GoDaddy Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Transcript

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

Question: Bradley Erickson - RBC Capital Markets - Analyst : So maybe just start off with a minute on the quarter. Obviously, you guys just printed relatively recently and give people kind of what are the one or two or three things you've been addressing since the quarter, and we'll go from there.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah. So let's start with the applications and commerce. That's obviously where a huge piece of the growth is coming from. You talk about this pricing and bundling that you do. And I think oftentimes, it comes from kind of your productivity suite. What does that mean? I think help people and -- sorry, understand sort of like what's the customer journey? Where do they start product wise? And then where do as they bundle?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah. And yeah, I mean you've seen the bookings, right, in that segment, obviously, accelerating keep on as high teens?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Okay. Yes, that's what I was going to ask. And maybe along the lines of the hosting bundles, let's go there. What are some of those like one or two or three pillars?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah. Got it. Yeah. These guys for those that are here, they hosted dinner every year kind of in right after Thanksgiving, basically. So -- that's right. We'll be there. So obviously, as they came to this conference, I try and front run that as much as possible. So otherwise, I'm not doing it. They love that, by the way.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Got it. And then one more just kind of on this whole attach or idea of bundling products. You mentioned the tech stack coming together. And I think that, obviously, that really fits with the narrative from starting last year into this year where you had been in this kind of major product cycle investment for a long time, call it, five-plus years almost. Should we think about this as kind of like a product cycle and that it rolls through the base over years? Or is this something that's like we've got 20 million, 21 million technically customers, is it something that just kind of is a tailwind, multiyear type of thing? How do you think about that?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Do you have any -- would you say -- I don't want to use the word holes in your product portfolio, but do you have any areas that you guys think about maybe expanding into? And I don't know, just philosophically, is that a build from within? Are there occasional bolt-on opportunities that look intriguing out there? How do you think about that?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah. So let's talk about Airo, which is obviously your AI platform, kind of more or less formally launched a little over a year ago now, right? What's -- year one, what's changed in the product already, would you say, where you're seeing sort of impact or benefit or early signals that are constructive? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 2:20PM, GDDY.N - GoDaddy Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Bradley Erickson - RBC Capital Markets - Analyst : Feel your passion. Data is fun. That's the takeaway.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Okay, good. You're good. So you mentioned the uptake, obviously. I think it was 40% of paid subs coming from Airo, the specific metric you shared. How -- deal with this with other companies where they give a metric and then we wonder how representative it is of the early progress. Can you maybe put that into some context if you could?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah, yeah, no, in a sense, imagine being in a VC meeting and saying the LTV impact is 83x, it'd be funny. Anyways, let's talk about on Airo. You mentioned it's early and I think that message is very clear here. How should we think about the pace at which you can put Airo in front of your customers? It's amongst the 20 million, whatever, 21 million and then you've got, what is it, like 83 million on the domain side. How long does it take to productively put that in front of people? Like, is that a 2-year thing, a 5-year thing, a 10-year thing? Like, what would you say with Airo specifically?

Question: Bradley Erickson - RBC Capital Markets - Analyst : And then on the paywalls and all the testing you guys are doing there, just especially with -- you talk about value-based pricing, right? In some cases, in the space, people, some of the companies have just said, look, we're taking a 10% up or 15% across the board. You guys are looking at it, I think, much more like, hey, when you clearly are adding some value. There's the propensity to raise price. What are you seeing on the paywall front, early signals-wise, any products or features you're really seeing nice attach or strong sort of elasticity to? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 2:20PM, GDDY.N - GoDaddy Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Bradley Erickson - RBC Capital Markets - Analyst : Got it. And then just quickly on the domains and hosting, you pointed to kind of a little bit of growth in the long-term plan, but nothing crazy, obviously. What is the price versus units formula there as you think about growth in the core?

Question: Bradley Erickson - RBC Capital Markets - Analyst : I feel strongly both ways.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah. Got it. Okay. Let's talk model a little bit. Maybe start with the bookings and the revenue. We'll talk margins in a sec. You guys are -- especially on AMC, you're clearly running kind of ahead of the long-term plan, certainly from a bookings perspective.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Clearly, you're running ahead. The question we get on you guys is how to sort of flow that into the model, right? As we think about the bookings close to 20% flowing in next year from a revenue growth perspective, what's your recommendation for our spreadsheets?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Your words, not mine. Bookings does become revenue.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Any contract length delta you can talk about, just even qualitatively, between A&C versus hosting or what have you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 2:20PM, GDDY.N - GoDaddy Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Bradley Erickson - RBC Capital Markets - Analyst : Got it. Okay. And then kind of same question on EBITDA. You guys are -- you took the number up for this year, so we'll give you credit for that. You're running ahead of a plan, therefore, obviously, you're not gonna update today. But I guess my broader question is like, you're on a fairly steady cadence now of giving investors kind of this three-year look. We're running ahead this year. How should we think about potential updates to that or you're kind of still on the plan? Like what's the go forward there?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah, but on infrastructure, like you're saying, it's going as it was embedded in the original.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Got it, okay. And then I think, I mean, you guys gave an awesome stat on the call, the whole 16 million minutes saved or whatever, which is like 150 FTEs or rough, rough map. Talk about, not so much like from a cost savings perspective but just philosophically, what can you do with that time? What are you doing with that time you've gotten back? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 2:20PM, GDDY.N - GoDaddy Inc at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah, yeah. So along those lines, and this isn't, don't take this as like a judgment of infrastructure spend or whatever. What's the way to say it? Take off your CFO hat for a sec.

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah, so when you think about AI spend, right, and particularly around generative AI and the large language models and stuff that you guys have been spending on for a while now, you're getting points of leverage like this. Does that just it would seem logical, but does that just overtly justify the case to invest more, like dollar-wise going forward? Or how do you think about that? And then secondarily within that, do you think of like that general spend as coming from the existing bucket of IT spend? Or again, do you find these sort of slivers of efficiency and warrants allocating more dollars towards the AI piece?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Yeah, yeah, got it. I think we're out of time. What's the Superbowl ad going to be?

Question: Bradley Erickson - RBC Capital Markets - Analyst : Mark McCaffrey, GoDaddy. Thank you.