Risk Factors Update Summary

• Strong subscription revenue growth in recent periods: Subscription revenues increased from $593.8 million in 2020 to $747.7 million in 2021, representing 96% and 90% of total software revenue, respectively.
• Added obligations related to data breach notification, regulatory investigations, and CCPA consequences.
• Unexpected turnover in sales force personnel: Sales and marketing expenses increased from $451.8 million in 2020 to $496.8 million in 2021.
• Increased sales and marketing expenses: Sales and marketing expenses increased from $318.8 million in 2020 to $335.1 million in 2021.
• Increased focus on privacy, data protection, and information security laws and regulations globally.
• Increased foreign currency exchange volatility: Foreign currency exchange rates negatively impacted revenue by approximately $2.6 million in 2022 compared to 2023.
• Reduction in workforce and associated costs: Non-recurring charges of approximately $25 million to $35 million were estimated for the January Plan, primarily related to employee transition and severance payments.
• Enhanced disclosure on the impact of AI technologies, including legal and regulatory challenges.
• Decline in subscription revenue growth rates: Year-over-year growth rates for subscription revenue decreased from 26% in 2020 to 15% in 2021.
• Impact of global minimum corporate tax: The OECD introduced a global minimum corporate tax of 15%, referred to as Pillar 2, impacting tax uncertainty and provision for income taxes.
• Expanded risks related to international operations, including geopolitical unrest and regulatory changes.
• Detailed the potential impact of fluctuations in foreign currency exchange rates on revenue.
• Added risks related to indebtedness, including total outstanding debt and cash flow obligations.
• Highlighted risks associated with the sale of shares by affiliates and the potential impact on stock price.