Kelly Services (KELYA) risk factors, FY2024 10-K

Risks Related to Macroeconomic Conditions

1. 01Our business is significantly affected by fluctuations in general economic conditions
2. 02Our stock price may be subject to significant volatility and could suffer a decline in value

Risks Related to our Industry Segment

1. 03We operate in a highly competitive industry with low barriers to entry and may be unable to compete successfully against existing or new competitors
2. 04Technological advances, including advances in artificial intelligence, may significantly disrupt the labor market and weaken demand for human capital
3. 05Competition rules arising from government legislation, litigation or regulatory activity may limit how we structure and market our services
4. 06Our business is subject to extensive government regulation, which may restrict the types of services we are permitted to offer or result in additional tax or licensing requirements, or other costs that reduce our revenues and earnings
5. 07Unexpected changes in claim trends on our workers’ compensation, unemployment, disability and medical benefit plans may negatively impact our financial condition
6. 08We may have additional tax liabilities that exceed our estimates

Risks Related to Strategy and Execution

1. 09Our future performance depends on the Company’s effective execution of our business strategy
2. 10If we fail to successfully improve or develop new service offerings, we may be unable to retain and acquire customers, resulting in a decline in revenues
3. 11A loss of major customers or a change in such customers’ buying behavior or economic strength could have a material adverse effect on our business
4. 12We are at risk of damage to our brands, which are important to our success
5. 13We are increasingly dependent on third parties for the execution of critical functions and could be liable for their inability to perform or adhere to global compliance standards
6. 14Our information technology strategy may not yield its intended results
7. 15Past and future acquisitions may not be successful

Risks Related to Operating a Global Enterprise

1. 16We conduct a portion of our operations outside of the United States and we are subject to risks relating to our international business activities, including fluctuations in currency exchange rates and numerous legal and regulatory requirements
2. 17Our international operations subject us to potential liability under anti-bribery, anti-corruption, anti-trafficking, supply chain, trade protection, and other laws and regulations
3. 18Events such as natural disasters, severe weather, terrorist attacks, war, pandemics, and other catastrophic events could decrease demand for our services in impacted areas
4. 19We are subject to substantial pressure to meet external stakeholder’s sustainability and ESG requirements

Risks Related to Human Capital

1. 20We depend on our ability to attract, develop and retain qualified permanent full-time employees
2. 21We depend on the ability of Kelly and third-party talent suppliers to attract and retain qualified personnel to provide our services
3. 22We may be exposed to employment-related claims and losses, including class action lawsuits and collective actions, which could have a material adverse effect on our business

Risks Related to Cyber Security and Data Privacy

1. 23Damage to our data facilities could affect our ability to sustain critical business applications
2. 24A failure to maintain the privacy of personal data entrusted to us could have significant adverse consequences
3. 25Cyberattacks, damage or disruption to our technology systems and services, breaches of network or information technology security, or other serious security incidents could have an adverse effect on our systems, services, reputation and financial results

Risks Related to Our Capital Structure

1. 26Our controlling stockholder exercises voting control over our company and has the ability to elect or remove from office all of our directors
2. 27We are not subject to certain of the listing standards that normally apply to companies whose shares are quoted on the Nasdaq Global Market
3. 28Provisions in our certificate of incorporation and bylaws and Delaware law may delay or prevent an acquisition of our Company
4. 29or stockholder approval requirements are satisfied. These provisions and other similar provisions make it more difficult for a third party to acquire us without negotiation
5. 30The holders of shares of our Class A common stock are not entitled to voting rights
6. 31We may not be able to realize value from, or otherwise preserve and utilize, our tax credit and net operating loss carryforwards
7. 32Failure to maintain specified financial covenants in our bank credit facilities, or credit market events beyond our control, could adversely restrict our financial and operating flexibility and subject us to other risks, including risk of loss of access to capital markets