GoDaddy Inc. (NYSE:GDDY) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 05:00 pm ET

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GoDaddy Inc. (NYSE:GDDY) Q3 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

[Operator Instructions]. The first question comes from Brent Thill of Jefferies. Please go ahead, your line is open.

Analyst
Brent Thill

Thank you. For Aman, just if you could talk through some of the early adoption you're seeing in websites and marketing that -- the launch that just came out and it'd be great to get a color there. And then second -- secondarily for Ray, you took the high end of guidance down both in revenue and cash flow. And I just wanted to confirm that's just all FX related nothing organically related. Thank you.

Executive
Amanpal S. Bhutani

Thanks, Brent. I'll take the first part. On Websites + Marketing, it's just been a fantastic launch for us with new features going in this year. Just to remind everyone, we launched the product about a couple of years ago, and we are already at 1 million subscribers here. The key things we've seen since the launch is, a greater interest in the new features, the InSight feature is something that I called out specifically, which we think over time is a game changer, as everyday entrepreneurs go to this product and it actually guides them through, what their next step should be. And with that, Ray, on the secondary.

Executive
Raymond E. Winborne

Hi, Brent, it's Ray. On the revenue guidance, all we did was tightened down the full year range from $30 million to $10 million. So the midpoint stay the same there, just the currency wasn't is impactful to revenue. So I mentioned in the call comments, we pulled down the top end of unlevered free cash flow. We've left that range of $730 million to $745 million out there all year. But as we've moved into the back half, currency has been a little bit of a pressure on bookings. So we thought it was prudent to tighten that up.

Analyst
Brent Thill

Great, thanks.

Operator
Operator

Your next question comes from Deepak Mathivanan of Barclays. Please go ahead, your line is open.

Analyst
Deepak Mathivanan

Great, thanks for taking the question. Aman, nice to hear your vision for the company. Investors are waiting to hear about it for a while, and it's very refreshing. So, thanks for that. Translating it into financial context, how should we think about GoDaddy's historical targets to deliver steady double-digit top line growth versus free cash flow in the high teens plus. Do you still believe in that financial framework or what are your thoughts on that?

And then second question sort of related to that, to your point on guidance to the customer, what does it entail operationally, is that a customer support team that's bigger in size or is that marketing related? How do you plan to achieve it operationally? Thank you.

Executive
Amanpal S. Bhutani

Thanks, Deepak. It's too early for me to get into the specific financial guidance for 2020 and beyond. I think broadly on the framework, we had put up long-term target of $5 billion revenue for the company, and I am super excited for GoDaddy to be that and bigger. And in general, if the statements were,