Adobe 2015 Annual Report Download - page 27

Table of Contents
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Net revenue, margin or earnings shortfalls or the volatility of the market generally may cause the market price of our stock to
decline.
The market price for our common stock has in the past experienced significant fluctuations and may do so in the future. A
number of factors may affect the market price for our common stock, including:
• shortfalls in our revenue, margins, earnings, the number of paid Creative Cloud and Document Cloud subscribers,
Annualized Recurring Revenue (“ARR”), bookings within our Adobe Marketing Cloud business or other key
performance metrics;
• changes in estimates or recommendations by securities analysts;
• whether our results meet analysts’ expectations
• the announcement of new products and services, product enhancements or service introductions by us or our competitors;
• the loss of large customers or our inability to increase sales to existing customers, retain customers or attract new
customers;
• variations in our or our competitors’ results of operations, changes in the competitive landscape generally and
developments in our industry; and
• unusual events such as significant acquisitions, divestitures, litigation, general socio-economic, regulatory, political or
market conditions and other factors, including factors unrelated to our operating performance.
We are subject to risks associated with compliance with laws and regulations globally which may harm our business.
We are a global company subject to varied and complex laws, regulations and customs, both domestically and internationally.
These laws and regulations relate to a number of aspects of our business, including trade protection, import and export control,
data and transaction processing security, payment card industry data security standards, records management, user-generated
content hosted on websites we operate, privacy practices, data residency, corporate governance, employee and third-party
complaints, gift policies, conflicts of interest, employment and labor relations laws, securities regulations and other regulatory
requirements affecting trade and investment. The application of these laws and regulations to our business is often unclear and
may at times conflict. Compliance with these laws and regulations may involve significant costs or require changes in our business
practices that result in reduced revenue and profitability. Non-compliance could also result in fines, damages, criminal sanctions
against us, our officers or our employees, prohibitions on the conduct of our business, and damage to our reputation. We incur
additional legal compliance costs associated with our global operations and could become subject to legal penalties if we fail to
comply with local laws and regulations in U.S. jurisdictions or in foreign countries, which laws and regulations may be substantially
different from those in the United States. In many foreign countries, particularly in those with developing economies, it is common
to engage in business practices that are prohibited by U.S. regulations applicable to us, including the Foreign Corrupt Practices
Act. We cannot provide assurance that all of our employees, contractors and agents, as well as those companies to which we
outsource certain of our business operations, including those based in or from countries where practices that violate such U.S.
laws may be customary, will not take actions in violation of our internal policies. Any such violation could have an adverse effect
on our business.
We face various risks associated with our operating as a multinational corporation.
As a global business that generates approximately 42% of our total revenue from sales to customers outside of the Americas,
we are subject to a number of risks, including:
• foreign currency fluctuations;
• changes in government preferences for software procurement;
• international and regional economic, political and labor conditions, including any instability or security concerns abroad;
• tax laws (including U.S. taxes on foreign subsidiaries);
• increased financial accounting and reporting burdens and complexities;
• unexpected changes in, or impositions of, legislative or regulatory requirements;
• changes in laws governing the free flow of data across international borders;