Risk Factors Update Summary

• The acquisition of VMware by Broadcom in November 2023 may create new market opportunities. This change might result in increased market share as VMware customers seek alternatives.
• Our business and growth depend on our ability to attract and retain qualified personnel, which is critical for success.
• GAAP net losses increased from $254.6 million in 2023 to $124.8 million in 2024. This change indicates ongoing financial challenges that could affect investor confidence.
• We may face increased costs and operational challenges due to evolving ESG regulations and standards, impacting our financial condition.
• We have outstanding $750 million aggregate principal amount of 2026 Notes and $575 million of 2027 Notes, impacting cash flow management.
• Sales through top distributors rose from 32% to 47% of total revenue for fiscal 2024. This change highlights a growing reliance on key distribution channels for revenue generation.
• The U.S. Department of Treasury has proposed a minimum 15% tax rate on multinational enterprises, potentially affecting our operating results.
• Our transition to a subscription-based business model may lead to increased scrutiny from analysts and investors regarding performance expectations.
• Our reliance on IT systems for communication may expose us to disruptions from natural disasters or man-made problems, adversely affecting operations.
• The company may face increased cybersecurity risks due to evolving threats and AI integration. This change could lead to significant liabilities and operational disruptions if breaches occur.
• We are subject to various legal proceedings, including securities class action litigation, which could result in substantial costs and harm our reputation.
• The transition to a subscription-based model has resulted in revenue impacts compared to historical results. This change may complicate financial forecasting and investor expectations.