Risk Factors Update Summary

• Compliance with evolving regulations related to AI and machine learning may impose additional costs and liabilities on us.
• The risks and uncertainties described are not the only ones we face; additional risks may adversely affect our business.
• New privacy laws, including the California Privacy Rights Act, may impose additional compliance burdens. This change might result in increased operational costs.
• Subscription and support revenue was 56% and 48% of total revenue for fiscal years 2024 and 2023, respectively.
• We have invested and intend to increase investments in research and development and cloud operations to remain competitive.
• The anticipated challenge to the DPF Adequacy Decision could complicate international data transfers, increasing legal risks.
• Our subscription and support revenue gross margin was 63% and 51% for fiscal years 2024 and 2023, respectively.
• Compliance costs related to evolving privacy regulations may significantly impact our financial condition and operational efficiency.
• Uncertainty remains over liquidity concerns in the broader financial services industry, potentially affecting our business operations.
• Our transition to cloud-based services may face challenges due to evolving data protection regulations, impacting customer adoption.