Marin Software Inc (MRIN) 2020年年度報告「NYSE」.pdf

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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K Annual Report pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934For the fiscal year ended December 31,2020OR Transition report pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934Commissi

2、on File Number:001-35838Marin Software Incorporated(Exact name of registrant as specified in its charter)Delaware20-4647180(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification No.)123 Mission Street,27th FloorSan Francisco,CA 94105(Address of principal executive

3、 offices)(415)399-2580(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon stock,par value$0.001 per shareMRINThe Nasdaq Global MarketSecurities registered pursu

4、ant to section 12(g)of the Act:Not applicableIndicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesNoIndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)ofAct.YesNoIndicatebycheckmarkwhethertheregistrant(1)hasfi

5、ledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesNoIndicatebycheckmarkwhethertheregistranthassubmittedelectro

6、nicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwasrequiredtosubmitsuchfiles).YesNoIndicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-accel

7、eratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.Largeacceleratedfiler Acceleratedfiler Non-acceleratedfiler Smallerreportingcompany Emerginggro

8、wthcompany Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.Indicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsman

9、agementsassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b)bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).YesNoBasedo

10、ntheclosingpriceoftheregistrantsCommonStockonTheNasdaqGlobalMarketof$1.42onthelastbusinessdayoftheregistrantsmostrecentlycompletedsecondfiscalquarter,whichwasJune30,2020,theaggregatemarketvalueofitssharesheldbynon-affiliateswasapproximately$9.3million.SharesoftheregistrantsCommonStockheldbyeachexecu

11、tiveofficeranddirectorwereexcludedinthatsuchpersonsmaybedeemedtobeaffiliates.Thisdeterminationofaffiliatestatusisnotnecessarilyaconclusivedeterminationforotherpurposes.AsofFebruary19,2021,therewereapproximately10,936,000sharesoftheregistrantsCommonStockoutstanding.DOCUMENTS INCORPORATED BY REFERENCE

12、PortionsoftheRegistrantsdefinitiveproxystatementforits2021AnnualMeetingofStockholders(“ProxyStatement”),tobefiledwithin120daysoftheRegistrantsfiscalyearendedDecember31,2020,areincorporatedbyreferenceinPartIIIofthisAnnualReportonForm10-K.Exceptwithrespecttoinformationspecificallyincorporatedbyreferen

13、ceinthisForm10-K,theProxyStatementisnotdeemedtobefiledaspartofthisAnnualReportonForm10-K.MARIN SOFTWARE INCORPORATEDFORM 10-KFor the Fiscal Year Ended December 31,2020TABLE OF CONTENTS PagePART I.4Item1.Business4Item1A.RiskFactors9Item1B.UnresolvedStaffComments31Item2.Properties31Item3.LegalProceedi

14、ngs32Item4.MineSafetyDisclosures32PART II.33Item5.MarketforRegistrantsCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities33Item6.SelectedConsolidatedFinancialData34Item7.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations36Item7A.QuantitativeandQualitati

15、veDisclosuresAboutMarketRisk51Item8.FinancialStatementsandSupplementaryData52Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure52Item9A.ControlsandProcedures52Item9B.OtherInformation53PART III.54Item10.Directors,ExecutiveOfficersandCorporateGovernance54Item11.ExecutiveC

16、ompensation54Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters54Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence54Item14.PrincipalAccountantFeesandServices54PART IV.55Item15.ExhibitsandFinancialStatementSchedules55Item16.Form10-KSumma

17、ry57Signatures 832SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTSThisAnnualReportonForm10-K,includingthe“ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations,”containsforward-lookingstatementsregardingfutureeventsandourfutureresults,including,amongotherthings,statementsregard

18、ingourbusiness,thecapabilitiesofourtechnologyplatformandupgradestotheplatform,productcapabilitiesandtheirbenefitsforourcustomers,andexpectationsastoourfuturefinancialoperatingresultsandfinancialcondition,thataresubjecttothesafeharborscreatedundertheSecuritiesActof1933,asamended,andtheSecuritiesExcha

19、ngeActof1934,asamended.AllstatementscontainedinthisAnnualReportonForm10-Kotherthanstatementsofhistoricalfact,includingstatementsregardingourfutureresultsofoperationsandfinancialposition,ourbusinessstrategyandplans,andourobjectivesforfutureoperations,areforward-lookingstatementswithinthemeaningoftheP

20、rivateSecuritiesLitigationReformActof1995.Thewords“believe,”“may,”“potentially,”“will,”“estimate,”“continue,”“anticipate,”“intend,”“could,”“should,”“would,”“project,”“plan,”“predict,”“expect,”“seek,”“likely,”andsimilarexpressionsareintendedtoidentifyforward-lookingstatements.Wehavebasedtheseforward-

21、lookingstatementslargelyonourcurrentexpectations,estimatesandprojectionsaboutfutureeventsandtrendsthatwebelievemayaffectourfinancialcondition,resultsofoperations,businessstrategy,short-termandlong-termbusinessoperationsandobjectives,andfinancialneeds.Thesestatementsreflectourbeliefsandcertainassumpt

22、ionsbaseduponinformationavailabletousatthetimewefilethisAnnualReportonForm10-Korthetimeofthedocumentsincorporatedbyreference.Suchforward-lookingstatementsareonlypredictions,whichmaydiffermateriallyfromactualresultsorfutureevents.Althoughwebelievethatourexpectations,estimatesandprojectionsreflectedin

23、theforward-lookingstatementsarereasonable,wecannotbesurethattheywillbeachieved.Theseforward-lookingstatementsaresubjecttoanumberofrisks,uncertaintiesandassumptions,includingthosedescribedinthe“RiskFactors”section.Moreover,weoperateinaverycompetitiveandrapidlychangingenvironment.Newrisksemergefromtim

24、etotime,includingtheriskofadverseeconomiceffectsoftheCOVID-19pandemic.Itisnotpossibleforourmanagementtopredictallrisks,norcanweassesstheimpactofallfactorsonourbusinessortheextenttowhichanyfactor,orcombinationoffactors,maycauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstate

25、mentswemaymake.Inlightoftheserisks,uncertaintiesandassumptions,thefutureeventsandtrendsdiscussedinthisreportmaynotoccurandactualresultscoulddiffermateriallyandadverselyfromthoseanticipatedorimpliedintheforward-lookingstatements.Weundertakenoobligationtoreviseorpubliclyreleasetheresultsofanyrevisiont

26、otheseforward-lookingstatements,exceptasrequiredbylaw.Giventheserisksanduncertainties,readersarecautionednottoplaceunduerelianceonsuchforward-lookingstatements.Asusedinthisreport,theterms“Marin,”“Registrant,”“we,”“us,”“our,”andthe“Company”meanMarinSoftwareIncorporatedanditssubsidiariesunlesstheconte

27、xtindicatesotherwise.Referencesto“fiscal2020”and“fiscal2019”refertotheyearendedDecember31,2020andtheyearendedDecember31,2019,respectively.3PART IITEM 1.BUSINESSWearealeadingproviderofdigitalmarketingsoftwareforsearch,socialandeCommerceadvertisingchannels,offeredasaunifiedsoftware-as-a-service,orSaaS

28、,advertisingmanagementplatformforperformance-drivenadvertisersandagencies.Ourplatformisananalytics,workflowandoptimizationsolutionformarketingprofessionals,allowingthemtoeffectivelymanagetheirdigitaladvertisingspend.Wemarketandselloursolutionstoadvertisersdirectlyandthroughleadingadvertisingagencies

29、,andourcustomerscollectivelymanagebillionsofdollarsinadvertisingspendonourplatformgloballyacrossawiderangeofindustries.Webelievethismakesusoneofthelargestprovidersofindependentadvertisingcloudsolutions.Oursoftwaresolutionisdesignedtohelpourcustomers:measuretheeffectivenessoftheiradvertisingcampaigns

30、throughourproprietaryreportingandanalyticscapabilities;manageandexecutecampaignsthroughourintuitiveuserinterfaceandunderlyingtechnologythatstreamlinesandautomateskeyfunctions,suchasadvertisementcreationandbidding,acrossmultiplepublishersandchannels;andoptimizecampaignsacrossmultiplepublishersandchan

31、nelsbasedonmarketandbusinessdatatoachievedesiredrevenueoutcomesusingourpredictivebidmanagementtechnology.Advertisersuseourplatformtocreate,targetandconvertpreciseaudiencesbasedonrecentbuyingsignalsfromuserssearch,socialandeCommerceinteractions.OurplatformisintegratedwithleadingpublisherssuchasApple,

32、Amazon,Baidu,Bing,Facebook,Google,Instagram,LinkedIn,Pinterest,Twitter,VerizonMedia,Yahoo!JapanandYandex.Additionally,wehaveintegrationswithmorethan50leadingwebanalyticsandadvertisement-servingsolutionsandkeyenterpriseapplications,enablingourcustomerstomoreaccuratelymeasurethereturnoninvestmentofthe

33、irmarketingprograms.Oursoftwareplatformservesasanintegrationpointforadvertisingperformance,salesandrevenuedata,allowingadvertiserstoconnectthedotsbetweenadvertisingspendandrevenueoutcomes.Throughanintuitiveinterface,weenableourcustomerstosimultaneouslyrunlarge-scaledigitaladvertisingcampaignsacrossm

34、ultiplepublishersandchannels,makingiteasyformarketerstocreate,publish,modifyandoptimizecampaigns.Ourpredictivebidmanagementandoptimizationtechnologyalsoallowsadvertiserstoforecastoutcomesandoptimizecampaignsacrossmultiplepublishersandchannelstoachievetheirbusinessgoals.Ouroptimizationtechnologycanhe

35、lpadvertisersincreaseadvertisementspendonthosecampaigns,publishersandchannelsthatareperformingwellwhilereducinginvestmentinthosethatarenot.Thiscategoryofsolutions,whichwerefertoascross-channelbidandcampaignoptimization,helpsbusinessesintelligentlyandefficientlymeasure,manage,andoptimizetheirdigitala

36、dvertisingspendtoachievedesiredbusinessresults.HeadquarteredinSanFrancisco,wewereincorporatedintheStateofDelawarein2006.Themailingaddressofourheadquartersis123MissionStreet,27thFloor,SanFrancisco,California94105andourtelephonenumberatthatlocationis(415)399-2580.Offered SolutionsOurcloud-basedplatfor

37、mhelpsourcustomerstomeasure,manageandoptimizetheirdigitalmarketingcampaignstoimproveperformanceoftheironlineadvertisingcampaigns,realizeefficienciesandtimesavings,andmakebetterbusinessdecisions.Weoffersolutionsfordirectadvertisersofallsizesandtheagenciesthatrepresentthem,includingenterprise,mid-mark

38、etorsmallbusinesses.WeofferSaaSsolutionsandmanagedservicesforsearch,socialandeCommerce.Search,Social and eCommerceOurcurrentproductlineupconsistsofMarinOneandourtwolegacyproducts,MarinSearchandMarinSocial.Wehavebeenmigratingcustomers,andweexpecttocontinuetomigratecustomersinthefirsthalfof2021,fromMa

39、rinSearchandMarinSocialtoMarinOne.MarinOne.Ournext-generationplatformthatbringssearch,socialandeCommerceadvertisingintoasingle-platform.MarinOnehelpsadvertisersmaximizeacustomerjourneythatspansGoogle,Facebook,TwitterandAmazonbycombiningthepowerofMarinSearchandMarinSocialwithnewerchannelslikeLinkedIn

40、,AppleSearchAdsandYouTube.Marin Search.Ouroriginalproductforlargeadvertisersandagencies,Marin Searchisdesignedtoprovidesearchadvertiserswiththepower,scaleandflexibilityrequiredtomanagelarge-scaleadvertisingcampaigns.Marin Social.HelpsadvertisersmanagetheirFacebook,InstagramandTwitteradvertisingspend

41、atscale.4Ourplatformsarecomprisedofthefollowingmodules:Optimization.OurOptimizationmodulehelpsadvertisersmanagebidsacrosspublisherstomeetrevenuegoalsandidentifyopportunitiesforcampaignimprovements,whichwebelievecanimprovefinancialperformanceandefficiencies.Forecastingcapabilitieshelppredictcampaignp

42、erformance,whichsimplifiesthebudgetingprocessformarketingdepartments.Reporting and Analytics.OurReporting and Analyticsmoduleenablesadvertiserstoreportresultsatabusinesslevelandanalyzecross-channelperformancetrends,whichwebelievecanleadtoimprovedvisibilityandgeneratesignificanttimesavings.Campaign M

43、anagement.OurCampaign Managementmoduleprovidesthedigitaladvertiserwithaunifiedinterfacetocreate,manageandoptimizecampaignsacrossabroadrangeofpublishers,creatinggreaterefficienciesandincreasingflexibility.Ourgoalistocomplementandenhancethetoolsofferedbythesepublisherstoprovidedigitaladvertiserstheabi

44、litytoeasilymanagetheircampaignsonaglobalscale.Connect.OurConnectmoduleenablesadvertiserstoautomateandstreamlinethecaptureofrevenue,costandaudiencedatafromarangeofsourcessuchasadvertisementservers,analyticssystems,CRMplatforms,publishersandthird-partydatabases.Throughintegrationsacrossmultipledataso

45、urces,ourConnectmodulecanhelpadvertisershaveaholisticpictureoftheirdigitaladvertisingcampaigns.InNovember2019,wecompletedthedivestitureoftheassetsandliabilitiesrelatedtoourPerfectAudiencebusiness,whichfocusedondisplayretargetingadvertisements,toSharpSpring,Inc.anunrelatedthirdpartyfornetproceedsof$4

46、.3million,asfurtherdescribedinNote7oftheaccompanyingconsolidatedfinancialstatements.Technology&Supporting PlatformWedesignedourcloud-basedplatformtosupportlargeglobaladvertisers.ThemajorityofoursoftwareiswritteninJava.Ourhardwareconsistsofindustry-standardserversandnetworkinfrastructure.Ourstandardo

47、peratingsystemisLinux.Oursoftwareplatformischaracter-set,language,currency,andtime-zoneindependent.Ourtechnologyplatformhasthefollowingkeybenefits:Scalability.Ourplatformisdesignedtohandlebillionsofadvertisingunitsacrossthousandsofadvertisers,whiledeliveringaresponsivebrowsingandeditingexperience.If

48、thenumberofadvertisersandresultingcomputingandstoragerequirementschanges,wecanaddorremovehardwaretoourplatformtoaccommodatethedemand.Availability.Ourcustomersarehighlydependentontheavailabilityofourplatform,whichisdesignedtobeavailable24x7,365daysayear.Weoperateourownhardwareandusethird-partydatacen

49、tersthatofferserverredundancy,back-upcommunicationsandpowerandphysicalsecurity.Security.Ourplatformmanagesalargequantityofcustomerdata.Weemploytechnologies,policiesandprocedurestoprotectcustomerdata.Theprimarythird-partydatacenterthatweusetohostourplatformhasSSAENo.18,Type2SOC1,SOC2andSOC3attestatio

50、nsandisISO27001certified.Wearecontinuouslyupgradingoursoftwareplatforminamannerthatwebelievewillcost-effectivelyextendthescalability,speed,resiliencyandavailabilityofourservicesandfacilitateourabilitytoaddnewfeaturestoourproducts.Strategic AgreementsWehaveenteredintolong-termstrategicagreementswithc

51、ertainleadingsearchpublishers.Underthesestrategicagreements,wereceiveconsiderationbasedonapercentageofthesearchadvertisingspendthatourcustomersmanageonourplatform.InDecember2018,weenteredintosuchanagreementwithGoogle,underwhichwereceiverevenuesharepaymentsbasedonourcustomerssearchadvertisingspendonG

52、oogleandcertainothereligiblesearchengines.Inexchange,wewillreinvestapercentageoftheserevenuesharepaymentstodriveourtechnologyplatforminnovation.ThisagreementwentintoeffectonOctober1,2018,andisscheduledtoterminateonSeptember30,2021,althoughGooglemayterminatetheagreementincertaincircumstances.Weareinp

53、reliminarydiscussionswithGoogletoextendpotentiallythetermofthisagreement,butnoassurancescanbeprovidedastowhetherthetermwillbeextendedorastotermsofanyextensionoftheagreement.ThisagreementandtherelatedrevenuerecognitionconsiderationsaredescribedmorefullyinNote3oftheaccompanyingconsolidatedfinancialsta

54、tements.CustomersWemarketandsellourtechnologysolutionstoadvertisersdirectlyandthroughadvertisingagenciesthatuseourplatformonbehalfoftheircustomers.Advertisersthatweservethroughourrelationshipswithagenciesgenerallyrepresentedapproximatelyone-5thirdtoone-quarterofouroverallrevenues.Wealsogeneratereven

55、uesfromleadingpublishersthroughourlong-termstrategicagreements.CompetitionThedigitaladvertisingcloudmarketishighlycompetitive,fragmented,andsubjecttochangesinbothtechnologyandcustomerbehavior.Wefacesignificantcompetitiontodayandexpectcompetitiontointensifyinthefuture.Tomaintainandimproveourcompetiti

56、veposition,wemustkeeppacewiththeevolvingneedsofourcustomersandcontinuetodevelopandintroducenewmodules,featuresandservicesinatimelyandefficientmanner.Wecurrentlycompetewithlarge,well-establishedcompanies,suchasAdobeSystemsIncorporated,Facebook,Inc.,GoogleInc.(throughitswhollyownedsubsidiaryDoubleClic

57、k)andKenshooLtd.Wealsocompetewithin-houseproprietarytools,toolsfrompublishersandcustomsolutions,includingspreadsheets.Webelievetheprincipalcompetitivefactorsinourmarketincludethefollowing:solutionquality,breadth,stability,flexibilityandfunctionality;tangibleplatformbenefits;levelofcustomersatisfacti

58、onandourabilitytorespondtocustomerneedsrapidly;breadthandqualityofadvertiserandagencyrelationships;abilitytoinnovateanddevelopneworimprovedproductsandfeatureswhilemaintainingplatformspeedandstability;abilitytorespondtochangesinpublishersapplicationprogramminginterfaces;brandawarenessandreputation;an

59、dsizeofcustomerbase.Apartfromcross-channelplatformcompetitors,wealsocompetewithchannelsolutionsinthesocialadvertisingmarket.Competitorsinthesocialadvertisingmarketincludecompaniessuchas4CInsights,Inc.,S(throughitswhollyownedsubsidiaryS)andSmartly.ioInc.Ourabilitytoremaincompetitivewilllargelydependo

60、nourongoingperformanceintheareasofthequality,functionalityandbreadthofoursolutionandtheavailabilityandknowledgeabilityofourcustomersupport.Sales and MarketingWeselloursolutionsdirectlytoadvertisersandagenciesinawiderangeofindustriesthroughourglobalsalesteam.Oursalescyclecanvarysubstantiallybyadverti

61、serandagency,butcantakebetweenthreeandninemonths.Wehaveeightaccountdirectorsorganizedbygeographyandmarketsegments.Thesameaccountdirectorsareresponsibleforlong-termcustomersatisfactionandretention,renewal,supportanddrivinganincreaseinthevolumeofmediamanagedbycustomersonourplatform.Ourmarketingteamisf

62、ocusedondrivingawarenessanddemandgenerationacrossmajormarkets.Thisteamprovidesthoughtleadershipintheformofwhitepapers,benchmarkingreports,bylines,presentingatindustryconferencesandspeakingtothepress.Inaddition,theyareresponsibleforthecreationoffieldenablementassetssuchascasestudies,blogpostsandcorpo

63、rateandproductcollateral.Research and DevelopmentOurresearchanddevelopmentteamisresponsibleforthedesign,development,andmaintenanceofourplatform.Ourresearchanddevelopmentprocessemphasizesfrequent,iterativeandincrementaldevelopmentcycles.Withinourresearchanddevelopmentorganizations,wehaveseveralprojec

64、tteamsthatfocusonplatformandfeaturedevelopmentforouradvertisingcloudsolutions.Eachoftheseprojectteamsincludesengineers,qualityengineersandproductmanagers,asneeded,responsiblefortheinitialandongoingdevelopmentfortheirprojects.Government RegulationWearesubjecttoanumberoflawsandregulationsthataffectcom

65、paniesconductingbusinessintheadvertisingandSaaSindustriesandontheInternet,manyofwhicharestillevolvingandcouldbeinterpretedinwaysthatcouldharmourbusiness.ThemannerinwhichexistinglawsandregulationswillbeappliedtotheSaaSandadvertisingindustriesandtheInternetingeneralandhowtheywillrelatetoourbusinessinp

66、articular,areoftenunclear.Forexample,weoftencannotbecertainhowexistinglawswillapplyintheeCommerceandonlinecontext,includingwithrespecttosuchtopicsasprivacy,advertising,pricing,taxation,contentregulation,qualityofproductsandservicesandintellectualpropertyownershipandinfringement.Inaddition,in2020U.S.

67、federaland6stateandforeigngovernmentsandregulatoryagenciesinitiatedlawsuitsorinvestigationsagainstGoogleandFacebookrelatedtocertainoftheiranticompetitivebusinesspracticesandconductinthedigitaladvertisingandsocialmediaindustriesandwecannotbecertainastohowsuchlawsuitsandinvestigationsmightaffectGoogle

68、orFacebookorotherwiseaffectthedigitaladvertisingindustry.NumerouslawsandregulatoryschemeshavebeenadoptedatthenationalandstatelevelintheUnitedStates,andinsomecasesinternationally,thathaveadirectimpactonourbusinessandoperations.Forexample,onJanuary1,2020,theCaliforniaConsumerPrivacyActwentintoeffect,p

69、rovidingconsumerstherighttoknowwhatpersonaldatacompaniescollect,howitisused,andtherighttoaccess,deleteandoptofsaleoftheirpersonalinformationtothirdparties.Additionally,inMay2019,theEuropeanUnionsGeneralDataProtectionRegulation,orGDPR,governingdataprivacyreplacedtheDataProtectionDirectiveandestablish

70、ednewrequirementsapplicabletothehandlingofpersonaldataandimposespenaltiesfornon-complianceofuptothegreaterof20,000,000or4%ofworldwiderevenue.Human Capital ResourcesOuremployeesareourgreatestasset.Ourperformancedependsuponidentifying,attracting,developing,motivatingandretainingahighlyskilledworkforce

71、inmultipleareas,includingengineering,salesandmarketing,andcustomerservice.Collectively,ouremployeeshaveextensiveexperienceandknowledgeindigitalmarketingandwebelievethatweemploysomeofthetoptalentinourindustry.Workforce DemographicsAsofDecember31,2020,wehadatotalof162employees,whichwasdownfromatotalof

72、292employeesatDecember31,2018andatotalof229employeesatDecember31,2019.AtDecember31,2020,approximately45%ofouremployeeswerelocatedintheUnitedStates,withapproximately40%ofouremployeeslocatedinEuropeandapproximately15%ofouremployeeslocatedinAsia.AtDecember31,2020,approximatelyone-halfofouremployeeswere

73、onourengineeringandresearchanddevelopmentteams,withtheremainderofouremployeescomprisingoursalesandmarketing,customerservice,andgeneralandadministrativeteams.During2020,oneofourstrategicinitiativeswastheimplementationofarestructuringplaninthethirdquarterof2020,whichincludedaglobalreduction-in-forcean

74、dothercostsavingactionstoreduceouroperatingexpensesandaddresstheimpactoftheCOVID-19pandemiconourbusiness(the“2020RestructuringPlan”).The2020RestructuringPlanresultedinthereductionofourglobalworkforcebyapproximately60employees,approximatelyhalfofwhichwerelocatedoutsideoftheUnitedStates.Wealsoexperien

75、cedsomeseniormanagementturnoverin2020,withthedeparturesofthepreviousmanagersofoursalesteamandourcustomerserviceteamsduringthethirdquarterof2020.Webelievewehavesuccessfullyrestructuredtheseteamsandhavepromotedatalentedandexperiencednewleaderfortherestructuredteamsfromwithinourranks.Followingourrecent

76、restructuringefforts,webelievethatwehavebetteralignedourhumancapitalresourceswiththecurrentandplannedneedsofourbusiness.Wearenowfocusedonretainingandmotivatingouremployeesatalllevelsandinallpartsoftheorganization,andwearecommittedtomaintainingaworkplaceenvironmentthatpromotesemployeeproductivityands

77、atisfaction.Wedonotexpecttoincreasethesizeofouremployeebasesignificantlyinthenearfuture.Compensation,Benefits and Well-beingWebelievethatweofferfaircompensationandbenefitsthatsupportouremployeesoverallwell-beingandarecompetitiveinourindustryandinthecommunitiesinwhichweoperate.Topromotealignmentwitho

78、urshort-andlong-termobjectives,ourcompensationpracticesforemployeesincludebasepay,annualbonusesandothershort-termincentives,andequitygrantsandotheropportunitiesforlong-termincentives.Weofferanarrayofbenefits,includingcomprehensivehealthandwealthinsurance.Weprovideemotionalwell-beingservicesthroughan

79、EmployeeAssistanceProgram.InresponsetotheCOVID-19pandemic,weimplementedsignificantchangesin2020thatwedeterminedwereinthebestinterestsofourcompany,ouremployeesaswellasthecommunitiesinwhichweoperate.ThevastmajorityofouremployeeshavebeenworkingfromhomesinceMarch2020andwilllikelytocontinuetodosoforatlea

80、stthenextfewquarters.Inaddition,wereducedthesalariesofallofouremployeeswhoseannualbasesalarywasinexcessof$100,000byupto10%fortheperiodfromJune1,2020untilAugust1,2020,andwereducedthesalariesofourseniorexecutivesby20%fromJune1,2020untilAugust1,2020,whichreductionwasreducedto10%fromAugust1,2020untilDec

81、ember31,2020andto0%effectiveasofJanuary1,2021.WehavebeenveryencouragedbyhowouremployeeshaverespondedtothechallengesthathavestemmedfromtheCOVID-19pandemicandhavegenerallymaintainedtheirproductivityundertheevolvingworkingconditions.Communication and EngagementWebelievethatoursuccessdependsupononouremp

82、loyeesunderstandinghowtheirworkcontributestoouroverallstrategyandplans.Tothisend,wetrytocommunicatewithourworkforcethroughavarietyofchannelsandencourageopenanddirectcommunication,includingquarterlycompany-wideCEOupdatemeetings,regularcompany-widecallonavarietyoftopicsofinterestandfrequentemailcorpor

83、atecommunications.7Diversity and InclusionWestrivetopromoteandadvancediversityandinclusionacrossthecountryandwevaluediverseperspectivesandlifeexperiences.Webelievethateveryonedeservesrespectandequaltreatment,regardlessofgender,race,ethnicity,age,disability,sexualorientationgenderidentityculturalback

84、groundorreligiousbelief.Intellectual PropertyOurintellectualpropertyrightsareakeycomponentofoursuccess.Werelyonacombinationofpatent,trademark,copyright,unfaircompetitionandtradesecretlaws,aswellasconfidentialityproceduresandcontractualrestrictions,toestablish,maintainandprotectourproprietaryrights.A

85、sofDecember31,2020,wehadfourissuedpatentsandonepatentapplicationpendingintheUnitedStates.Weownandusetrademarksonorinconnectionwithourproductsandservices,includingtworegisteredtrademarksintheUnitedStates,Canada,theEuropeanUnion,Australia,China,JapanandRussia;oneregisteredmarkinSouthKoreaandSingapore;

86、andunregisteredcommonlawmarksandpendingtrademarkapplicationsintheUnitedStates,CanadaandtheEuropeanUnion.WehavealsoregisterednumerousInternetdomainnames.Available InformationThemailingaddressofourheadquartersis123MissionStreet,27thFloor,SanFrancisco,California94105andourtelephonenumberatthatlocationi

87、s(415)399-2580.O.ThroughalinkontheInvestorCentersectionofourwebsite,wemakeavailablethefollowingfilingsassoonasreasonablypracticableaftertheyareelectronicallyfiledwithorfurnishedtotheSecuritiesandExchangeCommission,ortheSEC:ourAnnualReportonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-K,

88、andanyamendmentstothosereportsfiledorfurnishedpursuanttoSection13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended.Allsuchfilingsarefreeofcharge.TheinformationpostedtoourwebsiteisnotincorporatedintothisAnnualReportonForm10-K.ThepublicmayreadandcopyanymaterialsthatwefilewiththeSECatitswebsiteatwww

89、.sec.gov.Thecontentsofthewebsitesreferredtoabovearenotincorporatedintothisfiling.Further,ourreferencestotheURLsforthesewebsitesareintendedtobeinactivetextualreferencesonly.8ITEM 1A.RISK FACTORSSUMMARY OF RISK FACTORSInvesting in our common stock involves a high degree of risk.You should carefully co

90、nsider the risks and uncertainties described below,together with all of theother information contained in this Annual Report on Form 10-K,including our consolidated financial statements and the related notes thereto,before making adecision to invest in our common stock.The risks and uncertainties su

91、mmarized and described below are not the only ones we face.Additional risks anduncertainties that we are unaware of,or that we currently believe are not material,may also become important factors that affect us.If any of the following risksoccur,our business,financial condition,operating results and

92、 prospects could be materially and adversely affected.In that event,the price of our common stockcould decline,and you could lose part or all of your investment.Risks Related to the COVID-19 PandemicTheCOVID-19globalpandemichasadverselyaffected,andislikelytocontinuetoadverselyaffect,ourbusinessandop

93、eratingresults.Amongotherthings,theCOVID-19globalpandemichascaused,andcouldcontinuetocause,manyofourcustomerstoreducetheirpurchasesofourproductsortoreducetheamountofdigitaladvertisingspendthattheymanageusingourproducts,whichcouldhaveamaterialadverseeffectonourbusiness.Risks Related to our Financial

94、Condition and Future Operating ResultsItisdifficulttopredictourfutureoperatingresults,inparticularbecauseoftheongoingCOVID-19pandemicanditseffectsonourcustomersanddigitaladvertisingspend.Wehaveahistoryoflossesandwemaynotachieveorsustainprofitabilityinthefuture.Weexpecttocontinuetoincurlossesandexper

95、iencenegativecashflows,andwewillneedtoreduceoperatingexpenses,selladditionalsecurities,sellassetsorborrowadditionalfundstocontinueasagoingconcern.Wemayrequireadditionalcapitaltosupportbusinessgrowth,andthiscapitalmightnotbeavailableonacceptableterms,ifatall.Wehaveincurredindebtedness,whichcouldadver

96、selyaffectourabilitytoadjustourbusinesstorespondtocompetitivepressuresandtoobtainsufficientfundstosatisfyourneeds.OurRevenueShareAgreementwithGoogleisscheduledtoterminateonSeptember30,2021,whichcouldhaveamaterialadverseeffectonourfutureresultsofoperationsandfinancialcondition.Wemayexperiencequarterl

97、yfluctuationsinouroperatingresultsduetoanumberoffactors,whichmakeourfutureresultsdifficulttopredict.Risks Related to our Business and MarketIfthemarketfordigitaladvertisingslowsordeclines,ourbusiness,growthprospects,andfinancialconditionwouldbeadverselyaffected.Wemustdevelopandintroduceenhancementsa

98、ndnewfeaturesthatachievemarketacceptanceorthatkeeppacewithtechnologicaldevelopmentstoremaincompetitiveinourevolvingindustry.Ifweareunabletomaintainourrelationshipswith,andaccessto,publishers,advertisingexchangeplatformsandotherplatformsthataggregatethesupplyofadvertisinginventory,ourbusinesswillsuff

99、er.Ourgrowthdependsinpartonthesuccessofourrelationshipswithadvertisingagenciesandourstrategicrelationshipswiththirdparties.Ourmarketishighlycompetitiveandcomplex.Wemaynotbeabletocompetesuccessfullyagainstcurrentandfuturecompetitors.Ourbusinessdependsonourcustomerscontinuedwillingnesstomanageadvertis

100、ingspendonourplatform.9Operational RisksOurbusinessdependsonretainingandattractingqualifiedpersonnel,andturnovermayresultinoperationalinefficienciesthatcouldnegativelyaffectourbusiness.Weincurupfrontcostsassociatedwithonboardingadvertiserstoourplatformandmaynotrecoupourinvestmentifwedonotmaintainthe

101、advertiserrelationshipovertime.Becausewegenerallybillourcustomersoverthetermofthecontract,neartermdeclineinneworrenewedsubscriptionsmaynotbereflectedimmediatelyinouroperatingresults.AnydecreaseinourcustomersuseofsearchadvertisingorourinabilitytofurtherpenetratesocialandeCommerceadvertisingchannelswo

102、uldharmourbusiness.Oursalescyclecanbelongandunpredictableandrequireconsiderabletimeandexpense,whichmaycauseouroperatingresultstofluctuate.Ourabilitytogeneraterevenuedependsonourcollectionofsignificantamountsofdatafromvarioussources.Materialdefectsorerrorsinoursoftwareplatformcouldharmourreputation,r

103、esultinsignificantcoststousandimpairourabilitytoselloursubscriptionservices.Weprimarilyderiveourrevenuesfromasinglesoftwareplatformandanyfactoradverselyaffectingsubscriptionstoourplatformcouldharmourbusinessandoperatingresults.Ifmobileconnecteddevices,theiroperatingsystemsorcontentdistributionchanne

104、ls,includingthosecontrolledbyourcompetitors,developinwaysthatpreventouradvertisingcampaignsfrombeingdeliveredtotheirusers,ourabilitytogrowourbusinesswillbeimpaired.Ifoursecuritymeasuresarebreachedorunauthorizedaccesstocustomerdataorourdataisotherwiseobtained,oursolutionsmaybeperceivedasnotbeingsecur

105、e,customersmayreducetheuseoforstopusingoursolutionsandwemayincursignificantliabilities.Weprimarilyusethird-partydatacenterstodeliverourservices.Anydisruptionofserviceatthesefacilitiescouldharmourbusiness.Wemayneedtocontinuallyimproveourhostinginfrastructuretoavoidserviceinterruptionsorslowersystempe

106、rformance.Oursolutionsmustintegratewithourcustomersenterpriseapplicationsandinfrastructures.Ifwecannotefficientlyimplementoursolutionsforourcustomers,wemaylosecustomers.Ifweareunabletomaintainorexpandoursalesandmarketingcapabilities,wemaynotbeabletogenerateanticipatedrevenues.Anyfailuretoofferhigh-q

107、ualitytechnicalsupportservicesmayadverselyaffectourrelationshipswithourcustomersandharmourfinancialresults.Anyfailuretoprotectourintellectualpropertyrightscouldimpairourabilitytoprotectourproprietarytechnologyandourbrand.Regulatory and Compliance RisksDomesticandforeigngovernmentregulationandenforce

108、mentofdatapracticesanddatatrackingtechnologiesisexpansive,notclearlydefinedandrapidlyevolving.Suchregulationcoulddirectlyrestrictportionsofourbusinessorindirectlyaffectourbusinessbyconstrainingourcustomersuseofourplatformorlimitingthegrowthofourmarkets.Ifourcustomersfailtoabidebyapplicableprivacylaw

109、sortoprovideadequatenoticeand/orobtainconsentfromendusers,wecouldbesubjecttolitigationorenforcementactionorreduceddemandforourservices.Industryself-regulatorystandardsmaybeimplementedinthefuturethatcouldaffectdemandforourplatformandourabilitytoaccessdataweusetoprovideourplatform.Ourrevenuesmaybeadve

110、rselyaffectedifwearerequiredtochargesalestaxesinadditionaljurisdictionsorothertaxesforoursolutions.Ifweexperiencematerialweaknessesordeficienciesinthefutureorotherwisefailtomaintainaneffectivesystemofinternalcontrols,wemaynotbeabletoaccuratelyortimelyreportourfinancialconditionorresultsofoperations,

111、whichmayadverselyaffectinvestorconfidenceinusand,asaresult,thevalueofourcommonstock.Wemaynotbeabletoutilizeasignificantportionofournetoperatinglossorresearchtaxcreditcarryforwards.10Risks Related to the Ownership of Our Common StockIfwecannotmeetthecontinuedlistingrequirementofTheNasdaqGlobalMarket,

112、TheNasdaqGlobalMarketmayde-listourcommonstock,whichwouldhaveanadverseeffectonthetradingvolume,liquidityandmarketpriceofourcommonstock.Themarketpriceofourcommonstockhasbeen,andislikelytocontinuetobe,subjecttowidefluctuationsandcouldsubjectustolitigation.Ifweselladditionalsharesofourcommonstock,theper

113、centageownershipofourstockholderswillbediluted.RISK FACTORSRisks related to the COVID-19 PandemicThe ongoing COVID-19 global pandemic has adversely affected and is likely to continue to adversely affect our business and operating results.AnovelstrainofcoronaviruscausingthediseaseCOVID-19emergedinChi

114、nainDecember2019andbegantospreadglobally,includingtotheUnitedStates,inearly2020.TheWorldHealthOrganizationhasdeclaredCOVID-19tobeapandemic.WebelievethattheongoingCOVID-19pandemichashadandcontinuestohaveanadverseeffectonmanyofourcustomersandtheirbusinessesandtheirspendingondigitaladvertisingandhashad

115、anadverseeffectonourrecentresultsofoperationsandislikelytocontinuetoaffectourfutureresultsofoperations,butthefullimpactoftheCOVID-19pandemicisinherentlyuncertainatthetimeofthisreport.TheCOVID-19pandemichasresultedintravelrestrictions,prohibitionsoforrestrictionsonnon-essentialactivities,disruptionan

116、dshutdownofbusinessesandgreateruncertaintyinglobalfinancialmarkets.WecannotpredicttheextenttowhichtheCOVID-19pandemicwillaffectourbusinessoroperatingresults,whichishighlydependentoninherentlyuncertainfuturedevelopments,includingtheseverityofoutbreaksofCOVID-19,theactionstakenbygovernmentsandprivateb

117、usinessesinrelationtoCOVID-19containmentandtheavailability,deploymentandefficacyofvaccines.Ingeographiesinwhichweorourcustomersoperate,healthconcernsandpoliticalorgovernmentaldevelopmentsinresponsetoCOVID-19haveresultedin,andcouldcontinuetoresultin,economic,socialorlaborinstabilityorprolongedcontrac

118、tionsintheindustriesinwhichourcustomersoperate,slowoursalesprocess,resultincustomersnotpurchasingorrenewingsubscriptionstoourplatformorfailingtomakepayments,andcouldotherwisehaveamaterialadverseeffectonourbusinessandourresultsofoperationsandfinancialcondition.Becauseourplatformisofferedasasubscripti

119、on-basedservice,theeffectofthepandemicmaynotbefullyreflectedinouroperatingresultsuntilfutureperiods,ifatall.Sincemid-March2020,someofourcustomershavereducedtheamountofdigitaladvertisingspendthattheymanageusingourproducts,whichhashadanadverseeffectontheCompanysresultsofoperations,andsomeofourcustomer

120、shaverequestedextendedpaymentterms,reducedfeesorfeewaivers,earlycontractterminationsandotherformsofcontractrelief.Also,sincemid-March2020,mostofouremployeeshavenotbeenabletoworkfromourofficesandhavebeenworkingfromhome,whichcouldcausesomedisruptionordelaysinourbusinessactivities,includingourproductde

121、velopmentefforts.IftheCOVID-19globalpandemiccontinuesforanextendedperiodoftimeorevolvesintoamoresevereworldwidehealthcrisisitcouldhaveamaterialadverseeffectonourbusiness,resultsofoperations,financialconditionandcashflows.Risks related to our Financial Condition and Future Operating ResultsIt is diff

122、icult to predict our future operating results,in particular because of the ongoing COVID-19 pandemic and its effects on our customers and digitaladvertising spend.Ourabilitytoaccuratelyforecastourfutureoperatingresultsislimitedandsubjecttoanumberofuncertainties,includingplanningforandmodelingfutureg

123、rowth.Wehaveencountered,andwillcontinuetoencounter,risksanduncertaintiesfrequentlyexperiencedbygrowingcompaniesinrapidlychangingindustries.Ifourassumptionsregardingtheserisksanduncertainties,whichweusetoplanourbusiness,areincorrectorchangeduetoindustryormarketdevelopments,orifwedonotaddresstheserisk

124、ssuccessfully,ouroperatingresultscoulddiffermateriallyfromourexpectationsandourbusinesscouldsuffer.Specifically,theCOVID-19pandemichasspreadglobally,withtheUnitedStatesasoneofthemainepicentersofthepandemic,andissignificantlyaffectingbothU.S.andworldwideeconomicactivity.WebelievethattheCOVID-19pandem

125、ichashadanadverseeffectonmanyofourcustomersandtheirbusinessesandtheirspendingondigitaladvertisingandhashadanadverseeffectonourrecentresultsof11operationsandislikelytocontinuetoaffectourfutureresultsofoperations.TheCOVID-19pandemiccouldresultinoneormoreofthefollowingconditions,amongotherpotentialcond

126、itions,thatcouldaffectusandourcustomers:increasedriskincollectabilityofaccountsreceivable;reducedstaffproductivityduetoworkingathomeforextendedperiods;loststaffproductivityduetoillnessand/orillnessinthefamily;increasedcustomerlosses/churn;increasedchallengesinacquiringnewcustomers;extremecurrencyexc

127、hange-ratefluctuations;andchallengeswithInternetinfrastructureduetohighloads.ThedurationandscopeoftheCOVID-19pandemicishighlyuncertain.WecontinuetomonitortheeffectthattheCOVID-19outbreakmayhave,andwhileitisnotpossibleatthistimetoestimatetheongoingimpactthatCOVID-19willhaveonourbusiness,thecontinueds

128、preadofCOVID-19,andthemeasurestakenbythegovernmentsofcountriesaffected,willlikelyhaveanadverseimpactonglobaleconomicconditions,whicharelikelytohaveanadverseeffectonourbusinessandfinancialcondition.We have a history of losses and we may not achieve or sustain profitability in the future.Wehaveincurre

129、dsignificantlossesineachfiscalyearsinceourincorporationin2006.Weexperiencedanetlossof$14.1millionand$12.4millionduringtheyearsended2020and2019,respectively.AsofDecember31,2020,wehadanaccumulateddeficitof$291.2million.Thelossesandaccumulateddeficitwereduelargelytothesubstantialinvestmentswemadetogrow

130、ourbusinessandacquirecustomers.Ourcostofrevenuesandoperatingexpensescouldincreaseinthefutureduetoinvestmentstogrowourbusiness,acquirecustomersanddevelopourplatformandnewfunctionality.Theseeffortsmayprovemoreexpensivethanwecurrentlyanticipate,andwemaynotsucceedinincreasingourrevenuessufficientlytooff

131、setthesehigherexpenses.ManyofoureffortstogeneraterevenuesfromourbusinessarenewandunprovenandexacerbatedbytheeffectsoftheCOVID-19pandemic,andanyfailuretoincreaseourrevenuesorgeneraterevenuesfromnewsolutionsortomaintainorincreaserevenuesfromexistingproductsandcustomerscouldpreventusfromattainingorincr

132、easingprofitability.Ourrevenueshavedecreasedinrecentperiods,includingadeclinefrom$49.0millionin2019to$30.0millionin2020.Wedonotexpecttobeprofitablein2021onthebasisofgenerallyacceptedaccountingprinciplesintheUnitedStates,orGAAP,andwecannotbecertainthatwewillbeabletoattainprofitabilityonaquarterlyoran

133、nualbasis,orifwedo,thatwewillsustainprofitability.We expect to continue to incur losses and experience negative cash flows,and we will need to reduce operating expenses,sell additional securities,sell assets orborrow additional funds to continue as a going concern.Wecurrentlyoperateatalossandweantic

134、ipatethatwewillcontinuetohaveoperatinglossesinthenearterm.Ourbusinesshasnotgeneratedenoughcashflowtofundoursalesandmarketingactivities,researchanddevelopmentinitiativesandotherbusinessactivities.Weanticipatethatincreasingourmarketshareforourcurrentservicesthroughsalesandmarketingefforts,continuingde

135、velopmentofnewplatformfeaturesanddeliveringefficientservicetocustomerswillrequireadditionalcapitalandexpendituresandwillbemademorechallenginggiventheeffectsoftheCOVID-19pandemic.Ifwecontinuetoburncashwithoutacorrespondingincreasetorevenue,wewillneedtoreduceoperatingexpensesthroughsuccessfulcost-cutt

136、ingmeasuresorseektoselladditionalsecurities,sellassetsorborrowadditionalfundstocontinueasagoingconcern.Thereisnoguaranteethatwewillbeabletosuccessfullyreduceouroperatingexpensesthroughsuccessfulcostcuttingmeasures.Further,thereisnoguaranteethatwewillreceiveforgivenessofanyamountofourloanunderthePayc

137、heckProtectionProgramorthatwewillbeabletoissueadditionalsecuritiesorsellassetsinfutureperiodsorborrowadditionalfundsoncommerciallyreasonableterms,oratall,inordertomeetourcashneeds.Ourabilitytoraiseadditionalfinancingissubjecttoanumberofuncertainties,includingbutnotlimitedto,themarketdemandforourstoc

138、k,ourfinancialperformanceandoutlook,themarketdemandforproductsandservices,negativeeconomicdevelopments,theeconomiceffectsoftheCOVID-19pandemicandadversemarketconditions.During2020,wecommencedarestructuringplanthatincludedaglobalreduction-in-forceandothercostsavingactionstoreduceouroperatingexpensesa

139、ndaddresstheimpactoftheCOVID-19pandemiconourbusiness,orthe2020RestructuringPlan.The2020RestructuringPlanisexpectedtoultimatelyresultinthereductionofourglobalworkforcebyapproximately60employees,approximatelyhalfofwhicharelocatedoutsideoftheUnitedStates.AsofDecember31,2020,themajorityoftheplannedreduc

140、tionswerecomplete.Ourabilitytocontinueasagoingconcernissubstantiallydependentuponourabilitytoimprovecustomerretentionrates,increasenewbookings,andmanageourcashflows.Otherfactorsthatmaysignificantlyaffectourabilitytocontinueasagoingconcernincludeoneormoreofthefollowing;ourabilitytoobtainpartialforgiv

141、enessofourloanunderthePaycheckProtectionProgram,ourabilitytorenewourrevenuesharingagreementwithGoogleonacceptableterms,ourabilitytoraiseadditionalfinancing,andourabilitytofurtherreduceourexpenses.We may require additional capital to support business growth,and this capital might not be available on

142、acceptable terms,if at all.Weintendtocontinuetomakeinvestmentstosupportourbusinessgrowthandmayrequireadditionalfundstorespondtobusinesschallenges,includingtheneedtodevelopnewfeaturesorenhanceourexistingplatform,continuethedeploymentofMarinOne,improveouroperatinginfrastructureoracquirecomplementarybu

143、sinessesandtechnologies.Accordingly,wemayneedtoengageinequityordebtfinancingstosecureadditionalfunds.Ifweraiseadditionalfundsthroughfurtherissuancesofequityor12convertibledebtsecuritiesourexistingstockholderscouldsuffersignificantdilution,andanynewequitysecuritiesweissuecouldhaverights,preferencesan

144、dprivilegessuperiortothoseofholdersofourcommonstock.ThroughDecember31,2020,wesold3.4millionsharesofourcommonstockunderanequitydistributionagreementwithJMPSecuritiesLLC,orJMPSecurities,andreceivedproceedsofapproximately$9.4million,netofofferingcostsof$0.6million,ataweighted-averagesalespriceof$2.90.D

145、uringtheyearendedDecember31,2020,wesold2.7millionsharesofourcommonstockundertheequitydistributionagreement,andreceivedproceedsofapproximately$7.5million,netofofferingcostsof$0.5million,ataweightedaveragesalespriceof$2.92pershare.The2.7millionsharesofourcommonstockthatweissuedundertheequitydistributi

146、onagreementduring2020increasedthenumberofoutstandingsharesofourcommonstockbyapproximately40%,resultingindilutiontothepercentageownershipofourpreviouslyexistingstockholders.DuringFebruary2021wesoldanadditional1.2millionsharesofourcommonstockundertheequitydistributionagreementandreceivedproceedsof$3.1

147、million,netofofferingcostsof$0.1million,ataweightedaveragesalespriceof$2.68pershare.Therearecurrentlynoadditionalamountsavailabletobesoldunderthisequitydistributionagreement,butweintendtoexploreotheroptionstoraiseadditionalfinancing.InMay2020,weenteredintoaloanagreementwithHarvestSmallBusinessFinanc

148、e,LLC,ortheLender,asthelenderforaloaninanaggregateprincipalamountof$3.3million,ortheLoan,pursuanttothePaycheckProtectionProgramundertheCoronavirusAid,Relief,andEconomicSecurity(CARES)Act.Anyadditionaldebtfinancingsecuredbyusinthefuturecouldinvolverestrictivecovenantsrelatingtoourcapitalraisingactivi

149、tiesandotherfinancialandoperationalmatters,whichmaymakeitmoredifficultforustoobtainadditionalcapitalandtopursuebusinessopportunities,includingpotentialacquisitions.Inaddition,wemaynotbeabletoobtainadditionalfinancingontermsfavorabletous,ifatall.Ifweareunabletoobtainadequatefinancingorfinancingonterm

150、ssatisfactorytous,whenwerequireit,ourabilitytocontinuetosupportourbusinessgrowthandtorespondtobusinesschallengescouldbesignificantlyimpaired.We have incurred indebtedness,which could adversely affect our ability to adjust our business to respond to competitive pressures and to obtain sufficientfunds

151、 to satisfy our needs.InMay2020,weobtainedtheLoanpursuanttothePaycheckProtectionProgrampursuanttotheCARESAct.TheLoanmaturestwoyearsfromthedateoffirstdisbursementoftheLoan,whichoccurredonMay7,2020.TheLoanbearsinterestatarateof1%perannum,withallpaymentsdeferredthroughtheten-monthanniversaryofthedateof

152、thenoteevidencingtheLoan,ortheNote.Principalandinterestarepayablemonthlycommencingonthefirstdayofthenextmonthaftertheexpirationoftheinitialten-monthdefermentperiodandmaybeprepaidbyusatanytimepriortomaturitywithoutpenalty.TheNotespecifiesvariouspotentialdefaults,upontheoccurrenceofwhich,attheLenderso

153、ption,amountsoutstandingundertheNotewouldbecomeimmediatelydueandpayable.TheU.S.DepartmentoftheTreasury,ortheTreasury,andtheU.S.SmallBusinessAdministration,ortheSBA,haveannouncedthattheywillreviewallPayrollProtectionProgramloansthatequalorexceed$2.0million.GuidancefromTreasuryandSBAhasbeenslowtodevel

154、opandoccasionallyunclear.Atthesametime,thePayrollProtectionProgramhasbeenamendedmultipletimeswithsomeamendmentssignificantlyalteringthetimelineassociatedwiththePayrollProtectionProgramspendingandLoanforgiveness.WhilewebelievethatweactedingoodfaithandcompliedwithallrequirementsofthePayrollProtectionP

155、rogram,ifTreasuryorSBAdeterminedthatourLoanapplicationwasnotmadeingoodfaithorthatthewedidnototherwisemeettheeligibilityrequirementsofthePayrollProtectionProgram,wemaynotreceiveforgivenessoftheLoan(inwholeorinpart)andwecouldberequiredtoreturntheLoanoraportionthereof.Further,thereisnoguaranteethatwewi

156、llreceiveforgivenessforanyamountandforgivenesswillbesubjecttoreviewbytheLenderofinformationanddocumentationthatwesubmit,asrequiredbySBAandtheLender.Weintendtoapplyforforgivenessofapproximately$2.9milliondueundertheLoanoncetheLenderopenstheapplicationprocess,withtheamountofpotentialLoanforgivenessbei

157、ngcalculatedinaccordancewiththerequirementsofthePPPbasedonpayrollcosts,anymortgageinterestpayments,anycoveredrentpaymentsandanycoveredutilitiespaymentsduringthe8-weekperiodbeginningonthedateoffirstdisbursementoftheLoan.NoassurancescanbeprovidedastotheamountortimingofanypotentialLoanforgiveness.Anyre

158、quiredrepaymentofourexistingindebtednessasaresultofadefaultwouldreduceourcashonhandsuchthatwewouldnothavethosefundsavailableforuseinourbusiness,whichcouldhaveamaterialadverseeffectonourbusiness,operatingresultsandfinancialcondition.Our Revenue Share Agreement with Google is scheduled to terminate on

159、 September 30,2021,which could have a material adverse effect on our future resultsof operations and financial condition.WeenteredintoarevenueshareagreementwithGoogleinDecember2018,withaneffectivedateofOctober1,2018,ortheGoogleRevenueShareAgreement.UndertheGoogleRevenueShareAgreement,weareeligibleto

160、receivebothfixedandvariablerevenuesharepaymentsbasedonapercentageofthesearchadvertisingspendthatismanagedthroughourplatform.FortheyearendedDecember31,2020,werecognizedrevenuesof$9.1million,andfortheyearendedDecember31,2019werecognizedrevenuesof$12.2millionfromtheGoogleRevenueShareAgreement.TheGoogle

161、RevenueShareAgreementisscheduledtoterminateonSeptember30,2021.WeareinpreliminarydiscussionswithGoogletoextendpotentiallythetermoftheGoogleRevenueShareAgreement,butnoassurancescanbeprovidedastowhetherthetermwillbeextendedorastotermsofanyextension13oftheagreement.Ourresultsofoperationswouldbeadversely

162、affectediftheGoogleRevenueShareAgreementisterminated,eitheruponitsscheduledterminationorotherwise,oradverselymodified.Our usage-based pricing model makes it difficult to forecast revenues from our current customers and future prospects.Weprimarilyhaveausage-basedpricingmodelinwhichmostofourfeesareca

163、lculatedasapercentageofcustomersadvertisingspendmanagedonourplatform.Thispricingmodelmakesitdifficulttoaccuratelyforecastrevenuesbecauseourcustomersadvertisingspendmanagedbyourplatformmayvaryfrommonthtomonthbasedonthevarietyofindustriesinwhichouradvertisersoperate,theseasonalityofthoseindustriesandf

164、luctuationsinourcustomersadvertisingbudgetsorotherfactors.Themarketfordigitaladvertisingmaybeadverselyaffectedbyadversemarketconditions,includingtheeconomiceffectsoftheCOVID-19pandemic,whichhascausedsomeadvertisersto,andmaycontinuetoleadadvertisersto,reducetheamountoftheirdigitaladvertisingspend.Our

165、subscriptioncontractswithourdirectadvertisercustomersgenerallycontainaminimummonthlyplatformfee,whichisgenerallygreaterthanone-halfofourestimatedmonthlyrevenuesfromthecustomeratthetimethecontractissigned,and,asaresult,theminimummonthlyplatformfeemaynotbeagoodindicatorofourrevenuesfromthatcustomer.In

166、addition,advertisersthatuseourplatformthroughouragencycustomerstypicallydonothaveaminimummonthlyspendamountoraminimumtermduringwhichtheymustuseourplatform,andasaresult,ourabilitytoforecastrevenuesfromtheseadvertisersisdifficult.Ifweincorrectlyforecastrevenuesfortheseadvertisersandtheamountofrevenuei

167、slessthanprojectionsweprovidetoinvestors,thepriceofourcommonstockcoulddeclinesubstantially.Additionally,ifweoverestimateusage,wemayincuradditionalexpensesinaddinginfrastructure,withoutacommensurateincreaseinrevenues,whichwouldharmourgrossmarginsandotheroperatingresults.We may experience quarterly fl

168、uctuations in our operating results due to a number of factors which make our future results difficult to predict and could causeour operating results to fall below expectations or our guidance.Ourquarterlyoperatingresultsmayfluctuateduetoavarietyoffactors,manyofwhichareoutsideofourcontrol.Asaresult

169、,comparingouroperatingresultsonaperiod-to-periodbasismaynotbemeaningful.Youshouldnotrelyonourpastresultsasindicativeofourfutureperformance.Ifourrevenuesoroperatingresultsfallbelowtheexpectationsofinvestorsorsecuritiesanalysts,orbelowanyguidancewemayprovidetothemarket,thepriceofourcommonstockcoulddec

170、linesubstantially.Inadditiontootherriskfactorslistedinthissection,factorsthatmayaffectourquarterlyoperatingresultsincludethefollowing:theimpactof,includingbutnotlimitedto,themarketvolatilityandeconomicdisruptioncausedby,COVID-19oranyotherworldwidepandemic;thelevelofadvertisingspendmanagedthroughourp

171、latformforaparticularquarter;fluctuationsinthecontractualratesofourstrategicagreementswithpublishers;customerrenewalrates,andthepricingandusageofourplatforminanyrenewalterm;demandforourplatformandthesizeandtimingofoursales;customersdelayingpurchasingdecisionsinanticipationofnewreleasesbyusorofnewpro

172、ductsbyourcompetitors;anyterminationoradversechangesintheGoogleRevenueShareAgreement,oranychangesinanyothercurrentorfuturestrategicagreementswithpublishers;delaysinprojectstoupgradeourownsoftwareplatforminfrastructureandanyresultingdelaysinreleasingnewfeatures;networkorsystemoutages,platformdowntime

173、,softwareapplicationoroperationserrors,softwarebugs,securitybreachesorothersuppliersystemorsupplychainchangesorinterruptionsandanyassociatedcredits,warrantyclaimsorotherexpenses;changesinthecompetitivedynamicsofourindustry,includingconsolidationamongcompetitorsorcustomers;marketacceptanceofourcurren

174、tandfuturesolutions;changesinspendingondigitaladvertisingorinformationtechnologyandsoftwarebyourcurrentand/orprospectivecustomers;budgetingcyclesofourcustomers;departuresofemployeesorrestructuringsofourteamsorpersonnel;ourpotentiallylengthysalescycle;ourabilitytocontrolcosts,includingouroperatingexp

175、enses;14theamountandtimingofinfrastructurecostsandoperatingexpensesrelatedtothemaintenanceorexpansionofourbusiness,operationsandinfrastructure;foreigncurrencyexchangeratefluctuations;andgeneraleconomicandpoliticalconditionsinourdomesticandinternationalmarkets.Baseduponallofthefactorsdescribedabove,w

176、ehavealimitedabilitytoforecastourfuturerevenues,costsandexpenses,andasaresult,ouroperatingresultsmayfromtimetotimefallbelowourestimatesortheexpectationsofpublicmarketanalystsandinvestors.Risks related to our Business and MarketIf the market for digital advertising slows or declines,our business,grow

177、th prospects,and financial condition would be adversely affected.Thefuturegrowthofourbusinesscouldbeconstrainedbythelevelofacceptanceandexpansionofemergingcloud-basedadvertisingchannels,aswellasthecontinueduseandgrowthofexistingchannels,suchassearchandsocialadvertising.Evenifthesechannelsbecomewidel

178、yadopted,advertisersandagenciesmaynotmakesignificantinvestmentsinsolutionssuchasoursthathelpthemmanagetheirdigitaladvertisingspendacrosspublisherplatformsandadvertisingchannels.Itisdifficulttopredictcustomeradoptionrates,customerdemandforourplatform,thefuturegrowthrateandsizeoftheadvertisingcloudsol

179、utionsmarketortheentryofcompetitivesolutions.Themarketfordigitaladvertisingmaybeadverselyaffectedbyadversemarketconditions,includingtheeconomiceffectsoftheCOVID-19pandemic,whichhascausedsomeadvertisersto,andmaycontinuetoleadadvertisersto,reducetheamountoftheirdigitaladvertisingspend.Thecontinuedexpa

180、nsionofthemarketforadvertisingcloudsolutionsdependsonanumberoffactors,includingthecontinuedgrowthofthecloud-basedadvertisingmarket,thegrowthofsocialandmobileasadvertisingchannelsandthecost,performanceandperceivedvalueassociatedwithadvertisingcloudsolutions,aswellastheabilityofcloudcomputingcompanies

181、toaddresssecurityandprivacyconcerns.Further,thecloudcomputingmarketislessdevelopedinmanyjurisdictionsoutsidetheUnitedStates.Ifweorothercloudcomputingprovidersexperiencesecurityincidents,lossofcustomerdata,disruptionsindeliveryorotherproblems,themarketforcloudcomputingasawhole,includingourapplication

182、s,maybenegativelyaffected.We operate in a rapidly developing and changing industry,which makes it difficult to evaluate our current business and future prospects.Wehaveencounteredandwillcontinuetoencounterrisksanddifficultiesfrequentlyexperiencedbycompaniesinrapidlydevelopingandchangingindustries,in

183、cludingchallengesinforecastingaccuracy,hiringandretainingqualifiedemployees,determiningappropriateinvestmentsofourlimitedresources,marketacceptanceofourexistingandfuturesolutions,effectivelyintegratingacquiredproducts,competitionfromestablishedcompanieswithgreaterfinancialandtechnicalresources,acqui

184、ringandretainingcustomers,managingcustomerdeployments,makingimprovementstoourexistingproductsanddevelopingnewsolutions.Additionally,theeffectsoftheCOVID-19pandemichavemadethesechallengesmorepronounced.Ourcurrentoperationsinfrastructuremayrequirechangesinorderforustoachieveprofitabilityandscaleourope

185、rationsefficiently.Forexample,wemayneedtoautomateportionsofoursolutiontodecreaseourcosts,ensureourmarketinginfrastructureisdesignedtodrivehighlyqualifiedleadscosteffectivelyandimplementchangesinoursalesmodeltoimprovethepredictabilityofoursalesandreduceoursalescycle.Inaddition,fromtimetotime,wemaynee

186、dtomakeadditionalinvestmentsinproductdevelopmenttoaddressmarketdemands,whichmayincreaseouroverallexpensesandreduceourabilitytoachieveprofitability.Ifwefailtoimplementthesechangesinatimelymannerorareunabletoimplementthemduetofactorsbeyondourcontrol,ourbusinessmaysuffer,ourrevenuemaydeclineandwemaynot

187、beabletoachievegrowthorprofitability.Wecannotbeassuredthatwewillbesuccessfulinaddressingtheseandotherchallengeswemayfaceinthefuture.We must develop and introduce enhancements and new features that achieve market acceptance or that keep pace with technological developments to remaincompetitive in our

188、 evolving industry.Weoperateinadynamicmarketcharacterizedbyrapidlychangingtechnologiesandindustryandlegalstandards.Theintroductionofnewadvertisingplatformsolutionsbyourcompetitors,themarketacceptanceofsolutionsbasedonneworalternativetechnologies,ortheemergenceofnewindustrystandardscouldrenderourplat

189、formobsolete.Ourabilitytocompetesuccessfully,attractnewcustomersandincreaserevenuesfromexistingcustomersdependsinlargepartonourabilitytoenhanceandimproveourexistingcross-channel,cross-device,enterprisemarketingsoftwareplatformandtocontinuallyintroduceoracquirenewfeaturesthatareindemandbythemarketwes

190、erve.Wealsomustupdateoursoftwaretoreflectchangesinpublishersapplicationprogramminginterfaces,orAPIs,andtermsofuse.Weareintheprocessofdeployingournewplatform,MarinOne,andthesuccessofthisprojectoranyotherenhancementornewsolutiondependsonseveralfactors,includingtimelycompletion,adequatequalitytesting,e

191、ffectivemigrationofexistingcustomerswithminimaldisruptionandappropriateintroductionandmarketacceptance.Anynewplatformor15featurethatwedeveloporacquiremaynotbeintroducedinatimelymanner,maycontaindefects,maybemorecostlytocompetethanweanticipateormaynotachievethebroadmarketacceptancenecessarytogenerate

192、significantrevenues.Ifweareunabletocompletetheupgradetooursoftwareplatforminfrastructureeffectivelyorinatimelymanner,ortoanticipateortimelyandsuccessfullydeveloporacquirenewofferingsorfeaturesorenhanceourexistingplatformtomeetcustomerrequirements,ourbusinessandoperatingresultswillbeadverselyaffected

193、.If we are unable to maintain our relationships with,and access to,publishers,advertising exchange platforms and other platforms that aggregate the supply ofadvertising inventory,our business will suffer.Wecurrentlydependonrelationshipswithvariouspublishers,includingAmazon,Apple,Baidu,Bing,Facebook,

194、Google,Instagram,Pinterest,Twitter,VerizonMediaandYahoo!.OursubscriptionservicesinterfacewiththesepublishersplatformsthroughAPIs,suchastheGoogleAPIorFacebookAPI.WearesubjecttotherespectiveplatformsstandardAPItermsandconditions,whichgoverntheuseanddistributionofdatafromtheseplatforms.Ourbusinesssigni

195、ficantlydependsonhavingaccesstotheseAPIs,particularlytheGoogleAPI,whichthesubstantialmajorityofourcustomersuse,oncommerciallyreasonabletermsandourbusinesswouldbeharmedifanyofthesepublishers,advertisingexchangesoraggregatorsofadvertisinginventorydiscontinuesorlimitsaccesstotheirplatforms,modifiesthei

196、rtermsofuseorotherpoliciesorplaceadditionalrestrictionsonusasAPIusers,orchargesAPIlicensefeesforAPIaccess.Moreover,someofthesepublishers,suchasGoogle,marketcompetitivesolutionsfortheirplatforms.BecausetheadvertisinginventorysupplierscontroltheirAPIs,theymaydevelopcompetitiveofferingsthatarenotsubjec

197、ttothelimitsimposedonusthroughtheAPItermsandconditions.Currently,restrictionsintheseAPIagreementslimitourabilitytoimplementcertainfunctionality,requireustoimplementfunctionalityinaparticularmannerorrequireustoimplementcertainrequiredminimumfunctionality,causingustodevotedevelopmentresourcestoimpleme

198、ntcertainfunctionalitythatwewouldnototherwiseincludeinoursubscriptionservicesandtoincurcostsforpersonneltoprovideservicestoimplementfunctionalitythatweareprohibitedfromautomating.Publishers,advertisingexchangesandadvertisinginventoryaggregatorsupdatetheirAPItermsofusefromtimetotimeandnewversionsofth

199、esetermscouldimposeadditionalrestrictionsonus.Inaddition,publishers,advertisingexchangesandadvertisinginventoryaggregatorscontinuallyupdatetheirAPIsandmayupdateormodifyfunctionality,whichrequiresustomodifyoursoftwaretoaccommodatethesechangesandtodevotetechnicalresourcesandpersonneltotheseeffortswhic

200、hcouldotherwisebeusedtofocusonotherpriorities.Anyoftheseoutcomescouldcausedemandforourproductstodecrease,ourresearchanddevelopmentcoststoincrease,andourresultsofoperationsandfinancialconditiontobeharmed.Wehavealsoenteredintolong-termstrategicagreementswithcertainleadingsearchpublishers.Underthesestr

201、ategicagreements,wereceiveconsiderationbasedonapercentageofthesearchadvertisingspendthatourcustomersmanageonourplatform.Themajorityofourstrategicagreementrevenueisconcentratedinonerevenueshareagreement,executedwithGoogleinDecember2018,withaneffectivedateofOctober1,2018,ortheGoogleRevenueShareAgreeme

202、nt.UndertheGoogleRevenueShareAgreement,wereceivebothfixedandvariablerevenuesharepaymentsbasedonapercentageofthesearchadvertisingspendthatismanagedthroughourplatform.FortheyearendedDecember31,2020,werecognizedrevenuesof$9.1millionandfortheyearendedDecember31,2019werecognizedrevenuesof$12.2millionfrom

203、theGoogleRevenueShareAgreement.TheGoogleRevenueShareAgreementhasathree-yeartermandisscheduledtoterminateonSeptember30,2021.WeareindiscussionswithGoogletoextendpotentiallythetermoftheGoogleRevenueShareAgreement,butnoassurancescanbeprovidedastowhetherthetermwillbeextendedorastotermsofanyextensionofthe

204、agreement.OurresultsofoperationswouldbeadverselyaffectediftheGoogleRevenueShareAgreementisterminated,eitheruponitsscheduledterminationorotherwise,oradverselymodified.Our growth depends in part on the success of our relationships with advertising agencies and our strategic relationships with third pa

205、rties.Ourfuturegrowthwilldepend,inpart,onourabilitytoenterintosuccessfulrelationshipswithadvertisingagencies.Identifyingagenciesandnegotiatinganddocumentingrelationshipswiththemrequiressignificanttimeandresources.Theserelationshipsmaynotresultinadditionalcustomersorenableustogeneratesignificantreven

206、ues.Ourcontractsfortheserelationshipsaretypicallynon-exclusiveanddonotprohibittheagencyfromworkingwithourcompetitorsorfromofferingcompetingservices.Frequently,theseagenciesdoinfactworkwithourcompetitorsandcompetewithus.Inaddition,weoftenworkwith,orseektoworkwith,high-profilebrandsdirectly.Thismaynot

207、bepossiblewhere,forexample,thosebrandsobtainadvertisingservicesexclusivelyorprimarilyfromadvertisingagencies.Wegenerallybillagenciesfortheircustomersuseofourplatform,butinmostcasestheagencyscustomerhasnodirectcontractualcommitmenttomakepaymenttous.Furthermore,someoftheseagencycontractsincludeprovisi

208、onswherebytheagencyisnotliableformakingpaymenttousforoursubscriptionservicesiftheagencydoesnotreceiveacorrespondingpaymentfromitsclientonwhosebehalfthesubscriptionserviceswererendered.Theseprovisionsmayresultinlongercollectionsperiodsorourinabilitytocollectpaymentforsomeofoursubscriptionservices.Ifw

209、eareunsuccessfulinestablishingormaintainingourrelationshipswiththeseagenciesoncommerciallyreasonableterms,oriftheserelationshipsarenotprofitableforus,ourabilitytocompeteinthemarketplaceortogrowourrevenuescouldbeimpairedandouroperatingresultswouldsuffer.16Ourfuturegrowthwillalsodepend,inpart,onourabi

210、litytoenter-intoandretainsuccessfulstrategicrelationshipswiththird-parties.Forexample,weareseekingtoestablishrelationshipswiththird-partiestodevelopintegrationswithcomplementarytechnologyandcontent.Theserelationshipsmaynotresultinadditionalcustomersorenableustogeneratesignificantrevenues.Forexample,

211、weenteredintotheGoogleRevenueShareAgreementwherewereceivebothfixedandvariablerevenuesharepaymentsbasedonapercentageofthesearchadvertisingspendthatismanagedthroughourplatform.Identifyingpartnersandnegotiatinganddocumentingrelationshipswiththemrequiresignificanttimeandresources.Ourcontractsfortheserel

212、ationshipsaretypicallynon-exclusiveanddonotprohibittheotherpartyfromworkingwithourcompetitorsorfromofferingcompetingservices.Ifweareunsuccessfulinestablishingormaintainingourrelationshipswiththesethirdparties,ourabilitytocompeteinthemarketplaceortogrowourrevenuescouldbeimpairedandouroperatingresults

213、wouldsuffer.We may not be able to compete successfully against current and future competitors.Theoverallmarketforadvertisingcloudsolutionsisrapidlyevolving,highlycompetitive,complex,fragmented,andsubjecttochangingtechnologyandshiftingcustomerneeds.Wefacesignificantcompetitioninthismarketandweexpectc

214、ompetitiontointensifyinthefuture.Wecurrentlycompetewithlarge,well-establishedcompanies,suchasAdobeSystemsIncorporatedandGoogleInc.,andprivatelyheldcompanies,suchasKenshooLtd.Wealsocompetewithchannel-specificofferings,in-houseproprietarytools,toolsfrompublishersandcustomsolutions,includingspreadsheet

215、s.Increasedcompetitionmayresultinreducedpricingforoursolutions,longersalescyclesoradecreaseofourmarketshare,anyofwhichcouldnegativelyaffectourrevenuesandfutureoperatingresultsandourabilitytogrowourbusiness.Anumberofcompetitivefactorscouldcauseustolosepotentialsalesortoselloursolutionsatlowerpricesor

216、atreducedmargins,including,amongothers:publishersgenerallyoffertheirtoolsforfree,oratareducedprice,astheirprimarycompensationisviathesaleofadvertisingontheirownorsyndicatedwebsites;someofourcompetitors,suchasAdobe,FacebookandGoogle,havegreaterfinancial,marketingandtechnicalresourcesthanwedo,allowing

217、themtoleveragealargerinstalledcustomerbase,adoptmoreaggressivepricingpolicies,anddevotegreaterresourcestothedevelopment,promotionandsaleoftheirproductsandservicesthanwecan;channel-specificcompetitors,suchasKenshooLtd.andSmartly.io,maydevotegreaterresourcestothedevelopment,promotionandsaleoftheirchan

218、nel-specificproductsandservicesthanwecan;companiesmayenterourmarketbyexpandingtheirplatformsoracquiringacompetitor;andpotentialcustomersmaychoosetodeveloporcontinuetouseinternalsolutionsratherthanpayingforoursolutionsormaychoosetouseacompetitorssolutionthathasdifferentoradditionaltechnicalcapabiliti

219、es.Wecannotassureyouthatwewillbeabletocompetesuccessfullyagainstcurrentandfuturecompetitors.Ifwecannotcompetesuccessfully,ourbusiness,resultsofoperationsandfinancialconditioncouldbenegativelyimpacted.In2020U.S.federalandstateandforeigngovernmentsandregulatoryagenciesinitiatedlawsuitsorinvestigations

220、againstGoogleandFacebookrelatedtocertainoftheiranticompetitivebusinesspracticesandconductinthedigitaladvertisingandsocialmediaindustriesandwecannotbecertainastohowsuchlawsuitsandinvestigationsmightaffectGoogleorFacebookorotherwiseaffectthedigitaladvertisingindustry.Our business depends on our custom

221、ers continued willingness to manage advertising spend on our platform.Inorderforustoimproveouroperatingresults,itisimportantthatourcustomerscontinuetomanagetheiradvertisingspendonourplatform,increasetheirusageandalsopurchaseadditionalsolutionsfromus.Inthecaseofourdirectadvertisercustomers,weofferour

222、solutionsprimarilythroughsubscriptioncontractsandgenerallybillcustomersovertherelatedsubscriptionperiod,whichisgenerallyoneyearorlonger.Duringthetermoftheircontracts,ourdirectadvertisercustomersgenerallyhavenoobligationtomaintainorincreasetheiradvertisingspendonourplatformbeyondaspecifiedminimummont

223、hlyplatformfee,whichistypicallysetatthetimethecontractissignedandisgenerallygreaterthanhalfofthemonthlyamountweanticipatethecustomerwillspend.Ourdirectadvertisercustomersgenerallyhavenorenewalobligationaftertheinitialorthen-currentrenewalsubscriptionperiodexpires,andevenifcustomersrenewcontracts,the

224、ymaydecreasetheleveloftheirdigitaladvertisingspendmanagedthroughourplatform,resultinginlowerrevenuesfromthatcustomer.Advertisersthatweservethroughourarrangementswithouradvertisingagenciesgenerallydonothaveanycontractualcommitmenttouseourplatform.Ourcustomersusagemaydeclineorfluctuateasaresultofanumb

225、eroffactors,including,butnotlimitedto,theirsatisfactionwithourplatformandourcustomersupport,thefrequencyandseverityofoutages,thepricingofour,orcompeting,solutions,theeffectsofglobaleconomicconditionsandreductionsinspendinglevelsorchangesinourcustomersstrategiesregardingdigitaladvertising.Wemaynotbea

226、bletoaccuratelypredictfutureusagetrends.Ifourcustomersrenewonlessfavorabletermsorreducetheiradvertisingspendonourplatform,ourrevenuesmaygrowmoreslowlythanexpectedordecline.17Unfavorable conditions in the market for digital advertising or the global economy or reductions in digital advertising spend

227、could negatively affect ouroperating results.Potentialrevenuegrowthandprofitabilityofourbusinessdependsondigitaladvertisingspendbyadvertisersinthemarketsweserve.Ouroperatingresultsmayvarybasedonchangesinthemarketfordigitaladvertisingortheglobaleconomy.Totheextentthatweakeconomicconditionscauseourcus

228、tomersandpotentialcustomerstofreezeorreducetheiradvertisingbudgets,particularlydigitaladvertising,demandforoursolutionmaybenegativelyaffected.Historically,economicdownturnshaveresultedinoverallreductionsinadvertisingspend.Ifeconomicconditionsdeteriorateortheriseofgeopoliticalinstabilityandmilitaryho

229、stilitiesorglobalhealthemergenciesandpandemicssuchasCOVID-19causeseconomicuncertainty,ourcustomersandpotentialcustomersmayelecttodecreasetheiradvertisingbudgetsordeferorreconsidersoftwareandservicepurchases,whichwouldlimitourabilitytogrowourbusinessandnegativelyaffectouroperatingresults.Operational

230、RisksOur business depends on retaining and attracting qualified personnel,and turnover may result in operational inefficiencies that could negatively affect ourbusiness.Oursuccessdependsuponthecontinuedserviceofourtalentedmanagement,operationalandkeytechnicalemployees,aswellasourabilitytocontinuetoa

231、ttractadditionalhighlyqualifiedtalent.Wehaveexperiencedturnover,including,inDecember2019,thedepartureofourformerchieffinancialofficerandthepromotionofRobertBertztochieffinancialofficer.Also,thepreviousmanagersofoursalesteamandourcustomerserviceteamslefttheCompanyduringthequarterendedSeptember30,2020

232、.Inaddition,duringthequarterendedSeptember30,2020,wecommencedaglobalreduction-in-forceandotherrestructuringactionstoreduceouroperatingexpensesandaddresstheimpactoftheCOVID-19pandemiconourbusiness.The2020RestructuringPlanisexpectedtoultimatelyresultinthereductionofourglobalworkforcebyapproximately60e

233、mployees,approximatelyhalfofwhicharelocatedoutsideoftheUnitedStates.AsofDecember31,2020,themajorityoftheplannedreductionswerecomplete.Thesechanges,andanyfuturechanges,inouroperationsandmanagementteamcouldbedisruptivetoouroperations.Ourrestructuringactionsandanyfuturerestructuringactionsoremployeeatt

234、ritioncouldhaveanadverseeffectonourbusinessasaresultofoperationalandadministrativeinefficienciesandaddedcosts,decreasesinemployeemoraleandthefailuretomeetoperationaltargetsduetothelossofemployees.Ifkeyemployeesleave,wemaynotbeabletofullyintegratenewpersonnelorreplicatethepriorworkingrelationships,wh

235、ichcouldadverselyaffectourresultsofoperations,stockpriceandcustomerrelationships,andcouldmakerecruitingforfuturemanagementandotherpositionsmoredifficult.Inaddition,wemustsuccessfullyintegrateanynewseniormanagementandothernewpersonnelwithinourorganizationinordertoachieveouroperatingobjectives,andchan

236、gesinotherkeypositionsmaytemporarilyaffectourfinancialperformanceandresultsofoperationsasnewemployeesbecomefamiliarwithourbusiness.Wedonotmaintainkeypersonlifeinsurancepoliciesonanyofouremployees.Eachofourexecutiveofficers,keytechnicalpersonnelandotheremployeescouldterminatehisorherrelationshipwithu

237、satanytime.Ourbusinessalsorequiresskilledtechnical,salesandotherpersonnel,whoareinhighdemandandareoftensubjecttocompetingoffers.Ifweexpandintoadditionalgeographicmarkets,wewillrequirepersonnelwithexpertiseinthesenewareas.CompetitionforqualifiedemployeesisintenseinourindustryandparticularlyinSanFranc

238、isco,California.Inaddition,wemayconsiderexpandingourboardofdirectorstoaddnewexperienceandexpertisetoourboardandtocomplywithpendingboarddiversityrequirements.Boardcandidatesmaybedifficultandexpensivetorecruitandretainandwemayincurpenaltiesifwefailtocomplywithboarddiversityrequirementsbyapplicabledead

239、lines.Aninabilitytoretain,attract,relocateandmotivateemployeesanddirectorsrequiredforourbusinesscoulddelayorpreventtheachievementofourbusinessobjectivesandcouldmateriallyharmourbusinessandourcustomerrelationships.We incur upfront costs associated with onboarding advertisers to our platform and may n

240、ot recoup our investment if we do not maintain the advertiserrelationship over time.Ouroperatingresultsmaybenegativelyaffectedifweareunabletorecoupourupfrontcostsforonboardingnewadvertiserstoourplatform.Upfrontcostswhenaddingnewadvertisersgenerallyincludesalescommissionsforoursalesforce,expensesasso

241、ciatedwithenteringcustomerdataintoourplatformandotherimplementation-relatedcosts.Becauseourcustomers,includingdirectadvertisersandagencies,arebilledoverthetermofthecontract,ifnewcustomerssigncontractswithshortinitialsubscriptionperiodsanddonotrenewtheirsubscriptions,orotherwisedonotcontinuetouseourp

242、latformtoalevelthatgeneratesrevenuesinexcessofourupfrontexpenses,ouroperatingresultscouldbenegativelyimpacted.Incasesinwhichtheimplementationprocessisparticularlycomplex,therevenuesresultingfromthecustomerunderourcontractmaynotcovertheupfrontinvestment;therefore,ifasignificantnumberofthesecustomersd

243、onotrenewtheircontracts,itcouldnegativelyaffectouroperatingresults.Inaddition,becausewecapitalizecertainupfrontcoststoobtainandfulfillcontractsunderauthoritativeaccountingguidance,wecouldberequiredtorecordimpairmentexpensefortheseupfrontcoststhatarenotcoveredbytheunderlyingrevenues.18Because we gene

244、rally bill our customers over the term of the contract,near term decline in new or renewed subscriptions may not be reflected immediately inour operating results.Mostofourrevenuesineachquarterarederivedfromcontractsenteredintowithourcustomersduringpreviousquarters.Consequently,adeclineinneworrenewed

245、subscriptionsinanyonequartermaynotbefullyreflectedinourrevenuesforthatquarter.Suchdeclines,however,wouldnegativelyaffectourrevenuesinfutureperiodsandtheeffectofsignificantdownturnsinsalesandmarketacceptanceofoursolutions,andpotentialchangesinourrateofrenewalsorrenewalterms,maynotbefullyreflectedinou

246、rresultsofoperationsuntilfutureperiods.Inaddition,wemaybeunabletoadjustourcoststructurerapidly,oratall,totakeaccountofreducedrevenues.Oursubscriptionmodelalsomakesitdifficultforustorapidlyincreaseourtotalrevenuesthroughadditionalsalesinanyperiod,asrevenuesfromnewcustomersmustbeearnedovertheapplicabl

247、esubscriptiontermbasedonthevalueoftheirmonthlyadvertisingspend.We have been dependent on our customers use of search advertising.Any decrease in the use of search advertising or our inability to further penetrate socialand eCommerce advertising channels would harm our business,growth prospects,opera

248、ting results and financial condition.Historically,ourcustomershaveprimarilyusedoursolutionsformanagingtheirsearchadvertising,includingmobilesearchadvertising,andthesubstantialmajorityofourrevenueisderivedfromadvertisersthatuseourplatformtomanagetheirsearchadvertising.Weexpectthatsearchadvertisingwil

249、lcontinuetobetheprimarychannelusedbyourcustomersfortheforeseeablefuture.Shouldourcustomersloseconfidenceinthevalueoreffectivenessofsearchadvertising,orifsearchadvertisinggrowthmoderatesordeclines,thedemandforoursolutionsmaydecline,anditmaynegativelyimpactourrevenues.Inaddition,ourfailuretoachievemar

250、ketacceptanceofoursolutionforthemanagementofsocialandeCommerceadvertisingspendwouldharmourgrowthprospects,operatingresultsandfinancialcondition.Our sales cycle can be long and unpredictable and require considerable time and expense,which may cause our operating results to fluctuate.Thesalescycleforo

251、ursolutions,frominitialcontactwithapotentialleadtocontractexecutionandimplementation,varieswidelybycustomer,butcantakebetweenthreeandninemonths.Someofourcustomersundertakeasignificantevaluationprocessthatfrequentlyinvolvesnotonlyoursolutionsbutalsothoseofourcompetitors,whichhasinthepastresultedinext

252、endedsalescycles.Oursaleseffortsinvolveeducatingourcustomersabouttheuse,technicalcapabilitiesandbenefitsofourplatform.Inaddition,undercertaincircumstances,wesometimesofferaninitialterm,typicallyofafewmonthsinduration,tonewcustomerswhomayterminatetheirsubscriptionatanytimeduringthisinitialperiodbefor

253、ethefixedtermcontractcommences.Wehavenoassurancethatthesubstantialtimeandmoneyspentonoursaleseffortswillproduceanysales.Ifoursaleseffortsresultinanewcustomersubscription,thecustomermayterminateitssubscriptionduringtheinitialperiod,afterwehaveincurredtheexpensesassociatedwithenteringthecustomersdatai

254、nourplatformandrelatedtrainingandsupport.Ifsalesexpectedfromacustomerarenotrealizedinthetimeperiodexpectedornotrealizedatall,orifacustomerterminatesduringtheinitialperiod,ourbusiness,operatingresultsandfinancialconditioncouldbeadverselyaffected.Historically,asignificantportionoffieldsalesandprofessi

255、onalserviceswereconductedinperson.Currently,asaresultoftheworkandtravelrestrictionsrelatedtotheongoingCOVID-19pandemic,substantiallyallofoursalesandprofessionalservicesactivitiesarebeingconductedremotely.Asofthedateofthisreport,wedonotyetknowtheextentofthenegativeimpactonourabilitytoattract,serve,re

256、tainorupsellcustomers.Our ability to generate revenue depends on our collection of significant amounts of data from various sources.OurabilitytooptimizethedeliveryofInternetadvertisementsforourcustomersdependsonourabilitytosuccessfullyleveragedata,includingdatathatwecollectfromourcustomersaswellasda

257、taprovidedbypublishersandfromthirdparties.Usingcookiesandsimilartrackingtechnologies,wecollectinformationabouttheinteractionofuserswithouradvertisersandpublisherswebsites.Ourabilitytosuccessfullyleveragesuchdataisdependentuponourcontinuedabilitytoaccessandutilizesuchdata.Ourabilitytoaccessandusesuch

258、datacouldberestrictedbyanumberoffactors,includingconsumerchoice,restrictionsimposedbyadvertisersandpublishers,changesintechnology,andnewdevelopmentsinlaws,regulations,andindustrystandards.Ifconsumerresistancetothecollectionandsharingofthedatausedtodelivertargetedadvertising,increasedvisibilityofcons

259、ent/DoNotTrackmechanismsasaresultofindustryregulatoryand/orlegaldevelopments,and/orthedevelopmentanddeploymentofnewtechnologiesresultinamaterialimpactonourabilitytocollectdata,thiswillmateriallyimpairtheresultsofouroperations.Material defects or errors in our software platform could harm our reputat

260、ion,result in significant costs to us and impair our ability to sell our subscriptionservices.Thesoftwareapplicationsunderlyingoursubscriptionservicesareinherentlycomplexandmaycontainmaterialdefectsorerrors,whichmaycausedisruptionsinavailability,misallocationofadvertisingspendorotherperformanceprobl

261、ems.Anysucherrors,defects,disruptionsinserviceorotherperformanceproblemswithoursoftwareplatform,includingthoseresultingfromnewversionsorupdatestooursoftwareplatformorfromchangesorinterruptionstothirdpartyapplicationsorsystemsthatweinterconnectwith,couldnegativelyimpactourcustomersbusinessesorthesucc

262、essoftheiradvertisingcampaignsandcauseharmto19ourreputation.Ifwehaveanyerrors,defects,disruptionsinserviceorotherperformanceproblemswithoursoftwareplatform,customerscouldelectnottoreneworreducetheirusageordelayorwithholdpaymenttous,whichcouldresultinanincreaseinourprovisionfordoubtfulaccountsoraninc

263、reaseinthelengthofcollectioncyclesforaccountsreceivable.Errors,defects,disruptionsinserviceorotherperformanceproblemscouldalsoresultincustomersmakingwarrantyorotherclaimsagainstus,ourgivingcreditstoourcustomerstowardfutureadvertisingspendorcostlylitigation.Changesorinterruptionstothirdpartyapplicati

264、onsorsystemsthatweinterconnectwithcouldcauseustoincursignificanttimeandexpensetoremedysuchissuesordevelopintegrationswithotherthird-partysuppliers.Asaresult,materialdefectsorerrorsinourplatformcouldhaveamaterialadverseimpactonourbusinessandfinancialperformance.Thecostsincurredincorrectinganymaterial

265、defectsorerrorsinoursoftwareplatformmaybesubstantialandcouldadverselyaffectouroperatingresults.Afterthereleaseofnewversionsofoursoftware,defectsorerrorsmaybeidentifiedfromtimetotimebyourinternalteamandbyourcustomers.Weimplementbugfixesandupgradesaspartofourregularlyscheduledsystemmaintenance.Ifwedon

266、otcompletethismaintenanceaccordingtoscheduleorifcustomersareotherwisedissatisfiedwiththefrequencyand/ordurationofourmaintenanceservices,customerscouldelectnottorenew,ordelayorwithholdpaymenttous,orcauseustoissuecredits,makerefundsorpaypenalties.We primarily derive our revenues from a single software

267、 platform and any factor adversely affecting subscriptions to our platform could harm our businessand operating results.Weprimarilyderiveourrevenuesfromsalesofasinglesoftwareplatform.Assuch,anyfactoradverselyaffectingsubscriptionstoourplatform,includingproductreleasecycles,marketacceptance,productco

268、mpetition,performanceandreliability,reputation,pricecompetition,andeconomicandmarketconditions,couldharmourbusinessandoperatingresults.If mobile connected devices,their operating systems or content distribution channels,including those controlled by our competitors,develop in ways thatprevent our ad

269、vertising campaigns from being delivered to their users,our ability to grow our business will be impaired.Oursuccessinthemobilechanneldependsupontheabilityofourtechnologyplatformtointegratewithmobileinventorysuppliersandprovideadvertisingformostmobileconnecteddevices,aswellasthemajoroperatingsystems

270、thatrunonthemandtheapplicationsthataredownloadedontothem.Forexample,thereleaseofiOS14broughtwithitanumberofnewchanges,includingtheneedforappuserstoopt-inbeforetheiridentifierforadvertisers,orIDFA,canbeaccessedbyanapp(whichiscurrentlyexpectedtocomeintoeffectin2021).ApplesIDFAisastringofnumbersandlett

271、ersassignedtoAppledeviceswhichadvertisersusetoidentifyappuserstodeliverpersonalizedandtargetedadvertising.AlthoughMarindoesntrelyheavilyonIDFA,lowopt-inratestograntIDFAaccessmayresultinadvertisersrethinkingtheirconversiontrackingstrategy.Anyreducedabilityofadvertiserstoaccuratelytargetandmeasurethei

272、radvertisingcampaignsmaycausespendfluctuations.Further,thedesignofmobiledevicesandoperatingsystemsiscontrolledbythirdpartieswithwhomwedonothaveanyformalrelationships.Thesepartiesfrequentlyintroducenewdevices,andfromtimetotimetheymayintroducenewoperatingsystemsormodifyexistingones.Networkcarriersmaya

273、lsoimpacttheabilitytoaccessspecifiedcontentonmobiledevices.Ifoursolutionwereunabletoworkonthesedevicesoroperatingsystems,eitherbecauseoftechnologicalconstraintsorbecauseanoperatingsystemorappdeveloper,devicemakerorcarrierwishedtoimpairourabilitytopurchaseinventoryandprovideadvertisements,ourabilityt

274、ogeneraterevenuecouldbesignificantlyharmed.If our security measures are breached or unauthorized access to customer data or our data is otherwise obtained,our solutions may be perceived as not beingsecure,customers may reduce the use of or stop using our solutions and we may incur significant liabil

275、ities.Intheordinarycourseofourbusiness,wemaintainsensitivedataonournetworks,includingourintellectualpropertyandproprietaryorconfidentialbusinessinformationrelatingtoourbusinessandthatofourcustomersandbusinesspartners.Thesecuremaintenanceofthisinformationiscriticaltoourbusinessandreputation.Webelieve

276、thatcompanieshavebeenincreasinglysubjecttoawidevarietyofsecurityincidents,cyber-attacksandotherattemptstogainunauthorizedaccess.Thesethreatscancomefromavarietyofsources,ranginginsophisticationfromanindividualhackertoastate-sponsoredattack.Cyberthreatsmaybegeneric,ortheymaybecustom-craftedagainstouri

277、nformationsystems.Cyber-attackshavebecomemoreprevalentandmuchhardertodetectanddefendagainst.Ournetworkandstorageapplicationsmaybesubjecttounauthorizedaccessbyhackersorbreachedduetooperatorerror,malfeasanceorothersystemdisruptions.Itisoftendifficulttoanticipateorimmediatelydetectsuchincidentsandtheda

278、magecausedbysuchincidents.Thesedatabreachesandanyunauthorizedaccessordisclosureofourinformationorintellectualpropertycouldresultinthelossofinformation,litigation,indemnityobligationsandotherliability.Whilewehavesecuritymeasuresinplace,oursystemsandnetworksaresubjecttoongoingthreatsandthereforetheses

279、ecuritymeasuresmaybebreachedasaresultofthird-partyaction,includingcyber-attacksorotherintentionalmisconductbycomputerhackers,employeeerror,malfeasanceorotherwise.Thiscouldresultinoneormorethirdpartiesobtainingunauthorizedaccesstoourcustomersdataorourdata,includingintellectualpropertyandotherconfiden

280、tialbusinessinformation.Becausetechniquesusedtoobtainunauthorizedaccessortosabotagesystemschangefrequentlyandgenerallyarenotrecognizeduntillaunchedagainstatarget,wemaybeunabletoanticipatethesetechniquesortoimplementadequatepreventativemeasures.Thirdpartiesmayalsoattempttofraudulentlyinduceemployeeso

281、rcustomersintodisclosingsensitiveinformationsuchasusernames,passwordsorotherinformationinordertogainaccesstoourcustomersdataorourdata,includingintellectualpropertyandotherconfidentialbusinessinformation.Ifanactualorperceived20breachofoursecurityoccurs,themarketperceptionoftheeffectivenessofoursecuri

282、tymeasurescouldbeharmed,wecouldlosepotentialsalesandexistingcustomersorwecouldincurotherliabilities,whichcouldadverselyaffectourbusiness.We primarily use third-party data centers to deliver our services.Any disruption of service at these facilities could harm our business.Wemanageasignificantportion

283、ofourservicesandservesubstantiallyallofourcustomersfromonlyasinglethird-partydatacenterfacility.Whilewecontroltheactualcomputer,networkandstoragesystemsuponwhichourplatformruns,anddeploythemtothedatacenterfacility,wedonotcontroltheoperationofthefacility.Theownerofthefacilityhasnoobligationtorenewthe

284、agreementwithusoncommerciallyreasonableterms,oratall.Ifweareunabletorenewtheagreementoncommerciallyreasonableterms,wemayberequiredtotransfertoanewfacilityorfacilities,andwemayincursignificantcostsandpossibleserviceinterruptioninconnectionwithdoingso.Thefacilityisvulnerabletodamageorserviceinterrupti

285、onresultingfromhumanerror,intentionalbadacts,earthquakes,hurricanes,floods,fires,war,terroristattacks,powerlosses,hardwarefailures,systemsfailures,telecommunicationsfailuresandsimilarevents.Moreover,whilewehaveadisasterrecoveryplaninplace,wedonotmaintaina“hotfailover”instanceofoursoftwareplatformper

286、mittingustoimmediatelyswitchoverintheeventofdamageorserviceinterruptionatourdatacenter.Theoccurrenceofanaturaldisasteroranactofterrorism,anyoutagesorvandalismorothermisconduct,oradecisiontoclosethefacilitywithoutadequatenoticeorotherunanticipatedproblemscouldresultinlengthyinterruptionsinourservices

287、.Anychangesinservicelevelsatthefacilityoranyerrors,defects,disruptionsorotherperformanceproblemsatorrelatedtothefacilitythataffectourservicescouldharmourreputationandmaydamageourcustomersbusinesses.Interruptionsinourservicesmightreduceourrevenues,subjectustopotentialliability,orresultinreducedusageo

288、fourplatform.Inaddition,someofourcustomercontractsrequireustoissuecreditsfordowntimeinexcessofcertainlevelsandinsomeinstancesgiveourcustomerstheabilitytoterminatetheirsubscriptions.Wealsodependonthird-partyInternet-hostingprovidersandcontinuousanduninterruptedaccesstotheInternetthroughthird-partyban

289、dwidthproviderstooperateourbusiness.IfwelosetheservicesofoneormoreofourInternet-hostingorbandwidthprovidersforanyreasonoriftheirservicesaredisrupted,forexampleduetovirusesor“denial-of-service”orotherattacksontheirsystems,orduetohumanerror,intentionalbadacts,powerloss,hardwarefailures,telecommunicati

290、onsfailures,fires,wars,terroristattacks,floods,earthquakes,hurricanes,tornadoesorsimilarevents,wecouldexperiencedisruptioninourabilitytoofferoursolutionsorwecouldberequiredtoretaintheservicesofreplacementproviders,whichcouldincreaseouroperatingcostsandharmourbusinessandreputation.Depending upon the

291、level of our customers usage of our software platform,we may need to continually improve our hosting infrastructure to avoid serviceinterruptions or slower system performance.Weseektomaintainsufficientexcesscapacityinourinfrastructuretomeettheneedsofallofourcustomers.Wealsoseektomaintainexcesscapaci

292、tytofacilitatetherapidprovisionofnewcustomerdeploymentsandtheexpansionofexistingcustomerdeployments.Forexample,ifwesecurealargecustomeroragroupofcustomersthatrequiresignificantamountsofbandwidthorstorage,wemayneedtoincreasebandwidth,storage,powerorotherelementsofourapplicationarchitectureandourinfra

293、structure,andourexistingsystemsmaynotbeabletoscaleinamannersatisfactorytoourexistingorprospectivecustomers.Theamountofinfrastructureneededtosupportourcustomersisbasedonourestimatesofanticipatedusage.Ifweweretoexperienceunforeseenincreasesinusage,wecouldberequiredtoincreaseourinfrastructureinvestment

294、sresultinginincreasedcostsorreducedgrossmargins,andifwedonotaccuratelypredictourinfrastructurecapacityrequirements,ourcustomerscouldexperienceserviceoutagesthatmaysubjectustofinancialpenaltiesandliabilitiesandresultincustomerlosses.Ifourhostinginfrastructurecapacityfailstokeeppacewithsales,customers

295、mayexperienceserviceinterruptionsorslowersystemperformance,whichcouldharmourreputationandadverselyaffectourrevenuegrowth.Ascustomersuseoursoftwareplatformformorecomplicatedtasks,wewillneedtodevoteresourcestoimproveourapplicationarchitectureandourinfrastructureinordertomaintaintheperformanceofoursoft

296、wareplatform.Wemayneedtoincuradditionalcoststoupgradeorexpandourcomputersystemsandarchitectureifoursystemscannothandlecurrentorhighervolumesofusage.Inaddition,increasingoursystemsandinfrastructureinadvanceofnewcustomerswouldcauseustohaveincreasedcostofrevenues,whichcanadverselyaffectourgrossmarginsu

297、ntilweincreaserevenuesthatarespreadovertheincreasedcosts.21Our solutions must integrate with our customers enterprise applications and infrastructures.If we cannot efficiently implement our solutions for customers,we may lose customers.Ourcustomershaveavarietyofdifferentdataformats,enterpriseapplica

298、tionsandinfrastructureandourplatformmustsupportourcustomersdataformatsandintegratewithcomplexenterpriseapplicationsandinfrastructures.Ifourplatformdoesnotcurrentlysupportacustomersrequireddataformatorappropriatelyintegratewithacustomersapplicationsandinfrastructure,thenwemaychoosetoconfigureourplatf

299、ormtodoso,whichwouldincreaseourexpenses.Additionally,wedonotcontrolourcustomersimplementationschedules.Asaresult,aswehaveexperiencedinthepast,ifourcustomersdonotallocateinternalresourcesnecessarytomeettheirimplementationresponsibilitiesorifwefaceunanticipatedimplementationdifficulties,theimplementat

300、ionmaybedelayed.Further,inthepast,ourimplementationcapacityhasattimesconstrainedourabilitytosuccessfullyimplementoursolutionsforourcustomersinatimelymanner,particularlyduringperiodsofhighdemand.Ifthecustomerimplementationprocessisnotexecutedsuccessfullyorifexecutionisdelayed,wecouldincursignificantc

301、osts,customerscouldbecomedissatisfiedanddecidenottoincreaseusageofourplatform,nottouseourplatformbeyondaninitialperiodpriortotheirtermcommitmentandrevenuerecognitioncouldbedelayed.Inaddition,competitorswithmoreefficientoperatingmodelswithlowerimplementationcostscouldpenetrateourcustomerrelationships

302、.Additionally,largecustomersmayrequestorrequirespecificfeaturesorfunctionsuniquetotheirparticularbusinessprocesses,whichincreaseourupfrontinvestmentinsalesanddeploymenteffortsandtherevenuesresultingfromthecustomersunderourtypicalcontractlengthmaynotcovertheupfrontinvestments.Ifprospectivelargecustom

303、ersrequirespecificfeaturesorfunctionsthatwedonotoffer,thenthemarketforoursolutionwillbemorelimitedandourbusinesscouldsuffer.Inaddition,supportinglargecustomerscouldrequireustodevotesignificantdevelopmentservicesandsupportpersonnelandstrainourpersonnelresourcesandinfrastructure.Ifweareunabletoaddress

304、theneedsofthesecustomersinatimelyfashionorfurtherdevelopandenhanceoursolution,thesecustomersmaynotrenewtheirsubscriptions,seektoterminatetheirrelationshipwithus,renewonlessfavorableterms,orreducetheiradvertisingspendonourplatform.Ifanyoftheseweretooccur,ourrevenuesmaydeclineandouroperatingresultscou

305、ldbeadverselyaffected.If we are unable to maintain or expand our sales and marketing capabilities,we may not be able to generate anticipated revenues.Increasingourcustomerbaseandachievingbroadermarketacceptanceofoursoftwareplatformwilldependtoanextentonourabilitytomaintainorexpandoursalesandmarketin

306、goperationsandactivities.Wearesubstantiallydependentonoursalesforcetoobtainnewcustomersandourmarketingorganizationtogenerateasufficientpipelineofqualifiedsalesleads.Wemayneedtorestructureorexpandoursalesteaminordertomaintainorincreaserevenuesfromnewandexistingcustomersandtofurtherpenetrateourexistin

307、gmarkets.Oursolutionsrequireasophisticatedsalesforcewithspecificsalesskillsandtechnicalknowledge.Competitionforqualifiedsalespersonnelisintense,andwemaynotbeabletoretainourexistingsalespersonnelorattract,integrate,trainorretainsufficienthighlyqualifiedsalespersonnel.In2020,wecommencedthe2020Restruct

308、uringPlantoreduceouroperatingexpensesandaddresstheimpactoftheCOVID-19pandemiconourbusiness,whichresultedinchangestotheleadership,structureandcompositionofoursalesandmarketingteams.Thesechanges,andanyfuturechanges,inoursalesandmarketingteamscouldbedisruptivetoouroperations.Inaddition,wemayneedtoinves

309、tinleadgenerationactivitiestodevelopourpipelineofqualifiedopportunitiesforoursalesforce,whichcouldincreaseourmarketingexpenses.Ifourleadgenerationactivitiesdonotincreaseourpipelineorifoursalesforceisunabletocloseopportunitiesatahighrate,thenwemaynotgenerateanincreaseinrevenues.Any failure to offer h

310、igh-quality technical support services may adversely affect our relationships with our customers and harm our financial results.Ourcustomersdependonoursupportorganizationtoresolveanytechnicalissuesrelatingtooursolutions.However,duetotheCOVID-19pandemic,mostofouremployeesworldwidearecurrentlyworkingr

311、emotely,includingourcustomersupportorganization.Weimplementedthe2020RestructuringPlantoreduceouroperatingexpensesandaddresstheimpactoftheCOVID-19pandemiconourbusiness,whichresultedinchangestotheleadership,structureandcompositionofourcustomersupportteams.Thesechanges,andanyfuturechanges,inourcustomer

312、supportteamscouldbedisruptivetoouroperations.Inaddition,oursalesprocessishighlydependentonthequalityofoursolutions,ourbusinessreputationandonstrongrecommendationsfromourexistingcustomers.Anyfailuretomaintainhigh-qualitytechnicalsupport,oramarketperceptionthatwedonotmaintainhigh-qualitysupport,couldh

313、armourreputation,adverselyaffectourabilitytoselloursolutionstoexistingandprospectivecustomers,andharmourbusiness,operatingresultsandfinancialcondition.Weoffertechnicalsupportserviceswithoursolutionsandmaybeunabletorespondquicklyenoughtoaccommodateshort-termincreasesincustomerdemandforsupportservices

314、.Wealsomaybeunabletomodifytheformatofoursupportservicestocompetewithchangesinsupportservicesprovidedbycompetitors.Itisdifficulttopredictcustomerdemandfortechnicalsupportservicesandifcustomerdemandincreasessignificantly,wemaybeunabletoprovidesatisfactorysupportservicestoourcustomers.Additionally,incr

315、easedcustomerdemandfortheseservices,withoutcorrespondingrevenues,couldincreasecostsandadverselyaffectouroperatingresults.22Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.Oursuccessandabilitytocompetedependsinpartup

316、onourintellectualproperty.Weprimarilyrelyonacombinationofcopyright,tradesecretandtrademarklaws,aswellasconfidentialityproceduresandcontractualrestrictionswithouremployees,customers,partnersandotherstoestablishandprotectourintellectualpropertyrights.However,thestepswetaketoprotectourintellectualprope

317、rtyrightsmaybeinadequateorwemaybeunabletosecureintellectualpropertyprotectionforallofoursolutions.Inparticular,wehavethreeissuedU.S.patents.Ifweareunabletoprotectourintellectualproperty,ourcompetitorscoulduseourintellectualpropertytomarketproductsandservicessimilartooursandourabilitytocompeteeffecti

318、velywouldbeimpaired.Moreover,othersmayindependentlydeveloptechnologiesthatarecompetitivetooursorinfringeourintellectualproperty.Theenforcementofourintellectualpropertyrightsdependsonourlegalactionsagainsttheseinfringersbeingsuccessful,butwecannotbesuretheseactionswillbesuccessful,evenwhenourrightsha

319、vebeeninfringed.Inaddition,defendingourintellectualpropertyrightsmightentailsignificantexpenseanddiversionofmanagementresources.Anyofourintellectualpropertyrightsmaybechallengedbyothersorinvalidatedthroughadministrativeprocessesorlitigation.Anypatentsissuedinthefuturemaynotprovideuswithcompetitivead

320、vantagesormaybesuccessfullychallengedbythirdparties.Furthermore,legalstandardsrelatingtothevalidity,enforceabilityandscopeofprotectionofintellectualpropertyrightsareuncertain.Effectiveprotectionofourintellectualpropertymaynotbeavailabletousineverycountryinwhichoursolutionsareavailable.Thelawsofsomef

321、oreigncountriesmaynotbeasprotectiveofintellectualpropertyrightsasthoseintheUnitedStates,andmechanismsforenforcementofintellectualpropertyrightsmaybeinadequate.Accordingly,despiteourefforts,wemaybeunabletopreventthirdpartiesfrominfringinguponormisappropriatingourintellectualproperty.Wemightberequired

322、tospendsignificantresourcestomonitorandprotectourintellectualpropertyrights,andoureffortstoenforceourintellectualpropertyrightsmaybemetwithdefenses,counterclaimsandcountersuitsattackingthevalidityandenforceabilityofourintellectualpropertyrights.Litigationtoprotectandenforceourintellectualpropertyrig

323、htscouldbecostly,time-consuminganddistractingtomanagement,whetherornotitisresolvedinourfavor,andcouldultimatelyresultintheimpairmentorlossofportionsofourintellectualproperty.We could incur substantial costs as a result of any claim of infringement of another partys intellectual property rights.Inrec

324、entyears,therehasbeensignificantlitigationintheUnitedStatesinvolvingpatentsandotherintellectualpropertyrights.CompaniesintheInternetandtechnologyindustriesareincreasinglybringingandbecomingsubjecttosuitsalleginginfringementofproprietaryrights,particularlypatentrights,andourcompetitorsmayholdpatentso

325、rhavependingpatentapplications,whichcouldberelatedtoourbusiness.Theseriskshavebeenamplifiedbytheincreaseinthirdparties,whichwerefertoasnon-practicingentities,whosesoleprimarybusinessistoassertsuchclaims.Wehavereceivedinthepast,andexpecttoreceiveinthefuture,noticesthatclaimweorourcustomersusingoursol

326、utionshavemisappropriatedormisusedotherpartiesintellectualpropertyrights.Ifwearesuedbyathirdpartythatclaimsthatourtechnologyinfringesitsrights,thelitigationcouldbeexpensiveandcoulddivertourmanagementresources.Wedonotcurrentlyhaveanextensivepatentportfolioofourown,whichmaylimitthedefensesavailabletou

327、sinanysuchlitigation.Inaddition,inmostinstances,wehaveagreedtoindemnifyourcustomersagainstcertainclaimsthatoursubscriptionservicesinfringetheintellectualpropertyrightsofthirdparties.Ourbusinesscouldbeadverselyaffectedbyanysignificantdisputesbetweenusandourcustomersastotheapplicabilityorscopeofourind

328、emnificationobligationstothem.Theresultsofanyintellectualpropertylitigationtowhichwemightbecomeaparty,orforwhichwearerequiredtoprovideindemnification,mayrequireustodooneormoreofthefollowing:ceaseofferingorusingtechnologiesthatincorporatethechallengedintellectualproperty;makesubstantialpaymentsforleg

329、alfees,settlementpaymentsorothercostsordamages;obtainalicense,whichmaynotbeavailableonreasonableterms,tosellorusetherelevanttechnology;orredesigntechnologytoavoidinfringement.Ifwearerequiredtomakesubstantialpaymentsorundertakeanyoftheotheractionsnotedaboveasaresultofanyintellectualpropertyinfringeme

330、ntclaimsagainstusoranyobligationtoindemnifyourcustomersforsuchclaims,suchpaymentsorcostscouldhaveamaterialadverseeffectuponourbusinessandfinancialresults.Our use of open source technology could impose limitations on our ability to commercialize our software platform.Weuseopensourcesoftwareinourplatf

331、orm.Someopensourcesoftwarelicensesrequireuserswhodistributeopensourcesoftwareaspartoftheirsoftwaretopubliclydiscloseallorpartofthesourcecodetosuchsoftwareand/ormakeavailableany23derivativeworksoftheopensourcecodeonunfavorabletermsoratnocost.Thetermsofvariousopensourcelicenseshavenotbeeninterpretedby

332、theU.S.courts,andthereisariskthatsuchlicensescouldbeconstruedinamannerthatimposesunanticipatedconditionsorrestrictionsonourabilitytomarketoursoftwareplatform.Whilewemonitorouruseofopensourcesoftwareandtrytoensurethatnoneisusedinamannerthatwouldrequireustodiscloseoursourcecodeorthatwouldotherwisebrea

333、chthetermsofanopensourceagreement,suchusecouldinadvertentlyoccurandwemayberequiredtoreleaseourproprietarysourcecode,paydamagesforbreachofcontract,re-engineerourapplications,discontinuesalesintheeventre-engineeringcannotbeaccomplishedonatimelybasisortakeotherremedialactionthatmaydivertresourcesawayfromourdevelopmentefforts,anyofwhichcouldcauseustobreachcustomercontracts,harmourreputation,resultincu