GoDaddy Inc.

Previous wording

We serve a large market of entrepreneurs through the development and delivery of easy-to-use products in a one stop shop solution alongside personalized guidance. We serve small businesses, individuals, organizations, developers, designers and domain investors. We manage and report our business in the following two segments:

Current wording

We serve a large market of entrepreneurs through the development and delivery of easy-to-use products in a one-stop shop solution backed by trusted, proactive, informed and personalized guidance. We serve small businesses, individuals, organizations, developers, designers and domain investors. We manage and report our business in the following two segments:

Previous wording

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

Current wording

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

Previous wording

•Net cash provided by operating activities of $444.2 million, an increase of 25.1%.

Current wording

•Net cash provided by operating activities of $471.5 million, an increase of 16.5%.

Previous wording

(2)In addition to the restructuring and other in our statements of operations, other charges are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, adjustments to the fair value of our equity investments, expenses incurred in relation to the refinancing of our long-term debt and incremental expenses associated with certain professional services.

Current wording

(1)In addition to the restructuring and other in our statements of operations, other charges are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, expenses incurred in relation to the refinancing of our long-term debt, acquisition-related expenses, and incremental expenses associated with certain professional services.

Previous wording

Total revenue increased 10.3% and 8.8% for the three and nine months ended, respectively, due to the increases in our A&C and Core revenues, as described below:

Current wording

Total revenue increased 6.1% for the three months ended March 31, 2026 due to the increases in our A&C and Core revenues, as described below:

Previous wording

A&C revenue grew $57.9 million, or 13.7%, for the three months ended September 30, 2025 and $179.5 million, or 14.8%, for the nine months ended September 30, 2025 due to continued customer adoption of our subscription-based products.

Current wording

The $51.8 million, or 11.6%, increase in A&C revenue for the three months ended March 31, 2026 was due to continued customer adoption of our subscription-based products.

Previous wording

Core revenue grew $59.8 million, or 8.3%, for the three months ended September 30, 2025 driven by $30.1 million growth in aftermarket revenue and $29.9 million growth in domain registration and add-on revenues.

Current wording

The $20.8 million, or 2.8%, increase in Core revenue for the three months ended March 31, 2026 was driven by $22.9 million growth in primary domain registrations and add-on revenues.

Previous wording

The $112.8 million, or 9.1%, increase in total bookings for the three months ended September 30, 2025 and the $300.5 million, or 7.9%, increase in total bookings for the nine months ended September 30, 2025 were driven by strength in domains and aftermarket and continued customer adoption of our subscription-based A&C products. For the nine months ended September 30, 2025, the increase was offset by a$9.4 million impact from changes in foreign currency exchange rates net of hedging gains from our cash flow hedging program.

Current wording

The $38.3 million, or 2.7%, increase in total bookings for the three months ended March 31, 2026 was driven by continued customer adoption of our subscription-based A&C products.

Previous wording

Cost of revenue primarily represents the direct costs incurred in connection with selling an incremental product to our customers. Such costs primarily relate to domain registration fees, payment processing fees, third-party commissions and licensing fees for third-party productivity applications. Similar to our billing practices, we pay domain costs at the time of purchase for the life of each subscription but recognize the costs of service ratably over the term of our customer contracts. The terms for domain costs are established by agreements between registries and registrars and can vary significantly depending on the top-level domain (TLD). We expect cost of revenue to increase in absolute dollars in future periods due to increased sales of domains and third-party productivity applications. However, cost of revenue may fluctuate as a percentage of total revenue, depending on the mix of products sold in a particular period.

Current wording

Cost of revenue is primarily the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost primarily relates to domain registration fees, fees for third-party productivity applications, third-party commissions and payment processing fees. Similar to our billing practices, we pay domain costs at the time of purchase for the life of each subscription but recognize the costs of service ratably over the term of our customer contracts. The terms for domain costs are established by agreements between registries and registrars and can vary significantly depending on the top-level domain (TLD). We expect cost of revenue to increase in absolute dollars in future periods due to increased sales of domains and third-party productivity applications. However, cost of revenue may fluctuate as a percentage of total revenue, depending on the mix of products sold in a particular period.

Previous wording

The $120.9 million, or 9.8%, increase in cost of revenue for the nine months ended September 30, 2025 were driven by the increases in revenue described above.

Current wording

The $18.6 million, or 4.2%, increase in cost of revenue for the three months ended March 31, 2026 was driven by the increases in revenue described above.

Previous wording

Technology and development expenses represent the costs associated with the creation, development and distribution of our products and websites. These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the operation of our data centers and systems infrastructure supporting those products, excluding depreciation expense. We expect technology and development expenses to decrease as a percentage of revenue in future periods following a period of investment in product development and migration toward a unified infrastructure platform.

Current wording

Technology and development expenses represent the costs associated with the creation, development and distribution of our products and services. These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the operation of our data centers and systems infrastructure supporting those products, excluding depreciation expense. We expect technology and development expenses to decrease as a percentage of revenue following a period of investment in product development and migration toward a unified infrastructure platform.

Previous wording

There was no material change in technology and development expenses for the three months ended September 30, 2025.

Current wording

The $7.9 million, or 3.8%, increase in technology and development expenses for the three months ended March 31, 2026, was primarily attributable to a $4.5 million increase in public cloud cost as we continue to migrate to a cloud-based infrastructure.

Previous wording

Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across a variety of channels. These expenses also include personnel costs and affiliate program commissions. We expect marketing and advertising expenses to fluctuate depending on both the mix of internal and external marketing resources used, the size and scope of our future campaigns and the level of discretionary investments we make in marketing to drive future sales.

Current wording

Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across a variety of channels. These expenses also include personnel costs and affiliate program commissions. We expect marketing and advertising expenses to fluctuate in the future depending on both the mix of internal and external marketing resources used, the size and scope of our campaigns and the level of discretionary investments we make in marketing to drive sales and to promote awareness of our AI-native solutions, including Airo.

Previous wording

There was no material change in customer care expenses for the three and nine months ended September 30, 2025.

Current wording

There was no material change in customer care expenses for the three months ended March 31, 2026.

Previous wording

There was no material change in general and administrative expenses for the three and nine months ended September 30, 2025.

Current wording

There was no material change in general and administrative expenses for the three months ended March 31, 2026.

Previous wording

There was no material change in interest expense for the three and nine months ended September 30, 2025.

Current wording

There was no material change in interest expense for the three months ended March 31, 2026.

Previous wording

There was no material change in other income (expense), net for the three and nine months ended September 30, 2025.

Current wording

There was no material change in other income (expense), net for the three months ended March 31, 2026.

Previous wording

The $25.3 million, or 13.0%, increase in A&C Segment EBITDA for the three months ended September 30, 2025 was attributed to a $57.9 million increase in revenue as described above. This increase was offset by a $32.6 million increase in other segment items driven by higher cost of revenue which was attributable to the increase in revenue as well as higher marketing costs (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense).

Current wording

The $28.3 million, or 14.4%, increase in A&C Segment EBITDA for the three months ended March 31, 2026 was attributed to a $51.8 million increase in revenue as described above. This increase was partially offset by a $15.1 million increase in cost of revenue attributable to the increase in revenue.

Previous wording

The $19.5 million, or 8.2%, increase in Core Segment EBITDA for the three months ended September 30, 2025 was attributed to a $59.8 million increase in revenue as described above. This increase was offset by a $40.3 million increase in other segment items driven by higher cost of revenue attributable to the increase in revenue.

Current wording

The $18.2 million, or 7.7%, increase in Core Segment EBITDA for the three months ended March 31, 2026 was attributed to a $20.8 million increase in revenue as described above.

Previous wording

Our principal sources of liquidity have been cash flow generated from operations and long-term debt borrowings. Our principal uses of cash have been to fund operations and capital expenditures, to make mandatory principal and interest payments on our long-term debt and to effectuate our share repurchase programs. Our liquidity position also benefits from U.S. and state DTAs such that we have not historically paid a significant amount of U.S. federal or state income taxes.

Current wording

Our principal sources of liquidity have been cash flow generated from operations and long-term debt borrowings. Our principal uses of cash have been to fund operations and capital expenditures, to make mandatory principal and interest payments on our long-term debt and to effectuate our share repurchase program. Our liquidity position also benefits from U.S. and state DTAs such that we have not historically paid a significant amount of U.S. federal or state income taxes.

Previous wording

Our investing activities generally consist of strategic investments, dispositions and purchases of property and equipment to support the overall growth of our business. We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures, strategic acquisitions or other growth opportunities we decide to pursue.

Current wording

Our investing activities generally consist of strategic investments, dispositions and purchases of property and equipment to support the overall growth of our business. We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures.

Previous wording

Net cash used in financing activities increased $703.5 million driven by a $714.9 million increase in share repurchases.

Current wording

Net cash used in financing activities decreased $487.0 million driven by lower share repurchases.

Previous wording

Our long-term debt consists of the Credit Facility, which includes two tranches of term loans and a revolving credit facility, and the Senior Notes. See Note 9 to our financial statements for additional information regarding our long-term debt.

Current wording

Our long-term debt consists of our Credit Facility, which includes two tranches of term loans and a revolving credit facility, and our Senior Notes. See Note 9 to our financial statements for additional information regarding our long-term debt.

Previous wording

Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions. As of September 30, 2025, we were in compliance with all such covenants and had $998.7 million available for borrowing under the Revolver.

Current wording

Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions. As of March 31, 2026, we were in compliance with all such covenants and had $998.6 million available for borrowing under the Revolver.

Previous wording

In April 2025, the board approved the repurchase of up to an additional $3,000.0 million of our Class A common stock through the end of 2027 as further discussed in Note 4 to the financial statements. Under this repurchase plan, we repurchased a total of approximately 4.2 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $625.3 million during the nine months ended September 30, 2025.

Current wording

In April 2025, the board approved the repurchase of up to $3.0 billion of our Class A common stock through the end of 2027 as further discussed in Note 4 to the financial statements. During the three months ended March 31, 2026, we repurchased a total of approximately 3.0 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $279.7 million.