Go Daddy 2015 Annual Report Download - page 35

Table of Contents
Our existing co-located data center agreements may not provide us with adequate time to transfer operations to a new facility in the event of early
termination. If we were required to move our equipment to a new facility without adequate time to plan and prepare for such migration, we would face significant
challenges due to the technical complexity, risk and high costs of the relocation. Any such migration could result in significant costs for us and may result in data
loss and significant downtime for a significant number of our customers which could damage our reputation, cause us to lose current and potential customers and
adversely affect our operating results and financial condition.
Undetected or unknown defects in our products could harm our business and future operating results.
The products we offer or develop, including our proprietary technology and technology provided by third parties, could contain undetected defects or errors.
The performance of our products could have unforeseen or unknown adverse effects on the networks over which they are delivered as well as, more broadly, on
Internet users and consumers and third-party applications and services utilizing our solutions. These adverse effects, defects and errors, and other performance
problems relating to our products could result in legal claims against us that harm our business and damage our reputation. The occurrence of any of the foregoing
could result in compromised customer data, loss of or delay in revenues, an increase in our annual refund rate, which has ranged from 6.9% to 7.2% of total
bookings from 2013 to 2015 , loss of market share, failure to achieve market acceptance, diversion of development resources, injury to our reputation or brand and
increased costs. In addition, while our terms of service specifically disclaim certain warranties, and contain limitations on our liability, courts may still hold us
liable for such claims if asserted against us.
Privacy concerns relating to our technology could damage our reputation and deter existing and new customers from using our products.
From time to time, concerns have been expressed about whether our products or processes compromise the privacy of customers and others. Concerns about
our practices with regard to the collection, use, disclosure or security of personally identifiable information, including payment card information, or other privacy
related matters, even if unfounded, could damage our reputation and adversely affect our operating results. In addition, as nearly all of our products are cloud-
based, the amount of data we store for our customers on our servers (including personally identifiable information) has been increasing. Any systems failure or
compromise of our security resulting in the release of our users’ or customers’ data could seriously limit the adoption of our product offerings, as well as harm our
reputation and brand and, therefore, our business. We expect to continue to expend significant resources to protect against security breaches. The risk that these
types of events could seriously harm our business is likely to increase as we expand the number of cloud-based products we offer and operate in more countries.
We are subject to privacy and data protection laws and regulations as well as contractual privacy and data protection obligations. Our failure to comply with
these or any future laws, regulations or obligations could subject us to sanctions and damages and could harm our reputation and business.
We are subject to a variety of laws and regulations, including regulation by various federal government agencies, including the U.S. Federal Trade
Commission (FTC) and state and local agencies. We collect personally identifiable information, including payment card information, and other data from our
current and prospective customers and others. The U.S. federal and various state and foreign governments have adopted or proposed limitations on, or requirements
regarding, the collection, distribution, use, security and storage of personally identifiable information of individuals, including payment card information, and the
FTC and many state attorneys general are applying federal and state consumer protection laws to impose standards on the online collection, use and dissemination
of data. Self-regulatory obligations, other industry standards, policies, and other legal obligations may apply to our collection, distribution, use, security or storage
of personally identifiable information or other data relating to individuals, including payment card information. These obligations may be interpreted and applied in
an inconsistent manner from one jurisdiction to another and may conflict with one another, other regulatory requirements or our internal practices. Any failure or
perceived failure by us to comply with U.S., E.U. or other foreign privacy or security laws, policies, industry standards or legal obligations or any security incident
resulting in the unauthorized access to, or acquisition, release or transfer of, personally identifiable information or other customer data, including payment card
information, may result in governmental enforcement actions, litigation, fines and penalties or adverse publicity and could cause our customers to lose trust in us,
which could have an adverse effect on our reputation and business.
We expect there will continue to be new proposed laws, regulations and industry standards concerning privacy, data protection and information security in
the United States, the European Union and other jurisdictions, and we cannot yet determine
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