Go Daddy 2015 Annual Report Download - page 30

Table of Contents
We may acquire other businesses or talent, which could require significant management attention, disrupt our business, dilute stockholder value and adversely
affect our operating results.
As part of our business strategy, we have in the past made, and may in the future make, acquisitions or investments in companies, talent, products and
technologies we believe will complement our business and address the needs of our customers. With respect to our recent acquisitions, we cannot ensure we will be
able to successfully integrate the acquired products, talent and technology or benefit from increased subscriptions and revenue. For example, we may be
unsuccessful in capturing the Web Pro market or in helping our customers attract new customers to their businesses from sites like Google, Yahoo!, Facebook and
Yelp. In the future, we may not be able to find suitable acquisition candidates, and we may not be able to complete such acquisitions on favorable terms, if at all. If
we do complete acquisitions, we may be unsuccessful in achieving the anticipated benefits of the acquisition and may fail to integrate the acquired business and
operations effectively. In addition, any future acquisitions we complete could be viewed negatively by our customers, investors and industry analysts.
We may have to pay cash, incur debt or issue equity securities to pay for future acquisitions, each of which could adversely affect our financial condition or
the value of our Class A common stock. Equity issuances in connection with potential future acquisitions may also result in dilution to our stockholders. In
addition, our future operating results may be impacted by performance earn-outs or contingent bonuses. Furthermore, acquisitions may involve contingent
liabilities, adverse tax consequences, additional equity-based compensation expense, adjustments for fair value of deferred revenue, the recording and subsequent
amortization of amounts related to certain purchased intangible assets and, if unsuccessful, impairment charges resulting from the write-off of goodwill or other
intangible assets associated with the acquisition, any of which could negatively impact our future results of operations.
In addition, if we are unsuccessful at integrating such acquisitions, or the operations or technologies associated with such acquisitions, into our company, the
revenue and operating results of the combined company could be adversely affected. We may fail to identify all of the problems, liabilities or other shortcomings
or challenges of an acquired company, including issues related to intellectual property, solution quality or architecture, regulatory compliance practices and
customer or sales channel issues. Any integration process may result in unforeseen operating difficulties and require significant time and resources, and we may
not be able to manage the process successfully. In particular, we may encounter difficulties assimilating or integrating the companies, solutions, technologies,
accounting systems, personnel or operations we acquire, particularly if the key personnel are geographically dispersed or choose not to work for us. We may also
experience difficulty in effectively integrating or preserving the different cultures and practices of the companies we acquire. Acquisitions may also disrupt our
core business, divert our resources and require significant management attention that would otherwise be available for development of our business. We may not
successfully evaluate or utilize the acquired technology, intellectual property or personnel, or accurately forecast the financial impact of an acquisition transaction,
including accounting charges. If we fail to properly evaluate, execute or integrate acquisitions or investments, the anticipated benefits may not be realized, we may
be exposed to unknown or unanticipated liabilities, and our business and prospects could be harmed.
If the rate of growth of small businesses and ventures is significantly lower than our estimates or if demand for our products does not meet expectations, our
ability to generate revenue and meet our financial targets could be adversely affected.
Although we expect continued demand from small businesses and ventures for our products, it is possible the rate of growth may not meet our expectations,
or the market may not grow , either of which would adversely affect our business. Our expectations for future revenue growth are based in part on assumptions
reflecting our industry knowledge and experience serving small businesses and ventures, as well as our assumptions regarding demographic shifts, growth in the
availability and capacity of Internet infrastructure internationally and the general economic climate. If any of these assumptions proves to be inaccurate, our
revenue growth could be significantly lower than expected.
Our ability to compete successfully depends on our ability to offer an integrated and comprehensive suite of products enabling our diverse base of customers
to start, grow and run their businesses. The success of our domains, hosting, presence and business application offerings is predicated on the assumption that an
online presence is, and will continue to be, an important factor in our customers’ abilities to establish, expand and manage their businesses quickly, easily and
affordably. If we are incorrect in this assumption, for example due to the introduction of a new technology or industry standard superseding the importance of an
online presence or renders our existing or future products obsolete, then our ability to retain existing customers and attract new customers could be adversely
affected, which could harm our ability to generate revenue and meet our financial targets.
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