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Table of Contents
Operating Activities
Our primary source of cash from operating activities has been cash collections from our customers. We expect cash inflows from operating activities to be
primarily affected by increases in total bookings. Our primary uses of cash from operating activities have been for domain registration costs paid to registries,
personnel costs, discretionary marketing and advertising costs, technology and development costs and interest payments. We expect cash outflows from operating
activities to be affected by the timing of payments we make to registries and increases in personnel and other operating costs as we continue to grow our business.
Net cash provided by operating activities increased $78.8 million from $180.6 million during 2014 to $259.4 million during 2015 , which includes $29.7
million of payments made in connection with the termination of certain agreements with the Sponsors and Bob Parsons following the completion of the IPO. This
increase was primarily due to a $30.9 million improvement in our operating loss, a $16.3 million decrease in interest payments resulting from the repayment of
debt following the IPO and the payment in 2014 of $17.2 million for prior period sales taxes.
Net cash provided by operating activities increased $27.3 million from $153.3 million during 2013 to $180.6 million during 2014 , primarily due to a $70.0
million improvement in our operating loss, partially offset by a $56.4 million decrease in cash resulting from net changes in working capital. The primary drivers
of the decrease in net changes from working capital were the payment of $17.2 million for prior period sales taxes in 2014 and increased payroll, employee benefit
and operating expense payments as a result of the growth in our business. Sales tax payments were made in jurisdictions in which we determined we have nexus
based on evolving tax regulations for periods before we began collecting sales taxes from customers. In July 2014, we began collecting sales taxes at the time of
sale from customers residing in jurisdictions in which we have nexus.
Investing Activities
Our investing activities primarily consist of strategic acquisitions and purchases of property and equipment related to growth in our data centers and to
support the overall growth in our business. We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures and the
strategic acquisition or other growth opportunities we decide to pursue.
Net cash used in investing activities increased $38.6 million from $107.3 million during 2014 to $145.9 million during 2015 . This increase was primarily
due to a $25.5 million increase in cash paid for business acquisitions and $ 23.5 million in purchases of intangible assets, partially offset by a $13.1 million
decrease in capital expenditures.
Net cash used in investing activities decreased $101.2 million from $208.5 million during 2013 to $107.3 million during 2014 , primarily due to a $116.1
million decrease in cash paid for business acquisitions, partially offset by a $15.8 million increase in capital expenditures.
Financing Activities
Our financing activities primarily consist of the receipt of proceeds from the IPO and from the issuance of long-term debt, payment of IPO costs, the
repayment of principal on long-term debt and stock option activity.
Net cash from financing activities increased $125.4 million from $29.7 million used in financing activities during 2014 to $95.7 million provided by
financing activities during 2015 . This increase was primarily due to the receipt of net IPO proceeds of $482.4 million in 2015 and distributions of $349.0 million
paid to Desert Newco's unit and option holders in 2014 . The increase was partially offset by additional repayments of long-term debt of $378.4 million (primarily
from debt repayments made with our IPO proceeds) and long-term debt borrowings of $338.8 million in 2014.
Net cash from financing activities decreased $120.8 million from cash provided by financing activities of $91.1 million during 2013 to cash used in financing
activities of $29.7 million during 2014 , primarily as a result of distributions of $349.0 million paid to Desert Newco's unit and options holders in 2014 , partially
offset by increased long-term debt borrowings of $238.8 million resulting from amendments to our credit facility.
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