GoDaddy Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Trevor Young - Barclays - Analyst : To start, let's hit on your newest announcement on Airo Plus. I was able to attend your investor dinner about a week ago. But for a lot of folks here in the room, they didn't have that privilege. So just walk us through what is Airo Plus, how is it a refinement on the existing Airo product monetization, all that good stuff.

Question: Trevor Young - Barclays - Analyst : You mentioned logo a couple of times, so I want to dig in on that. Why is that an attractive top of funnel because it is different from, historically, GoDaddy's funnel, which was domains.

Question: Trevor Young - Barclays - Analyst : Okay. That's helpful. Last one on Airo. We're now more than a year into it. This is the newest iteration. It focuses on the monetization. You've obviously had some great learnings here. What would be kind of the one or two biggest improvements in Airo or biggest surprise to you over this last year? And similarly, what do you hope we'll be saying about Airo this time next year?

Question: Trevor Young - Barclays - Analyst : Great. You kind of hit on one of my other questions, so I'm going to go there to the types of customers that you're getting. What sort of differentiation are you seeing in the types of customers coming to GoDaddy today versus a few years ago. Are customers coming with that higher intent, such as -- maybe add a website, whereas in the past, it was maybe just take a domain or domain in an e-mail.

Question: Trevor Young - Barclays - Analyst : Yes. Makes a lot of sense. Can you talk about what you're seeing from a macro perspective and top of funnel trends? Your customer trends have been flattish year-on-year and down tad, sequentially, on some well-understood headwinds from the hosting business so I'm sure --

Question: Trevor Young - Barclays - Analyst : But can you speak to what you're seeing in terms of gross adds and how that may be informing your commitment to returning to customer growth in '25?

Question: Trevor Young - Barclays - Analyst : Right. And it's all within your control. That's the --

Question: Trevor Young - Barclays - Analyst : That's the key.

Question: Trevor Young - Barclays - Analyst : Got it. Okay. Last one on macro. I mean, '25 is just a few short weeks away, which is wild to think about. How do you see the environment for SMBs in the U.S. potentially changing from here? New administrations coming in, that is lowering rates, do you think it's a more attractive setup for SMBs, as we head into '25?

Question: Trevor Young - Barclays - Analyst : So to summarize, customers are resilient, irrespective of macro. You're able to determine your own fate on revenue growth and getting the right customers, higher attach customers, higher LTV, all within your control. So it doesn't really matter what happens in macro. Certainly, it would help if you had a nice tailwind there. But --

Question: Trevor Young - Barclays - Analyst : Okay. Real quick on international. I think it's about a third of your business, but it's close to half of your customer base. How is top of funnel demand in Europe, for example, how are those customers engaging with GoDaddy and product flows such as Airo? Is there any distinguishment between the two groups?

Question: Trevor Young - Barclays - Analyst : Okay. Shifting gears, I want to hit on something that you mentioned before about all the data that you have. I mean, you have nearly 21 million customers, more than 80 million domains under management. All sorts of data on how micro and SMBs use their domains, how many e-mail addresses they have, how many employees, all of that good stuff. Can you speak to the data advantage that you have and whether you fully tapped into that? Or do you think you still have an opportunity there to use that further? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 4:40PM, GDDY.N - GoDaddy Inc at Barclays Global Technology Conference

Question: Trevor Young - Barclays - Analyst : So since we're early in the Airo product experience, we're early in tapping into all that data that you mentioned, how have your expectations regarding AI and investments in product dev change since these early successes are starting to kick in? And similarly, since you mentioned it, like internal tools like GABI on the Care Guide side, how does -- what you've learned so far in the last couple of years influence how you think about areas of investment versus areas for additional productivity gains and cost savings?

Question: Trevor Young - Barclays - Analyst : Makes a lot of sense. I want to hit on pricing and bundling. That's been an initiative here in '24 within productivity apps in your A&C segment. We get a lot of questions from investors on, hey, is this one and done? Is this a durable initiative? Is it multiyear? And in the most recent call, you alluded to maybe taking some actions on the core platform side, and we're getting questions around what could that possibly look like. So dig in on how durable is pricing and bundling and what it could look like within core platform?

Question: Trevor Young - Barclays - Analyst : Yes. So multiyear opportunity on that.

Question: Trevor Young - Barclays - Analyst : Good to hear. Shifting gears just to the cost profile, tech and dev has seen some nice leverage this year, benefiting from some private cost actions as well as the consolidating some of your tech stacks. You've highlighted that you plan on driving continued leverage there. How far along are we in terms of exhausting the opportunities here, both on the infrastructure side as well as on the innovation and labor component? Because obviously, you don't want to cut too far the innovations at your core, right?

Question: Trevor Young - Barclays - Analyst : So to put a fine point on the EBITDA margin. I heard you mention some pull forward on some of the savings. Obviously, some of the pricing and bundling in A&C, which is a higher-margin segment has helped this year. But in the meantime, you still have that 33% goal out there for 2026, which would kind of intuit that EBITDA margin progression maybe doesn't continue at the same cadence but still should continue. Is that the right way to think about it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 4:40PM, GDDY.N - GoDaddy Inc at Barclays Global Technology Conference

Question: Trevor Young - Barclays - Analyst : Got it. Okay. But still margin expansion going forward?

Question: Trevor Young - Barclays - Analyst : Okay. Last one before we open it up to the audience. Capital allocation. You're now at the low end of your leverage range. Cash on hand is growing. You're back up to levels we haven't seen in quite some time. Any updated thoughts on how you balance M&A versus buyback? Particularly given the great run in the stock over the last year. And also any thoughts around dividend. It's not something that comes up with your name historically but is that something that's within the realm of possibility for GoDaddy?

Question: Trevor Young - Barclays - Analyst : You don't have to do it. Yes. Makes a lot of sense. We're almost up on time, so I do want to offer it up to the audience here if there are any questions? I know it's early. I know. Well, you did such a good job making the pitch here. So -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 12, 2024 / 4:40PM, GDDY.N - GoDaddy Inc at Barclays Global Technology Conference

Question: Trevor Young - Barclays - Analyst : Well, a lot of great progress. Thanks, Mark. Appreciate it as always.