Risk Factors Update Summary

• Transition from "data security" to "cybersecurity" highlights increased focus on cybersecurity risks.
• The company launched GoDaddy Airo in the U.S., an AI-powered solution, in 2023, expanding commerce offerings. This new AI technology introduces significant risks and costs.
• Expenditure increase from $352.9 million in 2022 to $412.3 million in 2023 on marketing and advertising.
• Subject to restrictions with respect to payments-related operations and products under agreements with payment card networks and third-party providers.
• The company announced a restructuring plan in February 2023, reducing the workforce by approximately 8% and recording restructuring charges of $35.1 million. Further restructuring in Q3 2023 impacted around 250 employees, with additional pre-tax charges of $13.4 million.
• Pending U.S. and international patent applications increased from 9 to 12 by 2023.
• Increased share repurchase authorization from $2.0 billion to $4.0 billion, with $1.6995 billion remaining for repurchases.
• The company faces increased competition from various competitors, including major players like Google, Amazon, and Microsoft, which may impact profitability and market share.
• Board of directors declassification phased approach starting in 2023, fully declassified by 2025 annual meeting.
• The company relies heavily on third parties for key functions, and any failure on their part could result in significant costs, reputational damage, and operational disruptions.
• The company's expansion into international markets exposes it to various risks, including regulatory burdens, foreign currency risks, geopolitical changes, and increased costs, potentially impacting profitability.
• The company's reliance on AI technologies introduces risks related to intellectual property infringement, data privacy, cybersecurity, and regulatory scrutiny, which could affect business operations and financial results.
• The company's ongoing efforts to enhance cybersecurity and resilience against social engineering are crucial, as failure to protect against unauthorized access or data breaches could lead to financial, operational, and reputational harm.