Clarivate (CLVT) Risk Analysis

financial condition, and results of operations. We use and expect to expand our use of AI in our products, services, business, and operations. Developing, testing,deploying, and maintaining AI systems will require additional investment and may increase our costs. If we fail to keep pace with rapidly evolving AI technological developments, our competitive position and business results may be negatively impacted, and there can be no assurance that our use of AI will result in our business or operations being more efficient or profitable or otherwise result in our intended outcomes. The development, adoption, and use of AI technologies are still in their formative stages and, as with many innovations, present risks, challenges, and unintended consequences that could affect their adoption. Ineffective or inadequate AI development or deployment practices by us or third-party developers or vendors, or actual or perceived deficiencies, inaccuracies, biases, or other flaws in our products or services, could damage our reputation, competitive position, and business, expose us to legal liability or regulatory risk, and cause us to incur additional costs to address any reputational, governance, ethical, data privacy, confidentiality, security, compliance, technical,operational, legal, or competitive issues. For example: AI tools that we use may be flawed or may be based on algorithms, datasets, or prompts that are biased or insufficient; We or our customers may rely on the output of AI tools, whether the tools are ours or those of a third-party service provider, which may contain errors or material that is unclear, unattributed, misattributed, insufficient, biased, or false; Emerging AI applications may require additional investment in the development of proprietary datasets, algorithms,and machine learning models and new approaches and processes; We may not have sufficient rights to use data or other material or content produced by AI, or the models, algorithms,data, or other material or content on which our AI tools rely, in our business; We may inadvertently expose third-party data or other material or content to AI without appropriate permission or attribution; Our employees, contractors, vendors, or service providers may use third-party software incorporating AI in connection with our business or the services they provide to us and inadvertently disclose or incorporate our information into publicly available or other third-party training sets, which may impact our ability to realize the benefit of, or adequately protect, our intellectual property and other proprietary rights; Any output we create using AI may not be subject to copyright protection, which may adversely affect our intellectual property rights in or our ability to commercialize such content; Third parties may be able to use AI to create technology that could reduce demand for our products; The use of AI may result in cybersecurity incidents that implicate the personal or other confidential data of users of our AI tools or technologies; Third-party vendors may fail to comply with shifting regulations or contractual obligations; The failure to properly remediate AI usage or ethics issues may cause public confidence in AI to be undermined,which could slow adoption of AI in our products and services; and Our customers may not accept or be able to pay a premium for advanced AI capabilities in certain markets where we operate.

We have previously recorded goodwill impairment charges that arose primarily due to worsening macroeconomic and market conditions, as well as sustained declines in our share price. We have also previously recorded intangible asset impairment charges. Adverse or worsening macroeconomic or market conditions, further sustained declines in our share price and market capitalization, or other indicators of potential impairment may trigger the need for updated impairment assessments, which could result in future impairment charges. In the event we impair our goodwill, other intangible assets, or long-lived assets,such a charge could have a material adverse effect on our operating results.

Our business is characterized by rapidly changing technology, evolving industry standards, and changing regulatory requirements. Our growth and success depend upon our ability to keep pace with such changes and developments and to meet changing customer needs and preferences. Our ability to keep pace with technology, industry, and regulatory changes is subject to a number of risks, including those that we may find it difficult or costly to: leverage AI in our existing or newly developed products and services;make some features of our products work effectively and securely or with new or changed operating systems; and update our products and services to keep pace with business, evolving industry standards, regulatory requirements,our customers' needs, and other developments in the markets in which our customers operate. Any failure to achieve successful customer acceptance of new products and services could adversely affect our business and results of operations. Additionally, significant delays in new product or service releases or significant problems in creating new products or services could have a material adverse effect on our business, financial condition, and operating results.

For the year ended December 31,, approximately 83%of our revenues were subscription-based and re-occurring arrangements. Because most of the revenues we report each quarter are the result of subscription and re-occurring agreements entered into or renewed in previous quarters, a decline in subscription activity in any one quarter may not affect our results that quarter, but could result in lower revenues in future quarters. Our operating results depend on our ability to achieve and sustain high renewal rates with acceptable pricing on our existing subscription and re-occurring arrangements. Uncertain global economic conditions, including inflation and changing trade policies, have had and may continue to have an adverse impact on our ability to increase our revenue results. Failure to meet one or more of our revenue objectives could have a material adverse effect on our business, financial condition, and operating results.

Substantially all our products and services are developed using data, information, or services obtained from third-party providers and public sources or are made available to our customers or are integrated for our customers' use through information and technology solutions provided by third-party service providers. We have commercial relationships with third-party providers whose capabilities complement our own and, in some cases, these providers are also our competitors. The priorities and objectives of these providers, particularly those that are our competitors, may differ from ours, which may make us vulnerable to unpredicted price increases and unfavorable licensing terms. Agreements with such third-party providers periodically come up for renewal or renegotiation, and there is a risk that such negotiations may result in different rights and restrictions which could adversely impact our customers' use of the content , particularly in certain cases where we are reliant on a sole source for data feeds that are not diversified . We may also receive notices from third parties claiming infringement, misappropriation, or other violations by our products and services of third-party patent and other intellectual property rights and, as the number of products and services in our markets increases and the functionality of these products and services further overlaps with third-party products and services, we may become increasingly subject to claims by a third party that our products and services infringe on, misappropriate, or otherwise violate such party's intellectual property rights. Moreover, providers that are not currently our competitors may become competitors or may be acquired by or merge with a competitor in the future, any of which could reduce our access to the information and technology solutions provided by those companies. Any of the foregoing risks may be exacerbated by the use of AI by us or by our competitors or third-party service providers. If we do not maintain or obtain the expected benefits from our relationships with third-party providers, or if a substantial number of our third-party providers or any key service providers were to withdraw their services, we may be less competitive, our ability to offer products and services to our customers may be negatively affected, and our results of operations could be adversely impacted.

We seek to achieve our growth objectives by optimizing our offerings to meet the needs of our customers through organic development, including by delivering integrated workflow platforms, acquiring new customers, and implementing operational efficiency initiatives, and through acquisitions, joint ventures, investments, and dispositions. We may not be able to achieve the expected benefits of our acquisitions, including anticipated revenue, cost synergies, or growth opportunities,and we may not be able to integrate the assets acquired or achieve our expected cost synergies without increases in costs or other difficulties. Furthermore, we may ultimately divest unsuccessful acquisitions, investments, or businesses. If we fail to successfully complete an intended disposition, our operations and financial results may be negatively affected. Any acquisitions, investments, and dispositions may be affected by the risks commonly encountered in such transactions,including assuming potential liabilities of an acquired company, managing the potential disruption to our ongoing business,incurring expenses associated with an impairment of all or a portion of goodwill and other intangible assets, and failure to implement or maintain proper controls, procedures, and policies associated with acquisition, investment, or disposition. If we are unable to successfully execute on our growth strategies through organic and inorganic means, our business, financial condition, and results of operations could be adversely affected.

ventures, investments, or dispositions, including anticipated revenue and cost synergies, and costs associated with