10-Q 1 gddy-20230930.htm 10-Q gddy-20230930
000160971112/312023Q3FALSE
Costs and operating expenses include equity-based compensation expense as follows:
Three months ended
 September 30,
Nine months ended
 September 30,
2023202220232022
Cost of revenue$0.3 $0.4 $1.1 $1.1 
Technology and development42.2 34.4 123.2 102.4 
Marketing and advertising7.1 7.2 21.0 21.7 
Customer care6.1 4.9 18.0 14.6 
General and administrative20.5 18.5 62.0 53.5 
Restructuring and other$— $— $2.3 $— 
Total equity-based compensation expense$76.2 $65.4 $227.6 $193.3 
Components of OCI are net of the tax effects reflected below:
Unrealized swap gain (loss), net— — — (2.5)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-36904
GoDaddy Inc.
(Exact name of registrant as specified in its charter)
Delaware46-5769934
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
2155 E. GoDaddy Way
Tempe, Arizona 85284
(Address of principal executive offices, including zip code)
(480) 505-8800
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.001 par value per shareGDDYNYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    ☒    No    ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                    Yes    ☒    No    ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                         ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    ☐    No    ☒
As of October 27, 2023, there were 140,824,771 shares of GoDaddy Inc.'s Class A common stock, $0.001 par value per share, outstanding and 305,740 shares of GoDaddy Inc.'s Class B common stock, $0.001 par value per share, outstanding.



GoDaddy Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended September 30, 2023

TABLE OF CONTENTS

i

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this Quarterly Report), including the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors," contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), involving substantial risks and uncertainties. The words "believe," "may," "will," "potentially," "plan," "could," "should," "predict," "ongoing," "estimate," "continue," "anticipate," "intend," "project," "expect," "seek," or the negative of these words, or terms or similar expressions conveying uncertainty of future events or outcomes, or that concern our expectations, strategy, plans or intentions, are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or expected. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements discussed under the heading "Risk Factors" and in our publicly available filings and press releases. These statements include, among other things, those regarding:
•our ability to continue to add new customers and increase sales to our existing customers;
•our ability to develop new solutions and bring them to market in a timely manner;
•our ability to timely and effectively scale and adapt our existing solutions;
•our dependence on establishing and maintaining a strong brand;
•the occurrence of service interruptions and security or privacy breaches and related remediation efforts and fines;
•system failures or capacity constraints;
•the rate of growth of, and anticipated trends and challenges in, our business and in the market for our products;
•our future financial performance, including our expectations regarding our revenue, cost of revenue, operating expenses, including changes in technology and development, marketing and advertising, general and administrative and customer care expenses, and our ability to achieve and maintain future profitability;
•our ability to continue to efficiently acquire customers, maintain our high customer retention rates and maintain the level of our customers' lifetime spend;
•our ability to provide high quality customer care;
•the effects of increased competition in our markets and our ability to compete effectively;
•our ability to grow internationally;
•the impact of fluctuations in foreign currency exchange rates on our business and our ability to effectively manage the exposure to such fluctuations;
•our ability to effectively manage our growth and associated investments, including our migration of the vast majority of our applications and services to the public cloud;
•our ability to integrate acquisitions or our entry into new lines of business and our ability to achieve expected results from our integrations and new lines of business;
•our ability to maintain our relationships with our partners;
•adverse consequences of our substantial level of indebtedness and our ability to repay our debt;
•our ability to maintain, protect and enhance our intellectual property;
•our ability to maintain or improve our market share;
•sufficiency of cash and cash equivalents to meet our needs for at least the next 12 months;
•beliefs and objectives for future operations;
•our ability to stay in compliance with laws and regulations currently applicable to, or which may become applicable to, our business both in the United States (U.S.) and internationally;
•economic and industry trends or trend analysis;
•our ability to attract and retain qualified employees and key personnel;
ii

NOTE ABOUT FORWARD-LOOKING STATEMENTS (continued)

•anticipated income tax rates, tax estimates and tax standards;
•interest rate changes;
•the future trading prices of our Class A common stock;
•our expectations regarding the outcome of any regulatory investigation or litigation;
•the amount and timing of future repurchases of our Class A common stock under any share repurchase program;
•the potential impact of shareholder activism on our business and operations;
•our expectations regarding the effectiveness of our 2023 restructuring efforts;
as well as other statements regarding our future operations, financial condition, growth prospects and business strategies.
We operate in very competitive and rapidly-changing environments, and new risks emerge from time-to-time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Quarterly Report may not occur, and actual results could differ materially and adversely from those implied in our forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. Although we believe the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this Quarterly Report to conform such statements to actual results or to changes in our expectations, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Unless expressly indicated or the context suggests otherwise, references to "GoDaddy," "Company," "company," "we," "us" and "our" refer to GoDaddy Inc. and its consolidated subsidiaries, including Desert Newco, LLC and its subsidiaries (Desert Newco).
iii
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
GoDaddy Inc.
Consolidated Balance Sheets (unaudited)
(In millions, except shares in thousands and per share amounts)
September 30,December 31,
 20232022
Assets
Current assets:
Cash and cash equivalents$329.2 $774.0 
Accounts and other receivables75.3 60.1 
Prepaid domain name registry fees469.5 435.7 
Prepaid expenses and other current assets325.3 312.8 
Total current assets1,199.3 1,582.6 
Property and equipment, net198.7 225.6 
Operating lease assets67.5 84.1 
Prepaid domain name registry fees, net of current portion210.0 197.1 
Goodwill3,523.4 3,536.9 
Intangible assets, net1,187.5 1,252.2 
Other assets112.8 95.0 
Total assets$6,499.2 $6,973.5 
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable$125.2 $130.9 
Accrued expenses and other current liabilities409.7 356.7 
Deferred revenue2,094.7 1,954.0 
Long-term debt18.0 18.2 
Total current liabilities2,647.6 2,459.8 
Deferred revenue, net of current portion803.2 770.3 
Long-term debt, net of current portion3,802.3 3,812.9 
Operating lease liabilities, net of current portion97.2 116.5 
Other long-term liabilities86.1 87.1 
Deferred tax liabilities36.2 56.2 
Commitments and contingencies
Stockholders' deficit:
Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding
— — 
Class A common stock, $0.001 par value - 1,000,000 shares authorized; 141,989 and 153,830 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
0.1 0.2 
Class B common stock, $0.001 par value - 500,000 shares authorized; 307 and 312 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
— — 
Additional paid-in capital2,170.0 1,912.6 
Accumulated deficit(3,315.3)(2,422.6)
Accumulated other comprehensive income168.9 178.0 
Total stockholders' deficit attributable to GoDaddy Inc.(976.3)(331.8)
Non-controlling interests2.9 2.5 
Total stockholders' deficit(973.4)(329.3)
Total liabilities and stockholders' deficit$6,499.2 $6,973.5 
See accompanying notes to consolidated financial statements.
1
GoDaddy Inc.
Consolidated Statements of Operations (unaudited)
(In millions, except shares in thousands and per share amounts)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Revenue:
Applications & commerce$363.3 $326.0 $1,053.0 $946.3 
Core platform706.4 707.2 2,100.8 2,105.1 
Total revenue1,069.7 1,033.2 3,153.8 3,051.4 
Costs and operating expenses(1):
Cost of revenue (excluding depreciation and amortization)396.9 374.3 1,171.4 1,105.0 
Technology and development201.6 199.5 635.8 587.7 
Marketing and advertising86.4 100.4 268.3 317.4 
Customer care75.7 74.0 230.2 230.6 
General and administrative91.6 101.6 278.4 286.9 
Restructuring and other9.8 5.2 79.6 14.8 
Depreciation and amortization40.6 48.5 132.6 145.1 
Total costs and operating expenses902.6 903.5 2,796.3 2,687.5 
Operating income167.1 129.7 357.5 363.9 
Interest expense(44.0)(35.6)(135.4)(104.1)
Loss on debt extinguishment(1.5)— (1.5)— 
Other income (expense), net6.3 3.1 35.7 0.8 
Income before income taxes127.9 97.2 256.3 260.6 
Benefit (provision) for income taxes3.1 2.8 5.2 (1.5)
Net income 131.0 100.0 261.5 259.1 
Less: net income attributable to non-controlling interests0.3 0.2 0.6 0.5 
Net income attributable to GoDaddy Inc. $130.7 $99.8 $260.9 $258.6 
Net income attributable to GoDaddy Inc. per share of Class A common stock:
Basic$0.90 $0.64 $1.73 $1.61 
Diluted$0.89 $0.63 $1.71 $1.59 
Weighted-average shares of Class A common stock outstanding:
Basic145,484 156,393 150,614 160,150 
Diluted147,291 158,418 153,303 162,665 
___________________________
(1) Costs and operating expenses include equity-based compensation expense as follows:
Cost of revenue$0.3 $0.4 $1.1 $1.1 
Technology and development42.2 34.4 123.2 102.4 
Marketing and advertising7.1 7.2 21.0 21.7 
Customer care6.1 4.9 18.0 14.6 
General and administrative20.5 18.5 62.0 53.5 
Restructuring and other— — 2.3 — 
Total equity-based compensation expense$76.2 $65.4 $227.6 $193.3 
See accompanying notes to consolidated financial statements.
2
GoDaddy Inc.
Consolidated Statements of Comprehensive Income (unaudited)
(In millions)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Net income$131.0 $100.0 $261.5 $259.1 
Foreign exchange forward contracts gain (loss), net8.7 24.2 (7.2)48.0 
Unrealized swap gain (loss), net(1)
7.8 77.7 2.0 216.7 
Change in foreign currency translation adjustment(9.9)5.4 (3.9)(19.9)
Comprehensive income137.6 207.3 252.4 503.9 
Less: comprehensive income attributable to non-controlling interests0.3 0.4 0.6 1.0 
Comprehensive income attributable to GoDaddy Inc.$137.3 $206.9 $251.8 $502.9 
___________________________
(1) Amounts are net of the tax effects reflected below:
Unrealized swap gain (loss), net$— $— $— $(2.5)
See accompanying notes to consolidated financial statements.
3
GoDaddy Inc.
Consolidated Statements of Stockholders' Deficit (unaudited)
(In millions, except shares in thousands)

Class A Common StockClass B Common StockAdditional
Paid-in
Capital		Accumulated DeficitAccumulated Other Comprehensive IncomeNon-
Controlling
Interests		Total
SharesAmountSharesAmount
Balance at December 31, 2022153,830 $0.2 312 $— $1,912.6 $(2,422.6)$178.0 $2.5 $(329.3)
Net income — — — — — 47.3 — 0.1 47.4 
Equity-based compensation, including amounts capitalized— — — — 74.5 — — — 74.5 
Stock option exercises132 — — — 3.2 — — — 3.2 
Repurchases of Class A common stock(1,553)— — — — (113.9)— — (113.9)
Impact of derivatives, net— — — — — — (39.5)— (39.5)
Change in foreign currency translation adjustment— — — — — — 2.1 — 2.1 
Vesting of restricted stock units and other1,705 — (5)— 0.2 (0.1)0.1 (0.2)— 
Balance at March 31, 2023154,114 0.2 307 — 1,990.5 (2,489.3)140.7 2.4 (355.5)
Net income— — — — — 82.9 — 0.2 83.1 
Equity-based compensation, including amounts capitalized— — — — 78.0 — — — 78.0 
Stock option exercises115 — — — 1.6 — — (0.1)1.5 
Repurchases of Class A common stock(1)
(7,019)(0.1)— — — (511.5)— — (511.6)
Issuance of Class A common stock under Employee Stock Purchase Plan (ESPP)299 — — — 18.2 — — — 18.2 
Impact of derivatives, net— — — — — — 17.8 — 17.8 
Change in foreign currency translation adjustment— — — — — — 3.9 — 3.9 
Vesting of restricted stock units and other784 — — — (0.1)0.1 0.1 0.1 
Balance at June 30, 2023148,293 0.1 307 — 2,088.2 (2,917.8)162.4 2.6 (664.5)
___________________________________________
(1)Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $3.8 million.
4
GoDaddy Inc.
Condensed Consolidated Statements of Stockholders' Deficit (unaudited) (continued)
(In millions, except shares in thousands)
Class A Common StockClass B Common StockAdditional
Paid-in
Capital		Accumulated DeficitAccumulated Other Comprehensive IncomeNon-
Controlling
Interests		Total
SharesAmountSharesAmount
Net income— — — — — 130.7 — 0.3 131.0 
Equity-based compensation, including amounts capitalized— — — — 76.7 — — — 76.7 
Stock option exercises59 — — — 4.9 — — — 4.9 
Repurchases of Class A common stock(1)
(7,166)— — — — (528.2)— — (528.2)
Impact of derivatives, net— — — — — — 16.5 — 16.5 
Change in foreign currency translation adjustment— — — — — — (9.9)— (9.9)
Vesting of restricted stock units and other803 — — — 0.2 — (0.1)— 0.1 
Balance at September 30, 2023141,989 $0.1 307 $— $2,170.0 $(3,315.3)$168.9 $2.9 $(973.4)
_________________________________
(1)Includes a 1% excise tax on shares repurchased, net of the fair market value of new share issuances, of $4.6 million.

5
GoDaddy Inc.
Condensed Consolidated Statements of Stockholders' Deficit (unaudited) (continued)
(In millions, except shares in thousands)
Class A Common StockClass B Common StockAdditional
Paid-in
Capital		Accumulated DeficitAccumulated Other Comprehensive Income (Loss)Non-
Controlling
Interests		Total
SharesAmountSharesAmount
Balance at December 31, 2021166,901 $0.2 320 $— $1,594.7 $(1,474.6)$(38.6)$1.5 $83.2 
Net income — — — — — 68.4 — 0.2 68.6 
Equity-based compensation, including amounts capitalized— — — — 62.2 — — — 62.2 
Stock option exercises202 — — — 8.5 — — — 8.5 
Repurchases of Class A common stock(6,532)— — — — (750.2)— — (750.2)
Impact of derivatives, net— — — — — — 93.1 — 93.1 
Change in foreign currency translation adjustment— — — — — — (34.3)— (34.3)
Vesting of restricted stock units and other1,115 — (8)— 0.2 — (0.1)0.1 0.2 
Balance at March 31, 2022161,686 0.2 312 — 1,665.6 (2,156.4)20.1 1.8 (468.7)
Net income— — — — — 90.4 — 0.1 90.5 
Equity-based compensation, including amounts capitalized— — — — 67.5 — — — 67.5 
Stock option exercises158 — — — 4.9 — — — 4.9 
Repurchases of Class A common stock(6,059)— — — — (236.3)— — (236.3)
Issuance of Class A common stock under ESPP302 — — — 18.4 — — — 18.4 
Impact of derivatives, net— — — — — — 69.7 — 69.7 
Change in foreign currency translation adjustment— — — — — — 9.0 — 9.0 
Vesting of restricted stock units and other458 — — — (0.1)— (0.2)— (0.3)
Balance at June 30, 2022156,545 0.2 312 — 1,756.3 (2,302.3)98.6 1.9 (445.3)
6
GoDaddy Inc.
Condensed Consolidated Statements of Stockholders' Deficit (unaudited) (continued)
(In millions, except shares in thousands)
Class A Common StockClass B Common StockAdditional
Paid-in
Capital		Accumulated DeficitAccumulated Other Comprehensive Income (Loss)Non-
Controlling
Interests		Total
SharesAmountSharesAmount
Net income — — — — — 99.8 — 0.2 100.0 
Equity-based compensation, including amounts capitalized— — — — 66.1 — — — 66.1 
Stock option exercises138 — — — 5.5 — — (0.1)5.4 
Repurchases of Class A common stock(1,466)— — — — (109.6)— — (109.6)
Impact of derivatives, net— — — — — — 101.9 — 101.9 
Change in foreign currency translation adjustment— — — — — — 5.4 — 5.4 
Vesting of restricted stock units and other487 — — — (0.1)— (0.2)0.4 0.1 
Balance at September 30, 2022155,704 $0.2 312 $— $1,827.8 $(2,312.1)$205.7 $2.4 $(276.0)
See accompanying notes to consolidated financial statements.
7
GoDaddy Inc.
Consolidated Statements of Cash Flows (unaudited)
(In millions)
 
Nine Months Ended
September 30,
 20232022
Operating activities
Net income$261.5 $259.1 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization132.6 145.1 
Equity-based compensation expense227.6 193.3 
(Gain) loss on derivative instruments(9.2)21.7 
Non-cash restructuring charges— 10.4 
Loss on debt extinguishment1.5 — 
Loss on dispositions16.8 — 
Other16.5 34.4 
Changes in operating assets and liabilities, net of amounts acquired:
Prepaid domain name registry fees(47.3)(30.3)
Deferred revenue173.4 132.9 
Other operating assets and liabilities(23.5)5.1 
Net cash provided by operating activities749.9 771.7 
Investing activities
Business acquisitions, net of cash acquired— (72.5)
Purchases of intangible assets(35.4)(0.4)
Net proceeds received from dispositions12.4 — 
Purchases of property and equipment(38.0)(42.6)
Other investing activities(0.4)— 
Net cash used in investing activities(61.4)(115.5)
Financing activities
Proceeds received from:
Issuance of term loans1,759.9 — 
Stock option exercises9.6 18.8 
Issuance of Class A common stock under ESPP18.2 18.4 
Payments made for:
Repurchases of Class A common stock(1,133.2)(1,090.5)
Repayment of term loans(1,780.0)(24.4)
Other financing obligations(7.8)(3.3)
Net cash used in financing activities(1,133.3)(1,081.0)
Effect of exchange rate changes on cash and cash equivalents— (4.7)
Net decrease in cash and cash equivalents(444.8)(429.5)
Cash and cash equivalents, beginning of period774.0 1,255.7 
Cash and cash equivalents, end of period$329.2 $826.2 
Cash paid during the period for:
Interest on long-term debt, including impact of interest rate swaps$128.3 $90.7 
Income taxes, net of refunds received$7.2 $9.3 
Amounts included in the measurement of operating lease liabilities$34.0 $39.4 
Supplemental disclosure of non-cash transactions
Operating lease assets obtained in exchange for operating lease liabilities$8.4 $10.3 
Accrued purchases of property and equipment at period end$1.0 $5.5 
Share repurchases not yet settled$17.9 $5.6 
See accompanying notes to consolidated financial statements.
8
GoDaddy Inc.
Notes to Consolidated Financial Statements (unaudited)
(In millions, except shares in thousands and per share amounts)

1.    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 other members. The calculation of non-controlling interests excludes any net income attributable directly to GoDaddy Inc. As of September 30, 2023, we owned approximately 99.8% 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, 2023.
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, 2022 (the 2022 Form 10-K).
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.
9
Segments
We report our operating results through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core), as further discussed in Note 16.
2.    Summary of Significant Accounting Policies
Property and Equipment
Property and equipment, net by geography was as follows:
 September 30, 2023December 31, 2022
U.S.$155.9 $167.5 
France22.5 28.8 
All other international20.3 29.3 
$198.7 $225.6 
No other international country represented more than 10% of property and equipment, net in any period presented.
Equity Investments
We hold investments in privately held equity securities, which are recorded in other assets, and were as follows:
 Equity Investments
Equity investments as of December 31, 2022$40.5 
Fair market value adjustments(1)
14.4 
Impairment losses(1)
(2.3)
Additional investments0.5 
Equity investments as of September 30, 2023$53.1 
_________________________________
(1)Fair market value adjustments and impairment losses are recorded in other income (expense), net.
Revenue Recognition
Disaggregated Revenue
Revenue by major product type was as follows:
 Three Months Ended September 30,
Nine Months Ended September 30,
 2023202220232022
Applications and commerce$363.3 $326.0 $1,053.0 $946.3 
Core platform: domains508.2 494.0 1,493.0 1,462.9 
Core platform: other198.2 213.2 607.8 642.2 
$1,069.7 $1,033.2 $3,153.8 $3,051.4 
No single customer represented over 10% of our total revenue for any period presented.
10
Revenue by geography is based on the customer's billing address and was as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
U.S.$724.2 $700.6 $2,126.6 $2,058.2 
International345.5 332.6 1,027.2 993.2 
$1,069.7 $1,033.2 $3,153.8 $3,051.4 
No international country represented more than 10% of total revenue in any period presented.
See Note 7 for information regarding our deferred revenue.
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 $194.4 million and $180.3 million for the three months ended September 30, 2023 and 2022, respectively and was $571.6 million and $532.0 million for the nine months ended September 30, 2023 and 2022, respectively.
Restructuring and Other
Restructuring and other primarily represents: (i) charges related to the restructuring activities implemented in the first and third quarters of 2023, which were undertaken to reduce future operating expenses and improve cash flows through a combination of reductions in force and the sale of certain assets and liabilities of our hosting business within our Core segment; and (ii) a charge incurred in the second quarter of 2023 related to the termination of a revenue sharing agreement. See Note 13 for further discussion.
Fair Value Measurements
The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis:
September 30, 2023
Level 1Level 2Level 3Total
Assets:
 Cash and cash equivalents:
Time deposits$71.0 — — $71.0 
 Derivative assets— 219.1 — 219.1 
Total assets$71.0 $219.1 $— $290.1 
Liabilities:
 Derivative liabilities$— $1.2 $— $1.2 
Total liabilities$— $1.2 $— $1.2 
11
December 31, 2022
Level 1Level 2Level 3Total
Assets:
 Cash and cash equivalents:
Commercial paper$— $120.0 $— $120.0 
Time deposits347.3 — — 347.3 
 Derivative assets— 218.5 — 218.5 
Total assets$347.3 $338.5 $— $685.8 
Liabilities:
 Derivative liabilities $— $4.9 $— $4.9 
Total liabilities$— $4.9 $— $4.9 
We have no other material assets or liabilities measured at fair value on a recurring basis.
3.    Goodwill and Intangible Assets
The following table summarizes changes in our goodwill balance by segment:
A&CCoreTotal
Balance at December 31, 2022$1,497.0 $2,039.9 $3,536.9 
Impact of foreign currency translation(2.6)(3.7)(6.3)
Less: goodwill related to disposition of businesses— (3.3)(3.3)
Other adjustments— (3.9)(3.9)
Balance at September 30, 2023$1,494.4 $2,029.0 $3,523.4 

Intangible assets, net are summarized as follows:
September 30, 2023
Gross 
Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0 n/a$445.0 
Domain portfolio240.8 n/a240.8 
Contractual-based assets292.7 n/a292.7 
Finite-lived intangible assets:
Customer-related446.4 $(326.3)120.1 
Developed technology243.4 (196.7)46.7 
Trade names and other102.5 (60.3)42.2 
$1,770.8 $(583.3)$