Go Daddy 2015 Annual Report Download - page 26

Table of Contents
reliability and availability of our websites and servers for our corporate operations and infrastructure, as well as in the delivery of products to customers, are critical
to our reputation and our ability to attract and retain customers.
We are continually working to expand and enhance our website features, technology and network infrastructure and other technologies to accommodate
substantial increases in the volume of traffic on our godaddy.com and affiliated websites, the number of customer websites we host and our overall total customers.
We may be unsuccessful in these efforts, or we may be unable to project accurately the rate or timing of these increases. In the future, we may be required to
allocate resources, including spending substantial amounts, to build, purchase or lease data centers and equipment and upgrade our technology and network
infrastructure in order to handle increased customer traffic, as well as increased traffic to customer websites we host. We cannot predict whether we will be able to
add network capacity from third-party suppliers or otherwise as we require it. In addition, our network or our suppliers’ networks might be unable to achieve or
maintain data transmission capacity high enough to process orders or download data effectively in a timely manner. Our failure, or our suppliers’ failure, to achieve
or maintain high data transmission capacity could significantly reduce consumer demand for our products. Such reduced demand and resulting loss of traffic, cost
increases, or failure to accommodate new technologies could harm our business, revenue and financial condition.
Our systems, including those of our data centers and Customer Care operations, are also vulnerable to damage from fire, power loss, telecommunications
failures, computer viruses, physical and electronic break-ins and similar events. The property and business interruption insurance coverage we carry may not be
adequate to compensate us fully for losses that may occur.
Evolving technologies and resulting changes in customer behavior or customer practices may impact the value of and demand for domain names.
Historically, Internet users would typically navigate to a website by directly typing its domain name into a web browser or navigation bar. The domain name
serves as a branded, unique identifier not unlike a phone number or email address. People now use multiple methods in addition to direct navigation to access
websites. For example, people increasingly use search engines to find and access websites as an alternative to typing a website address directly into a web browser
navigation bar. People are also using social networking and microblogging sites more frequently to find and access websites. Further, as people continue to access
the Internet more frequently through applications on mobile devices, domain names become less prominent and their value may decline. These evolving
technologies and changes in customer behavior may have an adverse effect on our business and prospects.
We rely on our marketing efforts and channels to promote our brand and acquire new customers. These efforts may require significant expense and may not
be successful or cost-effective.
We use a variety of marketing channels to promote our brand, including online keyword search, sponsorships and celebrity endorsements, television, radio
and print advertising, email and social media marketing. If we lose access to one or more of these channels, such as online keyword search, because the costs of
advertising become prohibitively expensive or for other reasons, we may become unable to promote our brand effectively, which could limit our ability to grow our
business. Further, if our marketing activities fail to generate traffic to our website, attract customers and lead to new and renewal sales of our subscriptions at the
levels we anticipate, our business and operating results would be adversely affected. There can be no assurance our marketing efforts will succeed or be cost-
efficient, and if our customer acquisition costs increase, our business, operating results and financial performance could be adversely affected.
Our ability to increase sales of our products is highly dependent on the quality of our Customer Care. Our failure to provide high-quality Customer Care would
have an adverse effect on our business, brand and operating results.
Our Customer Care team has historically contributed significantly to our total bookings. In 2015 , 2014 , and 2013 we generated approximately 24% , 23 %
and 24% of our total bookings, respectively, from sales originating through our Customer Care team.
The majority of our current offerings are designed for customers who often self-identify as having limited to no technology skills. Our customers depend on
our Customer Care to assist them as they create, manage and grow their digital identities. After launching their sites and leveraging our product offerings,
customers depend on our Customer Care team to quickly resolve any issues relating to those offerings. Further, as we continue to broaden our portfolio of
solutions, increase the size of our customer base and increase the size of our solution deployments within our customers IT infrastructure, we must continue to
adapt our
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