Go Daddy 2015 Annual Report Download - page 29

Table of Contents
Mobile devices are increasingly being used to access the Internet, and our cloud-based and mobile support products may not operate or be as effective when
accessed through these devices, which could harm our business.
We offer our products across a variety of operating systems and through the Internet. Historically, we designed our web-based products for use on a desktop
or laptop computer; however, mobile devices, such as smartphones and tablets, are increasingly being used as the primary means for accessing the Internet and
conducting e-commerce. We are dependent on the interoperability of our products with third-party mobile devices and mobile operating systems, as well as web
browsers we do not control. Any changes in such devices, systems or web browsers degrading the functionality of our products or give preferential treatment to
competitive products could adversely affect usage of our products. In the event our customers have difficulty accessing and using our products on mobile devices,
our customer growth, business and operating results could be adversely affected.
We have made significant investments in recent periods to support our growth strategy. These investments may not succeed. If we do not effectively manage
future growth, our operating results will be adversely affected.
We continue to increase the breadth and scope of our product offerings and operations. To support future growth, we must continue to improve our
information technology and financial infrastructure, operating and administrative systems and ability to effectively manage headcount, capital and processes. We
must also continue to increase the productivity of our existing employees and hire, train and manage new employees while maintaining our unique corporate
culture. If we fail to manage our growth or change in a manner failing to preserve the key aspects of our corporate culture, the quality of our platform, products and
Customer Care may suffer, which could negatively affect our brand and reputation and harm our ability to retain and attract customers and employees.
We have incurred, and will continue to incur, expenses relating to our investments in international operations and infrastructure, such as the expansion of our
offerings and marketing presence in India, Europe, Latin America and Asia; our targeted marketing spending to attract new customer groups, such as Web Pros and
customers in non-U.S. markets; and investments in software systems and additional data center resources to keep pace with the growth of our cloud infrastructure
and cloud-based product offerings. We have made significant investments in product development, corporate infrastructure and technology and development, and
intend to continue investing in the development of our products and infrastructure and our marketing and Customer Care teams.
We are likely to recognize the costs associated with these investments earlier than some of the anticipated benefits, and the return on these investments may
be lower or may develop more slowly than we expect. If we do not achieve the benefits anticipated from these investments, or if the achievement of these benefits
is delayed, our operating results may be adversely affected.
We have experienced rapid growth over the last several years, which has the potential to strain on our management, administrative, operational and financial
infrastructure. The scalability and flexibility of our infrastructure depends on the functionality and bandwidth of our data centers, peering sites and servers. The
significant growth in our total customers and the increase in the number of transactions we process have increased the amount of our stored customer data. Any
loss of data or disruption in our ability to provide our product offerings due to disruptions in our infrastructure or services could result in harm to our brand or
reputation. Moreover, as our customer base continues to grow and uses our platform for more complicated tasks, we will need to devote additional resources to
improve our infrastructure and continue to enhance its scalability and security. If we do not manage the growth of our business and operations effectively, the
quality of our platform and efficiency of our operations could suffer, which could harm our results of operations and business.
In January 2016, we selected a new enterprise resource planning system and expect to implement this new system by the end of 2017 . Until we implement a
new system, we may experience difficulties in managing our existing systems and processes, which could disrupt our operations and the management of our
finances. Our failure to improve our systems and processes, or their failure to operate in the intended manner, may result in our inability to manage the growth of
our business and to accurately forecast and report our results.
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