What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-02-16 compared with 2022-02-17 · 219 added, 186 removed, 319 unchanged (56% of the section changed)

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

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

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

Over time, the evolution of e-commerce, social media and consumer expectations of their online and in-person experiences has changed the entrepreneurial journey, making it more complex every day.

As the needs of our customers have changed and grown, we have evolved our products and services to meet them where they are on the entrepreneurial wheel.

Our ability to evolve and build our suite of products to meet our customers' needs uniquely positions us 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.

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Our 20.9 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.

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' journeys are non-linear in where they start and scale their ventures and our services are designed to meet and attract them in all phases and across all aspects of their business.

These phases are iterative in nature;

customers are constantly revisiting different stages of their journey to improve and grow.

Wherever our customers are in their journey, whether they are choosing a domain name or establishing a physical store, online presence or a social media platform, GoDaddy is there to enable them to create content, build their website, establish and manage their online marketing, sell their products and services, process their payments, 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.

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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 take responsibility for delivering successful outcomes which we believe is a key factor 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, 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%.

In each of the five years ended December 31, 2022, our customer retention rate exceeded 85%, and in 2022, our retention rate for customers who had been with us for over three years was approximately 93%.

Additionally, in 2022, we had approximately 1.5 million customers who each spent more than $500 a year on our product offerings.

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Our Customers and Solutions

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.

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

Our Customers

We serve several customer populations:

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

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.

(i) Independents, (ii) WebPros, (iii) Domain Registrars and Investors, and (iv) other Registrars and Corporate Domain Portfolio owners.

We aim to establish and provide solutions that address these differences.

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

These micro-businesses 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 idea 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 that need 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.

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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.

Our second largest customer population, WebPros, 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 WebPros, on a do-it-for-you basis.

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

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

Although WebPros 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 WebPros customers 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.

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, including our acquisition of Pagely, a managed WordPress hosting solution, in November 2021, have focused on extending our reach into the WordPress community.

With our products and services, WebPros 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 WebPros including cPanel, Plesk, Drupal, Joomla and more.

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.

Domain registrars are organizations that have their own domain registration offerings, but who use our domain registration and management platform.

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.

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 a domain name they prefer.

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 WebPros) successfully find a domain name they prefer.

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 serve registrars through 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 alternatives to the .com domain that more closely represent the name of our customers' ideas, businesses and brands.

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

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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 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.

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

We understand that no matter what our customers' needs or what stage of their idea they are focusing on, our customers want a "one-stop shop" solution.

We offer our customers products and services to meet them at every stage of their journey.

We do all this by providing 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.

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.

Our omni-commerce payments platform and GoDaddy Payments recognize our customers' needs and provide for cost-effective solutions.

We believe our payments solutions enable our customers to quickly and easily participate in the digital economy with a seamless transition to offline marketplaces.

We have also made significant investments in the localization of our service offerings, as 47% 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 6,200 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.

We manage and report our business in the following two segments:

• Applications and Commerce (A&C) , which primarily consists of sales of products containing proprietary software, commerce products and third-party email and productivity solutions as well as sales of certain products when they are included in bundled offerings of our proprietary software products.

• Core Platform (Core) , which primarily consists of sales of domain registrations and renewals, aftermarket domain sales, website hosting products and website security products when not included in bundled offerings of our proprietary software as well as sales of products not containing a software component.

Applications and Commerce

Bringing an idea to life online requires the right tools and products to establish a presence.

GoDaddy Websites + Marketing, Managed WordPress hosting, GoDaddy Studio 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 enable our customers to be 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) to vertical marketplaces (e.g., Yelp), all from one location.

Applications Products

Our primary applications products include:

Websites + Marketing .

Websites + Marketing is an easy-to-use, do-it-yourself, mobile-optimized online tool that enables our customers, irrespective of their technical skills, to build effective websites and e-commerce enabled online stores.

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

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.

In addition, we now include Payable Domains, a default payments system that creates a frictionless, out-of-the-box experience for our customers.

Managed WordPress and Managed WooCommerce.

Managed WordPress is our streamlined, optimized hosting platform that allows our customers to build and manage a faster and more secure WordPress site.

With our Managed WordPress site, we manage the administrative tasks for our customers, allowing them to spend more time on building or growing their business.

We offer a variety of plans, with pricing based on various features.

Our Managed WordPress sites are built with enhanced security, automatic, daily backups and core updates, integrated Secure Sockets Layer (SSL), one-click migration tools, pre-installed extensions, plugins and themes, business email and backups and a staging site.

We also offer our Managed WordPress Hosting

Platform with WooCommerce, giving our customers the freedom to sell anything, anywhere online, from physical products to digital downloads, services and subscriptions.

Digital Marketing .

We offer 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 offering 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, our mobile application, GoDaddy Studio, allows our customers to grow their brands by easily creating impactful visual content for almost any online platform.

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 Meta and Google My Business.

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

Social Media Marketing helps customers create ads and boost brand awareness through 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 Meta, Twitter and Yelp, among others, to help our customers acquire new customers and build stronger relationships with their existing customers.

Connected Commerce

We aim to lead the small business commerce market by enabling GoDaddy customers of all sizes, from those just starting out to established businesses looking to scale and grow, to sell everywhere their customers shop.

Our commerce products are designed to help our customers sell online, in person and on leading marketplaces, while being able to manage their sales from one place.

In addition to robust commerce capabilities, we offer the lowest card transaction fees in the industry when compared to other leading providers, which allows our customers to keep more of what they make.

Our primary commerce products and services include:

Online Store.

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

Online store capability is easy to use and offers powerful commerce features with templates for websites that are optimized for mobile shopping, integrations with GoDaddy Payments and our Smart Terminal POS system, inventory and product catalog management, and growth tools for marketing.

It also allows customers to sell on leading marketplaces (e.g., Amazon, Etsy, eBay, Walmart, Google) and social media platforms (e.g., Facebook, Instagram), with all channels managed from our Commerce Hub.

In addition, in 2022 we released Managed WooCommerce Stores, which is a high performance and highly flexible WordPress online store targeted at established businesses looking for a powerful connected commerce solution to scale their online and in-store businesses.

Similar to our Websites + Marketing product, Managed WooCommerce Stores includes our Commerce Hub, marketplace selling and is integrated with GoDaddy Payments and our Smart Terminal POS system.

Point-of-Sale (POS) Systems.

We offer a countertop Smart Terminal for businesses with in-store operations.

Our Smart Terminal is a modern, dual screen all-in-one POS system that allows our customers to manage in-store inventory and product catalogs and take payments.

In addition, the Smart Terminal seamlessly integrates with both our Websites + Marketing Online Store and Managed WooCommerce Store to unify in-person and online sales so businesses can offer “Buy online pick up in-store” experiences to their customers.

The Smart Terminal also offers access to vertical-specific third-party applications.

In addition to our Smart Terminal, we offer other payment acceptance solutions that allow our customers to take payments their way while seamlessly interacting with their customers wherever they may be.

Our Card Reader allows customers to take payments and sell on the go.

Our Virtual Terminal allows customers to take payments from their smartphone, tablet or computer with internet connection with no hardware needed.

Our customers also have the ability to take online payments without needing to create a website through our shareable pay links.

Customers can brand and personalize these shareable pay links with their domain or other marketing, giving them another opportunity to build their brand.

Pay links can be sent through text or email or shared on social media sites.

We also offer payment services through the GoDaddy Mobile App, which not only powers our Card Reader, but allows our customers to accept payments through their smartphone by using a QR code that their customers can scan to pay.

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 start accepting payments in minutes with a simple setup and get paid, in many cases, as early as the next business day all with the lowest fees in the industry

when compared to other leading providers.

In addition, GoDaddy Payments is built-in as a payments acceptance method in all our U.S.

commerce products for easy enablement .

In 2022, 2021 and 2020, we derived approximately 31%, 30% and 28% of our total revenue, respectively, from sales of our A&C products.

Email and Productivity Solutions

Our customers want to spend their time on what matters most to them, selling their products and services or helping their customers do the same.

We provide them with productivity tools such as domain-specific email, SmartLine second-line telephony, online storage and payment solutions to help run their ventures.

We offer a variety of products designed to make the business of business easier for our customers.

The products we offer include those developed in-house as well as third-party applications which we distribute and support, such as Microsoft Office 365.

Our primary email and productivity solutions products include:

Email Accounts .

We offer a range of email service plans with a multi-feature web interface that connects to our customers' domains.

The pricing of these plans depends on the customer's desire for additional features, including HIPAA compliant email, advanced email security, archiving, and additional business applications such as Microsoft Bookings and Microsoft Teams.

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.

Microsoft Office 365 .

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 through multiple plans ranging from email with calendar and contacts connected to a full suite of productivity tools, including file sharing and full desktop versions of Microsoft productivity applications, such as 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 partnerships with ProofPoint and Inky), 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" migration services to move customers' existing email data to Office 365 accounts.

Core Platform

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

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.

When inspiration strikes, we are there to provide our customers with the broadest selection of domains and high-quality search, discovery and recommendation tools 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 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.

We are a global leader in domain name registration, with nearly 84 million domains under management as of December 31, 2022 and, based on information reported in VeriSign's Domain Name Industry Brief, we held 24% of the approximately 350 million domain names registered worldwide as of September 30, 2022.

As of December 31, 2022, approximately 92% 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 TLDs including .biz, .co, .in, .nyc, and .us.

Our primary domains product offerings are:

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

Our primary domains product offerings include:

Primary Registrations .

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.

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

As of December 31, 2022, 424 different generic TLDs, such as .com, .net and .org, and 58 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.

Since 2013, hundreds of new gTLDs have been launched through ICANN's "new gTLD program" initiated in 2012 (the 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.

Our primary registration offering relies heavily on our search, discovery and recommendation tools which enable our customers to find a name matching their needs.

We also sell domain registrations through relationships with third-party resellers and we provide back-end registry services supporting more than 215 TLDs.

Our primary registration offering relies heavily on our search, discovery and recommendation tools which enable our customers to find a domain name that matches their business needs and goals.

sell domain registrations through relationships with third-party resellers and we provide back-end registry services supporting more than 215 TLDs.

Aftermarket .

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.

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Domain Name Add-Ons .

Domain name add-ons are features typically purchased concurrently with domain name registrations and have low costs associated with their delivery.

Domain name add-ons are typically purchased concurrently with domain name registrations and have low costs associated with their delivery.

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

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.

Domain names with 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.

GoDaddy registry operates or provides back-end registry services to more than 200 TLDs including country-code TLDs, such as .

us and .co, city TLDs such as .nyc and .sydney, generic TLDs such as .club, .tv and .design, and branded TLDs such as .chase and .godaddy.

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, 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.

Hosting and Security

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.

We offer a variety of hosting and presence products enabling our customers to create and manage their digital identity, or in the case of Partners, the digital identities of their end-customers.

In 2021, 2020 and 2019, we derived approximately 34%, 36% and 38% of our total revenue, respectively, from sales of our hosting and presence products.

Our primary hosting products are:

We offer a variety of hosting and security products enabling our customers to create and manage their digital identity, or in the case of WebPros, the digital identities of their end-customers.

Our primary hosting and security products include:

Shared Website Hosting .

The term "shared hosting" refers to the housing of multiple websites on the same server via the use of chroot environments.

The term "shared hosting" refers to the housing of multiple websites on the same server.

Shared hosting is our most popular hosting product.

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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.

We also bundle our hosting plans with a variety of applications and products such as web analytics, 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 (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 broad range of virtual private server (VPS) offerings 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.

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

Managed Hosting .

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We offer a variety of managed hosting plans to support our customers' needs including multiple tiers of Managed WordPress hosting on a platform optimized for WordPress.

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

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

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

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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:

Websites + Marketing .

Websites + Marketing is an easy-to-use, do-it-yourself, mobile-optimized online tool enabling customers, irrespective of their technical skills, to build effective websites and e-commerce enabled online stores.

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

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, 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.

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.

Social Media Management.

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 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

Our customers want to spend their time on what matters most to them, selling their products or services or helping their customers do the same.

We provide them with productivity tools such as domain-specific email, second-line telephony, online storage and payment solutions to help run their ventures.

We offer a variety of products designed to make the business of business easier for our customers.

The products we offer include those developed in-house as well as third-party applications which we distribute and support, such as Microsoft Office 365.

In 2021, 2020 and 2019, we derived approximately 19%, 18% and 17% of our total revenue, respectively, from sales of our business applications products.

Our primary business applications products are:

Microsoft Office 365 .

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, such as 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.

Email Accounts .

We offer a range of email service plans with a multi-feature web interface that connects to our customers' domains.

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

Email Marketing .

Our email marketing product helps customers market their businesses through permission-based email.

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, 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.

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.

In 2022, 2021 and 2020, we derived approximately 69%, 70% and 72% of our total revenue, respectively, from sales of our Core Platform products.

Our Opportunity and Advantages

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(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.

Businesses), and they were estimated to have represented approximately 43.5% of total U.S.

gross domestic product (GDP) in 2014.

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

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

(ii) a presence on social media channels (e.g., Meta, TikTok, Snapchat, Twitter and WeChat);

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

and (iv) being on:

and (iv) establishing a presence on:

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

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• Interacting with customers as they grow their business.

Our customers need to communicate with their existing customers and find new ones across a landscape that is fragmented in both form and function.

They have distinct needs in (i) branded email communication, originating with domain registration and email creation through an email client;

Our customers need to effectively communicate with existing customers and potential customers across a communication landscape that is fragmented in both form and function.

This landscape includes (i) branded email communication, originating with domain registration and email creation through an email client;

(ii) online marketing in a variety of content types and channels;

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• 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.

Our customers vary significantly, but they remain the same in their need for a simple platform and set of tools to enable their domain, website, marketing and commerce solutions to easily work together as their ideas grow and become more complex.

Our products and services provide a platform that can meet the needs of entrepreneurs, who may not be

technologically savvy, or WebPros, who have more complex requirements, and the range of customers in between who have different demands 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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• Connecting with a real person when they need help.

Our customers sometimes need guidance to set up a website, launch a new feature or try something new.

They need real people who are available 24/7/365 and in the manner that works best for them, whether by phone, by chat or in community forums.

In addition to guiding our customers along the way, we also provide support by handling the most difficult and arduous tasks for them through a collection of managed service offerings.

Depending on their journey, a customer may seek guidance on setting up a website, launching new features or trying a new product or service and they need that guidance on their time.

Our customers need real people who are available 24/7/365 and in the manner that works best for them, whether by phone, chat or in community forums.

In addition to guiding our customers along their journey, we also provide support by handling the most difficult and arduous tasks for them through a collection of managed service offerings.

• Affordable solutions .

Our customers often have limited financial resources and are unable to make large, upfront investments in the latest technology.

Our customers often have limited financial resources and may be unable to make large, upfront investments in the latest technology.

Our customers need affordable solutions to level the playing field with the tools to look and act like bigger ventures.

We aim to provide affordable products and services for our customers at every level to support their businesses.

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.

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Our Advantages

Our customers have many roles in their venture;

Our customers serve many roles in their business;

they simultaneously run marketing, accounting, service delivery operations, customer service, people operations and many other tasks.

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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.

We have a global brand with high awareness and are one of the largest domain name providers, with nearly 84 million domains representing 24% of the approximately 350 million domain names registered worldwide as of September 30, 2022 according to VeriSign's Domain Name Industry Brief.

Our global presence gives us the ability to leverage our brand — a competitive advantage when customers search for products and solutions.

We have 20.9 million paying customers and greater than 85% customer retention rates.

We operate in 54 global markets and in 2022, 47% of our customer base and a third of our revenue derived from our international presence.

Seamlessly Intuitive Experiences.

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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.

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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.

Additionally, within our Websites + Marketing platform we offer 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.

GoDaddy is a large aggregator of small businesses and ventures, 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 exchange of information is cumbersome.

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

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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.

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.

As of December 31, 2022, we had 6,910 employees worldwide, including 3,124 in care and services (or, GoDaddy Guides), 2,378 in technology and development, 523 in marketing and advertising and 885 in general and administrative.

In addition to our GoDaddy Guides, GoDaddy partners with various third party providers and vendors to provide contracted care and support services to our customers;

approximately 3,000 individuals are employed with or engaged by our external partners while dedicated to GoDaddy on a full-time basis.

These third-party providers are primarily located in international markets, most significantly in India, the Philippines, and Colombia.

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

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

• Pay Equity.

• Pay Parity.

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.

For the past seven years, we have published an annual diversity and pay parity 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 race and ethnic 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, Equity, 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.

We have several Employee Resource Groups (ERGs), which are employee-driven and led groups focused around common topics, identities, affinities, or interests.

Our ERGs play a critical role in fostering diversity, equity, 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.

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

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.

We offer extensive learning opportunities to our employees spanning leadership, sales, service and technology and compliance training through e-learning, instructor-led content, 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.

We conduct an annual anonymous employee engagement survey, GoDaddy Voice.

Over 86% of our employees participated in the survey in 2022.

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.

Approximately 91% of survey respondents say their manager supports them with flexibility, models inclusive behavior, and maintains high ethical and compliance standards and 93% say their colleagues treat each other with respect.

Additionally, we monitor employee responses to identify areas of opportunity and set goals and expectations for improvement to ensure employees feel connected and engaged with GoDaddy's mission, our customers and their own teams.

• Community Investment.

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Technology and Infrastructure

Our products, customer experiences and business systems are enabled by our technology and infrastructure to ensure scalability, security and flexibility.

Our products, customer experiences and business systems are enabled by our technology and infrastructure to provide scalability, security and flexibility.

Technology and development expenses, including those expenses related to our technology platform, were $794 million, $706 million and $560 million in 2022, 2021 and 2020, respectively.

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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.

Our API-driven technology platform is built on state-of-the-art, open source technologies like Hadoop, OpenStack and other large-scale, distributed systems.

Our API-driven technology platform is built on state-of-the-art, open source technologies like OpenStack and other large-scale, distributed systems.

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.

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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.

Additionally, we are leveraging a common automated infrastructure based on OpenStack and KVM to enable next-generation services.

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.

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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;

these insights enable innovation through instrumentation, experimentation and analysis.

Our data platform is key to helping us deepen our customer and business insights, which enable innovation through instrumentation, experimentation and analysis.

Content and Marketing Platform.

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We are also delivering new engagement marketing capabilities that improve business effectiveness and customer experiences.

Enterprise Operations.

We recently implemented an enterprise resource planning (ERP) platform across our human capital management operations and financial and procurement operations;

we continue to make improvements to these systems as needed.

Product Development

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.

We continue to invest 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 products 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.

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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 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.

In 2020, we introduced GoDaddy Studio, 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.

For example, through GoDaddy Conversations, 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.

Delivering the Next Generation of Naming .

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

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

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

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

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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 have also acquired companies and

technologies to complement our product and service offerings and expand our geographic footprint.

For example, in July 2022, we acquired Dan.com, a marketplace of domain names, which provides our customers with lease-to-own options, automation technology and a new market of buyers for domain investors.

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.

Our commerce solutions are designed to grow with our customers' businesses by enabling them to seamlessly sell both offline and online, from online marketplaces and social platforms, while easily managing their sales in one place.

In 2022, we launched and upgraded the following Commerce products and services:

• Managed WooCommerce Stores:

Launched a new WordPress-based online store solution for established businesses looking to scale and grow.

Managed WooCommerce Stores is a fully managed platform that streamlines operating a WordPress ecommerce site by providing integrated features needed to sell goods online, in person and across several marketplaces and social media platforms.

As part of the GoDaddy Commerce ecosystem, Managed WooCommerce Stores come with GoDaddy Payments built in and seamlessly integrates with our POS devices.

The Managed WooCommerce Stores provide our customers everything they need to sell online, in person, and across popular marketplaces and social media platforms from one built-in experience.

• Smart Terminal:

Added new version 3 model with upgraded hardware for better performance, larger screens and support for 4G LTE;

and the Smart Terminal App Center for third-party apps that extend the capabilities of the Smart Terminal with over 70 vertical-specific apps like restaurant and employee management, salon scheduling, customer loyalty, and more.

• Websites + Marketing:

Added new Commerce Plus plan with automated sales tax calculations, and integrated shipping label that improves merchant experience, and Pay Buttons that makes taking payments on a website much easier.

• GoDaddy Payments:

Added Apple Pay and Google Pay as online payment acceptance forms;

the acceptance of QR code payment on GoDaddy Mobile App;

and enhancements to merchant onboarding and risk management.

• Commerce Hub:

Added additional omni-channel reporting for merchants;

enabled inventory syncing between POS & Online Stores;

and the integration with Online Bookings .

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 card transaction pricing.

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

with increased awareness globally.

We have established this high level of brand awareness primarily through our advertising campaigns across various platforms including television commercials, print, online and billboards, and have supplemented these advertising campaigns with athlete, celebrity sponsorships and social media influencers.

with high brand awareness globally.

We have established this high level of brand awareness primarily through our advertising campaigns across various platforms including television commercials, print, online and billboards, and have supplemented these advertising campaigns with our own entrepreneurial customers and social media influencers.

Over the five years ended December 31, 2022, we have invested $1,992 million in marketing and advertising expenses.

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We intend to continue investing in our brand as we seek to further grow our total customers, particularly internationally.

Customer referrals are another highly efficient and cost-effective channel for acquiring customers.

We complement our brand marketing efforts with focused and metric-driven direct response marketing to acquire new customers.

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

As of December 31, 2021, we had over 9.6 million customers outside of the U.S.

As of December 31, 2022, we had approximately 9.9 million customers outside of the U.S.

and derived approximately 32%, 32% and 32% of our total bookings from international sales in 2022, 2021 and 2020, respectively.

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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 expect to continue to strategically 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, United Internet, Namecheap, Newfold Digital, Automattic and WP Engine;

• domain registration services and web-hosting solutions such as Identity Digital (formerly Donuts and Afilias), 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;

• commerce capabilities such as Block (formerly 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 Amazon, Google, Meta (the parent company of Facebook, Instagram and WhatsApp), MindBody, Toast, TikTok, OpenTable and Yelp;

• alternative web presence, social platform and marketing solutions such as Amazon, Google, Meta, 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.

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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, automatic renewal laws, taxation, liability for third-party activities, are particularly relevant to our business.

Regulations relating to the Internet, including laws governing online content, user privacy and data protection, automatic renewal laws, taxation, and 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) .

The CDA regulates content of material on the Internet, and provides immunity to Internet service providers and providers of interactive computer services for certain claims based on content posted by third parties.

The CDA and the case law interpreting it generally provide that domain name registrars and website hosting providers cannot be liable for defamatory or obscene content posted by customers on registrars' servers unless they participate in creating or developing the content.

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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 EU personal data with broad extra-territorial effect and imposes

significant penalties for non-compliance.

The GDPR includes stringent operational requirements for processors and controllers of E.U.

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.

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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.

It also is impossible to predict whether new taxes will be imposed on our services, and depending upon the type of such taxes, whether and how we would be affected.

Laws and regulations in the U.S.

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Further, other existing bodies of law, including the criminal laws of various jurisdictions, may be deemed to apply to our activities, or new statutes or regulations may be adopted in the future.

It is also impossible to predict whether new taxes will be imposed on our services, and depending upon the type of such taxes, whether and how we would be affected.

Intellectual Property and Proprietary Rights

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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