Risk Factors Update Summary

• Net losses increased from $332.1 million to $528.2 million for the year ended December 31, 2022.
• Increased risks related to Tax Receivable Agreement provisions may negatively impact liquidity.
• Increased operational complexity around payment activity between us, homeowners, and guests. This could result in $5.1 million, $2.8 million, and $3.1 million losses from claims.
• Evolving cybersecurity risks threaten confidentiality, integrity, and availability of IT Systems.
• Failure to properly manage funds held on behalf of customers could adversely affect business. Holding $23.4 million of letters of credit may expose to increased interest rates.
• Operating costs and expenses rose from $1,578.9 million to $1,655.3 million for the year ended December 31, 2022.
• Expansion of data processing activities involving business and individual information.
• Marketing spend increased, including enhanced technology to improve the platform.
• Increased risks related to the use of artificial intelligence in business operations.
• Implementation of new audit requirements for higher-risk data privacy compliance in California.
• Increased or continuing restrictions on travel and costly lawsuits could lead to significant penalties and fines.
• Ceased property management operations in the EU due to GDPR compliance obligations.
• Changes in minimum wage laws could increase personnel costs, impacting financial performance.
• Revenue growth rate decreased by 6% in 2023 and increased by 34% in 2022.
• Potential competitive harm and loss of corporate opportunities due to significant stockholder influence.
• Increased claim frequency and severity could lead to premium rate increases or difficulty securing coverage.
• Revenue for the year ended December 31, 2022, was $1,188.0 million, a decrease from $1,188.0 million in 2021.
• Failure to comply with payment-related fraud challenges could result in reputational harm and penalties.
• Increased competition in attracting and retaining homeowners and guests, impacting revenue growth.
• Changes in tax laws and regulations could adversely affect business operations and financial condition.
• Increased supply of short-term rental units may reduce demand and pressure revenue per available night.