Risk Factors Update Summary

• U. K. Bribery Act and similar statutory requirements added, impacting compliance controls and business activities.
• The company incurred a net loss in the year ended January 31, 2024, and expects to continue incurring significant operating expenses in the future.
• Increased focus on AI risks, including generative AI, may lead to legal liabilities and reputational harm.
• U. S. significantly increased export controls on AI and advanced computing products in 2022.
• Investments in platform development, including new functionalities and inside sales team growth, may prove more expensive than anticipated.
• Growth in customers with ARR over $1 million: 2023 - 229 customers, 2024 - 288 customers.
• Potential future restrictions on Chinese companies could adversely affect financial performance and reputation.
• Revenue growth may slow or decline due to various factors, including competition, customer retention, and economic conditions.
• Potential adverse effects from real or perceived errors, failures, or bugs in platform and products.
• The company's revenue for fiscal year 2024 was $1,308.1 million, representing a growth rate of 24% from the previous year's revenue of $1,058.6 million.
• Reliance on third-party cloud providers for hosting may pose risks to business operations and financials.
• Financial sanctions and Trade Controls imposed on Russia, Ukraine, and Belarus could impact business.
• Expansion of workforce restructuring actions completed in Q2 2024.
• Intellectual property disputes may subject the company to significant liability and increased costs.
• The company's ARR at January 31, 2024, was $1,463.7 million, showing a growth rate of 30% from the previous year's ARR of $1,203.8 million.
• Acquisition of Cloud Elements Inc. in March 2021 may impact financial and strategic outcomes.
• Changes in tax laws or rulings could affect financial condition and results of operations.
• Failure to introduce and release new features successfully, especially in AI technologies, could adversely affect business operations.
• Increased regulatory environment around AI, including the EU AI Act, may require significant resources for compliance.
• Natural disasters, public health crises, or catastrophic events may significantly hinder business operations.
• The company's success depends on maintaining and expanding distribution channels to generate revenue effectively.