Risk Factors Update Summary

• Increased accumulated deficit from $815.4 million to $1.115 billion as of December 31, 2023.
• Transition to remote-first work environment increases cybersecurity risks due to remote employees, potentially harming operations.
• Any cybersecurity incident or adverse impact to the availability, integrity, or confidentiality of our platform or information could harm our business and results of operations.
• Increased compliance costs and operational changes due to the EU Digital Services Act (DSA) taking effect from February 17, 2024.
• Net losses increased from $26.5 million to $55.4 million for the years ended December 31, 2023 and 2022.
• Intellectual property risks arise if employees create IP in jurisdictions with unenforced laws.
• Incorporating generative AI into products presents operational and reputational risks due to accuracy issues and unintended biases.
• Collaboration with Congress for live event ticketing reform to improve marketplace integrity and consumer trust.
• Operating internationally poses risks including currency exchange, political instability, and compliance with varying laws.
• Challenges in maintaining compliance with country and state requirements due to remote work policy.
• Potential fines of up to 6% of total annual worldwide turnover for non-compliance with the DSA.
• Advance payouts outstanding increased from $139.1 million to $193.1 million as of December 31, 2023.
• Non-recoupable payments increased from $1.7 million to $1.9 million as of December 31, 2023.
• Increased compliance costs and potential fines for failure to comply with anti-money laundering regulations.
• Potential impact on revenue, costs, legal liability, and brand due to changes in payment processing industry regulations.
• Net revenue decreased from $260.9 million to $326.1 million for the years ended December 31, 2022 and 2023.
• Increased operating costs and reduced margins due to potential fee increases by payment card networks.
• Creator advances, net, increased from $0.7 million to $2.8 million as of December 31, 2023.
• Risks associated with failure to comply with Payment Card Industry Data Security Standard (PCI-DSS) and payment card association rules.
• Relocating roles from Argentina and the United States to Spain and India may negatively impact employee morale and productivity.