A&C Bookings Growth vs Revenue Guidance
Q: Why doesn't strong A&C bookings growth translate into revenue guidance?
A: Despite 22% bookings growth in A&C in Q1 - , revenue recognition occurs over different periods, so the impact on revenue will take time to materialize. Additionally, headwinds from dispositions peaking in Q2 are expected to abate throughout the year. - Therefore, while they're excited about the bookings momentum, they believe lowering the low end of the guidance was appropriate. -

Pricing and Bundling Initiatives
Q: How much of A&C bookings growth is due to pricing and bundling, and what's the future scope?
A: The A&C bookings growth is driven by a combination of pricing and bundling initiatives. - Value-based pricing and bundling have not yet rolled out across all of A&C but are starting to. - They see significant runway, planning to apply this approach across the whole portfolio, expecting at least three years of benefit from these initiatives. -

Airo's Impact and Monetization
Q: What is Airo's impact on engagement and future revenue?
A: Airo is enhancing customer engagement, with significant increases in website attach rates and product discovery. - - They are currently in the discovery and engagement phase, with monetization to come later. - No contributions from Airo are yet included in bookings or revenue models. - They expect to test monetization methods, including Pay Walls, over the next couple of years. -

GoDaddy Payments and GPV Growth
Q: What's driving GoDaddy Payments adoption and GPV growth?
A: The biggest driver of GPV growth, which has reached an annualized $2 billion - , is converting existing base customers to GoDaddy Payments. - - They leverage strong customer relationships, offering a one-stop shop and best value pricing to encourage adoption. -

Margin Expansion Drivers
Q: What are the key drivers of margin expansion in your outlook?
A: Margin expansion is driven by three main factors: the tailwind from A&C growing at a higher profit point, access to more cost-effective global talent pools as the international base grows, and infrastructure simplification by reducing locations and increasing efficiency. -

Impact of Divestitures on Revenue
Q: How do divestitures impact revenue and customer count?
A: Divestitures are expected to create headwinds of about 100 basis points for the year, peaking in Q2 and abating thereafter. - While they affect revenue and customer counts, these are offset by attracting higher-intent customers and strong gross adds. - -

Aftermarket Domain Sales Growth
Q: What's driving aftermarket domain sales growth and expectations?
A: Aftermarket growth benefited from the return of larger transactions in Q1, with average transaction values up almost 20%. - However, these larger deals are unpredictable, and they continue to model the business for low single-digit growth, focusing on steady volume growth at the lower end. -

Pay Walls and Monetization Strategy
Q: Can you explain Pay Walls and their use in Airo?
A: Pay Walls in Airo interrupt the customer journey at points where significant value has been delivered, prompting them to upgrade to a paid plan to continue. - This allows for dynamic monetization of various features after customers engage with the free offerings. -

Annual Recurring Revenue (ARR) Growth
Q: What are your expectations for ARR growth?
A: ARR is expected to grow, trailing revenue due to its lagging nature. - They anticipate healthy ARPU growth over time, with subscription bookings projected to be 1 to 2 points ahead of revenue throughout the year. -

Macro Trends Impact
Q: What macro trends are you seeing, and how do they impact your business?
A: The macro environment is characterized by steadiness. - This stability supports strong gross customer adds and efficient marketing efforts, and while customers remain optimistic, steady macro conditions help maintain that optimism. -