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New words:
grew, hold, Sapho
Removed:
accelerate, adequate, consolidate, coverage, default, dispose, entitled, grace, incur, indexed, limitation, negative, notice, President, previously, proposed, restrict, target, type, Vice
Financial report summary
?Risks
- The Merger, the pendency of the Merger or our failure to complete the Merger could have a material adverse effect on our business, results of operations, financial condition and the price of our common stock.
- While the Merger Agreement is in effect, we are subject to restrictions on our business activities.
- The expansion of cloud-based solutions (as opposed to traditional on-premise delivery of our products) and our efforts to transition our customers from on-premise to the cloud, including the pace of that transition, has and will introduce a number of risks and uncertainties unique to such a shift in delivery, which could adversely affect our business, results of operations and financial condition.
- A significant portion of our revenues historically has come from our Application Virtualization and VDI solutions and our App Delivery and Security products, and decreases in sales for these solutions could adversely affect our results of operations and financial condition.
- We face intense competition, which could result in customer loss, fewer customer orders and reduced revenues and margins.
- Actual or perceived security vulnerabilities in our products and services or cyberattacks on our services infrastructure or corporate networks could have a material adverse impact on our business, results of operations and financial condition.
- We rely on indirect distribution channels and major distributors that we do not control.
- The effects of the COVID-19 pandemic remain uncertain and could adversely affect our business, results of operations, financial condition and cash flows, and such effects will depend on future developments.
- Our business could be adversely impacted by conditions affecting the information technology market in which we operate.
- Regulation of privacy and data security may adversely affect sales of our products and services and result in increased compliance costs.
- Our solutions could contain errors that could delay the release of new products or otherwise adversely impact our products and services.
- Certain of our offerings have sales cycles which are long and/or unpredictable which could cause significant variability and unpredictability in our revenue and operating results for any particular period.
- Changes to our licensing or subscription renewal programs, or bundling of our solutions, could negatively impact the timing of our recognition of revenue.
- Sales and renewals of our support solutions constitute a large portion of our deferred revenue.
- Our App Delivery and Security business has encountered challenges meeting demand for certain products, and may continue to encounter challenges meeting demand for certain products, if there are any interruptions or delays in the supply of hardware or hardware components from our third-party sources.
- In order to be successful, we must attract, engage, retain and integrate key employees and have adequate succession plans in place, and failure to do so could have an adverse effect on our ability to manage our business.
- The reorganization of our sales leadership, customer-facing organization and sales processes to better align with our business strategy may be disruptive to our operations, will require increasing the number of direct quota carrying sales personnel, and may not yield the short or long-term benefits that we expect.
- Our international presence subjects us to additional risks that could harm our business.
- Adverse changes in global economic conditions could adversely affect our operating results.
- We cannot guarantee that our previously-announced restructuring program will achieve its intended result.
- If our customers choose on-premise subscription licenses with short-term durations, our operating results may be adversely affected.
- Acquisitions and divestitures present many risks, and we may not realize the financial and strategic goals we anticipate.
- Our acquisition of Wrike involves a number of risks that could adversely affect our business, financial condition and operating results, and we may not realize the financial and strategic goals we anticipate.
- If we determine that any of our goodwill or intangible assets, including technology purchased in acquisitions, are impaired, we would be required to take a charge to earnings, which could have a material adverse effect on our results of operations.
- Our inability to maintain or develop our strategic and technology relationships could adversely affect our business.
- Our efforts to protect our intellectual property may not be successful, which could materially and adversely affect our business.
- Our solutions and services, including solutions obtained through acquisitions, could infringe third-party intellectual property rights, which could result in material litigation costs.
- Our use of “open source” software could negatively impact our ability to sell our solutions and subject us to possible litigation.
- If we lose access to third-party licenses, releases of our solutions could be delayed.
- Our business depends on maintaining and protecting the strength of our collection of brands.
- Our portfolios of liquid securities and other investments may lose value or become impaired.
- Changes in our tax rates or our exposure to additional income tax liabilities could affect our operating results and financial condition.
- We are exposed to fluctuations in foreign currency exchange rates, which could adversely affect our future operating results.
- We are involved in litigation, investigations and regulatory inquiries and proceedings that could negatively affect us.
- Our stock price could be volatile, particularly during times of economic uncertainty and volatility in domestic and international stock markets, and you could lose the value of your investment.
- Changes or modifications in financial accounting standards may have a material adverse impact on our reported results of operations or financial condition.
- Natural disasters, climate-related impacts, or other unanticipated catastrophes that result in a disruption of our operations could negatively impact our results of operations.
Management Discussion
- We generate revenue from sales of our Subscription, Product and license and Support and services offerings.
- Subscription revenue relates to fees for SaaS, which are generally recognized ratably over the contractual term and non-SaaS, which are generally recognized at a point in time. SaaS primarily consists of subscriptions delivered via a cloud-hosted service whereby the customer does not take possession of the software, hybrid subscription offerings and the related support. Non-SaaS consists primarily of on-premise licensing, hybrid subscription offerings, CSP services and the related support. Our hybrid subscription offerings are allocated between SaaS and non-SaaS. In addition, our CSP program provides subscription-based services in which the CSP partners host software services to their end users. The fees from the CSP program are recognized based on usage and as the CSP services are provided to their end users.
- Product and license revenue represents fees related to the perpetual licensing of our solutions, primarily our App Delivery and Security products, which are recognized at a point in time. In October 2020, we discontinued broad availability of perpetual licenses for Citrix Workspace.