Go Daddy 2015 Annual Report Download - page 138

Table of Contents
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we have increased our total customers from 9.4 million as of December 31, 2011 to 13.8 million as of December 31,
2015.
• Our financial model. Our stable and predictable business model is driven by efficient customer acquisition, high
customer retention rates and increasing lifetime spend. 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%. We believe the breadth and depth of our product offerings and the high quality and
responsiveness of our Customer Care team builds strong relationships with our customers and are keys to our high
level of customer retention.
• Our people and our culture. We are a company whose people embody the grit and determination of our customers.
Our world-class engineers, scientists, designers, marketers and Customer Care specialists share a passion for
technology and its ability to change our customers’ lives. We value hard work, extraordinary effort, living
passionately, taking intelligent risks and working together toward successful customer outcomes. Our relentless
pursuit of doing right for our customers has been a crucial ingredient to our growth.
• Our scale. We have achieved significant scale in our business which enables us to efficiently acquire new
customers, serve our existing customers and continue to invest in growth.
• In 2015, we generated $1.9 billion in total bookings up from $1.1 billion in 2011, representing a CAGR, of
15%.
• In 2015, we had $1.6 billion of revenue up from $894.3 million in 2011, representing a CAGR of 16%.
• In the five years ended December 31, 2015, we invested to support our growth with $1.1 billion and
$764.1 million in technology and development expenses and marketing and advertising expenses, respectively.
Our Strategy—How We Grow
We are pursuing the following principal strategies to drive our business:
• Expand and innovate our product offerings. Our product innovation priorities include:
• Delivering the next generation of naming. The first generation of naming included a limited set of gTLDs,
such as .com and .net, and country code top-level domains (ccTLDs), such as .uk and .in. With over 299 million
existing domains registered, it may be increasingly difficult for customers to find the name best suiting their
needs. As a result, ICANN has authorized the introduction of more than 1,300 new gTLDs, which began in late
2013 and will continue over the next several years. These newly introduced gTLDs include names geared
toward professions (e.g. .photography), personal interests (e.g. .guru), and geographies (e.g. .london, .nyc
and .vegas) and are just plain fun (e.g. .ninja). Additionally, we believe there is great potential in the emerging
secondary market to match buyers to sellers who already own domains. In January 2016, we launched the
GoDaddy Investor mobile application to help investors watch and bid on domains at auction and stay on top of
their current bids, all from their mobile device. We continue to invest in search, discovery and recommendation
tools and transfer protocols for the combined markets of primary and secondary domains.
• Powering elegant and effortless presence. We continue to invest in tools, templates and technology to make the
process of building a professional looking mobile or desktop website simple and easy. Additionally, we are
investing in products helping our customers drive their customer acquisition efforts by managing their presence
across search engines, social networks and vertical marketplaces.
• Making the business of business easy. Our business applications range from domain-specific email and email
marketing to payment tools and help our customers grow their ventures. We intend to continue investing in the
breadth of our product offerings helping our customers connect with their customers and run their businesses.
• Win the Web Pros. We are investing in our end-to-end Web Pro offerings ranging from open APIs to our platform,
delegation products and administrative tools as well as dedicated Customer Care resources. Our acquisition of
Media Temple and launch of GoDaddy Pro further expanded our Web Pro offerings, bolstered our Web Pro-focused
Customer Care team and extended our reach into the Web Pro community.
• Go global. As of December 31, 2015, approximately 31% of our customers were located in international markets,
notably Canada, India and the United Kingdom. We began investing in the localization of our service offerings in