Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, $0.001 par value per share | |
Trading Symbol | GDDY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001609711 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 167,777,015 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 378,723 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,293.1 | $ 765.2 |
Accounts and other receivables | 48.3 | 41.8 |
Registry deposits | 28.9 | 31.1 |
Prepaid domain name registry fees | 413.8 | 392.4 |
Prepaid expenses and other current assets | 107.6 | 60.8 |
Total current assets | 1,891.7 | 1,291.3 |
Property and equipment, net | 246.5 | 257.3 |
Operating lease assets | 134.1 | 142 |
Prepaid domain name registry fees, net of current portion | 183.2 | 176.1 |
Goodwill | 3,496.2 | 3,275.1 |
Intangible assets, net | 1,262.6 | 1,255.1 |
Other assets | 45 | 36 |
Total assets | 7,259.3 | 6,432.9 |
Current liabilities: | ||
Accounts payable | 70.5 | 51 |
Accrued expenses and other current liabilities | 494.2 | 527.6 |
Deferred revenue | 1,806.2 | 1,711.3 |
Long-term debt | 24.1 | 24.3 |
Total current liabilities | 2,395 | 2,314.2 |
Deferred revenue, net of current portion | 762.3 | 725.1 |
Long-term debt, net of current portion | 3,874.9 | 3,090.1 |
Operating lease liabilities, net of current portion | 160 | 166.7 |
Other long-term liabilities | 55.5 | 56.6 |
Deferred tax liabilities | 82.6 | 92 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 1,373.4 | 1,308.8 |
Accumulated deficit | (1,375.2) | (1,190.9) |
Accumulated other comprehensive loss | (71.2) | (131) |
Total stockholders' deficit attributable to GoDaddy Inc. | (72.8) | (12.9) |
Non-controlling interests | 1.8 | 1.1 |
Total stockholders' deficit | (71) | (11.8) |
Total liabilities and stockholders' deficit | 7,259.3 | 6,432.9 |
Class A Common Stock | ||
Stockholders' deficit: | ||
Common stock | 0.2 | 0.2 |
Class B Common Stock | ||
Stockholders' deficit: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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, shares 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) | 168,445,000 | 169,157,000 |
Common stock, shares outstanding (in shares) | 168,445,000 | 169,157,000 |
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) | 479,000 | 688,000 |
Common stock, shares outstanding (in shares) | 479,000 | 688,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Revenue: | |||
Revenue | $ 901.1 | $ 792 | |
Costs and operating expenses | |||
Cost of revenue (excluding depreciation and amortization) | [1] | 321.2 | 277.1 |
Technology and development | [1] | 186.4 | 134.5 |
Marketing and advertising | [1] | 132.7 | 93.1 |
Customer care | [1] | 78.6 | 85.2 |
General and administrative | [1] | 95.2 | 85.5 |
Depreciation and amortization | [1] | 49 | 52.2 |
Total costs and operating expenses | [1] | 863.1 | 727.6 |
Operating income | 38 | 64.4 | |
Interest expense | (28.7) | (21.2) | |
Other income (expense), net | 0.7 | (1.4) | |
Income before income taxes | 10 | 41.8 | |
Benefit for income taxes | 0.8 | 1.4 | |
Net income | 10.8 | 43.2 | |
Less: net income attributable to non-controlling interests | 0 | 0.3 | |
Net income attributable to GoDaddy Inc. | $ 10.8 | $ 42.9 | |
Class A Common Stock | |||
Net income attributable to GoDaddy Inc. per share of Class A common stock: | |||
Basic (in USD per share) | $ 0.06 | $ 0.25 | |
Diluted (in USD per share) | $ 0.06 | $ 0.24 | |
Weighted-average shares of Class A common stock outstanding: | |||
Basic (in shares) | 169,435 | 173,113 | |
Diluted (in shares) | 173,053 | 177,857 | |
Domains | |||
Revenue: | |||
Revenue | $ 422.7 | $ 355.9 | |
Hosting and presence | |||
Revenue: | |||
Revenue | 310.3 | 297.2 | |
Business applications | |||
Revenue: | |||
Revenue | $ 168.1 | $ 138.9 | |
[1] | Costs and operating expenses include equity-based compensation expense as follows: Three months ended March 31, 2021 2020 Cost of revenue $ 0.2 $ 0.1 Technology and development 27.0 21.1 Marketing and advertising 6.2 4.6 Customer care 3.0 2.6 General and administrative 16.2 17.0 Total equity-based compensation expense 52.6 45.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity-based compensation expense | $ 52.6 | $ 45.4 |
Cost of revenue | ||
Equity-based compensation expense | 0.2 | 0.1 |
Technology and development | ||
Equity-based compensation expense | 27 | 21.1 |
Marketing and advertising | ||
Equity-based compensation expense | 6.2 | 4.6 |
Customer care | ||
Equity-based compensation expense | 3 | 2.6 |
General and administrative | ||
Equity-based compensation expense | $ 16.2 | $ 17 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 10.8 | $ 43.2 |
Foreign exchange forward contracts gain (loss), net | 2.1 | 14.3 |
Unrealized swap gain (loss), net (net of tax effect of $0.5 million and $4.0 million for the three months ended March 31, 2021 and March 31, 2020, respectively) | 24.4 | 11.7 |
Change in foreign currency translation adjustment | 33.7 | (24.9) |
Comprehensive income | 71 | 44.3 |
Less: comprehensive income attributable to non-controlling interests | 0.3 | 0.4 |
Comprehensive income attributable to GoDaddy Inc. | $ 70.7 | $ 43.9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized swap gain (loss), tax effect | $ 0.5 | $ 4 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non- Controlling Interests |
Balance (in shares) at Dec. 31, 2019 | 172,867 | 1,490 | |||||||
Balance at Dec. 31, 2019 | $ 782.1 | $ 0.2 | $ 0 | $ 1,003.5 | $ (153.5) | $ (78.2) | $ 10.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 43.2 | 42.9 | 0.3 | ||||||
Equity-based compensation, including amounts capitalized | 46 | 46 | |||||||
Stock option exercises (in shares) | 724 | ||||||||
Stock option exercises | 15.3 | 16 | (0.7) | ||||||
Repurchases of Class A common stock (in shares) | (7,341) | ||||||||
Repurchases of Class A common stock | (398) | (398) | |||||||
Impact of derivatives, net | 26 | 26 | |||||||
Change in foreign currency translation adjustment | (24.9) | (24.9) | |||||||
Vesting of restricted stock units and other (in shares) | 1,377 | (204) | |||||||
Vesting of restricted stock units and other | (0.6) | 1.4 | (0.6) | (0.1) | (1.3) | ||||
Balance (in shares) at Mar. 31, 2020 | 167,627 | 1,286 | |||||||
Balance at Mar. 31, 2020 | 489.1 | $ 0.2 | $ 0 | 1,066.9 | (509.2) | (77.2) | 8.4 | ||
Balance (in shares) at Dec. 31, 2020 | 169,157 | 688 | 169,157 | 688 | |||||
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 (loss) | 10.8 | 10.8 | 0 | ||||||
Equity-based compensation, including amounts capitalized | 53.2 | 53.2 | |||||||
Stock option exercises (in shares) | 309 | ||||||||
Stock option exercises | 11.6 | 11.8 | (0.2) | ||||||
Repurchases of Class A common stock (in shares) | (2,544) | (2,544) | |||||||
Repurchases of Class A common stock | (195.1) | $ (195.1) | (195.1) | ||||||
Impact of derivatives, net | 26.5 | 26.5 | |||||||
Change in foreign currency translation adjustment | 33.7 | 33.7 | |||||||
Vesting of restricted stock units and other (in shares) | 1,523 | (209) | |||||||
Vesting of restricted stock units and other | 0.1 | (0.4) | (0.4) | 0.9 | |||||
Balance (in shares) at Mar. 31, 2021 | 168,445 | 479 | 168,445 | 479 | |||||
Balance at Mar. 31, 2021 | $ (71) | $ 0.2 | $ 0 | $ 1,373.4 | $ (1,375.2) | $ (71.2) | $ 1.8 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income | $ 10.8 | $ 43.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49 | 52.2 |
Equity-based compensation expense | 52.6 | 45.4 |
Other | 6.4 | 7.1 |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Registry deposits | 2.1 | 5.4 |
Prepaid domain name registry fees | (28.3) | (12.6) |
Deferred revenue | 127.1 | 96.5 |
Other operating assets and liabilities | 1.6 | (3.9) |
Net cash provided by operating activities | 221.3 | 233.3 |
Investing activities | ||
Maturities of short-term investments | 0 | 23.7 |
Business acquisitions, net of cash acquired | (298.5) | (146.4) |
Purchases of property and equipment | (9) | (13.5) |
Other investing activities | 1 | 0.3 |
Net cash used in investing activities | (306.5) | (135.9) |
Proceeds received from: | ||
Issuance of senior notes | 800 | 0 |
Stock option exercises | 11.6 | 15.3 |
Payments made for: | ||
Repurchases of Class A common stock | (180.1) | (315.7) |
Repayment of term loans | (8.1) | (6.2) |
Other financing obligations | (9.7) | (0.7) |
Net cash provided by (used in) financing activities | 613.7 | (307.3) |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | (1.5) |
Net increase (decrease) in cash and cash equivalents | 527.9 | (211.4) |
Cash and cash equivalents, beginning of period | 765.2 | 1,062.8 |
Cash and cash equivalents, end of period | 1,293.1 | 851.4 |
Cash paid during the period for: | ||
Interest on long-term debt, net of swap benefit | 15 | 11.2 |
Income taxes, net of refunds received | 1.2 | 2 |
Amounts included in the measurement of operating lease liabilities | 12.7 | 11 |
Supplemental disclosure of non-cash transactions: | ||
Operating lease assets obtained in exchange for operating lease liabilities | 2.6 | 9.1 |
Accrued purchases of property and equipment at period end | 2.3 | 8.7 |
Share repurchases not yet settled | $ 15 | $ 82.3 |
Organization and Background
Organization and Background | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background Organization We are the sole managing member of Desert Newco, and as a result, we consolidate its financial results and report non-controlling interests representing the economic interests held by its other members. The calculation of non-controlling interests excludes any net income attributable directly to GoDaddy Inc. As of March 31, 2021, we owned approximately 99.7% of Desert Newco. 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. Our interim financial statements are unaudited, and in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2021. These financial statements should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Form 10-K). Prior Period Reclassifications Certain immaterial prior period amounts have been reclassified 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. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ. Segment As of March 31, 2021, our chief operating decision maker was our Chief Executive Officer who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we have a single operating and reportable segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 $160.9 million and $158.4 million for the three months ended March 31, 2021 and 2020, respectively. Fair Value Measurements The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis: March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds and time deposits $ 479.0 $ — $ — $ 479.0 Derivative assets — 25.5 — 25.5 Total assets $ 479.0 $ 25.5 $ — $ 504.5 Liabilities: Derivative liabilities $ — $ 149.8 $ — $ 149.8 Total liabilities $ — $ 149.8 $ — $ 149.8 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 98.0 $ — $ — $ 98.0 Total assets $ 98.0 $ — $ — $ 98.0 Liabilities: Derivative liabilities $ — $ 216.4 $ — $ 216.4 Total liabilities $ — $ 216.4 $ — $ 216.4 Recent Accounting Pronouncements In March 2020, the FASB issued guidance providing temporary optional expedients and exceptions related to contract modifications and hedge accounting to ease the financial reporting burden of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We continue to evaluate our contracts and hedging relationships that reference LIBOR. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions In February 2021, we completed the acquisition of Poynt Co. for $297.7 million in cash to expand our commerce capabilities. Poynt 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 $45.0 million in additional compensatory cash payments subject to certain performance and employment conditions over the three year period following the closing date. The aggregate purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as the 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 acquisition. During the measurement period, which will not exceed one year from closing, we will continue to obtain information, primarily related to income taxes, to assist us in finalizing the acquisition date fair values. Any qualifying changes to our preliminary estimates will be recorded as adjustments to the respective assets and liabilities, with any residual amounts allocated to goodwill. The following table summarizes the preliminary estimated acquisition date fair values of the assets acquired and liabilities assumed: Total purchase consideration $ 297.7 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 3.2 Indefinite-lived intangible assets 1.3 Finite-lived intangible assets 51.8 Other assets and liabilities, net 0.8 Total assets acquired, net of liabilities assumed 57.1 Goodwill $ 240.6 The identified finite-lived intangible assets, which were valued using both income- and cost-based approaches, primarily consist of developed technology and customer relationships, and have a total weighted-average amortization period of 4.2 years. Pro forma financial information is not presented because the acquisition was not material to our financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes changes in our goodwill balance: Balance at December 31, 2020 $ 3,275.1 Goodwill related to acquisitions 242.0 Impact of foreign currency translation (19.4) Other (1.5) Balance at March 31, 2021 $ 3,496.2 Intangible assets, net are summarized as follows: March 31, 2021 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 249.3 n/a 249.3 Contractual-based assets and other 68.3 n/a 68.3 Finite-lived intangible assets: Customer-related 533.3 $ (232.9) 300.4 Developed technology 229.1 (99.5) 129.6 Trade names and other 106.0 (36.0) 70.0 $ 1,631.0 $ (368.4) $ 1,262.6 December 31, 2020 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 250.3 n/a 250.3 Contractual-based assets 67.0 n/a 67.0 Finite-lived intangible assets: Customer-related 857.0 $ (534.7) 322.3 Developed technology 188.1 (90.7) 97.4 Trade names and other 106.9 (33.8) 73.1 $ 1,914.3 $ (659.2) $ 1,255.1 Amortization expense was $30.4 million and $33.2 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the weighted-average remaining amortization period for amortizable intangible assets was 58 months for customer-related intangible assets, 42 months for developed technology and 75 months for trade names and other, and was 56 months in total. Based on the balance of finite-lived intangible assets as of March 31, 2021, expected future amortization expense is as follows: Year Ending December 31: 2021 (remainder of) $ 94.0 2022 120.2 2023 95.6 2024 80.8 2025 77.4 Thereafter 32.0 $ 500.0 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity During the three months ended March 31, 2021, we repurchased a total of 2,544 shares of our Class A common stock in the open market pursuant to our approved share repurchase program, which were retired upon repurchase, for an aggregate purchase price of $195.1 million, including commissions. Of this amount, $15.0 million was included in accrued expenses and other current liabilities as of March 31, 2021 as settlement had not yet been completed. As of March 31, 2021, we have $305.0 million remaining available under our approved share repurchase program. In May 2021, our board of directors approved the repurchase of up to an additional $775.0 million of our Class A common stock. We may purchase shares from time to time in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws. The additional share repurchase authorization has no time limit, does not obligate us to make any repurchases and may be modified, suspended or terminated by us at any time without prior notice. The amount and timing of repurchases are subject to a variety of factors including liquidity, share price, market conditions and legal requirements. |
Equity-Based Compensation Plans
Equity-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation Plans | Equity-Based Compensation Plans Equity Plans As of December 31, 2020, 27,340 shares of Class A common stock were available for issuance as future awards under the 2015 Equity Incentive Plan (the 2015 Plan). On January 1, 2021, an additional 6,794 shares were reserved for issuance pursuant to the automatic increase provisions of the 2015 Plan. As of March 31, 2021, 31,049 shares were available for issuance as future awards under the 2015 Plan. As of December 31, 2020, 4,081 shares of Class A common stock were available for issuance under the 2015 Employee Stock Purchase Plan (the ESPP). On January 1, 2021, an additional 1,000 shares were reserved for issuance pursuant to the automatic increase provisions of the ESPP. As of March 31, 2021, 5,081 shares were available for issuance under the ESPP. Equity Plan Activity 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 awards (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. Compensation expense for TSR-based PSUs is recognized regardless of whether the TSR market condition is satisfied. The following table summarizes stock option activity: Number of Weighted- Outstanding at December 31, 2020 3,428 42.79 Exercised (309) 37.54 Forfeited (36) 69.64 Outstanding at March 31, 2021 3,083 43.00 Vested at March 31, 2021 2,432 35.40 The following table summarizes stock award activity: Number of Outstanding at December 31, 2020 6,133 Granted: RSUs 2,944 Granted: TSR-based PSUs 386 Vested (1,313) Forfeited (210) Outstanding at March 31, 2021 (1) 7,940 _________________________________ (1) Includes financial-based PSUs for which performance targets have not yet been established, and which are not yet considered granted for accounting purposes. The balance of outstanding awards is comprised of the following: Number of Weighted-Average Grant-Date Fair Value Per Share ($) RSUs 7,033 76.25 TSR-based PSUs 710 106.32 Financial-based PSUs granted for accounting purposes 104 78.62 Financial-based PSUs not yet granted for accounting purposes 93 N/A Outstanding at March 31, 2021 7,940 As of March 31, 2021, total unrecognized compensation expense related to non-vested stock options and stock awards was $13.7 million and $443.7 million, respectively, with expected remaining weighted-average recognition periods of 2.0 years and 2.9 years, respectively. Such amounts exclude PSUs not yet considered granted for accounting purposes. |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Deferred Revenue Deferred revenue consisted of the following: March 31, 2021 December 31, 2020 Current: Domains $ 849.3 $ 810.7 Hosting and presence 600.8 574.8 Business applications 356.1 325.8 $ 1,806.2 $ 1,711.3 Noncurrent: Domains $ 434.6 $ 410.4 Hosting and presence 222.5 218.1 Business applications 105.2 96.6 $ 762.3 $ 725.1 The increase in the deferred revenue balance is primarily driven by payments received in advance of satisfying our performance obligations, offset by $672.2 million of revenue recognized during the three months ended March 31, 2021 that was included in the deferred revenue balance as of December 31, 2020. The deferred revenue balance as of March 31, 2021 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows: Remainder of 2021 2022 2023 2024 2025 Thereafter Total Domains $ 734.4 $ 312.2 $ 107.8 $ 55.5 $ 31.6 $ 42.4 $ 1,283.9 Hosting and presence 528.0 190.9 58.5 19.9 8.7 17.3 823.3 Business applications 317.1 100.4 34.4 5.8 1.9 1.7 461.3 $ 1,579.5 $ 603.5 $ 200.7 $ 81.2 $ 42.2 $ 61.4 $ 2,568.5 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
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: March 31, 2021 December 31, 2020 Derivative liabilities $ 149.8 $ 216.4 Accrued payroll and employee benefits 95.1 114.8 Tax-related accruals 47.1 38.4 Current portion of operating lease liabilities 43.0 41.5 Accrued marketing and advertising 31.9 29.9 Accrued legal and professional 26.4 24.4 Accrued acquisition-related expenses and acquisition consideration payable 14.8 9.4 Other 86.1 52.8 $ 494.2 $ 527.6 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: Maturity Date March 31, 2021 December 31, 2020 2024 Term Loans (effective interest rate of 2.3% at March 31, 2021 and 2.8% at December 31, 2020) February 15, 2024 $ 1,801.1 $ 1,807.4 2027 Term Loans (effective interest rate of 2.7% at March 31, 2021 and 3.0% at December 31, 2020) August 10, 2027 744.4 746.2 2027 Senior Notes (effective interest rate of 5.4% at March 31, 2021 and December 31, 2020) December 1, 2027 600.0 600.0 2029 Senior Notes (effective interest rate of 3.5% at March 31, 2021) March 1, 2029 800.0 — Revolver February 15, 2024 — — Total 3,945.5 3,153.6 Less: unamortized original issue discount and debt issuance costs (1) (46.5) (39.2) Less: current portion of long-term debt (24.1) (24.3) $ 3,874.9 $ 3,090.1 _________________________________ (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 As described in our 2020 Form 10-K, our secured credit agreement (the Credit Facility) includes two tranches of term loans (the 2024 Term Loans and the 2027 Term Loans) and a revolving credit facility (the Revolver). A portion of the term loans is hedged by interest rate swap arrangements, as discussed in Note 10. 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 terms. Following this refinancing, the 2027 Term Loans bear interest at a rate equal to, at our option, either (a) LIBOR plus 2.00% per annum or (b) 1.0% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) one-month LIBOR plus 1.0%. Fees incurred in connection with the refinancing were not material. As of March 31, 2021, we had $600.0 million available for borrowing under the Revolver and were not in violation of any covenants of the Credit Facility. Senior Notes 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 proceeds from the issuance of the 2029 Senior Notes were retained for general corporate purposes. The 2029 Senior Notes were issued at par and bear interest at 3.50% per annum, payable annually on March 1 and September 1, commencing on September 1, 2021. The aggregate principal is payable at maturity, subject to earlier 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 103.50% 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 101.750% of the principal amount, increasing to 101.875% as of March 1, 2025, and decreasing to 100.0% as of 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 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. As of March 31, 2021, 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 loans, which are traded in less active markets and therefore classified as Level 2 fair value measurements, and were as follows as of March 31, 2021: 2024 Term Loans $ 1,789.8 2027 Term Loans $ 740.7 2027 Senior Notes $ 637.6 2029 Senior Notes $ 788.2 Future Debt Maturities Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of March 31, 2021 are as follows: Year Ending December 31: 2021 (remainder of) $ 24.4 2022 32.5 2023 32.5 2024 1,740.0 2025 7.5 Thereafter 2,108.6 $ 3,945.5 |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2021 | |
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 a variety of derivative instruments, all of which are designated as cash flow hedges, including: • foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currency, all of which had maturities of 18 months or less as of March 31, 2021; • a cross-currency swap arrangement 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 swap arrangements to effectively convert portions of our variable-rate debt to fixed. The risk management strategies related to our use of derivatives are consistent with those described in our 2020 Form 10-K. The following table summarizes our outstanding derivative instruments on a gross basis: Notional Amount Fair Value of Derivative Assets (2) Fair Value of Derivative Liabilities (2) March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Derivative Instrument: Level 2: Foreign exchange forward contracts $ 289.4 $ 276.2 $ 0.9 $ — $ 10.1 $ 15.8 Cross-currency swap (1) 1,400.1 1,461.9 — — 110.8 167.2 Interest rate swaps 2,016.8 2,022.0 24.6 2.0 28.9 33.4 Total hedges $ 3,706.3 $ 3,760.1 $ 25.5 $ 2.0 $ 149.8 $ 216.4 _________________________________ (1) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect of approximately 1.17 and 1.22 as of March 31, 2021 and December 31, 2020, respectively. (2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities. The following table summarizes the effect of our designated cash flow hedging derivative instruments on accumulated other comprehensive income (loss) (AOCI): Unrealized Gains (Losses) Recognized in Other Comprehensive Income Three Months Ended March 31, 2021 March 31, 2020 Derivative Instrument: Foreign exchange forward contracts (1) $ 2.1 $ 14.3 Cross-currency swap (2.1) 37.7 Interest rate swaps 27.0 (22.0) Total hedges $ 27.0 $ 30.0 _________________________________ (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 cash flow hedging relationships: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Revenue Interest Expense Other Income (Expense), Net Revenue Interest Expense Other Income (Expense), Net Foreign exchange forward contracts: Reclassified from AOCI into income $ (1.1) $ — $ — $ 0.8 $ — $ — Cross-currency swap: Reclassified from AOCI into income (1) — 6.6 58.1 — 7.6 20.2 Interest rate swaps: Reclassified from AOCI into income — (8.6) — — (2.5) — Total hedges $ (1.1) $ (2.0) $ 58.1 $ 0.8 $ 5.1 $ 20.2 _________________________________ (1) The amount reflected in other income (expense), net includes $(58.5) million and $(20.3) 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 the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, we estimate that approximately $11.9 million of net deferred losses related to our designated cash flow hedges will be recognized in earnings over the next 12 months. No amounts were excluded from our effectiveness testing during any of the periods presented. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | LeasesOur operating leases primarily consist of office and data center space expiring at various dates through November 2036. 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 March 31, 2021, operating leases have a remaining weighted average lease term of 7.7 years and our operating lease liabilities were measured using a weighted average discount rate of 5.0%. The components of operating lease expense were as follows: Three Months Ended March 31, 2021 March 31, 2020 Operating lease costs $ 11.9 $ 13.7 Variable lease costs 2.7 2.3 Sublease income (0.8) (0.9) $ 13.8 $ 15.1 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time-to-time, we are a party to litigation and subject to claims incident to 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 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 plaintiffs' request for an incentive payment. Additionally, the actual notice and administration costs associated with the settlement were lower than originally estimated. As a result of the developments discussed above, 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. We made no changes to our estimated loss provision for this settlement during the three months ended March 31, 2021. The timing of the payments to be made under the final settlement agreement is pending resolution of the appeal. We have denied and continue to deny the allegations in the complaint. 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. 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 does not believe, 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 be material. Regardless of the outcome, claims and legal proceedings may have an adverse effect on us because of defense costs, diversion of management resources and other factors. 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. 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 March 31, 2021 and December 31, 2020, our accrual for estimated indirect tax liabilities was $10.2 million and $10.1 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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, Germany and India. We anticipate this structure to remain in existence for the foreseeable future. Our effective tax rate for the three months ended March 31, 2021 differs from the U.S. federal statutory rate primarily due to changes in valuation allowances based on current year earnings and the impact of foreign earnings primarily related to the United Kingdom, Germany and India jurisdictions. On March 11, 2021, the U.S. federal government enacted the American Rescue Plan Act of 2021, which did not have a material impact on our benefit for income taxes. In determining the need for a valuation allowance, we prepare quarterly estimates using historical and forecasted future operating results, based upon approved business plans, including a review of the eligible carryforward periods and tax planning strategies. Based primarily on the negative evidence outweighing the positive evidence as of March 31, 2021, including our three year cumulative GAAP loss, our historical tax losses and the difficulty in forecasting excess tax benefits related to equity-based compensation, we believe there is uncertainty as to when we will be able to utilize certain of our NOLs, credit carryforwards and other deferred tax assets (DTAs). Therefore, we have recorded a valuation allowance against the DTAs for which we have concluded it is more-likely-than-not they will not be realized. Should our operating results continue to improve and projections show continued utilization of the tax attributes, we would consider that as significant positive evidence and our future reassessment would likely result in the determination that a valuation allowance is no longer required. We believe sufficient positive evidence may arise in 2021 such that we would release substantially all of the federal and state valuation allowance. If this were to occur, it would result in a reversal of substantially all of the valuation allowance with a corresponding non-cash income tax benefit, thereby increasing the total DTAs. Uncertain Tax Positions The total amount of gross unrecognized tax benefits was $55.5 million as of March 31, 2021, of which $21.0 million, if fully recognized, would decrease our effective tax rate. 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 provision or benefit for income taxes in the period in which a final determination is made. |
Income Per Share
Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 income per share is as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 10.8 $ 43.2 Less: net income attributable to non-controlling interests — 0.3 Net income attributable to GoDaddy Inc. $ 10.8 $ 42.9 Denominator: Weighted-average shares of Class A common stock outstanding—basic 169,435 173,113 Effect of dilutive securities: Class B common stock 584 1,360 Stock options 1,377 2,355 RSUs, PSUs and ESPP shares 1,657 1,029 Weighted-average shares of Class A Common stock outstanding—diluted 173,053 177,857 Net income attributable to GoDaddy Inc. per share of Class A common stock—basic $ 0.06 $ 0.25 Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (1) : $ 0.06 $ 0.24 _________________________________ (1) The diluted income per share calculations exclude net income attributable to non-controlling interests. 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: Three Months Ended March 31, 2021 2020 Options 734 1,868 RSUs, PSUs and ESPP shares 393 1,262 1,127 3,130 Shares of Class B common stock do not share in our earnings and are not participating securities. Accordingly, separate presentation of income per share of Class B common stock under the two-class method has not been presented. Each share of Class B common stock (together with a corresponding LLC Unit) is exchangeable for one share of Class A common stock. |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by geography is based on the customer's billing address and was as follows: Three Months Ended March 31, 2021 2020 U.S. $ 598.0 $ 529.6 International 303.1 262.4 $ 901.1 $ 792.0 No individual international country represented more than 10% of total revenue in any period presented. Property and equipment, net by geography was as follows: March 31, 2021 December 31, 2020 U.S. $ 191.2 $ 198.3 France 25.2 27.0 All other international 30.1 32.0 $ 246.5 $ 257.3 No other individual international country represented more than 10% of property and equipment, net in any period presented. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive 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, 2020 (2) $ (98.8) $ (32.8) $ (131.6) Other comprehensive income (loss) before reclassifications 33.7 (28.5) 5.2 Amounts reclassified from AOCI — 55.0 55.0 Other comprehensive income 33.7 26.5 60.2 $ (65.1) $ (6.3) (71.4) Less: AOCI attributable to non-controlling interests 0.2 Balance as of March 31, 2021 $ (71.2) Gross balance as of December 31, 2019 (2) $ (54.6) $ (24.3) $ (78.9) Other comprehensive income (loss) before reclassifications (24.9) (0.1) (25.0) Amounts reclassified from AOCI — 26.1 26.1 Other comprehensive income (loss) (24.9) 26.0 1.1 $ (79.5) $ 1.7 (77.8) Less: AOCI attributable to non-controlling interests 0.6 Balance as of March 31, 2020 $ (77.2) _________________________________ (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. See Note 10 for the effect on net income of amounts reclassified from AOCI related to our cash flow hedging instruments. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisitions In April 2021, we executed four acquisition agreements for aggregate consideration of approximately $220.0 million in cash at closing, subject to customary adjustments, and deferred cash payments totaling approximately $13.0 million. One of the agreements also includes a variable earn-out payment of up to $12.0 million based on the achievement of specified performance conditions. On April 12, 2021, we closed one of the acquisitions and expect the remaining acquisitions to close in the second quarter of 2021, subject to the satisfaction of customary closing conditions. Share Repurchases In May 2021, our board of directors approved the repurchase of up to an additional $775.0 million of our Class A common stock, as described in Note 5. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. Our interim financial statements are unaudited, and in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2021. These financial statements should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Form 10-K). |
Prior Period Reclassification | Prior Period Reclassifications Certain immaterial prior period amounts have been reclassified 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. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ. |
Segment | Segment As of March 31, 2021, our chief operating decision maker was our Chief Executive Officer who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we have a single operating and reportable segment. |
Assets Recognized from Contract Costs | Assets Recognized from Contract CostsFees 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued guidance providing temporary optional expedients and exceptions related to contract modifications and hedge accounting to ease the financial reporting burden of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We continue to evaluate our contracts and hedging relationships that reference LIBOR. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis: March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds and time deposits $ 479.0 $ — $ — $ 479.0 Derivative assets — 25.5 — 25.5 Total assets $ 479.0 $ 25.5 $ — $ 504.5 Liabilities: Derivative liabilities $ — $ 149.8 $ — $ 149.8 Total liabilities $ — $ 149.8 $ — $ 149.8 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 98.0 $ — $ — $ 98.0 Total assets $ 98.0 $ — $ — $ 98.0 Liabilities: Derivative liabilities $ — $ 216.4 $ — $ 216.4 Total liabilities $ — $ 216.4 $ — $ 216.4 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of the Estimated Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated acquisition date fair values of the assets acquired and liabilities assumed: Total purchase consideration $ 297.7 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 3.2 Indefinite-lived intangible assets 1.3 Finite-lived intangible assets 51.8 Other assets and liabilities, net 0.8 Total assets acquired, net of liabilities assumed 57.1 Goodwill $ 240.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in our goodwill balance: Balance at December 31, 2020 $ 3,275.1 Goodwill related to acquisitions 242.0 Impact of foreign currency translation (19.4) Other (1.5) Balance at March 31, 2021 $ 3,496.2 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net are summarized as follows: March 31, 2021 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 249.3 n/a 249.3 Contractual-based assets and other 68.3 n/a 68.3 Finite-lived intangible assets: Customer-related 533.3 $ (232.9) 300.4 Developed technology 229.1 (99.5) 129.6 Trade names and other 106.0 (36.0) 70.0 $ 1,631.0 $ (368.4) $ 1,262.6 December 31, 2020 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 250.3 n/a 250.3 Contractual-based assets 67.0 n/a 67.0 Finite-lived intangible assets: Customer-related 857.0 $ (534.7) 322.3 Developed technology 188.1 (90.7) 97.4 Trade names and other 106.9 (33.8) 73.1 $ 1,914.3 $ (659.2) $ 1,255.1 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net are summarized as follows: March 31, 2021 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 249.3 n/a 249.3 Contractual-based assets and other 68.3 n/a 68.3 Finite-lived intangible assets: Customer-related 533.3 $ (232.9) 300.4 Developed technology 229.1 (99.5) 129.6 Trade names and other 106.0 (36.0) 70.0 $ 1,631.0 $ (368.4) $ 1,262.6 December 31, 2020 Gross Accumulated Net Carrying Indefinite-lived intangible assets: Trade names and branding $ 445.0 n/a $ 445.0 Domain portfolio 250.3 n/a 250.3 Contractual-based assets 67.0 n/a 67.0 Finite-lived intangible assets: Customer-related 857.0 $ (534.7) 322.3 Developed technology 188.1 (90.7) 97.4 Trade names and other 106.9 (33.8) 73.1 $ 1,914.3 $ (659.2) $ 1,255.1 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the balance of finite-lived intangible assets as of March 31, 2021, expected future amortization expense is as follows: Year Ending December 31: 2021 (remainder of) $ 94.0 2022 120.2 2023 95.6 2024 80.8 2025 77.4 Thereafter 32.0 $ 500.0 |
Equity-Based Compensation Pla_2
Equity-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Award Activity | The following table summarizes stock option activity: Number of Weighted- Outstanding at December 31, 2020 3,428 42.79 Exercised (309) 37.54 Forfeited (36) 69.64 Outstanding at March 31, 2021 3,083 43.00 Vested at March 31, 2021 2,432 35.40 The following table summarizes stock award activity: Number of Outstanding at December 31, 2020 6,133 Granted: RSUs 2,944 Granted: TSR-based PSUs 386 Vested (1,313) Forfeited (210) Outstanding at March 31, 2021 (1) 7,940 _________________________________ (1) Includes financial-based PSUs for which performance targets have not yet been established, and which are not yet considered granted for accounting purposes. The balance of outstanding awards is comprised of the following: Number of Weighted-Average Grant-Date Fair Value Per Share ($) RSUs 7,033 76.25 TSR-based PSUs 710 106.32 Financial-based PSUs granted for accounting purposes 104 78.62 Financial-based PSUs not yet granted for accounting purposes 93 N/A Outstanding at March 31, 2021 7,940 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Deferred Revenue | Deferred revenue consisted of the following: March 31, 2021 December 31, 2020 Current: Domains $ 849.3 $ 810.7 Hosting and presence 600.8 574.8 Business applications 356.1 325.8 $ 1,806.2 $ 1,711.3 Noncurrent: Domains $ 434.6 $ 410.4 Hosting and presence 222.5 218.1 Business applications 105.2 96.6 $ 762.3 $ 725.1 |
Expected Recognition of Deferred Revenue | The deferred revenue balance as of March 31, 2021 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows: Remainder of 2021 2022 2023 2024 2025 Thereafter Total Domains $ 734.4 $ 312.2 $ 107.8 $ 55.5 $ 31.6 $ 42.4 $ 1,283.9 Hosting and presence 528.0 190.9 58.5 19.9 8.7 17.3 823.3 Business applications 317.1 100.4 34.4 5.8 1.9 1.7 461.3 $ 1,579.5 $ 603.5 $ 200.7 $ 81.2 $ 42.2 $ 61.4 $ 2,568.5 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Composition of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: March 31, 2021 December 31, 2020 Derivative liabilities $ 149.8 $ 216.4 Accrued payroll and employee benefits 95.1 114.8 Tax-related accruals 47.1 38.4 Current portion of operating lease liabilities 43.0 41.5 Accrued marketing and advertising 31.9 29.9 Accrued legal and professional 26.4 24.4 Accrued acquisition-related expenses and acquisition consideration payable 14.8 9.4 Other 86.1 52.8 $ 494.2 $ 527.6 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Composition of Long-Term Debt | Long-term debt consisted of the following: Maturity Date March 31, 2021 December 31, 2020 2024 Term Loans (effective interest rate of 2.3% at March 31, 2021 and 2.8% at December 31, 2020) February 15, 2024 $ 1,801.1 $ 1,807.4 2027 Term Loans (effective interest rate of 2.7% at March 31, 2021 and 3.0% at December 31, 2020) August 10, 2027 744.4 746.2 2027 Senior Notes (effective interest rate of 5.4% at March 31, 2021 and December 31, 2020) December 1, 2027 600.0 600.0 2029 Senior Notes (effective interest rate of 3.5% at March 31, 2021) March 1, 2029 800.0 — Revolver February 15, 2024 — — Total 3,945.5 3,153.6 Less: unamortized original issue discount and debt issuance costs (1) (46.5) (39.2) Less: current portion of long-term debt (24.1) (24.3) $ 3,874.9 $ 3,090.1 _________________________________ (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. |
Estimated Fair Values of Long-Term Debt Instruments | The estimated fair values of our long-term debt instruments are based on observable market prices for these loans, which are traded in less active markets and therefore classified as Level 2 fair value measurements, and were as follows as of March 31, 2021: 2024 Term Loans $ 1,789.8 2027 Term Loans $ 740.7 2027 Senior Notes $ 637.6 2029 Senior Notes $ 788.2 |
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 March 31, 2021 are as follows: Year Ending December 31: 2021 (remainder of) $ 24.4 2022 32.5 2023 32.5 2024 1,740.0 2025 7.5 Thereafter 2,108.6 $ 3,945.5 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Instruments | The following table summarizes our outstanding derivative instruments on a gross basis: Notional Amount Fair Value of Derivative Assets (2) Fair Value of Derivative Liabilities (2) March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Derivative Instrument: Level 2: Foreign exchange forward contracts $ 289.4 $ 276.2 $ 0.9 $ — $ 10.1 $ 15.8 Cross-currency swap (1) 1,400.1 1,461.9 — — 110.8 167.2 Interest rate swaps 2,016.8 2,022.0 24.6 2.0 28.9 33.4 Total hedges $ 3,706.3 $ 3,760.1 $ 25.5 $ 2.0 $ 149.8 $ 216.4 _________________________________ (1) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect of approximately 1.17 and 1.22 as of March 31, 2021 and December 31, 2020, respectively. (2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities. |
Summary of the Gains (Losses) Recognized within Earnings Related to Derivative Instruments | The following table summarizes the effect of our designated cash flow hedging derivative instruments on accumulated other comprehensive income (loss) (AOCI): Unrealized Gains (Losses) Recognized in Other Comprehensive Income Three Months Ended March 31, 2021 March 31, 2020 Derivative Instrument: Foreign exchange forward contracts (1) $ 2.1 $ 14.3 Cross-currency swap (2.1) 37.7 Interest rate swaps 27.0 (22.0) Total hedges $ 27.0 $ 30.0 _________________________________ (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 cash flow hedging relationships: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Revenue Interest Expense Other Income (Expense), Net Revenue Interest Expense Other Income (Expense), Net Foreign exchange forward contracts: Reclassified from AOCI into income $ (1.1) $ — $ — $ 0.8 $ — $ — Cross-currency swap: Reclassified from AOCI into income (1) — 6.6 58.1 — 7.6 20.2 Interest rate swaps: Reclassified from AOCI into income — (8.6) — — (2.5) — Total hedges $ (1.1) $ (2.0) $ 58.1 $ 0.8 $ 5.1 $ 20.2 _________________________________ (1) The amount reflected in other income (expense), net includes $(58.5) million and $(20.3) 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 the three months ended March 31, 2021 and 2020, respectively. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expenses | The components of operating lease expense were as follows: Three Months Ended March 31, 2021 March 31, 2020 Operating lease costs $ 11.9 $ 13.7 Variable lease costs 2.7 2.3 Sublease income (0.8) (0.9) $ 13.8 $ 15.1 |
Income Per Share (Tables)
Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 income per share is as follows: Three Months Ended March 31, 2021 2020 Numerator: Net income $ 10.8 $ 43.2 Less: net income attributable to non-controlling interests — 0.3 Net income attributable to GoDaddy Inc. $ 10.8 $ 42.9 Denominator: Weighted-average shares of Class A common stock outstanding—basic 169,435 173,113 Effect of dilutive securities: Class B common stock 584 1,360 Stock options 1,377 2,355 RSUs, PSUs and ESPP shares 1,657 1,029 Weighted-average shares of Class A Common stock outstanding—diluted 173,053 177,857 Net income attributable to GoDaddy Inc. per share of Class A common stock—basic $ 0.06 $ 0.25 Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (1) : $ 0.06 $ 0.24 _________________________________ (1) The diluted income per share calculations exclude net income attributable to non-controlling interests. |
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: Three Months Ended March 31, 2021 2020 Options 734 1,868 RSUs, PSUs and ESPP shares 393 1,262 1,127 3,130 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue by Geography | Revenue by geography is based on the customer's billing address and was as follows: Three Months Ended March 31, 2021 2020 U.S. $ 598.0 $ 529.6 International 303.1 262.4 $ 901.1 $ 792.0 |
Property and Equipment, Net by Geography | Property and equipment, net by geography was as follows: March 31, 2021 December 31, 2020 U.S. $ 191.2 $ 198.3 France 25.2 27.0 All other international 30.1 32.0 $ 246.5 $ 257.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
OCI Activity in Equity | 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, 2020 (2) $ (98.8) $ (32.8) $ (131.6) Other comprehensive income (loss) before reclassifications 33.7 (28.5) 5.2 Amounts reclassified from AOCI — 55.0 55.0 Other comprehensive income 33.7 26.5 60.2 $ (65.1) $ (6.3) (71.4) Less: AOCI attributable to non-controlling interests 0.2 Balance as of March 31, 2021 $ (71.2) Gross balance as of December 31, 2019 (2) $ (54.6) $ (24.3) $ (78.9) Other comprehensive income (loss) before reclassifications (24.9) (0.1) (25.0) Amounts reclassified from AOCI — 26.1 26.1 Other comprehensive income (loss) (24.9) 26.0 1.1 $ (79.5) $ 1.7 (77.8) Less: AOCI attributable to non-controlling interests 0.6 Balance as of March 31, 2020 $ (77.2) _________________________________ (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) | 3 Months Ended |
Mar. 31, 2021segment | |
Class of Stock [Line Items] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Desert Newco, LLC | |
Class of Stock [Line Items] | |
LLC units held (as a percent) | 99.70% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Amortization of contract costs | $ 160.9 | $ 158.4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Measured on a Recurring Basis - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Derivative assets | $ 25.5 | |
Total assets | 504.5 | $ 98 |
Liabilities: | ||
Derivative liabilities | 149.8 | 216.4 |
Total liabilities | 149.8 | 216.4 |
Money market funds and time deposits | ||
Assets: | ||
Cash and cash equivalents | 479 | 98 |
Level 1 | ||
Assets: | ||
Derivative assets | 0 | |
Total assets | 479 | 98 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Money market funds and time deposits | ||
Assets: | ||
Cash and cash equivalents | 479 | 98 |
Level 2 | ||
Assets: | ||
Derivative assets | 25.5 | |
Total assets | 25.5 | 0 |
Liabilities: | ||
Derivative liabilities | 149.8 | 216.4 |
Total liabilities | 149.8 | 216.4 |
Level 2 | Money market funds and time deposits | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Assets: | ||
Derivative assets | 0 | |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Money market funds and time deposits | ||
Assets: | ||
Cash and cash equivalents | $ 0 | $ 0 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - Poynt Co. - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 28, 2021 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Cash paid to acquire business | $ 297.7 | |
Cash paid at closing recorded as compensation expense | $ 29.4 | |
Cash payable in future periods upon expiration of the contractual holdback period | $ 45 | |
Weighted average amortization period of acquired finite-lived intangible assets | 4 years 2 months 12 days |
Business Acquisitions - Summary
Business Acquisitions - Summary of the Estimated Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 |
Fair value of assets acquired and liabilities assumed: | |||
Goodwill | $ 3,496.2 | $ 3,275.1 | |
Poynt Co. | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 297.7 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 3.2 | ||
Indefinite-lived intangible assets | 1.3 | ||
Finite-lived intangible assets | 51.8 | ||
Other assets and liabilities, net | 0.8 | ||
Total assets acquired, net of liabilities assumed | 57.1 | ||
Goodwill | $ 240.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2020 | $ 3,275.1 |
Goodwill related to acquisitions | 242 |
Impact of foreign currency translation | (19.4) |
Other | (1.5) |
Balance at March 31, 2021 | $ 3,496.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (368.4) | $ (659.2) |
Net Carrying Amount | 500 | |
Gross Carrying Amount | 1,631 | 1,914.3 |
Net Carrying Amount | 1,262.6 | 1,255.1 |
Trade names and branding | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 445 | 445 |
Domain portfolio | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 249.3 | 250.3 |
Contractual-based assets and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Amount | 68.3 | 67 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 533.3 | 857 |
Accumulated Amortization | (232.9) | (534.7) |
Net Carrying Amount | 300.4 | 322.3 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 229.1 | 188.1 |
Accumulated Amortization | (99.5) | (90.7) |
Net Carrying Amount | 129.6 | 97.4 |
Trade names and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 106 | 106.9 |
Accumulated Amortization | (36) | (33.8) |
Net Carrying Amount | $ 70 | $ 73.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 30.4 | $ 33.2 |
Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining amortization period | 56 months | |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining amortization period | 58 months | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining amortization period | 42 months | |
Trade names and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining amortization period | 75 months |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization of Finite Lived Intangible Assets (Details) $ in Millions | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 (remainder of) | $ 94 |
2022 | 120.2 |
2023 | 95.6 |
2024 | 80.8 |
2025 | 77.4 |
Thereafter | 32 |
Net Carrying Amount | $ 500 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | May 05, 2021 | |
Class of Stock [Line Items] | |||
Aggregate purchase price | $ 195,100,000 | $ 398,000,000 | |
Share repurchases included in accrued expenses and other current liabilities | 15,000,000 | ||
Share repurchase program, remaining available amount under approved programs | $ 305,000,000 | ||
Subsequent Event | |||
Class of Stock [Line Items] | |||
Share repurchase program, additional shares authorized | $ 775,000,000 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Repurchases of Class A common stock (in shares) | 2,544 | ||
Aggregate purchase price | $ 195,100,000 |
Equity-Based Compensation Pla_3
Equity-Based Compensation Plans - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 13.7 | ||
Weighted average recognition period | 2 years | ||
Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 443.7 | ||
Weighted average recognition period | 2 years 10 months 24 days | ||
2015 Equity Incentive Plan | Class A Common Stock | Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance (in shares) | 27,340 | ||
Additional shares reserved for future issuance (in shares) | 6,794 | ||
Shares reserved for issuance (in shares) | 31,049 | ||
2015 Employee Stock Purchase Plan | Class A Common Stock | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance (in shares) | 4,081 | ||
Additional shares reserved for future issuance (in shares) | 1,000 | ||
Shares reserved for issuance (in shares) | 5,081 |
Equity-Based Compensation Pla_4
Equity-Based Compensation Plans - Summary of Stock Option Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at beginning of period (in shares) | shares | 3,428 |
Exercised (in shares) | shares | (309) |
Forfeited (in shares) | shares | (36) |
Outstanding at end of period (in shares) | shares | 3,083 |
Vested at end of period (in shares) | shares | 2,432 |
Weighted- Average Exercise Price Per Share ($) | |
Outstanding weighted average exercise price (in dollars per share) | $ / shares | $ 42.79 |
Exercised (in dollars per share) | $ / shares | 37.54 |
Forfeited (in dollars per share) | $ / shares | 69.64 |
Outstanding weighted average exercise price (in dollars per share) | $ / shares | 43 |
Vested at end of period (in dollars per share) | $ / shares | $ 35.40 |
Equity-Based Compensation Pla_5
Equity-Based Compensation Plans - Summary of Stock Award Activity (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at beginning of period (in shares) | 6,133,000 |
Vested (in shares) | (1,313,000) |
Forfeited (in shares) | (210,000) |
Outstanding at end of period (in shares) | 7,940,000 |
RSUs | |
Number of Shares of Class A Common Stock (#) | |
Granted (in shares) | 2,944,000 |
Outstanding at end of period (in shares) | 7,033,000 |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 76.25 |
TSR-based PSUs | |
Number of Shares of Class A Common Stock (#) | |
Granted (in shares) | 386,000 |
Outstanding at end of period (in shares) | 710,000 |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 106.32 |
Financial-based PSUs granted for accounting purposes | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at end of period (in shares) | 104,000 |
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 78.62 |
Financial-based PSUs not yet granted for accounting purposes | |
Number of Shares of Class A Common Stock (#) | |
Outstanding at end of period (in shares) | 93,000 |
Deferred Revenue - Composition
Deferred Revenue - Composition of Deferred Revenue (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | $ 1,806.2 | $ 1,711.3 |
Deferred revenue, noncurrent | 762.3 | 725.1 |
Domains | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 849.3 | 810.7 |
Deferred revenue, noncurrent | 434.6 | 410.4 |
Hosting and presence | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 600.8 | 574.8 |
Deferred revenue, noncurrent | 222.5 | 218.1 |
Business applications | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 356.1 | 325.8 |
Deferred revenue, noncurrent | $ 105.2 | $ 96.6 |
Deferred Revenue - Narrative (D
Deferred Revenue - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 672.2 |
Deferred Revenue - Expected Rec
Deferred Revenue - Expected Recognition of Deferred Revenue (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 2,568.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 1,579.5 |
Expected recognition period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 603.5 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 200.7 |
Expected recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 81.2 |
Expected recognition period | 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] | |
Deferred revenue expected to be recognized as revenue | $ 42.2 |
Expected recognition period | 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] | |
Deferred revenue expected to be recognized as revenue | $ 61.4 |
Expected recognition period | |
Domains | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 1,283.9 |
Domains | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 734.4 |
Expected recognition period | 9 months |
Domains | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 312.2 |
Expected recognition period | 1 year |
Domains | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 107.8 |
Expected recognition period | 1 year |
Domains | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 55.5 |
Expected recognition period | 1 year |
Domains | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 31.6 |
Expected recognition period | 1 year |
Domains | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 42.4 |
Expected recognition period | |
Hosting and presence | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 823.3 |
Hosting and presence | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 528 |
Expected recognition period | 9 months |
Hosting and presence | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 190.9 |
Expected recognition period | 1 year |
Hosting and presence | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 58.5 |
Expected recognition period | 1 year |
Hosting and presence | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 19.9 |
Expected recognition period | 1 year |
Hosting and presence | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 8.7 |
Expected recognition period | 1 year |
Hosting and presence | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 17.3 |
Expected recognition period | |
Business applications | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 461.3 |
Business applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 317.1 |
Expected recognition period | 9 months |
Business applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 100.4 |
Expected recognition period | 1 year |
Business applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 34.4 |
Expected recognition period | 1 year |
Business applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 5.8 |
Expected recognition period | 1 year |
Business applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 1.9 |
Expected recognition period | 1 year |
Business applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized as revenue | $ 1.7 |
Expected recognition period |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Derivative liabilities | $ 149.8 | $ 216.4 |
Accrued payroll and employee benefits | 95.1 | 114.8 |
Tax-related accruals | 47.1 | 38.4 |
Current portion of operating lease liabilities | 43 | 41.5 |
Accrued legal and professional | 26.4 | 24.4 |
Accrued marketing and advertising | 31.9 | 29.9 |
Accrued acquisition-related expenses and acquisition consideration payable | 14.8 | 9.4 |
Other | 86.1 | 52.8 |
Accrued expenses and other current liabilities | $ 494.2 | $ 527.6 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | 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 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,945.5 | $ 3,153.6 |
Less unamortized debt issuance costs | (46.5) | (39.2) |
Less: current portion of long-term debt | (24.1) | (24.3) |
Long-term debt, net of current portion | 3,874.9 | 3,090.1 |
2024 Term Loans | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,801.1 | $ 1,807.4 |
Effective interest rate percentage | 2.30% | 2.80% |
2020 Term Loans | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 744.4 | $ 746.2 |
Effective interest rate percentage | 2.70% | 3.00% |
2027 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 600 | $ 600 |
Effective interest rate percentage | 5.40% | 5.40% |
Revolver | Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 0 |
2029 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 800 | $ 0 |
Effective interest rate percentage | 3.50% | 3.50% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2021 | Feb. 28, 2021 | Aug. 31, 2020 | |
2020 Term Loans | Secured Debt | Level 2 | |||
Debt Instrument [Line Items] | |||
Estimated fair value of long-term debt | $ 740,700,000 | ||
2029 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount of long-term debt | $ 800,000,000 | ||
Stated interest rate | 3.50% | ||
Debt issuance costs | $ 9,000,000 | ||
Redemption price as a percentage of principal amount | 100.00% | ||
Redemption premium percentage | 1.00% | ||
Redemption price as a percentage of principal amount in the event of a change of control | 101.00% | ||
2029 Senior Notes | Senior Notes | Prior to March 1, 2024 | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 103.50% | ||
2029 Senior Notes | Senior Notes | On and After March 1, 2024 | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 101.75% | ||
2029 Senior Notes | Senior Notes | At March 1, 2025 | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 101.875% | ||
2029 Senior Notes | Senior Notes | Thereafter | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 100.00% | ||
2029 Senior Notes | Senior Notes | Level 2 | |||
Debt Instrument [Line Items] | |||
Estimated fair value of long-term debt | 788,200,000 | ||
2027 Senior Notes | Senior Notes | Level 2 | |||
Debt Instrument [Line Items] | |||
Estimated fair value of long-term debt | 637,600,000 | ||
2024 Term Loans | Secured Debt | Level 2 | |||
Debt Instrument [Line Items] | |||
Estimated fair value of long-term debt | $ 1,789,800,000 | ||
Line of Credit | 2020 Term Loans | LIBOR | |||
Debt Instrument [Line Items] | |||
Decrease in interest rate margins as a result of refinancing | 0.50% | ||
Line of Credit | 2020 Term Loans | LIBOR | Option 1 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Line of Credit | 2020 Term Loans | LIBOR | Option 2 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Line of Credit | 2020 Term Loans | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Line of Credit | 2020 Term Loans | Federal Funds Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Line of Credit | Revolver | |||
Debt Instrument [Line Items] | |||
Available borrowing capacity | $ 600,000,000 |
Long-Term Debt - Estimated Fair
Long-Term Debt - Estimated Fair Values of Long-Term Debt Instruments (Details) - Level 2 $ in Millions | Mar. 31, 2021USD ($) |
2024 Term Loans | Secured Debt | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | $ 1,789.8 |
2020 Term Loans | Secured Debt | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | 740.7 |
2027 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | 637.6 |
2029 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of long-term debt | $ 788.2 |
Long-Term Debt - Aggregate Prin
Long-Term Debt - Aggregate Principal Payments Due on Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 (remainder of) | $ 24.4 | |
2022 | 32.5 | |
2023 | 32.5 | |
2024 | 1,740 | |
2025 | 7.5 | |
Thereafter | 2,108.6 | |
Aggregate principal payments | $ 3,945.5 | $ 3,153.6 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Net deferred gains from cash flow hedges | $ (11,900,000) | |
Amounts excluded from effectiveness testing | $ 0 | $ 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative contract term | 18 months |
Derivatives and Hedging - Summa
Derivatives and Hedging - Summary of Outstanding Derivative Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Millions | Mar. 31, 2021USD ($)€ / $ | Dec. 31, 2020USD ($)€ / $ |
Level 2 | ||
Derivative [Line Items] | ||
Notional amount | $ 3,706.3 | $ 3,760.1 |
Level 2 | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 25.5 | 2 |
Level 2 | Accrued Expenses and Other Current Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 149.8 | 216.4 |
Foreign exchange forward contracts | Level 2 | ||
Derivative [Line Items] | ||
Notional amount | 289.4 | 276.2 |
Foreign exchange forward contracts | Level 2 | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 0.9 | 0 |
Foreign exchange forward contracts | Level 2 | Accrued Expenses and Other Current Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 10.1 | $ 15.8 |
Cross-currency swap | ||
Derivative [Line Items] | ||
Euro to U.S. dollar exchange rate for translation | € / $ | 1.17 | 1.22 |
Cross-currency swap | Level 2 | ||
Derivative [Line Items] | ||
Notional amount | $ 1,400.1 | $ 1,461.9 |
Cross-currency swap | Level 2 | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Cross-currency swap | Level 2 | Accrued Expenses and Other Current Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 110.8 | 167.2 |
Interest rate swaps | Level 2 | ||
Derivative [Line Items] | ||
Notional amount | 2,016.8 | 2,022 |
Interest rate swaps | Level 2 | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 24.6 | 2 |
Interest rate swaps | Level 2 | Accrued Expenses and Other Current Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 28.9 | $ 33.4 |
Derivatives and Hedging - Sum_2
Derivatives and Hedging - Summary of the Gains (Losses) Recognized within Earnings Related to Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | $ 24.4 | $ 11.7 |
Revenue | 901.1 | 792 |
Interest Expense | 28.7 | 21.2 |
Other Income (Expense), Net | 0.7 | (1.4) |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Derivative [Line Items] | ||
Revenue | (1.1) | 0.8 |
Interest Expense | (2) | 5.1 |
Other Income (Expense), Net | 58.1 | 20.2 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | 27 | 30 |
Foreign exchange forward contracts | Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Derivative [Line Items] | ||
Revenue | (1.1) | 0.8 |
Interest Expense | 0 | 0 |
Other Income (Expense), Net | 0 | 0 |
Foreign exchange forward contracts | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | 2.1 | 14.3 |
Cross-currency swap | Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Derivative [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 6.6 | 7.6 |
Other Income (Expense), Net | 58.1 | 20.2 |
Cross-currency swap | Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Euro-Denominated Intercompany Loan | ||
Derivative [Line Items] | ||
Other Income (Expense), Net | (58.5) | (20.3) |
Cross-currency swap | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | (2.1) | 37.7 |
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Derivative [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | (8.6) | (2.5) |
Other Income (Expense), Net | 0 | 0 |
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income | $ 27 | $ (22) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2021 |
Leases [Abstract] | |
Operating lease, remaining weighted average lease term | 7 years 8 months 12 days |
Operating lease, weighted average discount rate | 5.00% |
Leases - Components of Lease Ex
Leases - Components of Lease Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 11.9 | $ 13.7 |
Variable lease costs | 2.7 | 2.3 |
Sublease income | (0.8) | (0.9) |
Operating lease expense | $ 13.8 | $ 15.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 16, 2019case | Jun. 13, 2019USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |||||
Number of cases settled | case | 2 | ||||
Estimated loss provision recorded | $ 18,100,000 | ||||
Reduction in the estimated loss provision for settlement | $ 10,000,000 | ||||
Estimated loss provision for settlement | 8,100,000 | ||||
Indirect Taxation | |||||
Loss Contingencies [Line Items] | |||||
Accrual for estimated indirect tax liabilities | $ 10,200,000 | $ 10,100,000 | |||
Class Action Complaint | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Proposed settlement amount (up to) | $ 35,000,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Mar. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 55.5 |
Unrecognized tax benefits that if fully recognized would decrease the effective tax rate | $ 21 |
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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator | ||
Net income | $ 10.8 | $ 43.2 |
Less: net income attributable to non-controlling interests | 0 | 0.3 |
Net income attributable to GoDaddy Inc. | $ 10.8 | $ 42.9 |
Class A Common Stock | ||
Denominator [Abstract] | ||
Weighted-average shares of Class A common stock outstanding—basic (in shares) | 169,435 | 173,113 |
Weighted-average shares of Class A Common stock outstanding—diluted (in shares) | 173,053 | 177,857 |
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic (in USD per share) | $ 0.06 | $ 0.25 |
Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted (in USD per share) | $ 0.06 | $ 0.24 |
Class B Common Stock | ||
Denominator [Abstract] | ||
Effect of dilutive securities (in shares) | 584 | 1,360 |
Stock options | ||
Denominator [Abstract] | ||
Effect of dilutive securities (in shares) | 1,377 | 2,355 |
RSUs, PSUs and ESPP shares | ||
Denominator [Abstract] | ||
Effect of dilutive securities (in shares) | 1,657 | 1,029 |
Income Per Share - Summary of W
Income Per Share - Summary of Weighted Average Potentially Dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,127 | 3,130 |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 734 | 1,868 |
RSUs, PSUs and ESPP shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 393 | 1,262 |
Income Per Share - Narrative (D
Income Per Share - Narrative (Details) | Mar. 31, 2021shares |
Class B Common Stock | |
Class of Stock [Line Items] | |
Conversion feature of Class B common stock, number of Class A common shares | 1 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 901.1 | $ 792 | |
Property and equipment, net | 246.5 | $ 257.3 | |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 598 | 529.6 | |
Property and equipment, net | 191.2 | 198.3 | |
FRANCE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 25.2 | 27 | |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 303.1 | $ 262.4 | |
All other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 30.1 | $ 32 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - AOCI Activity in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | $ (11.8) | $ 782.1 |
Other comprehensive income (loss) before reclassifications | 5.2 | (25) |
Amounts reclassified from AOCI | 55 | 26.1 |
Other comprehensive income | 60.2 | 1.1 |
Balance | (71) | 489.1 |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (98.8) | (54.6) |
Other comprehensive income (loss) before reclassifications | 33.7 | (24.9) |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income | 33.7 | (24.9) |
Balance | (65.1) | (79.5) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (32.8) | (24.3) |
Other comprehensive income (loss) before reclassifications | (28.5) | (0.1) |
Amounts reclassified from AOCI | 55 | 26.1 |
Other comprehensive income | 26.5 | 26 |
Balance | (6.3) | 1.7 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (131.6) | (78.9) |
Balance | (71.4) | (77.8) |
AOCI Attributable to Noncontrolling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (0.2) | (0.6) |
AOCI Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (131) | (78.2) |
Balance | $ (71.2) | $ (77.2) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | 1 Months Ended | |
Apr. 30, 2021USD ($)acquisition | May 05, 2021USD ($) | |
Subsequent Event [Line Items] | ||
Share repurchase program, additional shares authorized | $ 775,000,000 | |
Acquisition Agreements | ||
Subsequent Event [Line Items] | ||
Number of acquisitions | acquisition | 4 | |
Cash paid to acquire business | $ 220,000,000 | |
Deferred cash payments | 13,000,000 | |
Variable earn-out payment (up to) | $ 12,000,000 |