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

Aman Bhutani : Yes. Yes. So, gross ads were strong for us, and it was on efficient marketing spend. And I did highlight in the prepared remarks, and I think you repeated that which is that search was a strong contributor to that. And what I added to that is that it’s not just search in the U.S., it’s search globally. That did a really good job sort of delivering for us. But it’s not a search alone. We have been focused on improving our marketing, the targeting of our migraine, and the measurement of our marketing over the last couple of years. I think we’ve talked about it multiple different times has been an important priority for us. And what we’re seeing as a result is more people show up to the website, right? More people going through the funnel better.

I think one of the things I’ve talked about, and I don’t know if this is what you’re asking about. But One of the things in the past that I’ve talked about is that we have shifted as a company, and we are very much an experimentation-based culture now. teams go out and they try different things and then measure closely whether there’s a conversion improvement or not. And that, of course, helps as well, right, where when we land better traffic and conversion is up on the site, that delivers better for us. Whereas in the past, maybe years ago, we may have relied on a combination of the site and care more, what we find now is that the site performs really well. And that’s a great way for us to attract gross ads, and we’re pretty happy with that result.

Mark McCaffrey : Yes. And I’ll just add to that. What we really like about the gross ads coming in is they are customers that have a higher propensity to want to do business and therefore, are attaching a lot faster. And on the churn on the other hand, we are losing the migration and lifting of some of these products. But that relates to what we refer to as [indiscernible] customers that weren’t growing the business for necessarily using the functionality. And therefore, we’re trading in a good direction as we get to those net ads.

Ygal Arounian : Right. I have a follow-up, but I don’t want to I’ll jump back in the queue and then…

Aman Bhutani : It’s okay, go ahead.

Ygal Arounian : Yes. Okay. So, then this is all super helpful. I love this color. So, you and your peers on the kind of closed-end platforms seem to be all driving efficient marketing spend that’s bringing more share were really across the board. And then going back and tying that back into the kind of, let’s just say, flattish domains globally, right? It feels like your space is taking a lot of the share of the web-building ecosystem. Is that a fair characterization? And where do you see the share coming from? I think we talked about World Press in the past and maybe you could just help on that. Thanks.

Aman Bhutani : Yes. And we’ll provide more color on this at Investor Day for sure, to talk about how website share is shifting. And overall, I think there was — if we look at the last few quarters, there’s more pressure on world press at least from what we saw then, if you go back many years. But taking a longer-term view, the share is still coming from custom HTML sites. That is what is reducing. And there is sort of growing demand and obviously, the new demand goes more towards the newer tools that exist, right, you find that’s easier and easier for customers to build sites themselves and get started. Like our two websites for marketing does a fantastic job of that. You see us at GoDaddy with the digital guy taking the next step.