Go Daddy 2015 Annual Report Download - page 42

Table of Contents
compensation. We may not be successful in attracting, assimilating or retaining qualified personnel to fulfill our current or future needs. Also, to the extent we hire
personnel from competitors, we may be subject to allegations that they have been improperly solicited or divulged proprietary or other confidential information.
The requirements of being a public company may strain our resources.
As a public company, we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the Exchange Act), the Sarbanes-
Oxley Act of 2002 (the Sarbanes-Oxley Act) and the listing standards of the New York Stock Exchange (the NYSE). We expect the requirements of these rules
and regulations will continue to increase our legal, accounting and financial compliance costs, make some activities more difficult, time-consuming and costly, and
place significant strain on our personnel, systems and resources. Management’s attention may be diverted from other business concerns, which could adversely
affect our business and operating results.
The Sarbanes-Oxley Act requires, among other things, us to maintain effective disclosure controls and procedures and internal control over financial
reporting. We continue to develop and refine our disclosure controls and other procedures designed to ensure that information required to be disclosed by us in the
reports we will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that information
required to be disclosed in reports under the Exchange Act is accumulated and communicated to our principal executive and financial officers. We also continue to
improve our internal control over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal
control over financial reporting, we have expended, and anticipate we will continue to expend, significant resources, including legal and accounting-related costs
and significant management oversight.
We are not currently required to comply with the SEC rules that implement Section 404 of the Sarbanes-Oxley Act, and are therefore not required to make a
formal assessment of the effectiveness of our internal control over financial reporting for that purpose. As a public company, we are required to provide an annual
management report on, and have our independent auditor attest to, the effectiveness of our internal control over financial reporting commencing with our
December 31, 2016 annual report on Form 10-K.
If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate
financial statements or comply with applicable regulations could be impaired.
Our current internal controls and any new controls we implement may become inadequate because of changes in conditions in our business or information
technology systems or changes in the applicable laws, regulations and standards. Any failure to design or maintain effective controls, or any difficulties
encountered in their implementation or improvement, could harm our operating results, cause us to fail to meet our reporting obligations or result in a restatement
of our financial statements for prior periods. Not fully recognizing, understanding or testing the state of or changes in our internal control environment could also
adversely affect the results of management evaluations and independent registered public accounting firm audits of our internal control over financial reporting,
about which we will eventually be required to include in our periodic reports filed with the SEC. Ineffective disclosure controls and procedures and internal control
over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on
the trading price of our Class A common stock. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on the
NYSE in the future.
Adverse economic conditions in the United States and international economies may adversely impact our business and operating results.
Unfavorable general economic conditions, such as a recession or economic slowdown in the United States or in one or more of our other major markets,
could adversely affect demand for our products. The recent national and global economic downturn affected many sectors of the economy and resulted in, among
other things, declines in overall economic growth, consumer and corporate confidence and spending, increases in unemployment rates and uncertainty about
economic stability. Changing macroeconomic conditions may affect our business in a number of ways, making it difficult to accurately forecast and plan our future
business activities. In particular, spending patterns of small businesses and ventures are difficult to predict and are sensitive to the general economic climate, the
economic outlook specific to small businesses and ventures, the then-current level of profitability experienced by small businesses and ventures and overall
consumer confidence. Our products may be considered discretionary by many of our current and potential customers. As a result, people considering whether to
purchase or renew
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