Content analysis
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H.S. senior Good
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New words:
America, backdrop, CDPA, Colorado, CPA, deficit, Delta, fluid, lawfully, North, operationally, rebound, recessionary, redomiciling, revisited, revoked, shortened, thousand, unanimously, variant, Virginia
Removed:
Bemont, candidate, Christal, creation, CRO, deep, filled, Graham, Jamie, Kiser, morale, top, withheld, written
Financial report summary
?Competition
Microsoft • Magic Software Enterprises • Innodata • Formula Systems • Virtusa • Oracle • Snaplogic • Vision • Alteryx Inc - Ordinary Shares • MatillionRisks
- We have a history of losses and may not be able to achieve profitability or positive cash flows on a consistent basis. If we cannot achieve profitability or positive cash flows, our business, financial condition and results of operations may suffer.
- If we do not appropriately manage any future growth or are unable to improve our systems and processes, our business, financial condition, results of operations and prospects will be adversely affected.
- We have experienced employee turnover in sales and marketing, in part related to recent structural changes in the organization. This turnover may cause disruption to our sales activities, unforeseen systems and process challenges, and may adversely affect our operating results.
- Prolonged economic uncertainties or downturns, including from the COVID-19 pandemic could harm our business.
- If we are unable to increase sales of our solution to new customers and sell additional products to our existing customers, our future revenue and results of operations will be harmed.
- We depend on a highly skilled workforce, our executive officers and members of our leadership team. An inability to retain and attract highly skilled employees or the loss of one or more of our executive officers or members of our leadership team could harm our business.
- Interruptions or performance problems associated with our technology and infrastructure, such as security incidents, and our reliance on technologies from third parties, may adversely affect our business operations and financial results.
- If our existing customers terminate, do not renew their subscriptions, or reduce their spending with us, it could have an adverse effect on our business and results of operations.
- Our future success depends in large part on the growth of the market for cloud data management and an increase in the desire to ingest, store and process data in the cloud, and the market for cloud data warehouses and applications may not grow as expected and, even if such growth occurs, our business may not grow at similar rates, or at all.
- We derived a substantial portion of our subscription revenue in the year ended December 31, 2020 from our term-based deployed Talend Big Data Integration offering and our cloud offerings and failure of these offerings to satisfy customer demands or to achieve increased market acceptance would harm our business, results of operations, financial condition and growth prospects.
- Incorrect implementation or use of our software could result in customer dissatisfaction and negatively affect our business, operations, financial results and growth prospects.
- Our ability to increase sales of our solution is highly dependent on the quality of our customer support, and our failure to offer high-quality support would have an adverse effect on our business, reputation and results of operations.
- We face intense competition in our market and we may lack sufficient financial or other resources to maintain or improve our competitive position.
- If we do not accurately predict, prepare for, and respond promptly to the rapidly evolving technological and market developments and changing customer needs in our market, our competitive position and prospects will be harmed.
- We may be unable to predict the future course of open source technology development, which could reduce the market appeal of our offerings, damage our reputation and adversely affect our business, financial condition, results of operations and cash flows.
- A significant defect, security vulnerability, error or performance failure in our software could cause us to lose revenue and expose us to liability.
- A breach of our security measures or unauthorized access to private or proprietary data, or a perception that any security breach or other incident has occurred, may result in our software being perceived as not secure, lower customer use or stoppage of use of our products, and significant liabilities.
- Our rebranding efforts to maintain and enhance our brands may not be successful.
- Any failure to raise additional capital or generate the significant capital necessary to expand our operations and invest in new products could reduce our ability to compete and could harm our business.
- Our relatively limited operating history, particularly as a cloud company, makes it difficult to evaluate our current business and prospects and may increase the risks associated with your investment.
- Delivering certain of our products via the cloud increases our expenses and may pose other challenges to our business.
- The sales prices of our products may decrease, which may reduce our gross profits and adversely affect our financial results.
- The competitive position of our product offerings depends in part on their ability to operate with third-party products and services and our customers’ existing infrastructure.
- We rely on channel partners to execute a portion of our sales. If our channel partners fail to perform, our ability to sell our solution will be limited, and, if we fail to optimize our channel partner model going forward, our results of operations will be harmed.
- If we are unable to maintain successful relationships with our strategic partners, our business operations, financial results and growth prospects could be adversely affected.
- The seasonality of our business can create variance in our quarterly purchases, subscription revenue and cash flows from operations.
- Our current research and development efforts may not produce successful products or features that result in significant revenue, cost savings or other benefits in the near future, if at all.
- We have a limited track record in acquiring and integrating other businesses and we may acquire other businesses, which could require significant management attention, disrupt our business, dilute shareholder value and adversely affect our results of operations.
- Failure to protect our proprietary technology and intellectual property rights could substantially harm our business and results of operations.
- We could incur substantial costs as a result of any claim of infringement or other violations by us of another party’s intellectual property rights.
- Our use of open source software could negatively affect our ability to sell our solution and subject us to possible litigation.
- In connection with the operation of our business, we collect, store, transfer and otherwise process certain personal data and personally identifiable information. As a result, our business is subject to a variety of federal, state, foreign government and industry regulations, as well as self-regulation, related to privacy, data security and data protection. Our actual or perceived failure to protect personal data and other information could have an adverse effect on our business.
- We are subject to governmental export and import controls and economic sanctions that could impair our ability to compete in international markets or subject us to liability if we violate these controls.
- Employment laws in some of the countries in which we operate are stringent, which could restrict our ability to react to market changes and cause us to incur higher expenses.
- Failure to comply with anti-bribery, anti-corruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, and similar laws associated with our activities outside of the United States could subject us to penalties and other adverse consequences.
- If we are not successful in sustaining and expanding our international business, we may incur additional losses and our revenue growth could be harmed.
- Exposure to United Kingdom political developments, including the impact of “Brexit”, could have a material adverse effect on us.
- Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added, digital services, or similar taxes, and we could be subject to liability with respect to past or future sales, which could adversely affect our financial results.
- Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States.
- We have incurred substantial indebtedness that may decrease our business flexibility, access to capital, and/or increase our borrowing costs, and we may still incur substantially more debt, which may adversely affect our operations and financial results.
- Servicing our debt, including the 2024 Notes, will require a significant amount of cash. We may not have sufficient cash flow from our business to pay our substantial debt, and we may not have the ability to raise the funds necessary to settle conversions of the 2024 Notes in cash or to repurchase the 2024 Notes upon a fundamental change, which could adversely affect our business and results of operations.
- The conditional conversion feature of the 2024 Notes, when triggered, may adversely affect our financial condition and operating results.
- The accounting method for convertible debt securities that may be settled in cash, such as the 2024 Notes, could have a material effect on our reported financial results.
- Conversion of the 2024 Notes will dilute the ownership interest of existing shareholders or may otherwise depress the price of our ADSs and ordinary shares.
- The market price for our ADSs has been and may be volatile or may decline.
- Substantial future sales or perceived potential sales of our ADSs, ordinary shares, or other securities in the public market could cause the price of our ADSs to decline significantly.
- The requirements of being a public company in the United States, particularly while being domiciled in France, may strain our resources, divert management’s attention and affect our ability to attract and retain executive management and qualified board members.
- Share ownership is concentrated in the hands of certain large shareholders and management, who are able to exercise a direct or indirect controlling influence on us.
- You may be subject to limitations on the transfer of your ADSs and the withdrawal of the underlying ordinary shares.
- Your right as a holder of ADSs to participate in any future preferential subscription rights or to elect to receive dividends in shares may be limited, which may cause dilution to your holdings.
- U.S. investors may have difficulty enforcing civil liabilities against our company and directors and the experts named in our annual report.
- We do not currently intend to pay dividends on our securities, and, consequently, your ability to achieve a return on your investment depends on appreciation in the price of the ADSs and ordinary shares. In addition, French law may limit the amount of dividends we are able to distribute.
- United States persons who hold our ADSs may suffer adverse tax consequences if we are characterized as a passive foreign investment company.
- The announcement and pendency of the transactions contemplated by the Memorandum of Understanding (MoU) entered into by us and Thoma Bravo may adversely affect our business or results of operations.
Management Discussion
- We primarily derive our revenue from the sale of subscriptions and professional services engagements.
- Subscription revenue consists of fees earned from arrangements to provide customers with the right to use our commercial software either in a cloud-based infrastructure that we provide or installed within the customer’s own environment. Our subscriptions include unspecified future updates, upgrades and enhancements and technical product support that includes single offering customer success packages comprised of initial onboarding, technical advice, mission critical support, and training.
- Professional services revenue consists of fees earned for consulting engagements related to the deployment and configuration of our product offering, training customers and associated expenses. Consulting engagements consist of time-based arrangements for which the revenue is recognized using a time and materials basis. Training revenue results from contracts to provide educational services to customers and partners regarding the use of our technologies and is recognized as delivered. We expect professional services revenue will decline as a percentage of total revenue as we work with more systems integrators, who assist with the implementation of our solutions, as our cloud-based offerings increase because cloud customers typically demand fewer professional services, and potential project implementation delays resulting from the COVID-19 pandemic.