Financial Data and Key Metrics Changes - GoDaddy achieved a total revenue growth of 10% year-over-year, reaching $1.3 billion, surpassing the high end of the guided range [17][18] - ANC (Annualized Net Customer) bookings grew by 14%, contributing to a total bookings increase of 9% to $1.4 billion [18][19] - Free cash flow increased by 21% to $440 million, reflecting strong operational performance [16][18] - The normalized EBITDA margin was maintained at 32%, with normalized EBITDA growing 11% to $409 million [18][21] Business Line Data and Key Metrics Changes - The high-margin ANC segment saw a revenue increase of 14% to $481 million, driven by solid adoption of subscription solutions [18] - The core platform segment delivered an 8% revenue growth to $784 million, supported by a 28% growth in aftermarket and a 7% growth in primary domains [18] - The $500+ customer cohort now represents approximately 10% of the customer base, contributing to a 10% increase in ARPU (Average Revenue Per User) to $237 [16][17] Market Data and Key Metrics Changes - International revenue grew by 14%, primarily driven by strength in both primary and secondary domain markets [17] - Retention rates remained stable at 85%, with total customers increasing sequentially to 20.4 million [17][18] Company Strategy and Development Direction - GoDaddy is focusing on the evolution of its Aero platform from generative AI to agentic AI, launching new agents to assist customers in various tasks [4][5] - The company is committed to creating an agentic open internet, enhancing customer experiences through AI-powered agents [4][10] - Strategic initiatives include pricing and bundling to provide greater value and choice to customers, and a seamless experience to improve conversion and renewal rates [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of micro-business owners and their continued engagement with GoDaddy's services [81][82] - The company raised its full-year 2025 revenue guidance to approximately $4.93 to $4.95 billion, reflecting ongoing strength across the business [19][21] - Management highlighted the importance of AI in driving operational efficiencies and enhancing customer engagement [61][63] Other Important Information - GoDaddy has repurchased 9 million shares for a total of $1.4 billion year-to-date, demonstrating a commitment to shareholder returns [16] - The company is on track to exceed its investor day North Star commitment of a 20% CAGR (Compound Annual Growth Rate) [16] Q&A Session Summary Question: Impact of AI and agentic services on domains and websites - Management believes that AI and agentic AI will automate customer journeys, leading to an increase in the creation of websites and demand for domains [24][26] Question: Customer base growth and metrics - The total customer account showed slight sequential growth, with a focus on high-intent customers driving ARPU growth [30] Question: Rollout of Aero.ai and its integration - Aero.ai is built on the GoDaddy software platform, providing a seamless experience for existing customers and linking to the GoDaddy ecosystem [34][35] Question: Drivers of strengthening customer cohort dynamics - The high-intent customer cohort is attaching to more products at a higher rate, contributing to bookings and revenue growth [37][38] Question: AI investments and profitability - Investments in AI are being offset by efficiencies gained from internal use cases, with a focus on maintaining operational discipline [61][63] Question: Aftermarket performance - The company experienced strong performance in the aftermarket, particularly in high-value transactions [46] Question: International growth specifics - No specific markets were highlighted, but international growth mirrored domestic performance [79]

Financial Data and Key Metrics Changes - GoDaddy achieved a top line bookings growth of over 9% and expanded normalized EBITDA margin to 31% for the full year [6][14] - The company reported a 25% increase in free cash flow for the year, reaching $1,400,000,000 [14][19] - Annual revenue grew 8% to $4,600,000,000, with normalized EBITDA increasing 23% to $1,400,000,000, representing a 31% margin [18][19] Business Line Data and Key Metrics Changes - Applications and Commerce (A&C) segment revenue grew 17% to $1,700,000,000, with bookings also increasing by 17% [16][18] - Core platform segment revenue grew 4% to $2,900,000,000, with bookings rising 4% [16][18] - A&C segment EBITDA margin improved to 47%, while core platform segment EBITDA margin expanded to 34% [16] Market Data and Key Metrics Changes - Annualized gross payment volume (GPV) increased 55% to $2,600,000,000, indicating strong growth in the commerce initiative [9][18] - The company reported a customer base of 20,500,000, reflecting a strategic focus on high-value customers [19][20] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [5][14] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations within the hosting business [7][10] - GoDaddy Aero is viewed as a key driver of future growth, with plans to expand its capabilities and customer engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by enhanced value propositions and strategic focus on high lifetime value customers [19][24] - The company anticipates total revenue growth of 7% for 2025, with A&C revenue growth in the mid-teens and core platform growth in low single digits [23][24] - Management highlighted the importance of maintaining operational discipline and pursuing opportunities for further leverage through technology and AI [25][26] Other Important Information - GoDaddy exited the year with $1,100,000,000 in cash and total liquidity of $2,100,000,000, with net debt at $2,800,000,000 [22] - The company plans to maintain a disciplined capital allocation approach, focusing on shareholder returns and evaluating all opportunities [26] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for 2025? - Management indicated excitement about the pricing and bundling program, which exceeded expectations in 2024, and plans to focus on presence products and customer cohorts in 2025 [33][35] Question: What are the drivers for returning to customer growth in 2025? - Management emphasized the focus on high-quality customers and the positive signs in the sales funnel, indicating a strategy that prioritizes high-value customers over sheer volume [39][40] Question: Any headwinds affecting revenue growth expectations for 2025? - Management acknowledged potential impacts from foreign exchange and the transactional business, which could affect revenue recognition timing [46][91] Question: What is the expected contribution from the ARROW initiative? - Management expects modest impacts from the ARROW launch in 2025, with a focus on attracting higher-value customers and enhancing their initial experience with GoDaddy [48][50] Question: Can you provide insights on the renewal rates for the Aero cohorts? - Management noted improvements in renewal rates for customers engaged with Aero, attributing this to the added value and multiple product interactions available through the Aero experience [77][78]