Risk Factors Update Summary

• The company incurred net losses of $57.7 million, $202.3 million, and $390.3 million for fiscal 2024, 2023, and 2022, respectively. This trend may continue to impact investor confidence.
• The accumulated deficit increased to $1,148 million as of July 31, 2024, indicating ongoing financial challenges. This could affect future funding and operational strategies.
• The California Consumer Privacy Act, or CCPA, was modified by the California Privacy Rights Act, effective January 2023. This change may increase compliance costs significantly.
• The company faces intense competition as new entrants and established firms increase their market presence, potentially impacting market share and profitability.
• The European Union's General Data Protection Regulation imposes fines of up to €20 million or 4% of annual global revenue for noncompliance, potentially impacting financial results.
• The ongoing geopolitical tensions, particularly between Russia and Ukraine, have heightened cybersecurity threats, which could adversely affect the company's operations and reputation.
• Nearly 140 countries are implementing Pillar Two legislation, imposing a minimum tax rate of 15%, affecting our tax obligations starting in fiscal 2025.
• The company may experience difficulties in hiring skilled workers due to a hyper-competitive wage environment, impacting its ability to innovate and grow.
• As of July 31, 2024, we had net operating loss carryforwards of approximately $1,497 million, which may limit future taxable income.
• The current conflict between Russia and Ukraine has led to increased export controls and sanctions, potentially impairing our ability to operate in affected regions.