Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36904 | ||
Entity Registrant Name | GoDaddy Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-5769934 | ||
Entity Address, Address Line One | 2155 E. GoDaddy Way | ||
Entity Address, City or Town | Tempe | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85284 | ||
City Area Code | 480 | ||
Local Phone Number | 505-8800 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | ||
Trading Symbol | GDDY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11.1 | ||
Documents Incorporated by Reference | Portions of the registrant's Definitive Proxy Statement relating to the Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant's fiscal year ended December 31, 2023. | ||
Entity Central Index Key | 0001609711 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 142,478,402 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 25 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Phoenix, Arizona |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 458.8 | $ 774 |
Short-term investments | 40 | 0 |
Accounts and other receivables | 76.6 | 60.1 |
Registry deposits | 37.3 | 41 |
Prepaid domain name registry fees | 466 | 435.7 |
Other | 177.2 | 271.8 |
Total current assets | 1,255.9 | 1,582.6 |
Property and equipment, net | 185.3 | 225.6 |
Operating lease assets | 60.8 | 84.1 |
Prepaid domain name registry fees, net of current portion | 209 | 197.1 |
Goodwill | 3,569.3 | 3,536.9 |
Intangible assets, net | 1,158.6 | 1,252.2 |
Deferred tax assets | 1,020.4 | 5.4 |
Other assets | 105.6 | 89.6 |
Total assets | 7,564.9 | 6,973.5 |
Current liabilities: | ||
Accounts payable | 148.1 | 130.9 |
Accrued expenses and other current liabilities | 442.2 | 356.7 |
Deferred revenue | 2,074.9 | 1,954 |
Long-term debt | 17.9 | 18.2 |
Total current liabilities | 2,683.1 | 2,459.8 |
Deferred revenue, net of current portion | 802.4 | 770.3 |
Long-term debt, net of current portion | 3,798.5 | 3,812.9 |
Operating lease liabilities, net of current portion | 90.2 | 116.5 |
Other long-term liabilities | 90.7 | 87.1 |
Deferred tax liabilities | 37.8 | 56.2 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 2,271.6 | 1,912.6 |
Accumulated deficit | (2,320.7) | (2,422.6) |
Accumulated other comprehensive income | 111.2 | 178 |
Total stockholders' equity (deficit) attributable to GoDaddy Inc. | 62.2 | (331.8) |
Non-controlling interests | 0 | 2.5 |
Total stockholders' equity (deficit) | 62.2 | (329.3) |
Total liabilities and stockholders' equity (deficit) | 7,564.9 | 6,973.5 |
Class A Common Stock | ||
Stockholders' equity (deficit): | ||
Common stock | 0.1 | 0.2 |
Class B Common Stock | ||
Stockholders' equity (deficit): | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued (in shares) | 142,051,000 | 153,830,000 |
Common stock outstanding (in shares) | 142,051,000 | 153,830,000 |
Class B Common Stock | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock shares issued (in shares) | 259,000 | 312,000 |
Common stock outstanding (in shares) | 259,000 | 312,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue: | ||||
Revenue | $ 4,254.1 | $ 4,091.3 | $ 3,815.7 | |
Costs and operating expenses: | ||||
Cost of revenue (excluding depreciation and amortization) | [1] | 1,573.6 | 1,484.5 | 1,372.2 |
Technology and development | [1] | 839.6 | 794 | 706.3 |
Marketing and advertising | [1] | 352.9 | 412.3 | 503.9 |
Customer care | [1] | 304.5 | 305.9 | 306.1 |
General and administrative | [1] | 374 | 385.5 | 345.8 |
Restructuring and other | [1] | 90.8 | 15.7 | (0.3) |
Depreciation and amortization | [1] | 171.3 | 194.6 | 199.6 |
Total costs and operating expenses | [1] | 3,706.7 | 3,592.5 | 3,433.6 |
Operating income | 547.4 | 498.8 | 382.1 | |
Interest expense | (179) | (146.3) | (126) | |
Loss on debt extinguishment | (1.5) | (3.6) | 0 | |
Other income (expense), net | 36.9 | 7.6 | (2.5) | |
Income before income taxes | 403.8 | 356.5 | 253.6 | |
Benefit (provision) for income taxes | 971.8 | (3.6) | (10.8) | |
Net income | 1,375.6 | 352.9 | 242.8 | |
Less: net income attributable to non-controlling interests | 0.8 | 0.7 | 0.5 | |
Net income attributable to GoDaddy Inc. | 1,374.8 | 352.2 | 242.3 | |
A&C | ||||
Revenue: | ||||
Revenue | 1,430.4 | 1,279.7 | 1,128.3 | |
Core | ||||
Revenue: | ||||
Revenue | $ 2,823.7 | $ 2,811.6 | $ 2,687.4 | |
Class A Common Stock | ||||
Net income attributable to GoDaddy Inc. per share of Class A common stock: | ||||
Basic (in USD per share) | $ 9.27 | $ 2.22 | $ 1.44 | |
Diluted (in USD per share) | $ 9.08 | $ 2.19 | $ 1.42 | |
Weighted-average shares of Class A common stock outstanding: | ||||
Basic (in shares) | 148,296 | 158,788 | 167,906 | |
Diluted (in shares) | 151,452 | 161,457 | 171,105 | |
[1] (1) Costs and operating expenses include equity-based compensation expense as follows: Cost of revenue $ 1.3 $ 1.5 $ 0.9 Technology and development $ 162.4 $ 140.3 $ 110.0 Marketing and advertising $ 27.9 $ 29.1 $ 24.8 Customer care $ 24.1 $ 20.0 $ 14.1 General and administrative $ 78.3 $ 73.5 $ 58.1 Total equity-based compensation expense $ 296.3 $ 264.4 $ 207.9 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity-based compensation expense | $ 296.3 | $ 264.4 | $ 207.9 |
Cost of revenue | |||
Equity-based compensation expense | 1.3 | 1.5 | 0.9 |
Technology and development | |||
Equity-based compensation expense | 162.4 | 140.3 | 110 |
Marketing and advertising | |||
Equity-based compensation expense | 27.9 | 29.1 | 24.8 |
Customer care | |||
Equity-based compensation expense | 24.1 | 20 | 14.1 |
General and administrative | |||
Equity-based compensation expense | 78.3 | 73.5 | 58.1 |
Restructuring and other | |||
Equity-based compensation expense | $ 2.3 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,375.6 | $ 352.9 | $ 242.8 | |
Foreign exchange forward contracts gain (loss), net | [1] | (24.3) | 24.3 | 16.3 |
Unrealized swap gain (loss), net | [1] | (34.1) | 214.9 | 30.7 |
Change in foreign currency translation adjustment | [1] | (8.6) | (22.1) | 45.9 |
Comprehensive income | 1,308.6 | 570 | 335.7 | |
Less: comprehensive income attributable to non-controlling interests | 1 | 1.1 | 0 | |
Comprehensive income attributable to GoDaddy Inc. | $ 1,307.6 | $ 568.9 | $ 335.7 | |
[1] Amounts are net of the income tax effects reflected below: Foreign exchange forward contracts gain (loss), net -5.5 0 0 Unrealized swap gain (loss), net (25.0) (2.6) 2.2 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign exchange forward contracts gain (loss), net | $ (5.5) | $ 0 | $ 0 |
Unrealized swap gain (loss), net | $ (25) | $ (2.6) | $ 2.2 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non- Controlling Interests | |||
Beginning balance (in shares) at Dec. 31, 2020 | 169,157 | 688 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ (11.8) | $ 0.2 | $ 0 | $ 1,308.8 | $ (1,190.9) | $ (131) | $ 1.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 242.8 | 242.3 | 0.5 | |||||||||
Equity-based compensation, including amounts capitalized | 211.9 | 211.9 | ||||||||||
Repurchases of Class A common stock (in shares) | (3,500) | (6,925) | ||||||||||
Repurchases of Class A common stock | (526) | $ (275.9) | (526) | |||||||||
Stock option exercises (in shares) | 1,167 | |||||||||||
Stock option exercises | 42.7 | 43.4 | (0.7) | |||||||||
Issuances of Class A common stock under employee stock purchase plan (in shares) | 489 | |||||||||||
Issuances of Class A common stock under employee stock purchase plan | 30.7 | 30.7 | ||||||||||
Impact of derivatives, net | 47 | 47 | ||||||||||
Change in foreign currency translation adjustment | 45.9 | 45.9 | ||||||||||
Vesting of restricted stock units and other (in shares) | 3,013 | (368) | ||||||||||
Vesting of restricted stock units and other | 0 | (0.1) | (0.5) | 0.6 | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 166,901 | 320 | ||||||||||
Ending balance at Dec. 31, 2021 | 83.2 | $ 0.2 | $ 0 | 1,594.7 | (1,474.6) | (38.6) | 1.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 352.9 | 352.2 | 0.7 | |||||||||
Equity-based compensation, including amounts capitalized | 267.8 | 267.8 | ||||||||||
Repurchases of Class A common stock (in shares) | (7,642) | (16,844) | ||||||||||
Repurchases of Class A common stock | (1,300.3) | $ (550.1) | (1,300.3) | |||||||||
Stock option exercises (in shares) | 536 | |||||||||||
Stock option exercises | 19.9 | 20 | (0.1) | |||||||||
Issuances of Class A common stock under employee stock purchase plan (in shares) | 495 | |||||||||||
Issuances of Class A common stock under employee stock purchase plan | 30.1 | 30.1 | ||||||||||
Impact of derivatives, net | 239.2 | 239.2 | ||||||||||
Change in foreign currency translation adjustment | (22.1) | (22.1) | ||||||||||
Vesting of restricted stock units and other (in shares) | 2,742 | (8) | ||||||||||
Vesting of restricted stock units and other | 0 | 0.1 | (0.5) | 0.4 | ||||||||
Ending balance (in shares) at Dec. 31, 2022 | 153,830 | 312 | 153,830 | 312 | ||||||||
Ending balance at Dec. 31, 2022 | (329.3) | $ 0.2 | $ 0 | 1,912.6 | (2,422.6) | 178 | 2.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,375.6 | 1,374.8 | 0.8 | |||||||||
Equity-based compensation, including amounts capitalized | 298.4 | 298.4 | ||||||||||
Repurchases of Class A common stock (in shares) | (17,356) | (17,356) | [1] | |||||||||
Repurchases of Class A common stock | (1,272.9) | [1] | $ (1,264.4) | (1,272.9) | [1] | |||||||
Stock option exercises (in shares) | 557 | |||||||||||
Stock option exercises | 19.6 | 19.8 | (0.2) | |||||||||
Issuances of Class A common stock under employee stock purchase plan (in shares) | 492 | |||||||||||
Issuances of Class A common stock under employee stock purchase plan | 30 | 30 | ||||||||||
Impact of derivatives, net | (58.4) | (58.4) | ||||||||||
Change in foreign currency translation adjustment | (8.6) | (8.6) | ||||||||||
Impact of DNC Restructuring (in shares) | 270 | |||||||||||
Impact of DNC Restructure | 6.8 | 9.3 | (2.5) | |||||||||
Vesting of restricted stock units and other (in shares) | 4,258 | (53) | ||||||||||
Vesting of restricted stock units and other | 1 | $ (0.1) | 1.5 | 0.2 | (0.6) | |||||||
Ending balance (in shares) at Dec. 31, 2023 | 142,051 | 259 | 142,051 | 259 | ||||||||
Ending balance at Dec. 31, 2023 | $ 62.2 | $ 0.1 | $ 0 | $ 2,271.6 | $ (2,320.7) | $ 111.2 | $ 0 | |||||
[1]Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $8.5 million |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating activities | ||||
Net income | $ 1,375.6 | $ 352.9 | $ 242.8 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | [1] | 171.3 | 194.6 | 199.6 |
Equity-based compensation | 296.3 | 264.4 | 207.9 | |
Loss (gain) on derivative instruments | (12) | 27.6 | 6.3 | |
Non-cash restructuring and other charges | 6.1 | 10.4 | 15.1 | |
Deferred taxes | (993.2) | (18.4) | (16.1) | |
Loss on dispositions | 16.5 | 0 | 0 | |
Other | 56.5 | 66.8 | 30.7 | |
Changes in operating assets and liabilities, net of amounts acquired: | ||||
Prepaid domain name registry fees | (41.9) | (34.7) | (37.8) | |
Accounts payable | 28.3 | 35.1 | 34.2 | |
Accrued expenses and other current liabilities | 56.2 | 11.3 | 40.9 | |
Deferred revenue | 149.2 | 101.6 | 190.7 | |
Other operating assets and liabilities | (61.3) | (31.9) | (85) | |
Net cash provided by operating activities | 1,047.6 | 979.7 | 829.3 | |
Investing activities | ||||
Purchases of short-term investments | (40) | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | (72.5) | (367.7) | |
Purchases of intangible assets | (35.4) | (0.4) | (202.1) | |
Net proceeds received from dispositions | 12.7 | 0 | 0 | |
Purchases of property and equipment | (42) | (59.7) | (51.1) | |
Purchases of equity investments | (0.5) | 0 | (40) | |
Other investing activities, net | 2.8 | 0.6 | 25.3 | |
Net cash used in investing activities | (102.4) | (132) | (635.6) | |
Proceeds received from: | ||||
Issuance of term loans | 1,759.9 | 1,725.3 | 0 | |
Issuance of Senior Notes | 0 | 0 | 800 | |
Stock option exercises | 19.6 | 19.9 | 42.7 | |
Issuance of Class A common stock under employee stock purchase plan | 30 | 30.1 | 30.7 | |
Payments made for: | ||||
Repurchases of Class A common stock | (1,270.2) | (1,294.6) | (526) | |
Repayment of term loans | (1,786.3) | (1,789.9) | (32.4) | |
Financing-related costs | 0 | (4.2) | (9.6) | |
Contingent consideration for business acquisitions | (7.5) | (9.3) | (4.7) | |
Other financing obligations | (7.2) | (4) | (2.6) | |
Net cash provided by (used in) financing activities | (1,261.7) | (1,326.7) | 298.1 | |
Effect of exchange rate changes on cash and cash equivalents | 1.3 | (2.7) | (1.3) | |
Net increase (decrease) in cash and cash equivalents | (315.2) | (481.7) | 490.5 | |
Cash and cash equivalents, beginning of period | 774 | 1,255.7 | 765.2 | |
Cash and cash equivalents, end of period | 458.8 | 774 | 1,255.7 | |
Cash paid during the period for: | ||||
Interest on long-term debt, including impact of interest rate swaps | 169.8 | 127.3 | 104.2 | |
Income taxes, net of refunds received | 10.6 | 11.2 | 19.1 | |
Amounts included in the measurement of operating lease liabilities | 44.4 | 50 | 54.4 | |
Supplemental disclosure of non-cash transactions | ||||
Operating lease assets obtained in exchange for operating lease obligations | 8.3 | 14.9 | 14.8 | |
Acquisition date fair value of contingent consideration | 0 | 0 | 18.5 | |
Accrued purchases of property and equipment at period end | 1.9 | 12.4 | 1.2 | |
Share repurchases not yet settled | $ 0 | $ 5.8 | $ 0 | |
[1] (1) Costs and operating expenses include equity-based compensation expense as follows: Cost of revenue $ 1.3 $ 1.5 $ 0.9 Technology and development $ 162.4 $ 140.3 $ 110.0 Marketing and advertising $ 27.9 $ 29.1 $ 24.8 Customer care $ 24.1 $ 20.0 $ 14.1 General and administrative $ 78.3 $ 73.5 $ 58.1 Total equity-based compensation expense $ 296.3 $ 264.4 $ 207.9 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Fair market value of new share issuances | $ 8.5 |
Organization and Background
Organization and Background | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background Description of Business We deliver simple, easy-to-use cloud-based products, outcome-driven, personalized guidance and ease and access to payment systems. Our products enable our customers to establish a digital presence, connect with their customers and manage their presence. Organization We are the sole managing member of Desert Newco, LLC (Desert Newco), and as a result, we consolidate its financial results and report non-controlling interests representing the economic interests held by other members. The calculation of non-controlling interests excludes any net income attributable directly to GoDaddy Inc. As of December 31, 2023, we owned 100.0% of Desert Newco. On December 11, 2023, we completed a series of transactions (the DNC Restructure) designed to simplify our capital structure, commonly referred to as an "Up-C" structure, and provide us with additional strategic flexibility which resulted in Desert Newco becoming a wholly-owned subsidiary of GoDaddy Inc. Pursuant to the DNC Restructure, 271 Limited Liability Company Units (LLC Units) of Desert Newco not held by us or our subsidiaries were cancelled and converted into 271 newly issued shares of our Class A common stock. Each LLC Unit formerly held by such other unitholders was paired with one share of our Class B common stock, which shares of Class B common stock remained outstanding immediately following the DNC Restructure. To the extent the shares of Class B common stock remain outstanding, the holders are entitled to one vote for each share held of record on all matters submitted to a vote of our stockholders, but such shares have no economic rights and are non-transferrable. As of December 31, 2023, 259 Class B shares were outstanding. Basis of Presentation Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated. Prior Period Reclassifications Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation. Use of Estimates GAAP requires us to make estimates and assumptions affecting amounts reported in our financial statements. Our more significant estimates include: • the relative stand-alone selling price (SSP) of the indicated performance obligations included in revenue arrangements with multiple performance obligations; • the estimated reserve for refunds; • the fair value of assets acquired and liabilities assumed in business acquisitions; • the assessment of recoverability of our goodwill, intangible assets and long-lived assets; • the estimated useful lives of intangible and depreciable assets; • the fair value of financial instruments; • the recognition, measurement and valuation of current and deferred income taxes; and • the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ. Segments We report our operating results through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core), as further discussed in Note 18. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, other highly liquid investments with a remaining maturity of 90 days or less at the date of acquisition and receivables related to third-party payment processor transactions normally received within 72 hours. Amounts receivable for payment processor transactions totaled $41.2 million and $30.4 million at December 31, 2023 and 2022, respectively. Short-Term Investments Our short-term investments consist of instruments with a remaining maturity in excess of 90 days at the date of acquisition, which are carried at fair value. The estimated fair value of our short-term investments is determined based on quoted market prices and approximated historical cost. We did not have any material realized or unrealized gains or losses on sales of short-term investments during any of the periods presented. We classify our short-term investments as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell our short-term investments at any time for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we classify our short-term investments, including investments with maturities beyond 12 months, as current assets. Registry Deposits Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future domain registrations or renewals. Prepaid Domain Name Registry Fees Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts. Property and Equipment Property and equipment is stated at cost. Depreciation is recorded over the estimated useful lives of the applicable assets using the straight-line method beginning on the date an asset is placed in service. We regularly evaluate the estimated useful lives to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation. Property and equipment consisted of the following: Estimated December 31, 2023 2022 Computer equipment 3 years $ 438.6 $ 486.1 Software 3-5 years 98.8 87.6 Land Indefinite 4.8 5.9 Buildings, including improvements 5-40 years 115.0 126.3 Leasehold improvements Lesser of useful life or remaining lease term 76.7 78.8 Other 1-20 years 16.3 18.0 Total property and equipment 750.2 802.7 Less: accumulated depreciation and amortization (564.9) (577.1) Property and equipment, net $ 185.3 $ 225.6 Depreciation and amortization expense related to property and equipment was $61.3 million, $61.2 million and $68.4 million during 2023, 2022 and 2021, respectively. Property and equipment, net by geography was as follows: December 31, 2023 2022 U.S. $ 146.9 $ 167.5 France 19.8 28.8 All other international 18.6 29.3 $ 185.3 $ 225.6 No other international country represented more than 10% of property and equipment, net in any period presented. Capitalized Software Costs We capitalize and amortize certain implementation costs related to cloud computing arrangements as well as costs incurred to develop software for internal-use during the application development phase. Costs related to the design or maintenance of internal-use software are included in technology and development expenses as incurred. We capitalized $17.9 million and $17.7 million of such costs during 2023 and 2022, respectively. Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business acquisitions. Indefinite-lived intangible assets consist of the GoDaddy trade names and branding, our domain portfolio and certain contractual-based assets. Goodwill and indefinite-lived intangible assets are not amortized to earnings, but are assessed for impairment at least annually. As individual domains are sold, our indefinite-lived domain portfolio intangible asset is reduced by the allocated carrying cost of each domain, which is included in cost of revenue. Goodwill is assessed for impairment annually during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying value may not be recoverable. If, based on qualitative analysis, we determine it is more-likely-than-not the fair value of either of our reporting units is less than its carrying amount, a quantitative impairment test is performed. Our qualitative analysis did not indicate impairment of our goodwill during any of the periods presented. Our indefinite-lived trade names and branding, domain portfolio and contractual-based assets are reviewed for impairment annually during the fourth quarter of each year. We also perform assessments at other times if events or changes in circumstances indicate the carrying amounts of these assets may not be fully recoverable. Any identified impairment losses are treated as permanent reductions in the carrying amounts of the assets. Our qualitative analysis did not indicate impairment of our indefinite-lived assets during any of the periods presented. Long-Lived and Finite-Lived Intangible Assets Finite-lived intangible assets are amortized over the following estimated useful lives: Customer relationships 2-9 years Developed technology 2-7 years Trade names and other 1-10 years Our finite-lived intangible assets are primarily amortized on a straight-line basis. We annually evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset. Our analysis did not indicate impairment during any of the periods presented. Debt Issuance Costs We capitalize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments and amortize such costs using the interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit facility, are reflected as a direct reduction of the carrying amount of the related debt liability. Debt issuance costs related to our revolving credit facility are reflected as an asset. Derivative Financial Instruments We are exposed to changes in foreign currency exchange rates, primarily relating to intercompany debt, the net assets of our foreign operations and sales transactions denominated in currencies other than the U.S. dollar, as well as to changes in interest rates as a result of our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risks. We do not enter into derivative transactions for speculative or trading purposes. We utilize a variety of derivative instruments and expect that each derivative instrument qualifying for hedge accounting will be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument designated as a hedge, we formally document, at inception, the related risk management strategy and objective, including identification of the hedging instrument, the hedged item and the risk of exposure. In addition, we formally assess, both at the inception and at least quarterly thereafter, whether the financial instruments used in the hedging transactions are effective at offsetting changes in either the fair values or cash flows of the relating underlying exposures. Our derivative instruments are recorded at fair value on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged. Cash Flow Hedges We utilize a variety of derivative instruments designated as cash flow hedges: • foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currencies; • cross-currency swaps used to manage variability due to movements in foreign currency exchange rates related to a Euro-denominated intercompany loan; and • pay-fixed rate, receive-floating rate interest rate swaps to effectively convert portions of our variable-rate debt to fixed. We reflect unrealized gains or losses on our cash flow hedges as components of accumulated other comprehensive income (loss) (AOCI). Gains and losses on these instruments are recorded as a component of AOCI until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from AOCI to earnings within the same line items as the underlying transactions. At inception, and each reporting period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective. Net Investment Hedges We use cross-currency swaps to reduce the risk associated with exchange rate fluctuations on our net investments in certain foreign operations. Changes in the fair value of these derivative instruments are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments (CTA). We elected to use the spot method to assess effectiveness of these derivatives. Under this method, changes in fair value of the hedging instruments attributed to changes in spot rates are initially recorded in the CTA component of AOCI and will remain there until the hedged net investments are sold or substantially liquidated. Changes in fair value of the hedging instruments other than those due to changes in the spot rate are initially recorded in the CTA component of AOCI and are amortized to interest expense using a systematic and rational method over the instruments' term. See Note 11 for further discussion of our derivative instruments. Leases We lease office and data center space in various locations. We determine whether a contract contains a lease at contract inception. We have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. This election is made by class of underlying asset and was elected for our leases of office space, data center space and server equipment. We initially recognize and measure contracts containing a lease and determine lease classification at commencement. Right-of-use (ROU) assets and operating lease liabilities are measured based on the estimated present value of lease payments over the lease term. In determining the present value of lease payments, we use our estimated incremental borrowing rate when the rate implicit in the lease cannot be readily determined. The estimated incremental borrowing rate is based upon information available at lease commencement including publicly available data for debt instruments. The lease term includes periods covered by options to extend when it is reasonably certain we will exercise such options as well as periods subsequent to an option to terminate the lease if it is reasonably certain we will not exercise the termination option. Operating lease costs are recognized on a straight-line basis over the lease term while finance leases result in a front-loaded expense pattern. Variable lease costs, such as management fees, insurance, and common area maintenance, are not included in the measurement of ROU assets and lease liabilities and are expensed as incurred. On our balance sheets, assets and liabilities associated with operating leases are included within operating lease assets, accrued expenses and other current liabilities and operating lease liabilities. Assets and liabilities associated with finance leases are included in property and equipment, net, accrued expenses and other current liabilities and other long-term liabilities. Equity Investments We hold investments in privately held equity securities, which are recorded in other assets and were as follows: Equity Investments Equity investments as of December 31, 2021 $ 40.0 Fair market value adjustments (1) 0.5 Equity investments as of December 31, 2022 40.5 Fair market value adjustments (1) 14.4 Impairment losses (1) (2.3) Additional investments 0.5 Equity investments as of December 31, 2023 $ 53.1 _________________________________ (1) Fair market value adjustments and impairment losses are recorded in other income (expense), net. These securities are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer or impairment. Investment gains and losses are recorded in other income (expense), net. Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available observable market data. A security's carrying value is not adjusted if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment. In determining the estimated fair value of our investments, we utilize the most recent data available to us. We assess our investments for impairment at least quarterly using both qualitative and quantitative factors. If an investment is considered impaired, we recognize an impairment loss and establish a new carrying value for the investment. Our analysis did not indicate impairment of our investments as of December 31, 2023. Foreign Currency Our functional and reporting currency is the U.S. dollar. Assets denominated in foreign currencies are remeasured into United States (U.S.) dollars at period-end exchange rates. Foreign currency-based revenue and expense transactions are measured at transaction date exchange rates. Foreign currency remeasurement gains and losses are recorded in other income (expense), net and were $(9.6) million, $(15.7) million and $(10.5) million during 2023, 2022 and 2021, respectively. For certain of our foreign subsidiaries whose functional currency is other than the U.S. dollar, we translate revenue and expense transactions at average exchange rates. We translate assets and liabilities at period-end exchange rates and include foreign currency translation gains and losses as a component of AOCI. Revenue Recognition Revenue is recognized when control of the promised product or service (product) is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for such product. We typically receive payment at the time of sale, the purpose of which is to provide our customers with a simplified and predictable way of purchasing our products. We have determined that our contracts do not include a significant financing component. Payments received in advance of our performance are initially recorded as deferred revenue and then recognized as revenue on a straight-line basis over the term of the contract. Revenue is recognized net of allowances for returns and applicable transaction-based taxes collected from customers. Our products are generally sold with a right of return within our policy, which is accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds result in a reduced amount of revenue recognized over the contract term of the applicable product. Our revenue is categorized as follows: Applications and Commerce . A&C revenue primarily consists of revenue from sales of products containing proprietary software such as Websites + Marketing and Managed WordPress and commerce products such as payment processing fees and point-of-sale (POS) hardware as well as sales of third-party email and productivity solutions such as Microsoft 365. A&C revenue also includes revenue from sales of products, such as website security products, when they are included in bundled offerings of our proprietary software products. Consideration is generally recorded as deferred revenue when received, which is typically at the time of sale, and revenue from most A&C products is recognized ratably over the period in which the performance obligations are satisfied, which is typically over the contract term. Payment processing fee revenue is recognized at the time of the transaction and revenue from the sale of POS hardware is recognized at the time when ownership is transferred to the customer. Core Platform . Core revenue primarily consists of revenue from 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 products. Core revenue also includes revenue from sales of products not containing a software component such as professional web services as well as fee surcharges paid to ICANN. Consideration is generally recorded as deferred revenue when received, which is typically at the time of sale, and revenue from most Core products is recognized ratably over the period in which the performance obligations are satisfied, which is typically over the contract term. Aftermarket domain revenue is recognized at the time when ownership of the domain is transferred to the buyer. Disaggregated Revenue Revenue by major product type was as follows: Year Ended December 31, 2023 2022 2021 Applications and commerce $ 1,430.4 $ 1,279.7 $ 1,128.3 Core platform: domains 2,018.5 1,959.2 1,815.9 Core platform: other 805.2 852.4 871.5 $ 4,254.1 $ 4,091.3 $ 3,815.7 No single customer represented over 10% of our total revenue for any period presented. Revenue by geography is based on the customer's billing address and was as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 2,873.0 $ 2,757.3 2,544.9 International 1,381.1 1,334.0 1,270.8 $ 4,254.1 $ 4,091.3 $ 3,815.7 No international country represented more than 10% of total revenue in any period presented. See Note 8 for information regarding our deferred revenue. Performance Obligations Our contracts with customers may include multiple performance obligations, including a combination of some or all of the following products: domain registrations, website hosting products, website building products, website security products and other cloud-based products. Judgment may be required in determining whether products contain multiple distinct performance obligations that should each be accounted for separately or as one combined performance obligation. Revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term. For each domain registration or renewal we provide, we have one performance obligation to our customers consisting of two promises: (1) to ensure the exclusive use of the domain during the applicable registration term and (2) to ensure the domain is accessible and appropriately directed to its underlying content. After the contract term expires, unless renewed, the customer can no longer access or use the domain. We have determined these promises are not distinct within the context of our contracts as they are highly interdependent and interrelated and are inputs to a combined benefit. Accordingly, we concluded that each domain registration or renewal represents one product offering and is a single performance obligation. We may also offer specific arrangements, such as our Websites + Marketing solution, in which we include promises to transfer multiple performance obligations in a single product offering. For such arrangements, we allocate the transaction price to each of the underlying distinct performance obligations based on its relative SSP, as described below. We have determined that generally each of our other products constitutes an individual product offering to our customers, and therefore have concluded that each is a single performance obligation. For arrangements with multiple performance obligations, we allocate revenue to each distinct performance obligation based on its relative SSP. We use judgment to determine SSP based on prices charged to customers for individual products, taking into consideration factors including historical and expected discounting practices, the size, volume and term length of transactions, customer demographics, the geographic areas in which our products are sold and our overall go-to-market strategy. Principal versus Agent Considerations We sell our products directly to customers and also through a network of resellers. In certain cases, we act as a reseller of products provided by others. The determination of gross or net revenue recognition is reviewed on a product-by-product basis and is dependent on our determination as to whether we act as principal or agent in the transaction. Revenue associated with sales of our products through a network of resellers is generally recorded on a net basis. Revenue associated with sales of aftermarket domains and third party solutions where we act as a reseller of products provided by others is generally recorded on a gross basis as we have determined that we control the product before transferring it to our end customers. Commissions paid to resellers are capitalized and amortized to cost of revenue consistent with the pattern of transfer of the products purchased. Assets Recognized from Contract Costs Fees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amortization expense of such asset was $765.3 million, $717.1 million and $675.1 million during 2023, 2022 and 2021, respectively. No other material contract costs were capitalized during any of the periods presented. Operating Expenses Cost of Revenue (excluding depreciation and amortization) Costs of revenue are primarily the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain registration fees, payment processing fees, third-party commissions and licensing fees for third-party productivity applications. Technology and Development 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 data centers and systems infrastructure supporting those products, excluding depreciation expense. Marketing and Advertising 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. Advertising costs are expensed either as incurred, at the time a commercial initially airs or when a promotion first appears in the media. Advertising expenses were $247.1 million, $284.9 million and $378.3 million during 2023, 2022 and 2021, respectively. Customer Care Customer care expenses represent the costs to guide and service our customers, primarily consisting of personnel costs. General and Administrative General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, all employee travel expenses, acquisition-related expenses and other general costs. Restructuring and Other Restructuring and other for 2023 primarily represents: (i) charges related to the restructuring activities implemented during 2023, which were undertaken to reduce future operating expenses and improve cash flows through a combination of reductions in force and the sale of certain assets and liabilities of our hosting business within our Core segment; and (ii) a charge incurred in the second quarter of 2023 related to the termination of a revenue sharing agreement. Restructuring and other for 2022 consists primarily of severance and other exit costs as well as charges recorded in connection with the impairment and gains and losses on disposition of certain assets. Equity-Based Compensation We have granted stock options at exercise prices equal to the fair market value of our Class A common stock on the grant date. We have granted both stock options and restricted stock units (RSUs) vesting solely upon the continued service of the recipient as well as performance-based awards (PSUs) with vesting based on either (i) our achievement of specified financial targets or (ii) our relative total stockholder return (TSR) as compared to a selected index of public Internet companies. We recognize the accounting grant date fair value of equity-based awards as compensation expense over the required service period of each award, taking into account the probability of our achievement of associated performance targets. On the settlement date of each three-year performance period associated with our TSR-based PSU grants, and only if a participant remains a Service Provider (as defined in the 2015 Equity Incentive Plan) on such date, a participant will receive shares of our Class A common stock ranging from 0% to 200% of the originally granted PSUs based on our relative TSR as compared to the companies within the selected index. Vesting of the PSUs is subject to the TSR market condition as well as approval of the performance by our board of directors following the end of each performance period. Equity-based awards are accounted for using the fair value method. RSUs and financial-based PSUs are measured based on the fair market value of the underlying common stock on their respective accounting grant dates. Grant date fair values for stock options, which we last granted in 2020, are determined using the Black-Scholes option pricing model and a single option award approach. The accounting grant date for financial-based PSUs is the date on which the applicable performance criteria are approved by our board of directors. The fair value of shares issued under our employee stock purchase plan is estimated on the first day of each offering period using the Black-Scholes option pricing model. We utilize an estimated forfeiture rate in our equity-based compensation expense calculations, which is based on an analysis of historical data. The cumulative effect of any changes to the forfeiture rate is recognized in the period in which the estimate is changed. We estimate the grant-date fair value of the TSR-based PSUs using a Monte Carlo simulation which requires assumptions for expected volatility, risk-free rate of return and dividend yield. Expected volatilities for GoDaddy and the companies within the index are derived using historical volatilities over a period equal to the length of the performance period. We base the risk-free rate of return on the yield of a zero-coupon U.S. Treasury bond with a maturity equal to the performance period, and assume a 0% dividend rate. Equity-based compensation expense for these PSUs is recognized over the requisite service period, regardless of whether the TSR market condition is satisfied. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and liabilities (DTLs) for the expected future tax consequences of events included in the financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in the period in which the enactment date occurs. We recognize DTAs to the extent we believe these assets are more-likely-than-not to be realized. In evaluating our ability to realize our DTAs, in full or in part, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, prudent and feasible tax planning strategies and recent results of operations. We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to income taxes are included in benefit (provision) for income taxes. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows: Level 1 — Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2 — Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and Level 3 — Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions. We hold certain assets required to be measured at fair value on a recurring basis. These include time deposits and money market funds, which we classify within Level 1 because we use quoted market prices to determine their fair value. Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 11. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are not active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets. The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis: December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Commercial paper $ — $ 39.6 $ — $ 39.6 Time deposits 40.0 — — 40.0 Short-term investments: Time deposits 40.0 — — 40.0 Derivative assets — 128.6 — 128.6 Total assets $ 80.0 $ 168.2 $ — $ 248.2 Liabilities: Derivative liabilities $ — $ 46.4 $ — $ 46.4 Total liabilities $ — $ 46.4 $ — $ 46.4 December 31, 2022 Assets: Level 1 Level 2 Level 3 Total Cash and cash equivalents: Commercial paper $ — $ 120.0 $ — $ 120.0 Time deposits and money market funds 347.3 — — 347.3 Derivative assets — 218.5 — 218.5 Total assets $ 347.3 $ 338.5 $ — $ 685.8 Liabilities: Derivative liabilities $ — $ 4.9 $ — $ 4.9 Total liabilities $ — $ 4.9 $ — $ 4.9 We have no other material assets or liabilities measured at fair value on a recurring basis. Acquisitions We determine whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is accounted for as an asset acquisition. If the threshold is not met, further assessment is undertaken to ascertain whether the acquisition meets the definition of a business. We include the results of operations of acquired businesses as of the respective acquisi |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions 2022 Acquisition In July 2022, we completed the acquisition of Dan.com for net cash consideration of $69.6 million. The acquisition was not material to our results of operations. The aggregate purchase price was allocated based upon our assessment of acquisition-date fair values with $56.3 million allocated to goodwill, none of which is tax deductible, $17.6 million to identified finite-lived intangible assets and $4.3 million of net liabilities assumed. The identified finite-lived intangible assets, which primarily consist of developed technology and customer relationships, were valued using an income-based approach and had a total weighted-average amortization period of 3.3 years. The recognition of goodwill was made based on the strategic benefits we expected to realize from the acquisition. 2021 Acquisitions In February 2021, we completed the acquisition of Poynt Co. (now known as GoDaddy Payments) for $297.1 million in cash consideration to expand our commerce capabilities. GoDaddy Payments offers a suite of products allowing small businesses to sell and accept payments anywhere, including point-of-sale systems, payments, invoicing and transaction management. At closing, we also paid an additional $29.4 million in cash that was recorded as compensation expense during the three months ended March 31, 2021. The acquisition agreements also call for up to $45.0 million in additional compensatory cash payments subject to certain performance and employment conditions over the three-year period following the closing date. We paid $6.9 million and $14.3 million of these compensatory payments in 2023 and 2022, respectively. During 2021, we completed two other acquisitions for aggregate purchase consideration of $65.7 million in cash paid at closing and additional contingent earn-out payments of up to $18.5 million subject to the achievement of certain operational and financial milestones over the two year periods following the respective closing dates which have been settled as of December 31, 2023. The aggregate purchase price of these three acquisitions was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of each acquisition date, with the excess recorded to goodwill. The recognition of goodwill, none of which is deductible for income tax purposes, was made based on strategic benefits we expect to realize from the acquisitions. The following table summarizes the acquisition date fair values of the aggregate assets acquired and liabilities assumed: Total purchase consideration $ 381.3 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 4.2 Indefinite-lived intangibles assets 1.3 Finite-lived intangible assets 66.0 Other assets and liabilities, net (0.5) Total assets acquired, net of liabilities assumed 71.0 Goodwill $ 310.3 The identified finite-lived intangible assets, which were valued using either an income or cost-based approach, primarily consist of developed technology and customer relationships, and had a total weighted-average amortization period of 4.1 years. Pro forma financial information is not presented because the acquisitions occurring in each of the years ended December 31, 2022 and 2021 were not material to our financial statements, either individually or in the aggregate. Other Acquisition-Related Payments During 2023, 2022 and 2021, we made $10.5 million, $12.3 million and $15.5 million of aggregate holdback and contingent consideration payments related to business acquisitions, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes changes in our goodwill balance by segment: A&C Core Total Balance at December 31, 2021 $ 1,522.5 $ 2,018.3 $ 3,540.8 Goodwill related to acquisitions — 56.3 56.3 Impact of foreign currency translation (31.7) (43.0) (74.7) Purchase accounting adjustments related to prior period acquisitions 6.2 8.3 14.5 Balance at December 31, 2022 1,497.0 2,039.9 3,536.9 Impact of foreign currency translation 16.6 23.0 39.6 Less: goodwill related to disposition of businesses — (3.3) (3.3) Other adjustments — (3.9) (3.9) Balance at December 31, 2023 $ 1,513.6 $ 2,055.7 $ 3,569.3 Intangible assets, net are summarized as follows: December 31, 2023 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 233.6 n/a 233.6 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 459.3 $ (352.2) 107.1 Developed technology 246.8 (205.6) 41.2 Trade names and other 104.8 (65.8) 39.0 $ 1,782.2 $ (623.6) $ 1,158.6 December 31, 2022 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 During 2023, we completed two purchases of indefinite-lived domain portfolio intangible assets and related finite-lived customer-related intangible assets for a total of $35.4 million in cash and a variable earn-out of up to $4.0 million. During 2021, we purchased intangible assets for a total of $200.1 million in cash. One of these purchases also included a variable earn-out payment of up to $12.0 million based on the achievement of specified future performance conditions. A $1.5 million payment was made in 2023 which settled the variable earn-out obligation. These purchases primarily consisted of a number of top-level domains (TLDs), of which $186.8 million were recorded as indefinite-lived contractual-based intangible assets. Amortization expense was $104.9 million, $128.9 million and $127.9 million during 2023, 2022 and 2021, respectively. As of December 31, 2023, the weighted-average remaining amortization period for amortizable intangible assets was 27 months for customer-related intangible assets, 24 months for developed technology and 45 months for trade names and other, and was 30 months in total. Based on the balance of finite-lived intangible assets at December 31, 2023, expected future amortization expense is as follows: Year Ending December 31: 2024 $ 83.2 2025 75.5 2026 21.7 2027 3.8 2028 1.9 Thereafter 1.2 $ 187.3 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Certificate of Incorporation Our amended and restated certificate of incorporation authorized the issuance of up to 1,000,000 shares of Class A common stock, up to 500,000 shares of Class B common stock and up to 50,000 shares of undesignated preferred stock, each having a par value of $0.001 per share. Shares of Class A common stock have both economic and voting rights. Shares of Class B common stock have no economic rights, but do have voting rights. Holders of Class A and Class B common stock are entitled to one vote per share and, except as otherwise required, will vote together as a single class on all matters on which stockholders generally are entitled to vote. Shares of Class B common stock are transferable only together with an equal number of LLC Units if we, at the election of an owner, exchange LLC Units for shares of Class A common stock. No LLC Units were outstanding as of December 31, 2023 and therefore the outstanding Class B common stock is not transferable into additional Class A common stock as a result of the DNC Restructure as described in Note 1. Share Repurchases In August 2021, we entered into an accelerated share repurchase agreement (ASR) to repurchase shares of our Class A common stock in exchange for an up-front payment of $250.0 million. The total number of shares ultimately delivered under the ASR, and therefore the average repurchase price paid per share, was determined based on the volume weighted-average price of our stock during the purchase period. The shares received were retired at the time of delivery and the up-front payment was accounted for as a charge to accumulated deficit. The ASR was a forward contracts indexed to our Class A common stock and met all of the applicable criteria for equity classification; therefore, it was not accounted for as a derivative instrument. The ASR was completed during 2021 and we repurchased a total of 3,425 shares of our Class A common stock at an average price of $72.99 per share under this arrangement. Expenses incurred in connection with the ASR were recorded as a charge to accumulated deficit. In January 2022, our board of directors approved the repurchase of up to an additional $2,251.0 million of our Class A common stock. Such approval was in addition to the amount remaining available for repurchases under prior board approvals, such that we had authority to repurchase up to $3,000.0 million of our Class A common stock. Shares may be repurchased in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws. This authorization has no time limits, does not obligate us to make any repurchases and may be modified, suspended or terminated by us at any time without prior notice. In February 2022, we entered into ASRs to repurchase shares of our Class A common stock in exchange for an up-front aggregate payment of $750.0 million. The ASRs were completed in May 2022 and we repurchased a total of 9,202 shares of our Class A common stock at an average price of $81.50 per share under these arrangements. Expenses incurred in connection with the ASRs were recorded as a charge to accumulated deficit. In August 2023, our board of directors approved the repurchase of up to an additional $1,000.0 million of our Class A common stock. Such approval was in addition to the amount available for repurchases under prior approvals of our board of directors, such that our total approved authority under the program is $4,000.0 million of shares of our Class A common stock through 2025. In addition to the ASRs discussed above, we also made the following open market repurchases of our Class A common stock: Year Ended December 31, Number of Shares Repurchased Aggregate Purchase Price (1) 2023 17,356 $ 1,264.4 2022 7,642 $ 550.1 2021 3,500 $ 275.9 _________________________________ (1) The aggregate purchase price includes commissions paid in connection with the repurchases. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2023 2022 Derivative assets $ 127.2 $ 209.6 Prepaid software and maintenance expenses 23.0 29.5 Usage-based prepaid expenses (1) 8.8 10.6 Other 18.2 22.1 $ 177.2 $ 271.8 _________________________________ (1) Usage-based prepaid expenses include various cost of sales, marketing, rent and other prepaid commitments that are amortized as the funds are used. |
Equity-Based Compensation Plans
Equity-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation Plans | Equity-Based Compensation Plans Equity Plans On March 31, 2015, we adopted the 2015 Equity Incentive Plan (the 2015 Plan). As of December 31, 2023, 31,496 shares were available for issuance as future awards under the plan. On March 31, 2015, we adopted the 2015 Employee Stock Purchase Plan (the ESPP). As of December 31, 2023, 4,605 shares were available for issuance under the plan. Equity Plan Activity The following table summarizes stock option activity: Number of Weighted- Weighted- Weighted- Aggregate Outstanding at December 31, 2020 3,428 42.79 Exercised (1,168) 36.72 51.0 Forfeited (261) 68.77 Outstanding at December 31, 2021 1,999 42.94 Exercised (536) 37.04 22.9 Forfeited (37) 72.94 Outstanding at December 31, 2022 1,426 44.38 Exercised (557) 35.23 26.1 Forfeited (24) 72.28 Outstanding at December 31, 2023 845 49.60 4.1 47.8 Vested at December 31, 2023 843 49.54 4.1 47.7 The following table summarizes stock award activity: Number of Outstanding at December 31, 2020 (1) 6,133 Granted: RSUs 4,332 Granted: TSR-based PSUs 426 Vested (2,645) Forfeited (1,480) Outstanding at December 31, 2021 (1) 6,766 Granted: RSUs 4,369 Granted: TSR-based PSUs 246 Vested (2,734) Forfeited (1,015) Outstanding at December 31, 2022 (1) 7,632 Granted: RSUs 3,484 Granted: TSR-based PSUs 265 TSR-based PSU achievement above target 91 Vested (4,215) Forfeited (1,000) Outstanding at December 31, 2023 (1) 6,257 _________________________________ (1) The balance of outstanding awards is comprised of the following: Number of Shares of Class A Common Stock (#) Weighted Average Fair Value Per Share ($) RSUs 6,058 77.37 TSR-based PSUs 558 107.05 Financial-based PSUs granted for accounting purposes 75 78.62 Financial-based PSUs not yet granted for accounting purposes 75 n/a Outstanding at December 31, 2021 6,766 RSUs 6,890 80.32 TSR-based PSUs 676 121.00 Financial-based PSUs granted for accounting purposes 41 82.52 Financial-based PSUs not yet granted for accounting purposes 25 n/a Outstanding at December 31, 2022 7,632 RSUs 5,531 79.14 TSR-based PSUs 701 119.28 Financial-based PSUs granted for accounting purposes 25 77.23 Outstanding at December 31, 2023 6,257 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Deferred Revenue Deferred revenue consisted of the following: December 31, 2023 2022 Current: A&C $ 683.8 $ 622.1 Core 1,391.1 1,331.9 $ 2,074.9 $ 1,954.0 Noncurrent: A&C $ 173.5 $ 173.1 Core 628.9 597.2 $ 802.4 $ 770.3 The increase in the deferred revenue balance is primarily driven by payments received in advance of satisfying our performance obligations, offset by $2,074.4 million of revenue recognized during 2023 that was included in the deferred revenue balance as of December 31, 2022. Deferred revenue as of December 31, 2023 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are expected to be satisfied, as follows: 2024 2025 2026 2027 2028 Thereafter Total A&C $ 683.8 $ 121.6 $ 38.3 $ 7.8 $ 3.2 $ 2.6 $ 857.3 Core 1,391.1 343.1 129.9 67.4 34.6 53.9 2,020.0 $ 2,074.9 $ 464.7 $ 168.2 $ 75.2 $ 37.8 $ 56.5 $ 2,877.3 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, 2023 2022 Accrued payroll and employee benefits $ 143.6 $ 116.3 Tax-related accruals 56.2 42.8 Derivative liabilities 46.4 4.9 Accrued legal and professional 34.2 34.3 Current portion of operating lease liabilities 29.1 33.3 Accrued acquisition-related expenses and acquisition consideration payable 20.6 26.2 Accrued marketing and advertising 12.3 13.6 Accrued restructuring costs 7.4 — Other 92.4 85.3 $ 442.2 $ 356.7 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: December 31, Maturity Date 2023 2022 2027 Term Loans (effective interest rate of 7.4% at December 31, 2023 and 4.3% at December 31, 2022) August 10, 2027 $ 723.8 $ 731.3 2029 Term Loans (effective interest rate of 8.4% at December 31, 2023 and 4.1% at December 31, 2022) November 10, 2029 1,752.3 1,770.0 2027 Senior Notes (effective interest rate of 5.4% at December 31, 2023 and December 31, 2022) December 1, 2027 600.0 600.0 2029 Senior Notes (effective interest rate of 3.6% at December 31, 2023 and December 31, 2022) March 1, 2029 800.0 800.0 Revolver November 10, 2027 — — Total 3,876.1 3,901.3 Less: unamortized original issue discount and debt issuance costs (1) (59.7) (70.2) Less: current portion of long-term debt (17.9) (18.2) $ 3,798.5 $ 3,812.9 _________________________________ (1) Original issue discount and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the interest method. Credit Facility Our secured credit agreement (the Credit Facility) includes two tranches of term loans (the 2027 Term Loans and the 2029 Term Loans, the latter of which refinanced, replaced and extended the maturity of our previously issued term loans maturing in 2024, as described below) and a revolving credit facility (the Revolver). A portion of the term loans is hedged by interest rate swap agreements, as discussed in Note 11. The 2027 Term Loans were originally issued in 2020 in an aggregate principal amount of $750.0 million with a 0.5% original issue discount. The net proceeds of these loans were used to partially fund the payments associated with the settlement of our obligations under certain tax receivable agreements in 2020. In March 2021, we refinanced the 2027 Term Loans to lower the interest rate margins by 0.5% with no changes made to the maturity date or any other material terms. In May 2023, we entered into an amendment to the Credit Facility to replace, beginning in July 2023, the benchmark interest rate based on the London Interbank Offered Rate (LIBOR) applicable to the 2027 Term Loans with a benchmark interest rate based on the forward-looking secured overnight financing rate (SOFR) plus a credit spread adjustment. The 2027 Term Loans bear interest at a rate equal to, at our option, either (a) SOFR together with a credit spread adjustment for the applicable interest period plus a margin of 2.0% per annum or (b) a margin of 1.0% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) SOFR for an interest period of one month plus 1.0%. In November 2022, we amended our Credit Facility to provide for a new $1,770.0 million tranche of term loans maturing in 2029 (the 2029 Term Loans), the proceeds of which were used to refinance all of the outstanding previously issued term loans maturing in 2024. The 2029 Term Loans were originally issued with a 2.0% original issue discount and bore interest at a range of margins determined based on the first lien secured leverage ratio. In July 2023, we refinanced the 2029 Term Loans to lower the interest rate margin with no changes to the maturity date or any other material terms. The refinanced loans were issued at par and subsequent to the July 2023 refinancing, the 2029 Term Loans bear interest at a rate equal to, at our option, either (a) SOFR for the applicable interest period plus a margin of 2.5% per annum or (b) a margin of 1.5% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) SOFR for an interest period of one month plus 1.0%. With respect to the November 2022 refinancing, aggregate fees paid to lenders of $9.3 million were recorded as additional discount, and we recognized a loss on debt extinguishment of $3.3 million. With respect to the July 2023 refinancing, aggregate fees paid to lenders of $1.2 million were recorded as additional discount, and we recognized a loss on debt extinguishment of $1.5 million. In November 2022, we also increased the borrowing capacity under our Revolver from $600.0 million to $1,000.0 million under a new revolving credit facility maturing in November 2027. In connection with this transaction, we capitalized aggregate fees of $4.1 million as debt issuance costs as well as recognized a loss on debt extinguishment of $0.3 million. The Revolver bears interest at a rate equal to, at our option, either (a) SOFR for the applicable interest period plus a margin ranging from 1.25% to 1.75% per annum or (b) the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) SOFR for an interest period of one month plus 1.0% plus a margin ranging from 0.25% to 0.75% per annum, with the margins determined based on our first lien secured leverage ratio. The Revolver also contains a financial covenant requiring us to maintain a leverage ratio of 5.75:1.00 when our usage exceeds 40.0% of the maximum capacity. This ratio is calculated as the ratio of first lien secured debt less cash and cash equivalents to consolidated EBITDA (as defined in the Credit Facility). All SOFR-based interest rates under the Credit Facility are subject to a 0.0% floor. Principal payments comprising 0.25% of the initial principal balances of the term loans are due quarterly. In addition to paying interest on the outstanding principal under the term loans, we are required to pay a commitment fee ranging from 0.125% to 0.375% per annum for any unutilized commitments under the Revolver, with the applicable fee determined based on our first lien secured leverage ratio. Significant terms of the Credit Facility are as follows: • we are required to prepay outstanding term loans, subject to certain exceptions, with percentages of excess cash flow, proceeds of non-ordinary course asset sales or dispositions of property, insurance or condemnation proceeds and proceeds from the incurrence of certain debt; • we are restricted by certain covenants, including, among other things, limitations on our ability to incur additional indebtedness, sell assets, incur additional liens, make certain fundamental changes, pay distributions and make certain investments; and • subject to certain exceptions and exclusions, all obligations are unconditionally guaranteed by all of our wholly-owned, material domestic subsidiaries and are secured by substantially all of our and such subsidiaries real and personal property. At December 31, 2023, we had $998.8 million available for borrowing under the Revolver as $1.2 million has been used to secure the issuance of standby letters of credit. We were not in violation of any covenants of the Credit Facility as of December 31, 2023. Senior Notes In June 2019, we issued the 2027 Senior Notes in an aggregate principal amount of $600.0 million in a private placement offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2027 Senior Notes were issued at par and bear interest at 5.25% per annum, with interest payable semiannually on June 1 and December 1. The aggregate principal amount outstanding is payable at maturity, subject to earlier repurchase or optional redemption as described below. The 2027 Senior Notes are redeemable at our option, in whole or in part, at an amount equal to 102.625% of the principal amount, decreasing to 101.75% at June 1, 2023, 100.875% at June 1, 2024 and 100.0% at June 1, 2025, plus accrued and unpaid interest. Upon the occurrence of a change of control, we are required to offer to repurchase the 2027 Senior Notes from the holders at a price equal to 101.0% of the principal amount, plus accrued and unpaid interest. In February 2021, we issued the 2029 Senior Notes in an aggregate principal amount of $800.0 million in a private placement offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2029 Senior Notes were issued at par and bear interest at 3.5% per annum, payable annually on March 1 and September 1. The aggregate principal is payable at maturity, subject to earlier repurchase or optional redemption as described below. In conjunction with the issuance of the 2029 Senior Notes, we capitalized $9.0 million in debt issuance costs. The 2029 Senior Notes are redeemable at our option, in whole or in part, any time prior to March 1, 2024 at a redemption price equal to 100.0% of the principal amount, plus accrued and unpaid interest, plus an applicable premium equal to the greater of 1.0% or the remaining scheduled payments of interest discounted to a present value amount. In the event of an equity offering prior to March 1, 2024, the 2029 Senior Notes may be partially redeemed with the net cash proceeds of such offering at our option at an amount equal to 103.5% of the principal amount, plus accrued and unpaid interest. On and after March 1, 2024, we may redeem the 2029 Senior Notes, in whole or in part, at an amount equal to 101.75% of the principal amount, decreasing to 100.875% at March 1, 2025 and 100.0% at March 1, 2026, plus accrued and unpaid interest. Upon the occurrence of a change of control, we are required to offer to repurchase the Senior Notes from the holders at a price equal to 101.0% of the principal amount, plus accrued and unpaid interest. Significant terms of the 2027 Senior Notes and 2029 Senior Notes are as follows: • they are subordinated to our existing secured debt, including the Credit Facility, and any future secured debt we may issue; • all obligations are unconditionally guaranteed by all of our material domestic subsidiaries; • we are restricted by certain covenants, including limitations on our ability to incur additional indebtedness, incur additional liens, consolidate with or merge with or into another entity and sell substantially all of our assets; and • certain covenants may be suspended if we are able to obtain and maintain investment grade ratings and no event of default has occurred. At December 31, 2023, we were not in violation of any covenants of the 2027 Senior Notes or the 2029 Senior Notes. Fair Value The estimated fair values of our long-term debt instruments are based on observable market prices for these instruments, which are traded in less active markets and therefore classified as Level 2 fair value measurements, and were as follows as of December 31, 2023: 2027 Term Loans $ 726.0 2029 Term Loans $ 1,760.0 2027 Senior Notes $ 589.5 2029 Senior Notes $ 729.0 Future Debt Maturities Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of December 31, 2023 were as follows: Year Ending December 31: 2024 $ 25.1 2025 25.1 2026 25.1 2027 1,318.9 2028 17.6 Thereafter 2,464.3 $ 3,876.1 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging We are exposed to changes in foreign currency exchange rates, primarily relating to intercompany debt and certain forecasted sales transactions denominated in currencies other than the U.S. dollar, as well as to changes in interest rates as a result of our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risk. We do not enter into derivative transactions for speculative or trading purposes. We utilize the following derivative instruments designated as cash flow hedges: • foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currencies; • cross-currency swaps used to manage variability due to movements in foreign currency exchange rates related to a Euro-denominated intercompany loan; and • pay-fixed rate, receive-floating rate interest rate swaps to effectively convert portions of our variable-rate debt to fixed. We also utilize cross-currency swaps designated as net investment hedges to mitigate the risk associated with exchange rate fluctuations on our net investment in certain foreign operations. The following table summarizes our outstanding derivative instruments on a gross basis, all of which are considered Level 2 financial instruments: Notional Amount Fair Value of Derivative Assets (2) Fair Value of Derivative Liabilities (2) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cash flow hedges: Foreign exchange forward contracts (1) $ 592.1 $ 364.7 $ 1.4 $ 9.4 $ 14.7 $ 2.0 Cross-currency swaps (2) 560.8 549.7 — 15.8 13.9 2.2 Interest rate swaps 1,959.7 1,980.5 127.2 173.0 — — Net investment hedges: Cross-currency swaps (3) 718.8 704.6 — 20.3 17.8 0.7 Total hedges $ 3,831.4 $ 3,599.5 $ 128.6 $ 218.5 $ 46.4 $ 4.9 _________________________________ (1) The notional amount includes $1.0 million of foreign exchange forward contracts not designated as cash flow hedges, the aggregate fair value of which was $1.2 million at December 31, 2023. (2) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect at December 31, 2023 and 2022 of approximately 1.1 and 1.07, respectively. (3) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets accrued expenses and other current liabilities The following table summarizes the effect of our hedging relationships on AOCI: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) Year Ended December 31, 2023 2022 2021 Cash flow hedges: Foreign exchange forward contracts (1) $ (29.8) $ 24.3 $ 16.3 Cross-currency swap (12.8) 54.0 (15.5) Interest rate swaps (46.3) 158.3 48.4 Net investment hedges: Cross-currency swaps (38.1) 20.3 — Total hedges $ (127.0) $ 256.9 $ 49.2 _________________________________ (1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships: Year Ended December 31, 2023 2022 2021 Revenue Interest Expense Other Income (Expense), Net Revenue Interest Expense Other Income (Expense), Net Revenue Interest Expense Other Income (Expense), Net Cash flow hedges: Foreign exchange forward contracts: Reclassified from AOCI into income $ 16.3 $ — $ — $ 5.3 $ — $ (8.9) $ — Cross-currency swaps: Reclassified from AOCI into income (1) — 9.6 (17.0) — 14.9 41.5 — 27.3 100.6 Interest rate swaps: Reclassified from AOCI into income — 66.4 — — (5.0) — — (35.0) — Net investment hedges: Cross-currency swaps: Reclassified from AOCI into income — 12.5 — — 11.3 — — — Total hedges $ 16.3 $ 88.5 $ (17.0) $ 5.3 $ 21.2 $ 41.5 $ (8.9) $ (7.7) $ 100.6 _________________________________ (1) The amounts reflected in other income (expense), net include $16.8 million, $(41.3) million and $(101.8) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during 2023, 2022 and 2021, respectively. As of December 31, 2023, we estimate that $99.0 million of net deferred gains related to our designated hedges will be recognized in earnings over the next 12 months. No amounts have been excluded from our hedge effectiveness testing. Risk Management Strategies Foreign Exchange Forward Contracts From time-to-time, we may enter into foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in foreign currencies. We designate these forward contracts as cash flow hedges, which are recognized as either assets or liabilities at fair value. At December 31, 2023, all such contracts had maturities of 24 months or less. Cross-Currency Swaps In April 2017, in order to manage variability due to movements in foreign currency rates related to a Euro-denominated intercompany loan, we entered into five-year cross-currency swaps. In March 2022, we entered into a transaction to extend the maturity of these swaps to August 31, 2027. We and the existing counterparties executed cancellation agreements to terminate all rights, obligations and liabilities associated with the original swaps. On the modification date, the existing cash flow hedging relationships were de-designated and new hedging relationships incorporating the terms of the new swaps (the 2022 Cross-Currency Swaps) were designated as either cash flow hedging relationships or net investment hedging relationships. The 2022 Cross-Currency Swaps had an aggregate amortizing notional amount of €1,184.2 million at inception (approximately $1,262.5 million). The swaps designated as cash flow hedging relationships convert the 3.00% fixed rate Euro-denominated interest and principal receipts on the intercompany loan into U.S. dollar interest and principal receipts at a fixed rate of 4.81%. The swaps designated as net investment hedging relationships hedge the foreign currency exposure of our net investment in certain Euro denominated functional currency subsidiaries. Pursuant to the contracts, the Euro notional value will be exchanged for the U.S. dollar notional value at maturity. Interest Rate Swaps In April 2017, we entered into a five-year pay-fixed rate, receive-floating rate interest rate swap arrangement to effectively convert a portion of the variable-rate borrowings under the previously issued term loans maturing in 2024, which were refinanced with the 2029 Term Loans, to a fixed rate of 5.44%. In March 2022, we entered into a transaction to extend the maturity of the swaps to August 31, 2027. We and the existing counterparties executed cancellation agreements to terminate all rights, obligations and liabilities associated with the original swaps. On the modification date, the existing cash flow hedging relationships were de-designated and new hedging relationships incorporating the terms of the new interest rate swaps (the 2022 Interest Rate Swaps) were designated. The 2022 Interest Rate Swaps, which had an amortizing notional amount of $1,262.5 million at inception, serve to convert a portion of the variable-rate borrowings under the 2029 Term Loans to a fixed rate of 4.81%. In November 2022, in conjunction with the concurrent Credit Facility refinancing discussed in Note 10, we terminated these swaps and entered into new SOFR-based interest rate swaps. This modification impacted no critical terms other than the reference rate change from LIBOR to SOFR and thus had no impact on our hedging relationships or financial statements. In August 2020, in conjunction with the issuance of the 2027 Term Loans, we entered into seven-year pay-fixed rate, receive-floating rate interest rate swaps to effectively convert the variable one-month LIBOR interest rate on the 2027 Term Loans borrowings to a fixed rate of 0.705%. These interest rate swaps, which mature on August 10, 2027, had an aggregate notional amount of $750.0 million at inception. In May 2023, in conjunction with the concurrent Credit Facility amendment discussed in Note 10, we terminated these swaps and entered into new SOFR-based interest rate swaps. This modification impacted no critical terms other than the reference rate change from LIBOR to SOFR and thus had no impact on our hedging relationships or financial statements. The objective of these arrangements, which are designated as cash flow hedges and recognized as assets or liabilities at fair value, is to manage the variability of cash flows in the interest payments related to the portion of the variable-rate debt designated as being hedged. The unrealized gains and losses on the swaps are included in AOCI and will be recognized in earnings within or against interest expense when the hedged interest payments are accrued each month. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Our operating leases primarily consist of office and data center space expiring at various dates through October 2034. Certain leases include options to renew or terminate at our discretion. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2023, operating leases have a remaining weighted average lease term of 6.5 years and our operating lease liabilities were measured using a weighted average discount rate of 5.5%. The components of operating lease expense were as follows: Year Ended December 31, 2023 2022 2021 Operating lease costs $ 36.8 $ 44.5 $ 48.2 Variable lease costs 14.7 12.0 10.4 Sublease income (14.2) (8.3) (4.3) Total net lease cost $ 37.3 $ 48.2 $ 54.3 We recognized impairment charges related to certain operating lease assets during 2022 and 2021 as discussed in Note 14. Maturities of operating lease liabilities as of December 31, 2023 were as follows: Year Ending December 31: 2024 $ 34.7 2025 23.3 2026 19.9 2027 14.7 2028 9.5 Thereafter 39.0 Total lease payments 141.1 Less: imputed interest (21.8) Total operating lease liabilities $ 119.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Service Agreements We have entered into long-term agreements with certain vendors to provide for software and equipment maintenance, specified levels of bandwidth and other services. Under these arrangements, we are required to make periodic payments. Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2023 are as follows: Year Ending December 31: 2024 $ 169.0 2025 127.3 2026 101.1 2027 116.6 2028 15.9 Thereafter 2.5 $ 532.4 Litigation From time-to-time, we are a party to litigation and subject to claims, suits, regulatory and government investigation, other proceedings and consent decrees in the ordinary course of business, including intellectual property claims, putative and certified class actions, commercial and consumer protection claims, labor and employment claims, breach of contract claims and other asserted and unasserted claims. We investigate claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable. On June 13, 2019, we entered into an agreement in principle to settle the class action complaint, Jason Bennett v. GoDaddy.com (Case No. 2:16-cv-03908-DLR) (D. Ariz.), filed on June 20, 2016. The complaint alleges violation of the Telephone Consumer Protection Act of 1991 (the TCPA). On September 23, 2019, the parties fully executed a written settlement agreement. On December 16, 2019, we amended the settlement agreement to include two additional putative class action cases, which also alleged violations of the TCPA: John Herrick v. GoDaddy.com, LLC (Case No. 2:16-cv-00254 (D. Ariz.), appeal pending 18-16048 (9th Cir.)) and Susan Drazen v. GoDaddy.com, LLC (Case No 19-cv-00563) (S.D. Ala.). In 2019, we recorded an $18.1 million charge to general and administrative expense, representing our original estimated loss provision for this settlement. Under the terms of the final settlement agreement, we made available a total of up to $35.0 million to pay: (i) class members, at their election, either a cash settlement or a credit to be used for future purchases of products from us; (ii) an incentive payment to the class representatives; (iii) notice and administration costs in connection with the settlement; and (iv) attorneys' fees to legal counsel representing the class. On April 22, 2020, the parties filed statements in response to a request from the S.D. Ala. Court (the Court) to refine the class definition, resulting in a reduction in the total number of class members from the original estimated class. On May 14, 2020, the Court granted approval of the plaintiffs' unopposed motion for preliminary certification of the settlement class, subject to the parties' execution of an amended settlement agreement to remove John Herrick as a class representative. The parties executed such amendment on May 26, 2020, and on June 9, 2020, the Court granted preliminary approval of the final settlement agreement. The Court's order also set October 7, 2020 as the deadline for class members to submit claims and December 14, 2020 as the hearing date regarding final approval of the settlement. On September 1, 2020, the Court issued an amended order reducing the attorneys' fees to be paid to legal counsel representing the class. Additionally, the actual number of claims made by class members through the October 7, 2020 deadline was lower than our original estimates. On December 23, 2020, the Court issued a final judgment and order approving the class settlement, which further reduced the attorneys' fees to be paid to legal counsel representing the class and denied the plaintiffs' request for an incentive payment. Additionally, the actual notice and administration costs were lower than originally estimated. As a result of the above developments, during 2020, we recorded a cumulative $10.0 million reduction to general and administrative expense, lowering our estimated loss provision for this settlement to $8.1 million as of December 31, 2020. On January 19, 2021, a single objector to the settlement filed a notice of appeal to the 11th Circuit Court of Appeals, which remains pending as of the date of this filing. We made no changes to our estimated loss provision for this settlement during 2021. The timing of any settlement payments is pending resolution of the appeal. On July 27, 2022, the 11th Circuit vacated the settlement approval order and remanded the case for further action due to standing issues among the class members. On August 18, 2022, the plaintiffs filed a petition for a rehearing before the 11th Circuit. On December 7, 2022, the 11th Circuit was notified of the death of one of the plaintiffs, Jason Bennett. On March 13, 2023, the 11th Circuit granted the plaintiffs' petition for a rehearing before the 11th Circuit; the rehearing occurred on June 13, 2023. On July 24, 2023, the en banc 11th Circuit reversed the 11th Circuit's July 27, 2022 decision and remanded the appeal to the 11th Circuit for further action. Given the pending nature of the appeal, we have not adjusted our estimated loss provision for this settlement as of December 31, 2023. We have denied and continue to deny the allegations in the complaints. Nothing in the final settlement agreement shall be deemed to assign or reflect any admission of fault, wrongdoing or liability, or of the appropriateness of a class action in such litigation. We received a full release from the settlement class concerning the claims asserted, or that could have been asserted, with respect to the claims released in the final settlement agreement. Our legal fees associated with this matter have been recorded to general and administrative expense as incurred and were not material. In March 2020, we discovered that a threat actor group had compromised the hosting login credentials of certain of our customers to their hosting accounts and the login credentials of a small number of our personnel. We have expended resources investigating and responding to this activity, notified the impacted customers, reported the activity to applicable regulatory authorities, and are responding to requests for information regarding our data privacy and security practices, including from the Federal Trade Commission (FTC) pursuant to Civil Investigative Demands issued in July 2020 and October 2021. The timing of resolution and the outcome of these matters are uncertain and could result in us being subject to substantial monetary or other costs to our business. The amounts currently accrued for other matters are not material. While the results of such normal course claims and legal proceedings, regardless of the underlying nature of the claims, cannot be predicted with certainty, management believes, based on current knowledge and the likely timing of resolution of various matters, any additional reasonably possible potential losses above the amounts accrued for such matters would not be material. However, the outcomes of claims, legal proceedings or investigations are inherently unpredictable and subject to uncertainty, and may have an adverse effect on us because of defense costs, diversion of management resources and other factors that are not known to us or cannot be quantified at this time. We may also receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The final outcome of any current or future claims or lawsuits could adversely affect our business, financial condition or results of operations. We periodically evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued or the reasonably possible losses that we have disclosed, and make adjustments as appropriate. Indemnifications In the normal course of business, we have made indemnities under which we may be required to make payments in relation to certain transactions, including to our directors and officers to the maximum extent permitted under applicable state laws and indemnifications related to certain lease agreements. In addition, certain advertiser and reseller partner agreements contain indemnification provisions, which are generally consistent with those prevalent in the industry. We have not incurred material obligations under indemnification provisions historically, and do not expect to incur material obligations in the future. Accordingly, we have not recorded any liabilities related to such indemnities as of December 31, 2023 and 2022. We include service level commitments to our customers guaranteeing certain levels of uptime reliability and performance for our hosting and premium DNS products. These guarantees permit those customers to receive credits in the event we fail to meet those levels, with exceptions for certain service interruptions including but not limited to periodic maintenance. We have not incurred any material costs as a result of such commitments during any of the periods presented, and have not recorded any liabilities related to such obligations as of December 31, 2023 and 2022. Indirect Taxes We are subject to indirect taxation in some, but not all, of the various states and foreign jurisdictions in which we conduct business. Laws and regulations attempting to subject communications and commerce conducted over the Internet to various indirect taxes are becoming more prevalent, both in the U.S. and internationally, and may impose additional burdens on us in the future. Increased regulation could negatively affect our business directly, as well as the businesses of our customers. Taxing authorities may impose indirect taxes on the Internet-related revenue we generate based on regulations currently being applied to similar, but not directly comparable, industries. There are many transactions and calculations where the ultimate indirect tax determination is uncertain. In addition, domestic and international indirect taxation laws are complex and subject to change. We may be audited in the future, which could result in changes to our indirect tax estimates. We continually evaluate those jurisdictions in which nexus exists, and believe we maintain adequate indirect tax accruals. As of December 31, 2023 and 2022, our accrual for estimated indirect tax liabilities was $23.6 million and $18.9 million, respectively, reflecting our best estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations. Although we believe our indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits, litigation or settlements could be materially different than the amounts established for indirect tax contingencies. |
Restructuring and Other Charges
Restructuring and Other Charges and Disposition of Businesses and Related Assets | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges and Disposition of Businesses and Related Assets | Restructuring and Other Charges and Disposition of Businesses and Related Assets In February 2023, we announced a restructuring plan to reduce future operating expenses and improve cash flows through a combination of a reduction in force and a commitment to sell certain assets. As part of this plan, we announced a reduction in our workforce of approximately 550 employees, representing approximately 8% of our total employee base at the time. In conjunction with this restructuring, we recorded $35.1 million of pre-tax restructuring charges in our statement of operations related to severance, employee benefits and equity-based compensation. Of the $35.1 million of pre-tax restructuring cha rges, $10.1 million and $18.5 million were recognized within our A&C and Core segment, respectively, and $6.5 million was recognized as corporate overhead. In addition, we recognized a pre-tax loss of $16.5 million upon the completion of the planned disposition of certain assets and liabilities of our hosting business within our Core segment, which occurred on June 30, 2023. During the three months ended September 30, 2023, we implemented additional restructuring activities to further reduce operating expenses and improve cash flows through a reduction in force, which impacted approximately 250 employees. In conjunction with these restructuring efforts, we recognized $13.4 million of pre-tax restructuring charges in our statement of operations related to severance and employee benefits during 2023. Of the $13.4 million of pre-tax restructuring charges, $2.1 million and $10.0 million were recognized within our A&C and Core segment, respectively, and $1.3 million was recognized as corporate overhead. Cash payments of $38.7 million related to the restructuring activities described above were made during 2023. We expect to make substantially all remaining restructuring payments by the end of the second quarter of 2024. The following table shows the total amount incurred and the accrued restructuring costs, which are recorded in accrued expenses and other current liabilities in our balance sheet, for severance and employee benefits as of December 31, 2023: Accrued Restructuring Costs Accrued restructuring costs as of December 31, 2022 $ — Restructuring costs incurred (1) 46.1 Amount paid (38.7) Accrued restructuring costs as of December 31, 2023 $ 7.4 ________________________________ (1) Excludes $2.3 million in equity-based compensation expense associated with our restructuring plan, which was recorded within additional paid-in capital. During 2023, we also recorded a charge of $17.0 million in our statement of operations related to the termination of a revenue sharing agreement. This termination fee was paid in full during the year. Restructuring and other during 2022 of $15.7 million primarily includes the impairment and loss on disposition of certain assets. During 2021, we recorded other charges and credits, which included (i) the $15.4 million gain on sale of the land and buildings of our former corporate headquarters and (ii) a $15.1 million charge due to the impairment of certain operating lease assets and related leasehold improvements associated with the decision to close one of our leased offices. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan We maintain defined contribution 401(k) plans covering eligible U.S. employees, who may contribute up to 100% of their compensation, subject to limitations established by the Internal Revenue Code. We match employee contributions on a discretionary basis. Expense for our matching contributions was $15.8 million, $15.9 million and $15.0 million during 2023, 2022 and 2021, respectively. We maintain defined contribution benefit plans covering eligible foreign employees. Expense related to such plans was not material in any period presented. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Overview We are subject to U.S. federal, state and foreign income taxes with respect to our allocable share of any taxable income or loss of Desert Newco, as well as any stand-alone income or loss we generate. Desert Newco is treated as a partnership for U.S. income tax purposes, and for most applicable state and local income tax purposes, and generally does not pay income taxes in most jurisdictions. Instead, Desert Newco's taxable income or loss is passed through to its members, including us. Despite its partnership treatment, Desert Newco is liable for income taxes in certain foreign jurisdictions in which it operates, in those states not recognizing its pass-through status and for certain of its subsidiaries not taxed as pass-through entities. We have acquired the outstanding stock of various domestic and foreign entities taxed as corporations, which are now wholly-owned by us or our subsidiaries. Where required or allowed, these subsidiaries also file and pay tax as a consolidated group for U.S. federal and state income tax purposes and internationally, primarily within the United Kingdom (UK), Germany and India. As discussed in Note 1, in December 2023, we completed the DNC Restructure to simplify our entity structure and as a result on January 1, 2024, Desert Newco was converted from a partnership to a disregarded entity for U.S. income tax purposes. As a result of the DNC Restructure, we expect to adjust certain temporary differences on existing assets and liabilities which will result in a one-time non-cash income tax benefit in the first quarter of 2024. Benefit (Provision) for Income Taxes Our benefit (provision) for income taxes includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income (loss) before income taxes were as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 477.2 $ 418.6 $ 310.3 Foreign (73.4) (62.1) (56.7) Income before income taxes $ 403.8 $ 356.5 $ 253.6 Our benefit (provision) for income taxes was as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ (0.8) $ (1.3) $ (2.1) State (5.4) (0.9) (2.9) Foreign (14.9) (16.9) (22.6) (21.1) (19.1) (27.6) Deferred: Federal 860.5 (0.7) 2.3 State 116.3 (0.5) 0.2 Foreign 16.1 16.7 14.3 992.9 15.5 16.8 Benefit (provision) for income taxes $ 971.8 $ (3.6) $ (10.8) A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows: Year Ended December 31, 2023 2022 2021 Expected provision at U.S. federal statutory tax rate $ (84.8) $ (74.9) $ (53.3) Effect of investment in Desert Newco 22.7 (22.0) (50.4) Research and development credits 33.1 29.2 21.9 Foreign earnings 0.2 3.7 (0.9) Effect of changes in tax rates and apportionment (97.1) — (3.6) Uncertain tax positions (17.1) (10.6) (10.7) State taxes, net of federal benefit (1.6) 2.9 (31.5) Effect of restructurings of domestic subsidiary — (7.0) — Non-deductible expenses (5.1) Other (0.9) (1.9) 3.8 Effect of changes in valuation allowances 1,122.4 77.0 113.9 Benefit (provision) for income taxes $ 971.8 $ (3.6) $ (10.8) We generated an income tax benefit in 2023 as compared to a provision for income taxes in 2022 primarily due to a $1,014.0 million release of valuation allowance at GoDaddy Inc. partially offset related to the impact related to a state apportionment election. Deferred Taxes The components of our deferred taxes were as follows: December 31, 2023 2022 DTAs: Investment in Desert Newco $ 697.2 $ 800.0 NOLs 473.1 523.2 Tax credits 167.6 134.4 Deferred interest 44.0 38.2 Operating lease liabilities 15.3 17.8 Other 9.3 9.9 Valuation allowance (377.5) (1,504.8) Total DTAs 1,029.0 18.7 DTLs: Identified intangible assets (40.0) (61.3) Operating lease assets (6.4) (8.1) Total DTLs (46.4) (69.4) Net DTAs $ 982.6 $ (50.7) During December 2023, we released the majority of our domestic valuation allowance on the portion of our DTAs that we believe are more likely than not to be realized resulting in a $1,014.0 million non-cash income tax benefit. This release was related to our U.S. federal and state domestic net operating losses (NOLs), credit carryforwards and other DTAs. In determining the need for a valuation allowance, we consider both the positive and negative evidence including our ability to forecast future operating results, historical tax losses and our ability to utilize DTAs within the requisite carryforward periods. In December 2023, management applied judgement and determined the positive evidence outweighed the negative evidence and released the majority of our valuation allowance due to the following factors: we have been in a three year cumulative consolidated book income position for two years, our operating results and profitability continue to improve, our projections showed sufficient utilization of tax attributes within their requisite carryforward periods and we have not had a history of expiration of tax attributes. We continue to maintain a valuation allowance against the DTAs for which we concluded it is more-likely-than-not they will not be realized due to certain limitations on character or carryforward period. As of December 31, 2023, we had U.S. federal, state and foreign gross NOLs and tax credits, a portion of which will begin to expire in 2030, as follows: Gross NOLs and Tax Credits Portion Subject to a Valuation Allowance Federal $ 1,916.6 86.4 State 2,786.7 2,016.7 Foreign 38.6 22.9 $ 4,741.9 $ 2,126.0 As of December 31, 2023, we have provided income taxes on the earnings of foreign subsidiaries, except to the extent such earnings are considered indefinitely reinvested. We have determined the amount of unrecognized DTL related to these temporary differences to be immaterial. Uncertain Tax Positions Our liability for unrecognized tax benefits was as follows: December 31, 2023 2022 Balance at beginning of period $ 139.7 $ 120.7 Gross increases - tax positions in prior period 6.8 7.2 Gross increases - tax positions in current period 23.2 11.8 Gross decreases - tax positions in prior period (4.0) — Balance at end of period $ 165.7 $ 139.7 The total amount of gross unrecognized tax benefits was $165.7 million as of December 31, 2023, of which $(47.0) million, if fully recognized, would decrease our effective tax rate. We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. Other long-term liabilities includes accrued interest and penalties related to unrecognized tax benefits of $30.6 million and $28.2 million as of December 31, 2023 and 2022, respectively. We do not expect a significant decrease in our liability for unrecognized tax benefits in the next 12 months. We have filed all income tax returns for years through 2022, other than for Germany and the Netherlands. These returns are subject to examination by the taxing authorities in the respective jurisdictions, generally for three or four years after they were filed. Although we believe the amounts reflected in our tax returns substantially comply with applicable U.S. federal, state and foreign tax regulations, the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully challenged by a taxing authority could result in an adjustment to our benefit for income taxes in the period in which a final determination is made. |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income Per Share | Income Per Share Basic income per share is computed by dividing net income attributable to GoDaddy Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted income per share is computed giving effect to all potentially dilutive shares unless their effect is antidilutive. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 1,375.6 $ 352.9 $ 242.8 Less: net income attributable to non-controlling interests 0.8 0.7 0.5 Net income attributable to GoDaddy Inc. $ 1,374.8 $ 352.2 $ 242.3 Denominator: Weighted-average shares of Class A common stock outstanding—basic 148,296 158,788 167,906 Effect of dilutive securities: Class B common stock 290 313 414 Stock options 460 678 1,127 RSUs, PSUs and ESPP shares 2,406 1,678 1,658 Weighted-average shares of Class A Common stock outstanding—diluted 151,452 161,457 171,105 Net income attributable to GoDaddy Inc. per share of Class A common stock—basic $ 9.27 $ 2.22 $ 1.44 Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (1) $ 9.08 $ 2.19 $ 1.42 _________________________________ (1) The diluted income per share calculations exclude net income attributable to non-controlling interests, unless the effect is antidilutive. The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income per share because the effect of including such potentially dilutive shares would have been antidilutive: Year Ended December 31, 2023 2022 2021 Stock options 19 234 544 RSUs, PSUs and ESPP shares 780 492 881 799 726 1,425 Shares of Class B common stock are not participating securities and, therefore, do not have rights to share in our earnings. Accordingly, separate presentation of income per share of Class B common stock under the two-class method is not required. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We report our operating results through two reportable segments: A&C and Core. Our chief operating decision maker (CODM), which, as of December 31, 2023, was our Chief Executive Officer, evaluates the performance of and allocates resources to our segments based on each segment's revenue and earnings before interest, taxes, depreciation and amortization (Segment EBITDA). Segment EBITDA is defined as segment revenues less costs and operating expenses, excluding depreciation and amortization, interest expense (net), provision or benefit for income taxes, equity-based compensation expense, acquisition-related costs, restructuring-related expenses and certain other items. We believe Segment EBITDA serves as a measure that assists our CODM and our investors in comparing our segments' performance on a consistent basis. Our CODM does not use assets by segment to evaluate performance or allocate resources; therefore, we do not provide disclosure of assets by segment. See Note 2 for property, plant, and equipment, net as well as revenue disaggregated by geography. The A&C and Core segments provide a view into the product-focused organization of our business and generate revenue as follows: • A&C primarily consists of sales of products containing proprietary software, notably our website building products, as well as our commerce products and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of our proprietary software products. • Core 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 products as well as sales of products not containing a software component. There are no internal revenue transactions between our reportable segments. Corporate overhead primarily includes general and administrative expenses and items not allocated to either segment as well as those costs specifically excluded from Segment EBITDA, our segment measure of profitability, such as depreciation and amortization, interest expense and income and provision or benefit for income taxes. The following table presents our segment information for the periods indicated: Year Ended December 31, 2023 2022 2021 Revenue: A&C $ 1,430.4 $ 1,279.7 $ 1,128.3 Core 2,823.7 2,811.6 2,687.4 Total revenue $ 4,254.1 $ 4,091.3 $ 3,815.7 Segment EBITDA: A&C $ 594.2 $ 522.8 $ 447.7 Core 816.4 783.7 679.7 Total Segment EBITDA 1,410.6 1,306.5 1,127.4 Unallocated corporate overhead (276.1) (293.5) (255.2) Depreciation and amortization (171.3) (194.6) (199.6) Equity-based compensation expense (1) (294.0) (264.4) (207.9) Interest expense, net of interest income (155.4) (135.0) (124.9) Acquisition-related expenses (2) (12.1) (35.1) (78.2) Restructuring and other (3) (97.9) (27.4) (8.0) Income before income taxes 403.8 356.5 253.6 Benefit (provision) for income taxes 971.8 (3.6) (10.8) Net income $ 1,375.6 $ 352.9 $ 242.8 _________________________________ (1) The year ended December 31, 2023 excludes $2.3 million of equity-based compensation expense associated with our restructuring plan, which is included within restructuring and other. (2) The year ended December 31, 2023 includes an adjustment of $6.0 million to a previously-recognized acquisition milestone liability. (3) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents AOCI activity in equity: Foreign Currency Translation Adjustments Net Unrealized Gains (Losses) on Cash Flow Hedges (1) Total AOCI Gross balance as of December 31, 2021 (2) $ (52.9) $ 14.2 $ (38.7) Other comprehensive income (loss) before reclassifications (22.1) 171.2 149.1 Amounts reclassified from AOCI — 68.0 68.0 Other comprehensive income - 2022 (22.1) 239.2 217.1 $ (75.0) $ 253.4 178.4 Less: AOCI attributable to non-controlling interests (0.4) Balance as of December 31, 2022 $ 178.0 Gross balance as of December 31, 2022 (2) $ (75.0) $ 253.4 $ 178.4 Other comprehensive income (loss) before reclassifications (4.3) (146.2) (150.5) Amounts reclassified from AOCI (4.3) 87.8 83.5 Other comprehensive income - 2023 (8.6) (58.4) (67.0) $ (83.6) $ 195.0 111.4 Less: AOCI attributable to non-controlling interests (0.2) Balance as of December 31, 2023 $ 111.2 _________________________________ (1) Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. (2) Beginning balance is presented on a gross basis, excluding the allocation of AOCI attributable to non-controlling interests. The sale of certain assets and liabilities of our hosting business, as discussed in Note 14, resulted in the reclassification from AOCI of $4.3 million in cumulative foreign currency translation adjustments. This amount was included within the loss on disposal reported in restructuring and other in our statements of operations for the year ended December 31, 2023. See Note 11 for the effect on net income of amounts reclassified from AOCI related to our hedging relationships. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2024, we entered into an amendment to the Credit Facility to provide for a new tranche of term loans maturing in 2029, the proceeds of which were used to refinance our existing 2029 Term Loans. Pursuant to this amendment, these loans were issued at par and bear interest at a rate equal to, at our option, either (a) SOFR for the applicable interest period plus a margin of 2.0% per annum or (b) a margin of 1.0% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) SOFR for an interest period of one month plus 1.0%. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income attributable to GoDaddy Inc. | $ 1,374.8 | $ 352.2 | $ 242.3 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Aman Bhutani [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 8, 2023, Aman Bhutani, Chief Executive Officer, modified his previously adopted 10b5-1 trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. As modified, the 10b5-1 trading plan provides for the sale of an aggregate of 17,700 shares of the company's Class A common stock between March 2024 and June 2024. | |
Name | Aman Bhutani | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 8, 2023 | |
Arrangement Duration | 395 days | |
Aggregate Available | 17,700 | 17,700 |
Mark McCaffrey [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 7, 2023, Mark McCaffrey, Chief Financial Officer, modified his previously adopted 10b5-1 trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. As modified, the 10b5-1 trading plan provides for the sale of an aggregate of 8,000 shares of the company's Class A common stock between March 2024 and May 2024. | |
Name | Mark McCaffrey | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 7, 2023 | |
Arrangement Duration | 395 days | |
Aggregate Available | 8,000 | 8,000 |
Nick Daddario [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 27, 2023, Nick Daddario, Chief Accounting Officer, adopted a 10b5-1 trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The 10b5-1 trading plan provides for the sale of an aggregate of 3,078 shares of the company's Class A common stock between February 2024 and February 2025. | |
Name | Nick Daddario | |
Title | Chief Accounting Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 27, 2023 | |
Arrangement Duration | 395 days | |
Aggregate Available | 3,078 | 3,078 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Prior Period Reclassifications | Prior Period Reclassifications Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation. |
Use of Estimates | Use of Estimates GAAP requires us to make estimates and assumptions affecting amounts reported in our financial statements. Our more significant estimates include: • the relative stand-alone selling price (SSP) of the indicated performance obligations included in revenue arrangements with multiple performance obligations; • the estimated reserve for refunds; • the fair value of assets acquired and liabilities assumed in business acquisitions; • the assessment of recoverability of our goodwill, intangible assets and long-lived assets; • the estimated useful lives of intangible and depreciable assets; • the fair value of financial instruments; • the recognition, measurement and valuation of current and deferred income taxes; and • the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ. |
Segments | Segments We report our operating results through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core), as further discussed in Note 18. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Registry Deposits | Registry Deposits Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future domain registrations or renewals. |
Prepaid Domain Name Registry Fees | Prepaid Domain Name Registry Fees Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is recorded over the estimated useful lives of the applicable assets using the straight-line method beginning on the date an asset is placed in service. We regularly evaluate the estimated useful lives to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation. |
Capitalized Software Costs | Capitalized Software Costs We capitalize and amortize certain implementation costs related to cloud computing arrangements as well as costs incurred to develop software for internal-use during the application development phase. Costs related to the design or maintenance of internal-use software are included in technology and development expenses as incurred. We capitalized $17.9 million and $17.7 million of such costs during 2023 and 2022, respectively. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business acquisitions. Indefinite-lived intangible assets consist of the GoDaddy trade names and branding, our domain portfolio and certain contractual-based assets. Goodwill and indefinite-lived intangible assets are not amortized to earnings, but are assessed for impairment at least annually. As individual domains are sold, our indefinite-lived domain portfolio intangible asset is reduced by the allocated carrying cost of each domain, which is included in cost of revenue. Goodwill is assessed for impairment annually during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying value may not be recoverable. If, based on qualitative analysis, we determine it is more-likely-than-not the fair value of either of our reporting units is less than its carrying amount, a quantitative impairment test is performed. Our qualitative analysis did not indicate impairment of our goodwill during any of the periods presented. |
Indefinite-Lived Intangible Assets | Our indefinite-lived trade names and branding, domain portfolio and contractual-based assets are reviewed for impairment annually during the fourth quarter of each year. We also perform assessments at other times if events or changes in circumstances indicate the carrying amounts of these assets may not be fully recoverable. Any identified impairment losses are treated as permanent reductions in the carrying amounts of the assets. Our qualitative analysis did not indicate impairment of our indefinite-lived assets during any of the periods presented. |
Finite-Lived Intangible Assets | Long-Lived and Finite-Lived Intangible Assets Finite-lived intangible assets are amortized over the following estimated useful lives: Customer relationships 2-9 years Developed technology 2-7 years Trade names and other 1-10 years Our finite-lived intangible assets are primarily amortized on a straight-line basis. We annually evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. |
Impairment of Long-Lived and Finite-Lived Intangible Assets | Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset. Our analysis did not indicate impairment during any of the periods presented. |
Debt Issuance Costs | Debt Issuance Costs We capitalize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments and amortize such costs using the interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit facility, are reflected as a direct reduction of the carrying amount of the related debt liability. Debt issuance costs related to our revolving credit facility are reflected as an asset. |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to changes in foreign currency exchange rates, primarily relating to intercompany debt, the net assets of our foreign operations and sales transactions denominated in currencies other than the U.S. dollar, as well as to changes in interest rates as a result of our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risks. We do not enter into derivative transactions for speculative or trading purposes. We utilize a variety of derivative instruments and expect that each derivative instrument qualifying for hedge accounting will be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument designated as a hedge, we formally document, at inception, the related risk management strategy and objective, including identification of the hedging instrument, the hedged item and the risk of exposure. In addition, we formally assess, both at the inception and at least quarterly thereafter, whether the financial instruments used in the hedging transactions are effective at offsetting changes in either the fair values or cash flows of the relating underlying exposures. Our derivative instruments are recorded at fair value on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged. Cash Flow Hedges We utilize a variety of derivative instruments designated as cash flow hedges: • foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currencies; • cross-currency swaps used to manage variability due to movements in foreign currency exchange rates related to a Euro-denominated intercompany loan; and • pay-fixed rate, receive-floating rate interest rate swaps to effectively convert portions of our variable-rate debt to fixed. We reflect unrealized gains or losses on our cash flow hedges as components of accumulated other comprehensive income (loss) (AOCI). Gains and losses on these instruments are recorded as a component of AOCI until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from AOCI to earnings within the same line items as the underlying transactions. At inception, and each reporting period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective. Net Investment Hedges We use cross-currency swaps to reduce the risk associated with exchange rate fluctuations on our net investments in certain foreign operations. Changes in the fair value of these derivative instruments are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments (CTA). We elected to use the spot method to assess effectiveness of these derivatives. Under this method, changes in fair value of the hedging instruments attributed to changes in spot rates are initially recorded in the CTA component of AOCI and will remain there until the hedged net investments are sold or substantially liquidated. Changes in fair value of the hedging instruments other than those due to changes in the spot rate are initially recorded in the CTA component of AOCI and are amortized to interest expense using a systematic and rational method over the instruments' term. See Note 11 for further discussion of our derivative instruments. We are exposed to changes in foreign currency exchange rates, primarily relating to intercompany debt and certain forecasted sales transactions denominated in currencies other than the U.S. dollar, as well as to changes in interest rates as a result of our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risk. We do not enter into derivative transactions for speculative or trading purposes. We utilize the following derivative instruments designated as cash flow hedges: • foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currencies; • cross-currency swaps used to manage variability due to movements in foreign currency exchange rates related to a Euro-denominated intercompany loan; and • pay-fixed rate, receive-floating rate interest rate swaps to effectively convert portions of our variable-rate debt to fixed. |
Leases | Leases We lease office and data center space in various locations. We determine whether a contract contains a lease at contract inception. We have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. This election is made by class of underlying asset and was elected for our leases of office space, data center space and server equipment. We initially recognize and measure contracts containing a lease and determine lease classification at commencement. Right-of-use (ROU) assets and operating lease liabilities are measured based on the estimated present value of lease payments over the lease term. In determining the present value of lease payments, we use our estimated incremental borrowing rate when the rate implicit in the lease cannot be readily determined. The estimated incremental borrowing rate is based upon information available at lease commencement including publicly available data for debt instruments. The lease term includes periods covered by options to extend when it is reasonably certain we will exercise such options as well as periods subsequent to an option to terminate the lease if it is reasonably certain we will not exercise the termination option. Operating lease costs are recognized on a straight-line basis over the lease term while finance leases result in a front-loaded expense pattern. Variable lease costs, such as management fees, insurance, and common area maintenance, are not included in the measurement of ROU assets and lease liabilities and are expensed as incurred. On our balance sheets, assets and liabilities associated with operating leases are included within operating lease assets, accrued expenses and other current liabilities and operating lease liabilities. Assets and liabilities associated with finance leases are included in property and equipment, net, accrued expenses and other current liabilities and other long-term liabilities. |
Equity Investments | Equity Investments We hold investments in privately held equity securities, which are recorded in other assets and were as follows: Equity Investments Equity investments as of December 31, 2021 $ 40.0 Fair market value adjustments (1) 0.5 Equity investments as of December 31, 2022 40.5 Fair market value adjustments (1) 14.4 Impairment losses (1) (2.3) Additional investments 0.5 Equity investments as of December 31, 2023 $ 53.1 _________________________________ (1) Fair market value adjustments and impairment losses are recorded in other income (expense), net. These securities are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer or impairment. Investment gains and losses are recorded in other income (expense), net. Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available observable market data. A security's carrying value is not adjusted if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment. In determining the estimated fair value of our investments, we utilize the most recent data available to us. We assess our investments for impairment at least quarterly using both qualitative and quantitative factors. If an investment is considered impaired, we recognize an impairment loss and establish a new carrying value for the investment. Our analysis did not indicate impairment of our investments as of December 31, 2023. |
Foreign Currency | Foreign Currency Our functional and reporting currency is the U.S. dollar. Assets denominated in foreign currencies are remeasured into United States (U.S.) dollars at period-end exchange rates. Foreign currency-based revenue and expense transactions are measured at transaction date exchange rates. Foreign currency remeasurement gains and losses are recorded in other income (expense), net and were $(9.6) million, $(15.7) million and $(10.5) million during 2023, 2022 and 2021, respectively. For certain of our foreign subsidiaries whose functional currency is other than the U.S. dollar, we translate revenue and expense transactions at average exchange rates. We translate assets and liabilities at period-end exchange rates and include foreign currency translation gains and losses as a component of AOCI. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised product or service (product) is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for such product. We typically receive payment at the time of sale, the purpose of which is to provide our customers with a simplified and predictable way of purchasing our products. We have determined that our contracts do not include a significant financing component. Payments received in advance of our performance are initially recorded as deferred revenue and then recognized as revenue on a straight-line basis over the term of the contract. Revenue is recognized net of allowances for returns and applicable transaction-based taxes collected from customers. Our products are generally sold with a right of return within our policy, which is accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds result in a reduced amount of revenue recognized over the contract term of the applicable product. Our revenue is categorized as follows: Applications and Commerce . A&C revenue primarily consists of revenue from sales of products containing proprietary software such as Websites + Marketing and Managed WordPress and commerce products such as payment processing fees and point-of-sale (POS) hardware as well as sales of third-party email and productivity solutions such as Microsoft 365. A&C revenue also includes revenue from sales of products, such as website security products, when they are included in bundled offerings of our proprietary software products. Consideration is generally recorded as deferred revenue when received, which is typically at the time of sale, and revenue from most A&C products is recognized ratably over the period in which the performance obligations are satisfied, which is typically over the contract term. Payment processing fee revenue is recognized at the time of the transaction and revenue from the sale of POS hardware is recognized at the time when ownership is transferred to the customer. Core Platform . Core revenue primarily consists of revenue from 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 products. Core revenue also includes revenue from sales of products not containing a software component such as professional web services as well as fee surcharges paid to ICANN. Consideration is generally recorded as deferred revenue when received, which is typically at the time of sale, and revenue from most Core products is recognized ratably over the period in which the performance obligations are satisfied, which is typically over the contract term. Aftermarket domain revenue is recognized at the time when ownership of the domain is transferred to the buyer. Disaggregated Revenue Revenue by major product type was as follows: Year Ended December 31, 2023 2022 2021 Applications and commerce $ 1,430.4 $ 1,279.7 $ 1,128.3 Core platform: domains 2,018.5 1,959.2 1,815.9 Core platform: other 805.2 852.4 871.5 $ 4,254.1 $ 4,091.3 $ 3,815.7 No single customer represented over 10% of our total revenue for any period presented. Revenue by geography is based on the customer's billing address and was as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 2,873.0 $ 2,757.3 2,544.9 International 1,381.1 1,334.0 1,270.8 $ 4,254.1 $ 4,091.3 $ 3,815.7 No international country represented more than 10% of total revenue in any period presented. See Note 8 for information regarding our deferred revenue. Performance Obligations Our contracts with customers may include multiple performance obligations, including a combination of some or all of the following products: domain registrations, website hosting products, website building products, website security products and other cloud-based products. Judgment may be required in determining whether products contain multiple distinct performance obligations that should each be accounted for separately or as one combined performance obligation. Revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term. For each domain registration or renewal we provide, we have one performance obligation to our customers consisting of two promises: (1) to ensure the exclusive use of the domain during the applicable registration term and (2) to ensure the domain is accessible and appropriately directed to its underlying content. After the contract term expires, unless renewed, the customer can no longer access or use the domain. We have determined these promises are not distinct within the context of our contracts as they are highly interdependent and interrelated and are inputs to a combined benefit. Accordingly, we concluded that each domain registration or renewal represents one product offering and is a single performance obligation. We may also offer specific arrangements, such as our Websites + Marketing solution, in which we include promises to transfer multiple performance obligations in a single product offering. For such arrangements, we allocate the transaction price to each of the underlying distinct performance obligations based on its relative SSP, as described below. We have determined that generally each of our other products constitutes an individual product offering to our customers, and therefore have concluded that each is a single performance obligation. For arrangements with multiple performance obligations, we allocate revenue to each distinct performance obligation based on its relative SSP. We use judgment to determine SSP based on prices charged to customers for individual products, taking into consideration factors including historical and expected discounting practices, the size, volume and term length of transactions, customer demographics, the geographic areas in which our products are sold and our overall go-to-market strategy. Principal versus Agent Considerations We sell our products directly to customers and also through a network of resellers. In certain cases, we act as a reseller of products provided by others. The determination of gross or net revenue recognition is reviewed on a product-by-product basis and is dependent on our determination as to whether we act as principal or agent in the transaction. Revenue associated with sales of our products through a network of resellers is generally recorded on a net basis. Revenue associated with sales of aftermarket domains and third party solutions where we act as a reseller of products provided by others is generally recorded on a gross basis as we have determined that we control the product before transferring it to our end customers. Commissions paid to resellers are capitalized and amortized to cost of revenue consistent with the pattern of transfer of the products purchased. Assets Recognized from Contract Costs Fees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amortization expense of such asset was $765.3 million, $717.1 million and $675.1 million during 2023, 2022 and 2021, respectively. No other material contract costs were capitalized during any of the periods presented. Cost of Revenue (excluding depreciation and amortization) Costs of revenue are primarily the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain registration fees, payment processing fees, third-party commissions and licensing fees for third-party productivity applications. |
Technology and Development | Technology and Development 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 data centers and systems infrastructure supporting those products, excluding depreciation expense. |
Marketing and Advertising, Customer Care, General and Administrative, and Restructuring and Other | Marketing and Advertising 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. Advertising costs are expensed either as incurred, at the time a commercial initially airs or when a promotion first appears in the media. Advertising expenses were $247.1 million, $284.9 million and $378.3 million during 2023, 2022 and 2021, respectively. Customer Care Customer care expenses represent the costs to guide and service our customers, primarily consisting of personnel costs. General and Administrative General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, all employee travel expenses, acquisition-related expenses and other general costs. Restructuring and Other Restructuring and other for 2023 primarily represents: (i) charges related to the restructuring activities implemented during 2023, which were undertaken to reduce future operating expenses and improve cash flows through a combination of reductions in force and the sale of certain assets and liabilities of our hosting business within our Core segment; and (ii) a charge incurred in the second quarter of 2023 related to the termination of a revenue sharing agreement. Restructuring and other for 2022 consists primarily of severance and other exit costs as well as charges recorded in connection with the impairment and gains and losses on disposition of certain assets. |
Equity-Based Compensation | Equity-Based Compensation We have granted stock options at exercise prices equal to the fair market value of our Class A common stock on the grant date. We have granted both stock options and restricted stock units (RSUs) vesting solely upon the continued service of the recipient as well as performance-based awards (PSUs) with vesting based on either (i) our achievement of specified financial targets or (ii) our relative total stockholder return (TSR) as compared to a selected index of public Internet companies. We recognize the accounting grant date fair value of equity-based awards as compensation expense over the required service period of each award, taking into account the probability of our achievement of associated performance targets. On the settlement date of each three-year performance period associated with our TSR-based PSU grants, and only if a participant remains a Service Provider (as defined in the 2015 Equity Incentive Plan) on such date, a participant will receive shares of our Class A common stock ranging from 0% to 200% of the originally granted PSUs based on our relative TSR as compared to the companies within the selected index. Vesting of the PSUs is subject to the TSR market condition as well as approval of the performance by our board of directors following the end of each performance period. Equity-based awards are accounted for using the fair value method. RSUs and financial-based PSUs are measured based on the fair market value of the underlying common stock on their respective accounting grant dates. Grant date fair values for stock options, which we last granted in 2020, are determined using the Black-Scholes option pricing model and a single option award approach. The accounting grant date for financial-based PSUs is the date on which the applicable performance criteria are approved by our board of directors. The fair value of shares issued under our employee stock purchase plan is estimated on the first day of each offering period using the Black-Scholes option pricing model. We utilize an estimated forfeiture rate in our equity-based compensation expense calculations, which is based on an analysis of historical data. The cumulative effect of any changes to the forfeiture rate is recognized in the period in which the estimate is changed. We estimate the grant-date fair value of the TSR-based PSUs using a Monte Carlo simulation which requires assumptions for expected volatility, risk-free rate of return and dividend yield. Expected volatilities for GoDaddy and the companies within the index are derived using historical volatilities over a period equal to the length of the performance period. We base the risk-free rate of return on the yield of a zero-coupon U.S. Treasury bond with a maturity equal to the performance period, and assume a 0% dividend rate. Equity-based compensation expense for these PSUs is recognized over the requisite service period, regardless of whether the TSR market condition is satisfied. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and liabilities (DTLs) for the expected future tax consequences of events included in the financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in the period in which the enactment date occurs. We recognize DTAs to the extent we believe these assets are more-likely-than-not to be realized. In evaluating our ability to realize our DTAs, in full or in part, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, prudent and feasible tax planning strategies and recent results of operations. We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to income taxes are included in benefit (provision) for income taxes. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows: Level 1 — Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2 — Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and Level 3 — Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions. We hold certain assets required to be measured at fair value on a recurring basis. These include time deposits and money market funds, which we classify within Level 1 because we use quoted market prices to determine their fair value. Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 11. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are not active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets. |
Acquisitions | Acquisitions We determine whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is accounted for as an asset acquisition. If the threshold is not met, further assessment is undertaken to ascertain whether the acquisition meets the definition of a business. We include the results of operations of acquired businesses as of the respective acquisition dates. Purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. Measurement period adjustments to provisional purchase price allocations are recognized in the period in which they are determined, with the effect on earnings of changes in depreciation, amortization or other income resulting from such changes calculated as if the accounting had been completed at the acquisition date. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are charged to general and administrative expense as incurred. |
Concentrations of Risks | Concentrations of Risks Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents. Although we deposit cash with multiple banks, these deposits, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may generally be redeemed upon demand and bear minimal risk. No single customer represented over 10% of our total revenue for any period presented. In order to reduce the risk of downtime of the products we provide, we have established data centers in various geographic regions. We have internal procedures to restore products in the event of a service disruption or disaster at any of our data center facilities. We serve our customers and users from data center facilities operated either by us or third parties, which are most significantly located in Arizona, Virginia, France, Germany, the Netherlands and Singapore. Even with these procedures for disaster recovery in place, the availability of our products could be significantly interrupted during the implementation of restoration procedures. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Standards Accounting Board (FASB) issued guidance to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective for our 2024 fiscal year and interim periods in fiscal year 2025, with early adoption permitted. We are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Property and equipment consisted of the following: Estimated December 31, 2023 2022 Computer equipment 3 years $ 438.6 $ 486.1 Software 3-5 years 98.8 87.6 Land Indefinite 4.8 5.9 Buildings, including improvements 5-40 years 115.0 126.3 Leasehold improvements Lesser of useful life or remaining lease term 76.7 78.8 Other 1-20 years 16.3 18.0 Total property and equipment 750.2 802.7 Less: accumulated depreciation and amortization (564.9) (577.1) Property and equipment, net $ 185.3 $ 225.6 |
Property and Equipment, Net, by Geography | Property and equipment, net by geography was as follows: December 31, 2023 2022 U.S. $ 146.9 $ 167.5 France 19.8 28.8 All other international 18.6 29.3 $ 185.3 $ 225.6 |
Schedule of Prior Period Revisions | Finite-lived intangible assets are amortized over the following estimated useful lives: Customer relationships 2-9 years Developed technology 2-7 years Trade names and other 1-10 years Intangible assets, net are summarized as follows: December 31, 2023 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 233.6 n/a 233.6 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 459.3 $ (352.2) 107.1 Developed technology 246.8 (205.6) 41.2 Trade names and other 104.8 (65.8) 39.0 $ 1,782.2 $ (623.6) $ 1,158.6 December 31, 2022 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 |
Summary of Investments in Privately Held Equity Securities | We hold investments in privately held equity securities, which are recorded in other assets and were as follows: Equity Investments Equity investments as of December 31, 2021 $ 40.0 Fair market value adjustments (1) 0.5 Equity investments as of December 31, 2022 40.5 Fair market value adjustments (1) 14.4 Impairment losses (1) (2.3) Additional investments 0.5 Equity investments as of December 31, 2023 $ 53.1 _________________________________ (1) Fair market value adjustments and impairment losses are recorded in other income (expense), net. |
Revenue from External Customers by Products and Services | Revenue by major product type was as follows: Year Ended December 31, 2023 2022 2021 Applications and commerce $ 1,430.4 $ 1,279.7 $ 1,128.3 Core platform: domains 2,018.5 1,959.2 1,815.9 Core platform: other 805.2 852.4 871.5 $ 4,254.1 $ 4,091.3 $ 3,815.7 |
Revenue by Geography | Revenue by geography is based on the customer's billing address and was as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 2,873.0 $ 2,757.3 2,544.9 International 1,381.1 1,334.0 1,270.8 $ 4,254.1 $ 4,091.3 $ 3,815.7 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis: December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Commercial paper $ — $ 39.6 $ — $ 39.6 Time deposits 40.0 — — 40.0 Short-term investments: Time deposits 40.0 — — 40.0 Derivative assets — 128.6 — 128.6 Total assets $ 80.0 $ 168.2 $ — $ 248.2 Liabilities: Derivative liabilities $ — $ 46.4 $ — $ 46.4 Total liabilities $ — $ 46.4 $ — $ 46.4 December 31, 2022 Assets: Level 1 Level 2 Level 3 Total Cash and cash equivalents: Commercial paper $ — $ 120.0 $ — $ 120.0 Time deposits and money market funds 347.3 — — 347.3 Derivative assets — 218.5 — 218.5 Total assets $ 347.3 $ 338.5 $ — $ 685.8 Liabilities: Derivative liabilities $ — $ 4.9 $ — $ 4.9 Total liabilities $ — $ 4.9 $ — $ 4.9 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of the Estimated Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the acquisition date fair values of the aggregate assets acquired and liabilities assumed: Total purchase consideration $ 381.3 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 4.2 Indefinite-lived intangibles assets 1.3 Finite-lived intangible assets 66.0 Other assets and liabilities, net (0.5) Total assets acquired, net of liabilities assumed 71.0 Goodwill $ 310.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following table summarizes changes in our goodwill balance by segment: A&C Core Total Balance at December 31, 2021 $ 1,522.5 $ 2,018.3 $ 3,540.8 Goodwill related to acquisitions — 56.3 56.3 Impact of foreign currency translation (31.7) (43.0) (74.7) Purchase accounting adjustments related to prior period acquisitions 6.2 8.3 14.5 Balance at December 31, 2022 1,497.0 2,039.9 3,536.9 Impact of foreign currency translation 16.6 23.0 39.6 Less: goodwill related to disposition of businesses — (3.3) (3.3) Other adjustments — (3.9) (3.9) Balance at December 31, 2023 $ 1,513.6 $ 2,055.7 $ 3,569.3 |
Summary of Finite-Lived Intangible Assets | Finite-lived intangible assets are amortized over the following estimated useful lives: Customer relationships 2-9 years Developed technology 2-7 years Trade names and other 1-10 years Intangible assets, net are summarized as follows: December 31, 2023 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 233.6 n/a 233.6 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 459.3 $ (352.2) 107.1 Developed technology 246.8 (205.6) 41.2 Trade names and other 104.8 (65.8) 39.0 $ 1,782.2 $ (623.6) $ 1,158.6 December 31, 2022 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 |
Summary of Indefinite-Lived Intangible Assets | Intangible assets, net are summarized as follows: December 31, 2023 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 233.6 n/a 233.6 Contractual-based assets 292.7 n/a 292.7 Finite-lived intangible assets: Customer-related 459.3 $ (352.2) 107.1 Developed technology 246.8 (205.6) 41.2 Trade names and other 104.8 (65.8) 39.0 $ 1,782.2 $ (623.6) $ 1,158.6 December 31, 2022 Gross Carrying Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 243.2 n/a 243.2 Contractual-based assets 256.8 n/a 256.8 Finite-lived intangible assets: Customer-related 487.7 $ (309.0) 178.7 Developed technology 243.9 (171.1) 72.8 Trade names and other 109.8 (54.1) 55.7 $ 1,786.4 $ (534.2) $ 1,252.2 |
Expected Future Amortization Expense of Finite-Lived Intangible Assets | Based on the balance of finite-lived intangible assets at December 31, 2023, expected future amortization expense is as follows: Year Ending December 31: 2024 $ 83.2 2025 75.5 2026 21.7 2027 3.8 2028 1.9 Thereafter 1.2 $ 187.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Approved Share Repurchase Programs and Open Market Repurchases of Common Stock | In addition to the ASRs discussed above, we also made the following open market repurchases of our Class A common stock: Year Ended December 31, Number of Shares Repurchased Aggregate Purchase Price (1) 2023 17,356 $ 1,264.4 2022 7,642 $ 550.1 2021 3,500 $ 275.9 _________________________________ (1) The aggregate purchase price includes commissions paid in connection with the repurchases. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2023 2022 Derivative assets $ 127.2 $ 209.6 Prepaid software and maintenance expenses 23.0 29.5 Usage-based prepaid expenses (1) 8.8 10.6 Other 18.2 22.1 $ 177.2 $ 271.8 _________________________________ (1) Usage-based prepaid expenses include various cost of sales, marketing, rent and other prepaid commitments that are amortized as the funds are used. |
Equity-Based Compensation Pla_2
Equity-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity: Number of Weighted- Weighted- Weighted- Aggregate Outstanding at December 31, 2020 3,428 42.79 Exercised (1,168) 36.72 51.0 Forfeited (261) 68.77 Outstanding at December 31, 2021 1,999 42.94 Exercised (536) 37.04 22.9 Forfeited (37) 72.94 Outstanding at December 31, 2022 1,426 44.38 Exercised (557) 35.23 26.1 Forfeited (24) 72.28 Outstanding at December 31, 2023 845 49.60 4.1 47.8 Vested at December 31, 2023 843 49.54 4.1 47.7 |
Summary of Stock Award Activity | The following table summarizes stock award activity: Number of Outstanding at December 31, 2020 (1) 6,133 Granted: RSUs 4,332 Granted: TSR-based PSUs 426 Vested (2,645) Forfeited (1,480) Outstanding at December 31, 2021 (1) 6,766 Granted: RSUs 4,369 Granted: TSR-based PSUs 246 Vested (2,734) Forfeited (1,015) Outstanding at December 31, 2022 (1) 7,632 Granted: RSUs 3,484 Granted: TSR-based PSUs 265 TSR-based PSU achievement above target 91 Vested (4,215) Forfeited (1,000) Outstanding at December 31, 2023 (1) 6,257 _________________________________ (1) The balance of outstanding awards is comprised of the following: Number of Shares of Class A Common Stock (#) Weighted Average Fair Value Per Share ($) RSUs 6,058 77.37 TSR-based PSUs 558 107.05 Financial-based PSUs granted for accounting purposes 75 78.62 Financial-based PSUs not yet granted for accounting purposes 75 n/a Outstanding at December 31, 2021 6,766 RSUs 6,890 80.32 TSR-based PSUs 676 121.00 Financial-based PSUs granted for accounting purposes 41 82.52 Financial-based PSUs not yet granted for accounting purposes 25 n/a Outstanding at December 31, 2022 7,632 RSUs 5,531 79.14 TSR-based PSUs 701 119.28 Financial-based PSUs granted for accounting purposes 25 77.23 Outstanding at December 31, 2023 6,257 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Deferred Revenue | Deferred revenue consisted of the following: December 31, 2023 2022 Current: A&C $ 683.8 $ 622.1 Core 1,391.1 1,331.9 $ 2,074.9 $ 1,954.0 Noncurrent: A&C $ 173.5 $ 173.1 Core 628.9 597.2 $ 802.4 $ 770.3 |
Aggregate Remaining Performance Obligations Expected to be Recognized as Revenue | Deferred revenue as of December 31, 2023 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are expected to be satisfied, as follows: 2024 2025 2026 2027 2028 Thereafter Total A&C $ 683.8 $ 121.6 $ 38.3 $ 7.8 $ 3.2 $ 2.6 $ 857.3 Core 1,391.1 343.1 129.9 67.4 34.6 53.9 2,020.0 $ 2,074.9 $ 464.7 $ 168.2 $ 75.2 $ 37.8 $ 56.5 $ 2,877.3 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: December 31, 2023 2022 Accrued payroll and employee benefits $ 143.6 $ 116.3 Tax-related accruals 56.2 42.8 Derivative liabilities 46.4 4.9 Accrued legal and professional 34.2 34.3 Current portion of operating lease liabilities 29.1 33.3 Accrued acquisition-related expenses and acquisition consideration payable 20.6 26.2 Accrued marketing and advertising 12.3 13.6 Accrued restructuring costs 7.4 — Other 92.4 85.3 $ 442.2 $ 356.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Composition of Long-Term Debt | Long-term debt consisted of the following: December 31, Maturity Date 2023 2022 2027 Term Loans (effective interest rate of 7.4% at December 31, 2023 and 4.3% at December 31, 2022) August 10, 2027 $ 723.8 $ 731.3 2029 Term Loans (effective interest rate of 8.4% at December 31, 2023 and 4.1% at December 31, 2022) November 10, 2029 1,752.3 1,770.0 2027 Senior Notes (effective interest rate of 5.4% at December 31, 2023 and December 31, 2022) December 1, 2027 600.0 600.0 2029 Senior Notes (effective interest rate of 3.6% at December 31, 2023 and December 31, 2022) March 1, 2029 800.0 800.0 Revolver November 10, 2027 — — Total 3,876.1 3,901.3 Less: unamortized original issue discount and debt issuance costs (1) (59.7) (70.2) Less: current portion of long-term debt (17.9) (18.2) $ 3,798.5 $ 3,812.9 _________________________________ (1) Original issue discount and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the interest method. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The estimated fair values of our long-term debt instruments are based on observable market prices for these instruments, which are traded in less active markets and therefore classified as Level 2 fair value measurements, and were as follows as of December 31, 2023: 2027 Term Loans $ 726.0 2029 Term Loans $ 1,760.0 2027 Senior Notes $ 589.5 2029 Senior Notes $ 729.0 |
Aggregate Principal Payments Due on Long-Term Debt | Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of December 31, 2023 were as follows: Year Ending December 31: 2024 $ 25.1 2025 25.1 2026 25.1 2027 1,318.9 2028 17.6 Thereafter 2,464.3 $ 3,876.1 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivatives | The following table summarizes our outstanding derivative instruments on a gross basis, all of which are considered Level 2 financial instruments: Notional Amount Fair Value of Derivative Assets (2) Fair Value of Derivative Liabilities (2) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cash flow hedges: Foreign exchange forward contracts (1) $ 592.1 $ 364.7 $ 1.4 $ 9.4 $ 14.7 $ 2.0 Cross-currency swaps (2) 560.8 549.7 — 15.8 13.9 2.2 Interest rate swaps 1,959.7 1,980.5 127.2 173.0 — — Net investment hedges: Cross-currency swaps (3) 718.8 704.6 — 20.3 17.8 0.7 Total hedges $ 3,831.4 $ 3,599.5 $ 128.6 $ 218.5 $ 46.4 $ 4.9 _________________________________ (1) The notional amount includes $1.0 million of foreign exchange forward contracts not designated as cash flow hedges, the aggregate fair value of which was $1.2 million at December 31, 2023. (2) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect at December 31, 2023 and 2022 of approximately 1.1 and 1.07, respectively. (3) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets accrued expenses and other current liabilities |
Summary of Gains (Losses) on Derivative Instruments | The following table summarizes the effect of our hedging relationships on AOCI: Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) Year Ended December 31, 2023 2022 2021 Cash flow hedges: Foreign exchange forward contracts (1) $ (29.8) $ 24.3 $ 16.3 Cross-currency swap (12.8) 54.0 (15.5) Interest rate swaps (46.3) 158.3 48.4 Net investment hedges: Cross-currency swaps (38.1) 20.3 — Total hedges $ (127.0) $ 256.9 $ 49.2 _________________________________ (1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships: Year Ended December 31, 2023 2022 2021 Revenue Interest Expense Other Income (Expense), Net Revenue Interest Expense Other Income (Expense), Net Revenue Interest Expense Other Income (Expense), Net Cash flow hedges: Foreign exchange forward contracts: Reclassified from AOCI into income $ 16.3 $ — $ — $ 5.3 $ — $ (8.9) $ — Cross-currency swaps: Reclassified from AOCI into income (1) — 9.6 (17.0) — 14.9 41.5 — 27.3 100.6 Interest rate swaps: Reclassified from AOCI into income — 66.4 — — (5.0) — — (35.0) — Net investment hedges: Cross-currency swaps: Reclassified from AOCI into income — 12.5 — — 11.3 — — — Total hedges $ 16.3 $ 88.5 $ (17.0) $ 5.3 $ 21.2 $ 41.5 $ (8.9) $ (7.7) $ 100.6 _________________________________ (1) The amounts reflected in other income (expense), net include $16.8 million, $(41.3) million and $(101.8) million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during 2023, 2022 and 2021, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expenses | The components of operating lease expense were as follows: Year Ended December 31, 2023 2022 2021 Operating lease costs $ 36.8 $ 44.5 $ 48.2 Variable lease costs 14.7 12.0 10.4 Sublease income (14.2) (8.3) (4.3) Total net lease cost $ 37.3 $ 48.2 $ 54.3 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2023 were as follows: Year Ending December 31: 2024 $ 34.7 2025 23.3 2026 19.9 2027 14.7 2028 9.5 Thereafter 39.0 Total lease payments 141.1 Less: imputed interest (21.8) Total operating lease liabilities $ 119.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Obligations under Non-Cancelable Agreements | Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2023 are as follows: Year Ending December 31: 2024 $ 169.0 2025 127.3 2026 101.1 2027 116.6 2028 15.9 Thereafter 2.5 $ 532.4 |
Restructuring and Other Charg_2
Restructuring and Other Charges and Disposition of Businesses and Related Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Activity in the Restructuring Related Accruals | The following table shows the total amount incurred and the accrued restructuring costs, which are recorded in accrued expenses and other current liabilities in our balance sheet, for severance and employee benefits as of December 31, 2023: Accrued Restructuring Costs Accrued restructuring costs as of December 31, 2022 $ — Restructuring costs incurred (1) 46.1 Amount paid (38.7) Accrued restructuring costs as of December 31, 2023 $ 7.4 ________________________________ (1) Excludes $2.3 million in equity-based compensation expense associated with our restructuring plan, which was recorded within additional paid-in capital. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Benefit (Provision) for Income Taxes | Our benefit (provision) for income taxes includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income (loss) before income taxes were as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 477.2 $ 418.6 $ 310.3 Foreign (73.4) (62.1) (56.7) Income before income taxes $ 403.8 $ 356.5 $ 253.6 Our benefit (provision) for income taxes was as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ (0.8) $ (1.3) $ (2.1) State (5.4) (0.9) (2.9) Foreign (14.9) (16.9) (22.6) (21.1) (19.1) (27.6) Deferred: Federal 860.5 (0.7) 2.3 State 116.3 (0.5) 0.2 Foreign 16.1 16.7 14.3 992.9 15.5 16.8 Benefit (provision) for income taxes $ 971.8 $ (3.6) $ (10.8) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows: Year Ended December 31, 2023 2022 2021 Expected provision at U.S. federal statutory tax rate $ (84.8) $ (74.9) $ (53.3) Effect of investment in Desert Newco 22.7 (22.0) (50.4) Research and development credits 33.1 29.2 21.9 Foreign earnings 0.2 3.7 (0.9) Effect of changes in tax rates and apportionment (97.1) — (3.6) Uncertain tax positions (17.1) (10.6) (10.7) State taxes, net of federal benefit (1.6) 2.9 (31.5) Effect of restructurings of domestic subsidiary — (7.0) — Non-deductible expenses (5.1) Other (0.9) (1.9) 3.8 Effect of changes in valuation allowances 1,122.4 77.0 113.9 Benefit (provision) for income taxes $ 971.8 $ (3.6) $ (10.8) |
Schedule of Deferred Tax Assets and Liabilities | The components of our deferred taxes were as follows: December 31, 2023 2022 DTAs: Investment in Desert Newco $ 697.2 $ 800.0 NOLs 473.1 523.2 Tax credits 167.6 134.4 Deferred interest 44.0 38.2 Operating lease liabilities 15.3 17.8 Other 9.3 9.9 Valuation allowance (377.5) (1,504.8) Total DTAs 1,029.0 18.7 DTLs: Identified intangible assets (40.0) (61.3) Operating lease assets (6.4) (8.1) Total DTLs (46.4) (69.4) Net DTAs $ 982.6 $ (50.7) |
Summary of Operating Loss Carryforwards | As of December 31, 2023, we had U.S. federal, state and foreign gross NOLs and tax credits, a portion of which will begin to expire in 2030, as follows: Gross NOLs and Tax Credits Portion Subject to a Valuation Allowance Federal $ 1,916.6 86.4 State 2,786.7 2,016.7 Foreign 38.6 22.9 $ 4,741.9 $ 2,126.0 |
Summary of Tax Credit Carryforwards | As of December 31, 2023, we had U.S. federal, state and foreign gross NOLs and tax credits, a portion of which will begin to expire in 2030, as follows: Gross NOLs and Tax Credits Portion Subject to a Valuation Allowance Federal $ 1,916.6 86.4 State 2,786.7 2,016.7 Foreign 38.6 22.9 $ 4,741.9 $ 2,126.0 |
Schedule of Unrecognized Tax Benefits Roll Forward | Our liability for unrecognized tax benefits was as follows: December 31, 2023 2022 Balance at beginning of period $ 139.7 $ 120.7 Gross increases - tax positions in prior period 6.8 7.2 Gross increases - tax positions in current period 23.2 11.8 Gross decreases - tax positions in prior period (4.0) — Balance at end of period $ 165.7 $ 139.7 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted Net Income (Loss) Per Share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 1,375.6 $ 352.9 $ 242.8 Less: net income attributable to non-controlling interests 0.8 0.7 0.5 Net income attributable to GoDaddy Inc. $ 1,374.8 $ 352.2 $ 242.3 Denominator: Weighted-average shares of Class A common stock outstanding—basic 148,296 158,788 167,906 Effect of dilutive securities: Class B common stock 290 313 414 Stock options 460 678 1,127 RSUs, PSUs and ESPP shares 2,406 1,678 1,658 Weighted-average shares of Class A Common stock outstanding—diluted 151,452 161,457 171,105 Net income attributable to GoDaddy Inc. per share of Class A common stock—basic $ 9.27 $ 2.22 $ 1.44 Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (1) $ 9.08 $ 2.19 $ 1.42 _________________________________ (1) The diluted income per share calculations exclude net income attributable to non-controlling interests, unless the effect is antidilutive. |
Summary of Weighted Average Potentially Dilutive Shares | The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income per share because the effect of including such potentially dilutive shares would have been antidilutive: Year Ended December 31, 2023 2022 2021 Stock options 19 234 544 RSUs, PSUs and ESPP shares 780 492 881 799 726 1,425 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents our segment information for the periods indicated: Year Ended December 31, 2023 2022 2021 Revenue: A&C $ 1,430.4 $ 1,279.7 $ 1,128.3 Core 2,823.7 2,811.6 2,687.4 Total revenue $ 4,254.1 $ 4,091.3 $ 3,815.7 Segment EBITDA: A&C $ 594.2 $ 522.8 $ 447.7 Core 816.4 783.7 679.7 Total Segment EBITDA 1,410.6 1,306.5 1,127.4 Unallocated corporate overhead (276.1) (293.5) (255.2) Depreciation and amortization (171.3) (194.6) (199.6) Equity-based compensation expense (1) (294.0) (264.4) (207.9) Interest expense, net of interest income (155.4) (135.0) (124.9) Acquisition-related expenses (2) (12.1) (35.1) (78.2) Restructuring and other (3) (97.9) (27.4) (8.0) Income before income taxes 403.8 356.5 253.6 Benefit (provision) for income taxes 971.8 (3.6) (10.8) Net income $ 1,375.6 $ 352.9 $ 242.8 _________________________________ (1) The year ended December 31, 2023 excludes $2.3 million of equity-based compensation expense associated with our restructuring plan, which is included within restructuring and other. (2) The year ended December 31, 2023 includes an adjustment of $6.0 million to a previously-recognized acquisition milestone liability. (3) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
AOCI Activity in Equity | The following table presents AOCI activity in equity: Foreign Currency Translation Adjustments Net Unrealized Gains (Losses) on Cash Flow Hedges (1) Total AOCI Gross balance as of December 31, 2021 (2) $ (52.9) $ 14.2 $ (38.7) Other comprehensive income (loss) before reclassifications (22.1) 171.2 149.1 Amounts reclassified from AOCI — 68.0 68.0 Other comprehensive income - 2022 (22.1) 239.2 217.1 $ (75.0) $ 253.4 178.4 Less: AOCI attributable to non-controlling interests (0.4) Balance as of December 31, 2022 $ 178.0 Gross balance as of December 31, 2022 (2) $ (75.0) $ 253.4 $ 178.4 Other comprehensive income (loss) before reclassifications (4.3) (146.2) (150.5) Amounts reclassified from AOCI (4.3) 87.8 83.5 Other comprehensive income - 2023 (8.6) (58.4) (67.0) $ (83.6) $ 195.0 111.4 Less: AOCI attributable to non-controlling interests (0.2) Balance as of December 31, 2023 $ 111.2 _________________________________ (1) Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. (2) Beginning balance is presented on a gross basis, excluding the allocation of AOCI attributable to non-controlling interests. |
Organization and Background (De
Organization and Background (Details) | 12 Months Ended | |||
Dec. 31, 2023 segment vote shares | Dec. 12, 2023 vote shares | Dec. 11, 2023 shares | Dec. 31, 2022 shares | |
Entity Information [Line Items] | ||||
Votes per share held | vote | 1 | |||
Number of reporting units | segment | 2 | |||
Number of operating segments | segment | 2 | |||
Class A Common Stock | ||||
Entity Information [Line Items] | ||||
Common stock outstanding (in shares) | 142,051,000 | 153,830,000 | ||
Common stock shares issued (in shares) | 142,051,000 | 153,830,000 | ||
Class B Common Stock | ||||
Entity Information [Line Items] | ||||
Common stock outstanding (in shares) | 259,000 | 312,000 | ||
Common stock shares issued (in shares) | 259,000 | 312,000 | ||
Votes per share held | vote | 1 | |||
Desert Newco, LLC | ||||
Entity Information [Line Items] | ||||
Ownership percent in Desert Newco | 100% | |||
Common stock outstanding (in shares) | 271 | |||
Desert Newco, LLC | Class B Common Stock | ||||
Entity Information [Line Items] | ||||
Common stock outstanding (in shares) | 259 | |||
GoDaddy Inc. | Class A Common Stock | ||||
Entity Information [Line Items] | ||||
Common stock shares issued (in shares) | 271 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Entity Information [Line Items] | |||
Cash and cash equivalents related to payment processor transactions | $ 41.2 | $ 30.4 | |
Depreciation | 61.3 | 61.2 | $ 68.4 |
Capitalized internal-use software costs | 17.9 | 17.7 | |
Amortization of contract costs | 765.3 | 717.1 | 675.1 |
Advertising expense | $ 247.1 | 284.9 | 378.3 |
TSR-based PSUs | |||
Entity Information [Line Items] | |||
Performance period | 3 years | ||
Other Income (Expense), Net | |||
Entity Information [Line Items] | |||
Foreign currency (losses) | $ (9.6) | $ (15.7) | $ (10.5) |
Dividend Rate | TSR-based PSUs | |||
Entity Information [Line Items] | |||
Measurement input for share-based compensation awards | 0 | ||
Minimum | TSR-based PSUs | |||
Entity Information [Line Items] | |||
Percent of originally granted PSUs received as shares on the settlement date | 0% | ||
Maximum | TSR-based PSUs | |||
Entity Information [Line Items] | |||
Percent of originally granted PSUs received as shares on the settlement date | 200% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment, Net by Geography (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 185.3 | $ 225.6 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 146.9 | 167.5 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 19.8 | 28.8 |
All other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 18.6 | $ 29.3 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 750.2 | $ 802.7 | |
Less: accumulated depreciation and amortization | (564.9) | (577.1) | |
Property and equipment, net | 185.3 | 225.6 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 438.6 | 486.1 | |
Estimated useful life | 3 years | ||
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 98.8 | 87.6 | |
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 4.8 | 5.9 | |
Buildings, including improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 115 | 126.3 | |
Buildings, including improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Buildings, including improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 76.7 | 78.8 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 16.3 | $ 18 | |
Other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 1 year | ||
Other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 20 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Finite-Lived Intangible Assets (Details) | Dec. 31, 2021 |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 2 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 9 years |
Developed technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 2 years |
Developed technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 7 years |
Trade names and other | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 1 year |
Trade names and other | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Investments in Privately Held Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) In Equity Investments [Roll Forward] | ||
Equity investments, Beginning balance | $ 40.5 | $ 40 |
Fair market value adjustments | 14.4 | 0.5 |
Impairment losses | (2.3) | |
Additional investments | 0.5 | |
Equity investments, Ending balance | $ 53.1 | $ 40.5 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Revenue by Product Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,254.1 | $ 4,091.3 | $ 3,815.7 |
A&C | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,430.4 | 1,279.7 | 1,128.3 |
Core | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,823.7 | 2,811.6 | 2,687.4 |
Core | A&C | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,018.5 | 1,959.2 | 1,815.9 |
Core | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 805.2 | $ 852.4 | $ 871.5 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 4,254.1 | $ 4,091.3 | $ 3,815.7 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,873 | 2,757.3 | 2,544.9 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 1,381.1 | $ 1,334 | $ 1,270.8 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value Measured on a Recurring Basis - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Derivative assets | $ 128.6 | $ 218.5 |
Total assets | 248.2 | 685.8 |
Liabilities: | ||
Derivative liabilities | 46.4 | 4.9 |
Total liabilities | 46.4 | 4.9 |
Level 1 | ||
Cash and cash equivalents: | ||
Derivative assets | 0 | 0 |
Total assets | 80 | 347.3 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Cash and cash equivalents: | ||
Derivative assets | 128.6 | 218.5 |
Total assets | 168.2 | 338.5 |
Liabilities: | ||
Derivative liabilities | 46.4 | 4.9 |
Total liabilities | 46.4 | 4.9 |
Level 3 | ||
Cash and cash equivalents: | ||
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Commercial paper | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 39.6 | 120 |
Commercial paper | Level 1 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 0 | 0 |
Commercial paper | Level 2 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 39.6 | 120 |
Commercial paper | Level 3 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 40 | |
Time deposits | Level 1 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 40 | |
Time deposits | Level 2 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 0 | |
Time deposits | Level 3 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 0 | |
Time deposits and money market funds | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 347.3 | |
Time deposits and money market funds | Level 1 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 347.3 | |
Time deposits and money market funds | Level 2 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 0 | |
Time deposits and money market funds | Level 3 | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | $ 0 | |
Time deposits | ||
Cash and cash equivalents: | ||
Short-term investments | 40 | |
Time deposits | Level 1 | ||
Cash and cash equivalents: | ||
Short-term investments | 40 | |
Time deposits | Level 2 | ||
Cash and cash equivalents: | ||
Short-term investments | 0 | |
Time deposits | Level 3 | ||
Cash and cash equivalents: | ||
Short-term investments | $ 0 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2022 USD ($) | Feb. 28, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) acquisition | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,569.3 | $ 3,536.9 | $ 3,540.8 | |||
Aggregate holdback and contingent consideration payments | 10.5 | 12.3 | 15.5 | |||
Dan.com | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 69.6 | |||||
Goodwill | 56.3 | |||||
Expected tax deductible amount | 0 | |||||
Finite-lived intangible assets | 17.6 | |||||
Net liabilities assumed related to acquisitions | $ 4.3 | |||||
Weighted average useful life | 3 years 3 months 18 days | |||||
Poynt Co. and Other Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Expected tax deductible amount | $ 0 | |||||
Number of businesses acquired | acquisition | 3 | |||||
Poynt Co. | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 310.3 | |||||
Finite-lived intangible assets | 66 | |||||
Net liabilities assumed related to acquisitions | $ (71) | |||||
Weighted average useful life | 4 years 1 month 6 days | |||||
Total purchase consideration | $ 297.1 | |||||
Cash compensation expense | $ 29.4 | |||||
Contingent consideration liabilities | $ 45 | |||||
Consideration period | 3 years | |||||
Aggregate holdback and contingent consideration payments | $ 6.9 | $ 14.3 | ||||
Series Of Individually Immaterial Business Acquisitions, 2021 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 65.7 | |||||
Number of businesses acquired | acquisition | 2 | |||||
Contingent earn-out payments (up to) | $ 18.5 | |||||
Financial milestone | 2 years |
Business Acquisitions - Summary
Business Acquisitions - Summary of the Estimated Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2021 |
Fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 3,569.3 | $ 3,536.9 | $ 3,540.8 | |
Poynt Co. | ||||
Business Acquisition [Line Items] | ||||
Total purchase consideration | $ 381.3 | |||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 4.2 | |||
Indefinite-lived intangibles assets | 1.3 | |||
Finite-lived intangible assets | 66 | |||
Other assets and liabilities, net | (0.5) | |||
Total assets acquired, net of liabilities assumed | 71 | |||
Goodwill | $ 310.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Purchases of intangible assets | $ 35.4 | $ 0.4 | $ 202.1 |
Purchases of intangible assets | 200.1 | ||
Variable earn-out payment | 4 | 12 | |
Amortization expense | $ 104.9 | $ 128.9 | 127.9 |
Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining amortization period | 30 months | ||
Customer-related | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining amortization period | 27 months | ||
Developed technology | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining amortization period | 24 months | ||
Trade names and other | Weighted Average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining amortization period | 45 months | ||
Contractual-Based Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchases of intangible assets | $ 1.5 | ||
TDL's indefinite-lived contractual-based intangible assets | $ 186.8 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,536.9 | $ 3,540.8 |
Goodwill related to acquisitions | 56.3 | |
Impact of foreign currency translation | 39.6 | (74.7) |
Less: goodwill related to disposition of businesses | (3.3) | |
Other adjustments | (3.9) | 14.5 |
Ending balance | 3,569.3 | 3,536.9 |
A&C | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,497 | 1,522.5 |
Goodwill related to acquisitions | 0 | |
Impact of foreign currency translation | 16.6 | (31.7) |
Less: goodwill related to disposition of businesses | 0 | |
Other adjustments | 0 | 6.2 |
Ending balance | 1,513.6 | 1,497 |
Core | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,039.9 | 2,018.3 |
Goodwill related to acquisitions | 56.3 | |
Impact of foreign currency translation | 23 | (43) |
Less: goodwill related to disposition of businesses | (3.3) | |
Other adjustments | (3.9) | 8.3 |
Ending balance | $ 2,055.7 | $ 2,039.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (623.6) | $ (534.2) |
Net Carrying Amount | 187.3 | |
Gross Carrying Amount | 1,782.2 | 1,786.4 |
Accumulated Amortization | (623.6) | (534.2) |
Net Carrying Amount | 1,158.6 | 1,252.2 |
Trade names and branding | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 445 | 445 |
Domain portfolio | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 233.6 | 243.2 |
Contractual-based assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 292.7 | 256.8 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 459.3 | 487.7 |
Accumulated Amortization | (352.2) | (309) |
Net Carrying Amount | 107.1 | 178.7 |
Accumulated Amortization | (352.2) | (309) |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 246.8 | 243.9 |
Accumulated Amortization | (205.6) | (171.1) |
Net Carrying Amount | 41.2 | 72.8 |
Accumulated Amortization | (205.6) | (171.1) |
Trade names and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 104.8 | 109.8 |
Accumulated Amortization | (65.8) | (54.1) |
Net Carrying Amount | 39 | 55.7 |
Accumulated Amortization | $ (65.8) | $ (54.1) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Expected Future Amortization Expense of Finite-Lived Intangible Assets (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 83.2 |
2025 | 75.5 |
2026 | 21.7 |
2027 | 3.8 |
2028 | 1.9 |
Thereafter | 1.2 |
Net Carrying Amount | $ 187.3 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2022 $ / shares shares | Feb. 28, 2022 USD ($) | Aug. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) vote $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 12, 2023 vote | Aug. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |||||||||
Preferred stock shares authorized (in shares) | shares | 50,000,000 | 50,000,000 | |||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Votes per share held | vote | 1 | ||||||||
Repurchase of common stock | $ | $ 1,270.2 | $ 1,294.6 | $ 526 | ||||||
Authorized amount remaining | $ | $ 1,435.5 | ||||||||
Class A Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock shares authorized (in shares) | shares | 1,000,000,000 | 1,000,000,000 | |||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Repurchases of shares (in shares) | shares | 17,356,000 | 7,642,000 | 3,500,000 | ||||||
Repurchase of additional stock | $ | $ 1,000 | $ 2,251 | |||||||
Total authorized amount | $ | $ 4,000 | $ 3,000 | |||||||
Class A Common Stock | New Accelerated Share Repurchase Agreement | |||||||||
Class of Stock [Line Items] | |||||||||
Repurchase of common stock | $ | $ 750 | ||||||||
Repurchases of shares (in shares) | shares | 9,202,000 | ||||||||
Average price shares repurchased (in usd per share) | $ / shares | $ 81.50 | ||||||||
Class A Common Stock | Accelerated Share Repurchase Agreement | |||||||||
Class of Stock [Line Items] | |||||||||
Repurchase of common stock | $ | $ 250 | ||||||||
Repurchases of shares (in shares) | shares | 3,425,000 | ||||||||
Average price shares repurchased (in usd per share) | $ / shares | $ 72.99 | ||||||||
Class B Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | |||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Votes per share held | vote | 1 |
Stockholders' Equity - Approved
Stockholders' Equity - Approved Share Repurchase Programs and Open Market Repurchases of Common Stock (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Class of Stock [Line Items] | ||||
Aggregate purchase price, including commissions | $ 1,272.9 | [1] | $ 1,300.3 | $ 526 |
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares repurchased (in shares) | 17,356 | 7,642 | 3,500 | |
Aggregate purchase price, including commissions | $ 1,264.4 | $ 550.1 | $ 275.9 | |
[1]Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $8.5 million |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | |
Derivative assets | $ 127.2 | $ 209.6 |
Prepaid software and maintenance expenses | 23 | 29.5 |
Usage-based prepaid expenses | 8.8 | 10.6 |
Other | 18.2 | 22.1 |
Prepaid expenses and other current assets | $ 177.2 | $ 271.8 |
Equity-Based Compensation Pla_3
Equity-Based Compensation Plans - Narrative (Details) shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 361.9 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average recognition period | 1 year 10 months 24 days |
2015 Equity Incentive Plan | Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares rolled over (in shares) | 31,496 |
2015 Employee Stock Purchase Plan | Employee Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares rolled over (in shares) | 4,605 |
Equity-Based Compensation Pla_4
Equity-Based Compensation Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares of Class A Common Stock (#) | |||
Outstanding (in shares) | 1,426 | 1,999 | 3,428 |
Exercises (in shares) | (557) | (536) | (1,168) |
Forfeitures (in shares) | (24) | (37) | (261) |
Outstanding (in shares) | 845 | 1,426 | 1,999 |
Vested (in shares) | 843 | ||
Weighted- Average Exercise Price ($) | |||
Outstanding (in dollars per share) | $ 44.38 | $ 42.94 | $ 42.79 |
Exercised (in dollars per share) | 35.23 | 37.04 | 36.72 |
Forfeited (in dollars per share) | 72.28 | 72.94 | 68.77 |
Outstanding (in dollars per share) | 49.60 | $ 44.38 | $ 42.94 |
Vested (in dollars per share) | $ 49.54 | ||
Weighted- Average Remaining Contractual Life (in years) | |||
Outstanding | 4 years 1 month 6 days | ||
Vested | 4 years 1 month 6 days | ||
Aggregate Intrinsic Value ($) | |||
Exercised | $ 26.1 | $ 22.9 | $ 51 |
Outstanding | 47.8 | ||
Vested | $ 47.7 |
Equity-Based Compensation Pla_5
Equity-Based Compensation Plans - Summary of Stock Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs And PSUs | |||
Number of Shares of Class A Common Stock (#) | |||
Outstanding, beginning of period (in shares) | 7,632 | 6,766 | 6,133 |
Vested (in shares) | (4,215) | (2,734) | (2,645) |
Forfeited (in shares) | (1,000) | (1,015) | (1,480) |
Outstanding, end of period (in shares) | 6,257 | 7,632 | 6,766 |
RSUs | |||
Number of Shares of Class A Common Stock (#) | |||
Outstanding, beginning of period (in shares) | 6,890 | 6,058 | |
Granted (in shares) | 3,484 | 4,369 | 4,332 |
Outstanding, end of period (in shares) | 5,531 | 6,890 | 6,058 |
Weighted- Average Grant- Date Fair Value ($) | |||
Granted (in dollars per share) | $ 79.14 | $ 80.32 | $ 77.37 |
Financial-based PSUs granted for accounting purposes | |||
Number of Shares of Class A Common Stock (#) | |||
Outstanding, beginning of period (in shares) | 41 | 75 | |
Granted (in shares) | 265 | 426 | |
Outstanding, end of period (in shares) | 25 | 41 | 75 |
Weighted- Average Grant- Date Fair Value ($) | |||
Not yet granted (in dollars per share) | $ 77.23 | $ 82.52 | $ 78.62 |
TSR-based PSUs | |||
Number of Shares of Class A Common Stock (#) | |||
Outstanding, beginning of period (in shares) | 676 | 558 | |
Granted (in shares) | 91 | 246 | |
Outstanding, end of period (in shares) | 701 | 676 | 558 |
Weighted- Average Grant- Date Fair Value ($) | |||
Granted (in dollars per share) | $ 119.28 | $ 121 | $ 107.05 |
Financial-based PSUs not yet granted for accounting purposes | |||
Number of Shares of Class A Common Stock (#) | |||
Outstanding, beginning of period (in shares) | 25 | 75 | |
Outstanding, end of period (in shares) | 25 | 75 |
Deferred Revenue - Composition
Deferred Revenue - Composition of Deferred Revenue (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Current deferred revenue | $ 2,074.9 | $ 1,954 |
Noncurrent deferred revenue | 802.4 | 770.3 |
A&C | ||
Disaggregation of Revenue [Line Items] | ||
Current deferred revenue | 683.8 | 622.1 |
Noncurrent deferred revenue | 173.5 | 173.1 |
Core | ||
Disaggregation of Revenue [Line Items] | ||
Current deferred revenue | 1,391.1 | 1,331.9 |
Noncurrent deferred revenue | $ 628.9 | $ 597.2 |
Deferred Revenue - Narrative (D
Deferred Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized in period | $ 2,074.4 |
Deferred Revenue - Aggregate Re
Deferred Revenue - Aggregate Remaining Performance Obligations Expected to be Recognized as Revenue (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 2,877.3 |
A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | 857.3 |
Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | 2,020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 2,074.9 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 683.8 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 1,391.1 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 464.7 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 121.6 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 343.1 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 168.2 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 38.3 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 129.9 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 75.2 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 7.8 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 67.4 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 37.8 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 3.2 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 34.6 |
Expected period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 56.5 |
Expected period of recognition | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | A&C | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 2.6 |
Expected period of recognition | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Core | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Aggregate remaining performance obligation | $ 53.9 |
Expected period of recognition |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued payroll and employee benefits | $ 143.6 | $ 116.3 |
Tax-related accruals | 56.2 | 42.8 |
Derivative liabilities | 46.4 | 4.9 |
Accrued legal and professional | 34.2 | 34.3 |
Current portion of operating lease liabilities | 29.1 | 33.3 |
Accrued acquisition-related expenses and acquisition consideration payable | 20.6 | 26.2 |
Accrued marketing and advertising | 12.3 | 13.6 |
Accrued restructuring costs | 7.4 | 0 |
Other | 92.4 | 85.3 |
Accrued expenses and other current liabilities | $ 442.2 | $ 356.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Long-Term Debt - Composition of
Long-Term Debt - Composition of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jul. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 3,876.1 | $ 3,901.3 | |
Less unamortized original issue discounts on long-term debt | (59.7) | (70.2) | |
Less current portion of long-term debt | (17.9) | (18.2) | |
Long-term debt, net of current portion | 3,798.5 | 3,812.9 | |
Secured Debt | 2027 Term Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 723.8 | $ 731.3 | |
Effective interest rate | 7.40% | 4.30% | |
Secured Debt | 2029 Term Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,752.3 | $ 1,770 | |
Less unamortized original issue discounts on long-term debt | $ (9.3) | $ (1.2) | |
Effective interest rate | 8.40% | 4.10% | |
Senior Notes | 2027 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 600 | $ 600 | |
Effective interest rate | 5.40% | 5.40% | |
Senior Notes | 2029 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 800 | $ 800 | |
Effective interest rate | 3.60% | ||
Line of Credit | Revolver | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 0 |
Long-Term Debt- Narrative (Deta
Long-Term Debt- Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2023 USD ($) | Nov. 30, 2022 USD ($) | Mar. 31, 2021 | Feb. 28, 2021 USD ($) | Aug. 31, 2020 USD ($) | Jun. 30, 2019 USD ($) | Dec. 31, 2023 USD ($) tranche | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 3,876,100,000 | $ 3,901,300,000 | ||||||||
Additional discount | 59,700,000 | 70,200,000 | ||||||||
Loss on debt extinguishment | 1,500,000 | 3,600,000 | $ 0 | |||||||
2027 Term Loans | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 723,800,000 | 731,300,000 | ||||||||
2029 Term Loans | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Discount rate | 2% | |||||||||
Long-term debt | 1,752,300,000 | 1,770,000,000 | ||||||||
Additional discount | $ 1,200,000 | 9,300,000 | ||||||||
Loss on debt extinguishment | $ 1,500,000 | 3,300,000 | ||||||||
2024 and 2027 Term Loans | Secured Debt | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused commitment fee upon achievement of certain financial ratios | 0.125% | |||||||||
2024 and 2027 Term Loans | Secured Debt | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused commitment fee upon achievement of certain financial ratios | 0.375% | |||||||||
2027 Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, face amount | $ 600,000,000 | |||||||||
Long-term debt | 600,000,000 | 600,000,000 | ||||||||
Interest rate | 5.25% | |||||||||
Redemption price, change of control, percent | 101% | |||||||||
2027 Senior Notes | Senior Notes | Redemption period two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percent | 102.625% | |||||||||
2027 Senior Notes | Senior Notes | Redemption period three | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percent | 101.75% | |||||||||
2027 Senior Notes | Senior Notes | Redemption period four | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percent | 100.875% | |||||||||
2027 Senior Notes | Senior Notes | Redemption period thereafter | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percent | 100% | |||||||||
2029 Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, face amount | $ 800,000,000 | |||||||||
Long-term debt | $ 800,000,000 | 800,000,000 | ||||||||
Debt issuance costs | $ 9,000,000 | |||||||||
Interest rate | 3.50% | |||||||||
Redemption price | 100% | |||||||||
Premium percentage | 1% | |||||||||
Redemption price percentage | 101% | |||||||||
2029 Senior Notes | Senior Notes | Redemption period two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price | 101.75% | |||||||||
2029 Senior Notes | Senior Notes | Redemption period three | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price | 100.875% | |||||||||
2029 Senior Notes | Senior Notes | Redemption period four | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price | 100% | |||||||||
2029 Senior Notes | Senior Notes | Redemption period one | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percent | 103.50% | |||||||||
Line of Credit | London Interbank Offered Rate ( LIBOR) 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate floor | 0% | |||||||||
Line of Credit | 2027 and 2029 Term Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of tranches | tranche | 2 | |||||||||
Line of Credit | 2027 Term Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, face amount | $ 750,000,000 | |||||||||
Discount rate | 0.50% | |||||||||
Quarterly principal payment rate | 0.25% | |||||||||
Line of Credit | 2027 Term Loans | London Interbank Offered Rate ( LIBOR) 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Increase in interest rate margins | 0.50% | |||||||||
Basis spread on variable rate | 2% | |||||||||
Line of Credit | 2027 Term Loans | London Interbank Offered Rate ( LIBOR) 1 | Option 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1% | |||||||||
Line of Credit | 2027 Term Loans | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1% | |||||||||
Line of Credit | 2027 Term Loans | Federal Funds Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Line of Credit | 2029 Term Loans | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.50% | |||||||||
Line of Credit | 2029 Term Loans | Federal Funds Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Line of Credit | 2029 Term Loans | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.50% | |||||||||
Line of Credit | 2029 Term Loans | Secured Overnight Financing Rate (SOFR) | Option 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1% | |||||||||
Revolving Credit Facility | Revolver | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 0 | $ 0 | ||||||||
Loss on debt extinguishment | $ 300,000 | |||||||||
Maximum borrowing capacity | 1,000,000,000 | $ 600,000,000 | ||||||||
Debt issuance costs | $ 4,100,000 | |||||||||
Maximum net leverage ratio | 40% | |||||||||
Available borrowing capacity | 998,800,000 | |||||||||
Revolving Credit Facility | Revolver | Line of Credit | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Net leverage ratio | 5.75 | |||||||||
Revolving Credit Facility | Revolver | Federal Funds Rate | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Revolving Credit Facility | Revolver | Secured Overnight Financing Rate (SOFR) | Line of Credit | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.25% | |||||||||
Revolving Credit Facility | Revolver | Secured Overnight Financing Rate (SOFR) | Line of Credit | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Revolving Credit Facility | Revolver | Secured Overnight Financing Rate (SOFR) | Option 1 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1% | |||||||||
Revolving Credit Facility | Revolver | Secured Overnight Financing Rate (SOFR) | Option 1 | Line of Credit | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.25% | |||||||||
Revolving Credit Facility | Revolver | Secured Overnight Financing Rate (SOFR) | Option 1 | Line of Credit | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.75% | |||||||||
Standby Letters of Credit | Senior Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings used | $ 1,200,000 |
Long-Term Debt - Estimated Fair
Long-Term Debt - Estimated Fair Values of Long-Term Debt Instruments (Details) - Level 2 $ in Millions | Dec. 31, 2023 USD ($) |
2027 Term Loans | Secured Debt | |
Debt Instrument [Line Items] | |
Estimated fair value of debt | $ 726 |
2029 Term Loans | Secured Debt | |
Debt Instrument [Line Items] | |
Estimated fair value of debt | 1,760 |
2027 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of debt | 589.5 |
2029 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of debt | $ 729 |
Long-Term Debt - Aggregate Prin
Long-Term Debt - Aggregate Principal Payments Due on Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 25.1 | |
2025 | 25.1 | |
2026 | 25.1 | |
2027 | 1,318.9 | |
2028 | 17.6 | |
Thereafter | 2,464.3 | |
Long-term debt | $ 3,876.1 | $ 3,901.3 |
Derivatives and Hedging - Summa
Derivatives and Hedging - Summary of Outstanding Derivatives (Details) € in Millions, $ in Millions | Dec. 31, 2023 USD ($) € / $ | Dec. 31, 2022 USD ($) € / $ | Apr. 30, 2017 USD ($) | Apr. 30, 2017 EUR (€) |
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | ||
Cash Flow Hedging | Cross-currency swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 1,262.5 | € 1,184.2 | ||
Euro to U.S. dollar exchange rate for translation | € / $ | 1.1 | 1.07 | ||
Level 2 | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 3,831.4 | $ 3,599.5 | ||
Derivative assets | 128.6 | 218.5 | ||
Fair Value of Derivative Liabilities | 46.4 | 4.9 | ||
Level 2 | Cash Flow Hedging | Foreign exchange forward contracts | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 592.1 | 364.7 | ||
Derivative assets | 1.4 | 9.4 | ||
Fair Value of Derivative Liabilities | 14.7 | 2 | ||
Level 2 | Cash Flow Hedging | Foreign exchange forward contracts | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 1 | |||
Aggregate fair value | 1.2 | |||
Level 2 | Cash Flow Hedging | Cross-currency swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 560.8 | 549.7 | ||
Derivative assets | 0 | 15.8 | ||
Fair Value of Derivative Liabilities | 13.9 | 2.2 | ||
Level 2 | Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 1,959.7 | 1,980.5 | ||
Derivative assets | 127.2 | 173 | ||
Fair Value of Derivative Liabilities | 0 | 0 | ||
Level 2 | Net Investment Hedging | Cross-currency swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 718.8 | 704.6 | ||
Derivative assets | 0 | 20.3 | ||
Fair Value of Derivative Liabilities | $ 17.8 | $ 0.7 |
Derivatives and Hedging - Sum_2
Derivatives and Hedging - Summary of Gains (Losses) on Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Revenue | $ 4,254.1 | $ 4,091.3 | $ 3,815.7 |
Interest expense | 179 | 146.3 | 126 |
Other income (expense), net | 36.9 | 7.6 | (2.5) |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Total hedges | (127) | 256.9 | 49.2 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Cash flow hedges | (29.8) | 24.3 | 16.3 |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swap | |||
Derivative [Line Items] | |||
Cash flow hedges | (12.8) | 54 | (15.5) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Cash flow hedges | (46.3) | 158.3 | 48.4 |
Net Investment Hedging | Designated as Hedging Instrument | Cross-currency swap | |||
Derivative [Line Items] | |||
Net investment hedges | (38.1) | 20.3 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | |||
Derivative [Line Items] | |||
Revenue | 16.3 | 5.3 | (8.9) |
Interest expense | 88.5 | 21.2 | (7.7) |
Other income (expense), net | (17) | 41.5 | 100.6 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Revenue | 16.3 | 5.3 | (8.9) |
Interest expense | 0 | ||
Other income (expense), net | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Cross-currency swap | |||
Derivative [Line Items] | |||
Revenue | 0 | 0 | 0 |
Interest expense | 9.6 | 14.9 | 27.3 |
Other income (expense), net | (17) | 41.5 | 100.6 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Interest rate swaps | |||
Derivative [Line Items] | |||
Revenue | 0 | 0 | 0 |
Interest expense | 66.4 | (5) | (35) |
Other income (expense), net | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Net Investment Hedging | Cross-currency swap | |||
Derivative [Line Items] | |||
Revenue | 0 | 0 | 0 |
Interest expense | 12.5 | 11.3 | |
Other income (expense), net | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Euro-Denominated Intercompany Loan | Cross-currency swap | |||
Derivative [Line Items] | |||
Other income (expense), net | $ 16.8 | $ (41.3) | $ (101.8) |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | |||
Aug. 31, 2020 USD ($) | Apr. 30, 2017 USD ($) | Dec. 31, 2023 USD ($) | Apr. 30, 2017 EUR (€) | |
Derivative [Line Items] | ||||
Net deferred gains from cash flow hedges | $ 99 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Forward Contracts | ||||
Derivative [Line Items] | ||||
Remaining maturity of derivatives | 24 months | |||
Cash Flow Hedging | Designated as Hedging Instrument | Cross-Currency Swap | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 5 years | |||
Notional amount | $ 1,262.5 | € 1,184.2 | ||
Derivative fixed interest rate | 4.81% | 4.81% | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap - April 2017 Agreement | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 5 years | |||
Notional amount | $ 1,262.5 | |||
Derivative fixed interest rate | 5.44% | 5.44% | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap - August 2020 Agreement | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 7 years | |||
Notional amount | $ 750 | |||
Derivative fixed interest rate | 0.705% | 4.81% | 4.81% | |
Euro-Denominated Intercompany Loan | ||||
Derivative [Line Items] | ||||
Interest rate | 3% | 3% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Operating lease, remaining weighted average lease term | 6 years 6 months |
Operating lease, weighted average discount rate | 5.50% |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 36.8 | $ 44.5 | $ 48.2 |
Variable lease costs | 14.7 | 12 | 10.4 |
Sublease income | (14.2) | (8.3) | (4.3) |
Total net lease cost | $ 37.3 | $ 48.2 | $ 54.3 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | $ 34.7 |
2025 | 23.3 |
2026 | 19.9 |
2027 | 14.7 |
2028 | 9.5 |
Thereafter | 39 |
Total lease payments | 141.1 |
Less: imputed interest | (21.8) |
Total operating lease liabilities | $ 119.3 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Obligations under Non-Cancelable Agreements (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Service Agreements | |
2024 | $ 169 |
2025 | 127.3 |
2026 | 101.1 |
2027 | 116.6 |
2028 | 15.9 |
Thereafter | 2.5 |
Total purchase obligation | $ 532.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 13, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Capital Lease Obligations [Line Items] | ||||||
Estimated loss provision recorded | $ 18.1 | |||||
Reduction of estimated loss provision | $ 10 | |||||
Estimated loss provision | $ 8.1 | |||||
Indirect Taxation | ||||||
Schedule of Capital Lease Obligations [Line Items] | ||||||
Estimated tax liability | $ 23.6 | $ 18.9 | ||||
Class Action Complaint | Pending Litigation | ||||||
Schedule of Capital Lease Obligations [Line Items] | ||||||
Proposed settlement amount (up to) | $ 35 |
Restructuring and Other Charg_3
Restructuring and Other Charges and Disposition of Businesses and Related Assets - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2023 employee | Sep. 30, 2023 USD ($) employee | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other | $ 97.9 | $ 27.4 | $ 8 | ||||
Restructuring and other | [1] | 90.8 | 15.7 | $ (0.3) | |||
Gain on sale of land and buildings | 15.4 | ||||||
Impairment of operating lease assets | $ 15.1 | ||||||
Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash payments related to restructuring | 38.7 | ||||||
Restructuring Plan | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in current workforce, percentage | 8% | ||||||
Restructuring and other | $ 13.4 | 35.1 | |||||
Cash payments related to restructuring | 38.7 | ||||||
Restructuring and other | 17 | ||||||
Restructuring Plan | Disposal Group, Held-for-sale | A&C | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other | 2.1 | 10.1 | |||||
Restructuring Plan | Disposal Group, Held-for-sale | Core | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other | 10 | 18.5 | |||||
Restructuring Plan | Workforce reduction | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in current workforce | employee | 550 | ||||||
Restructuring Plan | Disposition Of Assets | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Disposition of certain assets and liabilities | $ 16.5 | ||||||
Restructuring Plan | Corporate Overhead | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other | $ 1.3 | $ 6.5 | |||||
Additional Restructuring Plan | Workforce reduction | Disposal Group, Held-for-sale | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in current workforce | employee | 250 | ||||||
[1] (1) Costs and operating expenses include equity-based compensation expense as follows: Cost of revenue $ 1.3 $ 1.5 $ 0.9 Technology and development $ 162.4 $ 140.3 $ 110.0 Marketing and advertising $ 27.9 $ 29.1 $ 24.8 Customer care $ 24.1 $ 20.0 $ 14.1 General and administrative $ 78.3 $ 73.5 $ 58.1 Total equity-based compensation expense $ 296.3 $ 264.4 $ 207.9 |
Restructuring and Other Charg_4
Restructuring and Other Charges and Disposition of Businesses and Related Assets - Summary of the Activity in the Restructuring Related Accruals (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Incurred Cost Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | Restructuring and other | |
Restructuring Reserve [Roll Forward] | ||
Additional paid-in capital | $ 2,271.6 | $ 1,912.6 |
Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Accrued restructuring costs as of December 31, 2022 | 0 | |
Restructuring costs incurred | 46.1 | |
Amount paid | (38.7) | |
Accrued restructuring costs as of December 31, 2023 | 7.4 | |
Additional paid-in capital | $ 2.3 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Maximum employee contributions, percent | 100% | ||
Employer discretionary matching contribution | $ 15.8 | $ 15.9 | $ 15 |
Income Taxes - Components of Be
Income Taxes - Components of Benefit (Provision) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 477.2 | $ 418.6 | $ 310.3 |
Foreign | (73.4) | (62.1) | (56.7) |
Income before income taxes | 403.8 | 356.5 | 253.6 |
Current: | |||
Federal | (0.8) | (1.3) | (2.1) |
State | (5.4) | (0.9) | (2.9) |
Foreign | (14.9) | (16.9) | (22.6) |
Total current | (21.1) | (19.1) | (27.6) |
Deferred: | |||
Federal | 860.5 | (0.7) | 2.3 |
State | 116.3 | (0.5) | 0.2 |
Foreign | 16.1 | 16.7 | 14.3 |
Total deferred | 992.9 | 15.5 | 16.8 |
Provision (benefit) for income taxes | $ 971.8 | $ (3.6) | $ (10.8) |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected provision at U.S. federal statutory tax rate | $ (84.8) | $ (74.9) | $ (53.3) |
Effect of investment in Desert Newco | 22.7 | (22) | (50.4) |
Research and development credits | 33.1 | 29.2 | 21.9 |
Foreign earnings | 0.2 | 3.7 | (0.9) |
Effect of changes in tax rates and apportionment | (97.1) | 0 | (3.6) |
Uncertain tax positions | (17.1) | (10.6) | (10.7) |
State taxes, net of federal benefit | (1.6) | 2.9 | (31.5) |
Effect of restructurings of domestic subsidiary | 0 | (7) | 0 |
Non-deductible expenses | (5.1) | ||
Other | (0.9) | (1.9) | 3.8 |
Effect of changes in valuation allowances | 1,122.4 | 77 | 113.9 |
Provision (benefit) for income taxes | $ 971.8 | $ (3.6) | $ (10.8) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) | $ (1,014) | ||
Non-cash income tax benefit | $ 1,014 | ||
Gross unrecognized tax benefits | 165.7 | 139.7 | $ 120.7 |
Gross unrecognized tax benefits that would decrease the effective tax rate if recognized | (47) | ||
Accrued interest and penalties related to uncertain tax positions | $ 30.6 | $ 28.2 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
DTAs: | ||
Investment in Desert Newco | $ 697.2 | $ 800 |
NOLs | 473.1 | 523.2 |
Tax credits | 167.6 | 134.4 |
Deferred interest | 44 | 38.2 |
Operating lease liabilities | 15.3 | 17.8 |
Other | 9.3 | 9.9 |
Valuation allowance | (377.5) | (1,504.8) |
Total DTAs | 1,029 | 18.7 |
DTLs: | ||
Identified intangible assets | (40) | (61.3) |
Operating lease assets | (6.4) | (8.1) |
Total DTLs | (46.4) | (69.4) |
Net DTAs | $ 982.6 | |
Net DTAs | $ (50.7) |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses, Credits and Incentives (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Tax Credit Carryforward [Line Items] | |
Gross NOLs and Tax Credits | $ 4,741.9 |
Portion Subject to a Valuation Allowance | 2,126 |
Federal | |
Tax Credit Carryforward [Line Items] | |
Gross NOLs and Tax Credits | 1,916.6 |
Portion Subject to a Valuation Allowance | 86.4 |
State | |
Tax Credit Carryforward [Line Items] | |
Gross NOLs and Tax Credits | 2,786.7 |
Portion Subject to a Valuation Allowance | 2,016.7 |
Foreign | |
Tax Credit Carryforward [Line Items] | |
Gross NOLs and Tax Credits | 38.6 |
Portion Subject to a Valuation Allowance | $ 22.9 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 139.7 | $ 120.7 |
Gross increases - tax positions in prior period | 6.8 | 7.2 |
Gross increases - tax positions in current period | 23.2 | 11.8 |
Gross decreases - tax positions in prior period | (4) | 0 |
Balance at end of period | $ 165.7 | $ 139.7 |
Income Per Share - Reconciliati
Income Per Share - Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 1,375.6 | $ 352.9 | $ 242.8 |
Less: net income attributable to non-controlling interests | 0.8 | 0.7 | 0.5 |
Net income attributable to GoDaddy Inc. | $ 1,374.8 | $ 352.2 | $ 242.3 |
Class B common stock | |||
Denominator: | |||
Effect of dilutive securities (in shares) | 290 | 313 | 414 |
Stock options | |||
Denominator: | |||
Effect of dilutive securities (in shares) | 460 | 678 | 1,127 |
RSUs, PSUs and ESPP shares | |||
Denominator: | |||
Effect of dilutive securities (in shares) | 2,406 | 1,678 | 1,658 |
Class A common stock | |||
Denominator: | |||
Weighted-average shares of Class A common stock outstanding - basic (in shares) | 148,296 | 158,788 | 167,906 |
Weighted-average shares of Class A Common stock outstanding - diluted (in shares) | 151,452 | 161,457 | 171,105 |
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic (diluted) | $ 9.27 | $ 2.22 | $ 1.44 |
Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (in dollars per share) | $ 9.08 | $ 2.19 | $ 1.42 |
Income Per Share - Summary of W
Income Per Share - Summary of Weighted Average Potentially Dilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from diluted loss per unit calculation (in shares) | 799 | 726 | 1,425 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from diluted loss per unit calculation (in shares) | 19 | 234 | 544 |
RSUs, PSUs and ESPP shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from diluted loss per unit calculation (in shares) | 780 | 492 | 881 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reporting units | segment | 2 | ||
Number of operating segments | segment | 2 | ||
Revenue | $ 4,254.1 | $ 4,091.3 | $ 3,815.7 |
Unallocated corporate overhead | (276.1) | (293.5) | (255.2) |
Depreciation and amortization | (171.3) | (194.6) | (199.6) |
Equity-based compensation expense | (294) | (264.4) | (207.9) |
Interest expense, net of interest income | (155.4) | (135) | (124.9) |
Acquisition-related expenses | (12.1) | (35.1) | (78.2) |
Restructuring and other | (97.9) | (27.4) | (8) |
Income before income taxes | 403.8 | 356.5 | 253.6 |
Benefit (provision) for income taxes | 971.8 | (3.6) | (10.8) |
Net income | 1,375.6 | 352.9 | 242.8 |
Restatement Adjustment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Acquisition-related expenses | 6 | ||
Equity Based Compensation Expense | Restructuring Plan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Restructuring and other | (2.3) | ||
Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Segment EBITDA | 1,410.6 | 1,306.5 | 1,127.4 |
A&C | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,430.4 | 1,279.7 | 1,128.3 |
A&C | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Segment EBITDA | 594.2 | 522.8 | 447.7 |
Core | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,823.7 | 2,811.6 | 2,687.4 |
Core | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Segment EBITDA | $ 816.4 | $ 783.7 | $ 679.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ (329.3) | $ 83.2 |
Ending balance | 62.2 | (329.3) |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (75) | (52.9) |
Other comprehensive income (loss) before reclassifications | (4.3) | (22.1) |
Amounts reclassified from AOCI | (4.3) | 0 |
Other comprehensive income (loss) | (8.6) | (22.1) |
Ending balance | (83.6) | (75) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 253.4 | 14.2 |
Other comprehensive income (loss) before reclassifications | (146.2) | 171.2 |
Amounts reclassified from AOCI | 87.8 | 68 |
Other comprehensive income (loss) | (58.4) | 239.2 |
Ending balance | 195 | 253.4 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 178.4 | (38.7) |
Other comprehensive income (loss) before reclassifications | (150.5) | 149.1 |
Amounts reclassified from AOCI | 83.5 | 68 |
Other comprehensive income (loss) | (67) | 217.1 |
Ending balance | 111.4 | 178.4 |
AOCI Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 0.4 | |
Ending balance | 0.2 | 0.4 |
AOCI Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 178 | (38.6) |
Ending balance | $ 111.2 | $ 178 |
Subsequent Events (Details)
Subsequent Events (Details) - Line of Credit - Subsequent Event - The Credit Facility | 1 Months Ended |
Jan. 31, 2024 | |
Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1% |
Federal Funds Rate | Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 0.50% |
Variable Rate Component One | Secured Overnight Financing Rate (SOFR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 2% |
Variable Rate Component Two | Secured Overnight Financing Rate (SOFR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1% |