Former senior program manager at GoDaddy Inc
- GoDaddy’s (NYSE: GDDY) operating environment – user growth and 12-24-month retention outlook, plus SMB domain and hosting demand
- GoDaddy’s OmniCommerce offering – differentiation and long-term ability to compete with Shopify (NYSE: SHOP)
- Competitive dynamics – GoDaddy vs Wix (NASDAQ: WIX), Squarespace (NYSE: SQSP) and Shopify, plus pricing comparison and go-to-market strategy
- Outlook for 2022 and beyond – potential for GoDaddy to gain market share upstream
Could you outline GoDaddy’s operating environment and highlight any trends or drivers we should monitor around the domain and hosting market?
What demand headwinds and tailwinds are impacting the domain and hosting market, particularly for SMBs? How strong is the appetite for newer capabilities around payments or commerce, given relevant e-commerce trends?
You mentioned a spike in demand during the peak of the pandemic. How much of this was driven by people who brought their businesses online vs those who might have started a side business or a new small business due to the heightened amount of unemployment?
How do you assess the long-term value of the new pandemic-era user, the individuals or small businesses that became a user due to or during the pandemic?
Do you think the users starting these side hustles are sustainable? Is GoDaddy going to be able to retain their business or are they going back to a more 09:00-17:00 job? Does GoDaddy’s UX, which you mentioned was a competitive advantage, help to sustain the retention here?
Where are GoDaddy and competitors in the marketplace – such as Squarespace, Wix and Shopify – overlapping vs demonstrating niches or differentiation across domain vs hosting, but also as they’re moving into marketing solutions and the newer payment or commerce capabilities?
Which of the competitors we’ve discussed would you say GoDaddy is most aligned with in products and offerings and might go head-to-head with the most often?
Are you noting any risks of commoditisation across the marketplace, especially given all the players are starting to offer their marketing solutions and newer payments or commerce capabilities and even observing some focus on heading upstream?
Where are GoDaddy’s downside risks and what could the company be doing better, given you seem very positive on the company?
How is GoDaddy rolling out its OmniCommerce product? How confident are you that the company could get up to a competitive parity on payments vs Shopify?
What do you think would be the best go-to-market strategy for the OmniCommerce solution? You touched on the narrowing down of product lines to refine GoDaddy’s strength in go-to-market, which I think is interesting because the company has been discussing in its earnings reports that it’s still trying to decide the best way to go to market, especially for this product.
Would you say GoDaddy has the right AI technology or the right skillset in place to refine the analytics and assess the customer and thus strengthen its go-to-market strategy for the OmniCommerce product?
To what extent do you think GoDaddy’s users are opting into new commerce-related tools?
What do you think works very well vs doesn’t work well around bundling in GoDaddy’s pricing strategy for its new products? The company is very transparent around experimenting with pricing strategy and bundles.
What is the percentage of customers that started with commerce intent vs the older cohorts opting in or adopting the OmniCommerce products?
How were customers impacted by GoDaddy’s rebranding, given you said you were involved in this? What positive aspects or weak points did you observe during the process?
What’s your outlook for GoDaddy’s net retention rate and churn? What does mitigating churn come down to? Is it product improvement and offering expansion, usability of the products or perhaps a lower price point vs customer service?
What is the most common reason GoDaddy experiences user churn? Could you compare the churn it experienced in initial adoption and usability vs a more legacy cohort or user?
How do you assess GoDaddy’s ability to gain market share upstream – more in the mid- and enterprise market – in the next couple of years, especially relative to Shopify, Squarespace and Wix?
How built-out would you say GoDaddy’s sales team is vs how much more progress might need to be made? You highlighted the need to develop a sales strategy.
How do you expect GoDaddy to win new business or increase revenue? Could it mostly win new business through direct sales over the next year or so, or could it grow more alongside some of its legacy SMB commerce customer base?
Are you expecting any impact from supply chain constraints on GoDaddy’s business? Might this impact budgets over the next year or so specifically? How might this affect the company’s target growth for its commerce segment?
Could you compare GoDaddy Payments to Wix Payments, highlighting any key similarities or points of differentiation between the two?
GoDaddy says the customer is saving 20% on average on transaction fees with GoDaddy Payments for online and in person compared to some of its peers. If you agree with this, why and how is it able to offer a lower fee than some of its competitors?
Are there any risks or uncertainties around future GMV growth you think we should monitor?
What’s your 3-5-year outlook for GoDaddy and its positioning? Is there anything about the broader business you’d like to highlight?
Do you think either GoDaddy, Wix or Squarespace will have a more positive revenue trajectory over the next 3-5 years? Could you comment on the future of the competitive landscape with these three players?
Do you have any concluding thoughts around GoDaddy and the broader domain and hosting market?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited