QUMU Qumu Dashboard

Risks

• We may not be successful at implementing our long-term strategic roadmap.
• The COVID-19 pandemic has significantly impacted worldwide business practices and economic conditions and could have a material effect on Qumu’s business, financial condition and operating results.
• The markets for video content and software to manage video content are each in early stages of development. If this market does not develop or develops more slowly than Qumu expects, including as a result of COVID-19 impacts, Qumu’s revenues may decline or fail to grow.
• If we are unable to attract new customers, retain existing customers and sell additional products and services to our existing and new customers, our revenue growth and profitability will be adversely affected.
• We have a history of losses, and while we are investing heavily in sales, marketing and research and development to enhance revenue growth and become cash flow positive in late 2022, we may not achieve those goals or achieve or sustain cash flows or profitability in the future.
• We encounter long sales cycles with our enterprise video solutions, which could adversely affect our operating results in a given period.
• To compete effectively, we must continually improve existing products and introduce new products that achieve market acceptance.
• We face intense competition and such competition may result in price reductions, lower gross profits and loss of market share.
• Economic and market conditions, particularly those affecting our customers, have harmed and may continue to harm our business.
• Our sales will decline, and our business will be materially harmed, if our sales and marketing efforts are not effective.
• Competition for highly skilled personnel is intense, and if we fail to attract and retain talented employees, we may fail to compete effectively.
• We sell a significant portion of our products internationally, which exposes us to risks associated with international operations.
• Our enterprise video content management software products must be successfully integrated into our customers’ information technology environments and workflows, and changes to these environments, workflows or unforeseen combinations of technologies may harm our customers’ experience in using our software products.
• The growth and functionality of our enterprise video content management software products depend upon the solution’s effective operation with mobile operating systems and computer networks.
• Any failure of major elements of our products could lead to significant disruptions in our ability to serve customers, which could damage our reputation, reduce our revenues or otherwise harm our business.
• If we lose access to third-party licenses, our software product development and production may be delayed or we may incur additional expense to modify our products or products in development.
• If the limited amount of open source software that is incorporated into our products were to become unavailable or if we violate the terms of open source licenses, it could adversely affect sales of our products, which could disrupt our business and harm our financial results.
• If our domestic or international intellectual property rights are not adequately protected, others may offer products similar to ours or independently develop the same or similar technologies or otherwise obtain access to our technology and trade secrets, which could depress our product selling prices and gross profit or result in loss of market share.
• Changes in laws and regulations related to the Internet or changes in the Internet infrastructure itself may diminish the demand for our products, and could have a negative impact on our business.
• Expanding laws, regulations and customer requirements relating to data security and privacy may adversely affect sales of our products and result in increased compliance costs.
• We may experience significant quarterly and annual fluctuations in our results of operations due to a number of factors and these fluctuations may negatively impact the market price of our common stock.
• The limited trading volume of our common stock could affect your ability to sell your shares at a satisfactory price.
• Provisions of Minnesota law, our bylaws and other agreements may deter a change of control of our company and may have a possible negative effect on our stock price.