Trimble (TRMB) risk factors, FY2024 10-K

Risks related to our business

1. 01We have experienced disruption in our supply chain and related events, and are subject to ongoing supply chain risks
2. 02These disruptions had an adverse effect on our ability to meet customer demand and have resulted in delays in shipping products to customers and dealers
3. 03Lastly, due to supply chain issues, we have in the past and may in the future accumulate excess inventories if we inaccurately forecast demand for our products, or if dealers are unable to work through their excess inventory
4. 04Changes in our software and subscription businesses may adversely affect our revenue
5. 05about data privacy, current subscription terms, customer preference, and industry adoption. If customers do not renew their contracts for our products, our maintenance and subscription revenue will decline, and our financial results will suffer
6. 06We have identified material weaknesses in our internal control over financial reporting, and if our remediation of such material weaknesses is not effective, it could impact our ability to produce timely and accurate financial statements or comply with applicable laws and regulations
7. 07We may not be able to continue to enter into or maintain important alliances and distribution relationships
8. 08Any such effects from acquisitions could be costly and place a significant strain on our management systems and resources
9. 09We face substantial competition in our markets, which could decrease our revenue and growth rates
10. 10If we are unable to attract and retain qualified personnel, our business could be harmed

Risks related to our technology and products

1. 11Our products are highly technical and may contain undetected errors, product defects, or security vulnerabilities
2. 12and other countries are rapidly evolving and are subject to significant uncertainty, and could impose significant compliance costs, restrict certain AI applications, or require us to alter our AI-related practices
3. 13We are dependent on proprietary technology, which could result in litigation that could divert significant valuable resources

Financial and tax risks

1. 14Our debt could adversely affect our cash flow and prevent us from fulfilling our financial obligations
2. 15Changes in our effective tax rate may reduce our net income in future periods
3. 16The jurisdictions where we do business may change tax laws, regulations, and interpretations on a prospective or retroactive basis and these potential changes could adversely affect our effective tax rates and impact our financial results. For example, the Tax Cuts and Jobs Act of 2017 is set to expire in 2025
4. 17We may be affected by fluctuations in currency exchange rates

Risks related to ownership of our stock

1. 18Our stock price is volatile
2. 19Our annual and quarterly performance fluctuates, which can adversely impact our stock price
3. 20We have claims and lawsuits against us that may result in adverse outcomes
4. 21Catastrophic events or geopolitical conditions could disrupt our operations
5. 22Damage to our reputation could significantly harm our businesses, competitive position, and prospects for growth
6. 23Climate change could disrupt or harm our business