Risk Factors Update Summary

• Restructuring plans involving a 6% reduction in the workforce aim to enhance financial and operational efficiency.
• Base Rent for the Reduced Premises increases annually from $7,543,692.00 in 2023 to $9,007,562.76 in 2029.
• Sales of subscriptions to the eSignature product declined from $2.5 billion in 2023 to $2.8 billion in 2024.
• Net loss decreased from $97.454 million to $73.980 million. This change indicates improved financial performance.
• Security incidents, although not materially impacting operations, pose risks to data protection and operational integrity.
• Unrecognized compensation cost related to RSUs increased from $1.0 billion to $2.0 billion.
• Increase in outstanding RSUs from 17 to 26 and outstanding options decreased from 2 to 1.
• Sales and marketing expenses decreased by $74.8 million. This change may impact customer acquisition and retention.
• Implemented ERP system in 2023 may disrupt business. This change could impact operational efficiency.
• The credit facility was amended in May 2023, potentially increasing by an additional amount.
• Extension of Lease Term for the Reduced Premises to the Extended Lease Expiration Date. The Renewal Period is now five (5) years.
• Sales and marketing expenses increased from $20.7 million in 2023 to $24.8 million in 2024.
• Cash used in financing activities decreased from $946 million to $98 million, a significant $848 million reduction.
• Fluctuations in demand for subscriptions resulted in declines, influenced by changing customer patterns and economic conditions.
• Addition of 14STR1 to the Premises with 93,132 rentable square feet and Tenant's Share of Direct Expenses at 23.9309%.
• Increased stock repurchase program by $300 million. This change may affect cash flow and shareholder value.
• Increased volatility in interest rates and debt markets poses risks to financial stability and revenue growth.
• Research and development expenses increased by $58 million. This change signifies investment in innovation.
• Leadership transitions, including resignations and appointments, introduce inherent risks and uncertainties.
• Common stock reserved for RSUs increased from 61,290 to 74,014.
• Long-term investments decreased from $186 million to $122 million, a significant $64 million reduction.
• Stock-based compensation plans changed from granting to grant performance stock awards to executives annually.
• Deferred contract acquisition costs rose from $169.3 million to $179.9 million.
• Cash provided by operating activities increased from $506 million to $979 million, a substantial $473 million rise.
• Expansion of product offerings and solutions is crucial for revenue growth and operating objectives.
• Amortization of deferred contract acquisition costs increased from $155 million to $164 million.
• Remaining shares available for future issuance under the ESPP increased from 7,993 to 10,628.
• Net deferred tax liabilities increased from $8 million to $14 million.
• Interest income and other income increased from $4.539 million to $68.889 million. This change indicates improved investment returns.
• Total revenue increased from $2.515 billion to $2.761 billion. This change reflects revenue growth.
• Cash provided by investing activities increased to $44.6 million, driven by $137.6 million net maturities of marketable securities.
• The outstanding principal of the 2023 Notes and 2024 Notes was fully settled during the year.
• Charges related to the 2024 Restructuring Plan estimated to be between $25 million to $35 million.
• The number of shares repurchased decreased from 1.1 million to 0.1 million, a reduction of 1 million shares.
• Total contractual interest expense decreased from $4.6 million to $4.7 million.
• Future lease payments decreased from $173 million to $143 million.
• Weighted average remaining lease terms decreased from 8.5 years to 8.1 years.
• The fair value of available-for-sale securities decreased from $638.8 million to $424.2 million.