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

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Unidentified Analyst: Maybe one other quick thing I’ll add is that I think we learned last year that having people see and demo working functionality to them that customers can see is very powerful. So, I would invite all of you, and I know many of you joined. So, I would invite all of you to Tempe in November. So, you can do it yourself with us, demoing it without showing you what that experience is for our customers. And then I think it will sort of illuminate the idea in a much better way.

Aman Bhutani : And the temperature is much cooler in November.

Christie Masoner: Our next question comes from the line of Navid Khan from B. Riley. Please go ahead.

Navid Khan : Okay good. Yes, a quick follow-up. So, one is we saw a transaction, Google domains being sold to Square space. And I wanted to get your thoughts on what it means for the other participants such as yourself in terms of competition. And then the other question I had was on the price increase on the A&C segment. What was the magnitude of the increase?

Aman Bhutani : Yes. Let me take the domains piece first. And then, Mark, if you want to touch on the pricing or I can touch on that to Peter. On the Google domain space, the way we look at it, Navid, is that anytime there’s a transition like this, there’s a disruption in the customer experience or flow. Customers tend to put their heads up and they’ll look at what other options might exist for them. And given our brand awareness and leadership position in the world of domains, given the care we provide given our high transactional NPS, and just sort of broad understanding from a very large number of people what GoDaddy brings to the table. And the more we attach to that bundle with that domain, I think we’re positioned very well to see if some disruption happens that we’re there and it’s advantageous to us, right?

In terms of beyond. But I think our goal is to just do a fantastic job delivering, providing customer’s great products. And we think we’re doing a good job at attracting customers, we’re growing down. And I mean, maybe the way to say it is we were the leader in the mains when Google came into the business and we’re a leader in domains when Google is leading the business. So, we’re okay with that. And then on the AMC pricing, I assume the question is to website plus marketing pricing? I think.

Mark McCaffrey : Yes. I don’t think we’ve gotten into the magnitude of breaking down pricing by each of the different components of it. I’ll give it a little color. I think last year, we focused mostly on pricing increases around renewals. This year, we’re doing it on new as well as renewals. So, I would say than we did last year. Obviously, our priority is always retention rates in sticking with — but we took those pricing increases at the end of Q2, and we should start to see them materialize as we go throughout the year.

Navid Khan : Thank you.

Mark McCaffrey : Thanks, Navid.

Christie Masoner: I will now turn the call over to Aman for some closing remarks.

Aman Bhutani : Thank you, Christie, and I’ll just end by thanking all the GoDaddy employees for another good quarter. And just to remind all of our Anderson shareholders where — we’re super excited about the products we’re bringing to market. We’re super excited about attaching into our base that we’ve demonstrated with e-mail and are demonstrating with commerce now. We’re super excited about the trajectory we have going into Q3 and Q4. Ending the year at accelerating growth and strong margin, setting up next year really well. I look forward to the next call. Thank you very much.

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