Go Daddy 2015 Annual Report Download - page 28

Table of Contents
The future growth of our business depends in significant part on increasing our international bookings. Our recent and continuing international expansion
efforts subject us to additional risks.
Bookings outside of the United States represented 26% , 25% and 24% of our totals for 2015 , 2014 and 2013 , respectively. In 2012, we began the process of
localizing our products in numerous markets, languages and currencies, expanding our systems to accept payments in forms common outside of the United States,
focusing our marketing efforts in numerous non-U.S. geographies, tailoring our Customer Care offerings to serve these markets, expanding our infrastructure in
various non-U.S. locations and establishing Customer Care operations in overseas locations. We intend to continue our international expansion efforts. As a result,
we must continue to hire and train experienced personnel to staff and manage our international expansion. Our international expansion efforts may be slow or
unsuccessful to the extent we experience difficulties in recruiting, training, managing and retaining qualified personnel with international experience, language
skills and cultural competencies in the geographic markets we target. Furthermore, as we continue to expand internationally, it may prove difficult to maintain our
corporate culture, which we believe has been critical to our success. In addition, we have limited experience operating in foreign jurisdictions. Conducting and
expanding international operations subjects us to new risks we have not generally faced in the United States, including the following:
• management, communication and integration problems resulting from language barriers, cultural differences and geographic dispersion of our
customers and personnel;
• the success of our efforts to localize and adapt our products for specific countries, including language translation of, and associated Customer Care
support for, our products;
• compliance with foreign laws, including laws regarding online disclaimers, advertising, liability of online service providers for activities of
customers especially with respect to hosted content and more stringent laws in foreign jurisdictions relating to consumer privacy and protection of
data collected from individuals and other third parties;
• accreditation and other regulatory requirements to do business and to provide domain name registration, web-hosting and other products in foreign
jurisdictions;
•greater difficulty in enforcing contracts, including our universal terms of service and other agreements;
• increased expenses incurred in establishing and maintaining office space and equipment for our international operations;
• greater costs and expenses associated with international marketing and operations;
• greater risk of unexpected changes in regulatory practices, tariffs and tax laws and treaties;
•different or lesser degrees of protection for our or our customers’ intellectual property and free speech rights in certain countries;
• increased exposure to foreign currency risks;
• increased risk of a failure of employees to comply with both U.S. and foreign laws, including export and antitrust regulations, anti-bribery regulations
and any trade regulations ensuring fair trade practices;
• heightened risk of unfair or corrupt business practices in certain geographies;
• the potential for political, social or economic unrest, terrorism, hostilities or war; and multiple and possibly overlapping tax regimes.
In addition, the expansion of our existing international operations and entry into additional international markets has required and will continue to require
significant management attention and financial resources. In particular, we have invested, and intend to continue to invest, in product marketing, infrastructure and
personnel to support our international expansion efforts. These increased marketing costs may increase our cost of acquiring international customers, which may
delay our ability to achieve profitability or reduce our profitability in the future. We may also face pressure to lower our prices in order to compete in emerging
markets, which could adversely affect revenue derived from our international operations. These and other factors associated with our international operations could
impair our growth prospects and adversely affect our business, operating results and financial condition.
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