What changed in this filing

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Item 1. Business

2022-02-17 compared with 2021-02-19 · 255 added, 215 removed, 250 unchanged (65% of the section changed)

GoDaddy is a global leader in serving a large market of everyday entrepreneurs, delivering simple, easy-to-use products, and outcome-driven, personalized guidance to small businesses, individuals, organizations, developers, designers and domain investors.

Our vision is to radically shift the global economy toward independent entrepreneurial ventures.

Our mission is to empower entrepreneurs everywhere, making opportunity more inclusive for all.

We champion everyday entrepreneurs by empowering them with sage guidance set in seamlessly intuitive experiences to name, create, grow and manage their ventures.

We do this all while activating the exponential power of our community at global scale to deliver profitable revenue growth.

We are passionate about our mission, and we recognize that the opportunity for entrepreneurs is changing.

When GoDaddy began, the entrepreneurial journey was simpler:

entrepreneurs needed our help to name, create, grow and manage their ventures online.

Over time, the evolution of e-commerce, social media and consumer expectations of their online and in-person experiences has changed the entrepreneur's journey.

GoDaddy is uniquely positioned to help our customers navigate this complexity.

We champion everyday entrepreneurs by empowering them with sage guidance set in seamlessly intuitive experiences to create and protect their digital identity, establish and maintain a ubiquitous presence online and participate in the world of connected commerce.

We do all of this while activating the exponential power of our community at a global scale to deliver profitable revenue growth.

Our 21.2 million customers are passionate, everyday entrepreneurs with vibrant ideas, who are determined to make their way in the world and to transform their ideas into something meaningful.

We are a leading provider of cloud-based solutions, delivering simple, easy-to-use products, and outcome-driven, personalized guidance to small businesses, individuals, organizations, developers, designers and domain investors, enabling our customers to name their venture, build their website, establish and manage their online marketing, sell their products and services and get branded email.

This often starts with the most intimate of brand considerations—their domain name—and expands through our website building, hosting, social media, security, productivity and other services offerings.

As our customers' entrepreneurial needs evolve, we provide applications and access to relevant third-party products and platforms, helping them connect to their customers and manage and grow their businesses.

Our product offerings continue to evolve to meet the needs of our customers, and through the recent additions of GoDaddy Registry and Poynt, we now offer a high-performance back-end registry technology platform and a suite of payment systems, including point-of-sale systems.

What it means to be online has evolved from having a static website to a mobile-ready, responsive website integrated with social channels, search engines, reputation platforms and e-commerce marketplaces.

Our customers need to integrate dynamic information across all of the places they engage with their audiences, including things like appointment availability, retail inventory, digital subscriptions and social media presence.

Our services are designed to meet and attract customers in all phases of their journey.

Wherever their journey begins, whether with a domain, a physical store or on a social media platform, we are there to enable them to create content, build their website, establish and manage their online marketing, sell their products and services, syndicate marketplaces online and offline, connect social media and manage their businesses with branded email, productivity solutions and website security.

Our customers often start with the most intimate of brand considerations, their identity, which we provide through our domain services.

As their entrepreneurial needs evolve, we help our customers manage and grow their businesses and connect with their customers through our expanded service offerings and access to relevant third-party products and platforms, including website building and hosting, marketplace syndication, social media and bio site management, security, business products and email and other services.

Recognizing that consumer expectations and behaviors are quickly changing, we evolved our product and service offerings to provide a high-performance back-end registry technology platform and an integrated suite of payment systems and point-of-sale hardware and software to seamlessly manage online and offline commerce.

What it means to have an online presence has evolved to having a connected digital identity, ubiquitous presence and connected commerce that includes responsive websites integrated with social channels, search engines and e-commerce marketplaces connected to offline commerce marketplaces.

Our customers need to integrate dynamic information everywhere they engage with their audiences, including customer touchpoints such as appointment availability, retail inventory, digital subscriptions and social media.

At GoDaddy, we believe our customers should have both great technology and great customer support.

Engaging with our customers in a proactive, consultative way through personalized guidance via phone and digital experiences helps them knock down the technology hurdles they face.

Through the thousands of conversations we have with our customers every day, we receive valuable feedback enabling us to continually evolve our products and solutions and respond to their changing needs.

Engaging with our customers in a proactive, consultative way through personalized guidance via phone and digital experiences sets them up to succeed.

Through the thousands of daily conversations we have with our customers, we gather valuable feedback enabling us to continually evolve our products and solutions and respond to their changing needs.

Our people and unique culture have been integral to our success.

We live by the same principles that enable our customers' ideas to survive and thrive:

hard work, perseverance, conviction, an obsession with customer satisfaction and a belief that no one else can do it better.

We take responsibility for driving successful outcomes which we believe has been a key factor in enabling our customer and revenue growth.

We believe we have one of the most recognized Internet brands in the U.S.

and our international awareness continues to rapidly increase as we have entered into new markets.

We live by the same principles that enable our customers' ideas to survive and thrive, including owning outcomes, building value, joining forces and working courageously.

We take responsibility for delivering successful outcomes which we believe is a key factor in driving our customer and revenue growth.

We also believe we have one of the most recognized Internet brands in the U.S., and our international awareness continues to rapidly increase as we grow.

Our stable and predictable business model is driven by efficient customer acquisition, high customer retention rates and increasing lifetime spend.

In each of the five years ended December 31, 2020, our customer retention rate exceeded 85%, and in 2020, our retention rate for customers who had been with us for over three years was approximately 93%.

Additionally, as of December 31, 2020, we had 1.4 million customers who each spent more than $500 a year.

We believe the breadth and depth of our product offerings and the high-quality guidance and responsiveness of our GoDaddy Guides builds strong customer relationships and are key to our high customer retention rate.

In 2020, we generated $3,776 million in total bookings, up 11.0% from $3,401 million in 2019, and we generated $3,317 million of revenue, up 11.0% from $2,988 million in 2019.

In each of the five years ended December 31, 2021, our customer retention rate exceeded 85%, and in 2021, our retention rate for customers who had been with us for over three years was more than 93%.

Additionally, in 2021, we had approximately 1.5 million customers who each spent more than $500 a year on our product offerings.

We believe the breadth and depth of our product offerings and the high-quality guidance and responsiveness from GoDaddy Guides has and continues to build strong customer relationships leading to our high customer retention rates.

In 2021, we generated $3,816 million of revenue, up 15.0% from $3,317 million in 2020, and we generated $4,232 million in total bookings, up 12.1% from $3,776 million in 2020.

Our Customers and Solutions

We built GoDaddy to serve our customers by providing elegant, easy-to-use cloud-based products on a single technology platform wrapped with personalized guidance.

We built GoDaddy to serve our customers by providing simple, easy-to-use cloud-based products on a single technology platform wrapped with personalized guidance.

Our Customers

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Independents, Partners, Domain Registrars and Investors, other Registrars and Corporate Domain Portfolio owners.

While the products we provide to these populations overlap, we also seek to address the meaningful differences in their journeys, what they value, their ultimate goals and how they communicate with the rest of the world.

Our largest population is Independents, which are vastly micro-businesses and non-commercial endeavors.

Independents have an entrepreneurial spirit, strong work ethic and, above all, passion for their ideas, yet their specific needs vary depending on the type and stage of their ideas.

Independents range from individuals who have an idea and those thinking about starting a business, to established ventures needing help attracting customers, growing their sales, managing their presence or expanding their operations.

While these customer populations tend to utilize many of the same GoDaddy product offerings, there are meaningful differences in their journeys, what they value, their goals and how they communicate with the rest of the world and we aim to establish and provide solutions that address these differences.

Our largest customer population, Independents, consists of mostly micro-businesses and noncommercial endeavors.

Independents have an entrepreneurial spirit, strong work ethic and, above all, passion for their ideas, yet their specific needs vary depending on the type of their ideas and the phase of their journey.

Independents range from individuals who have an initial business idea and those thinking about starting a business, to established ventures needing help attracting customers, growing their sales, managing their online presence or expanding their operations.

Most Independents have fewer than five employees and most self-identify as having little to no technology or design skills.

They need our help to create a unique and secure digital identity, especially the more technical aspects of their presence.

While our customers have differing degrees of resources and technical capabilities, they all share a desire to find tools to help them bring their ideas to life, enhance connections with their audience and find new customers.

Our second largest population is our Partners, who are website designers and developers building websites on behalf of businesses and non-commercial organizations.

We estimate that half of all website builds occur through a third party, such as our Partners, on a do-it-for-you basis.

Our Partners are often freelancers, moonlighters or part of small website design agencies and often have website design as one of multiple streams of income.

Our Partners generally have more technical acumen and look for tools that provide greater amounts of flexibility, such as the WordPress content management system (CMS).

While Partners have a need for technical depth and flexibility, they also benefit from our simplicity and guidance as tools to increase their throughput and maximize the use of their time, including client-management tools.

We help our Partners in a number of ways beyond our product suite and services, including tools for Partners to help them save time, make money and exceed client expectations.

These customers need our help to create a unique and secure digital identity, especially with the more technical aspects of their online presence.

Although our customers have differing degrees of resources and technical capabilities, they all share a desire to find tools to help them bring their ideas to life, enhance connections with their audience and provide a seamless experience for both existing and new customers.

Our second largest customer population, Partners, are website designers and developers who build websites on behalf of businesses and noncommercial organizations.

We estimate that half of all global website builds occur through a third party, such as our Partners, on a do-it-for-you basis.

Our Partners are often freelancers, moonlighters or teams within website design agencies that often have website design as one of multiple streams of income.

Our Partners generally have more technical acumen and look for tools that provide greater amounts of flexibility, such as our WordPress content management system (CMS).

Although Partners have a need for technical depth and flexibility, they also benefit from our simplicity and guidance as tools to increase their throughput and maximize the use of their time.

We help our Partners in a number of ways beyond our product suite and services, including providing tools to help them save time, make money and exceed client expectations.

These client management applications make it easier for designers and developers to manage their clients' websites at any host, or on GoDaddy products such as Managed WordPress.

Partners can easily manage their overall business with capabilities such as client billing, administrative access and shopping features, making it easier to buy and manage multiple products for their clients, as well as enhanced technical support and discounts for reselling GoDaddy products.

With our products and services, Partners can easily manage their overall business with capabilities such as client billing, administrative access and shopping features, making it easier for them to buy and manage multiple products for their clients, as well as make use of enhanced technical support and discounts for reselling GoDaddy products.

We support a variety of control panels and content management tools favored by Partners including cPanel, Plesk, Drupal, Joomla and more.

As one of the largest global hosts of WordPress sites, many of our recent investments have focused on extending our reach into the WordPress community.

Our third largest population is Domain Registrars and Investors.

As one of the largest global hosts of WordPress sites, many of our recent investments, including our acquisition of Pagely, a managed WordPress hosting solution, in November 2021, have focused on extending our reach into the WordPress community.

Our third largest customer population is Domain Registrars and Investors.

Domain registrars are organizations that have their own domain registration offerings, such as Amazon Web Services (AWS), but who use our domain registration and management platform.

These commercial arrangements provide for strategic relationships with many key platforms, as well as enable further scale of our domain registration technology and insights.

Domain investors are individuals and organizations who manage a portfolio of registered domains for the purpose of selling via secondary markets.

These investors bring a unique and valuable resource to our business in the form of liquidity and the ability to help our other populations (Independents and Partners) successfully find the name they prefer.

These commercial arrangements provide for strategic relationships with many key platforms, and enable further scale of our domain registration technology and insights.

Domain investors are individuals or organizations who manage a portfolio of registered domains for the purpose of selling via secondary markets.

We also serve other Registrars and Corporate Domain Portfolio owners.

We serve registrars through our registry business (GoDaddy Registry), which provides wholesale generic top level domains (gTLDs) and country-code top level domains (ccTLDs) for registrars to sell to the end customer.

These top-level domains (TLDs) provide shorter and better naming alternatives to a .com domain that more closely represent the name of customers' ideas, businesses and brands.

We also provide a fully managed registry platform for other registry operators.

We manage the full technology and operating stack at scale for over 200 TLDs including some of the largest brands in the world.

Corporate Domain Portfolio owners are organizations that maintain and manage a large portfolio of domain names, including general and international domains.

These customers are looking for the most powerful, secure and intuitive technology to streamline their processes, unparalleled industry experience and expertise to navigate the complexities of managing a corporate portfolio, and a focused and dedicated team that can provide committed support with the highest levels of security, service and domain management.

Our Solutions

We have designed and developed an extensive set of easy-to-use cloud-based technology products enabling our customers to establish a digital presence, connect with their customers and manage their ventures.

We understand our customers' needs vary depending on the type of customer and stage of their idea, which is why we offer our products both independently and bundled as suites of integrated products designed for specific activities.

Crucial to our product philosophy is to provide value well in excess of the price we charge (known as consumer surplus), which often puts our products in a position of strength on functionality and at an affordable cost.

Our domain name registration products enable us to engage customers at the initial stage of establishing a digital identity and often is an on-ramp for our other products.

We have designed and developed an extensive set of easy-to-use cloud-based technology products enabling our customers to establish a digital identity, connect with their customers across multiple social platforms and online marketplaces and deliver a seamless customer experience in a connected commerce world.

We understand that our customers' needs vary depending on their type and the stage of their idea, which is why we offer our products both independently and bundled as suites of integrated products designed for specific uses.

Crucial to our product philosophy is to provide value well in excess of the price we charge, which often puts our products in a position of strength on functionality while at an affordable cost.

Our domain name registration products enable us to engage customers at the initial stage of establishing a digital identity and often are an on-ramp for our other products.

We believe our hosting and presence and business applications products significantly improve our value proposition to customers, increase our revenue and margin growth opportunities, can serve as starting points for our customer relationships and improve customer retention.

We have made significant investments in the localization of our service offerings, as 45% of our customers are located in international markets (notably Canada, India, the United Kingdom (U.K.) and Australia).

Recognizing our customers' need for cost-effective e-commerce solutions, we acquired Poynt (now known as GoDaddy Payments) in February 2021 and launched our connected commerce offering in September 2021.

We believe our payments solutions enable our customers to quickly and easily participate in the digital economy with a seamless transition to offline marketplaces, and position us to expand into new markets and increase our revenue and margin growth opportunities.

We have also made significant investments in the localization of our service offerings, as 45% of our customers are located in international markets (notably the United Kingdom, Canada, Germany, India and Australia).

And, while not a standalone product, our GoDaddy Guides consist of approximately 5,900 specialists worldwide who are available 24/7/365 and provide care to customers who have different levels of technical sophistication.

Every great idea needs a great name and GoDaddy is the leading global naming service.

Staking a claim with a domain name is an integral part of establishing an idea and presence online.

Staking a claim on digital identity with a domain name is an integral part of establishing a concept and presence online.

When inspiration strikes, we are there to provide our customers with high-quality search, discovery and recommendation tools as well as the broadest selection of domains to help them find the right name for their idea.

Securing a domain is a key component to creating a complete digital identity and our domain products often serve as the starting point in our customer relationships.

We are the global market leader in domain name registration, with more than 82 million domains under management as of December 31, 2020 and, based on information reported in VeriSign's Domain Name Industry Brief, we held over 22% of the approximately 371 million domain names registered worldwide as of September 30, 2020.

We are a global market leader in domain name registration, with more than 84 million domains under management as of December 31, 2021 and, based on information reported in VeriSign's Domain Name Industry Brief, we held over 23% of the approximately 365 million domain names registered worldwide as of September 30, 2021.

As of December 31, 2021, approximately 89% of our customers had purchased a domain from us.

In 2021, 2020 and 2019, we generated approximately 47%, 46% and 45% of our total revenue, respectively, from sales of our domain products.

In addition, GoDaddy Registry provides a high-performance back-end registry technology platform with a portfolio of top-level domains including .biz, .co, .in, .nyc, and .us.

In addition, GoDaddy Registry provides a high-performance back-end registry technology platform with a portfolio of TLDs including .biz, .co, .in, .nyc, and .us.

Our primary domains product offerings are:

Primary Registrations .

Using our website or mobile application, we offer customers the ability to search for and register available domain names with the relevant registry.

Our inventory for primary registrations is defined by the number of top-level domains (TLDs) we offer.

As of December 31, 2020, 412 different generic TLDs (gTLDs), such as .com, .net and .org, and 56 different country code TLDs (ccTLDs), such as .de, .ca, .in and .jp., were available for purchase through GoDaddy.

Since 2013, hundreds of new gTLDs have been launched, making it easier for companies and individuals to find and register new, easy-to-remember domain names tailored to their ideas, industry or interests.

Using our website or mobile application, we offer customers the ability to search for and register available domain names with the applicable registry.

Our inventory for primary registrations is defined by the number TLDs we offer.

As of December 31, 2021, 419 different generic TLDs, such as .com, .net and .org, and 57 different country code TLDs, such as .de, .ca, .in and .jp., were available for purchase through GoDaddy.

Since 2013, hundreds of new gTLDs have been launched through ICANN's "new gTLD program" initiated in 2012 (Expansion Program), making it easier for companies and individuals to find and register new, easy-to-remember domain names tailored to their ideas, industry or interests.

ccTLDs are important to our international expansion efforts as we have found international customers often prefer the ccTLD for the country or geographic market in which they operate.

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Aftermarket .

We operate one of the world's largest domain aftermarkets, which processes aftermarket, or secondary, domain name sales.

Our aftermarket platform is designed to enable the seamless purchase and sale of an already registered domain name through an online auction, an offer and counter-offer transaction or a "buy now" transaction.

We maintain a portfolio of more than 1.1 million domains, providing a diverse inventory available to our customers.

Our GoDaddy Investor mobile application helps investors watch and bid on domains at auction and stay on top of their current bids, all from their mobile devices.

We operate a large domain aftermarket platform, which processes aftermarket, or secondary, domain name sales.

Our aftermarket platform is designed to enable the seamless purchase and sale of previously registered domain names through an online auction, an offer and counter offer transaction or a "buy now" transaction.

We maintain a portfolio of more than 1.2 million previously registered domains, providing a diverse inventory available to our customers.

Our GoDaddy Investor mobile application helps investors watch and bid on domains at auction and stay on top of their current bids from their mobile devices.

We operate a cross-registrar network that automates transaction execution across registrars thereby reducing the time required to complete a transaction.

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In addition, where permissible, privacy features are included at no cost with every domain registered with GoDaddy.

Domain names with this privacy feature are registered on an “unlisted” basis to help protect personal information, deter domain-related spam, and allow our customers to confidentially secure a domain for an unannounced product, service or idea.

Domain names with these privacy features are registered on an "unlisted" basis to help protect personal information, deter domain-related spam, and allow our customers to confidentially secure a domain for an unannounced product, service or idea.

GoDaddy Registry is a world-leading provider of domain name registry services.

GoDaddy registry operates more than 200 TLDs including country-code TLDs, such as .

us and .co, city TLDs such as .nyc and .sy, generic TLDs such as .Club and .Buzz, and branded TLDs such as .Chase and .Fox.

Our integrated registry solutions provide policy and operational support, and domain marketing, sales and strategic planning.

We also provide back-end registry services supporting more than 215 TLDs.

Hosting and Presence

Bringing an idea to life online requires a presence.

GoDaddy Websites + Marketing, Managed WordPress hosting and other GoDaddy offerings enable anyone to create an elegant website or e-commerce enabled online store, for both desktop and mobile, regardless of technical skill.

Google) to social media (e.g.

Facebook) to vertical marketplaces (e.g.

Yelp), all from one location.

more technically-sophisticated web designers, developers and customers, we provide high-performance, flexible hosting and security products that can be used with a variety of open source design tools as well as Managed WordPress.

GoDaddy Websites + Marketing, Managed WordPress hosting, GoDaddy Studio (formerly Over) and other GoDaddy offerings are a part of a customer's ubiquitous presence that enable anyone to create a simple, easy-to-use website or e-commerce enabled online store, for both desktop and mobile, with minimal technical skill.

Our products, powered by a unified cloud platform, enable our customers to get found online by helping to enhance the information on their website and extending their website and its content to where they need to be, from search engine results (e.g., Google) to social media (e.g., Meta (the parent company of Facebook, Instagram and WhatsApp)) to vertical marketplaces (e.g., Yelp), all from one location.

For more technically sophisticated web designers, developers and customers, we provide high-performance, flexible hosting and security products that can be used with a variety of open source design tools as well as Managed WordPress.

We design these solutions to be easy to use, effective, reliable, flexible and at a great value.

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We operate, maintain and support shared website hosting in our owned and operated data centers and our leased co-located data centers using either Linux or Windows operating systems.

We currently offer several tiers of shared website hosting plans to suit the needs and resources of our customers, a majority of which use industry standard cPanel or Parallels Plesk control panels.

We also bundle our hosting plans with a variety of applications and products such as web analytics, SSL certificates and WordPress.

We currently offer several tiers of website hosting plans to suit the needs and resources of our customers, a majority of which use industry standard cPanel or Parallels Plesk control panels.

We also bundle our hosting plans with a variety of applications and products such as web analytics, Secure Sockets Layer (SSL) certificates and WordPress.

WordPress is the most used content management application on our shared hosting platform.

Website Hosting on Virtual Private Servers and Virtual Dedicated Servers .

Our broad range of virtual private server (VPS) and virtual dedicated server offerings allows our customers to select the server configuration best suited for their applications, requirements and growth.

Our virtual private servers provide customers with a single virtual machine running on a single bare metal server that is running multiple other virtual machines for other customers.

Our VPS product is designed to meet the requirements of customers with a need for greater control, more advanced technical capabilities and higher performance than that offered by our shared hosting plans.

Our customers have the ability to tailor their virtual dedicated server plan based on a range of performance, storage, bandwidth and operating system needs.

Our broad range of virtual private server (VPS) and virtual dedicated server (VDS) offerings, which run on single bare metal servers, allow our customers to select the server configuration best suited for their applications, requirements and growth.

Our VPS solutions provide our customers with a single virtual machine which runs multiple other virtual machines for other customers.

Our VPS is designed for customers who need greater control, more advanced technical capabilities and higher performance than that offered by our shared hosting plans.

Our VDS solutions offer our customers high-performance server options with isolated resources to run mission-critical applications where latency and uptime matters.

Our customers can tailor their VPS or VDS plans based on a range of performance, storage, bandwidth and operating system needs.

Managed Hosting .

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We also offer other managed environments that span across our VPS and dedicated products like Joomla, Drupal and Magento and apps like Gallery.

In addition to managed hosting plans tailored to our customers' needs, we also offer expert services, which provide additional support services.

Our security product portfolio is a comprehensive suite of tools designed to help secure our customers' online presence.

The portfolio includes (i) PKI and SSL Certificates to help ensure information is secure between browsers and servers through encryption;

(ii) the use of a CDN to improve a website's performance;

(iii) a proprietary WAF to keep customers' websites safe from hackers;

(iv) continuous monitoring providing the security state of customers' online presence at all times;

(v) and a skilled team of security professionals providing incident responses in the event of a disruption in service.

The portfolio includes (i) public key infrastructure (PKI) and SSL certificates to help ensure information is secure between browsers and servers through encryption;

(ii) the use of a content delivery network (CDN) to improve a website's performance;

(iii) a proprietary web application firewall (WAF) to help keep customers' websites safe from hackers;

(iv) continuous malware scanning and site cleanups;

and (v) a skilled team of security professionals to provide incident responses in the event of a disruption in service.

Our primary presence products are:

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We offer a variety of plans, with pricing dependent on business and marketing features.

With each of these plans, customers have access to vertically targeted professional designs which can be further customized using our editor by adding intent-driven sections, photos, videos or text.

Our designs cover a wide range of categories with professionally written content for small businesses, organizations, families, weddings and other ideas.

Our websites and our tools are all designed to work great on mobile devices, with a focus on performance, which is critical for websites to appear in search engine rankings.

Our Websites + Marketing product includes online appointments and online store capabilities allowing customers to transact business directly on their websites, and is optimized for mobile shopping and secure checkout via credit card, Apple Pay, Google Pay, Square or PayPal.

Our online store allows customers to manage inventory and shipping, while online appointments manages staff availability and helps remind customers of appointments.

Both are integrated into our social and email marketing tools, to help customers generate more business.

With each of these plans, customers have access to industry-targeted professional design templates, which can be further customized using our editor by adding intent-driven sections, photos, videos or text.

Our design templates cover a wide range of categories with professionally written content for small businesses, organizations, families, weddings and other ideas.

Our websites and tools are all designed to work seamlessly on mobile devices, with a focus on performance, to enable websites to appear in search engine rankings.

Our Websites + Marketing product line includes a range of marketing tools and services designed to help businesses acquire and engage customers and create content.

These capabilities are available in an integrated offering with our website and commerce tools, or as a stand-alone for customers using other website content-management systems.

The tools are designed for busy customers who may lack experience with online marketing, focusing on ease of use, mobile experience and

delivering business results.

For example, Over, a mobile application we offer, allows our customers to grow their brands by easily creating impactful visual content for any platform online.

The tools are designed for busy customers who may lack experience with online marketing, focusing on ease of use, mobile experience and delivering business results.

For example, our mobile application, GoDaddy Studio (formerly Over), allows our customers to grow their brands by easily creating impactful visual content for almost any platform online.

Search Engine Optimization helps our customers get their websites found on major search sites using a simple step-by-step wizard with targeted recommendations on which search phrases are most likely to drive traffic to a customer's site.

Business listings capabilities bring business information to where customers are looking, including Facebook and Google My Business.

Business listings capabilities bring business information to where customers are looking, including Meta (the parent company of Facebook, Instagram and WhatsApp) and Google My Business.

Email marketing lets people build targeted campaigns, either from scratch or using website or commerce content.

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GoDaddy Social provides customers with a complete "do-it-for-me" service for managing engagement on the most popular social networks.

This service combines dedicated teams of branding experts – photographers, writers, designers, marketers – with proprietary technology to manage activity on Facebook, Instagram, Twitter and Yelp, among others, to help them acquire new customers and build stronger relationships with existing customers.

This service combines dedicated teams of branding experts – photographers, writers, designers, marketers – with proprietary technology to manage activity on Meta (the parent company of Facebook, Instagram and WhatsApp), Twitter and Yelp, among others, to help our customers acquire new customers and build stronger relationships with their existing customers.

Business Applications

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We offer fully-supported Microsoft Office 365 accounts that are easy to set up and use with our customers' domains.

We offer Microsoft Office 365 in multiple plans ranging from email with calendar and contacts connected to a custom domain to a full suite of productivity tools, including file sharing and full desktop versions of Microsoft productivity applications, including Outlook, Word, Excel and PowerPoint.

For customers wanting to protect their email data, we offer an email backup service, and for customers needing to comply with regulatory requirements, we offer email add-on services such as HIPAA-enabled email, encryption services (in partnership with ProofPoint), archiving services (in partnership with Barracuda) and advanced e-mail security.

We help make Microsoft Office 365 installation easy, allowing customers to get up and running in minutes, including "do-it-for-me" migrations services to move customers' existing email data to Office 365 accounts

We help make Microsoft Office 365 installation easy, allowing customers to get up and running in minutes, including "do-it-for-me" migration services to move customers' existing email data to Office 365 accounts.

Email Accounts .

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The pricing of these plans depends on the customer's desired amount of storage and number of email addresses.

All of our email accounts are advertising-free and include security functionality designed to provide protection from spam, viruses and other forms of online fraud, such as phishing.

All of our email accounts are ad-free and include security functionality designed to provide protection from spam, viruses and other forms of online fraud, such as phishing.

Email Marketing .

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Customers can easily create and send newsletters, targeted advertising campaigns, promotions and surveys as well as connect email campaigns with their social media networks and track the results of campaigns.

We provide Internet-based telephone services that can be accessed with either IP phones, traditional local or cellular telephone services.

In 2017, we launched our SmartLine plan, which includes a virtual number phone and mobile application, enabling customers to have two numbers on one phone to separate their business communications from personal communications.

All of our plans allow customers to make and receive phone calls, send/receive text and MMS messages using their SmartLine number and chosen caller ID.

In addition, SmartLine offers customers a range of minutes and texts, a local or toll-free number and a mobile application to manage the service, as well as voicemail, voicemail transcription, email delivery of voicemail, customized business greetings, business hour settings and the ability to block unwanted callers.

We also offer single and multi-line VoIP phone systems, IP-enabled phones, virtual phone numbers, virtual receptionist services, customizable phone tree, follow-me call forwarding and fax-on-demand.

We provide Internet-based telephone services, including virtual phone numbers and mobile applications that allow for separate business and personal communications from the same phone, single and multi-line VoIP phone systems, IP-enabled phones, virtual phone numbers, virtual receptionist services, customizable phone trees and follow-me call forwarding.

These SmartLine plans can be accessed with either IP phones, traditional local or cellular telephone services.

Connected Commerce

Our customers want their customers to have an enjoyable and seamless shopping experience, through a connected commerce experience in store and online.

Our commerce products are designed to help our customers set up an online store that is enabled for e-commerce, process all major forms of payment in store and online, manage their inventory across multiple marketplaces including their physical store, book appointments and get paid quickly for their customers' transactions.

We seek to make it easy for our customers to sell in-person, on their websites, across major marketplaces and via the most popular social networks.

Our primary commerce products and services are:

Online Store.

Our Websites + Marketing product includes online store capability, which allows our customers to transact business directly on their websites.

The product is optimized for mobile shopping and secure checkout via credit card, GoDaddy Payments (including, Apple Pay and Google Pay), Square, Stripe or PayPal.

Our online store allows customers to manage inventory and shipping and is integrated into our social and email marketing tools, to help customers generate more business.

Smart Point-of-Sale (POS) Systems.

We offer two point-of-sale devices, a countertop Smart Terminal and a mobile Card Reader and web/desktop software for POS.

We also offer inventory management and invoicing capabilities to our customers through the use of third party applications that seamlessly integrate with GoDaddy's POS system, giving small businesses the ability to sell, track and manage sales and inventory in store and online.

GoDaddy's POS systems seamlessly integrate with GoDaddy's Online Store to unify in-person and online sales in one organized place—our new Commerce Hub.

GoDaddy Payments.

As a "payment facilitator," GoDaddy Payments enables our customers to accept all major forms of payment, including Visa, MasterCard, American Express, Discover, and contactless payments including Apple Pay and Google Pay, with no long-term contracts or monthly minimums.

This service enables our customers to be paid as early as the next business day in many cases.

We collect a transaction fee of 2.3% for each retail POS transaction and a transaction fee of 2.3% + $0.30 for each online transaction.

Our Opportunity and Advantages

Our Opportunity—Empowering the Everyday Entrepreneur

Our customers represent a large and diverse market that we believe is largely underserved by other Internet companies.

According to the U.S.

Small Business Administration, there were approximately 30.8 million small businesses in 2016.

Based on data from the 2016 U.S.

Census Bureau and the U.S.

Small Business Administration, over 90% of small businesses have fewer than five employees and approximately 25 million, or over 76%, of small businesses were non-employer firms.

Furthermore, the Kauffman Index of Entrepreneurial Activity Report estimated that in 2017 there were approximately 540,000 new business owners created each month in the U.S.

Around the world, there are more than 500 million micro, small and medium enterprises, according to a study performed by the International Finance Corporation and McKinsey Company (defined as one to 250 employees) worldwide.

We believe our addressable market extends beyond small businesses and includes individuals and organizations, such as universities, community organizations, charities and hobbyists.

Our customers represent a large and diverse market that we believe is fundamentally underserved by other Internet companies.

The International Labour Organization, an agency of the United Nations, estimated in an October 2019 report that more than 90% of enterprises in many countries were small and medium size businesses (defined as having fewer than 250 employees).

In the U.S., the U.S.

Small Business Administration's Office of Advocacy indicated that there were approximately 32.5 million small businesses in the U.S.

(based on the Census Bureau's 2018 Statistics of U.S.

Businesses, which was the most recent data available as of publication of this report), and they were estimated to have represented approximately 43.5% of total U.S.

gross domestic product (GDP) in 2014.

Though these data points do not account for the impact of the COVID-19 pandemic on small and medium businesses, we believe the pre-pandemic data demonstrates a significant market exists for our products and services, and we believe our addressable market extends beyond small businesses and includes individuals and organizations, such as universities, community organizations, charities and hobbyists.

Our customers are consumers themselves, which makes them keenly aware of the need to have an impactful online presence.

While our customers' needs change depending on where they are in their journey, the most common customer needs we serve include:

• Showing up, looking great .

Our customers want to develop an online presence by finding a name that distinctly identifies their business, hobby or passion.

We believe their digital identity includes not just an elegant, mobile-enabled website, but the ability to get found across various search engines, social media platforms and vertical marketplaces.

• Digital identity .

Our customers want to develop a digital identity by finding a name that distinctly identifies their business, hobby or passion.

We believe their digital identity includes not just a simple, mobile-enabled website, but the ability to get found across various search engines, social media platforms and vertical marketplaces.

And while our customers' online identities start with creating and managing these points of presence, their identities are amplified through content generation and the ability to engage and transact online with their customers and audience.

• Getting found in all the right places .

• Ubiquitous presence .

Ubiquitous presence represents the need of our customers to present themselves to their customers, which they do through an ever-expanding set of options across social media, marketing channels, email, marketplaces and through their website.

Being able to seamlessly create and post content quickly is imperative.

What it means for our customers to be online continues to evolve.

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(i) a secure and content-rich website viewable from any device;

(ii) presence on social media channels (e.g.

Instagram, Facebook, WhatsApp and WeChat);

(iii) search engines (e.g.

Google) and an increasing number of horizontal marketplaces (e.g.

Yelp and Eventbrite);

(iv) vertical marketplaces (e.g.

Zillow, OpenTable and HomeAdvisor);

and (v) e-commerce platforms (e.g.

Amazon, eBay, Etsy).

(ii) a presence on social media channels (e.g., Meta (the parent company of Facebook, Instagram and WhatsApp) and WeChat);

(iii) getting found by search engines (e.g., Google);

and (iv) being on:

(a) an increasing number of horizontal marketplaces (e.g., Yelp and Eventbrite);

(b) vertical marketplaces (e.g., Zillow, OpenTable and HomeAdvisor);

and (c) e-commerce platforms (e.g., Amazon, eBay, Etsy).

• Connected commerce .

Connected commerce recognizes that our customers need commerce to work seamlessly for them both offline and online.

Our customers' customer expectations are set by how they engage with enterprise-grade experiences, which means they expect to be able to buy online and pick up in the store in a matter of minutes.

A customer in the store expects to be recognized online seamlessly, while a customer online expects to transition to a store experience seamlessly.

For service commerce entrepreneurs, their customers expect to find products and services online, engage through online messaging, book appointments digitally, and complete transactions in-person.

• Interacting with customers as they grow their business.

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(iii) online commerce with reservation and scheduling, product catalogs and e-commerce and payment processing capabilities, including in-person point-of-sale payment processing;

(iv) messaging capabilities across SMS, Facebook Messenger, WhatsApp and others;

(iv) messaging capabilities across SMS, Facebook Messenger, WhatsApp and other platforms;

(v) email marketing for audience engagement;

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Surrounding these channels and tactics, our customers also need easy-to-use tools to run their businesses.

• Technology that is reliable, secure, performant and evolves with their needs.

Our various customer types need a simple platform and set of tools enabling their domain, website, marketing and other solutions to easily work together as their ideas grow and become more complex.

The right platform can meet the needs of entrepreneurs, who may not be technologically savvy, and our Partners, who have more complex requirements, as well as all the customers in between that have a range of needs and sophistication.

• Technology that is reliable, secure, performance enhancing and evolves with their needs.

Our various customer types need a simple platform and set of tools enabling their domain, website, marketing and commerce solutions to easily work together as their ideas grow and become more complex.

The right platform can meet the needs of entrepreneurs, who may not be technologically savvy, and our Partners, who have more complex requirements, as well as the range of customers in between who have varying needs and levels of sophistication.

All the while, our customers expect reliable products and want to be confident their digital presence is secure, even as they insert customization that can create vulnerabilities.

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Serving these customer needs creates a deep relationship, where we are looked to as not just a solution provider, but also a guide and partner to their entrepreneurial journey.

This makes for a favorable business and economic model, aligning the interests of GoDaddy and our customer.

This makes for a favorable business and economic model, aligning the interests of GoDaddy and our customers.

Our Advantages

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Time is their most valuable resource and complexity is their hindrance;

they want an impactful online presence, but may not have the time and skills to make that happen.

our customers want an impactful online presence, but may not have the time and skills to make that happen.

Our goal is to be a trusted partner to these entrepreneurs, bringing together the technology, ease of use and care necessary to bring their ideas to life online.

Therefore, we believe the following strengths provide us with competitive advantages in serving their needs:

We believe the following strengths provide us with competitive advantages in serving these needs:

Global Brand Awareness.

We have a global brand with high awareness and the ability to leverage our brand with new categories, which is a competitive advantage when customers search for solutions.

We have over 21 million paying customers.

We have 55 global sites and in 2021, 45% of our customer base and a third of our revenue derived from our international presence.

Our customers value our suite of products - over 84 million domains, 12% of the application-built websites in the world and over 10 million mailboxes - resulting in greater than 85% customer retention rates.

Our email penetration rates continued to grow reaching 25% of GoDaddy customers in 2021, and Websites + Marketing has grown share by 40% in the last 3 years.

Seamlessly Intuitive Experiences.

Our customers often self-identify as non-technical and inexperienced in a variety of areas like marketing, content creation and customer management.

Our customers often self-identify as non-technical and inexperienced in areas such as marketing, content creation and customer management.

Because they may lack the expertise to take full advantage of powerful tools, customers may be overwhelmed as they attempt to bring their idea online.

We believe that the antidote to this complexity is to radically simplify our solutions and services into seamlessly intuitive experiences.

GoDaddy has the two leading website building CMSs with Managed WordPress and Websites + Marketing.

With Managed WordPress, we dramatically reduce the complexity in provisioning, managing and customizing the WordPress CMS.

We do this by wrapping the WordPress CMS with our own security tools (web application firewall (WAF), content delivery network (CDN) and secure sockets layer (SSL)), design tools, plugin pre-installs at initiation and automatic, managed updates.

In Websites + Marketing, our own captive CMS, we incorporate seamlessly intuitive experiences by uniting marketing, content, commerce and customer management tools into a single experience.

We believe the solution to this complexity is to radically simplify our solutions and services into seamlessly intuitive experiences.

GoDaddy has the two leading website building CMSs, Managed WordPress and Websites + Marketing.

With Managed WordPress, we have dramatically reduced the complexity of provisioning, managing and customizing the WordPress CMS by wrapping it with our own security tools (WAF, CDN and SSL), design tools, plug-in pre-installs at initiation and automatic, managed updates.

With Websites + Marketing, our own captive CMS, we incorporate seamlessly intuitive experiences by uniting marketing, content, commerce and customer management tools into a single experience.

We also seek to leverage data and insights to personalize the products and experiences of our customers as well as tailor our solutions and marketing efforts to each of our customer groups.

We are constantly seeking to improve our website, marketing programs and customer care to intelligently respond to where customers are in their lifecycle and identify their specific product needs.

We constantly seek to improve our website, marketing programs and customer care to intelligently respond to each stage of our customers' lifecycles and identify their specific product needs.

This allows us to interact more frequently with our customers.

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Our customers' needs are highly individualized and unique to their ventures, which makes operating a guidance experience – at scale – a substantial form of differentiation.

In recent years, we've extended this competency into a number of new interfaces and subject matters, which are taking the insights gained from inbound calls and inserting them tactically into places that are driving higher engagements with GoDaddy.

For example, within our Websites + Marketing platform, we are now creating custom, tailored action plans for our customers as they seek to market their business in a number of different channels based on the type of venture they have and their geography.

Additionally, our Websites + Marketing platform has recently launched an in-editor chat experience with our GoDaddy Guides, who are able to strategically assist our customers through aesthetic decisions and help them when they hit speed bumps.

And finally, we have significantly increased the passively-engageable content available to our customers, through a number of different content forms and across platforms like YouTube and Instagram.

Activating our Community.

GoDaddy is one of the largest aggregations of paying small businesses and ventures in the world, with a wealth of diversity across verticals, life stages, sophistication and geographies.

Our customers gain a lot when they're able to learn from one-another's experiences and benefit from each other's skills, but the challenge is that the exchange of information is cumbersome.

In recent years, we have extended this competency into several new interfaces and subject matters.

These interfaces allow us to take learnings and insights gained from customer interactions to build and grow our product and service offerings and drive more thoughtful engagements for our customers.

For example, within our Websites + Marketing platform, we are now creating customized action plans for our customers as they seek to market their businesses in a number of different channels based on the type of their venture and their geography.

Additionally, within our Websites + Marketing platform we recently launched an in-editor chat experience with our GoDaddy Guides, who are able to strategically assist our customers through aesthetic decisions and help them with technical challenges.

And finally, we have significantly increased the training and engagement content available to our customers, through a number of different content forums and across platforms like YouTube and Instagram.

Exponential Power of our Community.

GoDaddy is a large aggregator of paying small businesses and ventures in the world, with a wealth of diversity across industry verticals, life stages, levels of sophistication and geographies.

Our customers gain valuable insights when they are able to share experiences and skills, but the challenge is that the exchange of information is cumbersome.

We aim to activate our community and lower the barriers for connection, for the betterment of our customers.

This occurs in discreet areas of our business today – such as in our domain aftermarket and GoDaddy Websites + Marketing's InSight platform – and it is something we're investing in for the future.

This occurs in discreet areas of our business today – such as in our domain aftermarket and GoDaddy Websites + Marketing's InSight platform – and it is something in which we continue to invest in with our other products and services.

Human Capital

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We value hard work, extraordinary effort, living passionately, taking intelligent risks and working together toward successful customer outcomes.

Our relentless pursuit of doing right for our customers has been a crucial ingredient of our growth.

Our relentless pursuit of building value and doing right for our customers has been a crucial ingredient of our growth.

As of December 31, 2021, we had 6,611 employees worldwide, including 3,073 GoDaddy Guides, 2,098 in technology and development, 597 in marketing and advertising and 843 in general and administrative.

In addition to our employees, approximately 3,000 GoDaddy Guides located primarily in China, Colombia, India, Mexico, the Philippines and Spain who are directly employed by third-party partners are dedicated to GoDaddy on a full-time basis.

Substantially all of our employees are based in the U.S.

None of our employees is represented by a labor union or are party to any collective bargaining agreement in connection with his or her employment with us;

however, certain of our employees in Germany are represented by an employee works council pursuant to local regulations.

We actively work to attract a diverse employee population.

We are committed to providing equal opportunity in all aspects of employment and will not tolerate any discrimination, harassment or retaliation.

We actively work to educate our employees and managers on recognizing unconscious bias and received perfect scores on the 2019, 2020 and 2021 Corporate Equality Index administered by the Human Rights Campaign Foundation.

Additionally, we publish annual diversity and pay equity data and have achieved our goal of paying men and women in similar jobs at parity across the Company for six consecutive years.

In addition, in 2020, we began publishing pay equity data for different ethnic groups within our U.S.

workforce, and we have achieved pay equity between U.S.

based minority and non-minority employee populations.

We maintain several Employee Resource Groups to drive sponsorship, advocacy, and representation for diverse employee groups, especially those that are historically underrepresented.

We are committed to making progress towards increasing workforce diversity in both technical and non-technical roles.

Approximately 2,900 of our GoDaddy Guides are located in international markets, most significantly in India, the Philippines, Spain, Colombia and Mexico, and are directly employed by third-party partners while dedicated to GoDaddy on a full-time basis.

A majority of our employees are based in the U.S.

None of our U.S.

employees are represented by a labor union or are party to any collective bargaining agreement in connection with his, her or their employment with us.

Certain of our employees in Germany are represented by employee works councils and some other internationally based employees are represented by worker representatives in accordance with local regulations.

At GoDaddy, we strive for a workplace culture where everyone has the opportunity to thrive.

We support this goal by focusing on key human capital initiatives including:

• Pay Equity.

We actively work to attract a diverse employee population and are committed to providing equitable opportunity in all aspects of employment.

For the past seven years, we have published an annual diversity and pay equity report and, according to our analysis, we believe we have paid men and women substantially the same for performing similar jobs across the company for all entities included in the analysis.

In 2017, we began reporting on our pay practices across U.S.

based minority and non-minority employee populations and have reported each year that we believe, based on such data, that we have paid minorities and non-minorities substantially the same for performing similar jobs across the company.

• Diversity, Inclusion and Belonging.

Not only are we committed to increasing workforce diversity, but we have launched various initiatives to further our goal of being a more diverse, inclusive and equitable workplace.

We have several Employee Resource Groups (ERGs), which are employee-led groups formed around a common interest.

Our ERGs play a critical role in fostering diversity, inclusion and belonging within GoDaddy.

They help drive GoDaddy's vision, mission, values and strategic direction in the areas of recruitment and retention, learning and development and business/community development outreach.

In addition, we actively work to eliminate unconscious bias in our company by providing training and recognizing and combating unconscious bias in our hiring, performance review and promotion processes.

We also received perfect scores on the 2019, 2020, 2021 and 2022 Corporate Equality Index administered by the Human Rights Campaign Foundation.

• Learning and Professional Development.

We are committed to providing fulfilling career development opportunities for our employees.

To support this goal, we conduct regular performance reviews focused on career development for all full-time employees.

Additionally, we conduct an annual GoDaddy Voice employee survey to monitor employee satisfaction and to ensure that they feel connected and engaged with GoDaddy's mission, our customers and their own teams.

GoDaddy Guides

We have approximately 6,300 GoDaddy Guides who provide technical assistance 24/7/365 to customers located around the world.

Our industry-leading specialists use a consultative approach to advise customers of products best suiting their individual needs.

This ability to provide real-time product suggestions while providing a world-class support experience allows our GoDaddy Guides to provide an impactful contribution to bookings through the sale of product subscriptions.

Approximately 12%, 16%, and 17% of our total bookings in 2020, 2019 and 2018, respectively, were generated from the sale of product subscriptions by our GoDaddy Guides.

Our latest merchandising strategies, such as free trials and an increased mix of monthly product subscriptions, drove more renewal billings to our website and away from the GoDaddy Guides during 2020, which we expect to continue in the future.

Our GoDaddy Guide team operates through a variety of channels to provide tailored and timely support to our customers, handling approximately 19 million contacts in 2020.

Our customers can choose their preferred guidance channel, including proactive and reactive chat and phone support.

In 2020, we expanded these channels to include WhatsApp, WeChat and SMS offerings, as well as in our digital product experiences, where we provide consultative engagements.

As of December 31, 2020, we offered localized products and guidance in over 50 markets.

The majority of our GoDaddy Guides are located in our Arizona and Iowa facilities in the U.S.

We have additional international specialists providing in-region support in native languages.

In addition, our easy-to-use website contains extensive educational content designed to demystify the process of establishing an online presence and to assist customers in choosing the products best meeting their needs.

We also provide a variety of online tutorials through blogs and other services including The GoDaddy Garage Blog and third-party sites like YouTube.

The strength of our GoDaddy Guides is our people.

Our hiring process is extensive and highly selective, designed to yield individuals who will thrive in our team based on core values, character, work ethic and ability.

Our new GoDaddy Guides spend over a month moving from classroom to a live "nesting" environment where they refine their customer and technology skills.

With a commitment to life-long learning, we offer extensive classes to our employees spanning leadership, sales, service and technology.

Our incentive program rewards outcomes, across both customer satisfaction and bookings goals.

For these and many other reasons, as of December 31, 2020, approximately 44% of our GoDaddy Guides had been with us for at least three years.

We offer extensive classes to our employees spanning leadership, sales, service and technology through e-learning, instructor-led content classes, video based and blended platforms.

For our GoDaddy Guides, we offer continuing education and training programs that are immersive with environments, technology, and tools that enable active learning.

• Employee Engagement.

We conduct an annual employee engagement survey, GoDaddy Voice.

Over 90% of our employees participated in the survey in 2021.

Approximately 92% of survey respondents feel empowered to bring their authentic selves to work and 94% believe their colleagues treat each other with respect.

Additionally, we monitor employee responses to ensure employees feel connected and engaged with GoDaddy's mission, our customers and their own teams.

• Community Investment.

Our social impact work, overseen by our GoDaddy for Good team, is an extension of our company vision and mission.

Through our global volunteer and matching programs, we enable our employees to volunteer in their communities with paid time off, and we match employee donations to qualifying nonprofits of choice up to $1,500 per employee per year or country equivalent.

In addition, our employees can earn funds for nonprofits they volunteer with through our volunteer rewards program.

Technology and Infrastructure

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During the five years ended December 31, 2021, we invested to support our growth with $2,549 million in technology and development expenses.

The growth in our technology and development expenses has been driven primarily by our focus on product development to provide software-driven product experiences such as our website building suite, security, commerce, email, domain aftermarket and continued innovation in our domain registration and hosting offerings, among others.

The growth in our technology and development expenses has been driven primarily by our focus on enhancing customer experiences through the use of software-driven products.

Additionally, we offer Domain Registry and Corporate Domains solutions to our customers.

We have built a scalable infrastructure platform allowing us to optimize for economies of scale and enable next-generation hosting architecture for our customers, while investing in faster, denser and more efficient data centers, improved network connectivity and improved resiliency, both domestically and internationally.

We provide a reliable and secure global platform and infrastructure.

We aim to provide a reliable and secure global platform and infrastructure.

Our investments in technology, including engineers, patents, online security, customer privacy, reliable infrastructure and data science capabilities, enable us to innovate and deliver personalized solutions to our customers.

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Additionally, our platform allows our developers to create new and enhanced products or product features assembled from common building blocks leading to faster deployment cycles.

We believe our products work well together and are more valuable and easier to use together than had our customers purchased them individually from other companies and tried to integrate them.

As of December 31, 2020, we had 1,897 engineers, 314 issued patents and 102 pending patent applications in the U.S.

We believe our products work well together and are more valuable and easier to use together than if our customers purchased them individually from other companies and tried to integrate them.

As of December 31, 2021, we had 2,098 employees in technology and development, 314 issued patents and 124 pending patent applications in the U.S.

Physical Infrastructure and Management

Our physical technology infrastructure supports our products, experiences and business systems through servers located in data centers around the world.

As the world's largest manager of DNS traffic and a leading website hosting platform, we have invested significantly in our peering architecture and underlying infrastructure management to handle high IP transit traffic at low bandwidth costs.

We have invested in the automation of common physical data center components like servers, load balancers, switches and storage and we use open source solutions when possible to automate manual processes and thereby reduce the risk of human error and lower costs.

As the world's largest managed authoritative DNS provider and a leading website hosting platform, we invested significantly in our peering architecture and underlying infrastructure management to handle significant Internet traffic at low bandwidth costs.

We invested in the automation of common physical data center components like servers, load balancers, switches and storage and, we use open source solutions when possible to automate manual processes and thereby reduce the risk of human error and lower costs.

Additionally, we are beginning to use a single automated infrastructure based on OpenStack to enable next-generation services.

In 2018, we announced a partnership with AWS as we begin to migrate our internal infrastructure into the cloud over the next 5-7 years, which will accelerate our ability to provide speed and reliability in both our product experiences and our customers' hosting instances.

We continue to migrate most of our non-hosting products and internal systems to AWS, which has accelerated our ability to provide speed and reliability in both our product and customer experiences.

These efforts and our large technology infrastructure footprint allow us to scale and provide our customers with valuable products at affordable prices.

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Data Platform.

Our horizontal data platform helps us to be a trusted source of data about our customers and their online ideas through accurate, meaningful and easily consumable data insights, which allows us to build best-in-class, personalized experiences for our customers.

Our horizontal data platform helps us be a trusted source of data about our customers and their online ideas through accurate, meaningful and easily consumable data insights, which allows us to build best-in-class, personalized experiences for our customers.

Our data platform is key to helping us deepen our customer and business insights;

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Content and Marketing Platform.

Our content and marketing platforms leverage the latest tools, technology and operational and production models that enable us to deliver customer-centric digital experiences at an accelerated pace through multiple touchpoints and channels.

Our content and marketing platforms leverage the latest technology, operational and production models that enable us to deliver customer-centric digital experiences at an accelerated pace through multiple touchpoints and channels.

Our content platform and content creation processes help us realize efficiencies and scalability, which enhance our ability to drive new, high-quality products and customer experiences to market faster.

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Product Development

We have invested heavily in our product development teams as we have expanded the ways we serve our customers to adjust to their changing needs from primarily domain name registration and hosting to a broader spectrum of offerings.

Our primary website building products (Websites + Marketing and Managed WordPress), security suite, email offerings (Microsoft Office 365, Workspaces and Open X-change), commerce and domain aftermarket each represent significant need states that are complementary to our long-standing offerings and benefit from our strengths as a company in human-infused technology.

We invested heavily in our product development teams as we expanded the ways we serve our customers to adjust to their changing needs from primarily domain name registration and hosting to a broader spectrum of offerings.

Our primary website building products (Websites + Marketing and Managed WordPress), website security suite, email offerings (Microsoft Office 365 and Open X-change), commerce and domain aftermarket each represent significant need states that are complementary to our long-standing offerings and benefit from our strengths as a company in human-infused technology.

Our product development investments have grown at a significantly higher rate than our physical infrastructure and business system expenses, reflecting our expanding role in enabling our customers' success with a powerful digital presence.

Our key product development initiatives include:

Powering Elegant and Effortless Presence .

Powering a Simple and Effortless Presence .

We offer a range of products and services that help our customers get their ideas online.

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We continue to invest in Websites + Marketing and other tools, templates and technology to make building, maintaining and updating a professional looking mobile or desktop presence simple and easy.

In 2018, we introduced GoDaddy Social, a set of social media management tools through our acquisition of Main Street Hub, which help our customers develop, maintain and own their social media brand and reputation as well as interact with their customers.

In 2020, we introduced GoDaddy Studio (formerly Over), a web and mobile app that empowers everyday entrepreneurs to create visual content by customizing templates we provide or creating from scratch with simple design tools.

Additionally, we are investing in products to help our customers drive their customer acquisition, retention and communication efforts by managing their presence across search engines, social networks and vertical marketplaces and keep their online presence and information secure.

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Our business applications range from domain-specific email and email marketing to telephony services and payment tools to help our customers communicate with their customers and grow their ideas.

In April 2021, we acquired Re:amaze, a communications platform to help small businesses support, engage and convert customers through email, text, online chat, social media, voice and video conversations.

We intend to continue investing in the breadth of our product offerings to help our customers connect with their customers and run their ventures.

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The first generation of naming included a limited set of gTLDs, such as .com and .net, and ccTLDs, such as .uk and .in.

Hundreds of new gTLDs have been introduced in recent years, expanding the available inventory for us and our customers.

Hundreds of new gTLDs were introduced in 2013 through the Expansion Program, expanding the available inventory for us and our customers.

Through GoDaddy Registry, we operate back-end registry management for more than 215 TLDs.

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Partnering Up.

Our flexible platform also enables us to acquire companies and quickly launch new products for our customers, including through partnerships such as Microsoft Office 365 for email and PayPal and Square for payments.

Our flexible platform also enables us to acquire companies and quickly launch new products for our customers, including through partnerships such as Microsoft Office 365 for email.

We have also acquired companies and technologies to complement our product and service offerings and expand our geographic footprint.

We intend to continue identifying value-added technology acquisition targets and partnership opportunities.

Helping customers sell anything anywhere.

Our commerce solutions are designed to enable customers to seamlessly sell both online and offline.

In 2021, we launched several commerce solutions including:

• Two POS devices, the Smart Terminal and mobile Card Reader that allow customers to sell, track and manage their sales both online and offline;

• GoDaddy Payments, a payments solution that enables GoDaddy Websites + Marketing and Managed WordPress WooCommerce customers to handle all of their commerce transactions directly through GoDaddy;

• WooCommerce payments extensions that give merchants the ability to easily and securely accept any major credit or debit card for transactions on sites built with WooCommerce and WordPress;

• Commerce Hub which helps our customers easily manage and track every sale they make, whether that takes place online, offline, or more commonly in today's landscape, a hybrid of the two.

In the future we will continue to innovate in commerce solutions that are easy-to-use, allow our customers to sell anywhere and at industry-low pricing.

We believe GoDaddy is one of the most recognized Internet brands in the U.S.

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We use a variety of targeted online marketing programs for lead generation, including search engine marketing, search engine optimization and targeted email and social media marketing campaigns, as well as more traditional direct marketing and indirect channel partner marketing programs, to drive interest in our products and traffic to our websites.

As part of this effort, we regularly run numerous campaigns simultaneously and constantly refine our media mix across our channels.

As part of this effort, we regularly run campaigns simultaneously and constantly refine our media mix across our channels.

Central to our international strategy is a philosophy of localizing our product offerings and customer experience and deploying them through our global infrastructure.

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and derived approximately 32%, 32% and 33% of our total bookings from international sales in 2021, 2020 and 2019, respectively.

We have built a dedicated team responsible for the internationalization and localization of our core product offerings as well as our customer care and marketing efforts, including through our acquisition of Host Europe Group in 2017.

We have built a dedicated team responsible for the internationalization and localization of our core product offerings as well as our customer care and marketing efforts.

In conjunction with our localization efforts, we added on-the-ground regional teams and increased our country and regional specific marketing spend.

These investments have enabled us to successfully launch and expand our business outside the U.S.

and as of December 31, 2020, we provided localized products and customer care in over 50 markets around the world.

We have taken a rigorous approach to managing the level of investment we expect to make in each geographic market we enter based on a market tier approach.

We expect to continue to expand internationally, growing our share and increasing penetration of the international markets we've entered in recent years.

These investments enabled us to successfully launch and expand our business outside the U.S.

and as of December 31, 2021, we provided localized products and customer care in 55 markets around the world.

We took a rigorous approach to managing the level of investment we expect to make in each geographic market we enter based on a market tier approach.

We expect to continue to expand internationally, growing our share and increasing penetration of the international markets we have entered in recent years.

We provide cloud-based solutions enabling individuals, businesses and organizations to establish an online presence, connect with customers and manage their ventures.

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Our competitors include providers of:

• domain registration services and web-hosting solutions such as Donuts, Endurance, United Internet, Web.com and WP Engine;

• website creation and management solutions such as Automattic, Shopify, Squarespace and Wix;

• domain registration services and web-hosting solutions such as Donuts, United Internet, Namecheap, Newfold Digital, Automattic and WP Engine;

• website creation and management solutions such as Shopify, Squarespace and Wix;

• commerce capabilities such as Square, BigCommerce, Stripe and PayPal;

• cloud-infrastructure services and online security providers such as CloudFlare, Comodo, Let's Encrypt, LiquidWeb and SiteGround;

• alternative web presence, social platform and marketing solutions such as Constant Contact, Facebook, Instagram, MindBody, OpenTable, Yelp and Zillow;

• alternative web presence, social platform and marketing solutions such as Amazon, Google, Meta (the parent company of Facebook, Instagram and WhatsApp), MindBody, Toast, TikTok, OpenTable and Yelp;

• productivity tools such as business-class email, calendaring and messaging such as Google, Grasshopper, Microsoft, WeChat, WhatsApp and Zoho.

We expect continued competition from companies in the domain, hosting and presence markets such as Automattic, Endurance, Donuts, Squarespace, United Internet, Web.com and Wix.

We also expect potential increased competition from companies like Google, Amazon, Facebook and Microsoft, which are providers of web-hosting, Internet marketing, e-commerce and other cloud-based services.

We believe the principal competitive factors include:

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and the laws of other jurisdictions in which we do business.

The registration of domain names is governed by ICANN.

ICANN is a multi-stakeholder private sector, not-for-profit corporation formed in 1998 for the express purposes of overseeing a number of Internet related tasks, including management of the DNS, allocation of IP addresses, accreditation of domain name registrars and registries and the definition and coordination of policy development for all of these functions.

The registration of domain names is governed by ICANN, a multi-stakeholder private sector, not-for-profit corporation formed in 1998 for the express purposes of overseeing a number of Internet related tasks, including management of the DNS, allocation of IP addresses, accreditation of domain name registrars and registries and the definition and coordination of policy development for all of these functions.

We are accredited by ICANN as a domain name registrar and registry and thus our ability to offer domain name registration products is subject to our ongoing relationship with, and accreditation by, ICANN.

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The regulation of ccTLDs is governed by national regulatory agencies of the country underlying the specific ccTLDs, such as the U.S.

(.us), Colombia (.co), China (.cn), Canada (.ca) and the U.K.

(.us), Colombia (.co), China (.cn), Canada (.ca) and the UK (.uk).

Our ability to sell ccTLDs is dependent on our and our partners' abilities to maintain accreditation in good standing with these various international authorities.

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federal, state and foreign legislatures have also adopted laws and regulations regulating numerous other aspects of our business.

Regulations relating to the Internet, including laws governing online content, user privacy and data protection, taxation, liability for third-party activities and jurisdiction, are particularly relevant to our business.

Such laws and regulations are discussed below.

Regulations relating to the Internet, including laws governing online content, user privacy and data protection, automatic renewal laws, taxation, liability for third-party activities, are particularly relevant to our business.

A sample of such laws and regulations is discussed below.

Communications Decency Act (CDA) .

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The Lanham Act governs trademarks and false advertising.

Case law interpreting the Lanham Act has limited liability for many online service providers such as search engines and domain name registrars.

Case law interpreting the Lanham Act has limited liability for many Internet service providers such as search engines and domain name registrars.

Nevertheless, there is no statutory safe harbor for trademark violations comparable to the provisions of the DMCA, and we may be subject to a variety of trademark claims in the future.

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For example, the European Union (E.U.) has enacted the General Data Protection Regulation (GDPR), superseding the 1995 European Union Data Protection Directive.

The GDPR includes stringent operational requirements for processors and controllers of personal data, for companies established in the E.U.

and those outside of the E.U.

if they collect, use, or otherwise process personal data, including payment card information, imposes significant penalties for non-compliance and has broader extra-territorial effect.

The GDPR includes stringent operational requirements for processors and controllers of EU personal data with broad extra-territorial effect and imposes

significant penalties for non-compliance.

As we continue to expand our operations in Europe and elsewhere, we expect compliance with these regulatory schemes to be more burdensome and costly for us.

In addition, California recently enacted the California Consumer Privacy Act (the CCPA), which was further modified by the passage of the California Privacy Rights Act (CPRA) in the November 2020 election.

In addition, California enacted the California Consumer Privacy Act (CCPA) in 2018 (effective January 1, 2020), which was further modified by the passage of the California Privacy Rights Act (CPRA) in the November 2020 election.

The CCPA, as modified, requires covered companies to provide new disclosures to California consumers and afford such consumers new abilities to opt-out of certain sales of personal information.

Laws and regulations relating to our activities are unsettled in many jurisdictions, or may prove difficult or impossible to comply with in some jurisdictions.

Payments Regulation .

federal, state and international laws and regulations govern the payments industry, including the Bank Secrecy Act of 1970 and state money transmitter licensing laws.

Our payments services may be or become subject to regulation by authorities, which would subject us to, among other things, (i) record-keeping, reporting and bonding requirements, (ii) limitations on the investment of customer funds and (iii) inspection by state and federal regulatory agencies.

In order to offer retail point-of-sale solutions that connect to payment networks, retail point-of-sale providers must certify their products and services with the payment card networks, financial institutions and payment processors, as well as comply with government and telecommunications company regulations including those imposed by the U.S.

Federal Communications Commission (FCC) and similar telecommunications authorities worldwide.

Laws and regulations relating to our activities are unsettled in many jurisdictions, and may prove difficult or impossible to comply with in some jurisdictions.

Additionally, federal, state, local and foreign governments are also considering legislative and regulatory proposals that would regulate the Internet and our activities in more and different ways than exist today.

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We were incorporated in Delaware on May 28, 2014.

Our principal executive offices are located at 14455 N.

Hayden Road, Scottsdale, Arizona 85260 and our telephone number is (480) 505-8800.

Our principal executive offices are located at 2155 E.

GoDaddy Way, Tempe, Arizona 85284 and our telephone number is (480) 505-8800.

Available Information

Our website is located at www.godaddy.com and our investor relations website is located at investors.godaddy.net.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our Proxy Statements are available through our investor relations website, free of charge, after we file them with the SEC.

We also provide a link to the section of the SEC's website at www.sec.gov that has all of the reports we file or furnish with the SEC.

You may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C.

You can get information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our Proxy Statements are available through our investor relations website, free of charge, as soon as reasonably practicable after we file them with the SEC.

We also provide a link to the section of the SEC's website at www.sec.gov that has all of the reports, proxy and information statements we file or furnish with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business