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| Lastly, full year unlevered free cash flow grew 14% to $1.3 billion and free cash flow grew 12% to $1.1 billion, both exceeding our guide for the year and showing impressive normalized EBITDA to cash conversion of nearly one to one |
| In closing, as I look ahead at the rest of 2024, I am excited by our ability to drive margin improvement and growth in Applications and Commerce, which we expect together will result in impressive improvements in free cash flow per share |
| So, we expect very healthy growth |
| 2023 was a pivotal year for us and I am pleased with our financial and operational results |
| Obviously, we call things as we see them today, and we feel really good about where we are and how that momentum is carrying forward |
| We also drove 2023 normalized EBITDA margin ahead of our guidance as we balanced investment in growth and cost structure management |
| Full year normalized EBITDA margin increased approximately 200 basis points, resulting in a 12% increase in free cash flow and a 21% increase in free cash flow per share |
| In Q4, we drove 16% bookings growth for our high margin segment, Applications and Commerce segment and this momentum continued into January |
| Our focus on the combination of optimizing costs and driving growth in Applications and Commerce, has positioned our business well to exit 2024 with a normalized EBITDA margin of approximately 31% |
| We like the momentum |
| So, we're very happy with the products we're growing |
| So obviously that's driving goodness in the A&C segment |
| We also expanded our access to talent globally and together, these items benefited both our capital and operating expenses |
| As we shared last quarter, we continue to expect Q4, 2024 normalized EBITDA margin of approximately 31% with continued margin expansion in the out years, while also driving innovation, like you saw with our GoDaddy Airo experience |
| Additionally, the power of data from our GoDaddy software platform bolsters our ability to drive faster decision-making and is expected to benefit both our margin and revenue opportunities |
| Bifurcating the hosting business, the continuing GoDaddy hosting revenue remains a stable, strong cash generator with high retention |
| And maybe to add some of the data we have shared, our website products, so Websites + Marketing, Managed WordPress are our highest margin products and they're growing double-digits |
| This initiative primarily benefits our high margin Applications and Commerce segment, and we expect our Airo experience to drive this higher over time |
| Airo has also created new engagement surfaces allowing us to deliver automated customer experiences that we will continue to improve over time |
| What we've seen coming out of '23 and continuing into 2024 at the gross ads level is that consistent, strong demand that we've talked about all year and that continuing |
| The continued margin expansion was driven by the leverage gains we achieved in the second half of 2023 across all spend categories |
| This is particularly encouraging because significant customer experience changes like Airo typically take many months of iterative improvement to outperform the control group |
| On the big picture, our customers continue to be the micro businesses and they're resilient crew and definitely we see strong demand continuing to come in through the front door |
| Our goal for Airo is to help more customers discover more products and engage with them at higher rates, leading to even greater monetization opportunities |
| GMV is also continues to be really strong |
| We see an exciting path and have strong confidence in our ability to execute against our strategic priorities |
| Normalized EBITDA in Q4 grew 22% to $324 million, representing a 29.5% margin, and an expansion of nearly 400 basis points compared to Q4, 2022 |
| We are proud of our record of accomplishment of increasing margins on an absolute basis and compared to our own initial guidance over the last three years |
| Subscription bookings grew 200 basis points ahead of subscription revenue |
| Core Platform bookings increased 3% due to the strong fourth quarter performance in domains, offset by migration and divestiture headwinds in hosting |
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| And we're seeing through the divestitures, we are losing customers, but they are generally customers that were low intent customers |
| One is, you mentioned 100 basis point revenue headwind from some of those divestitures |
| So, we did a lot of work in 2023, and that caused 100 basis points headwinds, both in '23 and '24 |
| With that, during the fourth quarter, we reduced our combined technology and development and capital spending by 7% from our migrations, divestitures and restructuring efforts throughout 2023, as well as from reduced data center capital expenditures |
| On the -- move on to the legacy hosting, a couple of things there, right? We have about 100 basis points of headwind coming into the year related to our divestitures and migrations that we've done |
| We've talked about the headwinds related to some of the divestiture activity |
| So, there'll always be a little bit of a discrepancy between bookings and revenue related to that |
| Just to make sure, what we talked about is 16% is bookings, right? Revenue is always going to lag a little bit, like Mark said, and you'll see it show up, of course |
| The remainder of the portfolio decreased over the past several years and we have taken deliberate steps throughout 2023 to rationalize the business |
| We expect that our technology and development spend will continue to decline in absolute dollars in 2024 compared to 2023, as most of this work was completed in 2023 |
| I mean, is it 5% of your users using it? Or if there's any way to quantify in what you might think it might be by the end of the year or in sort of phase? And then the second question, kind of going back to the guidance and some of the headwinds, I think you had about 100 basis points in '23, guiding for about 124 with, I guess, abating in the second half |
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