Go Daddy 2015 Annual Report Download - page 135

Table of Contents
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• As of December 31, 2015, we had more than 700,000 customers who each spent more than $500 a year.
• In each of the five years ended December 31, 2015, our customer retention rate exceeded 85% and our retention
rate for customers who had been with us for over three years was approximately 90%.
• In 2015, we generated $1.9 billion in total bookings, up 14.3% (or approximately 17.5% on a constant currency
basis) from $1.7 billion in 2014. In 2015, we had $1.6 billion of revenue, up 15.9% (or approximately 17.3% on a
constant currency basis) from $1.4 billion in 2014.
• As of December 31, 2015, we provided localized solutions in 37 countries, 44 currencies and 17 languages. For the
year ended December 31, 2015, 26% of our total bookings were attributable to customers outside of the United
States.
• Our highly-rated Customer Care team of more than 3,800 specialists is focused on providing high-quality,
personalized care. As a result of their ongoing dialogue with customers, our Customer Care team also drives
bookings and in 2015 generated approximately 24% of our total bookings.
• Our net loss was $120.4 million and $143.3 million in 2015 and 2014, respectively. We generated $337.4 million of
adjusted EBITDA in 2015, up from $271.5 million in 2014.
Our Market
Our customers represent a large and diverse market which we believe is largely underserved. According to the U.S. Small
Business Administration, there were approximately 28 million small businesses in 2012. Based on data from the 2012 U.S.
Census Bureau and the U.S. Small Business Administration, over 85% of small businesses have fewer than five employees and
approximately 23 million, or over 75% of, small businesses were non-employer firms. Furthermore, according to the International
Labor Organization Statistics Database there were more than 200 million people outside the United States identified as self-
employed in 2012. Moreover, the Kauffman Index of Entrepreneurial Activity report estimates that in 2015 there were
approximately 530,000 new business owners created each month in the United States. We believe our addressable market extends
beyond small businesses and includes individuals and organizations, such as universities, charities and hobbyists.
Despite the ubiquity and importance of the Internet to individual consumers, many small businesses and organizations have
remained offline given their limited resources and inadequate tools. We believe approximately 60% of small businesses do not
have a website. However, as proliferation of mobile devices blurs the online/offline distinction into an "always online" world,
having an impactful online presence is becoming a "must have" for small businesses worldwide.
What it means for small businesses and ventures to be online continues to evolve. Only a few years ago, an online presence
typically consisted of a simple and static website with basic information, perhaps supported by limited search engine marketing.
Today, having an effective online presence requires much more, including a content rich website viewable from any device;
presence on social media sites and an increasing number of horizontal and vertical marketplaces (e.g. Yelp and OpenTable);
branded email communication; online marketing; and Internet-enabled reservation and scheduling capabilities. In addition, back-
end activities such as invoicing, payment processing, accounting and tax preparation, which are typically separate point solutions,
can now increasingly be linked to the front-end.
The shift toward dynamic online presence for small business has been fueled by the emergence of simple—yet powerful—
cloud-based technologies that can easily be utilized by individuals with limited technical skills. Cloud technologies have helped
enable the integration of front and back-end activities. Cloud-based products, which can be "rented" on a monthly or yearly basis,
allow a business to more easily scale from a nascent idea to a thriving venture. The Parallels SMB Cloud Insights for Global 2014
report estimates the cloud market for small business was $62 billion in 2013, and will double by 2016, growing to $125 billion.
Our Customers
Our customers share common traits, such as tenacity and determination, yet their specific needs vary depending on the type
and stage of their ventures. They range from individuals who are thinking about starting a business to established ventures that are
up and running but need help attracting customers, growing their sales, managing their business or expanding their operations.
While our customers have differing degrees of resources and technical capabilities, they all share a desire to bring their ideas to
life. We call them GoGetters and they are united by a number of common characteristics: entrepreneurial spirit, strong work ethic
and, above all, passion for their ventures.