SCOTTSDALE, Ariz., June 24, 2020 /PRNewswire/ -- GoDaddy Inc. (NYSE:
GDDY), the company that empowers everyday entrepreneurs, continues
to grow in the face of global economic challenges resulting from
the COVID-19 pandemic. The company has seen strong demand in its
business, led by Domains and its Websites + Marketing offering, and
management now expects second quarter revenue to exceed previously
issued guidance of $790 million by
approximately 1%.
Notwithstanding the strength in the business, the company faces
challenges in U.S. outbound sales, specifically, soft customer
demand for certain higher-priced, do-it-for-you services such as
GoDaddy Social, and reduced effectiveness of outbound calling to
customers. Given these challenges and continued uncertainty
resulting from COVID-19, the company implemented a restructuring to
address the sustainability of its U.S. outbound sales and
operations. The restructuring impacts approximately 814 employees,
who are either departing, relocating, or transitioning to other
roles. In connection with the restructuring, the Company estimates
it will incur approximately $15
million of pre-tax restructuring charges for the payment of
severance and related benefit costs and has determined that certain
lease assets with a book value of approximately $58 million are impaired.
Management does not expect the changes to have a material
incremental impact to revenue, beyond the headwinds in impacted
areas of the business that have been previously disclosed. In light
of the strong demand in its business the company expects to
reinvest cost savings from the changes to drive further growth.
Details can be found in the Form 8-K filed today with the
Securities and Exchange Commission.
About GoDaddy
GoDaddy is empowering everyday entrepreneurs around the world by
providing all of the help and tools to succeed online. With 19
million customers worldwide, GoDaddy is the place people come to
name their idea, build a professional website, attract customers
and manage their work. Our mission is to give our customers the
tools, insights and the people to transform their ideas and
personal initiative into success. To learn more about the company,
visit www.GoDaddy.com.
Forward-Looking Statements
This press release contains forward-looking statements which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
estimates and information available to us at the time of this press
release and are not guarantees of future performance. Statements in
this release involve risks, uncertainties and assumptions. If the
risks or uncertainties materialize or the assumptions prove
incorrect, our results may differ materially from those expressed
or implied by such forward-looking statements. All statements other
than statements of historical fact could be deemed forward-looking
statements, including, but not limited to: statements regarding the
Company's future financial and operating performance, including the
effect of the COVID-19 pandemic on the Company's
business; sustainability of the Company's U.S. outbound sales and
operations based on continued uncertainty resulting from COVID-19;
potential long term benefits from the restructuring described
above; our ability to drive future growth; and the Company's
expected costs related to restructuring and related charges,
including the timing of such charges and any impairments.
Actual results could differ materially from our current
expectations as a result of many factors, including, but not
limited to: the unpredictable nature of our rapidly evolving
market; fluctuations in our financial and operating results; our
ability to drive future growth; the effect of the COVID-19
pandemic, our ability to continue to release, and gain customer
acceptance of, our existing and future products and services,
results of operations and ability to forecast its performance.
Additional risks and uncertainties that could affect GoDaddy's
financial results are included in the other filings we make with
the SEC from time to time, including those described in "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition" in our Annual Report on Form 10-K for the year ended
December 31, 2019, and the Company's
Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2020 as filed with the SEC, the Company's
Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2020 that will be
subsequently filed, and additional risks related, which is
available on GoDaddy's website at https://investors.godaddy.net and
on the SEC's website at www.sec.gov. Additional information will
also be set forth in other filings that GoDaddy makes with the SEC
from time to time. All forward-looking statements in this press
release are based on information available to GoDaddy as of the
date hereof. GoDaddy does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were
made.
© 2020 GoDaddy Inc. All Rights Reserved.
Source: GoDaddy Inc.
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SOURCE GoDaddy Inc.