GoDaddy Inc.

Ladies and gentlemen, thank you for standing by and welcome to the GoDaddy Q4 earnings conference call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mark Grant, Vice President of Investor Relations. Thank you. Please go ahead.

Good afternoon and thank you for joining us for GoDaddy's fourth quarter and full year 2019 earnings call. With me today are Aman Bhutani, Chief Executive Officer, and Ray Winborn, Chief Financial Officer. Aman and Ray will share some prepared remarks and then we'll open up the call for your questions. On today's call, we'll be referencing both GAAP and non-GAAP financial results and operating metrics such as total bookings, unlevered free cash flow, normalized EBITDA, net debt, and ARPU. A discussion of why we use non-GAAP financial measures and reconciliations of our non-GAAP financial measures to their GAAP equivalents may be found in the presentation posted to our investor relations website at investors.godaddy.net or on our Form 8K filed with the SEC with today's earnings release. The matters we'll be discussing today include forward-looking statements, which include those related to our future financial results, new product introductions and innovations, our ability to integrate recent acquisitions and achieve desired synergies, including our recent acquisition of Over and the expected acquisition of Uniregistry's domain registrar and marketplace businesses. These forward-looking statements are subject to risks and uncertainties that are discussed in detail in our documents filed with the SEC. Actual results may differ materially from those contained in the forward-looking statements. Any forward-looking statements that we make on this call are based on assumptions as of today, February 13, 2020, and we undertake no obligation to update these statements as a result of new information or future events. With that, here's Amon.

Thanks, Mark, and thank you, everyone, for joining our fourth quarter earnings call. 2019 closed out with strong operational execution and consistent financial performance, as we near $3 billion in revenue while growing unlevered free cash flow 19% year over year. Equally important, we are entering 2020 with confidence after having moved quickly against a set of objectives to realign how we operate as a company, including changes to our priorities, leadership, and teams. all in passionate support of our mission to enable entrepreneurs with technology, humanity, and purpose. We made these rapid changes to accelerate execution all while delivering on our financial commitments across the board. With five months into my tenure, I wanted to share a few thoughts on our core priorities of enabling a strong platform, creating an intuitive customer experience, and continued brand expansion, including our recent launch of our new logo. First, Our core platform goals remain unchanged, increasing our velocity of innovation, delighting our customers with robust and flexible products globally, and seamlessly acquiring and integrating brands onto our platform. Many investors have asked me two critical questions. How much is it going to cost, and when will we see results? Based on my experience of enabling platforms and the state of our platform in context of the resources in place today, I can say with confidence that we will achieve our platform goals with minimal incremental investment. In terms of results, we expect to deliver new capabilities every quarter, and I am happy to share that we recently launched the capability to simultaneously launch products across all GoDaddy brands globally, including our EMEA brands. It is live with a couple of brands today, and we plan to roll it out to all major brands over the next few months. Turning to our second priority, we are staying focused on building seamlessly intuitive customer experiences. When we look at the entrepreneurial journey, there is a clear pattern of interconnected tasks that create friction for our customers, which leads to frustration and discouragement. We've been investing heavily behind a number of solutions for each of our customer audiences, namely in websites plus marketing, WordPress, and our naming capabilities. First, Websites Plus Marketing caters to our independent, do-it-yourself customers, where we've delivered increased simplicity in commerce and content creation. In commerce, we recently simplified our customers' ability to transact with their customers through new integrations, including Google Shopping and the Facebook Developer Platform, where we're now powering service commerce bookings on both Instagram and Facebook. Each of those platforms is important to our customers and their engagement with their customers, and we've totally streamlined the management of these channels. In content creation, we recently acquired Over, a company with a suite of user-friendly design tools to quickly create beautiful and professional digital content for every marketing channel. We will quickly integrate Over's capabilities into Websites Plus Marketing to help our customers seamlessly enrich their social, email, and website presence. And as an independent app, Over's 1 million monthly active users look remarkably like our everyday entrepreneurs, with the average subscriber creating 23 pieces of content a month. With near-perfect ratings on the app stores and an NPS north of 80, it is a truly compelling experience. I highly encourage you to download the Over app and give it a try. Secondly, for our partners who create websites on behalf of others, we have been making significant investments in the open source WordPress ecosystem. As you all know, WordPress is the world's largest CMS with a massive community of users. Our team has been rapidly innovating the WordPress editor to simplify the website building experience, and we recently launched our Go template. The Go template has become one of the most downloaded templates in the WordPress community and is based on our acquired technology from Koblox. This improved experience is being adopted by the entire WordPress community, not just our customers, and is cementing GoDaddy as the global champion of WordPress. And lastly, for our large customers, we just announced the acquisition of several business components from Uniregistry. We've acquired a set of world-class tools, experiences, and technology to help our customers and domain investors buy and manage domains. A broker network to add capability to our aftermarket business, a corporate registrar, as well as a portfolio of high-quality names that will help us improve liquidity in the secondary market. Stepping back, websites plus marketing, managed WordPress, and our aftermarket are thriving on account of the seamlessly intuitive experiences we are enabling. We are seeing validation that building a website with GoDaddy is an exceptional experience, whether that be in third-party reviews, successful publish rates, the billions of GMV we're enabling, or strength of our renewal cohorts. And most compelling, Websites Plus Marketing is taking market share within the captive website building industry. While managed WordPress subscription sales have been hitting new record levels, since our latest launch at the end of October. All are signs of a healthy franchise. Moving on to brand. This time last year, we launched a bold evolution in our brand strategy, deploying investment into influencer-driven creative content and a slate of icons that embody the GoDaddy spirit. This has been a highly successful strategy, producing strong levels of brand sentiment, social buzz, and impressions, all of which are well ahead of our competition. We celebrated this evolution last month as we launched our new logo, the Go. The Go captures our unique ability to enable, connect, and champion millions of people around the world who are making their own way as entrepreneurs, truly making opportunity accessible to all. The logo launch was incredibly successful, and we couldn't be prouder of our teams and the results. In closing, I want to say a quick word about my confidence in our ability to deliver. As Ray will touch on, we nailed 2019, right in line with the targets we set at the beginning of the year. Beneath the headline results, we underwent substantial change as we realigned our teams behind our core customer populations, furthering our identity as a customer-led software company. In the midst of change, companies often take their foot off the gas, but not at GoDaddy. I'm particularly proud that this team stood up, fiercely embraced change, and refused to do anything short of delivering what we committed to. That's unique, and that's what creates the durable business that is GoDaddy. We're looking forward to sharing more about the changes we're making and our future at our April 2nd Investor Day. With that, here's Ray.