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attention  and  financial  resources.  Our  failure  to  successfully  manage  our  non-U.S.  operations  and  the 
associated risks effectively could limit the future growth of our business.

Increasing  scrutiny  and  changing  expectations  from  global  regulations,  our  investors, 
customers,  and  employees  with  respect  to  ESG  may  result  in  additional  compliance  risk  and 
costs and may impact our reputation and business.

Companies  across  many  industries  are  facing  increasing  scrutiny  related  to  their  environmental,  social,  and 
governance  (“ESG”)  practices  and  reporting,  both  in  the  United  States  and  internationally.  For  example,  new 
U.S.  and  non-U.S.  laws  and  regulations  relating  to  ESG  matters,  including  environmental  sustainability  and 
climate change, are under consideration, being adopted, or being rolled back or revised, which may impact our 
necessary disclosures and increase compliance costs. Further, there is particular focus on concerns relating to 
AI and its impact on society and the environment, including the power-intensive nature of the industry, public 
concern  regarding  high  consumption  of  water,  and  reliance  on  critical  minerals  and  rare  elements  in  the 
manufacture  of  chips.  Some  investors  may  use  these  non-financial  performance  factors  to  guide  their 
investment strategies and, in some cases, may choose not to invest in us if they believe our policies and actions 
relating to ESG are inadequate. 

Our  sustainability  initiatives,  goals,  or  commitments  could  be  difficult  to  achieve  or  costly  to  implement. 
Moreover,  compliance  with  recently  adopted  and  potential  upcoming  ESG  requirements,  including  California 
legislation  that  requires  various  climate-related  disclosures,  the  EU’s  Corporate  Sustainability  Reporting 
Directive and Corporate Sustainability Due Diligence Directive, and the UK’s Streamlined Energy and Carbon 
Reporting framework will require the dedication of significant time and resources. At the same time, anti-ESG 
sentiment has gained momentum across the United States, particularly at the federal level, and the federal and 
certain  state  governments  have  enacted  or  proposed  “anti-ESG”  policies  or  legislation  or  have  issued  related 
legal opinions. Such policies, legislation, initiatives, and scrutiny could expose any sustainability, employment, 
governance, or other corporate practices we adopt to the risk of litigation, antitrust investigations or challenges 
by federal or state authorities, and result in injunctions, penalties, and reputational harm. 

Additionally, if our competitors’ corporate social responsibility performance is perceived to be better than ours, 
potential or current investors may elect to invest with our competitors instead. Our business may face increased 
scrutiny related to these activities and our related disclosures, including from the investment community and 
the local communities in which we operate, and our failure to achieve progress or manage the dynamic, and at 
times conflicting, public sentiment and legal landscape in these areas on a timely basis, or at all, could adversely 
affect our reputation, business, and financial condition. Further, we may experience backlash from customers, 
government  entities,  advocacy  groups,  employees,  or  other  stakeholders  who  disagree  with  our  actual  or 
perceived positions, or with our lack of position on social, environmental, governance, political, public policy, 
economic, geopolitical, or other sensitive issues. Any perceived lack of transparency about these matters could 
adversely affect our brand and reputation, our employees’ engagement and retention, and the willingness of our 
customers  and  partners  to  do  business  with  us.  Both  advocates  and  opponents  to  ESG-related  matters  are 
increasingly resorting to a range of activism forms, including media campaigns and litigation, to advance their 
perspectives.  To  the  extent  we  are  subject  to  such  activism,  it  may  require  us  to  incur  costs  or  otherwise 
adversely affect our business, financial condition, or results of operations.

If  we  or  our  payment  processing  partners  fail  to  manage  the  risks  related  to  our  payment 
processing  activities,  we  could  be  subject  to  fines,  regulatory  scrutiny,  disruptions  to  our 
business, or reputational harm. 

A  portion  of  our  customers  authorize  us  to  bill  their  credit  card  accounts  through  our  third-party  payment 
processing  partners  for  our  paid  subscriptions.  We  have  experienced,  and  expect  to  continue  to  experience, 
fraudulent activity, including the creation of accounts using false identities and the use of stolen or otherwise 
unauthorized  payment  credentials,  which  has  resulted,  and  may  in  the  future  result,  in  losses,  including 
payment processing fees, chargeback fees, and fines and penalties imposed by our payment processors or card 
networks,  for  which  we  may  not  be  reimbursed.  We  maintain  fraud-detection  and  identity-verification 
measures,  but  these  measures  have  not  identified,  and  may  not  identify,  all  such  activity.  Further,  our 
customers provide us with credit card billing information online, and we do not verify the physical identity of 
cardholders  or  conduct  additional  verification  beyond  what  we  collect  online,  which  increases  our  risk  of 
exposure to fraudulent activity. 

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