Adobe (ADBE) risk factors, FY2024 10-K

Risks Related to Our Ability to Grow Our Business

1. 01We may be unsuccessful at innovating in response to rapid technological or industry changes to meet customer needs, which could cause our operating results to suffer
2. 02Issues relating to the development and use of AI, including generative AI, in our offerings may result in reputational harm, liability and adverse financial results
3. 03We participate in rapidly evolving and intensely competitive markets, and, if we do not compete effectively, our operating results could suffer
4. 04If our reputation or our brands are damaged, our business and financial results may be adversely affected
5. 05We may not realize the anticipated benefits of investments or acquisitions, and they may disrupt our business and divert management’s attention

Risks Related to the Operation of Our Business

1. 06Service interruptions or failures of our or third-party information technology systems may impair the availability of our products, services and solutions, which may expose us to liability, damage our reputation and harm our future financial results
2. 07Security incidents, improper access to or disclosure of our customers’ data or other cybersecurity incidents may harm our reputation and materially and adversely affect our business
3. 08violate our terms of service. While we actively combat such fraudulent activities, we have experienced, and may in the future experience, impacts to our revenue from such activities
4. 09If we are unable to develop, manage and maintain critical third-party relationships, such as our sales, partner and distribution channels, suppliers and service providers, our revenue and business may be adversely affected
5. 10We face various risks associated with our operating as a multinational corporation, and global adverse economic conditions may harm our business and financial condition
6. 11Some of our enterprise offerings have extended and complex sales cycles, which may increase our costs and make our sales cycles unpredictable
7. 12If we are unable to recruit and retain key personnel, our business may be harmed, and our hybrid work model may present challenges, which could adversely impact our business

Risks Related to Laws and Regulations

1. 13We are, and may in the future become, subject to litigation, regulatory inquiries and other claims, which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operation and cash flows
2. 14We are subject to risks associated with compliance with laws and regulations globally, which may harm our business
3. 15Increasing regulatory focus on privacy and security issues and expanding laws and regulatory requirements could impact our business models and expose us to increased liability
4. 16Our intellectual property portfolio is a valuable asset and we may not be able to protect our intellectual property rights, including our source code, from infringement or unauthorized copying, use or disclosure
5. 17Changes in tax rules and regulations or interpretations thereof may adversely affect our effective tax rates
6. 18Contracting with government entities exposes us to additional risks inherent in the government procurement process

Risks Related to Financial Performance

1. 19If there is a change in subscriptions or renewals in a reporting period, this could cause our financial results to suffer and may not be immediately reflected in our revenue and financial results for that period because we recognize revenue over the subscription term
2. 20We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure
3. 21If our goodwill or intangible assets become impaired, then we could be required to record a significant charge to earnings
4. 22Our existing and future debt obligations may adversely affect our financial condition and future financial results
5. 23Catastrophic events, including events associated with climate change, may disrupt our business and adversely affect our financial condition and results of operations
6. 24Our stock price may be volatile and your investment could lose value