10-K: GoDaddy Inc. Outlines Capital Structure and Financial Performance in 10-K Filing

• GoDaddy Inc.'s 10-K filing provides a comprehensive overview of the company's business, financial performance, and future strategies.
• The company's authorized capital stock includes 1 billion shares of Class A common stock, 500 million shares of Class B common stock, and 50 million shares of preferred stock.
• Class A common stock holders are entitled to dividends and one vote per share, while Class B common stock holders do not receive dividends but also have one vote per share.
• GoDaddy's revenue reached $4.254 billion in 2023, a 4% increase from $4.091 billion in 2022, with total bookings up 4.3% to $4.603 billion.
• The company's customer retention rate was approximately 85% in 2023, and 92% for customers who have been with them for over three years.
• GoDaddy has 21 million customers, with over 1.5 million spending more than $500 annually.
• The company operates through two segments: Applications and Commerce (A&C) and Core Platform (Core).
• A&C revenue grew by 11.8%, while Core revenue increased by 0.4% in 2023.
• GoDaddy launched GoDaddy Airo, an AI-powered solution, in the U.S. in 2023.
• The company has 85 million domains under management, representing approximately 24% of the global market.
• GoDaddy's technology and development expenses were $840 million in 2023.
• The company has 368 issued patents and 12 pending patent applications.
• GoDaddy employs 6,159 people worldwide, with 2,708 in care and services and 2,259 in technology and development.
• The company has a strong focus on diversity, equity, inclusion, and belonging, and has published annual diversity and pay parity reports since 2015.
• GoDaddy is subject to various regulations, including those from ICANN, and is also subject to privacy and data protection laws such as GDPR and CCPA.
• The company has identified a material weakness in its internal control over financial reporting related to income taxes.

Score: 6

Explanation: The document presents a mixed sentiment. While GoDaddy shows positive revenue growth and strong customer retention, the identification of a material weakness in internal controls and the competitive landscape temper the overall outlook. The company's strategic initiatives and investments in AI are positive, but the risks and challenges outlined in the document prevent a higher sentiment score.

• GoDaddy experienced a 4% increase in revenue and a 4.3% increase in total bookings in 2023.
• The company maintains a high customer retention rate, with 85% overall and 92% for long-term customers.
• GoDaddy has a large customer base of 21 million, with a significant number of high-spending customers.
• The A&C segment showed strong revenue growth of 11.8% in 2023.
• GoDaddy is a leader in domain name registration, managing 85 million domains.
• The company is investing heavily in technology and development, with expenses reaching $840 million in 2023.
• GoDaddy is committed to diversity and inclusion, with ongoing efforts to ensure pay parity.
• The launch of GoDaddy Airo demonstrates the company's focus on innovation and AI.

• The Core Platform segment experienced only a 0.4% revenue increase in 2023.
• The company identified a material weakness in its internal control over financial reporting related to income taxes.
• GoDaddy is subject to various regulations and legal obligations, which could lead to compliance costs and potential liabilities.
• The company is exposed to risks related to cybersecurity incidents and data breaches.
• Restructuring activities in 2023 resulted in significant charges and workforce reductions.

• GoDaddy faces significant competition in both its A&C and Core Platform segments.
• The company's restructuring activities may not adequately reduce operating costs or improve margins.
• International expansion exposes GoDaddy to additional risks, including currency fluctuations and regulatory challenges.
• System failures, security breaches, and cybersecurity incidents could disrupt services and harm the company's reputation.
• The company's level of indebtedness could adversely affect its financial condition and ability to raise capital.
• Changes in governmental regulations concerning the domain name system and the Internet could disrupt GoDaddy's business.
• The company may face liability or disputes over domain name registration and control of websites.
• Shareholder activism could negatively impact GoDaddy's business and operations.
• The company's share price may be volatile, and investors could lose part or all of their investment.
• The company has identified a material weakness in its internal control over financial reporting, which could impair its ability to produce timely and accurate financial statements.

The document includes forward-looking statements regarding the company's ability to add new customers, develop new solutions, manage growth, and maintain profitability, among other things. It also mentions the company's plans to continue investing in technology and data platforms to harness the power of generative AI.

• Our vision is to radically shift the global economy toward life-fulfilling entrepreneurial ventures.
• Our mission is to empower entrepreneurs everywhere, making opportunity more inclusive for all.
• We are passionate about our mission and honored that entrepreneurs trust their ideas with us.
• We believe engaging with our customers in a proactive, consultative way through personalized guidance via phone and/or digital experiences sets them up to succeed.
• We live by the same principles that enable our customers' ideas to survive and thrive, including owning outcomes, building value, joining forces, working courageously and living passionately.

GoDaddy operates in a highly competitive and fragmented market for cloud-based solutions, facing competition from both niche point-solution providers and larger technology companies. The company's focus on serving entrepreneurs and small businesses positions it within a growing market segment, but it must continue to innovate and adapt to changing customer needs and technological advancements.

• GoDaddy's customer retention rate of 85% is strong compared to industry averages, indicating a high level of customer satisfaction and loyalty.
• The company's investment in technology and development, with expenses reaching $840 million, is significant and demonstrates a commitment to innovation, which is crucial in the competitive tech industry.
• GoDaddy's domain management portfolio of 85 million domains is a leading position in the market, showcasing its dominance in this area.
• Compared to competitors like Wix and Squarespace, GoDaddy offers a broader range of services, including domain registration, hosting, and commerce solutions, positioning it as a one-stop shop for entrepreneurs.
• While companies like Shopify and Block focus on e-commerce, GoDaddy's integrated approach with website building and marketing tools provides a more comprehensive solution for small businesses.
• GoDaddy's focus on personalized guidance through its GoDaddy Guides is a differentiator compared to competitors that primarily offer self-service solutions.
• The company's launch of GoDaddy Airo, an AI-powered solution, is in line with industry trends of incorporating AI into business tools, but its effectiveness and adoption will need to be monitored against competitors' offerings.

• Shareholders may experience volatility in the stock price due to market conditions and company performance.
• Employees may be affected by restructuring activities and changes in working arrangements.
• Customers may benefit from new products and services, but could also be impacted by service disruptions or security breaches.
• Suppliers and partners may be affected by changes in GoDaddy's business strategy and financial performance.
• Creditors may be impacted by GoDaddy's level of indebtedness and ability to repay its debt.

• GoDaddy will continue to invest in its technology and data platforms to harness the power of generative AI.
• The company will continue to strategically expand internationally, growing its share and increasing penetration of the international markets it has entered in recent years.
• GoDaddy will continue to innovate in commerce solutions that are easy-to-use, allow customers to sell anywhere, and offer industry-low card transaction pricing.
• The company will continue to work to remediate the identified material weakness in its internal control over financial reporting.

• GoDaddy is involved in a shareholder derivative lawsuit related to the approval of the TRA Settlement Agreements.
• The company is also responding to requests for information from the FTC regarding a cybersecurity incident in 2020.
• GoDaddy is subject to various other legal proceedings, claims, and regulatory inquiries in the ordinary course of business.

• May 28, 2014: GoDaddy Inc. was incorporated in Delaware.
• December 11, 2023: GoDaddy completed the DNC Restructure, making Desert Newco, LLC a wholly-owned subsidiary.
• December 31, 2023: End of the fiscal year for which the 10-K report was filed.
• February 23, 2024: Date of share information provided in the 10-K report.
• February 29, 2024: Date of the 10-K filing.