What changed in this filing

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Item 1A. Risk Factors

2021-08-09 compared with 2021-05-10 · 47 added, 41 removed, 381 unchanged (19% of the section changed)

16 unchanged sentences

Our workforce has continued to effectively develop and support our software and services offerings notwithstanding the current environment.

We expect to slowly transition employees back to the workplace throughout 2021;

We expect to slowly transition employees back to the workplace and resume employee travel throughout 2021;

however employees will have the option to work remotely for the remainder of the year.

14 unchanged sentences

Any of the factors described above, or any number of other risks related to the COVID-19 pandemic, could disrupt our business, which could have a material adverse impact on our business, operations and financial results.

Despite recent approval and initial distribution of vaccines, both the pandemic and the containment and mitigation measures have had and are likely to continue to have an adverse impact on the global and U.S.

Both the pandemic and the containment and mitigation measures have had and are likely to continue to have an adverse impact on the global and U.S.

economies, the severity and duration of which are uncertain.

98 unchanged sentences

Any of these outcomes could adversely affect our business and operating results.

We depend on highly skilled personnel and, if we are unable to retain or hire additional qualified personnel or if we lose key members of our management team, we may not be able to achieve our strategic objectives and our business may be harmed.

Our success and future growth depend, in part, upon the continued services of our executive officers and other key employees.

There may be changes in our executive officers or other key employees resulting from the hiring or departure of these personnel, which may disrupt our business.

The loss of one or more of our executive officers or other key employees could have an adverse effect on our business.

In addition, to execute our growth plan and achieve our strategic objectives, we must continue to attract and retain highly qualified and motivated personnel across our organization.

In particular, in order to continue to enhance our software solutions, add new and innovative core functionality and/or Value+ services, as well as develop new products, it will be critical for us to increase the size of our research and product development organization, including hiring highly skilled software engineers.

Competition for software engineers is intense within our industry and there continues to be upward pressure on the compensation paid to these professionals.

Further, in order for us to achieve broader market acceptance of our software solutions, grow our customer base, and pursue adjacent markets and, potentially, new verticals consistent with our strategic plan, we will need to continue to increase the size of our sales and marketing and customer service and support organizations.

Identifying, recruiting, training and retaining qualified personnel is difficult and requires a significant investment of time and resources.

Many of the companies with which we compete for experienced personnel have greater name recognition and financial resources than we have.

In addition, our headquarters are located in Santa Barbara, California, which is not generally recognized as a prominent commercial center, and it is challenging to attract qualified professionals due to our geographic location.

As a result, we may have even greater difficulty hiring and retaining skilled personnel than our competitors.

If we hire employees from other companies, their former employers may attempt to assert that we or these employees have breached their legal obligations, resulting in a diversion of our time and resources.

In addition, prospective and existing employees often consider the value of the equity awards they receive in connection with their employment.

If the perceived value of our equity awards declines, or if the price of our Class A common stock experiences significant volatility, this may adversely affect our ability to recruit and retain highly skilled employees.

If we are unable to attract and retain the personnel necessary to execute our growth plan, we may be unable to achieve our strategic objectives and our operating results may suffer.

Our corporate culture has contributed to our success and, if we cannot continue to foster this culture as we grow, we could lose the passion, creativity, teamwork, focus and innovation fostered by our culture.

We believe that our culture has been and will continue to be a key contributor to our success.

If we do not continue to develop our corporate culture or maintain our core values as we grow and evolve, we may be unable to foster the passion, creativity, teamwork, focus and innovation we believe we need to support our growth.

Any failure to preserve our culture could negatively affect our ability to recruit and retain personnel and to effectively focus on and pursue our strategic objectives.

Moreover, liquidity available to our employee security holders could lead to disparities of wealth among our employees, which could adversely impact relations among employees and our culture in general.

As we grow and mature as a public company, we may find it difficult to maintain our corporate culture.

This difficulty will only be exacerbated by the COVID-19 pandemic, which has resulted in travel restrictions, quarantines, shelter-in-place orders and similar government orders and restrictions that collectively make it more difficult for employees to interact, communicate and innovate.

We face risks in our electronic payment services business that could adversely affect our business and/or operating results.

15 unchanged sentences

Our tenant screening services business is subject to a number of complex laws that are subject to varying interpretations, including the FCRA and related regulations.

The FCRA has recently been the subject of multiple class-based litigation proceedings, as well as numerous regulatory inquiries and enforcement actions.

The FCRA continues to be the subject of multiple class-based litigation proceedings, as well as numerous regulatory inquiries and enforcement actions.

In addition, entities such as the FTC and the Consumer Financial Protection Bureau have the authority to promulgate rules and regulations that may impact our customers and our business, and have made various public statements that tenant screening is an area of focus for such agencies.

2 unchanged sentences

On April 30, 2020, the FTC staff informed us of its belief that there was a reasonable basis for asserting claims against us for our alleged failure to comply with certain sections of the FCRA.

Notwithstanding our disagreement with the FTC's position and vigorous defense of our position, primarily in an effort to avoid protracted litigation and potential distraction to our business, we entered into settlement negotiations with the FTC in an effort to resolve all claims and allegations arising out of or relating to the FTC Investigation.

Those settlement negotiations resulted in a final agreement between the parties that is memorialized in a Stipulated Order for Permanent Injunction and Civil Penalty Judgment filed in the United States District Court for the District of Columbia on January 12, 2021.

We admitted no wrongdoing in connection with the settlement, but paid $4.25 million to the FTC in connection therewith.

Notwithstanding our disagreement with the FTC's position and vigorous defense of our position, primarily in an effort to avoid protracted litigation and potential distraction to our business, we entered into a settlement agreement with the FTC in an effort to resolve all claims and allegations arising out of or relating to the FTC Investigation.

We admitted no wrongdoing in connection with the settlement, but paid $4.3 million to the FTC in connection therewith and are subject to ongoing compliance and reporting requirements.

Our failure to comply with these requirements could result in additional penalties or other actions by the FTC or other agencies.

Due to the large number of tenant screening transactions in which we participate, our potential liability in any enforcement action or a class action lawsuit could have a material impact on our business, especially given that certain applicable laws and regulations provide for fines or penalties on a per occurrence basis.

4 unchanged sentences

The failure of these service providers to provide us with accurate and timely information, to fulfill their contractual obligations to us, or to renew their contracts with us, could result in direct liability to us, harm our reputation, result in significant disruptions to our business, and adversely affect our operating results.