Risk Factors Update Summary

• The credit agreement was refinanced with a new $300.0 million term loan and $50.0 million credit facility.
• Addition of labor union activities risk: A labor union filed an election petition in July 2023, with an ongoing secret-ballot election in November and December 2023. If a significant number of employees unionize, labor costs could increase, negatively affecting business.
• Evolving brand critical for user base expansion. Failure may impair user growth and revenue.
• Identified material weakness in internal controls related to payroll process as of December 31, 2023.
• Remediation efforts for material weakness in internal controls related to payroll process were remediated.
• Total outstanding indebtedness was approximately $340.6 million as of December 31, 2023.
• Increase in international revenue: International revenue represented 41.7% in 2023, up from 37.4% in 2022 and 35.8% in 2021. Fluctuating foreign exchange rates impact international revenue when translated into USD.
• Failure to comply with the European Union's General Data Protection Regulation (GDPR) could result in fines.
• New products may not resonate with users, affecting brand and user retention.
• Failure to comply with the California Privacy Rights Act may result in fines of up to $7,500 per intentional violation.
• Failure to address objectionable content promptly may lead to legal action and regulatory scrutiny.
• Failure to comply with the Digital Services Act could result in fines up to 6% of global turnover.
• The founders may sell their securities, owning approximately 70.8% of common stock as of March 14, 2024.
• Failure to comply with the European Union's General Data Protection Regulation (GDPR) could lead to fines.
• Enhanced data security risks: Increased threats from cyber-attacks, phishing, and data security incidents. Vulnerabilities in information systems may lead to unauthorized access, data breaches, and disruptions, impacting operations and reputation.
• Rapid technological changes impact market share. Failure to adapt may harm financial performance.
• Concerns over generative AI technology: Adoption of generative AI processes and algorithms may lead to operational challenges, legal liabilities, and reputational risks. Challenges in deploying AI technologies could impact operations and competitive risks.
• Ongoing developments in the UK, such as the Data Protection and Digital Information Bill, may impact compliance.
• Introduction of new premium offerings may affect user retention and revenue growth.
• Risks related to intellectual property claims: Expectation of an increase in patent, trademark, and intellectual property claims. Developing non-infringing technology or discontinuing affected practices may require significant effort and expense.
• Investments in unproven products and services may impact financial performance.
• Impact of changes in targeted advertising: Changes in data collection regulations and consumer resistance affect targeted advertising effectiveness. Legislative proposals and laws regulating cookies and tracking technologies may require operational changes.
• Failure to integrate acquisitions successfully may impede benefits realization and weaken operations.
• Material weakness in internal controls: Identification of a material weakness in internal controls affecting the reliability of financial statements. Completion of the Business Combination led to changes in internal controls applicability.