are delivering more.

Website. Today, I will highlight some of those key product launches driven by the increasing velocity of experimentation website. In every part of our business, I have never been more confident in our ability to deliver value to our customers website. The vaccines had provided a new normal, website. But now we find the world challenged by the Delta variant.

We're staying vigilant regarding any short term impacts website. From the difficulties our customers continue to face coming out of the pandemic, as I look at the rest of the year and given our history website. Of providing prudent guidance to our shareholders, I am confident that following a strong first half, We remain on track to achieve our full year financial targets. Our core focus is to drive value website. The long term secular tailwinds in our industry website.

Continue to play to our strengths. As more people and businesses seek to sell their products and services online website. They need intuitive solutions and a trusted partner that can help guide them to growth. Website. Our priorities are aligned with our customers and they remain clear.

1st, driving commerce through presence website. 2nd, GoDaddy Pros and 3rd, Innovation in Domains. Everyday entrepreneurs look to GoDaddy website for help with their number one priority to reach more of their customers and grow their business. It is also our number one priority and our investments reflect that. True to our promise, we have moved quickly this year With the launch of GoDaddy Payments already available to all websites plus marketing customers and managed WordPress customers In the U.

S, our ability to integrate point and launch payments quickly is a proof point of our platform based approach website. We are dedicated to creating a seamless and intuitive experience website. Our customers built on a common platform that increases our agility and speed to market. Website. As further proof, we're already looking beyond websites plus marketing and managed WordPress.

Website. We are launching GoDaddy PayLink's and virtual terminal. With PayLink's GoDaddy customers will finally be able to say goodbye website. PayLynx enables customers to take payments from anyone in the U. S.

Through a secure link. And with the virtual terminal, they can accept payments through Ios and Android on their phone or tablet without a card reader, ideal for farmers markets, craft fairs and other remote sales. And we have much more coming. We are on track to launch GoDaddy's omni commerce solution by the end of the year, empowering our customers to sell everywhere in their physical store, on their online store and across major platforms. And we have deepened our partnerships With the major platforms, especially with Google and Facebook, GoDaddy customers can now display their product inventory directly within Google Search, Shopping, Image Search and YouTube for free.

They can also create website. Listings and manage their Google Smart Ad campaigns directly within their GoDaddy websites plus marketing dashboard. Website. Customers can also manage their Facebook and Instagram ad campaigns from the same dashboard. Website.

Websites plus marketing continues to launch new capabilities, including functionality for job listings critical in the current environment, website. A robust FAQ widget and enhanced e mail composer and much more. We have also completed the integration of OVER, website. Rebranding it as GoDaddy Studios. We've expanded the functionality as well and now GoDaddy customers can seamlessly create content website.

Moving to our 2nd priority, GoDaddy Pros. We continue to focus on creating a seamless and intuitive experience with WordPress, website. While maintaining flexibility for pros, we are committed to driving real improvements in the WordPress ecosystem And are thrilled to share that one of GoDaddy's own led the release of the latest version of the Gutenberg editor for WordPress. WordPress has been the winning platform for pros for years, and we are confident that WordPress will continue to be the winning platform for years to come. Earlier this year, we created a dramatically simplified onboarding experience and we've invested to make Managed WordPress even more performant.

And we are hearing from customers that they are noticing the difference. Website. Our goal is to save time for PROs. And inside the GoDaddy Hub, we are seeing continued improvement. We are launching new capabilities in the hub on a regular basis, and we are particularly excited about introducing invoicing.

Website. With invoicing, pros can build their customers without needing a separate system. We also launched The new GoDaddy Pro brand in India this quarter, and we are starting to see early signs of traction. India represents an enormous opportunity for GoDaddy, and we're looking forward to hosting our first event for PROS in India later this year. And for our 3rd priority, we continue to see remarkable strength in domains driven by innovation in our aftermarket business as well as strong renewals and continued new registrations.

As you may recall, in Q4 last year, we introduced list for sale and multiple improvements in domain search. These innovations contributed to nearly 20% year over year revenue growth in domains through the first half of this year. Website. In Q2, we launched Buy It Now landing pages for domain investors to sell premium domains website. And customers have reacted positively to it.

One major domain investor moved Approximately 50,000 domains to GoDaddy's platform and the improvement in their sales was so immediate website that they decided to move over their entire portfolio of ccTLDs as well. The customer described the experience as an absolute website. We've also continued to enhance the experience for buyers with an improved search in our auctions experience. Website. We're thrilled with the outcomes in this space and excited about continuing to innovate.

We're also seeing good progress in scaling Our GoDaddy Registry business. With the recent acquisitions of additional top level domains or TLDs, GoDaddy Registry now manages website. More than 240 total TLDs and we continue to look for ways to out punch our weight in the registry business. I'm also super excited to share that we published GoDaddy's first environmental, social and governance or ESG report website in June. I encourage you to read our report and learn about the fantastic initiatives going on inside GoDaddy.

We look forward to setting goals and reporting on our ESG results regularly going forward. In closing, we have accelerated the pace of innovation within GoDaddy. Our strategy remains website. Centered on building incredible products and creating value for everyday entrepreneurs around the world. We are prudent stewards of capital and remain committed to delivering value to our shareholders with a number of organic and inorganic investments, website.

Especially around commerce and our upcoming omni commerce launch, we believe we are positioning GoDaddy website. Thank you, Mark.

Speaker 3

Website. Thanks, Aman. It's great to be here on my first earnings call as GoDaddy's CFO. I'm 2 months in and I can tell that there is something special about GoDaddy's website. As Man mentioned, there is an incredible opportunity ahead of this company, and I'm very excited to join at this stage of the journey.

I want to take a moment to discuss our financial results for the Q2 and then I'll provide an update on what we're seeing now and our financial outlook for Q3 and the rest of 2021. Q2 was a strong quarter and that showed up in our financial results. Total revenue came in at $931,000,000 growing over 15% year over year, which includes about a point of currency tailwind. Our international business grew 19% on a reported basis, website, approximately 3 points of currency tailwind. Business Applications was our fastest growing product line, increasing 22% year over year.

We continue to see new customer attach, strong renewals and existing customers adding additional seats of Email and Productivity Solutions. Domains grew 18% year over year. As Aman mentioned, the innovation that the teams put in place late last year is driving performance in the aftermarket, which was a large contributor to the growth we saw in the Q2. We are also seeing strong renewal rates from huge cohorts that joined last year and continued new registrations. And finally, hosting and presence grew 9% year over year, in line with our expectations of high single digit growth.

Website. We continue to see very nice growth in our presence products like websites and marketing, tempered by slower growth in our legacy hosting and security business website with continued year over year declines in social. Bookings came in at $1,050,000,000 rising 13% year over year with 2 points of currency tailwind. Strength in bookings in the quarter reflects similar drivers to what we called out for revenue. Gross margin came in at 64% in the quarter, in line with what we saw both last quarter and in the Q2 last year.

Product mix continues to drive the company's overall gross margin and we're pleased with the 16% Year over year growth we saw in gross profit dollars in the 2nd quarter. Growth in both G and A and tech and dev expenses decelerated this quarter. As you'll recall, there were some one time expenses related to our Point acquisition that were recognized in T and D and G and A in Q1 that didn't repeat in Q2. The growth rate in T and D remains above what we saw in 2020, reflecting the outstanding talent we added via the Point acquisition and our continued investment in the product development. Our marketing and advertising investment remains strong in Q2, Though the year over year growth decelerated as we started to lap the elevated investment we made to capture the extraordinary demand we saw last year.

Our growth and investment in the 2nd quarter resulted in normalized EBITDA of $198,000,000 representing a growth of 22% year over year. Website. Unlevered free cash flow for the quarter was $237,000,000 growing 27% year over year, driven by strong profitability, continued positive impacts from working capital and disciplined CapEx investments as we continued shifting workloads to the cloud. Now on to the balance sheet. We finished Q2 with $1,400,000,000 in cash and total liquidity of nearly 2,000,000,000 site.

Speaker 4

Net debt

Speaker 3

stands at $2,600,000,000 below 3x net leverage on a trailing 12 month basis and near the midpoint of our targeted range of 2 to 4 times. GoDaddy has a strong liquidity position, access to both debt and equity capital markets and resilient cash generating operations. During the Q2, we repurchased nearly 1,000,000 shares for an aggregate purchase price of $81,000,000 and announced acquisitions in the registry space. Our priorities for capital allocation haven't changed. Our strategic priority is to grow the business and will continue with organic investment as well as through acquisitions.

We will continue to prioritize M and A over share repurchases. That said, we still have approximately $1,000,000,000 remaining on our repurchase authorization, and we expect to deploy capital to repurchase shares opportunistically. Moving on to our outlook. GoDaddy has a strong resilient business model, giving us confidence in our ability to achieve our full year targets. Following a strong first half, We want to acknowledge the evolving impact of the pandemic, COVID variants and access to the vaccines, and we want to be prudent with our guidance for the second half of the year.

We expect our full year revenue to be approximately $3,750,000,000 or 13% growth year over year, and we continue to expect unlevered free cash flow of $955,000,000 or 16% growth year over year. While we don't typically guide to bookings explicitly, we want to provide some color. We expect bookings growth to be a couple of points below revenue growth in the back half of the year. Our forecast assumes that FX tailwinds will abate and we're facing tough compares. We expect revenue growth in domains to moderate, especially in Q4, exiting the year growing low double digits.

We're also facing tougher compares in the aftermarket as we lap the impact of the list for sale tool and other improvements introduced in Q4 last year. The aftermarket, as you know, is a non subscription business. We expect hosting and presence revenue to deliver mid single digit growth for the full year. We continue to see low single digit growth in our legacy hosting business. We are also lapping very difficult comps in our higher growth products like websites and marketing and continued declines in social.

We also note that the moderation of the FX tailwinds will disproportionately impact this line. We've got a strong track record of driving growth and our goal is to accelerate the growth in this category beyond 2021. We continue to expect website, high teens growth in business applications for the year. With respect to investments and expenses, we continue to invest in tech and dev as we drive development of our omni commoners and better scale our engineering and developer teams for long term growth. Website.

Marketing spend is governed by returns, so we'll continue to monitor and adjust based on the demand we're seeing in the market. Investments here will likely be offset by continued leverage in customer care and G and A. For Q3, we expect total revenue of approximately $945,000,000 or 12% growth year over year with high teens growth in business applications, mid teens growth in domains as we lap the slightly tougher comp and mid single digit growth in hosting and presence. As I wrap up my comments here, I want to express my thanks for the incredible welcome I've received from with all of the wonderful people of GoDaddy, as well as our partners throughout the industry and our analysts. I will do everything I can to ensure that we are executing against All of the financial and strategic priorities we've laid out and that we are communicating clearly and transparently with all of our stakeholders.

I know I have big shoes to fill, and I'm looking forward to meeting many of you in the coming weeks months as we virtually hit the road. With that, we'll have Christy Masoner

Speaker 5

website. Thanks, Mark. Website. Our first question comes from the line of Trevor Young from Barclays. Trevor, please go ahead.

Speaker 6

Great. Thanks for taking the question. Just on a segment basis, it seems like the H and P guide was a bit softer than prior commentary. If I heard you correctly, Mark, you said mid single digit growth for the full year. Can you help us understand what changed?

And then also remind us to what the impact is in 3Q from lapping M and A or is that more just a 4Q impact? Thank you.

Speaker 7

Hey, thanks, Trevor, and happy to elaborate a bit. Let's start with we're facing tough comps when it comes Some of our higher product growth rate, websites plus marketing and things such as that. I would also say FX is not working in our Favor in the second half where we assumed we will not have the same tailwinds. And we continue to see low growth in our hosting and Security. So that coupled together kind of has put us at a mid single digit growth for the year.

I would also add website. We're being pretty prudent when it comes to looking at customer behavior, especially as we get into the second half of the year. Website. We just want to acknowledge there's a lot going on with our consumers and we think this is the place to be right now. As far as the lapping in Q3 and Q4, we see part of it in Q3 and the bulk of it in Q4.

Speaker 8

Great. Thanks.

Speaker 5

Our next question comes from the line of Brent Bracelin from Piper Sandler. Brent, please go ahead.

Speaker 9

Hi, this is Clark Jeffries on for Brent. Firstly, I'll say Aman, really encouraging to hear about Product innovation and how quickly the company has been able to iterate on the point portfolio. It's exciting progress so far. On that point, Could you help us understand what's the current level of adoption you're seeing in payments? And maybe what are some of your key strategies for encouraging adoption?

Website. Some of your peers have pursued transaction fees for not selecting the preferred payment rails. So, Correct me if I'm wrong, but you're not doing that strategy specifically. So, I just want to see where do you see potential for push versus pull strategies to increase in adoption?

Speaker 2

Website. Thanks, Clark. As you know, we just launched GoDaddy Payments and we're seeing a good reaction from customers. They're excited. They're clicking on it.

They're choosing the product. So it's a great, great start. But overall, our timing in e commerce is about getting to the omni commerce solution later this year. Next year is about marketing and experimentation with pricing. So you'll see us experiment with a lot of the Marvels out there.

And as we go through that, we're going to pick what's site for our customers and shareholders together. So, no specific comment on various pricing strategies, but we've got a good start, how are you able to try a lot stuff out.

Speaker 9

Great. And if I could have a follow-up for Mark. Just could you comment on the legacy hosting and security business? Website. So, what are the growth expectations long term for that segment?

How should we be thinking about the moderation currently in that segment? And Is there an R and D push here or any kind of change in industry demand that we should just anticipate for that segment going forward?

Speaker 7

Yes. Thanks. And I'll start with saying, a lot of the hosting and security is driven by traffic. Website. And as in that particular area, we're monitoring the traffic very closely.

We think it will continue with low digit growth website throughout the year. We will take a look at what the long term prospects are that. And I'll just start with website. I'm looking forward to checking in with everybody 6 months from now and looking at the 2022 guidance as we put it forth.

Speaker 5

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

Speaker 10

Sorry about that. Hey, good afternoon. So, you guys had good outperformance In the quarter, I'm just trying to think through the second half and the puts and takes. I know you addressed it a little bit, but so if I remember correctly, last quarter, you talked about How we'd be facing some challenging comps in domains, but continued innovation there can keep growth elevated longer. Website.

On the domain side, where do you guys think you are relative to that kind of target that traction that you talked about website. Last quarter in terms of innovation and keeping growth stronger. And similarly, on the present side, I mean, we've got a lot of pieces coming together around Commerce and the omni channel piece is coming in later this year. I know it's still early on the omni channel front, but payments and everything else. Website.

What are the things that investors should be looking for to get better confidence that the Presence segment is growing faster and getting stronger as you put these things together. Thanks.

Speaker 2

Thanks, Yigal. Continue to be super excited about the innovation in the Domains business. Website. As I talked about last time as well, we're continuing to do more every quarter. And the goal here is to build the innovation factory where website.

We're the leader in this space and we're going to just continue to innovate. But we can only guide to what we see. We can't guide to Sort of future innovation, but it's happening every quarter. Just this quarter, I talked about it in the prepared comments. We launched Spice Now Landers, And they've been adopted really, really well by our domain investor customers.

So you'll continue to see us do it. It's just that when it comes to guidance, we'll talk about What we see and what we know. And in terms of presence, we continue to see fantastic growth in our growth products like Websites Plus Marketing and Managed WordPress. They're still outgrowing our overall business even though they have some really tough website. So super excited about the work happening there as well.

Speaker 10

Okay, thanks. If I could follow-up on the comments around customer behavior. And you've had really strong customer behavior for essentially since the early days of the pandemic. Are you seeing things change or still down? I would think any Kind of resurgence in COVID would kind of bring customer behavior even stronger, not weaker.

Just talk about some of what you're seeing there.

Speaker 2

Website. At a macro level, obviously, we're all excited to have a vaccine and be able to have a sense of normal, But these are unprecedented times. We don't really know how customer behavior is shifting. And my view always goes to the whatever changes we see are website. Short term, long term, the opportunity in terms of online and offline coming together is massive.

Our customers need to get out there. They need to sell everywhere. We're building a set of products, portfolio services that meet that need. We have a massive brand. So I'm just super bullish about our opportunity long term there.

Speaker 11

I'll jump onto that

Speaker 7

a bit. We continue to be really, really excited about the long term prospects, website. But we've been prudent in the guidance. We're taking a look at the market. We're taking a look at the behavior, and we'll continue to monitor for the short term.

Speaker 5

Website. Our next question comes from the line of Ron Josey from JMP. Ron, please go

Speaker 4

ahead. Great. Thanks for taking the question. Appreciate it. And Aman, you might have touched on this earlier, but I wanted to ask a little bit more here With commerce being a top priority overall and payments now live omni channel solution coming.

So maybe just asking as we exit 'twenty one and going to 'twenty two, when these products evolve here, just talk to us about just the next call it, how you view Commerce evolving on GoDaddy, do you think we're still into building out new products or now we're in the execution mode? I think you might have answered this earlier or at least Vanessa's earlier, but I wanted to site maybe a different way. And then I want to also talk about the Google Merchant Center product that was announced, I think, a few weeks back. Just talk about how this integration here

Speaker 2

Thank you, Ron. And on Commerce, as we've discussed, website. The strategy is about meeting a broad set of needs for our customers. And 2021 is the build year. We're moving very, very quickly.

We've got payments out there. I website. PayLink's virtual terminal. We're going to have omni commerce by the end of the year. We're talking about invoicing For GoDaddy Pro.

So a lot happening in the commerce space where we're looking at the customer need and we're bringing it out very quickly. 2022 is the year of experimentation. It's website. Really too early right now to talk about what different things may happen there. We're going to go to market.

There's a set of marketing experiments, a set of experiments around pricing that we're going to be working on. And generally, the initial reaction is good from customers where they see our products and they want to work with GoDaddy on it. And in terms of Google or some of the Facebook announcements as well, what we're most excited about is creating a seamless and intuitive experience website. For our customers to be able to go into one dashboard and manage systems, not just for their online store and with omni commerce their in store, But to be able to manage their spend on major platforms all from the same place, all one look and feel seamless, intuitive, easy, that's what we're looking for. That's what we're most site.

Speaker 4

Great. Thank you, Aman.

Speaker 2

Thank you.

Speaker 5

Our next question comes from Nick Jones from Citi. Nick, please go ahead.

Speaker 8

Great. Thanks for taking the questions. I guess kind of 2 along the Same line of thinking. I guess, Lon, can you give an update on the kind of M and A we can expect? You made some acquisitions in Domains.

There was point. I mean, Are there other sizable acquisitions out there you could make or should we think about it more as tuck ins? And then maybe separately, website. How do you think about partnerships in terms of kind of enabling SMBs to really utilize your platform to the fullest extent website for those who maybe don't know how to?

Speaker 7

Thanks. Yes. Thanks, Nick. I will take that one. Website.

Really quick, obviously, we don't comment on ongoing M and A, but we will continue to look at opportunities that bring value to our customers. Website. The one great thing about our balance sheet is it gives us optionality to look at all sorts of deals. But We're not going to comment on anything currently. When it comes to partnerships, our ecosystem is extremely important.

We will continue to look at that ecosystem and again, where where it makes sense to partner with people in the market and everything is about the focus on the customer and bringing them value and ultimately strengthening that ecosystem.

Speaker 5

Okay. Our next question comes from Drew Glasser from JPMorgan. Drew, please go ahead.

Speaker 12

Hi, this is Drew on for Sterling. So we've seen news reports that GoDaddy will website. The VeriSign price increase when it goes into effect in September. Can you confirm whether that will be the case and how you expect that website.

Speaker 2

Yes. The tradition in the industry has been for registrars to pass on that pricing. Website. What's important about that with GoDaddy is that we have a segmented customer base and we take a nuanced approach to that pricing based on the type of customer. Website.

So, we will be doing that, the same strategy that we have done in the past. And I'll turn it to Mark to talk about other revenue.

Speaker 7

Thanks, Aman. And we have built this into the forecast. We had it in all along. These things aren't unusual. And as Aman mentioned, We've traditionally passed them on, so they are in the forecast for the second half.

Speaker 5

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

Speaker 6

Website. I wanted to get your opinion on whether you're expecting this industry wide adoption of these higher prices. And then on the registry business, Do you see any other interesting opportunities or other extensions that you can eventually integrate with the product? Reps. I mean, if you can't disclose anything confidential, that's fine.

Just how we should be looking at it is important here.

Speaker 2

Website. Yes, I can take that. On the pricing for other players, obviously, I can't comment to what other companies are going to do. But obviously, historically, you can look at what companies have done, probably get a pretty good idea. On the registry business, continue to be really Excited about what we can do there for the industry as a whole.

As I talked about last quarter, our first goal there is to get to a greater scale and you saw us do a few acquisitions. We now support to 40 TLDs. Our goal is to have a certain scale where we can experiment with innovative ideas. We do have a few ideas and I've talked about 1 or 2 in the past. Website.

But as we get closer to them and customers likely see them, I'd love for them to get out there and then we can talk about them more.

Speaker 6

Got it. And then just one more if I can. Can you give us some perspective on share buybacks in the next few quarters and how we should be thinking about those?

Speaker 7

Thanks. I'll take that one. We Always look at capital allocation. And as we've said in the script, our priority is around accelerating growth, whether organically or through M and A. Website.

Having said that, we will continue to look at its share buyback and be opportunistic and provide value back to our shareholders where appropriate. Website.

Speaker 5

Our next question comes from the line of Naved Khan from Truist. Naved, please go ahead.

Speaker 11

Great. Yes, just maybe I missed it, but did you guys talk about subscriber growth In the quarter, maybe not a specific number how it compares to past few quarters. Website. And maybe another question you can help us understand and get a better feedback is, It's just a mix of e commerce in the websites and marketing. I think a few quarters that we said, roughly a

Speaker 7

website. I had a tough time hearing the question there, Naved. So I'm going to answer what I It was the second part and then we might have to do a repeat on the first part. I think you were asking for kind of directional guidance on the impact of Commerce. I will tell you, while we're really, really excited about the launch of payments in the first half and website.

The launch of omni commerce in the second half, we're not getting into the financial numbers now. We're still looking at the impact on our customers.

Speaker 5

Question, if you could repeat the first part of the question.

Speaker 7

Yes. And to that matter, if I didn't get the second question right, let me know. It was kind of in and out.

Speaker 11

Website. Let me try one more time. Hopefully, you get it now. So the first question is just around subscriber number for the Q2 website. And how that compares with the growth in the past few quarters that we have seen?

And the second question I had was just around the mix of website. Commerce subscribers, I think in the past you've talked about roughly 25%. Is that still the case?

Speaker 2

Thanks, Navit, for repeating the question. On subscriber counts, we don't disclose that on a quarterly basis. So we'll share that with you at the end of the year. And in terms of our commerce solutions as part of websites versus marketing, customers continue to lean into that. We've continued to lean in and add more and more functionality.

So that

Speaker 5

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

Speaker 13

Thanks. There were some questions around VeriSign's price hike and how you intend to pass that through. Can you just comment on website. And then secondarily, Aman, when you look at the business apps high teens growth, could you just lay out website. The engines of how you are getting there, maybe if you can just talk to broader, how what's underlying that confidence to get website to that growth rate on the business app side on the components of growth?

Thank you.

Speaker 2

Yes. Sure. Brian, thank you. On the price increase with VeriSign, what I talked about was that we have a segmented strategy. So we have different types of customers and we website.

Change pricing at different levels for them. Traditionally, registrars have passed on the pricing from registries. So there is a pass on from us. But as Mark commented, that's been in our guide, but it's a segmented and nuanced approach. So I just want folks to understand that about the company as a whole.

In terms of the second part of your question sorry, what was the second part?

Speaker 13

Do you think the engines website. These apps engines are both. Applications initially?

Speaker 2

Yes. Sorry, there's this little delay. In terms of the business apps growth, that continues to be a function of customers onboarding on our email products, both the Microsoft solution that we have website and OX and us growing with our customers because as customers do well, are successful, there's seat growth with them. Website. We continue to be under penetrated here.

There's a ton of opportunity as we reach more and more customers, as we make the experience simpler. There have been website. Some onboarding improvements for customers that we've been able to do. We've been able to continue to drive growth with existing customers and new customers there.

Speaker 5

I'll turn it over to Aman for some closing remarks.

Speaker 2

Thank you all for joining. A quick thank you to all the GoDaddy employees for

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