Risk Factors Update Summary

• The CPRA significantly modified the CCPA, increasing data breach litigation risks.
• Failure to comply with FCPA could result in severe criminal or civil sanctions.
• Losses increased significantly from $247.4 million to $286.7 million in fiscal year 2023.
• Increased expenditures on sales, hiring, and marketing efforts from $657 million to $729 million.
• Changes in currency exchange rates could impact financial performance due to multi-year contracts.
• Anticipated net losses increased from $921.0 million to $1,168.4 million as of January 28, 2023.
• Stock-based compensation expense increased from $384 million to $447 million as of February 3, 2024.
• Potential fines under the proposed EU AI Act could reach up to €30 million or 6% of global annual turnover.
• Compliance with export control laws is crucial to avoid limitations on international sales.
• Operating expenses rose from $729 million to $1,013 million for the fiscal year ended February 3, 2024.
• Revenue from customer accounts outside the United States increased from 11% to 12% in fiscal year 2024.
• Seasonality may cause fluctuations in financial results due to customer procurement cycles.
• Sales of substantial amounts of Class A common stock could affect trading and financial metrics.
• Changes in tax laws may lead to higher effective tax rates, impacting financial condition.