Risk Factors Update Summary

• Reorganized business into two units, impacting financials, with significant expenditures and management demands.
• Adjust pricing models periodically. This may result in reduced subscription prices for individual customers.
• Changes in accounting standards may cause adverse financial reporting fluctuations and affect operations.
• Changes in tax laws could increase compliance costs and affect financial position and results.
• Expanded international operations expose to regulatory, economic, and political risks. Revenue derived internationally increased to 34%.
• Impairment of intangible assets totaled $285.7 million in 2023, impacting financial results.
• Shifted to a two-segment reporting structure, modifying business units and segments, requiring substantial resources.
• Reduced workforce by approximately 5%, 11%, and an additional 17% in September 2022 and February 2023.
• Increased compliance costs due to new data protection laws globally, including GDPR, UK GDPR, and Swiss Federal Act.
• Net operating loss carryforwards totaled $3.4 billion for U.S. federal taxes as of December 31, 2023.
• Potential tax liabilities and challenges in determining provision for income taxes may impact financials.
• Authorization of a $1.0 billion share repurchase program may impact stock price and liquidity.
• Selling of Internet of Things assets and ValueFirst business may lead to restructuring and ongoing obligations.
• Potential limitations on NOLs due to ownership changes under Sections 382 and 383 of the Internal Revenue Code.
• Dollar-Based Net Expansion Rate declined, impacting revenue, with potential future declines if customers do not increase usage.
• Experienced declines in usage of Communications products by customers in negatively impacted industries.
• Potential negative impact on financial results due to breaches in networks or systems, leading to loss, corruption, or unavailability of data.
• Changes in workforce may result in unintended consequences, including employee attrition and decreased morale.
• Incorporating AI solutions may negatively impact cost of revenue and gross margins until revenue increases.
• Failure to effectively manage attrition could significantly delay or impact development and strategic objectives.
• Uncertainty in the regulatory landscape, including net neutrality rules, may affect services and user access.