GoDaddy Inc. (GDDY) Earnings Call Transcript & Summary

Awesome. Well, I think we can get it started. Thanks, everyone, for being here at the day 1 of Morgan Stanley TMT Conference. My name is Katie Keyser. I'm on the software equity research team here at Morgan Stanley and very excited to be kicking the day off -- the conference off with GoDaddy. We have Christie Masoner here from the IR team stepping in for Mark. Thanks a lot for being here.

Yes, of course. Thanks for having me.

Awesome. So a quick disclosure before we get started. For important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures.

Awesome. So a lot to dig into on the GoDaddy story here. Maybe we can start at a high level, the kind of topic that's on everyone's minds, framing the AI landscape for GoDaddy. We've heard you talk a lot about kind of evolving Airo from that generative AI experience into more of the agentic operating system for your small business customers. At the same time, right, investors somewhat worried about how AI could disrupt the traditional kind of domain of creation value chain. So maybe just how you frame the risk versus opportunity for GoDaddy here, where you see the company kind of most uniquely positioned versus some of those disruptive forces?

Yes. Thanks for the question. We're really excited and really bullish about Airo.ai. As you mentioned, it's evolving that generative AI experience into a more agentic experience. And what this is doing, what it's accomplishing for micro small businesses is a set of agents that are carrying out tasks on behalf of the micro small businesses. So the core jobs to be done for micro small businesses remain the same. They're looking to validate their business idea. They're looking to do -- get the right domain, get the right website for their business. And we expect the evolution of the Internet is going to continually change as it has for the last 30 years. So we think that this tool is going to continue to go into the direction of how the -- or these tools and capabilities of how the evolution of the Internet will go. We're really excited about it and the customers that are starting to use it, we're seeing a little bit more tech-savvy users that are going into it day in and day out. And we're getting really positive feedback about how it helps them get their jobs to be done that they need to do to run their micro small business because the core like I was saying, the core goals of micro small businesses is they want to establish their identity and a digital presence. They want to get to a place where they can reach their own customers, market to their customers, sell to their customers, accept payments from those customers. So all of those core competencies are going to change even if the tools and interfaces change along the way.

Awesome. We'll definitely dig into those pieces as we go through the conversation. I wanted to shift to kind of Q4 results quickly. One of the key discussion points being the impact from the introduction of the promotional pricing that you guys launched and kind of want to take it from 3 different levels. Maybe first, just kind of what the strategic rationale was, what you're seeing on the kind of cohort quality of the customers that came in through that promotion and then a little bit on kind of the financial impact. So maybe first, if you can just walk us through what the strategic rationale for introducing the promotional pricing was at this time, just a kind of deliberate effort to expand the top of funnel? Or was there any competitive kind of macro dynamics that led to that decision?

Yes. So like you said, it was about widening the aperture of the customers that we can reach and getting some of those customers that were interested more in a 1-year offer. And so what we were able to find is -- well, first, the way that we were launching it, there are three important things to understand. So first, of course, is the price. We did a $4.99 offer and second, how is that purchase path of those customers? How are they being shepherded through our front of site? And third, what is the marketing might that we're putting behind these offers. At the end of the year, we turned all of these on in full force, and we got a really strong response. So what we found is that there was extraordinarily strong demand that we are reaching for this offer. And thus you asked about the cohort quality. The cohort quality of customers that came in under this path was pretty similar to other 1-year offers. And what I mean by that, the five things that we measure is, first, what's the traffic coming in? What is the conversion of this traffic as it's coming in? What is the attach of the additional products that they're getting? What's the activation? And those four things are really predictive on the fifth and most important thing of renewal. And so what we're seeing on the cohort quality is those first four metrics are just as strong as -- almost as strong as our other 1-year cohorts. And with our long history of having extremely strong customer retention and upsell capabilities, we're really excited and we have the confidence that this cohort will perform just as well as other historical cohorts. So it really was about widening the aperture to get more high-intent customers. And that's what we're seeing is that the intent is measured by the attach and attach quality, and we're seeing really strong metrics on that front.

Got it. So kind of no change to the strategic focus of that $500 ARPU kind of customer.

Exactly. Yes, that high-intent customer, what we talked about or you're calling out is customers who spend $500 or more with us continues to grow really impressively, and we still see strength in those customers.

Got it. And then maybe a little bit on the financial impacts of the go-to-market initiative, weighed on bookings a little bit more than revenue just based on kind of contract dynamics, but is impacting both core and A&C. So maybe how should we think about the drag from kind of annual contract mix? And then just kind of outline why a domain-focused promotional flow is kind of going into the A&C side of the business?

Yes. So we're leaning on our core strengths of being the leader of domains, right? GoDaddy is the largest domain provider in the world. And leaning on that strength, we're able to put this offer out there. And like you said, it does have a bookings impact. But what's important to understand is that it's not have or it has a very marginal impact on our revenue, right? These customers like we were just talking about, have really strong metrics of showing all of the markers and signals that they will have really strong renewal. So then you get -- you just get the bookings at a different time at their renewal as opposed to getting all 3-year book -- all years of the bookings at that first purchase path. So the bookings are the only thing that's really impacted right now with a slight and modest impact to revenue right now.

Got it. And so that's kind of why we're guiding to bookings to trail revenue in Q1, but to kind of catch up.

Yes. This offer we launched at the end of 2025. And then we started to do some tweaking on the amount of marketing might behind it and the purchase path into January and February. So you'll still see these dynamics play out in Q1.

Got it. Awesome. That's helpful. I wanted to shift to kind of the product side for a little bit. Meaningful progress being made around Airo, kind of evolving that from the agentic or the generative experience into something more agentic. I think it's 25 agents live as of Q4, more on the way. Maybe talk us through what fundamentally changes about the customer experience with Airo.ai relative to the original Airo through kind of core GoDaddy.com? And then how are the two initiatives working in tandem across the company?

Sure. So the original or legacy Airo experience is about shepherding customers through all of the products and experiences that GoDaddy has to offer for micro small businesses and presenting for them a one-stop shop solution that helps them to build out their entire online presence. Airo.ai is more of the Agentic experience. So how can we do things on behalf of our customers in a way that is automating tasks for them and doing things for them in the background when they're off doing other things like maybe helping their customers or restocking the shelves of their store or going out to farmers' market, depending on what their products and services are. So that Agentic experience is really helpful for our customers to be able to do a lot more automation with the things that they're trying to do. We're really excited about it as a multi-agentic experience. It's one of the only ones, if not the only multi-agentic experience designed for micro small businesses to be able to help micro small businesses and tasks that they need to do.

Right. And so what are some of those key use cases that you're running with the Airo.ai agents today? Any kind of areas of the portfolio seeing the most traction kind of early on with this initiative?

Yes. It kind of back for what we were talking about earlier. So it's helping micro small businesses validate their business idea and get the right domain, get their presence started and helping to connect with their customers, to have conversations with their customers and to help even things like marketing research or understanding what is the area that my small business is competing in and what are the things that are important for me to understand about other local businesses in my area so I can have better research about how to do things like price my own products or connect with my own customers. So all the things that micro small businesses are typically they don't have a lot of experience of running businesses. When you think about solopreneurs or people that don't have a lot of staff, they don't have a lot of experience doing these things. But GoDaddy with nearly 30 years of existence helping this micro small business, we have so much insights and so much data about how micro small businesses operate and what is the next best step that they need to be doing, and we can suggest that. And by the way, when you're conversing and having these natural language interface conversations with these agents, they can detect and understand when the micro small business or the solopreneur is feeling stuck. And we can have human-guided moments built in the loop automatically to jump in and say, looks like you're having a little bit of difficulty. Let's jump in and help you, and you can talk to Care Guides. And that's one of the core competitive strengths, of course, of GoDaddy is that we have those capabilities to be able to jump in and really partner with micro small businesses to help shepherd them to success.

More about automating those workflows that they're already doing on the day-to-day. Awesome. And then the other interesting kind of product announcement that came out of Q4 was kind of the impending upgrade to the Websites + Marketing product, more of that melding the traditional web builder with AI-powered chat. Maybe some new customers already being opted into the experience there. Any early kind of green shoots? Any early data points you can share about how customers are receiving that experience?

Yes. The customers that are using it, we're getting a lot of really good feedback from it, and we'll roll this out sort of slowly as customers are being opted in, like you mentioned. Like with anything, we do a lot of experimentation and understanding what is the right path for how to introduce these types of things to existing customers. And the new customers, of course, it's a little bit easier to put them down the path that makes sense. But you can start to, at the beginning, split the traffic so that you can understand the engagement and how customers are using the products and over time, get more and more customers to opt into that experience. We're pretty excited about it. This product, we were expecting to have launched it much later in the year, but the development of it was happened a lot faster than we were anticipating. So we're starting to already roll this product out imminently.

Got it. And I think last year, there were a lot of compelling stats about Airo accelerating website attach. So maybe what are any early expectations of how Airo.ai can kind of further inflect web attach with this new kind of up-leveled Websites + Marketing product?

Yes. Airo, like we were talking about earlier, does do that shepherding of surfacing all of the rest of the products of the GoDaddy portfolio, and that helps to drive and we've seen results of driving higher average order size, higher attach, higher retention and higher renewal. Airo.ai is a little bit different from the perspective that it's more of an Agentic experience that is a natural language Agentic experience. And the customers that have been gravitating towards that now are a little bit more tech savvy. And so they're the customers that are more interested in having those types of Agentic experiences. So over time, we expect that, that will continue to march forward and to drive more and more adoption. Airo.ai, the way that it's monetized is slightly different than how Airo itself, as you know, is not a SKU. It's just shepherding customers into greater attach. Airo.ai is more as customers are using the products, they're getting surfaced with paywalls as they're advancing into the different types of things that they're trying to carry out.

Right. And to that point, right, we've kind of noted that we're not assuming any contribution from pricing and bundling kind of related to the websites during this transition. So is '26, like do you think that's kind of an upside driver to '26? Do you think you'll start to see some of that benefit flow through more materially beyond '26? Kind of how do you think about timing when you'll see that monetization come through?

Like you said, we haven't built that into our 2026 guide. So we'll have more to share as time goes on.

Got it. Thought I'd try. And then just shifting to ANS for a little bit, introduced the Agentic Name Service kind of as that foundational infrastructure layer for the open Internet. I guess just broadly, what's the strategic vision for ANS in the context of your kind of broader domain infrastructure that you guys have been doing for so many years?

Yes. We're really excited about ANS. So this is an extension of the DNS and SSL framework that helps to build verified identity into how we are using the Internet. And I think we can all agree that the Agentic experience worldwide is going to start getting proliferated everywhere, right? There's going to be lots of agents that are going to be roaming about the Internet. And it's really important, I think, for the end users of these agents to know and understand the provenance of where these agents come from. Like is this a real or a rogue agent? And ANS is intended to say, let's have an organization that says a mechanism to organize these agents to say, this is the identity of this agent. It is who it says it is. And we're able to leverage the power of DNS, which is proven infrastructure that has been powering the Internet for the last 30 years. It has instant -- it's a very elegant way to have instant adoption and instant ways for all of the partners that we're talking to and some have already been announced to help build out this infrastructure. And so we have a proof of concept out there. Everyone is pretty excited about it because everyone understands the need for organization of agents and really proving that they are who they say they are. And GoDaddy is uniquely positioned to do this because of our strength with the DNS. That being said, it is an open standard. It's not something that GoDaddy specifically owns. We're proposing this saying, this is the right way for the Internet to evolve. This is how everybody should want to have this open Internet.

Right. And two follow-ups there. I guess on the monetization kind of path, comparing it to domain registration economics, maybe are there any parallels that you can help investors draw on how monetization followed the DNS adoption curve in the past so we can think about how ANS might transpire?

Yes. It would be similar to how you're thinking about you would register your domain and renew it annually. That being said, the agents can have a one-to-many relationship. So you could have many agents tied to a specific domain. So then in those types of instances, you would -- what we would be thinking about is having maybe a tiered approach to how the pricing works. So it wouldn't necessarily be the same pricing for someone who's putting hundreds of agents in the same domain versus one that's putting one agent per domain.

Yes. So an opportunity to more deeply monetize.

That's right. Also like more of like -- you can think about it similar to like a seat model of like something like our e-mail where you can have a subscription to e-mail, but as you hire more employees, you would have more e-mail seats for that subscription.

Got it. And then recently announced the partnership with MuleSoft here, characterized it as kind of a validation point of the framework. I guess what other milestones should investors be watching out for? Is it kind of more partnerships to kind of get excited about the materiality of the ANS framework?

Yes. The adoption is obviously what we're focused on, getting widespread adoption of this technology and this protocol. And because of the simple and elegant way that this can just be turned on overnight, we think that it's really compelling for how to get these agents like I was talking about organized earlier. And to your point, MuleSoft did announce an integration with our ANS. And so we think that getting more and more players to adopt this technology is the most important first step, right? We need to get wide-scale adoption for -- going forward into the future.

Awesome. And then on pricing and bundling, I wanted to hit on that. It's been a multiyear growth driver for GoDaddy, continues to be a multiyear growth driver. I guess as we look into '26, kind of how are you seeing that strategy evolving? Maybe talk to the amount of runway you see to go back into the existing installed base and kind of utilize pricing strategies. Does anything change just because of kind of how dynamic the competitive environment is? How are you thinking about pricing as a lever more broadly?

Sure. So pricing and bundling, you can think of it as more of an evergreen type of initiative. There's going to always be opportunities for us to understand our customer base even better than we already do and for our customers, be able to bundle together a set of products that make sense for what they're trying to accomplish. And so when we can -- and these happen a lot in the renewal path as well as the new customers are coming in to. And when we can surface for customers and understand how their usage patterns are working and what type of value they're getting from these products, we can continue to offer more and different bundles year in and year out. And as we think about the cohorts of customers that we're serving, we have customers and cohorts that are customers that look similar to each other and what we can do is offer the right bundle for that type of customer, which would be a different bundle for this other type of customer and so on and so forth. So pricing and bundling continues to be a really strong initiative for the business that continues to show really good growth and pretty much the -- one of the core engines of the growth that you see.

Got it. And how does the pricing and bundling strategy converge with kind of what we were talking about earlier with paywalls via Airo.ai? Is there -- like are these two pricing strategies that are existing alongside each other? Is there any risk of maybe convert cannibalizing, right, like what you can be monetizing between the two? Just how are you thinking about those two pricing initiatives running kind of together?

Yes. I would think of it slightly separate from the perspective that the pricing and bundling is about surfacing for customers, what is the right bundle of products that you should have in your build for what the stage or the journey that you as a micro business are in? What are the things that you're trying to accomplish? And what are the different attached products that make sense for what you're trying to do. On the Airo.ai and paywalls, that's for how you're using that particular product and how you're engaging with that particular component of the product.

Awesome. Helpful. I wanted to spend a couple of minutes on customer count and kind of ARPU dynamics. Emphasize the focus on those high-intent customers and spending $500 annually. Pretty compelling mixed that is now 10% of your customer base, growing low double digits in fiscal '25. So into '26, maybe how are you thinking about the trade-off between customer account growth and ARPU expansion? And then maybe just when we think about how that mix is trending, any data points we can put around what level of mix that can ultimately inflect to in the overall customer base in the next couple of years?

Yes. So both are important, right? Having ARPU expansion and customer growth are important, either of which that we guide to. However, we're really focused on getting customers into -- first and foremost, getting those high-intent customers and getting them to areas in which we can drive better attach of the things that they're getting in their bundle. The reason we focus so much on this is because we have so much data that shows us that when customers are in a second product, their retention is significantly higher than our already strong 85% customer retention. And when we get customers into that third product, they're near perfect retention. And so when we talk about that $500 line of demarcation, it's sort of a demonstration of showing this customer likely has 2 to 3 products with GoDaddy. So this is showing you that these are really strong near-perfect customer retention, and that's why we drive that $500 customer or that's why we talk a lot about it, I should say, because it is a demonstration of our efforts working with getting that higher attach, that higher intent customer. And so we are essentially focused on and that kind of talks a little bit about both the growth and the ARPU expansion there.

Right. And I think that's the debate, right? Like if the retention and the ARPU is so strong, do you really need to be so focused on the actual customer count number. But obviously, we benefit from having just that broader pool of customers to drive to those higher-value cohorts. And so I guess like coming back to the promotional activity, like does that -- how does that play into what you're thinking about customer count? Should that be driving positive customer count growth in '26? And then just kind of how do you balance that tension between customer quality and then kind of meeting that growing top of funnel?

I think it's really important to call out that the low price for that offer does not mean low intent. Intent is measured like I was talking about earlier by attach. And so that $4.99 offer was showing extraordinarily strong attach that was almost as good as every other 1-year cohort that we've ever had. So we have a demonstrated track record of not just being able to cross-sell into additional products with our customer base, but also have those customers renew. So when we did this offer, what it does is it broadens the aperture for the customers that we can get. Not every customer is interested in having 3 years as their starting point. A lot of customers are interested in having a 1 year as a starting point. And we're perfectly happy with broadening the aperture to get those that are interested in 1 year and those that are interested in 3-year offers. So I don't know that they're in as direct conflict as what the question might suggest. I think that it's additive. It's not an or, it's an and.

Right. Got it. That makes sense. Just broadening that funnel.

And we did see the only thing I'll add to that, too, is we did see a lot of really strong take for that offer, right? And so we did see -- we started at the end of the year. But even going into the beginning of the year, we're seeing such strong adoption or strong take of that offer that it's kind of to that point of, yes, that new customers are coming in to take on that offer.

Right. Got it. I wanted to kind of run through the two revenue segments quickly and kind of see how you're thinking about those into '26. I mean A&C has definitely been the growth baton growing kind of in that mid-teens range. You're guiding to low double digits for next year. I guess we've kind of heard that there's a number of drivers that aren't being embedded within the guide, whether it's Airo.ai cohort monetization, pricing and bundling around the new Websites + Marketing product. I guess kind of what are those key growth drivers that you're thinking about for A&C into '26? And if there's anything you can kind of give texture around the bookings trajectory just because kind of comps are less of a big deal than they have been in the past. So anything on kind of A&C growth trajectory would be great.

Yes. Importantly, we do have pricing and bundling on A&C, just not on that one product. But there is various other products that exist within A&C that are subject to pricing and bundling. So we have an offer out there for Managed WordPress for hosting that is doing really well and various other ones, too, for our e-mail and productivity offering as well. It's just not for that specific piece of Websites + Marketing. So that helps to drive it. And then, of course, Airo itself as being the shepherd of getting customers to that second product third product. And that's typically, an A&C is usually the highest beneficiary of that Airo shepherding customers through those additional product suite. We're pretty excited about the -- obviously, A&C is that high-margin part of our business that continues to grow quite nicely. And it helps customers have more of that fulsome one-stop shop experience. And again, when you think about the micro small business and the tools and services that they need to have that one-stop shop, it's a very compelling value proposition for them to have a single dashboard to manage all of these things and A&C is usually the products where they're getting everything else on top of that. So we're pretty bullish about A&C. We're pretty excited about the forward trajectory for it.

Awesome. And then in the core kind of growing or guiding for a little bit of a slowdown from '25 to '26. There's a number of dynamics at play there, right? We have expiration of the DotCO contract, not really embedding aftermarket in there just based on the volatility of that business and then some of the impacts from the promotional pricing that we talked about at the top. I guess, is low single-digit growth, is that the right way to kind of structurally think about the core platform? Or is this more of a kind of one-off year just because of some of those headwinds?

Well, we've been guiding to low single digits for core platform for a very long time. It's been outperforming. So we have -- and the biggest outperformer you called out was aftermarket. So when we think about aftermarket, we have been guiding to low single digits and the large part of aftermarket, which, by the way, is a validation of the strength of the domains and the value of that asset in and of itself. When we think about aftermarket grew 12% last year, and we expect it to be low single digits. That is 9 points of outperformance -- 9 to 10 points of outperformance for aftermarket. That is a tough thing to grow on top of. So we don't have that built into the guide. But I think it's important to understand and acknowledge we do expect that large aftermarket deals are going to happen. We just don't put them into our guide because of the volatility like you mentioned. And there's also the DotCO expiration that you talked about, too. So we ended that contract in October of last year. And so we still have about 50 bps of headwind from the expiration of being the registry for DotCO. We are still the registrar for DotCO. So that part of the business remains intact.

Perfect. Moving to margins for a little bit before we open it up for questions. The pace of margin expansion has been very impressive, right? I think 1,000 basis points over the past 5 years, 32% in 2025, and you're guiding for '26 to kind of exceed that Investor Day target of 33%. Maybe first, you can kind of outline the key initiatives that have gotten you there. Where do you find the most kind of OpEx leverage? How does mix play into it? Talk a little bit about the journey.

Thank you for noticing. You're right, 1,000 bps of margin expansion is no small feat, and we've been very successful there. The top 3 areas that have gotten that margin expansion for us is infrastructure simplification. So we did a lot of work in the last couple of years to get our platform onto a single place where we can have sort of all of the data and all of the platform in an area where we can leverage our data a lot better, leverage our offerings to customers a lot easier. The second one is from having the access to global talent. So we're able to -- even with the power of having a strengthened platform, we can -- and the power of AI, we can give better insights to new employees as they're coming into the business. And so it helps us to leverage talent in other areas that it doesn't have to necessarily be U.S.-based. And then the third, like you mentioned, it's the product mix, the A&C tailwind. So A&C is growing a lot faster than core, which has the lower margin. And so the segment margin for A&C is just significantly higher than core platform. So all 3 of those play into the -- what we have enjoyed as really strong margin expansion and what we expect to continue to enjoy. So we're -- like you said, we've guided to 33% for our Investor Day target 2 years ago. We're on pace to exceed that for this year.

Yes. And I think that gets that kind of the follow-up question, right? How much room is left to go on margins just because what you've achieved thus far. When you look forward, like does anything change about your approach? Or is it kind of continuing to drive forward that similar playbook?

Yes, that plus operational efficiency, and there is efficiency and leverage to be found in AI, but we'll tell you more about beyond '26 when we guide there.

Awesome. Any questions in the room before I keep going? Alright.

Nothing specific to call out. I think that when we think about who our customers are, those micro small businesses and the core competencies that they need, the competitive advantages that GoDaddy enjoys is having the strongest brand awareness in the space. So that drives a lot of traffic to the GoDaddy.com website. We have over 60% of traffic that is direct navigation to GoDaddy. So that is really strong of having that powerful brand. And then having the scale that GoDaddy has enables us to operate efficiently globally all over the world. And then the third competitive advantage is the products that we have that are seamlessly built to have that one-stop shop that micro small businesses need. And I think not to be underappreciated, of course, is the Care model that GoDaddy has so that we can partner with our customers to help and that keeps that retention and renewal really strong. And by the way, Care drives 9% of our bookings, which on a $5.4 billion business, 9% of bookings is really powerful. So the competitive landscape in the Internet space has always been intense, right? Everybody is competing in the Internet space. So there isn't anything to call out specifically of really different about the competitive landscape. It's always been a really intense competitive environment. I think it's extraordinarily strong. Like I was just mentioning that -- and so the question in case it didn't get caught on Mike is how important is the brand in an Agentic world. Because micro small businesses know GoDaddy is the place to go to get online and especially if I want to be running a micro small business and have a partner that powers all of the things that I need to do, customers start out with going to godaddy.com directly. We get more than 60% of our traffic because micro small businesses know GoDaddy is the place to go. So brand is extraordinarily important. We are a B2B business, but we operate as B2C. And our end user in micro small businesses needs our tools and capability. Brand awareness is extraordinarily important.

Maybe just a couple of questions. Maybe could you contextualize kind of the rate at which you're attaching websites on to your customers and how that's kind of been changing as you brought out new products? And then secondly, I think you mentioned when you've used Airo.ai, the customers are the more tech-savvy customers so far. How do you think about the marketing strategy to bring that such that more customers are comfortable with understanding what the product is and driving that attach as well?

Sure. The way we've talked about attach is the amount of our customer base that has more than one product with us. So greater than 50% of our customers have at least a second product with us, which is pretty remarkable when you think about GoDaddy having a scale of over 20 million customers. And that number continues to go up. And on top of that, the velocity of getting customers to that second product attach has been going up. So customers are getting to that second product 30% faster. And to your question about Airo.ai and how do you market that, that's a constantly evolving engine and something that we're extraordinarily experienced in almost 30 years of operating in this business and on the Internet. So the ways in which we reach out to customers, of course, all the traditional ways that you would expect for new customers, right? You're doing things like YouTube, you're doing direct marketing channels, direct targeting, that type of stuff. There is also like over-the-top type of advertising that you do for even like TV advertisement. But existing customers, it's different. The motion is different because you can have direct conversations with those customers. And so when we have the relationship that GoDaddy has with micro small businesses, that helps to drive even to the earlier point of when we said that Care driving 9% of bookings. Those are happening through empathetic conversations that we have with existing customers that drives additional cross-sell and attach. So the marketing and the way that we get these other products in front of existing customers happens to those types of channels as well.

Awesome. If I could just squeeze in one more on capital allocation. You guys have been heavy deployers of the buyback. Should we expect that to continue going forward? And then does anything change about kind of your view on M&A just because there's kind of also some dislocation in external assets as well?

Yes. You're bringing up a really important point. GoDaddy has an extraordinarily strong balance sheet. And we have a lot of opportunities because of the strong cash generation that we have, that we have a lot of options. And we get asked a lot about being at the table for M&A. Our criteria for M&A is the same, right? It needs to strategically fit. It needs to financially make sense, and it needs to be something that we can integrate into the platform. We have done a lot of work with simplifying our tech stack and having any sort of acquisition that would be difficult to integrate would be not preferred, right? And by the way, we continue to drive so much innovation and launching more and different products internally that, that too raises the bar for what makes sense strategically for us to purchase. That said, you're right, we have been really strong deployers of share buybacks. In fact, in 2025, 100% of our free cash flow was deployed through cash -- or sorry, through stock buybacks. And so I think that probably it will end on our strategy is the same.

Awesome. That brings us to our time. Thanks so much, Christie.

Yes. Thanks for having me. And Mark sends his apologies. He got very sick last night. So I'm filling in on a pinch. So thank you for your grace.

Awesome.