GoDaddy Inc. (NYSE:GDDY) Q2 2023 Earnings Call Transcript

Naved Khan : Got it. And then the — you kind of alluded to the bridge to sort of resumption of growth or healthy growth, right? So — and the one that you shared last call was, I think, getting you back into the double digits. So, if I have to think about when you start to see like the full — the effect of full anniversary-ing and kind of getting to that, how should I think about timing? Is it Q1? Is it early next year? At what point would be kind of this would be in the real war for you?

Mark McCaffrey: Yes. Thanks. And try not to peg a specific timetable here as we’re getting into the back half of the year. We’ll talk more about it later. But when we look at the full-year guide this year and we kind of look at the impact of FX, the difficult aftermarket compares and migrations and divestitures we’re doing — they will start to abate into the fourth quarter and continue to abate and turn into tailwinds as we go through 2024. Not trying to pick a quarter on anything right now. We’ll talk more about that later in the year. But the momentum has us accelerating revenue as we go through units.

Aman Bhutani: And if I could just add, Long term, we’re excited about the path to accelerating growth because it’s based on the simple idea that create products that can lead the customer through the entrepreneur’s wheel, which you remember is about leading them through identity to presence to commerce really creates a flywheel for the company. our technology has improved in a very significant way. That leads to greater attach, not just for new customers for our base as well. That involves identifying a customer that is most connecting and reaching out and engaging the customer and then closing the customer. Of course, you’ve seen us do it successfully with e-mail over the last three years, four years where that business has product business has performed very well for us.

And now you’re seeing it us do it with the OmniCommerce solution as well where a GPV has grown nicely, and we can clearly see that we have a ton of customers in our base that would love that product from us. So, at the core, our path to long-term path to accelerating growth is about innovation in the product. It’s creating value for the customer that leads to monetization opportunities like attach like pricing and strong retention that come together to sort of give us the confidence we’re sharing with you about the positive momentum in our business, and that’s what we believe will drive long-term shareholder value for years and years to come.

Mark McCaffrey: And if I could just add to that and to clarify, we — while we look out in ’24, we are reaffirming our guidance for 2023 in the range for revenue just FYI [ph].

Naved Khan : Thank you, guys.

Christie Masoner : Our next question comes from the line of Brent Thill from Jefferies. Brent please go ahead.

Unidentified Analyst: This is John Ben for Brent Thill. First question GMV had pretty good growth accelerate 20% year-over-year and also up 18% sequentially. Just wondering what might have be some of the drivers? I mean, are you seeing any sort of improvement in macro and GMV per customer? Or is it just better attached, if you could parse that, that would be great.

Aman Bhutani: Yes. GMV growing as a function of sort of the macro to start with. We are seeing more of our existing customers transact more with the solutions they have. To remind you, a lot of our GMV is a function of the relationship we have through the bank. So, it’s a different financial model for us, but it gives us a great barometer. It gets our product out there. We get to see sort of what’s happening in the world. So, we are very happy with the growth and it basically signifies more and more people using the GoDaddy solutions for their businesses, both off-line and in store