4 unchanged sentences
The market may be unreceptive to our general business approach, including being unreceptive to our cloud-based offerings, unreceptive to purchasing multiple products from us, or unreceptive to our customized solutions.
−Removed: As we continue to pursue this business strategy, we may experience volatility in our Software segment’s revenues and operating results caused by various factors, including differences in revenue recognition treatment between our cloud-based offerings and on-premises software licenses, the timing of investments and other expenditures necessary to develop and operate our cloud-based offerings, and the adoption of new sales and delivery methods.
+Added: As we continue to pursue this business strategy, we may experience volatility in our Software segment’s revenues and operating results caused by various factors, including the differences in revenue recognition treatment and timing between our cloud-based offerings and on-premises software licenses, the timing of investments and other expenditures necessary to develop and operate our cloud-based offerings, and the adoption of new sales, delivery and distribution methods.
If this business strategy is not successful, we may not be able to grow our Software segment’s business, growth may occur more slowly than we anticipate, or revenues and profits may decline.
+Added: If we are unable to develop successful new products or new versions of products, or if we experience defects, failures or delays associated with the introduction of new products or of new versions of products, our business could suffer serious harm.
+Added: Our growth and the success of our business strategy depend upon our ability to develop and sell new products and new versions of products, including the development and sale of our cloud-based product offerings and our scoring solutions.
+Added: If we are unable to develop new or enhanced products, or if we are not successful in introducing new or enhanced products, we may not be able to grow our business or growth may occur more slowly than we anticipate.
+Added: In addition, significant undetected errors or delays in new products or new versions of products may affect market acceptance of our products and could harm our business, financial condition or results of operations.
+Added: In the past, we have experienced delays while developing and introducing new products and product enhancements, primarily due to difficulties developing models, acquiring data, and adapting to particular software operating environments and certain client or other systems.
+Added: We have also experienced errors or “bugs” in our software products, despite testing prior to release of the products.
+Added: Software errors in our products could affect the ability of our products to work with other hardware or software products, could delay the development or release of new products or new versions of products, and could adversely affect market acceptance of our products.
+Added: Errors or defects in our products that are significant, or are perceived to be significant, could result in rejection of our products, damage to our reputation, loss of revenues, diversion of development resources, an increase in product liability claims, and increases in service and support costs and warranty claims.
+Added: Our ability to increase our revenues will depend to some extent upon introducing new products and services and upon introducing enhancements and improvements to existing products and services.
+Added: If the marketplace does not accept these new, enhanced or improved products and services, our revenues may decline.
+Added: To increase our revenues, we must enhance and improve existing products and services, and continue to introduce new products and services that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance.
+Added: We believe much of the future growth of our business and the success of our business strategy will rest on our ability to continue to expand into newer markets for our products and services.
+Added: Such areas are relatively new to our product development and sales and marketing personnel.
+Added: Products and services that we plan to market in the future are in various stages of development.
+Added: We cannot assure you that the marketplace will accept these products and services.
+Added: If our current or potential customers are not willing to switch to or adopt our new products and services, either as a result of the quality of these products and services or due to other factors, such as economic conditions, our revenues will decrease.
+Added: We rely on relatively few customers, as well as our contracts with the three major consumer reporting agencies, for a significant portion of our revenues and profits.
+Added: Many of our customers are significantly larger than we are and may have greater bargaining power.
+Added: The businesses of our largest customers depend, in large part, on favorable macroeconomic conditions.
+Added: If these customers are negatively impacted by weak global economic conditions, global economic volatility or the terms of these relationships otherwise change, our revenues and operating results could decline.
+Added: Most of our customers are relatively large enterprises, such as banks, credit card issuers, insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries.
+Added: As a result, many of our customers and potential customers are significantly larger than we are and may have sufficient bargaining power to demand reduced prices and favorable nonstandard terms.
+Added: In addition, the U.S.
+Added: and other key international economies are experiencing, and have experienced in the past, downturns in which economic activity is impacted by falling demand for a variety of goods and services, increased volatility of interest rates, fluctuating rates of inflation, restricted credit, poor liquidity, reduced corporate profitability, volatility in credit, equity and foreign exchange markets, bankruptcies and overall uncertainty with respect to the economy.
+Added: The potential for economic disruption presents considerable risks to our business, including potential bankruptcies or credit deterioration of financial institutions with which we have substantial relationships.
+Added: In addition, the volume of our Scores sales depends heavily on macroeconomic conditions, including, for example, the volume of transactions in the U.S.
+Added: mortgage and credit card markets, which account for a significant portion of the revenues in our Scores segment.
+Added: Economic disruption could result in a decline in the sales of new products to our customers and the volume of transactions that we execute for existing customers.
+Added: We also derive a substantial portion of our Scores segment revenues and operating income from our contracts with the three major consumer reporting agencies in the U.S., Experian, TransUnion and Equifax, and other parties that distribute our products to certain markets.
+Added: The loss of or a significant change in a relationship with one of the three consumer reporting agencies with respect to their distribution of our products or with respect to our myFICO ® offerings, the loss of or a significant change in a relationship with a major customer, the loss of or a significant change in a relationship with a significant third-party distributor (including payment card processors), or the loss of or delay of significant revenues from these sources, could have a material adverse effect on our revenues and results of operations.
We derive a substantial portion of our revenues from a small number of products and services, and if the market does not continue to accept these products and services, our revenues will decline.
13 unchanged sentences
• inability to successfully sell our products in new vertical markets.
−Removed: If we are unable to develop successful new products or if we experience defects, failures and delays associated with the introduction of new products, our business could suffer serious harm.
−Removed: Our growth and the success of our business strategy depend upon our ability to develop and sell new products or suites of products, including the development and sale of our cloud-based product offerings.
−Removed: If we are unable to develop new products, or if we are not successful in introducing new products, we may not be able to grow our business or growth may occur more slowly than we anticipate.
−Removed: In addition, significant undetected errors or delays in new products or new versions of products may affect market acceptance of our products and could harm our business, financial condition or results of operations.
−Removed: In the past, we have experienced delays while developing and introducing new products and product enhancements, primarily due to difficulties developing models, acquiring data, and adapting to particular software operating environments and certain client or other systems.
−Removed: We have also experienced errors or “bugs” in our software products, despite testing prior to release of the products.
−Removed: Software errors in our products could affect the ability of our products to work with other hardware or software products, could delay the development or release of new products or new versions of products, and could adversely affect market acceptance of our products.
−Removed: Errors or defects in our products that are significant, or are perceived to be significant, could result in rejection of our products, damage to our reputation, loss of revenues, diversion of development resources, an increase in product liability claims, and increases in service and support costs and warranty claims.
−Removed: Our ability to increase our revenues will depend to some extent upon introducing new products and services.
−Removed: If the marketplace does not accept these new products and services, our revenues may decline.
−Removed: To increase our revenues, we must enhance and improve existing products and continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance.
−Removed: We believe much of the future growth of our business and the success of our business strategy will rest on our ability to continue to expand into newer markets for our products and services.
−Removed: Such areas are relatively new to our product development and sales and marketing personnel.
−Removed: Products that we plan to market in the future are in various stages of development.
−Removed: We cannot assure you that the marketplace will accept these products.
−Removed: If our current or potential customers are not willing to switch to or adopt our new products and services, either as a result of the quality of these products and services or due to other factors, such as economic conditions, our revenues will decrease.
If we fail to keep up with rapidly changing technologies, our products could become less competitive or obsolete.
In our markets, technology changes rapidly, and there are continuous improvements in computer hardware, network operating systems, programming tools, programming languages, operating systems, database technologies, cloud-based technologies and the use of the Internet.
+Added: For example, artificial intelligence technologies and their use are currently undergoing rapid change.
If we fail to enhance our current products and develop new products in response to changes in technology or industry standards, or if we fail to bring product enhancements or new product developments to market quickly enough, our products could rapidly become less competitive or obsolete.
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Periods of global economic uncertainty experienced in the past have produced substantial stress, volatility, illiquidity and disruption of global credit and other financial markets, resulting in the bankruptcy or acquisition of, or government assistance to, several major domestic and international financial institutions.
−Removed: The potential for future stress and disruptions, including in connection with the conflict between Russia and Ukraine, rising inflation and rising interest rates, presents considerable risks to our businesses and operations.
+Added: The potential for future stress and disruptions, including in connection with geopolitical tensions, military conflicts, the level of inflation and rising interest rates, presents considerable risks to our businesses and operations.
These risks include potential bankruptcies or credit deterioration of financial institutions, many of which are our customers.
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While the rate of account growth in the U.S.
−Removed: banking industry has been slow and many of our large institutional customers have consolidated in recent years, we have generated most of our revenue growth in the banking industry by selling and cross-selling our products and services to large banks and other credit issuers.
−Removed: If the banking industry continues to experience contraction in the number of participating institutions, we may have fewer opportunities for revenue growth due to reduced or changing demand for our products and services that support customer acquisition programs of our customers.
+Added: banking industry has been slow, we have generated most of our revenue growth in the banking industry by selling and cross-selling our products and services to large banks and other credit issuers.
+Added: If the banking industry experiences contraction in the number of participating institutions, we may have fewer opportunities for revenue growth due to reduced or changing demand for our products and services that support customer acquisition programs of our customers.
In addition, industry contraction could affect the base of recurring revenues derived from contracts in which we are paid on a per-transaction basis as formerly separate customers combine their operations under one contract.
There can be no assurance that we will be able to prevent future revenue contraction or effectively promote future revenue growth in our businesses.
−Removed: While we are attempting to expand our sales into international markets, the risks are greater as these markets are also experiencing substantial disruption and we are less well-known in them.
−Removed: We rely on relatively few customers, as well as our contracts with the three major consumer reporting agencies, for a significant portion of our revenues and profits.
−Removed: Many of our customers are significantly larger than we are and may have greater bargaining power.
−Removed: The businesses of our largest customers depend, in large part, on favorable macroeconomic conditions.
−Removed: If these customers are negatively impacted by weak global economic conditions, global economic volatility or the terms of these relationships otherwise change, our revenues and operating results could decline.
−Removed: Most of our customers are relatively large enterprises, such as banks, credit card issuers, insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries.
−Removed: As a result, many of our customers and potential customers are significantly larger than we are and may have sufficient bargaining power to demand reduced prices and favorable nonstandard terms.
−Removed: In addition, the U.S.
−Removed: and other key international economies are experiencing and have experienced in the past downturns in which economic activity was impacted by falling demand for a variety of goods and services, increased volatility of interest rates, elevated rates of inflation, restricted credit, poor liquidity, reduced corporate profitability, volatility in credit, equity and foreign exchange markets, bankruptcies and overall uncertainty with respect to the economy.
−Removed: The potential for economic disruption presents considerable risks to our business, including potential bankruptcies or credit deterioration of financial institutions with which we have substantial relationships.
−Removed: Such disruption could result in a decline in the sales of new products to our customers and the volume of transactions that we execute for existing customers.
−Removed: We also derive a substantial portion of our Scores segment revenues and operating income from our contracts with the three major consumer reporting agencies in the U.S., Experian, TransUnion and Equifax, and other parties that distribute our products to certain markets.
−Removed: The loss of or a significant change in a relationship with one of the three consumer reporting agencies with respect to their distribution of our products or with respect to our myFICO ® offerings, the loss of or a significant change in a relationship with a major customer, the loss of or a significant change in a relationship with a significant third-party distributor (including payment card processors), or the loss of or delay of significant revenues from these sources, could have a material adverse effect on our revenues and results of operations.
−Removed: The duration of the negative effects of the COVID-19 pandemic, and the extent to which they will impact our future revenues, results of operations and overall financial performance, remain uncertain.
−Removed: The COVID-19 pandemic has adversely affected the global economy, leading to reduced consumer spending and lending activities and disruptions and volatility in the global capital markets.
−Removed: COVID-19 has caused shutdowns to businesses and cities worldwide and has disrupted supply chains, business operations, travel, and consumer confidence.
−Removed: The situation surrounding the COVID-19 pandemic continues to evolve and its effects remain unknown.
−Removed: Our customers, and therefore our business and revenues, are sensitive to negative changes in general economic conditions and lending activities.
−Removed: The COVID-19 pandemic may affect the rate of spending on our solutions and could adversely affect our customers’ ability or willingness to purchase our products and services, cause prospective customers to change product selections or term commitments, delay or cancel their purchasing decisions, extend sales cycles, and potentially increase payment defaults, all of which could adversely affect our future revenues, results of operations and overall financial performance.
−Removed: We are unable to accurately predict the complete impact that COVID-19 will have on our future results of operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the severity and transmission rate of the virus and its variants, the duration and any resurgence of the outbreak, the extent and effectiveness of containment actions, the effectiveness and acceptance of any medical treatment and prevention options, and the impact of these and other factors on us, our employees, customers, partners and vendors, and on worldwide and U.S.
−Removed: economic conditions.
−Removed: If use of the FICO ® Score by Fannie Mae and Freddie Mac were to cease or decline, it could have a material adverse effect on our revenues, results of operations and stock price.
−Removed: A significant portion of our revenues in our Scores segment is attributable to the U.S.
−Removed: mortgage market, which includes, for mortgages eligible for purchase by The Federal National Mortgage Association (“Fannie Mae”) and The Federal Home Loan Mortgage Corporation (“Freddie Mac”), a requirement by those enterprises that U.S.
−Removed: lenders provide FICO® Scores for each mortgage delivered to them.
−Removed: However, their continued use of the FICO Score is currently subject to validation and approval by those enterprises and the Federal Housing Finance Agency.
−Removed: If other credit score models are approved for use with mortgages delivered to Fannie Mae and Freddie Mac, or the FICO Score is not approved for continued use with those mortgages, it could have a material adverse effect on our revenues, results of operations and stock price.
−Removed: If we are unable to access new markets or develop new distribution channels, our business and growth prospects could suffer.
+Added: While we expand our sales into international markets, the risks are greater as these markets are also experiencing substantial disruption and we are less well-known in them.
+Added: If we are unable to access new markets or develop new sales and distribution channels, our business and growth prospects could suffer.
We expect our future growth to depend, in part, on the sale of products and service solutions in industries and markets we do not currently serve.
−Removed: We also expect to grow our business by delivering our solutions through additional distribution channels.
−Removed: If we fail to penetrate these industries and markets to the degree we anticipate, or if we fail to develop additional distribution channels, we may not be able to grow our business, growth may occur more slowly than we anticipate, or our revenues and profits may decline.
+Added: We also expect to grow our business by delivering our solutions through additional sales and distribution channels.
+Added: If we fail to penetrate these industries and markets to the degree we anticipate, or if we fail to develop additional sales and distribution channels, we may not be able to grow our business, growth may occur more slowly than we anticipate, or our revenues and profits may decline.
We are subject to significant competition in the markets in which we operate, and our products and pricing strategies, and those of our competitors, could decrease our product sales and market share.
5 unchanged sentences
• neural network developers and artificial intelligence system builders;
−Removed: • fraud and compliance solutions providers;
+Added: • fraud solutions providers;
• scoring model builders;
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We also expect to experience competition from other technologies.
−Removed: For example, certain of our fraud solutions products compete against other methods of preventing payment card fraud, such as payment cards that contain the cardholder’s photograph;
−Removed: cardholder verification and authentication solutions;
−Removed: biometric measures on devices including fingerprint and face matching;
−Removed: and other card authorization techniques and user verification techniques.
+Added: For example, certain of our fraud solutions products compete against other methods of preventing payment card fraud, such as cardholder verification and authentication solutions;
+Added: mobile device payments and associated biometric measures on devices including fingerprint and face matching;
+Added: and other card authorization and user verification techniques.
Many of our existing and anticipated competitors have greater financial, technical, marketing, professional services and other resources than we do, and industry consolidation is creating even larger competitors in many of our markets.
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If we experience difficulties in these relationships, including competition from these third parties, our future revenues may be adversely affected.
−Removed: Many of our products are sold by distributors or partners, and we intend to continue to market and distribute our products through these existing and future distributor and partner relationships.
+Added: Many of our products are sold by distributors or partners, and we intend to continue to market and distribute our products through these existing distributor and partner relationships, as well as invest resources to develop additional sales, distribution and marketing relationships.
Our Scores segment relies on, among others, Experian, TransUnion and Equifax.
1 unchanged sentence
In addition, certain of our distributors presently compete with us and may compete with us in the future, either by developing competitive products themselves or by distributing competitive offerings.
−Removed: For example, Experian, TransUnion and Equifax have developed a credit scoring product to compete directly with our products and are actively selling the product.
+Added: For example, Experian, TransUnion and Equifax have developed a credit scoring product to compete directly with our products and are actively selling that product.
Competition from distributors or other sales and marketing partners could significantly harm sales of our products and services.
+Added: Our revenues, results of operations and overall financial performance may be negatively impacted by health epidemics or other disease outbreaks, such as the COVID-19 pandemic.
+Added: Our customers, and therefore our business and revenues, are sensitive to negative changes in general economic conditions and lending activities.
+Added: Health epidemics or disease outbreaks, such as the COVID-19 pandemic, could impact the rate of spending on our solutions and could adversely affect our customers’ ability or willingness to purchase our products and services, cause prospective customers to change product selections or term commitments, delay or cancel their purchasing decisions, extend sales cycles, and potentially increase payment defaults, all of which could adversely affect our future revenues, results of operations and overall financial performance.
+Added: If use of the FICO ® Score by Fannie Mae and Freddie Mac were to cease or decline, it could have a material adverse effect on our revenues, results of operations and stock price.
+Added: A significant portion of our revenues in our Scores segment is attributable to the U.S.
+Added: mortgage market, which includes, for mortgages eligible for purchase by The Federal National Mortgage Association (“Fannie Mae”) and The Federal Home Loan Mortgage Corporation (“Freddie Mac”), a requirement by those enterprises that U.S.
+Added: lenders provide FICO® Scores for each mortgage delivered to them.
+Added: However, their continued use of the FICO Score is subject to ongoing validation and approval by those enterprises and the Federal Housing Finance Agency.
+Added: If other credit score models are approved for use with mortgages delivered to Fannie Mae and Freddie Mac, or the FICO Score is not approved for continued use with those mortgages, it could have a material adverse effect on our revenues, results of operations and stock price.
+Added: We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed.
+Added: Our success depends, in part, upon our proprietary technology and other intellectual property rights.
+Added: To date, we have relied primarily on a combination of copyright, patent, trade secret, and trademark laws, and nondisclosure and other contractual restrictions on copying and distribution, to protect our proprietary technology.
+Added: This protection of our proprietary technology is limited, and our proprietary technology could be used by others without our consent.
+Added: In addition, patents may not be issued with respect to our pending or future patent applications, and our patents may not be upheld as valid or may not prevent the development of competitive products.
+Added: Any disclosure, loss, invalidity of, or failure to protect our intellectual property could negatively impact our competitive position, and ultimately, our business.
+Added: There can be no assurance that our protection of our intellectual property rights in the U.S.
+Added: or abroad will be adequate or that others, including our competitors, will not use our proprietary technology without our consent.
+Added: Furthermore, litigation may be necessary to enforce our intellectual property rights, to protect our trade secrets, or to determine the validity and scope of the proprietary rights of others.
+Added: Such litigation could result in substantial costs and diversion of resources and could harm our business, financial condition or results of operations.
+Added: Some of our technologies were developed under research projects conducted under agreements with various U.S.
+Added: government agencies or subcontractors.
+Added: Although we have commercial rights to these technologies, the U.S.
+Added: government typically retains ownership of intellectual property rights and licenses in the technologies developed by us under these contracts, and in some cases can terminate our rights in these technologies if we fail to commercialize them on a timely basis.
+Added: Under these contracts with the U.S.
+Added: government, the results of research may be made public by the government, limiting our competitive advantage with respect to future products based on our research.
Our reengineering efforts may cause our growth prospects and profitability to suffer.
As part of our management approach, we pursue ongoing reengineering efforts designed to grow revenues through strategic resource allocation and improve profitability through cost reductions.
−Removed: Our reengineering efforts may not be successful over the long term should we fail to reduce expenses at the anticipated level, or should we fail to increase revenues to anticipated levels or at all.
+Added: Our reengineering efforts may not be successful over the long term should we fail to reduce expenses or increase revenues to anticipated levels or at all.
If our reengineering efforts are not successful over the long term, our revenues, results of operations and business may suffer.
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• failure to effectively transfer liabilities, contracts, facilities and employees to a purchaser;
−Removed: • divestiture terms that contain potential future purchase price adjustments or the exclusion of assets or liabilities that must be divested, managed or run off separately;
+Added: • divestiture terms that contain potential future purchase price adjustments or require that assets or liabilities be divested, managed or run off separately;
• diversion of management's attention from our other businesses;
16 unchanged sentences
• we may not realize the anticipated increase in our revenues from an acquisition for a number of reasons, including if a larger than predicted number of customers decline to renew their contracts, if we are unable to incorporate the acquired technologies or products with our existing product lines in a uniform manner, if we are unable to sell the acquired products to our customer base or if contract models of an acquired company or changes in accounting treatment do not allow us to recognize revenues on a timely basis;
−Removed: • our use of cash to pay for acquisitions may limit other potential uses of our cash, including stock repurchases, dividend payments and retirement of outstanding indebtedness;
+Added: • our use of cash to pay for acquisitions may limit other potential uses of our cash, including stock repurchases, and retirement of outstanding indebtedness;
• to the extent we issue a significant amount of equity securities in connection with future acquisitions, existing stockholders may be diluted and earnings per share may decrease.
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will increase our exposure to the risks of conducting operations in international markets.
−Removed: We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed.
−Removed: Our success depends, in part, upon our proprietary technology and other intellectual property rights.
−Removed: To date, we have relied primarily on a combination of copyright, patent, trade secret, and trademark laws, and nondisclosure and other contractual restrictions on copying and distribution, to protect our proprietary technology.
−Removed: This protection of our proprietary technology is limited, and our proprietary technology could be used by others without our consent.
−Removed: In addition, patents may not be issued with respect to our pending or future patent applications, and our patents may not be upheld as valid or may not prevent the development of competitive products.
−Removed: Any disclosure, loss, invalidity of, or failure to protect our intellectual property could negatively impact our competitive position, and ultimately, our business.
−Removed: There can be no assurance that our protection of our intellectual property rights in the U.S.
−Removed: or abroad will be adequate or that others, including our competitors, will not use our proprietary technology without our consent.
−Removed: Furthermore, litigation may be necessary to enforce our intellectual property rights, to protect our trade secrets, or to determine the validity and scope of the proprietary rights of others.
−Removed: Such litigation could result in substantial costs and diversion of resources and could harm our business, financial condition or results of operations.
−Removed: Some of our technologies were developed under research projects conducted under agreements with various U.S.
−Removed: government agencies or subcontractors.
−Removed: Although we have commercial rights to these technologies, the U.S.
−Removed: government typically retains ownership of intellectual property rights and licenses in the technologies developed by us under these contracts, and in some cases can terminate our rights in these technologies if we fail to commercialize them on a timely basis.
−Removed: Under these contracts with the U.S.
−Removed: government, the results of research may be made public by the government, limiting our competitive advantage with respect to future products based on our research.
Operational Risks
7 unchanged sentences
Attacks or other threats to our supply chain for such software and materials may render us unable to provide assurances of the origin of such software and materials, and could put us at risk of distributing software or other materials that may cause harm to ourselves, our customers or other third parties.
+Added: In addition, increased attention on and use of artificial intelligence increases the risk of cyber-attacks and data breaches, which can occur more quickly and evolve more rapidly when artificial intelligence is used.
+Added: Further, use of artificial intelligence by our employees, whether authorized or unauthorized, increases the risk that our intellectual property and other proprietary information will be unintentionally disclosed.
Cybersecurity breaches could expose us to a risk of loss, the unauthorized disclosure of consumer or customer information, significant litigation, regulatory fines, penalties, loss of customers or reputational damage, indemnity obligations and other liability.
4 unchanged sentences
Cybersecurity breaches experienced by our vendors, by our distributors, by our customers, by companies that we acquire, or by us may trigger governmental notice requirements and public disclosures, which may lead to widespread negative publicity.
−Removed: Any such cybersecurity breach, whether actual or perceived, could harm our reputation, erode customer confidence in the effectiveness of our security measures, negatively impact our ability to attract new customers, cause existing customers to curtail or cease their use of our products and services, cause regulatory or industry changes that impact our products and services, or subject us to third-party lawsuits, regulatory fines or other action or liability, all of which could materially and adversely affect our business and operating results.
−Removed: In addition, the military conflict between Russia and Ukraine could result in cyberattacks that could directly or indirectly impact us, including retaliatory acts of cyberwarfare from Russia against U.S.
−Removed: companies, or the potential proliferation of malware from the conflict into systems unrelated to the conflict.
+Added: We may also be affected by cybersecurity breaches experienced by customers who use our products on-premises, and those breaches may occur due to factors not under our control, including a customer’s failure to timely install updates and fixes to our products, vulnerabilities in a customer’s own cybersecurity measures, and other factors.
+Added: Any cybersecurity breach, whether actual or perceived, could harm our reputation, erode customer confidence in the effectiveness of our security measures, negatively impact our ability to attract new customers, cause existing customers to curtail or cease their use of our products and services, cause regulatory or industry changes that impact our products and services, or subject us to third-party lawsuits, regulatory fines or other action or liability, all of which could materially and adversely affect our business and operating results.
If we experience business interruptions or failure of our information technology and communication systems, the availability of our products and services could be interrupted which could adversely affect our reputation, business and financial condition.
1 unchanged sentence
Any disruption of or interference with our use of data centers, information technology or communication systems of our external service providers would adversely affect our operations and our business.
−Removed: As we continue to grow our SaaS business, our dependency on the continuing operation and availability of these systems increases.
+Added: As we continue to grow our Software segment’s business, our dependency on the continuing operation and availability of these systems increases.
Our systems and data centers, and those of our external service providers, could be exposed to damage or interruption.
5 unchanged sentences
Our business strategy and our future success will depend in large part on our ability to attract and retain experienced sales, consulting, research and development, marketing, technical support and management personnel.
−Removed: The complexity of our products requires highly trained personnel for research and development and to assist customers with product installation, deployment, maintenance and support.
−Removed: The labor market for these individuals is very competitive due to the limited number of people available with the necessary technical skills and understanding and may become more competitive with general market and economic improvement.
+Added: The labor market for these individuals, particularly in the complex technical disciplines of software engineering, data science, and cyber security, is very competitive due to the limited number of people available with the necessary technical skills and understanding to support our complex products and it may become more competitive with general market and economic improvement.
We cannot be certain that our compensation strategies will be perceived as competitive by current or prospective employees.
−Removed: This could impair our ability to recruit and retain personnel.
−Removed: We have experienced difficulty in recruiting qualified personnel, especially technical, sales and consulting personnel, and we may need additional staff to support new customers and/or increased customer needs.
+Added: This and other competitive factors could impair our ability to recruit and retain personnel.
+Added: We have experienced past difficulty in recruiting and retaining qualified personnel, especially in these intensely competitive technical skill areas, and we may experience future difficulty in recruiting and retaining such personnel, at a time when we may need additional staff to support expanded research and development efforts, new customers and/or increased customer needs.
We may also recruit skilled technical professionals from other countries to work in the U.S., and from the U.S.
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identity theft, file freezing, security breach notification and similar state privacy laws;
−Removed: and the data protection laws of other countries such as the General Data Protection Regulation (the “GDPR”) in the European Union (“E.U.”) and the United Kingdom’s (“U.K.”));
+Added: and the data protection laws of other countries such as the General Data Protection Regulation (the “GDPR”) in the European Union (“E.U.”) and the United Kingdom (“U.K.”));
• Laws and regulations relating to the privacy, security and transmission of protected health information of individuals, including the Health Insurance Portability and Accountability Act of 1996, as amended by the American Recovery and Reinvestment Act of 2009 (“HIPAA”) and the Health Information Technology for Economic and Clinical Health Act (“HITECH”) and their respective implementing regulations;
11 unchanged sentences
the Clarifying Lawful Overseas Use of Data Act;
−Removed: and cyber incident notice requirements for banks and their service providers under rules and regulations issued by federal banking regulators;
+Added: cyber incident notice requirements for banks and their service providers under rules and regulations issued by federal banking regulators;
+Added: cybersecurity incident disclosure requirements for public companies under regulations issued by the SEC;
+Added: and identity theft, file freezing, and similar state privacy laws;
• Laws and regulations related to extension of credit to consumers through the Electronic Fund Transfers Act and Regulation E, as well as non‑governmental VISA and MasterCard electronic payment standards;
−Removed: • Laws and regulations applicable to secondary market participants (e.g., Fannie Mae and Freddie Mac) that could have an impact on our scoring products and revenues, including 12 CFR Part 1254 (Validation and Approval of Credit Score Models) issued by the Federal Housing Finance Agency in accordance with Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115-174), and any regulations, standards or criteria established pursuant to such laws or regulations;
+Added: • Laws and regulations applicable to secondary market participants (e.g., Fannie Mae and Freddie Mac) that could have an impact on our scoring products and revenues, including 12 CFR Part 1254 (Validation and Approval of Credit Score Models) issued by the Federal Housing Finance Agency in accordance with Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115-174), and any regulations, standards or criteria established pursuant to such laws or regulations, including the ongoing validation and approval of the use of the FICO Score by Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency;
• Laws and regulations applicable to our customer communication clients and their use of our products and services (e.g., the Telemarketing Sales Rule, Telephone Consumer Protection Act, the CAN-SPAM Act, the Fair Debt Collection Practices Act, and regulations promulgated thereunder, and similar state laws and similar laws in other countries);
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• Financial regulatory standards (e.g., Sarbanes-Oxley Act requirements to maintain and verify internal process controls, including controls for material event awareness and notification);
−Removed: • Regulatory requirements for managing third parties (e.g., vendors, contractors, suppliers and distributors).
−Removed: and foreign jurisdictions have passed, or are currently contemplating, a variety of consumer protection, data privacy, and data security laws and regulations that may relate to our business or the business of our customers or affect the demand for our products and services.
+Added: • Laws and regulations that apply to outsourcing of services by our clients, and that set forth requirements for managing third parties (e.g., vendors, contractors, suppliers and distributors).
+Added: and foreign jurisdictions have passed, or are currently contemplating, a variety of consumer protection, data privacy, and cyber and data security laws and regulations that may relate to our business or the business of our customers or affect the demand for our products and services.
For example, the GDPR in the E.U.
imposes strict obligations and restrictions on the collection and use of E.U.
−Removed: personal data, and requires the implementation of certain approved safeguards for any cross-border transfers of such data.
−Removed: each have issued new standard contractual clauses (“SCCs”) as an approved safeguard for the transfer of E.U.
−Removed: personal data along with guidance imposing further obligations on controllers and processors that rely on SCCs for such cross-border transfers, including carrying out an appropriate data transfer impact assessment to evaluate whether adequate protection will be afforded to the data in the destination country.
−Removed: Our implementation of the new SCCs for affected data flows may involve additional compliance costs associated with performing any necessary assessments, engaging in contract negotiations with third parties, and/or (if appropriate) localizing certain data processing activities.
−Removed: Furthermore, such data transfer restrictions may have an adverse impact on cross-border transfers of personal data within our business and may subject us to additional scrutiny from E.U.
+Added: personal data, and also on the transfer of such data to countries that have not been determined by the E.U.
+Added: to provide adequate data privacy protections, unless there are additional approved transfer safeguards in place (such as the use of “standard contractual clauses” and the performance of appropriate data transfer impact assessments).
+Added: Our implementation of processes to meet such requirements for affected data flows may involve additional compliance costs associated with maintaining appropriate regulatory certifications, performing any necessary assessments, engaging in contract negotiations with third parties and implementing approved standard contractual clauses, and/or (if appropriate) localizing certain data processing activities.
+Added: Furthermore, such data transfer restrictions, which may involve interpretive issues, may have an adverse impact on cross-border transfers of personal data and may subject us and our customers to additional scrutiny from E.U.
data protection authorities.
−Removed: Brazil, India, South Africa, Japan, China, Israel, Canada, and several other countries have introduced and, in some cases, enacted, similar privacy and data security laws.
+Added: Brazil, India, South Africa, Japan, China, Israel, Canada, and numerous other countries have introduced and, in some cases, enacted, similar data privacy and cyber and data security laws.
The California Consumer Privacy Act of 2018 (“CCPA”) gives California residents certain privacy rights in the collection and disclosure of their personal information and requires businesses to make certain disclosures and take certain other acts in furtherance of those rights.
−Removed: Additionally, effective January 1, 2023, the California Privacy Rights Act (the “CPRA”) will revise and significantly expand the scope of the CCPA.
+Added: Additionally, effective January 1, 2023, the California Privacy Rights Act (the “CPRA”) revised and significantly expanded the scope of the CCPA.
The CPRA also created a new agency, the California Privacy Protection Agency, authorized to implement and enforce the CCPA and the CPRA, which could result in increased privacy and information security regulatory actions.
states have considered and/or enacted similar privacy laws.
−Removed: For example, Virginia, Utah, Connecticut, and Colorado have passed consumer privacy laws that become effective in 2023.
+Added: For example, Virginia, Utah, Connecticut, and Colorado have passed consumer privacy laws with effective dates in 2023, and Indiana, Iowa, Montana, Oregon, Tennessee, and Texas have passed consumer privacy laws that will become effective in 2024, 2025, or 2026.
In addition, there has been an increased focus on laws and regulations related to our business and the business of our customers, including by the current U.S.
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Congress, and U.S.
−Removed: regulators, including the CFPB, relating to policy concerns with regard to the operation of consumer reporting agencies, the use and accuracy of credit data, the use of credit scores, algorithm accountability and transparency, and fair lending.
+Added: regulators, including the CFPB, relating to policy concerns with regard to the operation of consumer reporting agencies, the use and accuracy of credit and alternative data, the use of credit scores and fair lending, and the use, transparency, and fairness of algorithms, artificial intelligence, and machine learning in business processes.
The European Commission has also released draft proposed regulations (i.e., the EU AI Act) that would establish requirements for the provision and use of products that leverage artificial intelligence, machine learning, and similar analytic and statistical modeling technologies, including credit scoring.
−Removed: The EU AI Act is expected to be finalized in 2024 or 2025.
+Added: The final version of EU AI Act is expected to be published by the end of 2023 and is expected to become effective in 2026.
The costs and other burdens of compliance with such laws and regulations could negatively impact the use and adoption of our solutions and reduce overall demand for them.
−Removed: Additionally, concerns regarding data privacy may cause our customers, or their customers and potential customers, to resist providing the data necessary to allow us to deliver our solutions effectively.
+Added: Additionally, concerns regarding data privacy and cyber and data security may cause our customers, or their customers and potential customers, to resist providing the data necessary to allow us to deliver our solutions effectively.
Even the perception that the privacy of personal information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our solutions and any failure to comply with such laws and regulations could lead to significant fines, penalties or other liabilities.
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Global economic uncertainty has produced, and continues to produce, substantial stress, volatility, illiquidity and disruption of global credit and other financial markets.
−Removed: Various factors contribute to the uncertain economic environment, including the conflict between Russia and Ukraine, the level and volatility of interest rates, high inflation, the continuing effects of the COVID-19 pandemic, an actual recession or fears of a recession, trade policies and tariffs, geopolitical tensions, Brexit, the U.K.
−Removed: withdrawal from the E.U., and political and governmental leadership changes in the U.K.
−Removed: and certain E.U.
+Added: Various factors contribute to the uncertain economic environment, including geopolitical tensions, military conflicts, the level and volatility of interest rates, the level of inflation, the continuing effects of the COVID-19 pandemic, an actual recession or fears of a recession, trade policies and tariffs, and political and governmental instability.
Economic uncertainty has and could continue to negatively affect the businesses and purchasing decisions of companies in the industries we serve.
Such disruptions present considerable risks to our businesses and operations.
−Removed: As global economic conditions experience stress and negative volatility, or if there is an escalation in regional or global conflicts, such as that between Russia and Ukraine, or terrorism, we will likely experience reductions in the number of available customers and in capital expenditures by our remaining customers, longer sales cycles, deferral or delay of purchase commitments for our products and increased price competition, which may adversely affect our business, results of operations and liquidity.
+Added: As global economic conditions experience stress and negative volatility, or if there is an escalation in regional or global conflicts, or terrorism, we will likely experience reductions in the number of available customers and in capital expenditures by our remaining customers, longer sales cycles, deferral or delay of purchase commitments for our products and increased price competition, which may adversely affect our business, results of operations and liquidity.
As a result of these conditions, risks and uncertainties, we may need to modify our strategies, businesses or operations, and we may incur additional costs in order to compete in a changed business environment.
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• the presence and acceptance of varying levels of business corruption in international markets;
−Removed: • geopolitical instability, terrorism, and war, including the conflict between Ukraine and Russia;
+Added: • geopolitical tensions, instability, terrorism, and military conflicts;
• natural disasters and pandemics, including the COVID-19 pandemic, and individual countries’ reactions to them;
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There can be no assurance that we will be able to successfully address each of these challenges.
−Removed: Additionally, some of our business will be conducted in currencies other than the U.S.
+Added: Additionally, some of our business is and will be conducted in currencies other than the U.S.
Substantial movements in foreign exchange rates relative to the dollar could adversely impact our cash flows, results of operations and financial position.
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If we do not accurately predict these cycles, we may not forecast our financial results accurately, and our stock price could be adversely affected.
−Removed: We experience difficulty in forecasting our revenues accurately.
In our Software segment, the length of our sales cycles makes it difficult for us to predict the quarter in which sales will occur.
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We have limited visibility on those sales until we receive royalty reports from those partners at the end of each billing period.
−Removed: Furthermore, the volume of our Scores sales depends heavily on macroeconomic conditions that are hard to forecast.
−Removed: If we are unable to accurately forecast our revenues, our stock price could be adversely affected.
−Removed: We typically have revenue-generating transactions concentrated in the final weeks of a quarter, which may prevent accurate forecasting of our financial results and cause our stock price to decline.
−Removed: Large portions of our customer agreements are consummated in the weeks immediately preceding quarter end.
−Removed: Before these agreements are consummated, we create and rely on forecasted revenues for planning, modeling and earnings guidance.
−Removed: Forecasts, however, are only estimates and actual results may vary for a particular quarter or longer periods of time.
−Removed: Consequently, significant discrepancies between actual and forecasted results could limit our ability to plan, budget or provide accurate guidance, which could adversely affect our stock price.
−Removed: Any publicly-stated revenue or earnings projections are subject to this risk.
+Added: Furthermore, the volume of our Scores sales depends heavily on macroeconomic conditions that are hard to forecast, including, for example, the volume of transactions in the U.S.
+Added: mortgage and credit card markets, which account for a significant portion of the revenues in our Scores segment.
+Added: If we are unable to accurately forecast our revenues, our ability to plan, budget or provide accurate guidance could be limited, and our stock price could be adversely affected.
Our financial results and key metrics fluctuate within each quarter and from quarter to quarter, making our future revenue, annual recurring revenue (“ARR”), and financial results difficult to predict, which may cause us to miss analyst expectations and may cause the price of our common stock to decline.
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• the level and volatility of interest rates and the level of inflation;
−Removed: • fluctuations in domestic and international economic conditions, such as those which have occurred as a result of the COVID-19 pandemic;
+Added: • fluctuations in domestic and international economic conditions;
• our ability to complete large installations, and to adopt and configure cloud-based deployments, on schedule and within budget;
21 unchanged sentences
Significant judgment is required in determining our worldwide provision for income taxes.
−Removed: Our future effective tax rates could be adversely affected by changes in tax laws (including the Inflation Reduction Act of 2022), by our ability to generate taxable income in foreign jurisdictions in order to utilize foreign tax losses, and by the valuation of our deferred tax assets.
+Added: Our future effective tax rates could be adversely affected by changes in tax laws, by our ability to generate taxable income in foreign jurisdictions in order to utilize foreign tax losses, and by the valuation of our deferred tax assets.
In addition, we are subject to the examination of our income tax returns by the Internal Revenue Service and other tax authorities.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.