Go Daddy 2015 Annual Report Download - page 54

Table of Contents
also make it more difficult for stockholders to nominate directors for election to our board of directors and take other corporate actions.
Risks Relating to Owning Our Class A Common Stock
Our share price may be volatile, and you may be unable to sell your shares.
Technology stocks have historically experienced high levels of volatility. The trading price of our Class A common stock is likely to be highly volatile and
could be subject to wide fluctuations in response to various factors, some of which are beyond our control and may not be related to our operating performance.
These fluctuations could cause you to lose all or part of your investment in our common stock. Since shares of our Class A common stock were sold in our initial
public offering (IPO) in April 2015 at a price of $20.00 per share, the reported high and low closing sales prices of our Class A common stock have ranged from
$23.59 to $34.24 per share through February 26, 2016 . Factors that may cause the market price of our Class A common stock to fluctuate include:
•price and volume fluctuations in the overall stock market from time to time;
• significant volatility in the market price and trading volume of technology companies in general, and of companies in our industry;
• actual or anticipated changes in our results of operations or fluctuations in our operating results;
• whether our operating results meet the expectations of securities analysts or investors;
• changes in the expectations of investors or securities analysts;
•actual or anticipated developments in our competitors’ businesses or the competitive landscape generally;
• litigation involving us, our industry or both;
• regulatory developments in the United States, foreign countries or both;
• general economic conditions and trends;
•major catastrophic events;
• sales of large blocks of our stock; or
• departures of key personnel.
In addition, if the market for technology stocks or the stock market in general experiences a loss of investor confidence, the trading price of our Class A
common stock could decline for reasons unrelated to our business, operating results or financial condition. The trading price of our Class A common stock might
also decline in reaction to events affecting other companies in our industry even if these events do not directly affect us.
In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that
company. If our stock price is volatile, we may become the target of securities litigation. Securities litigation could result in substantial costs and divert our
management’s attention and resources from our business, and this could have a material adverse effect on our business, operating results and financial condition.
Sales of outstanding shares of our Class A common stock into the market in the future could cause the market price of our Class A common stock to drop
significantly.
If certain of our existing stockholders sell, or indicate intent to sell, substantial amounts of our Class A common stock in the public market after the market
standoff and other legal restrictions on resale lapse, the trading price of our Class A common stock could decline.
Pursuant to the stockholder agreement, each of the Sponsors and Bob Parsons have agreed, subject to certain limited exceptions, not to transfer, sell,
exchange, assign, pledge, hypothecate, convey or otherwise dispose of or encumber any shares of our Class A common stock (including shares of Class A common
stock issuable upon the exchange of LLC Units) during the three-year period following our IPO without the consent of each of KKR and Silver Lake, for so long as
each of KKR and Silver
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