Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
|
New words:
absence, affirmative, allegedly, alternative, Anjali, antitrust, appraisal, Bajaj, captioned, consummate, consummated, consummation, convene, declaratory, degree, Denecour, Devaluation, DGCL, direct, direction, Euro, Evan, false, fee, field, forgone, fully, Hea, indirect, injunction, injunctive, insufficient, iv, Ivanti, Jessica, Joshi, Kenneth, Klein, mailed, merge, merger, Nahm, Nash, Oahu, Oliver, pendency, permanent, precluding, preliminarily, purportedly, Quentin, reclassification, reclassify, rescissory, restraining, restraint, Rishi, Rupee, screening, scrutiny, Simon, Southern, spiked, split, splitting, statutory, surviving, Tae, thereto, Tolonen, treasury, unanimously, validly, waiting, waived, waiver, Watson, York
Removed:
generating, slightly
Financial report summary
?Risks
- We operate in an industry that is rapidly evolving, and we may be unsuccessful in response to these changes.
- We have had net losses each year since our inception and may not achieve or maintain profitability in the future.
- Our operating results may fluctuate significantly, which makes our future results difficult to predict and could cause our operating results to fall below expectations or our guidance.
- If our customers do not place significant follow-on orders to deploy our solutions widely throughout their companies, or if they do not renew with us or if they do not purchase additional solutions, our future revenue and operating results will be harmed.
- We are in a highly competitive market, and competitive pressures from existing and new companies may harm our business, revenues, growth rates and market share. In addition, there has been consolidation in our market, and a number of our current or potential competitors have longer operating histories, greater brand recognition, larger customer bases and significantly greater resources than we do.
- We compete in rapidly evolving markets and must develop new solutions and enhancements to our existing solutions. If we fail to predict and respond rapidly to emerging technological trends and our customers’ changing needs, we may not be able to remain competitive. In addition, we may not generate positive returns on our research and development investments, which may harm our operating results.
- An increasing portion of our sales has been generated from subscription licenses, which involves certain risks.
- Changes in features and functionality by operating system providers and mobile device manufacturers could cause us to make short-term changes in engineering focus or product development or otherwise impair our product development efforts or strategy, increase our costs, and harm our business.
- We have experienced substantial turnover, and the loss of key personnel or an inability to attract, retain and motivate qualified personnel may impair our ability to expand our business.
- A failure of our product strategy could harm our business.
- If we are not able to scale our business and manage our expenses, our operating results may suffer.
- A security breach of our cloud service infrastructure or a disruption of our cloud service availability for any reason could result in liabilities, lost business and reputational harm.
- Defects in our solutions could harm our business, including as a result of customer dissatisfaction, data breaches or other disruption, and subject us to substantial liability.
- Security breaches and other disruptions of our information systems could significantly impair our operations, compromise our ability to conduct our business and deliver our products and services, and result in significant data losses, theft of our intellectual property, significant liability, damage to our reputation, and loss of current and future business.
- Real or perceived errors, failures or bugs in our software could adversely affect our business, results of operations, financial condition, and growth prospects.
- Disruptions of the third-party data centers that host our cloud service could result in delays or outages of our cloud service and harm our business.
- The prices of our solutions may decrease or we may change our licensing and subscription programs, renewal programs or bundling arrangements, which may reduce our revenue and adversely impact our financial results.
- Our ability to sell our solutions is highly dependent on the quality of our support, which is made complex by the requirements of mobile IT. Our failure to deliver high quality support would have a material adverse effect on our sales and results of operations.
- We rely substantially on channel partners for the sale and distribution of our solutions and, in some instances, for the support of our solutions. A loss of certain channel partners, a decrease in revenues from certain of these channel partners or any failure in our channel strategy could adversely affect our business.
- Our sales cycles for large enterprises are often long, unpredictable and expensive. As a result, our sales and revenue are difficult to predict and may vary substantially from period to period, which may cause our operating results to fluctuate significantly.
- We seek to sell our solutions to large enterprises. Sales to and support of these types of enterprises involve risks that could harm our business, financial position and results of operations.
- Our failure to comply with privacy and data protection laws could have a material adverse effect on our business.
- The failure of third parties to comply with privacy and data security laws could harm our business.
- We may acquire other businesses which could require significant management attention, disrupt our business, dilute stockholder value and adversely affect our operating results.
- We have indemnity obligations under our contracts with our customers and channel partners, which could have a material adverse effect on our business.
- A portion of our revenues are generated by sales to heavily regulated organizations and governmental entities, which are subject to a number of challenges and risks.
- If our solutions do not interoperate with our customers’ IT infrastructures, sales of our solutions could be negatively affected.
- Although technical problems experienced by users may not be caused by our solutions, our business and reputation may be harmed if users perceive our solutions as the cause of a device failure.
- Our customers may exceed their licensed device or user count, and it is sometimes difficult to collect payments as a result of channel logistics, which could harm our business, financial position and results of operations.
- If the market for our solutions shrinks or does not continue to develop as we expect, our growth prospects may be harmed.
- Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, we cannot assure you our business will grow at similar rates, if at all.
- Seasonality may cause fluctuations in our revenue.
- Economic or political uncertainties or downturns could materially adversely affect our business.
- The UK’s exit from the EU may have a negative effect on global economic conditions, financial markets and our business.
- Our business is subject to the risks of earthquakes, fire, floods and other natural catastrophic events, and to interruption by manmade problems such as network security breaches, computer viruses or terrorism.
- If we are unable to maintain effective internal controls over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may be negatively affected.
- If our estimates relating to our critical accounting policies are based on assumptions or judgments that change or prove to be incorrect, our operating results could fall below expectations of financial analysts and investors, resulting in a decline in our stock price.
- Impairment of goodwill and other intangible assets would result in a decrease in earnings.
- We have been sued by third parties for alleged infringement of their proprietary rights and may be sued in the future.
- If we are unable to protect our intellectual property rights, our competitive position could be harmed or we could be required to incur significant expenses to enforce our rights.
- We rely on third party software and intellectual property licenses and if we are unable to obtain or renew software or licenses on commercially reasonable terms, it could harm our business.
- Our use of open source software could impose limitations on our ability to commercialize our solutions.
- Our international operations expose us to additional business risks, and failure to manage these risks may adversely affect our international revenue.
- We rely on channel partners to sell our solutions in international markets, the loss of which could materially reduce our revenue.
- Failure to comply with the U.S. Foreign Corrupt Practices Act and similar laws associated with our activities outside the United States could subject us to penalties and other adverse consequences.
- We are subject to export controls, and our customers and channel partners are subject to import controls.
- Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
- The price of our common stock has been and may continue to be weak, and you could lose all or part of your investment.
- If financial or industry analysts do not publish research or reports about our business, or if they issue an adverse or misleading opinion regarding our stock, our stock price and trading volume could decline.
- Insiders continue to have substantial control over our company, which could limit your ability to influence the outcome of key transactions, including a change of control.
- We have in the past failed, and may in the future fail, to meet our publicly announced guidance or other expectations about our business and future operating results, which has in the past caused, and would in the future cause, our stock price to decline.
- Our future capital needs are uncertain, and we may need to raise additional funds in the future. If we require additional funds in the future, those funds may not be available on acceptable terms, or at all.
- Sales of substantial amounts of our common stock in the public markets, or the perception that these sales might occur, could reduce the price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us.
- Certain provisions in our charter documents and Delaware law could limit attempts by our stockholders to replace or remove our board of directors or current management and limit the market price of our common stock.
Management Discussion
- Cloud services include sales of cloud-based solutions that allow customers to use hosted software over a contract period without taking possession of our software and are typically provided on a subscription or usage basis. We recognize revenue from cloud-based subscriptions ratably over the term of the subscriptions or, if usage based, as the usage is billed.
- License revenue consists primarily of revenue from on-premises perpetual licenses and the license portion of on-premise subscriptions. From time to time, we enter into multiple element arrangements with customers in which a customer purchases our software with an appliance. Appliance revenue is also included in license revenue and constituted less than 1% of total revenue for the three and nine months ended September 30, 2020 and 2019.