Enom 2014 Annual Report Download - page 22

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19
• spikes in sales of our print-on-demand products due to major social or political events resulting in a short-term demand for
products with related content;
• competitive pricing pressures, including shipping costs and potential discounts offered, associated with the products sold
through our online marketplaces;
• disruptions in the supply-chain, production and fulfillment operations associated with the products sold through our online
marketplaces;
• the amount and timing of operating costs and capital expenditures related to the maintenance and expansion of our
services, operations and infrastructure, especially one-time costs related to the development or acquisition of new products
and services;
• failure of our content to generate sufficient or expected revenue during its estimated useful life to recover its unamortized
creation costs, which may result in increased amortization expenses associated with, among other things, a decrease in the
estimated useful life of our content, an impairment charge associated with our existing content, or expensing future
content acquisition costs as incurred;
• creation of content in the future that may have a shorter estimated useful life as compared to our current portfolio of
content, or which we license exclusively to third parties for periods that are less than the estimated useful life of our
existing content, which may result in, among other things, increased content amortization expenses or the expensing of
future content acquisition costs as incurred;
• changes in Internet advertising purchasing patterns by advertisers, and changes in how we sell advertisements from direct
advertising sales to more automated advertising solutions;
• timing of and revenue recognition for certain transactions;
• changes in generally accepted accounting principles;
• our focus on long-term goals over short-term results; and
• weakness or uncertainty in general economic or industry conditions.
It is possible that our operating results may fluctuate and our operating results may be below the expectations of public market
analysts and investors in one or more future quarters due to any of the factors listed above, a combination of those factors or other
reasons, which could have a material adverse impact on the price of shares of our common stock.
We have made and may make additional acquisitions that involve significant execution, integration and operational risks and we
may not realize the anticipated benefits of any such acquisitions.
We evaluate acquisition and expansion opportunities on an ongoing basis and may pursue select acquisitions, such as our
acquisitions of Society6 in June 2013 and Saatchi Art in August 2014. We may continue to make acquisitions of complementary
websites, businesses, solutions, technologies or talent in the future to increase the scope of our business. The identification of suitable
acquisition candidates can be difficult, time-consuming and costly. Potential acquisitions require significant attention from our
management and could result in a diversion of resources from our existing business, which in turn could have an adverse effect on our
business and results of operations. In addition, the expected benefits of acquisitions may not materialize as planned, including
achieving certain financial and revenue objectives. Certain acquired businesses or the transactions entered into as part of business
combinations may also carry contingent liabilities that could materially impact our future results of operations and financial condition.
Furthermore, we may not be able to successfully complete identified acquisitions. If we are unable to identify suitable future
acquisition opportunities, reach agreement with such parties or obtain the financing necessary to make such acquisitions, we could
lose market share to competitors who are able to make such acquisitions. This loss of market share could negatively impact our
business, revenue and future growth.
Even if we successfully complete an acquisition, we may not be able to successfully assimilate and integrate the acquired
websites, business, assets, technologies, solutions, personnel or operations, particularly if key personnel of an acquired company
decide not to work for us, and we therefore may not achieve the anticipated benefits of such acquisition. Acquisitions also could harm
our reputation or brands generally, as well as our relationships with existing customers. In addition, financing an acquisition may
require us to (i) use substantial portions of our available cash on hand, (ii) incur additional indebtedness, which would increase our