SNOW

스노우플레이크
Snowflake Inc. · CIK 1640147
SNOW 리스크 변화 알림 받기
이번 보고서
2026.07 분기보고서
10-Q · 기간 말 2026. 7. 31. · 제출 2026. 9. 4.
비교 기준
2026.04 분기보고서
10-Q · 기간 말 2026. 4. 30.
SEC 원문 ↗
1
새 리스크 항목
2
신규 문단
44
수정 문단
9
삭제
+4%
분량 변화
AI 한국어 요약

한 줄 요약

Snowflake는 AI 전략 리스크 항목을 새로 쓰면서 Anthropic·OpenAI 같은 프런티어 AI 모델 공급사에 대한 의존, 그로 인한 마진 압박, GPU 조달 문제를 처음 구체적으로 밝혔고, 전환사채 전환 조건이 실제로 충족된 사실도 새로 공시했습니다.

주목할 변화

  • 신규프런티어 AI 모델 공급사 의존과 마진 압박기존의 일반적인 "AI 전략 실패" 문단이 삭제되고, 외부 AI 모델 의존 리스크를 다루는 장문이 새로 들어갔습니다. 회사는 모델 공급사가 "substantial leverage"를 갖고 있어 표준과 다른 조건을 이미 수용했으며, 이것이 "margin compression from our AI offerings"로 이어진다고 적었습니다. 조건을 받아들여도 접근이 거부될 수 있고, 정부나 공급사가 접근을 "sudden suspension or restriction"할 수 있다는 점도 명시했습니다. 원가에 영향을 주는 공급사로 클라우드 3사 외에 "frontier AI model providers such as Anthropic and OpenAI"를 처음 이름까지 거론했습니다.
  • 신규GPU 조달 어려움과 과잉 약정 위험GPU 확보에 "have experienced ... difficulties sourcing GPUs"라며 이미 어려움을 겪었다고 밝혔습니다. 예측하기 어려운 시장에서 장기 약정을 맺어야 해서 "GPU spending in excess of actual utilization", 즉 실제 사용량을 넘는 지출이 생길 수 있다는 내용도 추가됐습니다.
  • 강화전환사채 조기 전환 조건 충족과거에 전환 조건이 충족된 적이 있다는 일반 문장이, 이번 분기(7월 말 종료)에 실제로 충족됐다는 내용으로 바뀌었습니다. 이에 따라 사채 보유자는 "can convert their Notes at any time during the fiscal quarter ending October 31, 2026" 상태입니다.
  • 강화AI 특화 보안 위협공격 기법으로 "prompt injection, jailbreaking, hijacking, data poisoning, model inversion, and model theft"를 구체적으로 나열했습니다. 위협 주체에는 "systems that may act autonomously"를, 공격 경로에는 Model Context Protocol 같은 에이전트 연동 프로토콜을 새로 추가했습니다.
  • 강화AI 수요 및 사용 최적화에 따른 매출 둔화매출 둔화 요인으로 "customers' willingness to invest in AI technologies may decrease"와 "optimizing AI usage"가 추가됐습니다. 성장 둔화 문구도 "has slowed in recent periods"에서 "have experienced, and will likely experience in the future, periods of slowed revenue growth"로 바뀌었습니다.
  • 강화AI 규제 불확실성 및 상충AI 법이 "principle-based and vague"해서 준수 요건이 불확실하다는 설명이 추가됐습니다. 주 단위 AI 법에 대한 법무부의 대응을 지시한 행정명령 14365를 예로 들며 "changing and potentially conflicting regulations" 위험도 새로 언급했습니다.
  • 강화프로페셔널 서비스 확장 실패 시 플랫폼 소비에 미치는 영향서비스 수요가 늘었다고 밝히면서, 이를 감당하지 못하면 고객 도입이 지연되고 "reduce platform consumption"으로 제품 매출에도 악영향이 갈 수 있다는 연결 고리를 새로 적었습니다.
  • 강화인수 통합과 인재 유지 비용이 '가능성'에서 '경험'으로인수 통합의 어려움을 "have encountered"로, 추가 주식보상 지급을 "have issued"로 바꿔 이미 일어난 일로 표현했습니다. 인재 경쟁 대상에 "executive leadership"을 넣고, 경영진 교체에 따른 예상치 못한 비용 문구도 추가했습니다. 같은 맥락에서 Natoma Labs 인수가 새로 기재됐습니다.

읽는 법

이번 개정의 중심은 AI 사업의 수익성 구조입니다. 외부 프런티어 모델에 의존하면서 불리한 계약 조건, AI 제품의 마진 압박, GPU 과잉 약정 가능성을 회사 스스로 인정했다는 점이 핵심입니다. 따라서 앞으로 실적 발표에서 AI 관련 매출 성장이 매출총이익률에 어떤 영향을 주는지 함께 살펴볼 필요가 있습니다. 또 전환사채가 현재 전환 가능한 상태라는 점은 향후 주식 희석이나 현금 상환 규모와 연결되는 사실이므로, 다음 분기 보고서에서 실제 전환 규모를 확인하는 것이 좋습니다.

원문 비교
  1. 새 리스크 항목
    Successful execution of our AI strategy depends on effective product development, partner relationships, and use of AI in internal operations, as well as favorable customer demand and competitive dynamics. Failure to successfully execute our AI strategy could materially harm our business, financial condition, and results of operations.
  2. 신규Successful execution of our AI strategy depends on effective product development, partner relationships, and use of AI in internal operations, as well as favorable customer demand and competitive dynamics. Failure to successfully execute our AI strategy could materially harm our business, financial condition, and results of operations.
    A core component of our AI strategy includes incorporating third-party AI technologies, including frontier AI models (both proprietary and open-source), into our products and services. As a result, we are subject to a number of risks arising from our dependence on partner relationships and AI models. Frontier proprietary AI model providers have a strong market position and, as a result, enjoy substantial leverage over the prices of their technology and the commercial and product terms and conditions governing their use. In order to gain and retain access to frontier AI models and remain competitive, we have accepted and may continue to accept pricing and other terms that deviate from our standard commercial terms, introduce increased risk related to operational complexities and liability exposure, and contribute to margin compression from our AI offerings. Even if we do accept the model providers’ terms, we still may not be given access to their models, in which case our attractiveness to customers will suffer. On the other hand, incorporating open-source AI models into our products may require us to host and operate those models, which requires significant infrastructure investment and creates additional operational and performance responsibilities without product features or commitments that proprietary AI model providers offer. In addition, customers may be reluctant to use our AI offerings due to any actual or perceived heightened security risk associated with certain third-party and/or open-source AI models, particularly those from other countries. Further, AI is constantly evolving and may not be as reliable as traditional software. If third-party AI models produce flawed results, fail to execute, or introduce or amplify security vulnerabilities, we may face liability to our customers and may not have corresponding indemnification from the AI model providers or insurance coverage. Access to frontier AI models or other technologies may also be subject to sudden suspension or restriction by AI model providers or by governments due to safety concerns, national security concerns, regulatory mandates, or shifting priorities among cloud platforms. Any loss of the ability to use such AI models or other technologies could significantly increase our expenses and disrupt or delay the provision of our services until equivalent technology is either developed internally or obtained from third parties and integrated into our systems.
  3. 수정We have experienced rapid revenue growth and have a limited operating history, both of which make it difficult to forecast our future results of operations.
    Our revenue was $1.4 $1.5 billion and $1.0 $1.1 billion for the three months ended April 30, July 31, 2026 and 2025, respectively. As a result of our historical rapid growth, limited operating history, large number of new product features, including those incorporating artificial intelligence (AI) (including machine learning, large language, and machine learning technology (collectively, other generative or agentic AI Technology), models, and software functionality to operationalize the foregoing), and unstable macroeconomic macro- and microeconomic conditions, our ability to accurately forecast our future results of operations, including revenue, gross margin, remaining performance obligations (RPO), and the percentage of RPO we expect to recognize as revenue in future periods, is limited and subject to a number of uncertainties, including our ability to plan for and model future growth and platform consumption. Our historical revenue growth should not be considered indicative of our future performance.
  4. 수정We have experienced rapid revenue growth and have a limited operating history, both of which make it difficult to forecast our future results of operations.
    Further, our revenue growth could slow or our revenue could decline for a number of reasons, including increased competition; changes to technology, such as changes in software or underlying cloud infrastructure or the increasing prominence of new technology like AI; reputational harm; changes in macroeconomic macro- or microeconomic conditions; and reduced demand for our platform. For example, customers’ willingness to invest in AI technologies may decrease or customers may continue to optimize consumption, rationalize budgets, and prioritize cash flow management, including by reducing storage through shorter data retention policies and policies, shortening committed contract durations. durations, and optimizing AI usage. As a result of the foregoing and our rapid revenue growth in earlier periods, we have experienced, and will likely experience in the future, periods of slowed revenue growth. Any further declines in our revenue growth rate could adversely affect investors’ perceptions of our business, and negatively impact the trading price of our common stock.
  5. 수정We may not have visibility into our future financial position and results of operations.
    Customers generally consume our platform by using compute, storage, and/or data transfer resources. Unlike a subscription-based business model, in which revenue is recognized ratably over the term of the subscription, we generally recognize revenue on consumption. Because our customers have flexibility in the timing of their consumption, we do not have the visibility into the timing of revenue recognition that a typical subscription-based software company has. Customer consumption fluctuates from time to time, and there is a risk that customers will consume our platform at lower levels than we expect, including in response to new software releases or hardware improvements that may make our platform more efficient, adverse macroeconomic macro- or microeconomic conditions, or holidays. Unexpected fluctuations in customer consumption may cause actual results to differ from our forecasts. As a result, our results of operations in a given period should not be relied upon as indicative of future performance.
  6. 수정We have a history of operating losses and may not achieve or sustain profitability in the future.
    We have experienced net losses in each period since inception. We generated net losses of $295.6 $191.7 million and $430.0 $297.9 million for the three months ended April 30, July 31, 2026 and 2025, respectively. As of April 30, July 31, 2026 and January 31, 2026, we had an accumulated deficit of $10.1 $10.3 billion and $9.5 billion, respectively. We expect our costs and expenses to continue to increase in future periods. In particular, we intend to continue to invest significant resources to further develop our platform, expand our research and development teams, retain our employees, and acquire other businesses, including in the areas of data science, AI, and machine learning. We have also entered and may in the future enter into new customer consumption arrangements, and have invested and may continue to invest in new product areas, that are complex and costly, whose adoption and usage are unpredictable or that require time and effort before reaching economies of scale. These activities have in the past and may continue to lead to increased fluctuations in our revenue and lower profit margins.
  7. 수정We have a history of operating losses and may not achieve or sustain profitability in the future.
    In addition, our platform currently operates on public cloud infrastructure provided by Amazon Web Services (AWS), Microsoft Azure (Azure), and Google Cloud Platform (GCP), and services provided by these public cloud providers and frontier AI model providers such as Anthropic and OpenAI, and our costs and gross margins are significantly influenced by the prices we are able to negotiate with these public cloud providers, which in certain cases are also our competitors. If we fail to meet any minimum commitments under our third-party cloud infrastructure and services agreements, we may be required to pay the difference, and our results of operations could be negatively impacted. We will also incur increased general and administrative expenses associated with our growth, including costs related to internal systems, operating as a public company, and targeting regulated industries or markets. Our efforts to grow our business have been and may continue to be costlier than we expect, or our revenue growth rate may be slower than we expect, and we may not be able to increase our revenue enough to offset the increase in operating expenses resulting from these investments. If we are unable to achieve and sustain profitability, or if we are unable to achieve the revenue growth that we expect from these investments, the value of our business and common stock may significantly decrease.
  8. 수정The markets in which we operate are highly competitive, and if we do not compete effectively, our business, financial condition, and results of operations could be harmed.
    •existing observability •observability solution providers, particularly those with strong technological, marketing, and sales positions; and
  9. 수정The markets in which we operate are highly competitive, and if we do not compete effectively, our business, financial condition, and results of operations could be harmed.
    We compete based on various factors, including price, performance, product features, breadth of use cases, multi-cloud availability, ability to offer state-of-the-art AI models and agentic AI solutions, brand recognition and reputation, customer support, technical services, and differentiated capabilities, including ease of implementation and data migration, ease of administration and use, scalability and reliability, data governance, security and compatibility with existing standards, programming languages, third-party products, and the ability to operate in hybrid environments. Many of our competitors have substantially greater brand recognition, customer relationships, and financial, technical, and other resources than we do, and may be able to respond more effectively than us to new or changing opportunities, technologies, standards, customer requirements, and buying practices. Some of our privately-held competitors also have greater operational flexibility than we do, including the ability to make strategic long-term business decisions without the short-term financial performance pressure, market expectations, and public disclosure obligations that affect public companies. In addition, we may not be able to respond to market opportunities as quickly as smaller companies or offer as many discounts or free services as our competitors. Our support of open data formats may also reduce switching costs between us and our competitors.
  10. 수정If we fail to innovate in response to changing customer needs, new technologies, or other market requirements, our business, financial condition, and results of operations could be harmed.
    We compete in markets that evolve rapidly. We believe that the pace of innovation will continue to accelerate as customers increasingly base their purchases of cloud data platforms on a broad range of factors, including performance and scale, cost, markets addressed, types of data processed, ease of data ingress and egress, support of open data formats, user experience and programming languages, use of AI, interoperability and integrations across tools, applications, and platforms, and data governance, security, and regulatory compliance. We introduced data warehousing on our platform in 2014 as our core use case, and our customers subsequently began using our platform for additional product categories, including data engineering, analytics, transactions, AI, and applications and collaboration. Our future success depends on our ability to continue to innovate rapidly and effectively and increase customer adoption of our platform and the AI Data Cloud, including emerging product areas such as AI, AI (including Snowflake CoWork and Cortex Code), Postgres, Observability, Apache Iceberg tables, and Snowpark.
  11. 수정If we fail to innovate in response to changing customer needs, new technologies, or other market requirements, our business, financial condition, and results of operations could be harmed.
    Further, the value of our platform to customers increases to the extent they are able to use it to process and access all types of data. We need to continue to invest in technologies, services, and partnerships that increase the types of data available and processed on our platform, the ease with which customers can ingest data into our platform, and the types of environments that our platform supports, including hybrid offerings that extend into customer-managed environments. We must also continue to enhance our data sharing and marketplace capabilities so customers can share their data with internal business units, their customers, and other third parties, acquire additional third-party data and data products to combine with their own data to gain additional business insights, and develop and monetize applications on our platform. As we develop, acquire, and introduce new services and technologies, including those that incorporate AI Technology, AI, we have been and may continue to be subject to new or heightened legal, ethical, and other challenges. In addition, our platform requires third-party public cloud infrastructure to operate. We need to continue to innovate to optimize our offerings for these and other public clouds that our customers require, particularly as we expand internationally. Further, the markets in which we compete are subject to evolving industry standards and regulations, resulting in increasing data governance and compliance requirements for us and our customers and partners. As we expand further into the public sector and highly regulated countries and industries, our platform and operations will need to address additional requirements specific to those markets, including data sovereignty requirements.
  12. 수정Successful execution of our AI strategy depends on effective product development, partner relationships, and use of AI in internal operations, as well as favorable customer demand and competitive dynamics. Failure to successfully execute our AI strategy could materially harm our business, financial condition, and results of operations.
    Our success is dependent on our ability to succeed in a rapidly changing technology environment dominated by AI. We have made and expect to continue to make significant capital and operational investments in AI, including investments in time, people, and infrastructure to internally develop AI technologies, and we have acquired companies with complementary AI technologies. Our competitors are pursuing similar opportunities and may, as a result of greater resources, branding, or otherwise, develop, adopt, and implement AI Technology faster or more successfully than we do, which could impair our ability to compete effectively.
  13. 수정Successful execution of our AI strategy depends on effective product development, partner relationships, and use of AI in internal operations, as well as favorable customer demand and competitive dynamics. Failure to successfully execute our AI strategy could materially harm our business, financial condition, and results of operations.
    In addition, our successful development and deployment of AI Technology depends in part on our access to GPUs and ability to recruit and retain AI-skilled personnel, both of which are currently in high demand. We have experienced and may continue to experience difficulties sourcing GPUs to support our AI offerings, and we are required to make long-term commitments in an unpredictable market which may lead to GPU spending in excess of actual utilization.
  14. 수정Successful execution of our AI strategy depends on effective product development, partner relationships, and use of AI in internal operations, as well as favorable customer demand and competitive dynamics. Failure to successfully execute our AI strategy could materially harm our business, financial condition, and results of operations.
    Finally, customers’ Customers’ use of our AI Technology functionality is often dependent on their ability to meet evolving regulatory standards, successfully complete internal compliance reviews, and enter into mutually acceptable contractual terms. If they are unable to do so, they may not use our AI Technology functionality as much as we anticipate, or at all. It is also possible that our investments in AI Technology do not result in the benefits we anticipate, or enable us to maintain our competitive advantage. For example, we may not accurately anticipate market demand or offer AI Technology functionality that amplifies our core data platform.
  15. 수정Successful execution of our AI strategy depends on effective product development, partner relationships, and use of AI in internal operations, as well as favorable customer demand and competitive dynamics. Failure to successfully execute our AI strategy could materially harm our business, financial condition, and results of operations.
    In addition, Finally, we are increasingly using AI Technology as part of our internal operations. For example, we use AI Technology to enhance research and development, sales and marketing, services delivery, and compliance activities. If we are unable to effectively leverage AI Technology in our internal operations, or if we fail to use AI Technology responsibly, our productivity, operational efficiency, or effectiveness may suffer. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations, or prospects.
  16. 수정We, our customers, or third-party service providers have in the past and may in the future experience an actual or perceived security breach, unauthorized access to data, or unintended operation of our products. If any such event occurs, our products may be perceived as not being secure, our reputation may be harmed, demand for our products may be reduced, and we may incur significant liabilities.
    In the ordinary course of our business, we store, transmit, generate, and process our, our customers’, and our business partners’ confidential and proprietary data. Such data includes sensitive data, such as personal information, protected health information, and financial data. We use third-party service providers, sub-processors, and technology to help us deliver services to our customers and their end-users, as well as for our internal business operations. We also use third-party technology to assist with securing our environment and providing access to our platform. Some of our customers also use third-party service providers to assist with their use of our platform or third-party technology, such as connectors, connectors and agent-to-platform integration protocols (such as the Model Context Protocol), to access our platform. These third-party service providers may process, store, or transmit data of our employees, partners, customers, and customers’ end-users or may otherwise be used to help operate our platform and corporate systems. In addition, AI models, agents, and large datasets are increasingly integrated into our, our customers’, and other third parties’ systems, which are susceptible to unique and evolving attack techniques such as prompt injection, jailbreaking, hijacking, data poisoning, model inversion, and model theft (or model extraction). We, our customers and business partners, and these third parties face a variety of evolving and increasing cybersecurity and data threats related to this complex network of technology.
  17. 수정We, our customers, or third-party service providers have in the past and may in the future experience an actual or perceived security breach, unauthorized access to data, or unintended operation of our products. If any such event occurs, our products may be perceived as not being secure, our reputation may be harmed, demand for our products may be reduced, and we may incur significant liabilities.
    Cybersecurity threats come from a variety of sources, including traditional computer “hackers,” internal and external personnel (such as through exfiltration or misuse), sophisticated nation-states, nation-state-supported actors, and nation-state-supported actors. AI technologies, including systems that may act autonomously or otherwise behave in unintended, unpredictable, or malicious ways. Cybersecurity threat actors can use a wide variety of methods, often enhanced or facilitated by AI, including unauthorized intrusions, denial-of-service attacks, ransomware attacks, business email compromises, computer malware, infostealer malware, social engineering attacks (including through deep-fakes and phishing), internal and external personnel misconduct or error, supply-chain attacks, software vulnerabilities, and software or hardware disruptions or failures, and attacks enhanced or facilitated by AI Technology, all of which are prevalent in our industry and our customers’ and partners’ industries. These methods change frequently and are becoming increasingly difficult to detect, particularly as AI enables threat actors to identify novel software and system vulnerabilities to exploit previously unknown vulnerabilities before they can be remediated. Threat actors who successfully compromise networks or systems may use such unauthorized access as a vector to compromise other networks and systems. Threat actors’ goals often include disrupting a company’s operations or ability to provide services, obtaining unauthorized access to platforms, systems, networks, or physical facilities in which data is stored or processed, or through which data is transmitted, stealing data, and demanding ransomware payments.
  18. 수정We, our customers, or third-party service providers have in the past and may in the future experience an actual or perceived security breach, unauthorized access to data, or unintended operation of our products. If any such event occurs, our products may be perceived as not being secure, our reputation may be harmed, demand for our products may be reduced, and we may incur significant liabilities.
    In addition, the risk of cybersecurity and data incidents will increase as we continue to expand our product offerings and geographic footprint, grow our customer and partner base, expand our AI Technology offerings, acquire operating companies, increase our technological integrations with external environments, provide technical consulting services where our personnel are operating within customer environments, and process, store, and transmit increasingly large amounts and increasingly sensitive and highly regulated types of data. In particular, certain new product offerings, including through both internal development and strategic acquisitions, may pose different or greater data and security risks than our traditional offerings. These products include, for example, features and functionality that access, take instructions from, and operate on large amounts of data inside and outside our platform, that are customized based on customer specifications, that use agent-to-platform integration protocols to interact with our or third-party systems, or or that are deployed to or accessible from external environments where we have no or limited visibility or control, such as distributed endpoints (e.g., a user’s local device) and publicly accessible networks, which increase the potential attack surface for threat actors. If our security measures designed to mitigate and defend against these risks are not effective or if our customers fail to effectively implement them, we or our customers may experience unintended access to or actions taken with respect to our or their systems or data.
  19. 수정We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors with respect to our results of operations, our stock price could decline.
    •the amount and timing of operating expenses, particularly research and development expenses, including those related to GPUs to develop AI Technology, technologies, and sales and marketing expenses, including commissions;
  20. 수정We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors with respect to our results of operations, our stock price could decline.
    •significant security breaches affecting our platform or systems, our customers’ accounts, external systems, or data; data, or our third-party service providers’ platforms or systems;
  21. 수정Failure to effectively develop and expand our sales and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our products and platform.
    We must continue to expand the capabilities and increase the size and productivity of our sales and marketing organization to increase our sales to new and existing customers. It requires significant time and resources to hire and effectively onboard new sales and marketing personnel and to train and manage new and existing personnel so they are able to successfully sell our product. We also plan to continue to dedicate significant resources to sales and marketing programs that are industry-specific and focused on large organizations. Once a new customer begins using our platform, our sales team needs to focus on expanding consumption with that customer. All these efforts require us to invest significant financial and other resources, including in industries and sales channels in which we have limited experience to date. In addition, our sales compensation plans must be structured in a way that properly incentivizes our sales and marketing personnel to drive increased consumption and new capacity arrangements on favorable terms. Our business and results of operations will be harmed if our sales and marketing efforts generate increases in revenue that are smaller than anticipated. We may not achieve anticipated revenue growth from our sales force if we are unable to attract, hire, develop, integrate, and retain talented and effective sales personnel, if our sales personnel are unable to achieve desired productivity levels, or if our sales and marketing programs, including our sales compensation plans, are not effective.
  22. 수정Sales efforts to large enterprises involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations.
    Sales efforts to large customers enterprises involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations.
  23. 수정Sales efforts to large enterprises involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations.
    Sales to large customers enterprises involve risks that may not be present or that are present to a lesser extent with sales to smaller organizations, such as longer sales cycles, stronger customer leverage in negotiating pricing and other terms, more cumbersome customer requirements, the additional need to partner with third parties that advise such customers or help them integrate their IT solutions, substantial upfront sales costs, less predictability in completing some of our sales, and higher customer support expectations. For example, large customers enterprises may require considerable time to evaluate and test our platform or new features prior to making a purchase decision. In addition, large customers enterprises may be switching from legacy on-premises solutions when purchasing our products, and may rely on third parties with whom we do not have relationships when making purchasing decisions. When we accept non-standard customer requirements that deviate from our standard offerings, we typically need to change our standard operating model, which increases both the cost of compliance as well as the likelihood of noncompliance. Further, large customers enterprises typically have more extensive compliance and vendor diligence programs with respect to new products and services, which can increase both the time and resources needed to sell to them and also result in the inability to sell to them if we do not meet their compliance standards. A number of factors also influence the length and variability of our sales cycle, including the need to educate potential customers about the uses and benefits of our platform, the renegotiation of finalized terms or existing agreements to cover increased spend, additional product categories (e.g., our AI features), changing laws and regulations, different use cases or workloads, or heightened security, privacy, or operational expectations, the discretionary nature of purchasing and budget cycles, and the competitive nature of evaluation and purchasing approval processes. As a result, the length of our sales cycle, from identification of the opportunity to deal closure, may vary significantly from customer to customer, with sales to large enterprises typically taking longer to complete. We have also historically seen consumption growth from large enterprises take longer than when compared to smaller enterprises. Moreover, large customers enterprises often begin to deploy our products on a limited basis but nevertheless demand implementation services and negotiate pricing discounts, which increase our upfront investment in the sales effort with no guarantee that sales to these customers will justify our substantial upfront investment. If we fail to effectively manage these risks associated with sales cycles and sales to large customers, enterprises, our business, financial condition, and results of operations could be affected.
  24. 수정We do business with federal, state, local, and foreign governments and agencies, and heavily regulated organizations; as a result, we face heightened risks related to special contract terms, non-standard product deployments, supply chain restrictions, and compliance with additional processes, rules, and regulations.
    We sell to the U.S. government, state and local governments, foreign governments, and heavily regulated organizations directly and through our partners. Selling to government and regulated customers involves significant costs and operational efforts that arise from special laws, regulations, certification or clearance requirements, procurement processes, contract terms, and customer requirements, including potential supply chain restrictions (such as “supply chain risk” designations for our suppliers or partners). partners and export control directives limiting our access to their products or services). We may fail to win sufficient government or regulated business to justify our investments. For the government and regulated business that we do win, performing under the contracts involves higher ongoing costs to meet the special requirements as well as heightened civil and criminal liability for noncompliance for us, our officers, and directors.
  25. 수정We do business with federal, state, local, and foreign governments and agencies, and heavily regulated organizations; as a result, we face heightened risks related to special contract terms, non-standard product deployments, supply chain restrictions, and compliance with additional processes, rules, and regulations.
    We have obtained various government certifications and authorizations that are required to support sales opportunities to the government, including FedRAMP High Class C (Moderate) and Class D (High) and Department of War (DoW) Impact Level Levels 4 and 5. We may be unable to achieve government certifications or facility security clearances with certain government agencies, or we may be required to make unexpected changes to our business, operations or products to obtain or sustain such certifications or facility clearances. As a result, our ability to sell into the government sector could be restricted until we satisfy the requirements of such certifications or facility clearances. In addition, we plan to continue to pursue additional authorizations, including personnel security clearances that allow us to support the U.S. national security community. Obtaining and maintaining national security clearances within a global enterprise will require significant operational investments and the successful implementation of new processes, systems, and controls. In addition, unlike our standard commercial offering, we anticipate delivering our platform and other offerings into customer environments, which presents risks and challenges arising from having less visibility into and control over the operation and security of our platform and other offerings.
  26. 수정We do business with federal, state, local, and foreign governments and agencies, and heavily regulated organizations; as a result, we face heightened risks related to special contract terms, non-standard product deployments, supply chain restrictions, and compliance with additional processes, rules, and regulations.
    In addition, public sector customers may have contractual, statutory, or regulatory rights to terminate current contracts with us or our third-party distributors or resellers for convenience or default. If a contract is terminated for convenience, we may only be able to collect fees for platform consumption prior to termination and settlement expenses. If a contract is terminated due to a default, we may be liable for excess costs incurred by the customer for procuring alternative products or services or be precluded from doing further business with government entities. Further, entities providing products or services to governments, whether directly or indirectly, are required to comply with a variety of complex laws, regulations, and contractual provisions relating to the formation, administration, and performance of government contracts. Such laws, regulations, and contractual provisions are introduced and change more frequently than laws applicable to non-public sector contracts, and impose compliance obligations that are more burdensome than those typically encountered in commercial contracts. Such laws, regulations, and contractual provisions impose compliance obligations that are more burdensome than those typically encountered in commercial contracts, and they They often give customers in the government market substantial rights and remedies, many of which are not typically found in commercial contracts. These rights and remedies may relate to intellectual property, price protection, the accuracy of information provided to the government, incident notification, termination rights, and prohibition against any government indemnification obligations. For example, the government or other people on behalf of the government can bring civil actions under the False Claims Act where a contractor presents a false or fraudulent claim to the government for payment or approval, which can result in substantial civil penalties and/or prohibition from doing business with the government. In addition, governments may use procurement requirements as an alternative to lawmaking, and impose stricter requirements than would apply to the commercial sector in areas that are not directly related to the purchase. These rules and requirements may apply to us or third-party resellers or distributors whose practices we may not control. Such parties’ non-compliance could result in repercussions for us with respect to contractual and customer satisfaction issues.
  27. 수정If we lose key members of our management team or are unable to attract and retain the executives and employees we need to support our operations and growth, our business and future growth prospects may be harmed.
    From time to time, there may be changes in our executive management team or other key employees resulting from the hiring or departure of these personnel. Our executive officers and other key employees are employed on an at-will basis, which means that these personnel could terminate their employment with us can be terminated by either party at any time. time for any reason. For example, in February 2024, Sridhar Ramaswamy was appointed as Chief Executive Officer to replace Frank Slootman. Following our Chief Executive Officer transition, we experienced several executive leadership transitions, including the following transitions that occurred since the beginning of fiscal 2026: in March 2025, Michael Gannon was appointed as Chief Revenue Officer to replace Christopher W. Degnan; in September 2025, Brian Robins was appointed to replace Michael P. Scarpelli as Chief Financial Officer upon his retirement; and in March 2026, Jonathan Beaulier was appointed as Chief Revenue Officer to succeed Mr. Gannon. Loss of additional executive officers, key employees, any otherwise significant turnover or attrition could harm morale, cause additional personnel to depart, degrade customer and partner relationships, cause us to incur unanticipated costs to hire and train replacement personnel, and introduce operational delays or risks, each of which could harm our operating results.
  28. 수정If we lose key members of our management team or are unable to attract and retain the executives and employees we need to support our operations and growth, our business and future growth prospects may be harmed.
    In addition, to execute our growth plan, we must attract and retain highly qualified personnel. Competition for these personnel is intense, especially for executive leadership, engineers experienced in designing and developing cloud-based data platform products, including products with AI capabilities, and experienced sales, customer support, and professional services personnel. We also are dependent on the continued service of our existing software engineers because of the sophistication of our platform.
  29. 수정If we lose key members of our management team or are unable to attract and retain the executives and employees we need to support our operations and growth, our business and future growth prospects may be harmed.
    In order to support our growing business, we will need to continue to hire in new locations around the world and manage remote/hybrid working policies in certain areas, which may add to the complexity and costs of our business operations. From time to time, we have experienced, and we expect to continue to experience, difficulty in hiring and retaining employees with appropriate qualifications, including skilled AI engineers and qualified sales and marketing personnel, many of whom are in high demand and command high compensation packages. Many of the companies with which we compete for experienced personnel have greater resources than we have and can provide more competitive compensation and benefits. In addition, prospective and existing employees (including members of executive management) often consider the value and other terms of the equity awards they receive to be an important part of their employment compensation package. Our stock price declined fluctuated significantly during portions of fiscal 2027 and fiscal 2026. If the actual or perceived value of our equity awards declines or undergoes significant volatility, or if our existing employees receive significant proceeds from liquidating their previously vested equity awards, it may adversely affect our ability to recruit and retain key employees. Furthermore, current and prospective employees may believe that their equity award offers have limited upside, and our competitors may be able to offer more appealing compensation packages. In order to retain our existing employees and manage potential attrition, including as a result of any stock price decreases and market volatility that impact the actual or perceived value of our equity awards, we have issued and may continue to issue additional equity awards or provide our employees with increased cash compensation, which could negatively impact our results of operations and be dilutive to stockholders. For example, our stock-based compensation, net of amounts capitalized, represented 34% of our revenue for fiscal 2026 and 41% for fiscal 2025, and we expect stock-based compensation to remain substantial even if we are successful in reducing it as a percentage of our revenue. Finally, if we hire employees from competitors or other companies, their former employers may attempt to assert that we or these employees have breached our or their legal obligations, resulting in a diversion of our time and resources.
  30. 수정Our growth depends on the development, expansion, and success of our partner relationships.
    As part of our vision for the AI Data Cloud, we will need to grow and maintain a network of partners, including data and technology providers, data consumers, and data application developers. The relationships we have with these partners, and that our partners have with our customers, provide our customers with enhanced value from our platform and the AI Data Cloud, including Snowpark, the Snowflake Marketplace, and Snowflake Cortex AI. Our future growth will be increasingly dependent on the success of these relationships, and if we are unsuccessful in growing and maintaining these relationships or the types and quality of data and data applications supported by or available for consumption on our platform, or if our partners failed to deliver on their responsibilities or commitments to us or our customers, our business, financial condition, and results of operations could be adversely affected.
  31. 수정If we are unable to successfully manage the growth of our professional services business and improve our profit margin from these services, our operating results could be harmed.
    We believe our future success depends in part on investment in our professional services business, which performs implementation, migration, and training services for our customers designed to facilitate activities such as AI/ML solutions, AI offerings, custom development, customer code conversion and migration from legacy solutions and adoption of our platform, especially with large enterprises. Our sales efforts have been and will continue to be focused on helping our customers more quickly realize the value of our platform and the AI Data Cloud rather than on the profitability of our professional services business. We price our professional services based on the anticipated cost of those services and demand for these services has grown and is expected to continue to grow and, as a result, we expect to improve the gross profit percentage of our professional services business over time; however, if actual delivery costs exceed our estimates, our ability to achieve expected margin improvement may be adversely affected. time. If we fail to scale our professional services to meet this demand, or if we fail to deliver to customers on time and on budget, customers may experience delays or difficulties in adopting and consuming our platform, which could impact customer acquisition, reduce platform consumption, slow customer expansion, and adversely affect our product revenue and our ability to retain and expand within our customer base. In addition, if actual delivery costs exceed our estimates, our ability to achieve expected margin improvement may be adversely affected. If we are unable to manage the growth of our professional services business and improve our profit margin from these services, our operating results, including our profit margins, could be harmed.
  32. 수정Acquisitions, strategic investments, partnerships, or alliances could be difficult to secure or consummate, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition, and results of operations.
    We have in the past and may in the future seek to acquire or invest in businesses, joint ventures, and platform technologies that we believe could complement or expand our platform, enhance our technology, or otherwise offer growth opportunities. For example, since the beginning of fiscal 2026, we have acquired several companies, including Crunchy Data Solutions, Inc., a privately-held company that provided PostgreSQL technology; TensorStax, Inc., a privately-held company that built autonomous AI agents for data engineering services; and Observe, Inc. (Observe), a privately-held company that built an AI-powered observability platform. Observe, Inc., a privately-held company that built an AI-powered observability platform; and Natoma Labs, Inc. (Natoma), an enterprise Model Context Protocol platform for AI agents. Such transactions have in the past and may in the future divert the attention of management and cause us to incur various expenses in identifying, investigating, financing, and pursuing suitable opportunities, whether or not the transactions are completed, and may result in unforeseen operating difficulties and expenditures. In particular, we have encountered and may continue to encounter difficulties or unexpected costs integrating the businesses, technologies, products, personnel, contracts or operations of any acquired companies, particularly if the key personnel of an acquired company choose not to work for us, their software is not easily adapted to work with our platform, or we have difficulty retaining the customers, suppliers, or partners of any acquired business due to changes in ownership, management, or otherwise. Any such transactions that we are able to complete may not result in the revenue, synergies, or other benefits we expect to achieve, which could result in substantial impairment charges. These transactions could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our results of operations. In addition, we may inherit commitments, risks, and liabilities of companies that we acquire that we are unable to successfully mitigate and that may be amplified by our existing business. Finally, disputes or litigation can arise out of our acquisitions or investments from time to time, including in connection with the achievement of earnouts.
  33. 수정Acquisitions, strategic investments, partnerships, or alliances could be difficult to secure or consummate, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition, and results of operations.
    We also enter into strategic partnerships and alliances where we agree to incorporate third-party technologies into our platform and services. services or use third-party services in connection with customers’ use of our platform. In some cases, we have revenue-sharing arrangements with our strategic partners who supply the technology. We may be unable to reach agreements with potential strategic partners on terms acceptable to us, if at all, and we may not be successful in partnering with the companies that have the technologies we need. need, and we have accepted and may in the future accept contract terms required by partners with stronger negotiating leverage that are non-standard or less favorable. Such strategic partnerships are also subject to a number of risks, including with respect to performance issues, security controls, indemnification obligations, obligations and other liability, ownership of intellectual property and other proprietary information. information, and potential reputational harm. Any of the foregoing could harm our business, financial position, and results of operations.
  34. 수정Our current operations are international in scope, and we plan further geographic expansion, creating a variety of operational challenges.
    A component of our growth strategy involves the further expansion of our operations and customer base internationally. Customer accounts outside the United States generated 26% and 25% of our revenue for the three and six months ended April 30, July 31, 2026. We are continuing to adapt to and develop strategies to address international markets, but there is no guarantee that such efforts will have the desired effect. For example, we anticipate that we will need to establish relationships with new partners in order to expand or continue our expansion into certain countries, including China, and if we fail to identify, establish, and maintain such relationships, we may be unable to execute on our expansion plans. We expect that our international activities will continue to grow for the foreseeable future as we continue to pursue opportunities in existing and new international markets, which will require significant dedication of management attention and financial resources.
  35. 수정Our current operations are international in scope, and we plan further geographic expansion, creating a variety of operational challenges.
    •new, evolving, and potentially more stringent regulations relating to AI Technology; AI;
  36. 수정As we are offering our platform in China through a Chinese-owned operating partner to Chinese affiliates of certain multi-national companies, risks associated with economic, political, and social events in China or tension between China and the U.S. or other countries could negatively affect our business, financial condition, results of operations and growth prospects.
    We are currently offering our platform in China to Chinese affiliates of certain multi-national customers. companies. Under Chinese law, we must offer our platform through a Chinese-owned operating partner, which must assume control and management of certain aspects of our platform and serve as the seller of record. This has required a new operating and go-to-market model, and there is a risk that functionality or customer experience may suffer and that we may incur liability or brand impairment arising from the operating partner’s actions, inactions, or ineffectiveness. In addition, developing and operationalizing this new model is a significant investment and may not generate expected returns.
  37. 수정Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.
    Our ability to make scheduled payments of the principal of, to pay special interest, if any, on or to refinance the Notes depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. Our business may not continue to generate sufficient cash flow from operations to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt, or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance the Notes will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, terms or timing, which could result in a default on our debt obligations.
  38. 수정The conditional conversion feature of the Notes, if triggered, may adversely affect our financial condition and operating results.
    If the conditional conversion feature of a series of the Notes is triggered, holders of such Notes will be entitled to elect to convert their Notes at any time during specified periods, as described in the applicable Indenture. For example, the conditional conversion feature of each series of the Notes has been triggered based on the sale price of our common stock in the past and was triggered during the fiscal quarter ended July 31, 2026 such that holders of each series of the Notes can convert their Notes at any time during the fiscal quarter ending October 31, 2026. If one or more holders elect to convert their Notes, we would be required to settle a portion or all of our conversion obligation through the payment of cash, unless we elect to fully settle such conversion by delivering shares of our common stock (other than any cash paid in lieu of delivering fractional shares), which could adversely affect our liquidity. In addition, even if holders do not elect to convert their Notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the relevant series of Notes as a current rather than long-term liability, which would result in a material reduction of our net working capital.
  39. 수정Our intellectual property rights may not protect our business or provide us with a competitive advantage.
    •uncertainty regarding the applicability of intellectual property protections to AI Technology (including outputs generated from AI Technology); AI); and
  40. 수정Our intellectual property rights may not protect our business or provide us with a competitive advantage.
    Litigation may be necessary to enforce or defend our intellectual property or proprietary rights, protect our trade secrets, protect our trademarks, or determine the validity and scope of proprietary rights claimed by others. Any litigation, whether or not resolved in our favor, could result in significant expense to us, divert the efforts of our technical and management personnel, and result in counterclaims with respect to infringement of intellectual property rights by us. If we are unable to prevent third parties from infringing upon or misappropriating our intellectual property or are required to incur substantial expenses defending our intellectual property rights, our business, financial condition, and results of operations may be materially adversely affected.
  41. 수정Issues in the development and use of AI, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.
    Issues in the development and use of AI Technology, AI, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.
  42. 수정Issues in the development and use of AI, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.
    The legal and regulatory landscape applicable to AI Technology is uncertain and is evolving rapidly, which may result in new and enhanced governmental or regulatory scrutiny, litigation, confidentiality, privacy or security risks, ethical concerns, legal liability, or other complications that could adversely affect our business, reputation or financial condition, or results of operations. States, regions, and supranational bodies, including the EU and the United States, have passed or proposed new rules and regulations related to the use or sale of AI Technology. technologies. For example, the EU’s Artificial Intelligence Act, which entered into force in August 2024, established a comprehensive legal framework regulating AI; Texas’ Responsible Artificial Intelligence Governance Act, which went into effect on January 1, 2026, imposes obligations on developers and deployers of AI systems; California’s AI Training Data Transparency Act, which went into effect on January 1, 2026, imposes obligations on generative AI systems or services; Colorado’s Automated Decision-Making Technology Act, which is expected go into effect on January 1, 2027, imposes obligations on developers and deployers of technology that processes personal data and uses computation to generate outputs used to make or assist decisions about individuals; Colorado’s Artificial Intelligence Act, China’s Measures and National Standards on AI-Generated Content, which is expected go went into effect on June 30, 2026, September 1, 2025, imposes obligations on developers and deployers users of “high-risk” AI systems; AI-generated synthetic content; and South Korea’s AI Basic Act, the country’s first major AI legislation, which went into effect on January 22, 2026, imposes obligations on developers and deployers of “high impact” and generative AI Technology. AI. These regulations may impose onerous obligations related to our development, offering, and use of AI Technology and expose us to an increased risk of regulatory enforcement and litigation. If we cannot use AI Technology or that use is restricted, our business may be less efficient, or we may be at a competitive disadvantage. The laws governing AI are often principle-based and vague and, until market practice and enforcement patterns are established, there is substantial uncertainty around compliance requirements. Further, the rapid growth of AI laws and regulations has been met with legal challenges. For example, the December 11, 2025 Executive Order 14365 directed the U.S. Department of Justice to challenge state AI laws deemed onerous and excessive. We may face changing and potentially conflicting regulations and requirements, which can increase our compliance burden to regulators and customers.
  43. 수정Issues in the development and use of AI, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.
    In particular, there is significant uncertainty surrounding the applications of intellectual property and privacy laws to AI Technology. AI. Intellectual property ownership and rights (including copyright) and the remedies of rights owners surrounding the use and development of AI Technology have not been fully addressed by courts or other federal or state laws or regulations, and our use of AI Technology or adoption of AI Technology into our products and services may result in disputes with respect to ownership of intellectual property, or exposure to claims of copyright or other intellectual property infringement, misappropriation, or violations of rights of publicity. In addition, our AI Technology offerings may involve the processing of personal and other sensitive data and may be subject to laws, policies, legal obligations, and contractual requirements related to privacy, data protection, and information security. Certain privacy laws extend rights to consumers (such as the right to obtain consent or delete certain personal data) and regulate automated decision making. An alleged or actual failure to meet these obligations may lead to regulatory investigations and fines or penalties, require us to change our business practices or retrain our algorithms, or prevent or limit our use of AI Technology. AI. For example, the FTC has required other companies to turn over or disgorge valuable insights or trainings generated through the use of AI Technology where the FTC determined such companies violated privacy and consumer protection laws. We may also be held liable for intellectual property rights infringement or misappropriation, violations of privacy rights, or other legal violations of third-party AI Technology technologies (including outputs from AI Technology) AI) that we use, and we may not have full recourse for any damages that we suffer (for example, our use of third-party AI Technology technologies may be subject to limitations of liability or provide no liability coverage (e.g., free or open-source technology)). We could also face claims alleging open-source software or other license terms apply with respect to outputs from AI Technology that we believed to be available for use, and not subject to license terms or other third-party proprietary rights.
  44. 수정Issues in the development and use of AI, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.
    The algorithms or training methodologies used in the AI Technology technologies we use or offer may be flawed. Data sets may be overly broad, insufficient, or contain inappropriately biased information. Our generative AI Technology functionality may also generate outputs that are inaccurate, misleading, harmful, offensive, or otherwise flawed. This may happen if the inputs that the model relied on were inaccurate, incomplete, or flawed (including if a bad actor “poisons” the model with bad inputs or logic), or if the logic of the algorithm is flawed (a so-called “hallucination”). Such inputs and outputs may also contain copyrighted or other protected material. material, which could result in legal claims against us. Our customers or others may rely on or use such outputs to their detriment, or it may lead to adverse outcomes, which may expose us to brand or reputational harm, competitive harm, and/or legal liability. Further, unauthorized use or misuse of generative AI Technology by our employees or others who have access to our systems may result in disclosure of confidential company and customer data, reputational harm, privacy or AI law violations and legal liability. Finally, if we enable or offer services or technologies that draw scrutiny or controversy, if our use of AI Technology becomes controversial or causes ethical issues, if our customers’ use our AI Technology functionality in an improper or controversial way, or if we are perceived to overstate the capabilities or benefits of our products, services, or technologies that employ AI Technology, AI, we may experience brand or reputational harm, competitive harm, and/or legal liability.
  45. 수정Our stock price may be volatile, and the value of our common stock may decline.
    •our involvement in litigation or governmental or regulatory investigations or inquiries and the development and outcome of such litigation, investigations, or inquiries; inquiries(including the amount and timing of related settlements, judgments, fines, legal fees, and other charges);
  46. 수정Our stock price may be volatile, and the value of our common stock may decline.
    Broad market and industry fluctuations, as well as general economic, political, regulatory, and market conditions, such as recessions, inflation, interest rate changes, tariffs and trade wars, extended U.S. federal government shutdowns, or international currency fluctuations, may also negatively impact the market price of our common stock. In the past, addition, technology stocks have historically experienced high levels of volatility and companies that have experienced volatility in the market price of their securities have been are often subject to securities class action litigation. We have been, and may be in the future, the target of this type of litigation, which could result in substantial expenses and divert our management’s attention. We are currently subject to certain separate securities class action lawsuits in federal court. See the section titled “Legal Proceedings” for more information.
  47. 문장 삭제We have experienced rapid revenue growth and have a limited operating history, both of which make it difficult to forecast our future results of operations.
    As a result of the foregoing and our rapid revenue growth in prior periods, our revenue growth rate has slowed in recent periods.
  48. 삭제된 항목
    If we are not successful in executing an effective AI strategy, our business, financial condition, and results of operations could be harmed.
  49. 문장 삭제If we are not successful in executing an effective AI strategy, our business, financial condition, and results of operations could be harmed.
    We have invested and continue to invest significantly in AI Technology. Our investments include internally developing AI Technology, acquiring companies with complementary AI Technology, and partnering with companies to bring AI Technology to our platform. We also use third-party vendors for certain AI Technology components and services, including large language models, and if they are flawed or fail to execute, it may adversely impact our ability to deliver our products and services to our customers.
  50. 문장 삭제We, our customers, or third-party service providers have in the past and may in the future experience an actual or perceived security breach, unauthorized access to data, or unintended operation of our products. If any such event occurs, our products may be perceived as not being secure, our reputation may be harmed, demand for our products may be reduced, and we may incur significant liabilities.
    In addition, AI models and large datasets are increasingly integrated into our, our customers’, and other third parties’ systems.
  51. 문장 삭제We, our customers, or third-party service providers have in the past and may in the future experience an actual or perceived security breach, unauthorized access to data, or unintended operation of our products. If any such event occurs, our products may be perceived as not being secure, our reputation may be harmed, demand for our products may be reduced, and we may incur significant liabilities.
    These methods change frequently and are becoming increasingly difficult to detect.
  52. 문장 삭제If we are unable to successfully manage the growth of our professional services business and improve our profit margin from these services, our operating results could be harmed.
    Our professional services business, which performs implementation and training services for our customers, has grown larger and more complex as our product revenue has increased.
  53. 문장 삭제The conditional conversion feature of the Notes, if triggered, may adversely affect our financial condition and operating results.
    For example, the conditional conversion feature of each series of the Notes was triggered based on the sale price of our common stock in the past.
  54. 문장 삭제We are subject to stringent and changing obligations related to data, including data privacy and security, and the failure or perceived failure to comply with these obligations could result in significant fines and liability or otherwise result in substantial harm to our business and prospects.
    The deadline for transposition of NIS2 into local law was October 17, 2024; however, many of the member states in the EU have not fully transposed the Directive, leading to the opening of infringement procedures by the European Commission against the member states.
  55. 문장 삭제Our stock price may be volatile, and the value of our common stock may decline.
    In addition, technology stocks have historically experienced high levels of volatility.