Risk Factors Update Summary

• Fluctuations in inflation rates have significantly impacted financial results. Revenue increased by 4% to $309.2 million in 2023 from $298.5 million in 2022.
• The California Privacy Rights Act (CPRA) took effect on January 1, 2023, significantly modifying the CCPA, increasing statutory damages to $7,500 per intentional violation.
• Billings increased by 2% to $453.4 million in 2023 from $442.5 million in 2022.
• Net losses were $55.7 million in 2020, $128.6 million in 2021, and $465.3 million in 2022.
• The company's accumulated deficit was $1.6 billion as of December 31, 2023, up from $976 million in 2022.
• Several states, including Virginia, Colorado, Utah, Iowa, Montana, Indiana, Tennessee, Oregon, Texas, Delaware, New Jersey, New Hampshire, and Connecticut, have passed comprehensive privacy laws.
• The company accrued $4.5 million for expected minimum Partner Share commitment shortfalls in 2023.
• The company had 434 full-time employees as of December 31, 2023, down from 501 in 2022.
• The EU GDPR and the UK GDPR impose fines of up to 20 million euros or 4% of annual global revenue.
• Revenue from outside the U.S. decreased to 7.8% in 2023 from 8% in 2022.
• The company had sixteen issued patents relating to software, an increase from eight patents previously.
• The market price of the company's common stock ranged from an intraday low of $32 to an intraday high of $161.47 through March 13, 2024.
• The company's facilities are centralized in Atlanta, GA; Menlo Park, CA; and New York, NY, which could be harmed by natural disasters.
• The company does not intend to engage in a broad range of business combinations with interested stockholders for three years.