Risk Factors Update Summary

• Fluctuation in results of operations described as "fluctuation in our results of operations" was further detailed to include a decrease in IAP Revenue by approximately 25%.
• Increased reliance on third parties for various aspects of business operations, including demand-side platforms, advertisers, and publishers, may lead to reputational risks and operational disruptions.
• The number of mobile games contributing to revenue decreased from over 200 to 15, with three games representing about 15% of revenue.
• Expansion of AI technologies in products may result in regulatory scrutiny, litigation, privacy risks, and intellectual property challenges.
• The success of three games, Project Makeover, Matchington Mansion, and Wordscapes, collectively represented approximately 20% of revenue, down to 15%.
• Changes in tax laws, including proposed legislation impacting research expenditures and global minimum tax adoption, could affect tax obligations significantly.
• The number of mobile games in the Apps portfolio decreased from over 350 to 200.
• Authorization of significant increases in the stock repurchase program, totaling $2.003 billion, may impact financial results.
• The reduction in the number of mobile games in the Apps portfolio was due to a strategic review and actions taken.
• Ongoing international restructuring and tax challenges could potentially affect expected tax savings and increase effective tax rates.
• The decrease in the number of mobile games in the Apps portfolio may impact future success and revenue generation.
• Potential legal challenges and regulatory uncertainties related to data privacy laws in various jurisdictions may impact business operations and compliance efforts.
• The company's IAP Revenue decreased primarily due to changes in the economy and user behavior.
• Use of open-source software incorporating AI-generated code poses risks of hallucinatory behavior and could impact business operations.