Clarke Jeffries: Perfect. And if I could just ask one follow-up, Create and Grow ARR slight improvement in year-over-year trends and if I look at it from what you disclosed maybe an improvement in sequential trends. At this point, I’m wondering if I could get your view on where we are in the curve of the macro. Does it feel like we’ve leveled out in terms of the customer trends in e-commerce? Any kind of comment there would be helpful?
Aman Bhutani: Well, it’s €“ do you want to
Mark McCaffrey: No. Go ahead.
Aman Bhutani: Maybe I’ll go first, and you can jump in as well. I think, none of us have the crystal ball, it’s really hard to sort of predict the macro, but then we continue to see sort of uncertainty around it. And, we’re doing our best to look at the data that we have and look at the indicators in the marketplace. And I’m sure everybody else looks at it as well. But we’re trying to run the business and what we see and we’re pretty happy with our results, and we’re focused on the execution and what we control.
Mark McCaffrey: Yeah, I gave up trying to be an economist in this environment, that’s the truth. We have a broad business, too. So we see impacts in different areas. And example, we’ve talked about aftermarket, we’ve seen the impact in this environment around our transactions there. But commerce continues to make progress going into 2023, we’re seeing a lot of taking €“ talk about the attach-related to Websites + Marketing, when people are coming through the funnel, we’ve continued to see the progress of our existing customer base or 21 million customers converting over to payments. We’re really excited for the first time that we have all the revenue streams in place, and they’re making progress towards our stated objectives, especially as we look at 2024 and beyond.
So, the one thing that we continue to evaluate as our business gets impacted in different ways based on different things happening, which gives us protection overall, but something we need to continue to monitor.
Clarke Jeffries: Really appreciate it. Thank you very much.
Christie Masoner: Our next question is from Ygal Arounian from Citi. Ygal, please go ahead.
Ygal Arounian: Hey, good afternoon, guys. So it sounds like you’re still committed to the 15% EBITDA, and then the free cash flow guidance gave, and it sounds like we’re stepping off of the commitment to the revenue growth given the macro business. So first, just thinking about €“ or can you help us think about the right way to think through revenue growth and where we should be thinking what you guys are thinking. And then on the OpEx in the $100 million savings, any more color you could share on where typically those are coming from which line items?
Mark McCaffrey: Yeah, I’ll start, and Aman you could add. So looking at our investment thesis going back to Investor Day, we talked about the revenue growth, Normalized EBITDA, cash flow per share, share buybacks, were our main components. And in looking at the profitability and the cash flow per share coming into 2022, we started the year in forecasting 23% to 24% for the year. We’re exiting the year 26%, so we’re ahead of target on profitability. We’re delivering cash flow per share greater than the $6, we had targeted at $61.20. So those two, we are really happy with our progress. Things like FX and the macro environment hit our bookings. In that booking, especially in our subscription revenue, takes time to roll out. So we’re seeing headwinds leading into 2023 related to that revenue growth.
We also with some of the actions we’re taking or building in some headwind on revenue for the integrated brands that we’ve been talking about. So as time goes on, we think we are well positioned to be a double-digit revenue growth company going forward. But it will take time for our bookings to roll to our revenue to get back to the tailwinds versus the headwinds we’re facing coming into 2023. We feel really good about our ability to meet our other objectives around profitability around cash flow per share. And we stay committed to our share buybacks, so a lot of positive there. But we are controlling what we can control and we’re monitoring what what’s going on in the macro environment. Assuming that, we will see a headwind turn into a tailwind as we go into 2024.
Aman Bhutani: I think you covered it all. I think what I might add is that our success GoDaddy is aligned with sort of secular trends around people coming to the internet, people transacting on the internet, people wanting to get their idea out there and be inspired and be an entrepreneur. And that opportunity is huge. And we’re super excited about it and pursuing it over the medium to long term. From my perspective, if the top-line metrics, if those milestones are moving a bit, it doesn’t change our direction, it doesn’t change our strategy, it actually allows us to focus the business and put ourselves in a position where we can grow faster and as the macro improve being a very good position to take share.
Ygal Arounian: Great. And then, on the OpEx kind of where that’s coming from specifically for savings?
Mark McCaffrey: So a couple of different areas. One, most of the actions were primarily around our Core Platform segment to give some color of the area. And then, some of the areas in line items include, HR recruiting, marketing, I think, we’re the ones that were targeted during this event. And I think those were the primary things within our operating expense.
Ygal Arounian: Okay. And then last question on the Worldpay partnership there, it’s really interesting. I think it’s the first major retail partnership you guys have done? Is this a shift in strategy to do more things like this, and that become a bigger part of the customer growth and kind of future growth?
Aman Bhutani: Yeah, look, our path is to see GoDaddy terminals in every store, and to see GoDaddy software being used by millions and millions of micro and small businesses, a partnership like Worldpay gives us access to be able to reach a pool of customers faster. So I would say it’s very much aligned to our core strategy. And, yes, as opportunities present themselves to reach our goals or execute that strategy. We’ll look at other opportunities as well.
Ygal Arounian: Okay, great. Thanks.
Christie Masoner: Our next question comes from the line of Elizabeth Porter at Morgan Stanley. Elizabeth, please go ahead.
Elizabeth Porter: Great. Thank you so much. I just wanted to hit on the restructuring a little bit more. So could you help us understand just the restructuring announcement with the context for your outlook on revenue growth to start to improve from Q4 and Q1 guidance? Is this more about allocation of resources versus an outlook on demand? And then just related, how should we think about reinvestment in the business?
Mark McCaffrey: So I’ll start with €“ hi, Elizabeth. I’ll start with the Q4 leading into Q1, when we look at our growth and the impact, 2022 had on our bookings coming out of Q4. We needed to right size our operating structure to reflect the bookings growth and the impact that was going to have on revenue growth going into 2023. And that’s how we looked at it controlling what we can control from an operating perspective. And monitoring and assuming that the macroeconomic environment we’re in today will persist throughout the year. When it comes to investment in tech and dev, we primarily looked at core platform, and some of the non-strategic brands around hosting as we started to evaluate where we were going to look at productions versus invest.
And the flip side of it is applications and commerce continues to be an area we invest in, commerce continues to be a growth driver for us leaving it to 2024. So when it comes to investment in tech and dev, we continue to push towards that. I always use the commentary, there’s two things you need to have to win in the tech industry going forward, you need innovation, and you need to own the customer relationship, we can continue to focus on both of those continue to innovate. Commerce, again, is one of the areas we continue to look for innovation and growth. And obviously, our customer care relationships have been something that has been strength for us going forward. So those two areas continue to be the areas of investment for us.
Elizabeth Porter: Great. And then just on the ARPU, given the change in customer count any context for how ARPU grew in 2021 versus the 10% that you just recorded for 2022. And, how should we think about the level of sustainability any opportunity there is to actually accelerate ARPU into 2023, just as you improve through the attach of commerce and payments?
Aman Bhutani: Yeah, we’re absolutely focused on growing ARPU. And, our strategy around bundling more products and something we’ve talked about over many quarters, right, is about bringing new customers and existing customers and exposing them to more and more of our product range. So we’re absolutely looking at opportunities to increase ARPU. And just to touch on your comment over the years, the trends are similar. We’ve had sort of consistent ARPU growth over the years and we’re investing and making the right decisions to continue to see that happen.
Mark McCaffrey: Yeah, continued focus on customers with a greater entity to spend in commerce, we think it will be a big opportunity. 85% of our revenue comes from our existing subscription base right now, but as we get more into the transactional nature of the businesses on the one-stop shop, that will create an opportunity for us to continue to increase ARPU.
Elizabeth Porter: Great. Thank you so much.
