Go Daddy 2015 Annual Report Download - page 32

Table of Contents
Our quarterly and annual operating results may be adversely affected due to a variety of factors, which could make our future results difficult to predict and
could cause our operating results to fall below investor or analyst expectations.
Our quarterly and annual operating results and key metrics have varied from period to period in the past, and we expect they may continue to fluctuate as a
result of a number of factors, many of which are outside of our control, including:
• our ability to attract new customers and retain existing customers;
• the timing and success of introductions of new products;
• changes in the growth rate of small businesses and ventures;
• changes in renewal rates for our subscriptions and our ability to sell additional products to existing customers;
• refunds to our customers could be higher than expected;
•the timing of revenue recognition relative to the recording of the related expense;
• any negative publicity or other actions which harm our brand;
• the timing of our marketing expenditures;
• the mix of products sold;
• our ability to maintain a high level of personalized Customer Care and resulting customer satisfaction;
• competition in the market for our products;
• our ability to expand internationally;
• changes in foreign currency exchange rates;
• rapid technological change, frequent new product introductions and evolving industry standards;
•systems, data center and Internet failures, breaches and service interruptions;
• changes in U.S. or foreign regulations that could impact one or more of our product offerings or changes to regulatory bodies, such as ICANN, as
well as increased regulation by governments or multi-governmental organizations, such as the International Telecommunications Union, a specialized
agency of the United Nations or the European Union, that could affect our business and our industry;
• a delay in the authorization of new top-level domains (TLDs) by ICANN or our ability to successfully on-board new TLDs which would impact the
breadth of our customer offerings;
• shortcomings in, or misinterpretations of, our metrics and data which cause us to fail to anticipate or identify market trends;
• terminations of, disputes with, or material changes to our relationships with third-party partners, including referral sources, product partners and
payment processors;
• reductions in the selling prices for our products;
• costs and integration issues associated with any acquisitions we may make;
• changes in legislation affecting our collection of indirect taxes both in the United States and in foreign jurisdictions;
• threatened or actual litigation; and
• loss of key employees.
Any one of the factors above, or the cumulative effect of some of the factors referred to above, may result in significant fluctuations in our quarterly or
annual operating results, including fluctuations in our key financial and operating metrics. This variability and unpredictability could result in our failing to meet
our revenue, bookings or operating results expectations or those of securities analysts or investors for any period. In addition, a significant percentage of our
operating expenses are fixed in nature and based on forecasted revenue and bookings trends. Accordingly, in the event of revenue or bookings shortfalls, we are
generally unable to mitigate the negative impact on operating results in the short term. If we fail to meet or exceed such
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