Risk Factors Update Summary

• Significant increase in user base from 28.7% to 30.5% and 33.3% of revenue.
• Growing user base putting pressure on support organization, requiring additional resources to meet global needs.
• Revenue impact due to strengthening of U.S. dollar: Revenue lower than anticipated due to currency changes.
• Increased revenue growth fluctuation, with revenue growth rate stabilizing but may decline.
• Increased focus on security measures and vulnerabilities, with challenges in detecting and remediating.
• Increased reliance on resellers, with challenges in maintaining relationships and expanding reseller network.
• Increased fines under California Consumer Privacy Act: Fines of up to $7,500 per violation.
• Restructuring actions to reduce costs and advance profitable growth, incurring additional charges.
• Expansion into new markets may be hindered by geopolitical tensions, impacting operations.
• Potential impact of OECD's Base Erosion and Profits Shifting project: 15% minimum effective tax rate for multinational companies.
• Potential impact of proposed Artificial Intelligence Act in Europe: Could impose onerous obligations on AI-related systems.
• Increased scrutiny on data protection laws for minors: Various laws impose obligations on companies processing minors' data.
• Potential consequences of failure to comply with privacy laws: Government enforcement actions, litigation, fines, and penalties.
• Impact of changing consumer preferences on data sharing: Increased resistance to data collection for targeted advertising.