Meet (MEET)

Risks

• If we cannot effectively drive engagement and monetization on our Live feature on our mobile apps, our future operating results may suffer.
• If we cannot increase our daily and monthly active users and increase their engagement on our mobile apps, our future operating results may decline.
• If we fail to retain existing users or add new users, or if our users decrease their level of engagement, our revenue, financial results and business may be significantly harmed.
• Real or perceived inaccuracies in our user and other metrics may harm our reputation and negatively affect our business.
• Product development in the mobile social app industry is inherently prone to the risk of failing to attract users, and the products may not have their intended impact.
• If our users do not interact with each other or our viral marketing strategy fails, our ability to attract new users may suffer and our revenue may decrease.
• We generate a significant portion of our revenue from advertising, and in particular, digital advertising. If we incur a loss of advertisers, or a reduction in spending by advertisers, our revenue could substantially decline, resulting in significant operating losses and negatively impacting our cash flows.
• If we fail to maintain and expand our base of advertisers, our revenue and our business could be harmed.
• We make product and investment decisions that may not prioritize short-term financial results and may not produce the long-term benefits that we expect.
• Because we face significant competition from other social networks, video platforms and companies with greater resources, we may not be able to compete effectively.
• Because we face competition from traditional media companies, we may not be included in the advertising budgets of large advertisers, which could harm our operating results.
• We rely on the Apple App Store and the Google Play Store to distribute our mobile apps. Our business or operating margins may suffer if we are unable to maintain a good relationship with Apple and Google, if their terms and conditions or pricing change to our detriment, if we violate, or either company believes that we have violated, its terms and conditions or if either of these platforms are unavailable for a prolonged period of time.
• If the Apple App Store or Google Play Store changes its search and rating algorithms, it could affect our ability to acquire new mobile members.
• Because we rely on Facebook as a distribution, marketing and promotion platform, if our relationship with Facebook changes or if Facebook loses market share, our business could be adversely affected.
• If we are unable to continue to develop or acquire successful apps for mobile platforms and stand-alone mobile apps, our growth prospects could suffer.
• If our efforts to attract and retain subscribers is not successful, our business could be adversely affected.
• If we cannot address technological change in our industry in a timely fashion and develop new services, our future results of operations could be adversely affected.
• Because we plan to continue expanding our operations abroad where we have limited operating experience, we may be subject to increased business, economic and regulatory risks that could affect our financial results.
• If we are unable to implement payment gateways to our users, our results of operations could be adversely affected.
• Because our business is subject to complex and evolving U.S. and foreign laws and regulations regarding privacy, data protection and other matters, we could be subject to claims, changes to our business practices, increased cost of operations or declines in user growth or engagement, or otherwise sustain harm to our business.
• We use email, push notifications and text message campaigns to drive user engagement. Disruptions in, restrictions on and certain legal risks associated with the sending or receipt of emails, push notifications or text messages or a decrease in user willingness to receive emails, push notifications and text messages could adversely affect our revenue and business.
• Technologies have been developed that can block the display of our advertisements, which could adversely affect our financial results.
• A failure in or breach of our operational or security systems or infrastructure, or those of third parties with which we do business, including as a result of cyberattacks, could disrupt our businesses, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and cause losses.
• If we experience computer malware, viruses, hacking, phishing and distributed denial of service attacks and spamming, it could harm our business.
• Increased government regulations could adversely affect our business.
• If laws that tax usage and sales on the Internet are enacted, increased taxes could adversely affect the commercial use of our marketing services and our financial results.
• Our failure to comply with existing or future laws, regulations or user concerns regarding privacy and protection of user data could adversely affect our business.
• We have been subject to regulatory investigations and governmental legal proceedings and we expect to be subject to the same in the future, which could cause us to incur substantial costs or require us to change our business practices in a manner materially adverse to our business.
• If our users fail to comply with existing or future laws and regulations, it could adversely affect our business.
• We face certain risks related to the physical and emotional safety of our users.
• Shareholder activism could cause a disruption to our business.
• The requirements of being a public company may strain our resources and divert management’s attention.
• If we do not attract and retain highly-qualified employees, we may not be able to grow effectively.
• If we experience any failure or significant interruption in our network, it could harm our business.
• Because our software is highly technical, undetected errors, if any, could adversely affect our business.
• If we cannot protect our intellectual property rights, we may be unable to compete with competitors developing similar products.
• If we become subject to intellectual property infringement claims, it could cause us to incur significant expenses, pay substantial damages and prevent service delivery.
• Class action lawsuits or other litigation matters are expensive and time consuming and could harm our business, financial condition or results of operations.
• User misconduct and misuse of Live or inappropriate and indecent information disseminated on Live may adversely impact our brand image, affect our business and subject us to liabilities.
• Negative publicity related to Live may harm our brands and reputation.
• Live has a limited operating history in a dynamic industry, which makes it difficult to evaluate our future prospects.
• Live is based on a relatively new business model in relatively new markets and user demand may change or decrease substantially.
• If our broadcasters do not continue to contribute content or their contributions are not appreciated by users, we may experience a decline in the number of active users of Live and a decline in user engagement.
• We intend to launch a video-as-a-service product that could expose us to new, unknown and potentially unforeseeable risks, including claims, liabilities and potential regulatory or other scrutiny or action.
• Our business is subject to interruptions, delays or failures resulting from global or national health epidemics or concerns.
• Because our stock price may be volatile due to factors beyond our control, an investor could lose all or part of their investment.
• Delaware law, our certificate of incorporation and our bylaws contain anti-takeover provisions, and our Board adopted a Tax Benefits Preservation Plan, any of which could delay or discourage takeover attempts that some stockholders may consider favorable.
• Because we may issue preferred stock without the approval of our shareholders, it could be more difficult for a third party to acquire us and could depress our stock price.
• If registration rights that we have previously granted are exercised, or if we grant additional registration rights in the future, the price of our common stock may be adversely affected.
• If securities or industry analysts publish inaccurate or unfavorable research about our business, our stock price could decline.
• We may require additional capital to meet our financial obligations and support business growth, which might not be available on acceptable terms or at all.
• If we default on our leasing and credit obligations, our operations may be interrupted and our business and financial results could be adversely affected.
• Our ability to use our net operating loss carryforwards to offset future taxable income for U.S. federal income tax purposes could be limited.
• Short sellers of our stock may be manipulative and may drive down the market price of our common stock.
• Foreign currency exchange rate fluctuations may affect our results of operations and financial results, which we report in U.S. dollars.
• We cannot be sure if or when the Merger will be completed.
• Because the Merger Agreement provides for fixed Per Share Merger Consideration for each outstanding share of our common stock, the consideration received at the time of the Merger may be lower than the public trading value of shares of our common stock when we entered into the Merger Agreement.
• Lawsuits may be filed against us and the members of our Board arising out of the Merger, which may delay or prevent the Merger.