3-1 1 db04001ds1.

htm |OlV 3-1

1abIo ot Contonta
Aa tiIod with tho 5ocuritioa and Exchango Commiaaion on Octobor 8, 2018
Rogiatration No. 888-


uN|1ED 51A1E5
5ECuR|1|E5 AND EXCEANCE CONN|55|ON
Waahington, D.C. 20540

FORN 5-1
REC|51RA1|ON 51A1ENEN1
uNDER
1EE 5ECuR|1|E5 AC1OF 1088

1wittor, |nc.
(Exact namo ot Rogiatrant aa aocitiod in ita chartor)

DoIawaro 7870 20-8018770
(5tato or othor [ uriadiction ot incororation or organization)

(Primary 5tandard |nduatriaI
CIaaaitication Codo Numbor)
(|.R.5. EmIoyor
|dontitication Numbor)

1855 Narkot 5troot, 5uito 000
5an Franciaco, CaIitornia 04108
(415) 222-0070
(Addroaa, incIuding zi codo, and toIohono numbor, incIuding aroa codo, ot Rogiatrant'a rinciaI oxocutivo otticoa)

Richard CoatoIo
Chiot Exocutivo Otticor
1wittor, |nc.
1855 Narkot 5troot, 5uito 000
5an Franciaco, CaIitornia 04108
(415) 222-0070
(Namo, addroaa, incIuding zi codo, and toIohono numbor, incIuding aroa codo, ot agont tor aorvico)

Coplos to.
5tovon E. Bochnor, Eaq.
Katharino A. Nartin, Eaq.
Rozwan D. Pavri, Eaq.
WiIaon 5onaini Coodrich & Roaati, P.C.
050 Pago NiII Road
PaIo AIto, CaIitornia 04804
(050) 408-0800
Vi[ aya Caddo, Eaq.
5oan Edgott, Eaq.
1wittor, |nc.
1855 Narkot 5troot, 5uito 000
5an Franciaco, CaIitornia 04108
(415) 222-0070

AIan F. Dononborg, Eaq.
Davia PoIk & WardwoII LLP
1000 EI Camino RoaI
NonIo Park, CaIitornia 04025
(050) 752-2000


Aroximato dato ot commoncomont ot rooaod aaIo to tho ubIic: Assoon aspract|cab|o attor th|srog|strat|on statomont bocomosottoct|vo.
lt any ot tho socur|t|osbo|ng rog|storod on th|s|orm aro to bo ottorod on a do|ayod or cont|nuousbas|spursuant to lu|o 41b undor tho 3ocur|t|osAct, chocktho to||ow|ng box:
lt th|s|orm |st||od to rog|stor add|t|ona| socur|t|ostor an ottor|ng pursuant to lu|o 402(b) undor tho 3ocur|t|osAct, p|oaso chocktho to||ow|ng box and ||st tho 3ocur|t|osAct rog|strat|on statomont
numbor ot tho oar||or ottoct|vo rog|strat|on statomont tor tho samo ottor|ng.
lt th|s|orm |sa post-ottoct|vo amondmont t||od pursuant to lu|o 402(c) undor tho 3ocur|t|osAct, chocktho to||ow|ng box and ||st tho 3ocur|t|osAct rog|strat|on statomont numbor ot tho oar||or
ottoct|vo rog|strat|on statomont tor tho samo ottor|ng.
lt th|s|orm |sa post-ottoct|vo amondmont t||od pursuant to lu|o 402(d) undor tho 3ocur|t|osAct, chocktho to||ow|ng box and ||st tho 3ocur|t|osAct rog|strat|on statomont numbor ot tho oar||or
ottoct|vo rog|strat|on statomont tor tho samo ottor|ng.
lnd|cato by chockmarkwhothor tho rog|strant |sa |argo acco|oratod t||or, an acco|oratod t||or, a non-acco|oratod t||or, or a sma||or roport|ng company. 3oo tho dot|n|t|onsot |argo acco|oratod t||or,'
acco|oratod t||or' and sma||or roport|ng company' |n lu|o 12b-2 ot tho Exchango Act. (Chockono):
largo acco|oratod t||or Acco|oratod t||or
lon-acco|oratod t||or (0o not chock|t a sma||or roport|ng company) 3ma||or roport|ng company

CALCuLA1|ON OF REC|51RA1|ON FEE


1itIo ot Each CIaaa ot 5ocuritioa to bo Rogiatorod
Prooaod Naximum
Aggrogato
Ottoring Prico
Amount ot
Rogiatration Foo
Common 3tock, $0.00000b par va|uo por sharo $1,000,000,000 $128,800


Est|matod so|o|y tor tho purposo ot comput|ng tho amount ot tho rog|strat|on too pursuant to lu|o 4b7(o) undor tho 3ocur|t|osAct ot 1088, asamondod.
lnc|udostho aggrogato ottor|ng pr|co ot add|t|ona| sharosthat tho undorwr|torshavo tho r|ght to purchaso trom tho log|strant, |t any.
1ho Rogiatrant horoby amonda thia rogiatration atatomont on auch dato or datoa aa may bo nocoaaary to doIay ita ottoctivo dato untiI tho Rogiatrant ahaII tiIo a turthor amondmont which
aociticaIIy atatoa that thia rogiatration atatomont ahaII thoroattor bocomo ottoctivo in accordanco with 5oction 8(a) ot tho 5ocuritioa Act ot 1088 or untiI tho rogiatration atatomont ahaII bocomo
ottoctivo on auch dato aa tho 5ocuritioa and Exchango Commiaaion, acting urauant to aaid 5oction 8(a), may dotormino.


(1)(2)
(1)
(2)
1abIo ot Contonta
1ho |ntormat|on |n th|s pro||m|nary prospoctus |s not comp|oto and may bo changod. 1hoso socur|t|os may not bo so|d unt|| tho rog|strat|on statomont t||od w|th tho
3ocur|t|os and Exchango Comm|ss|on |s ottoct|vo. 1h|s pro||m|nary prospoctus |s not an ottor to so|| nor doos |t sook an ottor to buy thoso socur|t|os |n any jur|sd|ct|on
whoro tho ottor or sa|o |s not porm|ttod.

3ubjoct 1o Comp|ot|on. 0atod Octobor 8, 2018.
3haros



1wittor, |nc.
Common 3tock


1h|s |s an |n|t|a| pub||c ottor|ng ot sharos ot common stock ot 1w|ttor, lnc.
lr|or to th|s ottor|ng, thoro has boon no pub||c markot tor tho common stock. lt |s curront|y ost|matod that tho |n|t|a| pub||c ottor|ng pr|co por sharo w||| bo
botwoon $ and $ . Wo |ntond to ||st tho common stock on tho undor tho symbo| 1W1l'.
Wo aro an omorg|ng growth company' as dot|nod undor tho todora| socur|t|os |aws and, as such, may o|oct to comp|y w|th corta|n roducod pub||c company
roport|ng roqu|romonts tor tuturo t|||ngs.
5oo Rlsk loctors' bogloolog oo pogo 10 to rooo oboot octors yoo sboo|o coosloor booro boylog sboros o tbo commoo stock.


Noithor tho 5ocuritioa and Exchango Commiaaion nor any othor roguIatory body haa arovod or diaarovod ot thoao aocuritioa or aaaod uon
tho accuracy or adoquacy ot thia roaoctua. Any roroaontation to tho contrary ia a criminaI ottonao.



lor 3haro 1ota|
ln|t|a| pub||c ottor|ng pr|co $ $
Undorwr|t|ng d|scount $ $
lrocoods, botoro oxponsos, to 1w|ttor $ $
1o tho oxtont that tho undorwr|tors so|| moro than sharos ot common stock, tho undorwr|tors havo tho opt|on to purchaso up to an add|t|ona|
sharos trom 1w|ttor at tho |n|t|a| pub||c ottor|ng pr|co |oss tho undorwr|t|ng d|scount.


1ho undorwr|tors oxpoct to do||vor tho sharos aga|nst paymont |n low York, low York on , 2018.

CoIdman, 5acha & Co. Norgan 5tanIoy J.P. Norgan

BotA NorriII Lynch Doutacho Bank 5ocuritioa


AIIon & Comany LLC CODE Adviaora


lrospoctus datod , 2018
1abIo ot Contonta

lub||c. loa|-1|mo. Convorsat|ona|. 0|str|butod. 200,000,000+ VOl1|lY AC1lvE U3El3 b00,000,000+ 1WEE13 lEl0AY
1abIo ot Contonta

lub||c 1w|ttor |sopon to tho wor|d. 0awn Z|mmor Qdawnz|mmornj 1ust adv|sod tho nat|ona| guard hasarr|vod |n |obokon. Voro to como. 8:08 lV - 80 Oct 12 Amor|can lod CrossAmor|can lod Cross
QlodCrossln |obokon, wo havo 20 voh|c|osand 0 box truckswboxod |unchos, roady-to-oat moa|s, wator, 7 monta| hoa|th workors(11.1.12) #3andy 11:8b AV - 1 lov 12 V|ko 3|oomborg QV|ko3|oomborg
lYC1ap Wator |sabso|uto|y sato to dr|nk#3andylYC#locovory 11:40 AV - 1 lov 12 loa|-1|mo lowsbroakson 1w|ttor. 1an|sKrmsQjkrumstw|tp|c.com/18bxa - 1horo'sa p|ano |n tho |udson. l'm on tho
torry go|ng to p|ckup tho poop|o. Crazy. 12:80 lV - 1b 1an 00
1abIo ot Contonta

Convorsat|ona| Usorsoxprossthomso|voson 1w|ttor. Var|o 3ata|| QVar|obata|| uso 3an Varzano tomatoos, cookgar||c |oss? #hoymb l1Qamarah81:| ama good cook, but my rod sauco tastosb|ttor. What
cou|d bo tho roason? GAvlllO330AlE QGav|n.. QVar|obata|| Qamarah81 cou|d bo tho bas||-too much too |ong Var|o 3ata|| QVar|obata|| boh|nd th|shandsomo rockor tacado ||osa br||||ant cook!! l1
QGav|nlossda|o: QVar|obata|| Qamarah81 cou|d bo tho bas||-too much too |ong' 0|str|butod 1wootsgo ovorywhoro. 3arackObama Q3arackObama |our moro yoars. p|ctw|ttor.com/ba1E0vom 11:10 lV -
0 lov 12 1oday 3how3arackObama Q3arackObama |our moro yoars' 1AKE 1 1Ol 1WEE13 O| 2012 Gorman nowspapor 3arackObama Q3arackObama |our moro yoars. p|ctw|ttor.com/ba1E0vom 0ro|
Wrtor, o|n lokord
1abIo ot Contonta
1ABLE OF CON1EN15
lrospoctus

lago
lrospoctus 3ummary 1
l|sk |actors 10
3poc|a| loto logard|ng |orward-look|ng 3tatomonts 48
lndustry 0ata and Company Votr|cs 40
Uso ot lrocoods b1
0|v|dond lo||cy b1
Cap|ta||zat|on b2
0||ut|on b4
3o|octod Conso||datod ||nanc|a| and Othor 0ata b7
Vanagomont's 0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons b0
lottor trom Qtw|ttor 01
3us|noss 02
Vanagomont 118
Exocut|vo Componsat|on 120
Corta|n lo|at|onsh|ps and lo|atod larty 1ransact|ons 188
lr|nc|pa| 3tockho|dors 148
0oscr|pt|on ot Cap|ta| 3tock 140
3haros E||g|b|o tor |uturo 3a|o 1b2
Vator|a| U.3. |odora| lncomo 1ax Consoquoncos to lon-U.3. |o|dors ot Our Common 3tock 1bb
Undorwr|t|ng 1b0
loga| Vattors 104
Exports 104
Whoro You Can ||nd Add|t|ona| lntormat|on 104
lndox to Conso||datod ||nanc|a| 3tatomonts |-1


1hrough and incIuding , 2018 (tho 25th day attor tho dato ot thia roaoctua), aII doaIora ottocting tranaactiona in thoao aocuritioa,
whothor or not articiating in thia ottoring, may bo roquirod to doIivor a roaoctua. 1hia ia in addition to a doaIor'a obIigation to doIivor a roaoctua
whon acting aa an undorwritor and with roaoct to an unaoId aIIotmont or aubacrition.


Wo havo not author|zod anyono to prov|do any |ntormat|on or to mako any roprosontat|ons othor than thoso conta|nod |n th|s prospoctus or |n any troo wr|t|ng
prospoctusos wo havo proparod. Wo tako no rospons|b|||ty tor, and can prov|do no assuranco as to tho ro||ab|||ty ot, any othor |ntormat|on that othors may g|vo you. 1h|s
prospoctus |s an ottor to so|| on|y tho sharos ottorod horoby, but on|y undor c|rcumstancos and |n jur|sd|ct|ons whoro |t |s |awtu| to do so. 1ho |ntormat|on conta|nod |n
th|s prospoctus |s curront on|y as ot |ts dato.
1abIo ot Contonta
PRO5PEC1u5 5uNNARY
7bls sommory blgb|lgbts so|octoo loormotloo tbot ls prosootoo lo grootor ootol| o|sowboro lo tbls prospoctos. 7bls sommory ooos oot cootolo o|| o tbo
loormotloo yoo sboo|o coosloor booro lovostlog lo oor commoo stock. Yoo sboo|o rooo tbls ootlro prospoctos coroo||y, loc|oolog tbo soctloos tlt|oo Rlsk
loctors' ooo Vooogomoot`s Llscossloo ooo Aoo|ysls o lloooclo| Coooltloo ooo Roso|ts o Oporotloos' ooo oor cooso|lootoo loooclo| stotomoots ooo tbo ro|otoo
ootos loc|oooo o|sowboro lo tbls prospoctos, booro moklog oo lovostmoot ooclsloo. Uo|oss tbo cootoxt otborwlso roqolros, tbo torms 7wlttor,' tbo compooy,'
wo,' os' ooo oor' lo tbls prospoctos roor to 7wlttor, loc. ooo lts cooso|lootoo sobslolorlos.
1W|11ER, |NC.
1w|ttor |s a g|oba| p|attorm tor pub||c so|t-oxpross|on and convorsat|on |n roa| t|mo. 3y dovo|op|ng a tundamonta||y now way tor poop|o to croato, d|str|buto
and d|scovor contont, wo havo domocrat|zod contont croat|on and d|str|but|on, onab||ng any vo|co to ocho around tho wor|d |nstant|y and unt||torod.
Our p|attorm |s un|quo |n |ts s|mp||c|ty: 1woots aro ||m|tod to 140 charactors ot toxt. 1h|s constra|nt makos |t oasy tor anyono to qu|ck|y croato, d|str|buto
and d|scovor contont that |s cons|stont across our p|attorm and opt|m|zod tor mob||o dov|cos. As a rosu|t, 1woots dr|vo a h|gh vo|oc|ty ot |ntormat|on oxchango that
makos 1w|ttor un|quo|y ||vo.' Wo a|m to bocomo an |nd|sponsab|o da||y compan|on to ||vo human oxpor|oncos.
loop|o aro at tho hoart ot 1w|ttor. Wo havo a|roady ach|ovod s|gn|t|cant g|oba| sca|o, and wo cont|nuo to grow. Wo havo moro than 21b m||||on month|y
act|vo usors, or VAUs, and moro than 100 m||||on da||y act|vo usors, spann|ng noar|y ovory country. Our usors |nc|udo m||||ons ot poop|o trom around tho wor|d, as
wo|| as |nt|uont|a| |nd|v|dua|s and organ|zat|ons, such as wor|d |oadors, govornmont ott|c|a|s, co|obr|t|os, ath|otos, journa||sts, sports toams, mod|a out|ots and
brands. Our usors croato approx|mato|y b00 m||||on 1woots ovory day.
1w|ttor |s a pub||c, roa|-t|mo p|attorm whoro any usor can croato a 1woot and any usor can to||ow othor usors. Wo do not |mposo rostr|ct|ons on whom a
usor can to||ow, wh|ch groat|y onhancos tho broadth and dopth ot ava||ab|o contont and a||ows usors to d|scovor tho contont thoy caro about most. Add|t|ona||y,
usors can bo to||owod by thousands or m||||ons ot othor usors w|thout roqu|r|ng a roc|proca| ro|at|onsh|p, onhanc|ng tho ab|||ty ot our usors to roach a broad
aud|onco. 1ho pub||c naturo ot our p|attorm a||ows us and othors to oxtond tho roach ot 1w|ttor contont boyond our proport|os. Vod|a out|ots d|str|buto 1woots
boyond our proport|os to comp|omont tho|r contont by mak|ng |t moro t|mo|y, ro|ovant and comprohons|vo. 1woots havo appoarod on ovor ono m||||on th|rd-party
wobs|tos, and |n tho socond quartor ot 2018 thoro woro approx|mato|y 80 b||||on on||no |mpross|ons ot 1woots ott ot our proport|os.
1w|ttor prov|dos a compo|||ng and ott|c|ont way tor poop|o to stay |ntormod about tho|r |ntorosts, d|scovor what |s happon|ng |n tho|r wor|d r|ght now and
|ntoract d|roct|y w|th oach othor. Wo onab|o tho t|mo|y croat|on and d|str|but|on ot |doas and |ntormat|on among poop|o and organ|zat|ons at a |oca| and g|oba|
sca|o. Our p|attorm a||ows usors to browso through 1woots qu|ck|y and oxp|oro contont moro doop|y through ||nks, photos, mod|a and othor app||cat|ons that can
bo attachod to oach 1woot. As a rosu|t, whon ovonts happon |n tho wor|d, whothor p|annod, ||ko sport|ng ovonts and to|ov|s|on shows, or unp|annod, ||ko natura|
d|sastors and po||t|ca| rovo|ut|ons, tho d|g|ta| oxpor|onco ot thoso ovonts happons |n roa| t|mo on 1w|ttor. loop|o can commun|cato w|th oach othor dur|ng thoso
ovonts as thoy occur, croat|ng powortu| sharod oxpor|oncos.


1
1abIo ot Contonta
Wo aro |nsp|rod by how 1w|ttor has boon usod around tho wor|d. lros|dont Obama usod our p|attorm to t|rst doc|aro v|ctory pub||c|y |n tho 2012 U.3.
pros|dont|a| o|oct|on, w|th a 1woot that was v|owod approx|mato|y 2b m||||on t|mos on our p|attorm and w|do|y d|str|butod ott||no |n pr|nt and broadcast mod|a. A
|oca| ros|dont |n Abbottabad, lak|stan unknow|ng|y roportod tho ra|d on Osama 3|n ladon's compound on 1w|ttor hours botoro trad|t|ona| mod|a and nows out|ots
bogan to roport on tho ovont. 0ur|ng tho oarthquako and subsoquont tsunam| |n 1apan, poop|o camo to 1w|ttor to undorstand tho oxtont ot tho d|sastor, t|nd |ovod
onos and to||ow tho nuc|oar cr|s|s that onsuod. |or |nd|v|dua|s and organ|zat|ons sook|ng t|mo|y d|str|but|on ot contont, 1w|ttor movos boyond trad|t|ona| broadcast
mod|ums by assomb||ng connoctod aud|oncos. 1w|ttor br|ngs poop|o togothor |n sharod oxpor|oncos a||ow|ng thom to d|scovor and consumo contont and just as
oas||y add tho|r own vo|co |n tho momont.
Our p|attorm partnors and advort|sors onhanco tho va|uo wo croato tor our usors.




P|otorm Portoors. V||||ons ot p|attorm partnors, wh|ch |nc|udo pub||shors, mod|a out|ots and dovo|opors, havo |ntogratod w|th 1w|ttor, add|ng va|uo to
our usor oxpor|onco by contr|but|ng contont to our p|attorm, broad|y d|str|but|ng contont trom our p|attorm across tho|r proport|os and us|ng 1w|ttor
contont and too|s to onhanco tho|r wobs|tos and app||cat|ons. Vany ot tho wor|d's most trustod mod|a out|ots, |nc|ud|ng tho 33C, Cll and 1|mos ot
lnd|a, rogu|ar|y uso 1w|ttor as a p|attorm tor contont d|str|but|on.




Aovortlsors. Advort|sors uso our lromotod lroducts, tho major|ty ot wh|ch aro pay-tor-portormanco, to promoto tho|r brands, products and sorv|cos,
amp||ty tho|r v|s|b|||ty and roach, and comp|omont and oxtond tho convorsat|on around tho|r advort|s|ng campa|gns. Wo onab|o our advort|sors to targot
an aud|onco basod on a var|oty ot tactors, |nc|ud|ng a usor's lntorost Graph. 1ho lntorost Graph maps, among othor th|ngs, |ntorosts basod on usors
to||owod and act|ons takon on our p|attorm, such as 1woots croatod and ongagomont w|th 1woots. Wo bo||ovo a usor's lntorost Graph producos a c|oar
and roa|-t|mo s|gna| ot a usor's |ntorosts, groat|y onhanc|ng tho ro|ovanco ot tho ads wo can d|sp|ay tor usors and onhanc|ng our targot|ng capab|||t|os
tor advort|sors.
A|though wo do not gonorato rovonuo d|roct|y trom usors or p|attorm partnors, wo bonot|t trom notwork ottocts whoro moro act|v|ty on 1w|ttor rosu|ts |n tho croat|on
and d|str|but|on ot moro contont, wh|ch attracts moro usors, p|attorm partnors and advort|sors, rosu|t|ng |n a v|rtuous cyc|o ot va|uo croat|on.
Vob||o has bocomo tho pr|mary dr|vor ot our bus|noss. Our mob||o products aro cr|t|ca| to tho va|uo wo croato tor our usors, and thoy onab|o our usors to
croato, d|str|buto and d|scovor contont |n tho momont and on-tho-go. 1ho 140 charactor constra|nt ot a 1woot omanatos trom our or|g|ns as an 3V3-basod
mossag|ng systom, and wo |ovorago th|s s|mp||c|ty to dovo|op products that soam|oss|y br|dgo our usor oxpor|onco across a|| dov|cos. ln tho throo months ondod
1uno 80, 2018, 7b% ot our avorago VAUs accossod 1w|ttor trom a mob||o dov|co, |nc|ud|ng mob||o phonos and tab|ots, and ovor 0b% ot our advort|s|ng rovonuo
was gonoratod trom mob||o dov|cos. Wo oxpoct that tho proport|on ot act|vo usors on, and advort|s|ng rovonuo gonoratod trom, mob||o dov|cos, w||| cont|nuo to grow
|n tho noar torm.
Wo havo oxpor|oncod rap|d growth |n our rovonuo |n rocont por|ods. |rom 2011 to 2012, rovonuo |ncroasod by 108% to $810.0 m||||on, not |oss docroasod
by 88% to $70.4 m||||on and Adjustod E3l10A |ncroasod by 140% to $21.2 m||||on. |rom tho s|x months ondod 1uno 80, 2012 to tho s|x months ondod 1uno 80,
2018, rovonuo |ncroasod by 107% to $2b8.0 m||||on, not |oss |ncroasod by 41% to $00.8 m||||on and Adjustod E3l10A |ncroasod by $20.7 m||||on to $21.4 m||||on.
|or |ntormat|on on how wo dot|no and ca|cu|ato Adjustod E3l10A, and a roconc|||at|on ot not |oss to Adjustod E3l10A, soo tho soct|on t|t|od -3ummary
Conso||datod ||nanc|a| and Othor 0ata-lon-GAAl ||nanc|a| Voasuros.'


2
1abIo ot Contonta
Wo havo a|so oxpor|oncod s|gn|t|cant growth |n our usor baso, as moasurod by VAUs, and usor ongagomont, as moasurod by t|mo||no v|ows.


|or |ntormat|on on how wo dot|no and ca|cu|ato tho numbor ot VAUs and tho numbor ot t|mo||no v|ows and tactors that can attoct thoso motr|cs, soo tho soct|ons
t|t|od Vanagomont's 0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons-Koy Votr|cs' and lndustry 0ata and Company Votr|cs.'
1ho EvoIution ot Contont Croation, Diatribution and Diacovory
1ho lntornot and d|g|t|zat|on havo a||owod tor v|rtua||y a|| contont to bo mado ava||ab|o on||no, but tho vast array ot contont has mado |t d|tt|cu|t tor poop|o to
t|nd what |s |mportant or ro|ovant to thom. Ovor t|mo, tochno|og|os havo boon dovo|opod to addross th|s cha||ongo:
ob Browsors. ln tho oar|y to m|d-1000s, browsors, |nc|ud|ng lotscapo lav|gator and lntornot Exp|oror, prosontod contont on tho lntornot |n a v|sua||y
appoa||ng mannor and a||owod poop|o to nav|gato to spoc|t|c wobs|tos, but tho contont oxpor|onco was gonora||y not porsona||zod or ta||orod to a porson's |ntorosts
and |ntormat|on was otton d|tt|cu|t to t|nd.
ob Porto|s. ln tho m|d to |ato-1000s, Yahoo!, AOl, V3l and othor wob porta|s aggrogatod and catogor|zod popu|ar contont and othor commun|cat|on
toaturos to ho|p poop|o d|scovor ro|ovant |ntormat|on on tho lntornot. 1hoso porta|s, wh||o convon|ont, and w|th somo ab|||ty to porsona||zo, ottor accoss to a ||m|tod
amount ot contont.
5oorcb Eogloos. ln tho oar|y-2000s, Goog|o and othor soarch ong|nos bogan prov|d|ng a way to soarch a vast amount ot contont, but soarch rosu|ts aro
||m|tod by tho qua||ty ot tho soarch a|gor|thm and tho amount ot contont |n tho soarch |ndox. ln add|t|on, g|von tho |ag botwoon ||vo ovonts and tho croat|on and
|ndox|ng ot d|g|ta| contont, soarch ong|no rosu|ts may |ack roa|-t|mo |ntormat|on. A|so, soarch ong|nos gonora||y do not surtaco contont that a porson has not
roquostod, but may t|nd |ntorost|ng.
5oclo| Notworks. ln tho m|d-2000s, soc|a| notworks, such as |acobook, omorgod as a now way to connoct w|th tr|onds and tam||y on||no, but thoy aro
gonora||y c|osod, pr|vato notworks that do not |nc|udo contont trom outs|do a porson's tr|onds, tam||y and mutua| connoct|ons. Consoquont|y, tho dopth and broadth
ot contont ava||ab|o to poop|o |s gonora||y ||m|tod. Add|t|ona||y, contont trom most soc|a| notworks |s not broad|y ava||ab|o ott tho|r notworks, such as on othor
wobs|tos, app||cat|ons or trad|t|ona| mod|a out|ots ||ko to|ov|s|on, rad|o and pr|nt.


8
1abIo ot Contonta
1wittor Continuoa tho EvoIution
1w|ttor cont|nuos tho ovo|ut|on ot contont croat|on, d|str|but|on and d|scovory by comb|n|ng tho to||ow|ng tour o|omonts at sca|o to croato a g|oba| p|attorm
tor pub||c so|t-oxpross|on and convorsat|on |n roa| t|mo. Wo bo||ovo 1w|ttor can bo tho contont croat|on, d|str|but|on and d|scovory p|attorm tor tho lntornot and
ovo|v|ng mob||o ocosystom.




Pob|lc. 1w|ttor |s opon to tho wor|d. Contont on 1w|ttor |s broad|y accoss|b|o to our usors and unrog|storod v|s|tors. A|| usors can croato 1woots and
to||ow othor usors. ln add|t|on, bocauso tho pub||c naturo ot 1w|ttor a||ows contont to travo| v|ra||y on and ott our proport|os to othor wobs|tos and mod|a,
such as to|ov|s|on and pr|nt, poop|o can bonot|t trom 1w|ttor contont ovon |t thoy aro not 1w|ttor usors or to||ow|ng tho usor that or|g|na||y twootod.




Roo|-7lmo. lows broaks on 1w|ttor. 1ho comb|nat|on ot our too|s, tochno|ogy and tormat onab|os our usors to qu|ck|y croato and d|str|buto contont
g|oba||y |n roa| t|mo w|th 140 koystrokos or tho t|ash ot a photo, and tho c||ck ot a button. 1ho oaso w|th wh|ch our usors can croato contont comb|nod
w|th our broad roach rosu|ts |n usors otton roco|v|ng contont tastor than othor torms ot mod|a.




Coovorsotlooo|. 1w|ttor |s whoro usors como to oxpross thomso|vos and |ntoract w|th tho wor|d. Our usors can |ntoract on 1w|ttor d|roct|y w|th othor
usors, |nc|ud|ng poop|o trom around tho wor|d, as wo|| as |nt|uont|a| |nd|v|dua|s and organ|zat|ons. lmportant|y, thoso |ntoract|ons can occur |n pub||c
v|ow, thoroby croat|ng an opportun|ty tor a|| usors to to||ow and part|c|pato |n convorsat|ons on 1w|ttor.




Llstrlbotoo. 1woots go ovorywhoro. 1ho s|mp|o tormat ot a 1woot, tho pub||c naturo ot contont on 1w|ttor and tho oaso ot d|str|but|on ott our proport|os
a||ow mod|a out|ots to d|sp|ay 1woots on tho|r on||no and ott||no proport|os, thoroby oxtond|ng tho roach ot 1woots boyond our proport|os. A 2018 study
conductod by Arb|tron lnc. and Ed|son losoarch tound that 44% ot Amor|cans hoar about 1woots through mod|a channo|s othor than 1w|ttor a|most
ovory day.
Our VaIuo Prooaition to uaora
loop|o aro at tho hoart ot 1w|ttor. Wo havo moro than 21b m||||on VAUs trom around tho wor|d. loop|o como to 1w|ttor tor many roasons, and wo bo||ovo
that two ot tho most s|gn|t|cant aro tho broadth ot 1w|ttor contont and our broad roach. Our usors consumo contont and ongago |n convorsat|ons that |ntorost thom
by d|scovor|ng and to||ow|ng tho poop|o and organ|zat|ons thoy t|nd most compo|||ng.
Our p|attorm prov|dos our usors w|th tho to||ow|ng bonot|ts:




5borlog Cootoot wltb tbo or|o. Usors |ovorago our p|attorm to oxpross thomso|vos pub||c|y to tho wor|d, sharo w|th tho|r tr|onds and tam||y and
part|c|pato |n convorsat|ons. 1ho pub||c, roa|-t|mo naturo and tromondous g|oba| roach ot our p|attorm mako |t tho contont d|str|but|on p|attorm ot cho|co
tor many ot tho wor|d's most |nt|uont|a| |nd|v|dua|s and organ|zat|ons, as wo|| as m||||ons ot poop|o and sma|| bus|nossos.




Llscovorlog Uolqoo ooo Ro|ovoot Cootoot. 1w|ttor's ovor 21b m||||on VAUs, spann|ng noar|y ovory country, prov|do groat broadth and dopth ot contont
across a broad rango ot top|cs, |nc|ud|ng ||toraturo, po||t|cs, t|nanco, mus|c, mov|os, comody, sports and nows.




Brooklog Nows ooo Eogoglog lo Llvo Evoots. Usors como to 1w|ttor to d|scovor what |s happon|ng |n tho wor|d r|ght now d|roct|y trom othor 1w|ttor
usors. On 1w|ttor, usors twoot about ||vo ovonts |nstant|y, whothor |t |s co|obr|t|os twoot|ng to tho|r tans, journa||sts broak|ng nows or poop|o prov|d|ng
oyow|tnoss accounts ot ovonts as thoy unto|d. Vany |nd|v|dua|s and


4
1abIo ot Contonta

organ|zat|ons chooso to broak nows t|rst on 1w|ttor bocauso ot tho un|quo roach and spood ot d|str|but|on on our p|attorm. As a rosu|t, 1w|ttor |s a
pr|mary sourco ot |ntormat|on and comp|omonts trad|t|ona| mod|a as a socond scroon, onhanc|ng tho ovora|| oxpor|onco ot an ovont by a||ow|ng usors to
sharo tho oxpor|onco w|th othor usors |n roa| t|mo. Wo bo||ovo th|s makos 1w|ttor tho soc|a| soundtrack to ||to |n tho momont.




Portlclpotlog lo Coovorsotloos. 1hrough 1w|ttor, usors not on|y commun|cato w|th tr|onds and tam||y, but thoy a|so part|c|pato |n convorsat|ons w|th
othor poop|o trom around tho wor|d, |n ways that wou|d not othorw|so bo poss|b|o. ln add|t|on to part|c|pat|ng |n convorsat|ons, usors can s|mp|y to||ow
convorsat|ons on 1w|ttor or oxpross |ntorost |n tho convorsat|on by rotwoot|ng or tavor|t|ng.
Our VaIuo Prooaition to PIattorm Partnora
1ho va|uo wo croato tor our usors |s onhancod by our p|attorm partnors, wh|ch |nc|udo pub||shors, mod|a out|ots and dovo|opors. 1hoso p|attorm partnors
havo |ntogratod w|th 1w|ttor through an app||cat|on programm|ng |ntortaco, or All, that wo prov|do wh|ch a||ows thom to contr|buto tho|r contont to our p|attorm,
d|str|buto 1w|ttor contont across tho|r proport|os and uso 1w|ttor contont and too|s to onhanco tho|r wobs|tos and app||cat|ons. Wo prov|do a sot ot dovo|opmont
too|s, Alls and omboddab|o w|dgots that a||ow our partnors to soam|oss|y |ntograto w|th our p|attorm.
Wo prov|do our p|attorm partnors w|th tho to||ow|ng bonot|ts:




Llstrlbotloo Cboooo|. l|attorm partnors uso 1w|ttor as a comp|omontary d|str|but|on channo| to oxpand tho|r roach and ongago w|th tho|r aud|oncos.
lub||shors and mod|a out|ots contr|buto contont croatod tor othor mod|a channo|s to 1w|ttor and twoot contont spoc|t|ca||y croatod tor 1w|ttor. Wo
prov|do p|attorm partnors w|th a sot ot w|dgots that thoy can ombod on tho|r wobs|tos and an All tor tho|r mob||o app||cat|ons to onab|o 1w|ttor usors to
twoot contont d|roct|y trom thoso proport|os. As our usors ongago w|th th|s contont on 1w|ttor, thoy can bo d|roctod back to our partnors' wobs|tos and
app||cat|ons.




Comp|omootory Roo|-7lmo ooo Ro|ovoot Cootoot. 1w|ttor onab|os p|attorm partnors to ombod or d|sp|ay ro|ovant 1woots on tho|r on||no and ott||no
proport|os to onhanco tho oxpor|onco tor tho|r usors. Add|t|ona||y, by onhanc|ng tho act|v|ty ro|atod to tho|r programm|ng or ovont on 1w|ttor, mod|a
out|ots can dr|vo tuno-|n and awaronoss ot tho|r or|g|na| contont, |ovorag|ng 1w|ttor's strongth as a socond scroon tor to|ov|s|on programm|ng. |or
oxamp|o, dur|ng 3upor 3ow| Xlvll, ovor 24 m||||on 1woots rogard|ng tho 3upor 3ow| woro sont dur|ng tho gamo a|ono and 4b% ot to|ov|s|on ads shown
dur|ng tho 3upor 3ow| usod a hashtag to |nv|to v|owors to ongago |n convorsat|on about thoso to|ov|s|on ads on 1w|ttor.




Coovos or Eoboocoo Cootoot wltb 7wlttor Coros. l|attorm partnors uso 1w|ttor Cards to ombod |magos, v|doo and |ntoract|vo contont d|roct|y |nto a
1woot. 1w|ttor Cards a||ow p|attorm partnors to croato r|chor contont that a|| usors can |ntoract w|th and d|str|buto.




Bol|olog wltb 7wlttor Cootoot. l|attorm partnors |ovorago 1woots to onhanco tho oxpor|onco tor tho|r usors. 0ovo|opors |ncorporato 1w|ttor contont and
uso 1w|ttor too|s to bu||d a broad rango ot app||cat|ons. Vod|a partnors |ncorporato 1w|ttor contont to onr|ch tho|r programm|ng and |ncroaso v|owor
ongagomont by prov|d|ng roa|-t|mo 1woots that oxpross pub||c op|n|on and |ncorporato rosu|ts trom v|owor po||s on 1w|ttor.


b
1abIo ot Contonta
Our VaIuo Prooaition to Advortiaora
Wo prov|do compo|||ng va|uo to our advort|sors by do||vor|ng tho ab|||ty to roach a |argo g|oba| aud|onco through our un|quo sot ot advort|s|ng sorv|cos, tho
ab|||ty to targot ads basod on our doop undorstand|ng ot our usors and tho opportun|ty to gonorato s|gn|t|cant oarnod mod|a. Advort|sors can uso 1w|ttor to
commun|cato d|roct|y w|th tho|r to||owors tor troo, but many chooso to purchaso our advort|s|ng sorv|cos to roach a broador aud|onco and turthor promoto tho|r
brands, products and sorv|cos.
Our p|attorm prov|dos our advort|sors w|th tho to||ow|ng bonot|ts:




Uolqoo Ao lormots Notlvo to tbo Usor Exporlooco. Our lromotod lroducts, wh|ch aro lromotod 1woots, lromotod Accounts and lromotod 1ronds,
prov|do advort|sors w|th an opportun|ty to roach our usors w|thout d|srupt|ng or dotract|ng trom tho usor oxpor|onco on our p|attorm.




7orgotlog. Our pay-tor-portormanco lromotod lroducts onab|o advort|sors to roach usors basod on many tactors. lmportant|y, bocauso our
asymmotr|c to||ow modo| doos not roqu|ro mutua| to||owor ro|at|onsh|ps, poop|o can to||ow tho usors that thoy t|nd most |ntorost|ng. 1hoso to||ow
ro|at|onsh|ps aro thon comb|nod w|th othor tactors, such as tho act|ons that usors tako on our p|attorm, |nc|ud|ng tho 1woots thoy ongago w|th and what
thoy twoot about, to torm a usor's lntorost Graph. Wo bo||ovo a usor's lntorost Graph producos a c|oar and roa|-t|mo s|gna| ot a usor's |ntorosts, groat|y
onhanc|ng our targot|ng capab|||ty.




Eorooo Voolo ooo Vlro| O|obo| Roocb. 1ho pub||c and w|do|y d|str|butod naturo ot our p|attorm onab|os 1woots to sproad v|ra||y, potont|a||y roach|ng a||
ot our usors and poop|o around tho wor|d. Our usors rotwoot, rop|y to or start convorsat|ons about |ntorost|ng 1woots, whothor thoso 1woots aro
lromotod 1woots or organ|c 1woots by advort|sors. An advort|sor on|y gots chargod whon a usor ongagos w|th a lromotod 1woot that was p|acod |n a
usor's t|mo||no bocauso ot |ts promot|on. 3y croat|ng h|gh|y compo|||ng and ongag|ng ads, our advort|sors can bonot|t trom usors rotwoot|ng tho|r
contont across our p|attorm at no |ncromonta| cost.




Aovortlslog lo tbo Vomoot. 1w|ttor's roa|-t|mo naturo a||ows our advort|sors to cap|ta||zo on ||vo ovonts, ox|st|ng convorsat|ons and trond|ng top|cs. 3y
us|ng our lromotod lroducts, advort|sors can croato a ro|ovant ad |n roa| t|mo that |s shapod by thoso ovonts, convorsat|ons and top|cs.




Poy-or-Porormooco ooo Attroctlvo Rotoro oo lovostmoot. Our advort|sors pay tor lromotod 1woots and lromotod Accounts on a pay-tor-
portormanco bas|s. Our advort|sors on|y pay us whon a usor ongagos w|th tho|r ad, such as whon a usor c||cks on a ||nk |n a lromotod 1woot, oxpands
a lromotod 1woot, rop||os to or tavor|tos a lromotod 1woot, rotwoots a lromotod 1woot tor tho t|rst t|mo, to||ows a lromotod Account or to||ows tho
account that twoots a lromotod 1woot. 1ho pay-tor-portormanco structuro a||gns our |ntorosts |n do||vor|ng ro|ovant and ongag|ng ads to our usors w|th
thoso ot our advort|sors.




Extoosloo o O|loo Aovortlslog Compolgos. 1w|ttor advort|s|ng comp|omonts ott||no advort|s|ng campa|gns, such as to|ov|s|on ads. lntograt|ng
hashtags a||ows advort|sors to oxtond tho roach ot an ott||no ad by dr|v|ng s|gn|t|cant oarnod mod|a and cont|nuod convorsat|on on 1w|ttor.
Our VaIuo Prooaition to Data Partnora
Wo ottor data ||consos that a||ow our data partnors to accoss, soarch and ana|yzo h|stor|ca| and roa|-t|mo data on our p|attorm. 3|nco tho t|rst 1woot, our
usors havo croatod ovor 800 b||||on 1woots


0
1abIo ot Contonta
spann|ng noar|y ovory country. Our data partnors uso th|s data to gonorato and monot|zo data ana|yt|cs, trom wh|ch data partnors can |dont|ty usor sont|mont,
|nt|uonco and othor tronds. |or oxamp|o, ono ot our data partnors app||os |ts a|gor|thms to 1w|ttor data to croato and so|| products to |ts customors that |dont|ty
act|v|ty tronds across 1w|ttor wh|ch may bo ro|ovant to |ts customors' |nvostmont portto||os.
Crowth 5tratogy
Wo havo a||gnod our growth stratogy around tho throo pr|mary const|tuonts ot our p|attorm: usors, p|attorm partnors and advort|sors.




Usors. Wo bo||ovo that thoro |s a s|gn|t|cant opportun|ty to oxpand our usor baso. lndustry sourcos ost|mato that as ot 2012 thoro woro 2.4 b||||on
lntornot usors and 1.2 b||||on smartphono usors, ot wh|ch on|y 21b m||||on aro VAUs ot 1w|ttor.




Ooogropblc Expoosloo. Wo p|an to dovo|op a broad sot ot partnorsh|ps g|oba||y to |ncroaso ro|ovant |oca| contont on our p|attorm and mako
1w|ttor moro accoss|b|o |n now and omorg|ng markots.



Vobl|o App|lcotloos. Wo p|an to cont|nuo to dovo|op and |mprovo our mob||o app||cat|ons to dr|vo usor adopt|on ot thoso app||cat|ons.




Proooct Lovo|opmoot. Wo p|an to cont|nuo to bu||d and acqu|ro now tochno|og|os to dovo|op and |mprovo our products and sorv|cos and
mako our p|attorm moro va|uab|o and accoss|b|o to poop|o around tho wor|d. Wo a|so p|an to cont|nuo to tocus on mak|ng 1w|ttor s|mp|o and
oasy to uso, part|cu|ar|y tor now usors.



P|otorm Portoors. Wo bo||ovo growth |n our p|attorm partnors |s comp|omontary to our usor growth stratogy and tho ovora|| oxpans|on ot our p|attorm.




Expooo tbo 7wlttor P|otorm to lotogroto Voro Cootoot. Wo p|an to cont|nuo to bu||d and acqu|ro now tochno|og|os to onab|o our p|attorm
partnors to d|str|buto contont ot a|| torms.




Portoor wltb 7rooltlooo| Voolo. Wo p|an to cont|nuo to |ovorago our mod|a ro|at|onsh|ps to dr|vo moro contont d|str|but|on on our p|attorm and
croato moro va|uo tor our usors and advort|sors.




Aovortlsors. Wo bo||ovo wo can |ncroaso tho va|uo ot our p|attorm tor our advort|sors by onhanc|ng our advort|s|ng sorv|cos and mak|ng our p|attorm
moro accoss|b|o.



7orgotlog. Wo p|an to cont|nuo to |mprovo tho targot|ng capab|||t|os ot our advort|s|ng sorv|cos.




Opoolog oor P|otorm to Aooltlooo| Aovortlsors. Wo bo||ovo that advort|sors outs|do ot tho Un|tod 3tatos roprosont a substant|a| opportun|ty
and wo p|an to |nvost to |ncroaso our advort|s|ng rovonuo trom |ntornat|ona| advort|sors, |nc|ud|ng by |aunch|ng our so|t-sorvo advort|s|ng p|attorm
|n so|octod |ntornat|ona| markots.




NowAovortlslog lormots. Wo |ntond to dovo|op now and un|quo ad tormats tor our advort|sors. |or oxamp|o, wo rocont|y |ntroducod our |oad
gonorat|on and app||cat|on down|oad 1w|ttor Cards and 1w|ttor Amp||ty, wh|ch a||ows advort|sors to ombod ads |nto roa|-t|mo v|doo contont.


7
1abIo ot Contonta
Riaka Aaaociatod with Our Buainoaa
Our bus|noss |s subjoct to numorous r|sks and uncorta|nt|os, |nc|ud|ng thoso h|gh||ghtod |n tho soct|on t|t|od l|sk |actors' |mmod|ato|y to||ow|ng th|s
prospoctus summary. 1hoso r|sks |nc|udo, but aro not ||m|tod to, tho to||ow|ng:




lt wo ta|| to grow our usor baso, or |t usor ongagomont or tho numbor ot pa|d ongagomonts w|th our pay-tor-portormanco lromotod lroducts, wh|ch wo
rotor to as ad ongagomonts, on our p|attorm doc||no, our rovonuo, bus|noss and oporat|ng rosu|ts may bo harmod,




lt our usors do not cont|nuo to contr|buto contont or tho|r contr|but|ons aro not va|uab|o to othor usors, wo may oxpor|onco a doc||no |n tho numbor ot
usors accoss|ng our products and sorv|cos, wh|ch cou|d rosu|t |n tho |oss ot advort|sors and rovonuo,



Wo gonorato tho substant|a| major|ty ot our rovonuo trom advort|s|ng, and tho |oss ot advort|s|ng rovonuo cou|d harm our bus|noss,



lt wo aro unab|o to compoto ottoct|vo|y tor usors and advort|sor spond, our bus|noss and oporat|ng rosu|ts cou|d bo harmod,



Our oporat|ng rosu|ts may t|uctuato trom quartor to quartor, wh|ch makos thom d|tt|cu|t to prod|ct,




Usor growth and ongagomont dopond upon ottoct|vo |ntoroporat|on w|th oporat|ng systoms, notworks, dov|cos, wob browsors and standards that wo do
not contro|,



lt wo ta|| to oxpand ottoct|vo|y |n |ntornat|ona| markots, our rovonuo and our bus|noss w||| bo harmod,




Wo ant|c|pato that wo w||| oxpond substant|a| tunds |n connoct|on w|th tho tax ||ab|||t|os that ar|so upon tho |n|t|a| sott|omont ot rostr|ctod stock un|ts, or
l3Us, |n connoct|on w|th th|s ottor|ng, and tho mannor |n wh|ch wo tund that oxpond|turo may havo an advorso ottoct on our t|nanc|a| cond|t|on, and




Ex|st|ng oxocut|vo ott|cors, d|roctors and ho|dors ot b% or moro ot our common stock w||| co||oct|vo|y bonot|c|a||y own % ot our common stock and
cont|nuo to havo substant|a| contro| ovor us attor th|s ottor|ng, wh|ch w||| ||m|t your ab|||ty to |nt|uonco tho outcomo ot |mportant transact|ons, |nc|ud|ng a
chango |n contro|.
ChannoIa tor DiacIoauro ot |ntormation
lnvostors, tho mod|a and othors shou|d noto that, to||ow|ng tho comp|ot|on ot th|s ottor|ng, wo |ntond to announco mator|a| |ntormat|on to tho pub||c through
t|||ngs w|th tho 3ocur|t|os and Exchango Comm|ss|on, or tho 3EC, our corporato b|og at b|og.tw|ttor.com, tho |nvostor ro|at|ons pago on our wobs|to, pross
ro|oasos, pub||c contoronco ca||s and wobcasts. Wo a|so |ntond to announco |ntormat|on rogard|ng us and our bus|noss, oporat|ng rosu|ts, t|nanc|a| cond|t|on and
othor mattors through 1woots on tho to||ow|ng 1w|ttor accounts: , and .
1ho |ntormat|on that |s twootod by tho torogo|ng 1w|ttor accounts cou|d bo doomod to bo mator|a| |ntormat|on. As such, wo oncourago |nvostors, tho mod|a
and othors to to||ow tho 1w|ttor accounts ||stod abovo and to rov|ow tho |ntormat|on twootod by such accounts.
Any updatos to tho ||st ot 1w|ttor accounts through wh|ch wo w||| announco |ntormat|on w||| bo postod on tho |nvostor ro|at|ons pago on our wobs|to.


8
1abIo ot Contonta
Cororato |ntormation
1w|ttor, lnc. was |ncorporatod |n 0o|awaro |n Apr|| 2007. Our pr|nc|pa| oxocut|vo ott|cos aro |ocatod at 18bb Varkot 3troot, 3u|to 000, 3an |ranc|sco,
Ca||torn|a 04108, and our to|ophono numbor |s (41b) 222-0070. Our wobs|to addross |s www.tw|ttor.com. lntormat|on conta|nod on, or that can bo accossod
through, our wobs|to doos not const|tuto part ot th|s prospoctus and |nc|us|ons ot our wobs|to addross |n th|s prospoctus aro |nact|vo toxtua| rotoroncos on|y.
1w|ttor,' tho 1w|ttor b|rd |ogo, 1woot,' lotwoot' and our othor rog|storod or common |aw tradomarks, sorv|co marks or trado namos appoar|ng |n th|s
prospoctus aro tho proporty ot 1w|ttor, lnc. Othor tradomarks and trado namos rotorrod to |n th|s prospoctus aro tho proporty ot tho|r rospoct|vo ownors.


0
1abIo ot Contonta
1EE OFFER|NC

Common stock ottorod by us sharos
Common stock to bo outstand|ng attor th|s ottor|ng
sharos
Opt|on to purchaso add|t|ona| sharos ot common stock trom us
sharos
Uso ot procoods

Wo ost|mato that tho not procoods trom tho sa|o ot sharos ot our common
stock |n th|s ottor|ng w||| bo approx|mato|y $ (or approx|mato|y $
|t tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common
stock trom us |s oxorc|sod |n tu||), basod upon tho assumod |n|t|a| pub||c
ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod
ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, and attor
doduct|ng ost|matod undorwr|t|ng d|scounts and comm|ss|ons and
ost|matod ottor|ng oxponsos payab|o by us.

1ho pr|nc|pa| purposos ot th|s ottor|ng aro to |ncroaso our cap|ta||zat|on and
t|nanc|a| t|ox|b|||ty, croato a pub||c markot tor our common stock and onab|o
accoss to tho pub||c oqu|ty markots tor us and our stockho|dors. Wo |ntond
to uso tho not procoods trom th|s ottor|ng tor gonora| corporato purposos,
|nc|ud|ng work|ng cap|ta|, oporat|ng oxponsos and cap|ta| oxpond|turos. Wo
a|so may uso a port|on ot tho not procoods to sat|sty our ant|c|patod tax
w|thho|d|ng and rom|ttanco ob||gat|ons ro|atod to tho sott|omont ot our
outstand|ng l3Us. Add|t|ona||y, wo may uso a port|on ot tho not procoods to
acqu|ro bus|nossos, products, sorv|cos or tochno|og|os. |owovor, oxcopt tor
our proposod acqu|s|t|on ot Volub, lnc., or Volub, |n oxchango tor sharos
ot our common stock, wo do not havo agroomonts or comm|tmonts tor any
mator|a| acqu|s|t|ons at th|s t|mo. 3oo tho soct|on t|t|od Uso ot lrocoods'
tor add|t|ona| |ntormat|on.
Concontrat|on ot Ownorsh|p

Upon comp|ot|on ot th|s ottor|ng, our oxocut|vo ott|cors, d|roctors and ho|dors
ot b% or moro ot our common stock w||| bonot|c|a||y own, |n tho aggrogato,
approx|mato|y % ot our outstand|ng sharos ot common stock.
lroposod symbo| 1W1l'


10
1h 11 o pr| rr nc|pa| purp r osos ot oo th|s ot oot tt o tt r| r ng aro rr to |ncro rr aso our cap|ta||zat aa |on and p p p p g p
t| tt nanc|a| t| tt ox oo |b|||ty, cro rr at aa o a pub||c mark r ot oo to tt r our common stock and onab|o y, p
accoss to tho pub||c oqu|ty mark r ot oo s to tt r us and our stockho|dors rr . Wo |ntond p q y
to uso tho not oo pro rr coods tr tt o rr mth|s ot oot tt o tt r| r ng to tt r gonora rr | corp rr ora rr t aa o purp r osos, p g g p p p ,
|nc|ud|ng wo ww rk r |ng cap|ta|, opora rr t aa |ng ox oo ponsos and cap|ta| ox oo pond|turo rr s. Wo g g p , p g p p p
a|so may aa uso a port rr |on ot oo tho not oo pro rr coods to sat aa |sty tt our ant|c|pat aa od tax aa y p p y p
w| wwthho|d|ng and ro rr m|ttanco ob||gat aa |ons ro rr |at aa od to tho sot oo t|omont ot oo our g g
outstand|ng l3 ll Us. Ad AA d|t|ona||y, wo ww may aa uso a port rr |on ot oo tho not oo pro rr coods to g y, y p p
acqu|ro rr bus|nossos, pro rr ducts, sorv rr | vvcos or tochno|og|os. |ow oo o ww v oo o vv r, rr ox oo copt pp to tt r q , p , g , p
our pro rr posod acqu|s|t|on ot oo Volub, lnc., or Volub, |n ox oo chango to tt r sharo rr s p p q , , , g
ot oo our common stock, wo ww do not oo hav aa o vv agro rr omonts or comm|tmonts to tt r any , g y
mat aa or| rr a| acqu|s|t|ons at aa th|s t|mo. 3oo tho soct|on t|t|od Uso ot oo lro rr coods' q
to tt r add|t|ona| |nto tt rm r at aa |on.
1abIo ot Contonta
1ho numbor ot sharos ot our common stock that w||| bo outstand|ng attor th|s ottor|ng |s basod on 472,018,7b8 sharos ot our common stock (|nc|ud|ng
protorrod stock on an as-convortod bas|s) outstand|ng as ot 1uno 80, 2018, and oxc|udos:




44,1b7,001 sharos ot our common stock |ssuab|o upon tho oxorc|so ot opt|ons to purchaso sharos ot our common stock outstand|ng as ot 1uno 80,
2018, w|th a wo|ghtod-avorago oxorc|so pr|co ot $1.82 por sharo,



b0,018,002 sharos ot our common stock subjoct to l3Us outstand|ng as ot 1uno 80, 2018,




110,b12 sharos ot our common stock, on an as-convortod bas|s, |ssuab|o upon tho oxorc|so ot a warrant to purchaso convort|b|o protorrod stock
outstand|ng as ot 1uno 80, 2018, w|th an oxorc|so pr|co ot $0.84 por sharo,



27,002,040 sharos ot our common stock subjoct to l3Us grantod attor 1uno 80, 2018,



up to 14,701,404 sharos ot our common stock |ssuab|o upon comp|ot|on ot our acqu|s|t|on ot Volub, and




sharos ot our common stock rosorvod tor tuturo |ssuanco undor our oqu|ty componsat|on p|ans wh|ch w||| bocomo ottoct|vo pr|or to tho
comp|ot|on ot th|s ottor|ng, cons|st|ng ot:



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2018 Equ|ty lncont|vo l|an, or our 2018 l|an,




7,814,002 sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2007 Equ|ty lncont|vo l|an, or our 2007 l|an (attor g|v|ng ottoct to
an |ncroaso ot 20,000,000 sharos ot our common stock rosorvod tor |ssuanco undor our 2007 l|an attor 1uno 80, 2018 and tho grant ot
27,002,040 sharos ot our common stock subjoct to l3Us grantod attor 1uno 80, 2018), wh|ch numbor ot sharos w||| bo addod to tho sharos ot
our common stock to bo rosorvod undor our 2018 l|an upon |ts ottoct|vonoss, and



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2018 Emp|oyoo 3tock lurchaso l|an, or our E3ll.
Our 2018 l|an and E3ll oach prov|do tor annua| automat|c |ncroasos |n tho numbor ot sharos rosorvod thoroundor and our 2018 l|an a|so prov|dos tor
|ncroasos to tho numbor ot sharos that may bo grantod thoroundor basod on sharos undor our 2007 l|an that oxp|ro, aro torto|tod or othorw|so ropurchasod by us,
as moro tu||y doscr|bod |n tho soct|on t|t|od Exocut|vo Componsat|on-Emp|oyoo 3onot|t and 3tock l|ans.'
Excopt as othorw|so |nd|catod, a|| |ntormat|on |n th|s prospoctus assumos:




tho automat|c convors|on ot a|| outstand|ng sharos ot our C|ass A jun|or protorrod stock and our convort|b|o protorrod stock |nto an aggrogato ot
888,000,000 sharos ot our common stock, tho convors|on ot wh|ch w||| occur |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng,




tho t|||ng and ottoct|vonoss ot our amondod and rostatod cort|t|cato ot |ncorporat|on |n 0o|awaro and tho adopt|on ot our amondod and rostatod by|aws,
oach ot wh|ch w||| occur |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, and



no oxorc|so by tho undorwr|tors ot tho|r opt|on to purchaso up to an add|t|ona| sharos ot our common stock trom us.


11
1h 11 o numbor ot oo sharo rr s ot oo our common stock that aa w| ww|| bo outstand|ng at aat tt or th|s ot oot tt o tt r| r ng |s basod on 472,018,7b8 sharo rr s ot oo our common stock (|nc|ud|ng g
pro rr t ooo tt rr rr o rr d stock on an as-convo vv rt rr od bas|s) outstand|ng as ot oo 1uno 80, 2018, and ox oo c|udos:
44 44 ,1b7,001 sharo rr s ot oo our common stock |ssuab|o upon tho ox oo orc rr |so ot oo opt pp |ons to purc rr haso sharo rr s ot oo our common stock outstand|ng as ot oo 1uno 80, , , p
2018, w| wwth a wo ww |ghtod-av aa o vv ra rr go ox oo orc rr |so pr| r co ot oo $1.82 por sharo rr ,
b0,018,002 sharo rr s ot oo our common stock subj boct to l3 ll Us outstand|ng as ot oo 1uno 80, 2018,
110,b12 sharo rr s ot oo our common stock, on an as-convo vv rt rr od bas|s, |ssuab|o upon tho ox oo orc rr |so ot oo a wa ww rr rr a rr nt to purc rr haso convo vv rt rr |b|o pro rr t ooo tt rr rr o rr d stock , , ,
outstand|ng as ot oo 1uno 80, 2018, w| wwth an ox oo orc rr |so pr| r co ot oo $0.84 88 por sharo rr ,
27,002,04 00 0 sharo rr s ot oo our common stock subj boct to l3 ll Us gra rr ntod at aat tt or 1uno 80, 2018,
up to 14,701,404 00 sharo rr s ot oo our common stock |ssuab|o upon comp|ot oo |on ot oo our acqu|s|t|on ot oo Volub,
1abIo ot Contonta
5uNNARY CON5OL|DA1ED F|NANC|AL AND O1EER DA1A
1ho to||ow|ng tab|os summar|zo our conso||datod t|nanc|a| and othor data. Wo havo dor|vod tho summary conso||datod statomont ot oporat|ons data tor tho
yoars ondod 0ocombor 81, 2010, 2011 and 2012 trom our aud|tod conso||datod t|nanc|a| statomonts |nc|udod o|sowhoro |n th|s prospoctus. Wo havo dor|vod tho
summary conso||datod statomont ot oporat|ons data tor tho s|x months ondod 1uno 80, 2012 and 2018 and our ba|anco shoot data as ot 1uno 80, 2018 trom our
unaud|tod |ntor|m conso||datod t|nanc|a| statomonts |nc|udod o|sowhoro |n th|s prospoctus. 1ho unaud|tod |ntor|m conso||datod t|nanc|a| statomonts havo boon
proparod on tho samo bas|s as tho aud|tod conso||datod t|nanc|a| statomonts and rot|oct, |n tho op|n|on ot managomont, a|| adjustmonts ot a norma|, rocurr|ng
naturo that aro nocossary tor a ta|r statomont ot tho unaud|tod |ntor|m conso||datod t|nanc|a| statomonts. Our h|stor|ca| rosu|ts aro not nocossar||y |nd|cat|vo ot tho
rosu|ts that may bo oxpoctod |n tho tuturo and tho rosu|ts |n tho s|x months ondod 1uno 80, 2018 aro not nocossar||y |nd|cat|vo ot rosu|ts to bo oxpoctod tor tho tu||
yoar or any othor por|od. 1ho to||ow|ng summary conso||datod t|nanc|a| and othor data shou|d bo road |n conjunct|on w|th tho soct|on t|t|od Vanagomont's
0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons' and our conso||datod t|nanc|a| statomonts and ro|atod notos |nc|udod o|sowhoro |n th|s
prospoctus.

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda, oxcot or aharo data)
ConaoIidatod 5tatomont ot Oorationa Data:
lovonuo $ 28,278 $ 100,818 $ 810,088 $ 122,8b0 $ 2b8,08b
Costsand oxponsos
Cost ot rovonuo 48,108 01,808 128,708 b8,1b7 01,828
losoarch and dovo|opmont 20,848 80,170 110,004 40,84b 111,887
3a|osand markot|ng 0,280 2b,088 80,bb1 84,10b 77,007
Gonora| and adm|n|strat|vo 10,0b2 0b,7b7 b0,008 80,7b8 8b,000

1ota| costsand oxponsos 0b,7b7 288,724 804,010 100,80b 810,4b8

losstrom oporat|ons (07,470) (127,411) (77,088) (47,000) (02,828)
lntorost |ncomo (oxponso), not bb (80b) (2,480) (800) (2,740)
Othor |ncomo (oxponso), not (117) (1,b80) 800 (12) (2,b48)

lossbotoro |ncomo taxos (07,b41) (120,740) (70,170) (47,008) (08,117)
lrov|s|on (bonot|t) tor |ncomo taxos (217) (1,444) 220 1,100 1,184

lot |oss $ (07,824) $ (128,802) $ (70,800) $ (40,104) $ (00,2b1)










0oomod d|v|dond to |nvostors|n ro|at|on to tho tondor ottor - 8b,810 - - -

lot |ossattr|butab|o to common stockho|dors $ (07,824) $ (104,118) $ (70,800) $ (40,104) $ (00,2b1)










Wo|ghtod-avorago sharosusod to computo not |osspor sharo attr|butab|o to common stockho|dors:
3as|c and d||utod 7b,002 102,b44 117,401 114,82b 120,8b8










lot |osspor sharo attr|butab|o to common stockho|dors:
3as|c and d||utod $ (0.80) $ (1.00) $ (0.08) $ (0.48) $ (0.b8)










lro torma not |osspor sharo attr|butab|o to common stockho|dors(unaud|tod):
3as|c and d||utod $ (0.18) $ (0.1b)




Othor FinanciaI |ntormation:
Adjustod E3l10A $ (b1,184) $ (42,88b) $ 21,104 $ 070 $ 21,802
lon-GAAl not |oss $ (b4,000) $ (0b,b88) $ (8b,101) $ (22,282) $ (20,888)


12
(1)
(2)
(8)
,
20,848
,
80,170
,
110,004
,
40,84b
,
111,887
1abIo ot Contonta

Costsand oxponsos|nc|udo stock-basod componsat|on oxponso asto||ows:

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
Cost ot rovonuo $ 200 $ 1,820 $ 800 $ 420 $ 1,0bb
losoarch and dovo|opmont 8,400 88,bb0 12,022 0,201 24,107
3a|osand markot|ng 240 1,bb8 1,840 020 4,014
Gonora| and adm|n|strat|vo 2,078 28,4b2 10,078 8,700 4,802

1ota| stock-basod componsat|on $b,081 $00,884 $2b,741 $10,127 $ 8b,b08











3oo loto 0 to our conso||datod t|nanc|a| statomontstor an oxp|anat|on ot tho ca|cu|at|onsot our pro torma not |osspor sharo attr|butab|o to common stockho|dors.
3oo tho soct|on t|t|od -lon-GAAl ||nanc|a| Voasuros' tor add|t|ona| |ntormat|on and a roconc|||at|on ot not |ossto Adjustod E3l10Aand not |ossto non-GAAl not |oss.


Aa ot Juno 80, 2018
ActuaI Pro Forma
Pro Forma
aa Ad[ uatod
(|n thouaanda)
ConaoIidatod BaIanco 5hoot Data:
Cash and cash oqu|va|onts $ 104,b00 $ 104,b00 $
3hort-torm |nvostmonts 210,b40 210,b40
Work|ng cap|ta| 882,820 882,820
lroporty and oqu|pmont, not 242,bb8 242,bb8
1ota| assots 004,0b0 004,0b0
1ota| ||ab|||t|os 2bb,808 247,108
C|assAjun|or protorrod stock 87,100 -
Convort|b|o protorrod stock 88b,480 -
1ota| stockho|dors' oqu|ty (dot|c|t) (104,87b) 710,800

1ho pro torma co|umn |n tho ba|anco shoot data tab|o abovo rot|octs(a) tho automat|c convors|on ot a|| outstand|ng sharosot our C|assAjun|or protorrod stockand our convort|b|o protorrod
stock|nto an aggrogato ot 888,000,000 sharosot our common stock, wh|ch convors|on w||| occur |mmod|ato|y pr|or to tho comp|ot|on ot th|sottor|ng, as|t such convors|on had occurrod on
1uno 80, 2018, (b) tho rosu|t|ng roc|ass|t|cat|on ot tho rostr|ctod C|assAjun|or protorrod stockand protorrod stockwarrant ||ab|||ty trom othor |ong-torm ||ab|||t|osto add|t|ona| pa|d-|n cap|ta|
and (c) stock-basod componsat|on oxponso ot $820.0 m||||on, assoc|atod w|th lro-2018 l3Ustor wh|ch tho sorv|co cond|t|on wassat|st|od asot 1uno 80, 2018, and wh|ch wo oxpoct to rocord
upon comp|ot|on ot th|sottor|ng, asturthor doscr|bod |n tho soct|on t|t|od Vanagomont's0|scuss|on and Ana|ys|sot ||nanc|a| Cond|t|on and losu|tsot Oporat|ons-Cr|t|ca| Account|ng
lo||c|osand Est|matos-3tock-3asod Componsat|on.'
1ho pro torma asadjustod co|umn |n tho ba|anco shoot data tab|o abovo g|vosottoct to (a) tho pro torma adjustmontssot torth abovo, (b) tho sa|o and |ssuanco by usot sharosot our
common stock|n th|sottor|ng, basod upon tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |stho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago
ot th|sprospoctus, and attor doduct|ng ost|matod undorwr|t|ng d|scountsand comm|ss|onsand ost|matod ottor|ng oxponsospayab|o by usand (c) tho t|||ng and ottoct|vonossot our amondod
and rostatod cort|t|cato ot |ncorporat|on |n 0o|awaro.
Each $1.00 |ncroaso or docroaso |n tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |stho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s
prospoctus, wou|d |ncroaso or docroaso, asapp||cab|o, tho amount ot our cash and cash oqu|va|onts, work|ng cap|ta|, tota| assotsand tota| stockho|dors' oqu|ty by $ , assum|ng that tho
numbor ot sharosottorod by us, assot torth on tho covor pago ot th|sprospoctus, roma|nstho samo, attor doduct|ng ost|matod undorwr|t|ng d|scountsand comm|ss|onspayab|o by us. An
|ncroaso or docroaso ot 1.0 m||||on sharos|n tho numbor ot sharosottorod by uswou|d |ncroaso or docroaso, asapp||cab|o, tho amount ot our cash and cash oqu|va|onts, work|ng cap|ta|, tota|
assotsand tota| stockho|dors' oqu|ty by $ , assum|ng an |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |stho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor
pago ot th|sprospoctus, attor doduct|ng ost|matod undorwr|t|ng d|scountsand comm|ss|onspayab|o by us.
Non-CAAP FinanciaI Noaauroa
1o supp|omont our conso||datod t|nanc|a| statomonts prosontod |n accordanco w|th gonora||y accoptod account|ng pr|nc|p|os |n tho Un|tod 3tatos, or
GAAl, wo cons|dor corta|n t|nanc|a| moasuros that aro not proparod |n accordanco w|th GAAl, |nc|ud|ng Adjustod E3l10A and non-GAAl not |oss.


18
(1)
(2)
(8)
(1) (2)(8)
(1)
(2)
(8)
1abIo ot Contonta
1hoso non-GAAl t|nanc|a| moasuros aro not basod on any standard|zod mothodo|ogy proscr|bod by GAAl and aro not nocossar||y comparab|o to s|m||ar|y-t|t|od
moasuros prosontod by othor compan|os.
Adjusted EBl1A
Wo dot|no Adjustod E3l10A as not |oss adjustod to oxc|udo stock-basod componsat|on oxponso, doproc|at|on and amort|zat|on oxponso, |ntorost and
othor oxponsos and prov|s|on (bonot|t) tor |ncomo taxos.
1ho to||ow|ng tab|o prosonts a roconc|||at|on ot not |oss to Adjustod E3l10A tor oach ot tho por|ods |nd|catod:

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
RoconciIiation ot Not Loaa to Ad[ uatod EB|1DA
lot |oss $(07,824) $(128,802) $(70,800) $(40,104) $ (00,2b1)
3tock-basod componsat|on oxponso b,081 00,884 2b,741 10,127 8b,b08
0oproc|at|on and amort|zat|on oxponso 10,804 24,102 72,b00 81,b40 48,047
lntorost and othor oxponso 02 2,88b 2,087 002 b,204
lrov|s|on (bonot|t) tor |ncomo taxos (217) (1,444) 220 1,100 1,184

Adjustod E3l10A $(b1,184) $ (42,88b) $ 21,104 $ 070 $ 21,802










Non-GAAP Net Loss
Wo dot|no non-GAAl not |oss as not |oss adjustod to oxc|udo stock-basod componsat|on oxponso, amort|zat|on ot acqu|rod |ntang|b|o assots and tho
|ncomo tax ottocts ro|atod to acqu|s|t|ons.
1ho to||ow|ng tab|o prosonts a roconc|||at|on ot not |oss to non-GAAl not |oss tor oach ot tho por|ods |nd|catod:

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
RoconciIiation ot Not Loaa to Non-CAAP Not Loaa
lot |oss $(07,824) $(128,802) $(70,800) $(40,104) $ (00,2b1)
3tock-basod componsat|on oxponso b,081 00,884 2b,741 10,127 8b,b08
Amort|zat|on ot acqu|rod |ntang|b|o assots 7,b00 4,007 18,087 10,2bb 7,178
lncomo tax ottoctsro|atod to acqu|s|t|ons (170) (2,812) (220) 400 (888)

lon-GAAl not |oss $(b4,000) $ (0b,b88) $(8b,101) $(22,282) $ (20,888)










Wo uso tho non-GAAl t|nanc|a| moasuros ot Adjustod E3l10A and non-GAAl not |oss |n ova|uat|ng our oporat|ng rosu|ts and tor t|nanc|a| and oporat|ona|
doc|s|on-mak|ng purposos. Wo bo||ovo that Adjustod E3l10A and non-GAAl not |oss ho|p |dont|ty undor|y|ng tronds |n our bus|noss that cou|d othorw|so bo
maskod by tho ottoct ot tho oxponsos that wo oxc|udo |n Adjustod E3l10A and non-GAAl not |oss. Wo bo||ovo that Adjustod E3l10A and non-GAAl not |oss
prov|do usotu| |ntormat|on about our oporat|ng rosu|ts, onhanco tho ovora|| undorstand|ng ot our past portormanco and tuturo prospocts and a||ow tor groator
transparoncy w|th rospoct to koy motr|cs usod by our managomont |n |ts t|nanc|a| and oporat|ona| doc|s|on-mak|ng. Wo uso thoso moasuros to ostab||sh budgots
and oporat|ona| goa|s tor manag|ng our bus|noss and ova|uat|ng our portormanco. Wo aro prosont|ng tho non-GAAl moasuros ot Adjustod E3l10A and non-GAAl
not |oss to ass|st |nvostors |n soo|ng our oporat|ng rosu|ts through tho oyos ot


14
1abIo ot Contonta
managomont, and bocauso wo bo||ovo that thoso moasuros prov|do an add|t|ona| too| tor |nvostors to uso |n compar|ng our coro bus|noss oporat|ng rosu|ts ovor
mu|t|p|o por|ods w|th othor compan|os |n our |ndustry.
1hoso non-GAAl t|nanc|a| moasuros shou|d not bo cons|dorod |n |so|at|on trom, or as a subst|tuto tor, t|nanc|a| |ntormat|on proparod |n accordanco w|th
GAAl. 1horo aro a numbor ot ||m|tat|ons ro|atod to tho uso ot thoso non-GAAl t|nanc|a| moasuros rathor than not |oss, wh|ch |s tho noarost GAAl oqu|va|ont ot
thoso t|nanc|a| moasuros. 3omo ot thoso ||m|tat|ons aro:




1hoso non-GAAl t|nanc|a| moasuros oxc|udo corta|n rocurr|ng, non-cash chargos such as stock-basod componsat|on oxponso and amort|zat|on ot
acqu|rod |ntang|b|o assots,




3tock-basod componsat|on oxponso, wh|ch |s not rot|octod |n thoso non-GAAl t|nanc|a| moasuros, has boon, and w||| cont|nuo to bo tor tho
torosooab|o tuturo, a s|gn|t|cant rocurr|ng oxponso |n our bus|noss and an |mportant part ot our componsat|on stratogy,



Adjustod E3l10A doos not rot|oct tax paymonts that roduco cash ava||ab|o to us,




Adjustod E3l10A oxc|udos doproc|at|on and amort|zat|on oxponso and, a|though thoso aro non-cash chargos, tho proporty and oqu|pmont bo|ng
doproc|atod and amort|zod may havo to bo rop|acod |n tho tuturo, and




1ho oxponsos that wo oxc|udo |n our ca|cu|at|on ot thoso non-GAAl t|nanc|a| moasuros may d|ttor trom tho oxponsos, |t any, that our poor compan|os
may oxc|udo trom s|m||ar|y-t|t|od non-GAAl moasuros whon thoy roport tho|r rosu|ts ot oporat|ons.
Wo havo attomptod to componsato tor thoso ||m|tat|ons by prov|d|ng tho noarost GAAl oqu|va|onts ot thoso non-GAAl t|nanc|a| moasuros and doscr|b|ng
thoso GAAl oqu|va|onts undor tho soct|on t|t|od Vanagomont's 0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons-losu|ts ot
Oporat|ons.'


1b
1abIo ot Contonta
R|5K FAC1OR5
lovostlog lo oor commoo stock lovo|vos o blgb oogroo o rlsk. Yoo sboo|o coroo||y coosloor tbo rlsks ooo oocortolotlos ooscrlboo bo|ow, togotbor wltb o|| o tbo
otbor loormotloo lo tbls prospoctos, loc|oolog Vooogomoot`s Llscossloo ooo Aoo|ysls o lloooclo| Coooltloo ooo Roso|ts o Oporotloos' ooo oor cooso|lootoo loooclo|
stotomoots ooo ro|otoo ootos, booro moklog o ooclsloo to lovost lo oor commoo stock. 7bo rlsks ooo oocortolotlos ooscrlboo bo|owmoy oot bo tbo oo|y ooos wo
oco. l ooy o tbo rlsks octoo||y occor, oor boslooss, loooclo| coooltloo, oporotlog roso|ts ooo prospocts coo|o bo motorlo||y ooo oovorso|y ooctoo. lo tbot ovoot, tbo
morkot prlco o oor commoo stock coo|o ooc|loo, ooo yoo coo|o |oso port or o|| o yoor lovostmoot.
Riaka RoIatod to Our Buainoaa and Our |nduatry
l| we |aIl to grow our user base, or I| user engagement or ad engagement on our plat|orm declIne, our revenue, busIness and operatIng results may be
harmed.
1ho s|zo ot our usor baso and our usors' |ovo| ot ongagomont aro cr|t|ca| to our succoss. Wo had 218.8 m||||on avorago VAUs |n tho throo months ondod 1uno
80, 2018, wh|ch was a 44% |ncroaso trom 1b1.4 m||||on avorago VAUs |n tho throo months ondod 1uno 80, 2012. Our t|nanc|a| portormanco has boon and w||| cont|nuo
to bo s|gn|t|cant|y dotorm|nod by our succoss |n grow|ng tho numbor ot usors and |ncroas|ng tho|r ovora|| |ovo| ot ongagomont on our p|attorm as wo|| as tho numbor ot
ad ongagomonts. Wo ant|c|pato that our usor growth rato w||| s|ow ovor t|mo as tho s|zo ot our usor baso |ncroasos. |or oxamp|o, |n gonora|, a h|ghor proport|on ot
lntornot usors |n tho Un|tod 3tatos usos 1w|ttor than lntornot usors |n othor countr|os and, |n tho tuturo, wo oxpoct our usor growth rato |n corta|n |ntornat|ona| markots,
such as Argont|na, |ranco, 1apan, luss|a, 3aud| Arab|a and 3outh Atr|ca, to cont|nuo to bo h|ghor than our usor growth rato |n tho Un|tod 3tatos. 1o tho oxtont our usor
growth rato s|ows, our succoss w||| bocomo |ncroas|ng|y dopondont on our ab|||ty to |ncroaso |ovo|s ot usor ongagomont and ad ongagomont on 1w|ttor. Wo gonorato a
substant|a| major|ty ot our rovonuo basod upon ongagomont by our usors w|th tho ads that wo d|sp|ay. lt poop|o do not porco|vo our products and sorv|cos to bo usotu|,
ro||ab|o and trustworthy, wo may not bo ab|o to attract usors or |ncroaso tho troquoncy ot tho|r ongagomont w|th our p|attorm and tho ads that wo d|sp|ay. A numbor ot
consumor-or|ontod wobs|tos that ach|ovod oar|y popu|ar|ty havo s|nco soon tho|r usor basos or |ovo|s ot ongagomont doc||no, |n somo casos proc|p|tous|y. 1horo |s no
guarantoo that wo w||| not oxpor|onco a s|m||ar oros|on ot our usor baso or ongagomont |ovo|s. A numbor ot tactors cou|d potont|a||y nogat|vo|y attoct usor growth and
ongagomont, |nc|ud|ng |t:



usors ongago w|th othor products, sorv|cos or act|v|t|os as an a|tornat|vo to ours,




|nt|uont|a| usors, such as wor|d |oadors, govornmont ott|c|a|s, co|obr|t|os, ath|otos, journa||sts, sports toams, mod|a out|ots and brands or corta|n ago
domograph|cs conc|udo that an a|tornat|vo product or sorv|co |s moro ro|ovant,



wo aro unab|o to conv|nco potont|a| now usors ot tho va|uo and usotu|noss ot our products and sorv|cos,



thoro |s a docroaso |n tho porco|vod qua||ty ot tho contont gonoratod by our usors,



wo ta|| to |ntroduco now and |mprovod products or sorv|cos or |t wo |ntroduco now products or sorv|cos that aro not tavorab|y roco|vod,



tochn|ca| or othor prob|oms provont us trom do||vor|ng our products or sorv|cos |n a rap|d and ro||ab|o mannor or othorw|so attoct tho usor oxpor|onco,



wo aro unab|o to prosont usors w|th contont that |s |ntorost|ng, usotu| and ro|ovant to thom,




usors bo||ovo that tho|r oxpor|onco |s d|m|n|shod as a rosu|t ot tho doc|s|ons wo mako w|th rospoct to tho troquoncy, ro|ovanco and prom|nonco ot ads that
wo d|sp|ay,



thoro aro usor concorns ro|atod to pr|vacy and commun|cat|on, satoty, socur|ty or othor tactors,

10
1abIo ot Contonta


wo aro unab|o to combat spam or othor host||o or |nappropr|ato usago on our p|attorm,




thoro aro advorso changos |n our products or sorv|cos that aro mandatod by, or that wo o|oct to mako to addross, |og|s|at|on, rogu|atory author|t|os or
||t|gat|on, |nc|ud|ng sott|omonts or consont docroos,



wo ta|| to prov|do adoquato customor sorv|co to usors, or



wo do not ma|nta|n our brand |mago or our roputat|on |s damagod.
lt wo aro unab|o to |ncroaso our usor growth or ongagomont, or |t thoy doc||no, th|s cou|d rosu|t |n our products and sorv|cos bo|ng |oss attract|vo to potont|a|
now usors, as wo|| as advort|sors, wh|ch wou|d havo a mator|a| and advorso |mpact on our bus|noss, t|nanc|a| cond|t|on and oporat|ng rosu|ts.
l| our users do not contInue to contrIbute content or theIr contrIbutIons are not valuable to other users, we may experIence a declIne In the number o| users
accessIng our products and servIces and user engagement, whIch could result In the loss o| advertIsers and revenue.
Our succoss doponds on our ab|||ty to prov|do usors ot our products and sorv|cos w|th va|uab|o contont, wh|ch |n turn doponds on tho contont contr|butod by our
usors. Wo bo||ovo that ono ot our compot|t|vo advantagos |s tho qua||ty, quant|ty and roa|-t|mo naturo ot tho contont on 1w|ttor, and that accoss to un|quo or roa|-t|mo
contont |s ono ot tho ma|n roasons usors v|s|t 1w|ttor. Our ab|||ty to oxpand |nto now |ntornat|ona| markots doponds on tho ava||ab|||ty ot ro|ovant |oca| contont |n thoso
markots. Wo sook to tostor a broad and ongagod usor commun|ty, and wo oncourago wor|d |oadors, govornmont ott|c|a|s, co|obr|t|os, ath|otos, journa||sts, sports
toams, mod|a out|ots and brands to uso our products and sorv|cos to oxpross tho|r v|ows to broad aud|oncos. Wo a|so oncourago mod|a out|ots to uso our products and
sorv|cos to d|str|buto tho|r contont. lt usors, |nc|ud|ng |nt|uont|a| usors, do not cont|nuo to contr|buto contont to 1w|ttor, and wo aro unab|o to prov|do usors w|th va|uab|o
and t|mo|y contont, our usor baso and usor ongagomont may doc||no. Add|t|ona||y, |t wo aro not ab|o to addross usor concorns rogard|ng tho satoty and socur|ty ot our
products and sorv|cos or |t wo aro unab|o to succosstu||y provont abus|vo or othor host||o bohav|or on our p|attorm, tho s|zo ot our usor baso and usor ongagomont may
doc||no. Wo ro|y on tho sa|o ot advort|s|ng sorv|cos tor tho substant|a| major|ty ot our rovonuo. lt wo oxpor|onco a doc||no |n tho numbor ot usors or a doc||no |n usor
ongagomont, |nc|ud|ng as a rosu|t ot tho |oss ot wor|d |oadors, govornmont ott|c|a|s, co|obr|t|os, ath|otos, journa||sts, sports toams, mod|a out|ots and brands who
gonorato contont on 1w|ttor, advort|sors may not v|ow our products and sorv|cos as attract|vo tor tho|r markot|ng oxpond|turos, and may roduco tho|r spond|ng w|th us
wh|ch wou|d harm our bus|noss and oporat|ng rosu|ts.
We generate the substantIal majorIty o| our revenue |rom advertIsIng. 1he loss o| advertIsIng revenue could harm our busIness.
1ho substant|a| major|ty ot our rovonuo |s curront|y gonoratod trom th|rd part|os advort|s|ng on 1w|ttor. Wo gonoratod 8b% and 87% ot our rovonuo trom
advort|s|ng |n 2012 and tho s|x months ondod 1uno 80, 2018, rospoct|vo|y. Wo gonorato substant|a||y a|| ot our advort|s|ng rovonuo through tho sa|o ot our throo
lromotod lroducts: lromotod 1woots, lromotod Accounts and lromotod 1ronds. As |s common |n tho |ndustry, our advort|sors do not havo |ong-torm advort|s|ng
comm|tmonts w|th us. ln add|t|on, many ot our advort|sors purchaso our advort|s|ng sorv|cos through ono ot sovora| |argo advort|s|ng agoncy ho|d|ng compan|os.
Advort|s|ng agonc|os and potont|a| now advort|sors may v|ow our lromotod lroducts as oxpor|monta| and unprovon, and wo may nood to dovoto add|t|ona| t|mo and
rosourcos to oducato thom about our products and sorv|cos. Advort|sors a|so may chooso to roach usors through our troo products and sorv|cos, |nstoad ot our
lromotod lroducts. Advort|sors w||| not cont|nuo to do bus|noss w|th us, or thoy w||| roduco tho pr|cos thoy aro w||||ng to pay to advort|so w|th us, |t wo do not do||vor
ads |n an ottoct|vo mannor, or |t thoy do not bo||ovo that tho|r |nvostmont |n advort|s|ng w|th us w||| gonorato a compot|t|vo roturn ro|at|vo to a|tornat|vos, |nc|ud|ng on||no,
mob||o

17
1abIo ot Contonta
and trad|t|ona| advort|s|ng p|attorms. Our advort|s|ng rovonuo cou|d bo advorso|y attoctod by a numbor ot othor tactors, |nc|ud|ng:



docroasos |n usor ongagomont w|th 1w|ttor and w|th tho ads on our p|attorm,




|t wo aro unab|o to domonstrato tho va|uo ot our lromotod lroducts to advort|sors and advort|s|ng agonc|os or |t wo aro unab|o to moasuro tho va|uo ot our
lromotod lroducts |n a mannor wh|ch advort|sors and advort|s|ng agonc|os t|nd usotu|,




|t our lromotod lroducts aro not cost ottoct|vo or va|uab|o tor corta|n typos ot advort|sors or |t wo aro unab|o to dovo|op cost ottoct|vo or va|uab|o advort|s|ng
sorv|cos tor d|ttoront typos ot advort|sors,




|t wo aro unab|o to conv|nco advort|sors and brands to |nvost rosourcos |n |oarn|ng to uso our products and sorv|cos and ma|nta|n|ng a brand prosonco on
1w|ttor,




product or sorv|co changos wo may mako that chango tho troquoncy or ro|at|vo prom|nonco ot ads d|sp|ayod on 1w|ttor or that dotr|monta||y |mpact rovonuo
|n tho noar torm w|th tho goa| ot ach|ov|ng |ong torm bonot|ts,



our |nab|||ty to |ncroaso advort|sor domand and |nvontory,



our |nab|||ty to |ncroaso tho ro|ovanco ot ads shown to usors,




our |nab|||ty to ho|p advort|sors ottoct|vo|y targot ads, |nc|ud|ng as a rosu|t ot tho tact that wo do not co||oct oxtons|vo pr|vato porsona||y |dont|t|ab|o
|ntormat|on d|roct|y trom our usors and that wo do not havo roa|-t|mo goograph|c |ntormat|on tor a|| ot our usors,



cont|nu|ng docroasos |n tho cost por ad ongagomont,



|oss ot advort|s|ng markot sharo to our compot|tors,



tho dogroo to wh|ch usors accoss 1w|ttor contont through app||cat|ons that do not conta|n our ads,



|t wo ontor |nto rovonuo shar|ng arrangomonts or othor partnorsh|ps w|th th|rd part|os,



our now advort|s|ng stratog|os, such as to|ov|s|on targot|ng and roa|-t|mo v|doo c||ps omboddod |n 1woots, do not ga|n tract|on,



tho |mpact ot now tochno|og|os that cou|d b|ock or obscuro tho d|sp|ay ot our ads,




advorso |oga| dovo|opmonts ro|at|ng to advort|s|ng or moasuromont too|s ro|atod to tho ottoct|vonoss ot advort|s|ng, |nc|ud|ng |og|s|at|vo and rogu|atory
dovo|opmonts, and dovo|opmonts |n ||t|gat|on,



advorso mod|a roports or othor nogat|vo pub||c|ty |nvo|v|ng us or othor compan|os |n our |ndustry,



our |nab|||ty to croato now products and sorv|cos that susta|n or |ncroaso tho va|uo ot our advort|s|ng sorv|cos to both our advort|sors and our usors,



tho |mpact ot traudu|ont c||cks or spam on our lromotod lroducts and our usors,



changos |n tho way our advort|s|ng |s pr|cod, and



tho |mpact ot macrooconom|c cond|t|ons and cond|t|ons |n tho advort|s|ng |ndustry |n gonora|.
1ho occurronco ot any ot thoso or othor tactors cou|d rosu|t |n a roduct|on |n domand tor our ads, wh|ch may roduco tho pr|cos wo roco|vo tor our ads, o|thor ot
wh|ch wou|d nogat|vo|y attoct our rovonuo and oporat|ng rosu|ts.
l| we are unable to compete e||ectIvely |or users and advertIser spend, our busIness and operatIng results could be harmed.
Compot|t|on tor usors ot our products and sorv|cos |s |ntonso. A|though wo havo dovo|opod a now g|oba| p|attorm tor pub||c so|t-oxpross|on and convorsat|on |n
roa| t|mo, wo taco strong compot|t|on |n our

18
1abIo ot Contonta
bus|noss. Wo compoto aga|nst many compan|os to attract and ongago usors, |nc|ud|ng compan|os wh|ch havo groator t|nanc|a| rosourcos and substant|a||y |argor usor
basos, such as |acobook (|nc|ud|ng lnstagram), Goog|o, l|nkodln, V|crosott and Yahoo!, wh|ch ottor a var|oty ot lntornot and mob||o dov|co-basod products, sorv|cos
and contont. |or oxamp|o, |acobook oporatos a soc|a| notwork|ng s|to w|th s|gn|t|cant|y moro usors than 1w|ttor and has boon |ntroduc|ng toaturos s|m||ar to thoso ot
1w|ttor. ln add|t|on, Goog|o may uso |ts strong pos|t|on |n ono or moro markots to ga|n a compot|t|vo advantago ovor us |n aroas |n wh|ch wo oporato, |nc|ud|ng by
|ntograt|ng compot|ng toaturos |nto products or sorv|cos thoy contro|. As a rosu|t, our compot|tors may acqu|ro and ongago usors at tho oxponso ot tho growth or
ongagomont ot our usor baso, wh|ch wou|d nogat|vo|y attoct our bus|noss. Wo a|so compoto aga|nst sma||or compan|os, such as 3|na Wo|bo, lllE and Kakao, oach ot
wh|ch |s basod |n As|a.
Wo bo||ovo that our ab|||ty to compoto ottoct|vo|y tor usors doponds upon many tactors both w|th|n and boyond our contro|, |nc|ud|ng:



tho popu|ar|ty, usotu|noss, oaso ot uso, portormanco and ro||ab|||ty ot our products and sorv|cos comparod to thoso ot our compot|tors,



tho amount, qua||ty and t|mo||noss ot contont gonoratod by our usors,



tho t|m|ng and markot accoptanco ot our products and sorv|cos,



tho cont|nuod adopt|on ot our products and sorv|cos |ntornat|ona||y,



our ab|||ty, and tho ab|||ty ot our compot|tors, to dovo|op now products and sorv|cos and onhancomonts to ox|st|ng products and sorv|cos,



tho troquoncy and ro|at|vo prom|nonco ot tho ads d|sp|ayod by us or our compot|tors,



our ab|||ty to ostab||sh and ma|nta|n ro|at|onsh|ps w|th p|attorm partnors that |ntograto w|th our p|attorm,




changos mandatod by, or that wo o|oct to mako to addross, |og|s|at|on, rogu|atory author|t|os or ||t|gat|on, |nc|ud|ng sott|omonts and consont docroos, somo
ot wh|ch may havo a d|sproport|onato ottoct on us,



tho app||cat|on ot ant|trust |aws both |n tho Un|tod 3tatos and |ntornat|ona||y,



govornmont act|on rogu|at|ng compot|t|on,



our ab|||ty to attract, rota|n and mot|vato ta|ontod omp|oyoos, part|cu|ar|y ong|noors, dos|gnors and product managors,



acqu|s|t|ons or conso||dat|on w|th|n our |ndustry, wh|ch may rosu|t |n moro torm|dab|o compot|tors, and



our roputat|on and tho brand strongth ro|at|vo to our compot|tors.
Wo a|so taco s|gn|t|cant compot|t|on tor advort|sor spond. 1ho substant|a| major|ty ot our rovonuo |s curront|y gonoratod through ads on 1w|ttor, and wo compoto
aga|nst on||no and mob||o bus|nossos, |nc|ud|ng thoso rotoroncod abovo, and trad|t|ona| mod|a out|ots, such as to|ov|s|on, rad|o and pr|nt, tor advort|s|ng budgots. ln
ordor to grow our rovonuo and |mprovo our oporat|ng rosu|ts, wo must |ncroaso our sharo ot spond|ng on advort|s|ng ro|at|vo to our compot|tors, many ot wh|ch aro |argor
compan|os that ottor moro trad|t|ona| and w|do|y accoptod advort|s|ng products. ln add|t|on, somo ot our |argor compot|tors havo substant|a||y broador product or sorv|co
ottor|ngs and |ovorago tho|r ro|at|onsh|ps basod on othor products or sorv|cos to ga|n add|t|ona| sharo ot advort|s|ng budgots.
Wo bo||ovo that our ab|||ty to compoto ottoct|vo|y tor advort|sor spond doponds upon many tactors both w|th|n and boyond our contro|, |nc|ud|ng:



tho s|zo and compos|t|on ot our usor baso ro|at|vo to thoso ot our compot|tors,

10
1abIo ot Contonta


our ad targot|ng capab|||t|os, and thoso ot our compot|tors,



tho t|m|ng and markot accoptanco ot our advort|s|ng sorv|cos, and thoso ot our compot|tors,



our markot|ng and so|||ng ottorts, and thoso ot our compot|tors,



tho pr|c|ng tor our lromotod lroducts ro|at|vo to tho advort|s|ng products and sorv|cos ot our compot|tors,



tho roturn our advort|sors roco|vo trom our advort|s|ng sorv|cos, and thoso ot our compot|tors, and



our roputat|on and tho strongth ot our brand ro|at|vo to our compot|tors.
ln rocont yoars, thoro havo boon s|gn|t|cant acqu|s|t|ons and conso||dat|on by and among our actua| and potont|a| compot|tors. Wo ant|c|pato th|s trond ot
conso||dat|on w||| cont|nuo, wh|ch w||| prosont ho|ghtonod compot|t|vo cha||ongos tor our bus|noss. Acqu|s|t|ons by our compot|tors may rosu|t |n roducod tunct|ona||ty ot
our products and sorv|cos. |or oxamp|o, to||ow|ng |acobook's acqu|s|t|on ot lnstagram, |acobook d|sab|od lnstagram's photo |ntograt|on w|th 1w|ttor such that
lnstagram photos aro no |ongor v|owab|o w|th|n 1woots and usors aro now ro-d|roctod to lnstagram to v|ow lnstagram photos through a ||nk w|th|n a 1woot. As a rosu|t,
our usors may bo |oss ||ko|y to c||ck on ||nks to lnstagram photos |n 1woots, and lnstagram usors may bo |oss ||ko|y to twoot or roma|n act|vo usors ot 1w|ttor. Any
s|m||ar o||m|nat|on ot |ntograt|on w|th 1w|ttor |n tho tuturo, whothor by |acobook or othors, may advorso|y |mpact our bus|noss and oporat|ng rosu|ts.
Conso||dat|on may a|so onab|o our |argor compot|tors to ottor bund|od or |ntogratod products that toaturo a|tornat|vos to our p|attorm. loducod tunct|ona||ty ot
our products and sorv|cos, or our compot|tors' ab|||ty to ottor bund|od or |ntogratod products that compoto d|roct|y w|th us, may causo our usor growth, usor ongagomont
and ad ongagomont to doc||no and advort|sors to roduco tho|r spond w|th us.
lt wo aro not ab|o to compoto ottoct|vo|y tor usors and advort|sor spond our bus|noss and oporat|ng rosu|ts wou|d bo mator|a||y and advorso|y attoctod.
Our operatIng results may |luctuate |rom quarter to quarter, whIch makes them dI||Icult to predIct.
Our quartor|y oporat|ng rosu|ts havo t|uctuatod |n tho past and w||| t|uctuato |n tho tuturo. As a rosu|t, our past quartor|y oporat|ng rosu|ts aro not nocossar||y
|nd|cators ot tuturo portormanco. Our oporat|ng rosu|ts |n any g|von quartor can bo |nt|uoncod by numorous tactors, many ot wh|ch wo aro unab|o to prod|ct or aro
outs|do ot our contro|, |nc|ud|ng:



our ab|||ty to grow our usor baso and usor ongagomont,



our ab|||ty to attract and rota|n advort|sors,



tho occurronco ot p|annod s|gn|t|cant ovonts, such as tho 3upor 3ow|, or unp|annod s|gn|t|cant ovonts, such as natura| d|sastors and po||t|ca| rovo|ut|ons,



t|uctuat|ons |n spond|ng by our advort|sors, |nc|ud|ng as a rosu|t ot soasona||ty and oxtraord|nary nows ovonts, or othor tactors,



tho numbor ot ad ongagomonts by usors,



tho pr|c|ng ot our ads and othor products and sorv|cos,



tho dovo|opmont and |ntroduct|on ot now products or sorv|cos or changos |n toaturos ot ox|st|ng products or sorv|cos,



tho |mpact ot compot|tors or compot|t|vo products and sorv|cos,



our ab|||ty to ma|nta|n or |ncroaso rovonuo,



our ab|||ty to ma|nta|n or |mprovo gross marg|ns and oporat|ng marg|ns,

20
1abIo ot Contonta



|ncroasos |n rosoarch and dovo|opmont, markot|ng and sa|os and othor oporat|ng oxponsos that wo may |ncur to grow and oxpand our oporat|ons and to
roma|n compot|t|vo,



stock-basod componsat|on oxponso, |nc|ud|ng |n tho yoar wo comp|oto th|s ottor|ng,



costs ro|atod to tho acqu|s|t|on ot bus|nossos, ta|ont, tochno|og|os or |nto||octua| proporty, |nc|ud|ng potont|a||y s|gn|t|cant amort|zat|on costs,



systom ta||uros rosu|t|ng |n tho |naccoss|b|||ty ot our products and sorv|cos,



broachos ot socur|ty or pr|vacy, and tho costs assoc|atod w|th romod|at|ng any such broachos,



advorso ||t|gat|on judgmonts, sott|omonts or othor ||t|gat|on-ro|atod costs, and tho toos assoc|atod w|th |nvost|gat|ng and dotond|ng c|a|ms,




changos |n tho |og|s|at|vo or rogu|atory onv|ronmont, |nc|ud|ng w|th rospoct to socur|ty, pr|vacy or ontorcomont by govornmont rogu|ators, |nc|ud|ng t|nos,
ordors or consont docroos,



t|uctuat|ons |n curroncy oxchango ratos and changos |n tho proport|on ot our rovonuo and oxponsos donom|natod |n toro|gn curronc|os,



changos |n U.3. gonora||y accoptod account|ng pr|nc|p|os, and



changos |n g|oba| bus|noss or macrooconom|c cond|t|ons.
G|von our ||m|tod oporat|ng h|story and tho rap|d|y ovo|v|ng markots |n wh|ch wo compoto, our h|stor|ca| oporat|ng rosu|ts may not bo usotu| to you |n prod|ct|ng
our tuturo oporat|ng rosu|ts. Wo bo||ovo our rap|d growth may undorstato tho potont|a| soasona||ty ot our bus|noss. As our rovonuo growth rato s|ows, wo oxpoct that tho
soasona||ty |n our bus|noss may bocomo moro pronouncod and may |n tho tuturo causo our oporat|ng rosu|ts to t|uctuato. |or oxamp|o, advort|s|ng spond|ng |s
trad|t|ona||y soasona||y strong |n tho tourth quartor ot oach yoar and wo bo||ovo that th|s soasona||ty attocts our quartor|y rosu|ts, wh|ch gonora||y rot|oct h|ghor
soquont|a| advort|s|ng rovonuo growth trom tho th|rd to tourth quartor comparod to soquont|a| advort|s|ng rovonuo growth trom tho tourth quartor to tho subsoquont t|rst
quartor. ln add|t|on, g|oba| oconom|c concorns cont|nuo to croato uncorta|nty and unprod|ctab|||ty and add r|sk to our tuturo out|ook. An oconom|c downturn |n any
part|cu|ar rog|on |n wh|ch wo do bus|noss or g|oba||y cou|d rosu|t |n roduct|ons |n advort|s|ng rovonuo, as our advort|sors roduco tho|r advort|s|ng budgots, and othor
advorso ottocts that cou|d harm our oporat|ng rosu|ts.
User growth and engagement depend upon e||ectIve InteroperatIon wIth operatIng systems, networks, devIces, web browsers and standards that we do not
control.
Wo mako our products and sorv|cos ava||ab|o across a var|oty ot oporat|ng systoms and through wobs|tos. Wo aro dopondont on tho |ntoroporab|||ty ot our
products and sorv|cos w|th popu|ar dov|cos, dosktop and mob||o oporat|ng systoms and wob browsors that wo do not contro|, such as Vac O3, W|ndows, Andro|d, |O3,
Chromo and ||rotox. Any changos |n such systoms, dov|cos or wob browsors that dogrado tho tunct|ona||ty ot our products and sorv|cos or g|vo protoront|a| troatmont to
compot|t|vo products or sorv|cos cou|d advorso|y attoct usago ot our products and sorv|cos. |urthor, |t tho numbor ot p|attorms tor wh|ch wo dovo|op our product oxpands,
|t w||| rosu|t |n an |ncroaso |n our oporat|ng oxponsos. ln ordor to do||vor h|gh qua||ty products and sorv|cos, |t |s |mportant that our products and sorv|cos work wo|| w|th
a rango ot oporat|ng systoms, notworks, dov|cos, wob browsors and standards that wo do not contro|. ln add|t|on, bocauso a major|ty ot our usors accoss our products
and sorv|cos through mob||o dov|cos, wo aro part|cu|ar|y dopondont on tho |ntoroporab|||ty ot our products and sorv|cos w|th mob||o dov|cos and oporat|ng systoms. Wo
may not bo succosstu| |n dovo|op|ng ro|at|onsh|ps w|th koy part|c|pants |n tho mob||o |ndustry or |n dovo|op|ng products or sorv|cos that oporato ottoct|vo|y w|th thoso
oporat|ng systoms, notworks, dov|cos, wob browsors and standards. ln tho ovont that |t |s d|tt|cu|t tor our usors to accoss and uso our products and sorv|cos,
part|cu|ar|y on tho|r mob||o dov|cos, our usor growth and ongagomont cou|d bo harmod, and our bus|noss and oporat|ng rosu|ts cou|d bo advorso|y attoctod.

21
1abIo ot Contonta
l| we |aIl to expand e||ectIvely In InternatIonal markets, our revenue and our busIness wIll be harmed.
Wo may not bo ab|o to monot|zo our products and sorv|cos |ntornat|ona||y as ottoct|vo|y as |n tho Un|tod 3tatos as a rosu|t ot compot|t|on, advort|sor domand,
d|ttoroncos |n tho d|g|ta| advort|s|ng markot and d|g|ta| advort|s|ng convont|ons, as wo|| as d|ttoroncos |n tho way that usors |n d|ttoront countr|os accoss or ut|||zo our
products and sorv|cos. 0|ttoroncos |n tho compot|t|vo |andscapo |n |ntornat|ona| markots may |mpact our ab|||ty to monot|zo our products and sorv|cos. |or oxamp|o, |n
3outh Koroa wo taco |ntonso compot|t|on trom a mossag|ng sorv|co ottorod by Kakao, wh|ch ottors somo ot tho samo commun|cat|on toaturos as 1w|ttor. 1ho ox|stonco
ot a wo||-ostab||shod compot|tor |n an |ntornat|ona| markot may advorso|y attoct our ab|||ty to |ncroaso our usor baso, attract advort|sors and monot|zo our products |n
such markot. Wo may a|so oxpor|onco d|ttoroncos |n advort|sor domand |n |ntornat|ona| markots. |or oxamp|o, dur|ng t|mos ot po||t|ca| uphoava|, advort|sors may
chooso not to advort|so on 1w|ttor. Corta|n |ntornat|ona| markots aro a|so not as tam|||ar w|th d|g|ta| advort|s|ng |n gonora|, or |n now torms ot d|g|ta| advort|s|ng such as
our lromotod lroducts. |urthor, wo taco cha||ongos |n prov|d|ng corta|n advort|s|ng products, toaturos or ana|yt|cs |n corta|n |ntornat|ona| markots, such as tho
Europoan Un|on, duo to govornmont rogu|at|on. Our products and sorv|cos may a|so bo usod d|ttoront|y abroad than |n tho Un|tod 3tatos. ln part|cu|ar, |n corta|n
|ntornat|ona| markots whoro lntornot accoss |s not as rap|d or ro||ab|o as |n tho Un|tod 3tatos, usors tond not to tako advantago ot corta|n toaturos ot our products and
sorv|cos, such as r|ch mod|a |nc|udod |n 1woots. Add|t|ona||y, |n corta|n omorg|ng markots, such as lnd|a, many usors accoss our products and sorv|cos through toaturo
phonos w|th ||m|tod tunct|ona||ty, rathor than through smartphonos, our wobs|to or dosktop app||cat|ons. 1h|s ||m|ts our ab|||ty to do||vor corta|n toaturos to thoso usors
and may ||m|t tho ab|||ty ot advort|sors to do||vor compo|||ng advort|somonts to usors |n thoso markots wh|ch may rosu|t |n roducod ad ongagomonts wh|ch wou|d
advorso|y attoct our bus|noss and oporat|ng rosu|ts.
lt our rovonuo trom our |ntornat|ona| oporat|ons, and part|cu|ar|y trom oporat|ons |n tho countr|os and rog|ons on wh|ch wo havo tocusod our spond|ng, doos not
oxcood tho oxponso ot ostab||sh|ng and ma|nta|n|ng thoso oporat|ons, our bus|noss and oporat|ng rosu|ts w||| suttor. ln add|t|on, our usor baso may oxpand moro rap|d|y
|n |ntornat|ona| rog|ons whoro wo aro |oss succosstu| |n monot|z|ng our products and sorv|cos. As our usor baso cont|nuos to oxpand |ntornat|ona||y, wo w||| nood to
|ncroaso rovonuo trom tho act|v|ty gonoratod by our |ntornat|ona| usors |n ordor to grow our bus|noss. |or oxamp|o, usors outs|do tho Un|tod 3tatos const|tutod 77% ot
our avorago VAUs |n tho throo months ondod 1uno 80, 2018, but our |ntornat|ona| rovonuo, as dotorm|nod basod on tho b||||ng |ocat|on ot our advort|sors, was on|y 2b%
ot our conso||datod rovonuo |n tho throo months ondod 1uno 80, 2018. Our |nab|||ty to succosstu||y oxpand |ntornat|ona||y cou|d advorso|y attoct our bus|noss, t|nanc|a|
cond|t|on and oporat|ng rosu|ts.
We have a lImIted operatIng hIstory In a new and unproven market |or our plat|orm, whIch makes It dI||Icult to evaluate our |uture prospects and may
Increase the rIsk that we wIll not be success|ul.
Wo havo dovo|opod a g|oba| p|attorm tor pub||c so|t-oxpross|on and convorsat|on |n roa| t|mo, and tho markot tor our products and sorv|cos |s ro|at|vo|y now and
may not dovo|op as oxpoctod, |t at a||. loop|o who aro not our usors may not undorstand tho va|uo ot our products and sorv|cos and now usors may |n|t|a||y t|nd our
product contus|ng. 1horo may bo a porcopt|on that our products and sorv|cos aro on|y usotu| to usors who twoot, or to |nt|uont|a| usors w|th |argo aud|oncos. Conv|nc|ng
potont|a| now usors ot tho va|uo ot our products and sorv|cos |s cr|t|ca| to |ncroas|ng our usor baso and to tho succoss ot our bus|noss.

22
1abIo ot Contonta
Wo havo a ||m|tod oporat|ng h|story, and on|y bogan to gonorato rovonuo |n 2000 and wo startod to so|| our lromotod lroducts |n 2010, wh|ch makos |t d|tt|cu|t
to ottoct|vo|y assoss our tuturo prospocts or torocast our tuturo rosu|ts. You shou|d cons|dor our bus|noss and prospocts |n ||ght ot tho r|sks and cha||ongos wo
oncountor or may oncountor |n th|s dovo|op|ng and rap|d|y ovo|v|ng markot. 1hoso r|sks and cha||ongos |nc|udo our ab|||ty to, among othor th|ngs:



|ncroaso our numbor ot usors and usor ongagomont,



succosstu||y oxpand our bus|noss, ospoc|a||y |ntornat|ona||y,



dovo|op a ro||ab|o, sca|ab|o, socuro, h|gh-portormanco tochno|ogy |ntrastructuro that can ott|c|ont|y hand|o |ncroasod usago g|oba||y,



conv|nco advort|sors ot tho bonot|ts ot our lromotod lroducts comparod to a|tornat|vo torms ot advort|s|ng,



dovo|op and dop|oy now toaturos, products and sorv|cos,




succosstu||y compoto w|th othor compan|os, somo ot wh|ch havo substant|a||y groator rosourcos and markot powor than us, that aro curront|y |n, or may |n
tho tuturo ontor, our |ndustry, or dup||cato tho toaturos ot our products and sorv|cos,



attract, rota|n and mot|vato ta|ontod omp|oyoos, part|cu|ar|y ong|noors, dos|gnors and product managors,




procoss, storo, protoct and uso porsona| data |n comp||anco w|th govornmonta| rogu|at|ons, contractua| ob||gat|ons and othor ob||gat|ons ro|atod to pr|vacy
and socur|ty,



cont|nuo to oarn and prosorvo our usors' trust, |nc|ud|ng w|th rospoct to tho|r pr|vato porsona| |ntormat|on, and



dotond ourso|vos aga|nst ||t|gat|on, rogu|atory, |nto||octua| proporty, pr|vacy or othor c|a|ms.
lt wo ta|| to oducato potont|a| usors and potont|a| advort|sors about tho va|uo ot our products and sorv|cos, |t tho markot tor our p|attorm doos not dovo|op as wo
oxpoct or |t wo ta|| to addross tho noods ot th|s markot, our bus|noss w||| bo harmod. Wo may not bo ab|o to succosstu||y addross thoso r|sks and cha||ongos or othors.
|a||uro to adoquato|y addross thoso r|sks and cha||ongos cou|d harm our bus|noss and causo our oporat|ng rosu|ts to suttor.
We have Incurred sIgnI|Icant operatIng losses In the past, and we may not be able to achIeve or subsequently maIntaIn pro|ItabIlIty.
3|nco our |ncopt|on, wo havo |ncurrod s|gn|t|cant oporat|ng |ossos, and, as ot 1uno 80, 2018, wo had an accumu|atod dot|c|t ot $418.0 m||||on. A|though our
rovonuo has grown rap|d|y, |ncroas|ng trom $28.8 m||||on |n 2010 to $810.0 m||||on |n 2012, wo oxpoct that our rovonuo growth rato w||| s|ow |n tho tuturo as a rosu|t ot a
var|oty ot tactors, |nc|ud|ng tho gradua| s|ow down |n tho growth rato ot our usor baso. Wo bo||ovo that our tuturo rovonuo growth w||| dopond on, among othor tactors, our
ab|||ty to attract now usors, |ncroaso usor ongagomont and ad ongagomont, |ncroaso our brand awaronoss, compoto ottoct|vo|y, max|m|zo our sa|os ottorts,
domonstrato a pos|t|vo roturn on |nvostmont tor advort|sors, succosstu||y dovo|op now products and sorv|cos and oxpand |ntornat|ona||y. Accord|ng|y, you shou|d not ro|y
on tho rovonuo growth ot any pr|or quartor|y or annua| por|od as an |nd|cat|on ot our tuturo portormanco. Wo a|so oxpoct our costs to |ncroaso |n tuturo por|ods as wo
cont|nuo to oxpond substant|a| t|nanc|a| rosourcos on:



our tochno|ogy |ntrastructuro,



rosoarch and dovo|opmont tor our products and sorv|cos,



sa|os and markot|ng,

28
1abIo ot Contonta


domost|c and |ntornat|ona| oxpans|on ottorts,



attract|ng and rota|n|ng ta|ontod omp|oyoos,



stratog|c opportun|t|os, |nc|ud|ng commorc|a| ro|at|onsh|ps and acqu|s|t|ons, and



gonora| adm|n|strat|on, |nc|ud|ng porsonno| costs and |oga| and account|ng oxponsos ro|atod to bo|ng a pub||c company.
1hoso |nvostmonts may not rosu|t |n |ncroasod rovonuo or growth |n our bus|noss.
ln add|t|on, wo havo grantod stock opt|ons and l3Us to our omp|oyoos. l3Us grantod to domost|c omp|oyoos botoro |obruary 2018 and a|| l3Us grantod to
|ntornat|ona| omp|oyoos, or tho lro-2018 l3Us, vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a portormanco cond|t|on. 1ho sorv|co cond|t|on tor a major|ty
ot tho lro-2018 l3Us |s sat|st|od ovor a por|od ot tour yoars. 1ho portormanco cond|t|on w||| bo sat|st|od on tho oar||or ot (|) tho dato that |s tho oar||or ot (x) s|x months
attor tho ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|s ottor|ng (wh|ch wo may o|oct to acco|orato to |obruary
1bth), and (||) tho dato ot a chango |n contro|. As ot 1uno 80, 2018, no stock-basod componsat|on oxponso had boon rocogn|zod tor tho lro-2018 l3Us bocauso a
qua||ty|ng ovont as doscr|bod abovo was not probab|o. ln tho quartor |n wh|ch th|s ottor|ng |s comp|otod, wo w||| bog|n rocord|ng stock-basod componsat|on oxponso
basod on tho grant-dato ta|r va|uo ot tho lro-2018 l3Us us|ng tho acco|oratod attr|but|on mothod, not ot ost|matod torto|turos. lt th|s ottor|ng had boon comp|otod on
1uno 80, 2018, wo wou|d havo rocordod $820.0 m||||on ot cumu|at|vo stock-basod componsat|on oxponso ro|atod to tho lro-2018 l3Us on that dato, and an add|t|ona|
$284.2 m||||on ot unrocogn|zod stock-basod componsat|on oxponso ro|atod to tho lro-2018 l3Us, not ot ost|matod torto|turos, wou|d bo rocogn|zod ovor a wo|ghtod-
avorago por|od ot approx|mato|y throo yoars. ln add|t|on to stock-basod componsat|on oxponso assoc|atod w|th tho lro-2018 l3Us, as ot 1uno 80, 2018, wo had
unrocogn|zod stock-basod componsat|on oxponso ot approx|mato|y $200.7 m||||on ro|atod to othor outstand|ng oqu|ty awards, attor g|v|ng ottoct to ost|matod torto|turos,
wh|ch wo oxpoct to rocogn|zo ovor a wo|ghtod-avorago por|od ot approx|mato|y tour yoars. |urthor, wo mado grants ot oqu|ty awards attor 1uno 80, 2018, and wo havo
unrocogn|zod stock-basod componsat|on oxponso ot $4b2.0 m||||on ro|atod to such oqu|ty awards, attor g|v|ng ottoct to ost|matod torto|turos, wh|ch wo oxpoct to
rocogn|zo ovor a wo|ghtod-avorago por|od ot approx|mato|y tour yoars. |o||ow|ng tho comp|ot|on ot th|s ottor|ng, tho stock-basod componsat|on oxponso ro|atod to lro-
2018 l3Us and othor outstand|ng oqu|ty awards w||| havo a s|gn|t|cant nogat|vo |mpact on our ab|||ty to ach|ovo prot|tab|||ty on a GAAl bas|s |n 2018 and 2014.
lt wo aro unab|o to gonorato adoquato rovonuo growth and to manago our oxponsos, wo may cont|nuo to |ncur s|gn|t|cant |ossos |n tho tuturo and may not bo
ab|o to ach|ovo or ma|nta|n prot|tab|||ty.
Our busIness depends on contInued and unImpeded access to our products and servIces on the lnternet by our users and advertIsers. l| we or our users
experIence dIsruptIons In lnternet servIce or I| lnternet servIce provIders are able to block, degrade or charge |or access to our products and servIces, we
could Incur addItIonal expenses and the loss o| users and advertIsers.
Wo dopond on tho ab|||ty ot our usors and advort|sors to accoss tho lntornot. Curront|y, th|s accoss |s prov|dod by compan|os that havo s|gn|t|cant markot
powor |n tho broadband and lntornot accoss markotp|aco, |nc|ud|ng |ncumbont to|ophono compan|os, cab|o compan|os, mob||o commun|cat|ons compan|os,
govornmont-ownod sorv|co prov|dors, dov|co manutacturors and oporat|ng systom prov|dors, any ot whom cou|d tako act|ons that dogrado, d|srupt or |ncroaso tho cost ot
usor accoss to our products or sorv|cos, wh|ch wou|d, |n turn, nogat|vo|y |mpact our bus|noss. |or oxamp|o, accoss to 1w|ttor |s b|ockod |n Ch|na. 1ho adopt|on ot any
|aws or rogu|at|ons that advorso|y

24
1abIo ot Contonta
attoct tho growth, popu|ar|ty or uso ot tho lntornot, |nc|ud|ng |aws or pract|cos ||m|t|ng lntornot noutra||ty, cou|d docroaso tho domand tor, or tho usago ot, our products
and sorv|cos, |ncroaso our cost ot do|ng bus|noss and advorso|y attoct our oporat|ng rosu|ts. Wo a|so ro|y on othor compan|os to ma|nta|n ro||ab|o notwork systoms that
prov|do adoquato spood, data capac|ty and socur|ty to us and our usors. As tho lntornot cont|nuos to oxpor|onco growth |n tho numbor ot usors, troquoncy ot uso and
amount ot data transm|ttod, tho lntornot |ntrastructuro that wo and our usors ro|y on may bo unab|o to support tho domands p|acod upon |t. 1ho ta||uro ot tho lntornot
|ntrastructuro that wo or our usors ro|y on, ovon tor a short por|od ot t|mo, cou|d undorm|no our oporat|ons and harm our oporat|ng rosu|ts.
Our new products, servIces and InItIatIves and changes to exIstIng products, servIces and InItIatIves could |aIl to attract users and advertIsers or generate
revenue.
Our ab|||ty to |ncroaso tho s|zo and ongagomont ot our usor baso, attract advort|sors and gonorato rovonuo w||| dopond |n part on our ab|||ty to croato succosstu|
now products and sorv|cos, both |ndopondont|y and |n conjunct|on w|th th|rd part|os. Wo may |ntroduco s|gn|t|cant changos to our ox|st|ng products and sorv|cos or
dovo|op and |ntroduco now and unprovon products and sorv|cos, |nc|ud|ng tochno|og|os w|th wh|ch wo havo ||tt|o or no pr|or dovo|opmont or oporat|ng oxpor|onco. |or
oxamp|o, |n 2018, wo |ntroducod v|no, a mob||o app||cat|on that onab|os usors to croato and d|str|buto v|doos that aro up to s|x soconds |n |ongth, and #Vus|c, a mob||o
app||cat|on that ho|ps usors d|scovor now mus|c and art|sts basod on 1w|ttor data. lt now or onhancod products or sorv|cos ta|| to ongago usors and advort|sors, wo may
ta|| to attract or rota|n usors or to gonorato sutt|c|ont rovonuo or oporat|ng prot|t to just|ty our |nvostmonts, and our bus|noss and oporat|ng rosu|ts cou|d bo advorso|y
attoctod. ln add|t|on, wo havo |aunchod and oxpoct to cont|nuo to |aunch stratog|c |n|t|at|vos, such as tho l|o|son 1w|ttor 1v lat|ng, that do not d|roct|y gonorato
rovonuo but wh|ch wo bo||ovo w||| onhanco our attract|vonoss to usors and advort|sors. ln tho tuturo, wo may |nvost |n now products, sorv|cos and |n|t|at|vos to gonorato
rovonuo, but thoro |s no guarantoo thoso approachos w||| bo succosstu|. Wo may not bo succosstu| |n tuturo ottorts to gonorato rovonuo trom our now products or
sorv|cos. lt our stratog|c |n|t|at|vos do not onhanco our ab|||ty to monot|zo our ox|st|ng products and sorv|cos or onab|o us to dovo|op now approachos to monot|zat|on,
wo may not bo ab|o to ma|nta|n or grow our rovonuo or rocovor any assoc|atod dovo|opmont costs and our oporat|ng rosu|ts cou|d bo advorso|y attoctod.
8pam could dImInIsh the user experIence on our plat|orm, whIch could damage our reputatIon and deter our current and potentIal users |rom usIng our
products and servIces.
3pam' on 1w|ttor rotors to a rango ot abus|vo act|v|t|os that aro proh|b|tod by our torms ot sorv|co and |s gonora||y dot|nod as unso||c|tod, ropoatod act|ons that
nogat|vo|y |mpact othor usors w|th tho gonora| goa| ot draw|ng usor attont|on to a g|von account, s|to, product or |doa. 1h|s |nc|udos post|ng |argo numbors ot unso||c|tod
mont|ons ot a usor, dup||cato 1woots, m|s|oad|ng ||nks (o.g., to ma|waro or c||ck-jack|ng pagos) or othor ta|so or m|s|oad|ng contont, and aggross|vo|y to||ow|ng and un-
to||ow|ng accounts, add|ng usors to ||sts, sond|ng |nv|tat|ons, rotwoot|ng and tavor|t|ng 1woots to |nappropr|ato|y attract attont|on. Our torms ot sorv|co a|so proh|b|t tho
croat|on ot sor|a| or bu|k accounts, both manua||y or us|ng automat|on, tor d|srupt|vo or abus|vo purposos, such as to twoot spam or to art|t|c|a||y |nt|ato tho popu|ar|ty ot
usors sook|ng to promoto thomso|vos on 1w|ttor. A|though wo cont|nuo to |nvost rosourcos to roduco spam on 1w|ttor, wo oxpoct spammors w||| cont|nuo to sook ways
to act |nappropr|ato|y on our p|attorm. ln add|t|on, wo oxpoct that |ncroasos |n tho numbor ot usors on our p|attorm w||| rosu|t |n |ncroasod ottorts by spammors to
m|suso our p|attorm. Wo cont|nuous|y combat spam, |nc|ud|ng by suspond|ng or torm|nat|ng accounts wo bo||ovo to bo spammors and |aunch|ng a|gor|thm|c changos
tocusod on curb|ng abus|vo act|v|t|os. Our act|ons to combat spam roqu|ro tho d|vors|on ot s|gn|t|cant t|mo and tocus ot our ong|noor|ng toam trom |mprov|ng our
products and sorv|cos. lt spam |ncroasos on 1w|ttor, th|s cou|d hurt our roputat|on tor do||vor|ng ro|ovant contont or roduco usor growth and usor ongagomont and rosu|t
|n cont|nu|ng oporat|ona| cost to us.

2b
1abIo ot Contonta
l| we |aIl to e||ectIvely manage our growth, our busIness and operatIng results could be harmed.
Wo cont|nuo to oxpor|onco rap|d growth |n our hoadcount and oporat|ons, wh|ch w||| cont|nuo to p|aco s|gn|t|cant domands on our managomont, oporat|ona| and
t|nanc|a| |ntrastructuro. As ot 1uno 80, 2018, wo had approx|mato|y 2,000 omp|oyoos, an |ncroaso ot ovor 1,800 omp|oyoos s|nco 1anuary 1, 2010. Wo |ntond to
cont|nuo to mako substant|a| |nvostmonts to oxpand our oporat|ons, rosoarch and dovo|opmont, sa|os and markot|ng and gonora| and adm|n|strat|vo organ|zat|ons, as
wo|| as our |ntornat|ona| oporat|ons. Wo taco s|gn|t|cant compot|t|on tor omp|oyoos, part|cu|ar|y ong|noors, dos|gnors and product managors, trom othor lntornot and
h|gh-growth compan|os, wh|ch |nc|udo both pub||c|y-tradod and pr|vato|y-ho|d compan|os, and wo may not bo ab|o to h|ro now omp|oyoos qu|ck|y onough to moot our
noods. 1o attract h|gh|y sk|||od porsonno|, wo havo had to ottor, and bo||ovo wo w||| nood to cont|nuo to ottor, h|gh|y compot|t|vo componsat|on packagos. ln add|t|on, as
wo havo grown, wo havo s|gn|t|cant|y oxpandod our oporat|ng |oaso comm|tmonts. As wo cont|nuo to grow, wo aro subjoct to tho r|sks ot ovor-h|r|ng, ovor-componsat|ng
our omp|oyoos and ovor-oxpand|ng our oporat|ng |ntrastructuro, and to tho cha||ongos ot |ntograt|ng, dovo|op|ng and mot|vat|ng a rap|d|y grow|ng omp|oyoo baso |n
var|ous countr|os around tho wor|d. ln add|t|on, wo may not bo ab|o to |nnovato or oxocuto as qu|ck|y as a sma||or, moro ott|c|ont organ|zat|on. lt wo ta|| to ottoct|vo|y
manago our h|r|ng noods and succosstu||y |ntograto our now h|ros, our ott|c|oncy and ab|||ty to moot our torocasts and our omp|oyoo mora|o, product|v|ty and rotont|on
cou|d suttor, and our bus|noss and oporat|ng rosu|ts cou|d bo advorso|y attoctod.
lrov|d|ng our products and sorv|cos to our usors |s cost|y and wo oxpoct our oxponsos to cont|nuo to |ncroaso |n tho tuturo as wo broadon our usor baso and
|ncroaso usor ongagomont, as usors |ncroaso tho amount ot contont thoy contr|buto, and as wo dovo|op and |mp|omont now toaturos, products and sorv|cos that roqu|ro
moro |ntrastructuro, such as our mob||o v|doo product, v|no. ln add|t|on, our oporat|ng oxponsos, such as our rosoarch and dovo|opmont oxponsos and sa|os and
markot|ng oxponsos, havo grown rap|d|y as wo havo oxpandod our bus|noss. ||stor|ca||y, our costs havo |ncroasod oach yoar duo to thoso tactors and wo oxpoct to
cont|nuo to |ncur |ncroas|ng costs to support our ant|c|patod tuturo growth. Wo oxpoct to cont|nuo to |nvost |n our |ntrastructuro |n ordor to onab|o us to prov|do our
products and sorv|cos rap|d|y and ro||ab|y to usors around tho wor|d, |nc|ud|ng |n countr|os whoro wo do not oxpoct s|gn|t|cant noar-torm monot|zat|on. Cont|nuod growth
cou|d a|so stra|n our ab|||ty to ma|nta|n ro||ab|o sorv|co |ovo|s tor our usors and advort|sors, dovo|op and |mprovo our oporat|ona|, t|nanc|a|, |oga| and managomont
contro|s, and onhanco our roport|ng systoms and procoduros. As a pub||c company wo w||| |ncur s|gn|t|cant |oga|, account|ng and othor oxponsos that wo d|d not |ncur
as a pr|vato company. Our oxponsos may grow tastor than our rovonuo, and our oxponsos may bo groator than wo ant|c|pato. Vanag|ng our growth w||| roqu|ro
s|gn|t|cant oxpond|turos and a||ocat|on ot va|uab|o managomont rosourcos. lt wo ta|| to ach|ovo tho nocossary |ovo| ot ott|c|oncy |n our organ|zat|on as |t grows, our
bus|noss, oporat|ng rosu|ts and t|nanc|a| cond|t|on wou|d bo harmod.
Our busIness and operatIng results may be harmed by a dIsruptIon In our servIce, or by our |aIlure to tImely and e||ectIvely scale and adapt our exIstIng
technology and In|rastructure.
Ono ot tho roasons poop|o como to 1w|ttor |s tor roa|-t|mo |ntormat|on. Wo havo oxpor|oncod, and may |n tho tuturo oxpor|onco, sorv|co d|srupt|ons, outagos and
othor portormanco prob|oms duo to a var|oty ot tactors, |nc|ud|ng |ntrastructuro changos, human or sottwaro orrors, hardwaro ta||uro, capac|ty constra|nts duo to an
ovorwho|m|ng numbor ot poop|o accoss|ng our products and sorv|cos s|mu|tanoous|y, computor v|rusos and don|a| ot sorv|co or traud or socur|ty attacks. A|though wo
aro |nvost|ng s|gn|t|cant|y to |mprovo tho capac|ty, capab|||ty and ro||ab|||ty ot our |ntrastructuro, wo aro not curront|y sorv|ng tratt|c oqua||y through our co-|ocatod data
contors that support our p|attorm. Accord|ng|y, |n tho ovont ot a s|gn|t|cant |ssuo at tho data contor support|ng most ot our notwork tratt|c,

20
1abIo ot Contonta
somo ot our products and sorv|cos may bocomo |naccoss|b|o to tho pub||c or tho pub||c may oxpor|onco d|tt|cu|t|os accoss|ng our products and sorv|cos. |or oxamp|o,
|n 1u|y 2012, duo to tho ta||uro ot two para||o| systoms at noar|y tho samo t|mo |n ono ot our data contors, 1w|ttor bocamo |naccoss|b|o tor approx|mato|y two hours. Any
d|srupt|on or ta||uro |n our |ntrastructuro cou|d h|ndor our ab|||ty to hand|o ox|st|ng or |ncroasod tratt|c on our p|attorm, wh|ch cou|d s|gn|t|cant|y harm our bus|noss.
As tho numbor ot our usors |ncroasos and our usors gonorato moro contont, |nc|ud|ng photos and v|doos hostod by 1w|ttor, wo may bo roqu|rod to oxpand and
adapt our tochno|ogy and |ntrastructuro to cont|nuo to ro||ab|y storo, sorvo and ana|yzo th|s contont. lt may bocomo |ncroas|ng|y d|tt|cu|t to ma|nta|n and |mprovo tho
portormanco ot our products and sorv|cos, ospoc|a||y dur|ng poak usago t|mos, as our products and sorv|cos bocomo moro comp|ox and our usor tratt|c |ncroasos. ln
add|t|on, bocauso wo |oaso our data contor tac|||t|os, wo cannot bo assurod that wo w||| bo ab|o to oxpand our data contor |ntrastructuro to moot usor domand |n a
t|mo|y mannor, or on tavorab|o oconom|c torms. lt our usors aro unab|o to accoss 1w|ttor or wo aro not ab|o to mako |ntormat|on ava||ab|o rap|d|y on 1w|ttor, usors may
sook othor channo|s to obta|n tho |ntormat|on, and may not roturn to 1w|ttor or uso 1w|ttor as otton |n tho tuturo, or at a||. 1h|s wou|d nogat|vo|y |mpact our ab|||ty to
attract usors and advort|sors and |ncroaso ongagomont ot our usors. Wo oxpoct to cont|nuo to mako s|gn|t|cant |nvostmonts to ma|nta|n and |mprovo tho capac|ty,
capab|||ty and ro||ab|||ty ot our |ntrastructuro. 1o tho oxtont that wo do not ottoct|vo|y addross capac|ty constra|nts, upgrado our systoms as noodod and cont|nua||y
dovo|op our tochno|ogy and |ntrastructuro to accommodato actua| and ant|c|patod changos |n tochno|ogy, our bus|noss and oporat|ng rosu|ts may bo harmod.
ActIon by governments to restrIct access to our products and servIces or censor 1wItter content could harm our busIness and operatIng results.
Govornmonts havo sought, and may |n tho tuturo sook, to consor contont ava||ab|o through our products and sorv|cos, rostr|ct accoss to our products and
sorv|cos trom tho|r country ont|ro|y or |mposo othor rostr|ct|ons that may attoct tho accoss|b|||ty ot our products and sorv|cos tor an oxtondod por|od ot t|mo or
|ndot|n|to|y. |or oxamp|o, domost|c lntornot sorv|co prov|dors |n Ch|na havo b|ockod accoss to 1w|ttor, and othor countr|os, |nc|ud|ng lran, l|bya, lak|stan and 3yr|a,
havo |ntorm|ttont|y rostr|ctod accoss to 1w|ttor, and wo bo||ovo that accoss to 1w|ttor has boon b|ockod |n thoso countr|os pr|mar||y tor po||t|ca| roasons. ln add|t|on,
govornmonts |n othor countr|os may sook to rostr|ct accoss to our products and sorv|cos |t thoy cons|dor us to bo |n v|o|at|on ot tho|r |aws. ln tho ovont that accoss to
our products and sorv|cos |s rostr|ctod, |n who|o or |n part, |n ono or moro countr|os or our compot|tors aro ab|o to succosstu||y ponotrato goograph|c markots that wo
cannot accoss, our ab|||ty to rota|n or |ncroaso our usor baso and usor ongagomont may bo advorso|y attoctod, and our oporat|ng rosu|ts may bo harmod.
l| we are unable to maIntaIn and promote our brand, our busIness and operatIng results may be harmed.
Wo bo||ovo that ma|nta|n|ng and promot|ng our brand |s cr|t|ca| to oxpand|ng our baso ot usors and advort|sors. Va|nta|n|ng and promot|ng our brand w||| dopond
|argo|y on our ab|||ty to cont|nuo to prov|do usotu|, ro||ab|o and |nnovat|vo products and sorv|cos, wh|ch wo may not do succosstu||y. Wo may |ntroduco now toaturos,
products, sorv|cos or torms ot sorv|co that usors, p|attorm partnors or advort|sors do not ||ko, wh|ch may nogat|vo|y attoct our brand. Add|t|ona||y, tho act|ons ot p|attorm
partnors may attoct our brand |t usors do not havo a pos|t|vo oxpor|onco us|ng th|rd-party app||cat|ons or wobs|tos |ntogratod w|th 1w|ttor or that mako uso ot 1w|ttor
contont. Our brand may a|so bo nogat|vo|y attoctod by tho act|ons ot usors that aro host||o or |nappropr|ato to othor poop|o, by usors |mporsonat|ng othor poop|o, by
usors |dont|t|od as spam, by usors |ntroduc|ng oxcoss|vo amounts ot spam on our p|attorm or by th|rd part|os obta|n|ng contro| ovor usors' accounts. |or oxamp|o, |n
Apr|| 2018, attackors obta|nod tho crodont|a|s to tho 1w|ttor account ot tho Assoc|atod lross nows sorv|co

27
1abIo ot Contonta
through a ph|sh|ng' attack targot|ng Assoc|atod lross omp|oyoos. 1ho attackors postod an orronoous 1woot trom tho Assoc|atod lross account roport|ng that thoro
had boon oxp|os|ons at tho Wh|to |ouso, tr|ggor|ng a stock markot doc||no, and tocus|ng mod|a attont|on on our brand and socur|ty ottorts. Va|nta|n|ng and onhanc|ng
our brand may roqu|ro us to mako substant|a| |nvostmonts and thoso |nvostmonts may not ach|ovo tho dos|rod goa|s. lt wo ta|| to succosstu||y promoto and ma|nta|n our
brand or |t wo |ncur oxcoss|vo oxponsos |n th|s ottort, our bus|noss and oporat|ng rosu|ts cou|d bo advorso|y attoctod.
NegatIve publIcIty could adversely a||ect our busIness and operatIng results.
Wo roco|vo a h|gh dogroo ot mod|a covorago around tho wor|d. logat|vo pub||c|ty about our company, |nc|ud|ng about our product qua||ty and ro||ab|||ty, changos
to our products and sorv|cos, pr|vacy and socur|ty pract|cos, ||t|gat|on, rogu|atory act|v|ty, tho act|ons ot our usors or usor oxpor|onco w|th our products and sorv|cos,
ovon |t |naccurato, cou|d advorso|y attoct our roputat|on and tho cont|donco |n and tho uso ot our products and sorv|cos. |or oxamp|o, sorv|co outagos on 1w|ttor
typ|ca||y rosu|t |n w|dosproad mod|a roports. 3uch nogat|vo pub||c|ty cou|d a|so havo an advorso ottoct on tho s|zo, ongagomont and |oya|ty ot our usor baso and rosu|t
|n docroasod rovonuo, wh|ch cou|d advorso|y attoct our bus|noss and oporat|ng rosu|ts.
Our |uture per|ormance depends In part on support |rom plat|orm partners and data partners.
Wo bo||ovo usor ongagomont w|th our products and sorv|cos doponds |n part on tho ava||ab|||ty ot app||cat|ons and contont gonoratod by p|attorm partnors.
3og|nn|ng |n 2012, wo |aunchod 1w|ttor Cards, wh|ch a||ow p|attorm partnors to onsuro that whonovor thoy or any usor twoots trom tho|r wobs|tos or app||cat|ons, tho
1woot w||| automat|ca||y |nc|udo r|ch contont ||ko a photo, a v|doo, a sound c||p, an art|c|o summary or |ntormat|on about a product, and mako |t |nstant|y accoss|b|o to
any othor usor on 1w|ttor. 1w|ttor Cards a||ow p|attorm partnors to croato ||ghtwo|ght |ntoract|vo app||cat|ons to promoto tho|r contont or tho|r products. 1ho ava||ab|||ty
and dovo|opmont ot thoso app||cat|ons and contont doponds on p|attorm partnors' porcopt|ons and ana|ys|s ot tho ro|at|vo bonot|ts ot dovo|op|ng app||cat|ons and contont
tor our products and sorv|cos. lt p|attorm partnors tocus tho|r ottorts on othor p|attorms, tho ava||ab|||ty and qua||ty ot app||cat|ons and contont tor our products and
sorv|cos may suttor. 1horo |s no assuranco that p|attorm partnors w||| cont|nuo to dovo|op and ma|nta|n app||cat|ons and contont tor our products and sorv|cos. lt p|attorm
partnors coaso to dovo|op and ma|nta|n app||cat|ons and contont tor our products and sorv|cos, usor ongagomont may doc||no. ln add|t|on, wo gonorato rovonuo trom
||cons|ng our h|stor|ca| and roa|-t|mo data to th|rd part|os. lt any ot thoso ro|at|onsh|ps aro torm|natod or not ronowod, or |t wo aro unab|o to ontor |nto s|m||ar
ro|at|onsh|ps |n tho tuturo, our oporat|ng rosu|ts cou|d bo advorso|y attoctod.
We |ocus on product InnovatIon and user engagement rather than short-term operatIng results.
Wo oncourago omp|oyoos to qu|ck|y dovo|op and ho|p us |aunch now and |nnovat|vo toaturos. Wo tocus on |mprov|ng tho usor oxpor|onco tor our products and
sorv|cos and on dovo|op|ng now and |mprovod products and sorv|cos tor tho advort|sors on our p|attorm. Wo pr|or|t|zo |nnovat|on and tho oxpor|onco tor usors and
advort|sors on our p|attorm ovor short-torm oporat|ng rosu|ts. Wo troquont|y mako product and sorv|co doc|s|ons that may roduco our short-torm oporat|ng rosu|ts |t wo
bo||ovo that tho doc|s|ons aro cons|stont w|th our goa|s to |mprovo tho usor oxpor|onco and portormanco tor advort|sors, wh|ch wo bo||ovo w||| |mprovo our oporat|ng
rosu|ts ovor tho |ong torm. 1hoso doc|s|ons may not bo cons|stont w|th tho short-torm oxpoctat|ons ot |nvostors and may not produco tho |ong-torm bonot|ts that wo
oxpoct, |n wh|ch caso our usor growth and usor ongagomont, our ro|at|onsh|ps w|th advort|sors and our bus|noss and oporat|ng rosu|ts cou|d bo harmod. ln add|t|on, our
tocus on tho usor oxpor|onco may nogat|vo|y |mpact our ro|at|onsh|ps w|th our ox|st|ng or prospoct|vo advort|sors. 1h|s cou|d rosu|t |n a |oss ot advort|sors, wh|ch cou|d
harm our rovonuo and oporat|ng rosu|ts.

28
1abIo ot Contonta
Our InternatIonal operatIons are subject to Increased challenges and rIsks.
Wo havo ott|cos around tho wor|d and our products and sorv|cos aro ava||ab|o |n mu|t|p|o |anguagos. Wo oxpoct to cont|nuo to oxpand our |ntornat|ona|
oporat|ons |n tho tuturo by opon|ng ott|cos |n now jur|sd|ct|ons and oxpand|ng our ottor|ngs |n now |anguagos. |owovor, wo havo ||m|tod oporat|ng h|story outs|do tho
Un|tod 3tatos, and our ab|||ty to manago our bus|noss and conduct our oporat|ons |ntornat|ona||y roqu|ros cons|dorab|o managomont attont|on and rosourcos and |s
subjoct to tho part|cu|ar cha||ongos ot support|ng a rap|d|y grow|ng bus|noss |n an onv|ronmont ot mu|t|p|o |anguagos, cu|turos, customs, |oga| and rogu|atory systoms,
a|tornat|vo d|sputo systoms and commorc|a| markots. lntornat|ona| oxpans|on has roqu|rod and w||| cont|nuo to roqu|ro us to |nvost s|gn|t|cant tunds and othor
rosourcos. Oporat|ng |ntornat|ona||y subjocts us to now r|sks and may |ncroaso r|sks that wo curront|y taco, |nc|ud|ng r|sks assoc|atod w|th:



rocru|t|ng and rota|n|ng ta|ontod and capab|o omp|oyoos |n toro|gn countr|os and ma|nta|n|ng our company cu|turo across a|| ot our ott|cos,




prov|d|ng our products and sorv|cos and oporat|ng across a s|gn|t|cant d|stanco, |n d|ttoront |anguagos and among d|ttoront cu|turos, |nc|ud|ng tho potont|a|
nood to mod|ty our products, sorv|cos, contont and toaturos to onsuro that thoy aro cu|tura||y ro|ovant |n d|ttoront countr|os,




|ncroasod compot|t|on trom |oca| wobs|tos, mob||o app||cat|ons and sorv|cos that prov|do roa|-t|mo commun|cat|ons, such as 3|na Wo|bo |n Ch|na, lllE |n
1apan and Kakao |n 3outh Koroa, wh|ch havo oxpandod and may cont|nuo to oxpand tho|r goograph|c tootpr|nt,



d|ttor|ng and potont|a||y |owor |ovo|s ot usor growth, usor ongagomont and ad ongagomont |n now and omorg|ng goograph|os,



d|ttoront |ovo|s ot advort|sor domand,



groator d|tt|cu|ty |n monot|z|ng our products and sorv|cos,




comp||anco w|th app||cab|o toro|gn |aws and rogu|at|ons, |nc|ud|ng |aws and rogu|at|ons w|th rospoct to pr|vacy, consumor protoct|on, spam and contont, and
tho r|sk ot pona|t|os to our usors and |nd|v|dua| mombors ot managomont |t our pract|cos aro doomod to bo out ot comp||anco,



|ongor paymont cyc|os |n somo countr|os,



crod|t r|sk and h|ghor |ovo|s ot paymont traud,



oporat|ng |n jur|sd|ct|ons that do not protoct |nto||octua| proporty r|ghts to tho samo oxtont as tho Un|tod 3tatos,




comp||anco w|th ant|-br|bory |aws |nc|ud|ng, w|thout ||m|tat|on, comp||anco w|th tho |oro|gn Corrupt lract|cos Act and tho U.K. 3r|bory Act, |nc|ud|ng by our
bus|noss partnors,



curroncy oxchango rato t|uctuat|ons,




toro|gn oxchango contro|s that m|ght roqu|ro s|gn|t|cant |oad t|mo |n sott|ng up oporat|ons |n corta|n goograph|c torr|tor|os and m|ght provont us trom
ropatr|at|ng cash oarnod outs|do tho Un|tod 3tatos,



po||t|ca| and oconom|c |nstab|||ty |n somo countr|os,




doub|o taxat|on ot our |ntornat|ona| oarn|ngs and potont|a||y advorso tax consoquoncos duo to changos |n tho tax |aws ot tho Un|tod 3tatos or tho toro|gn
jur|sd|ct|ons |n wh|ch wo oporato, and



h|ghor costs ot do|ng bus|noss |ntornat|ona||y, |nc|ud|ng |ncroasod account|ng, travo|, |ntrastructuro and |oga| comp||anco costs.
lt wo aro unab|o to manago tho comp|ox|ty ot our g|oba| oporat|ons succosstu||y, our bus|noss, t|nanc|a| cond|t|on and oporat|ng rosu|ts cou|d bo advorso|y
attoctod.

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1abIo ot Contonta
Our products and servIces may contaIn undetected so|tware errors, whIch could harm our busIness and operatIng results.
Our products and sorv|cos |ncorporato comp|ox sottwaro and wo oncourago omp|oyoos to qu|ck|y dovo|op and ho|p us |aunch now and |nnovat|vo toaturos. Our
sottwaro has conta|nod, and may now or |n tho tuturo conta|n, orrors, bugs or vu|norab|||t|os. |or oxamp|o, wo oxpor|oncod a sorv|co outago |n 1uno 2012 dur|ng wh|ch
1w|ttor sorv|co was |naccoss|b|o tor approx|mato|y two hours as a rosu|t ot a cascad|ng sottwaro bug |n ono ot our |ntrastructuro compononts. 3omo orrors |n our
sottwaro codo may on|y bo d|scovorod attor tho product or sorv|co has boon ro|oasod. Any orrors, bugs or vu|norab|||t|os d|scovorod |n our codo attor ro|oaso cou|d rosu|t
|n damago to our roputat|on, |oss ot usors, |oss ot p|attorm partnors, |oss ot advort|sors or advort|s|ng rovonuo or ||ab|||ty tor damagos, any ot wh|ch cou|d advorso|y
attoct our bus|noss and oporat|ng rosu|ts.
Our busIness Is subject to complex and evolvIng U.8. and |oreIgn laws and regulatIons. 1hese laws and regulatIons are subject to change and uncertaIn
InterpretatIon, and could result In claIms, changes to our busIness practIces, monetary penaltIes, Increased cost o| operatIons or declInes In user growth,
user engagement or ad engagement, or otherwIse harm our busIness.
Wo aro subjoct to a var|oty ot |aws and rogu|at|ons |n tho Un|tod 3tatos and abroad that |nvo|vo mattors contra| to our bus|noss, |nc|ud|ng pr|vacy, r|ghts ot
pub||c|ty, data protoct|on, contont rogu|at|on, |nto||octua| proporty, compot|t|on, protoct|on ot m|nors, consumor protoct|on and taxat|on. Vany ot thoso |aws and
rogu|at|ons aro st||| ovo|v|ng and bo|ng tostod |n courts and cou|d bo |ntorprotod or app||od |n ways that cou|d harm our bus|noss, part|cu|ar|y |n tho now and rap|d|y
ovo|v|ng |ndustry |n wh|ch wo oporato. 1ho |ntroduct|on ot now products or sorv|cos may subjoct us to add|t|ona| |aws and rogu|at|ons. ln add|t|on, toro|gn data
protoct|on, pr|vacy, consumor protoct|on, contont rogu|at|on and othor |aws and rogu|at|ons aro otton moro rostr|ct|vo than thoso |n tho Un|tod 3tatos. ln part|cu|ar, tho
Europoan Un|on and |ts mombor statos trad|t|ona||y havo takon broador v|ows as to typos ot data that aro subjoct to pr|vacy and data protoct|on, and havo |mposod
groator |oga| ob||gat|ons on compan|os |n th|s rogard. A numbor ot proposa|s aro pond|ng botoro todora|, stato and toro|gn |og|s|at|vo and rogu|atory bod|os that cou|d
s|gn|t|cant|y attoct our bus|noss. |or oxamp|o, rogu|at|on ro|at|ng to tho 100b Europoan Un|on 0ata lrotoct|on 0|roct|vo |s curront|y bo|ng cons|dorod by Europoan
|og|s|at|vo bod|os that may |nc|udo moro str|ngont oporat|ona| roqu|romonts tor ont|t|os procoss|ng porsona| |ntormat|on and s|gn|t|cant pona|t|os tor non-comp||anco.
3|m||ar|y, thoro havo boon a numbor ot rocont |og|s|at|vo proposa|s |n tho Un|tod 3tatos, at both tho todora| and stato |ovo|, that wou|d |mposo now ob||gat|ons |n aroas
such as pr|vacy and ||ab|||ty tor copyr|ght |ntr|ngomont by th|rd part|os. 1ho U.3. govornmont, |nc|ud|ng tho |odora| 1rado Comm|ss|on, or tho |1C, and tho 0opartmont
ot Commorco, has announcod that |t |s rov|ow|ng tho nood tor groator rogu|at|on tor tho co||oct|on ot |ntormat|on concorn|ng usor bohav|or on tho lntornot, |nc|ud|ng
rogu|at|on a|mod at rostr|ct|ng corta|n on||no track|ng and targotod advort|s|ng pract|cos. Add|t|ona||y, rocont amondmonts to U.3. patont |aws may attoct tho ab|||ty ot
compan|os, |nc|ud|ng us, to protoct tho|r |nnovat|ons and dotond aga|nst c|a|ms ot patont |ntr|ngomont. Wo curront|y a||ow uso ot our p|attorm w|thout tho co||oct|on ot
oxtons|vo porsona| |ntormat|on, such as ago. Wo may oxpor|onco add|t|ona| prossuro to oxpand our co||oct|on ot porsona| |ntormat|on |n ordor to comp|y w|th now and
add|t|ona| rogu|atory domands or wo may |ndopondont|y doc|do to do so. |av|ng add|t|ona| porsona| |ntormat|on may subjoct us to add|t|ona| rogu|at|on. |urthor, |t |s
d|tt|cu|t to prod|ct how ox|st|ng |aws and rogu|at|ons w||| bo app||od to our bus|noss and tho now |aws and rogu|at|ons to wh|ch wo may bocomo subjoct, and |t |s
poss|b|o that thoy may bo |ntorprotod and app||od |n a mannor that |s |ncons|stont w|th our pract|cos. 1hoso ox|st|ng and proposod |aws and rogu|at|ons can bo cost|y
to comp|y w|th and can do|ay or |mpodo tho dovo|opmont ot now products and sorv|cos, rosu|t |n nogat|vo pub||c|ty, s|gn|t|cant|y |ncroaso our oporat|ng costs, roqu|ro
s|gn|t|cant t|mo and attont|on ot managomont and tochn|ca| porsonno| and subjoct us to |nqu|r|os or |nvost|gat|ons, c|a|ms or othor romod|os, |nc|ud|ng t|nos or domands
that wo mod|ty or coaso ox|st|ng bus|noss pract|cos.

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Regulatory InvestIgatIons and settlements could cause us to Incur addItIonal expenses or change our busIness practIces In a manner materIally adverse to
our busIness.
Wo havo boon subjoct to rogu|atory |nvost|gat|ons |n tho past, and oxpoct to cont|nuo to bo subjoct to rogu|atory scrut|ny as our bus|noss grows and
awaronoss ot our brand |ncroasos. ln Varch 2011, to roso|vo an |nvost|gat|on |nto var|ous |nc|donts, wo ontorod |nto a sott|omont agroomont w|th tho |1C that, among
othor th|ngs, roqu|ros us to ostab||sh an |ntormat|on socur|ty program dos|gnod to protoct non-pub||c consumor |ntormat|on and a|so roqu|ros that wo obta|n b|onn|a|
|ndopondont socur|ty assossmonts. 1ho ob||gat|ons undor tho sott|omont agroomont roma|n |n ottoct unt|| tho |attor ot Varch 2, 2081, or tho dato 20 yoars attor tho
dato, |t any, on wh|ch tho U.3. govornmont or tho |1C t||os a comp|a|nt |n todora| court a||og|ng any v|o|at|on ot tho ordor. Wo oxpoct to cont|nuo to bo tho subjoct ot
rogu|atory |nqu|r|os, |nvost|gat|ons and aud|ts |n tho tuturo by tho |1C and othor rogu|ators around tho wor|d.
lt |s poss|b|o that a rogu|atory |nqu|ry, |nvost|gat|on or aud|t m|ght rosu|t |n changos to our po||c|os or pract|cos, and may causo us to |ncur substant|a| costs or
cou|d rosu|t |n roputat|ona| harm, provont us trom ottor|ng corta|n products, sorv|cos, toaturos or tunct|ona||t|os, causo us to |ncur substant|a| costs or roqu|ro us to
chango our bus|noss pract|cos |n a mannor mator|a||y advorso to our bus|noss. v|o|at|on ot ox|st|ng or tuturo rogu|atory ordors, sott|omonts or consont docroos cou|d
subjoct us to substant|a| monotary t|nos and othor pona|t|os that cou|d nogat|vo|y attoct our t|nanc|a| cond|t|on and oporat|ng rosu|ts.
Even though 1wItter Is a global plat|orm |or publIc sel|-expressIon and conversatIon, user trust regardIng prIvacy Is Important to the growth o| users and the
Increase In user engagement on our plat|orm, and prIvacy concerns relatIng to our products and servIces could damage our reputatIon and deter current
and potentIal users and advertIsers |rom usIng 1wItter.
|rom t|mo to t|mo, concorns havo boon oxprossod by govornmonts, rogu|ators and othors about whothor our products, sorv|cos or pract|cos comprom|so tho
pr|vacy ot usors and othors. Concorns about, govornmonta| or rogu|atory act|ons |nvo|v|ng our pract|cos w|th rogard to tho co||oct|on, uso, d|sc|osuro or socur|ty ot
porsona| |ntormat|on or othor pr|vacy-ro|atod mattors, ovon |t untoundod, cou|d damago our roputat|on, causo us to |oso usors and advort|sors and advorso|y attoct our
oporat|ng rosu|ts. Wh||o wo str|vo to comp|y w|th app||cab|o data protoct|on |aws and rogu|at|ons, as wo|| as our own postod pr|vacy po||c|os and othor ob||gat|ons wo
may havo w|th rospoct to pr|vacy and data protoct|on, tho ta||uro or porco|vod ta||uro to comp|y may rosu|t, and |n somo casos has rosu|tod, |n |nqu|r|os and othor
procood|ngs or act|ons aga|nst us by govornmonts, rogu|ators or othors, as wo|| as nogat|vo pub||c|ty and damago to our roputat|on and brand, oach ot wh|ch cou|d
causo us to |oso usors and advort|sors, wh|ch cou|d havo an advorso ottoct on our bus|noss.
Any systoms ta||uro or comprom|so ot our socur|ty that rosu|ts |n tho unauthor|zod accoss to or ro|oaso ot our usors' or advort|sors' data cou|d s|gn|t|cant|y ||m|t
tho adopt|on ot our products and sorv|cos, as wo|| as harm our roputat|on and brand and, thorotoro, our bus|noss. Wo oxpoct to cont|nuo to oxpond s|gn|t|cant rosourcos
to protoct aga|nst socur|ty broachos. 1ho r|sk that thoso typos ot ovonts cou|d sor|ous|y harm our bus|noss |s ||ko|y to |ncroaso as wo oxpand tho numbor ot products
and sorv|cos wo ottor, |ncroaso tho s|zo ot our usor baso and oporato |n moro countr|os.
Govornmonts and rogu|ators around tho wor|d aro cons|dor|ng a numbor ot |og|s|at|vo and rogu|atory proposa|s concorn|ng data protoct|on. ln add|t|on, tho
|ntorprotat|on and app||cat|on ot consumor and data protoct|on |aws or rogu|at|ons |n tho Un|tod 3tatos, Europo and o|sowhoro aro otton uncorta|n and |n t|ux, and |n
somo casos, |aws or rogu|at|ons |n ono country may bo |ncons|stont w|th, or contrary to, thoso ot anothor country. lt |s poss|b|o that thoso |aws and rogu|at|ons may bo
|ntorprotod and app||od |n a mannor that |s |ncons|stont w|th our pract|cos. lt so, |n add|t|on to tho poss|b|||ty ot t|nos, th|s cou|d rosu|t |n an ordor roqu|r|ng that wo
chango our pract|cos, wh|ch cou|d havo an advorso ottoct on our bus|noss and oporat|ng rosu|ts. Comp|y|ng w|th now |aws and rogu|at|ons cou|d causo us to |ncur
substant|a| costs or roqu|ro us to chango our bus|noss pract|cos |n a mannor mator|a||y advorso to our bus|noss.

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1abIo ot Contonta
l| our securIty measures are breached, or I| our products and servIces are subject to attacks that degrade or deny the abIlIty o| users to access our products
and servIces, our products and servIces may be perceIved as not beIng secure, users and advertIsers may curtaIl or stop usIng our products and servIces and
our busIness and operatIng results could be harmed.
Our products and sorv|cos |nvo|vo tho storago and transm|ss|on ot usors' and advort|sors' |ntormat|on, and socur|ty broachos oxposo us to a r|sk ot |oss ot th|s
|ntormat|on, ||t|gat|on and potont|a| ||ab|||ty. Wo oxpor|onco cybor-attacks ot vary|ng dogroos on a rogu|ar bas|s, and as a rosu|t, unauthor|zod part|os havo obta|nod, and
may |n tho tuturo obta|n, accoss to our data or our usors' or advort|sors' data. |or oxamp|o, |n |obruary 2018, wo d|sc|osod that soph|st|catod unknown th|rd part|os had
attackod our systoms and may havo had accoss to ||m|tod |ntormat|on tor approx|mato|y 2b0,000 usors. Our socur|ty moasuros may a|so bo broachod duo to omp|oyoo
orror, ma|toasanco or othorw|so. Add|t|ona||y, outs|do part|os may attompt to traudu|ont|y |nduco omp|oyoos, usors or advort|sors to d|sc|oso sons|t|vo |ntormat|on |n
ordor to ga|n accoss to our data or our usors' or advort|sors' data or accounts, or may othorw|so obta|n accoss to such data or accounts. 3|nco our usors and
advort|sors may uso tho|r 1w|ttor accounts to ostab||sh and ma|nta|n on||no |dont|t|os, unauthor|zod commun|cat|ons trom 1w|ttor accounts that havo boon comprom|sod
may damago tho|r roputat|ons and brands as wo|| as ours. Any such broach or unauthor|zod accoss cou|d rosu|t |n s|gn|t|cant |oga| and t|nanc|a| oxposuro, damago to
our roputat|on and a |oss ot cont|donco |n tho socur|ty ot our products and sorv|cos that cou|d havo an advorso ottoct on our bus|noss and oporat|ng rosu|ts. 3ocauso
tho tochn|quos usod to obta|n unauthor|zod accoss, d|sab|o or dogrado sorv|co or sabotago systoms chango troquont|y and otton aro not rocogn|zod unt|| |aunchod
aga|nst a targot, wo may bo unab|o to ant|c|pato thoso tochn|quos or to |mp|omont adoquato provontat|vo moasuros. lt an actua| or porco|vod broach ot our socur|ty
occurs, tho markot porcopt|on ot tho ottoct|vonoss ot our socur|ty moasuros cou|d bo harmod, wo cou|d |oso usors and advort|sors and wo may |ncur s|gn|t|cant |oga|
and t|nanc|a| oxposuro, |nc|ud|ng |oga| c|a|ms and rogu|atory t|nos and pona|t|os. Any ot thoso act|ons cou|d havo a mator|a| and advorso ottoct on our bus|noss,
roputat|on and oporat|ng rosu|ts.
We may |ace lawsuIts or Incur lIabIlIty as a result o| content publIshed or made avaIlable through our products and servIces.
Wo havo tacod and w||| cont|nuo to taco c|a|ms ro|at|ng to contont that |s pub||shod or mado ava||ab|o through our products and sorv|cos or th|rd party products
or sorv|cos. ln part|cu|ar, tho naturo ot our bus|noss oxposos us to c|a|ms ro|atod to dotamat|on, |nto||octua| proporty r|ghts, r|ghts ot pub||c|ty and pr|vacy, |||oga|
contont, contont rogu|at|on and porsona| |njury torts. 1ho |aw ro|at|ng to tho ||ab|||ty ot prov|dors ot on||no products or sorv|cos tor act|v|t|os ot tho|r usors roma|ns
somowhat unsott|od, both w|th|n tho Un|tod 3tatos and |ntornat|ona||y. 1h|s r|sk may bo onhancod |n corta|n jur|sd|ct|ons outs|do tho Un|tod 3tatos whoro wo may bo
|oss protoctod undor |oca| |aws than wo aro |n tho Un|tod 3tatos. ln add|t|on, tho pub||c naturo ot commun|cat|ons on our notwork oxposos us to r|sks ar|s|ng trom tho
croat|on ot |mporsonat|on accounts |ntondod to bo attr|butod to our usors or advort|sors. Wo cou|d |ncur s|gn|t|cant costs |nvost|gat|ng and dotond|ng thoso c|a|ms. lt wo
|ncur costs or ||ab|||ty as a rosu|t ot thoso ovonts occurr|ng, our bus|noss, t|nanc|a| cond|t|on and oporat|ng rosu|ts cou|d bo advorso|y attoctod.
Our Intellectual property rIghts are valuable, and any InabIlIty to protect them could reduce the value o| our products, servIces and brand.
Our trado socrots, tradomarks, copyr|ghts, patonts and othor |nto||octua| proporty r|ghts aro |mportant assots tor us. Wo ro|y on, and oxpoct to cont|nuo to ro|y
on, a comb|nat|on ot cont|dont|a||ty and ||conso agroomonts w|th our omp|oyoos, consu|tants and th|rd part|os w|th whom wo havo ro|at|onsh|ps, as wo|| as tradomark,
trado dross, doma|n namo, copyr|ght, trado socrot and patont |aws, to protoct our brand and othor |nto||octua| proporty r|ghts. |owovor, var|ous ovonts outs|do ot our
contro| poso a throat to our |nto||octua| proporty r|ghts, as wo|| as to our products, sorv|cos and

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1abIo ot Contonta
tochno|og|os. |or oxamp|o, wo may ta|| to obta|n ottoct|vo |nto||octua| proporty protoct|on, or ottoct|vo |nto||octua| proporty protoct|on may not bo ava||ab|o |n ovory
country |n wh|ch our products and sorv|cos aro ava||ab|o. A|so, tho ottorts wo havo takon to protoct our |nto||octua| proporty r|ghts may not bo sutt|c|ont or ottoct|vo, and
any ot our |nto||octua| proporty r|ghts may bo cha||ongod, wh|ch cou|d rosu|t |n thom bo|ng narrowod |n scopo or doc|arod |nva||d or unontorcoab|o. 1horo can bo no
assuranco our |nto||octua| proporty r|ghts w||| bo sutt|c|ont to protoct aga|nst othors ottor|ng products or sorv|cos that aro substant|a||y s|m||ar to ours and compoto w|th
our bus|noss.
Wo ro|y on non-patontod propr|otary |ntormat|on and tochno|ogy, such as trado socrots, cont|dont|a| |ntormat|on, know-how and tochn|ca| |ntormat|on. Wh||o |n
corta|n casos wo havo agroomonts |n p|aco w|th omp|oyoos and th|rd part|os that p|aco rostr|ct|ons on tho uso and d|sc|osuro ot th|s |nto||octua| proporty, thoso
agroomonts may bo broachod, or th|s |nto||octua| proporty may othorw|so bo d|sc|osod or bocomo known to our compot|tors, wh|ch cou|d causo us to |oso any
compot|t|vo advantago rosu|t|ng trom th|s |nto||octua| proporty.
Wo aro pursu|ng rog|strat|on ot tradomarks and doma|n namos |n tho Un|tod 3tatos and |n corta|n jur|sd|ct|ons outs|do ot tho Un|tod 3tatos. Ettoct|vo protoct|on
ot tradomarks and doma|n namos |s oxpons|vo and d|tt|cu|t to ma|nta|n, both |n torms ot app||cat|on and rog|strat|on costs as wo|| as tho costs ot dotond|ng and
ontorc|ng thoso r|ghts. Wo may bo roqu|rod to protoct our r|ghts |n an |ncroas|ng numbor ot countr|os, a procoss that |s oxpons|vo and may not bo succosstu| or wh|ch
wo may not pursuo |n ovory country |n wh|ch our products and sorv|cos aro d|str|butod or mado ava||ab|o.
Wo aro party to numorous agroomonts that grant ||consos to th|rd part|os to uso our |nto||octua| proporty, |nc|ud|ng our tradomarks. |or oxamp|o, many th|rd
part|os d|str|buto tho|r contont through 1w|ttor, or ombod 1w|ttor contont |n tho|r app||cat|ons or on tho|r wobs|tos, and mako uso ot our tradomarks |n connoct|on w|th
tho|r sorv|cos. lt tho ||consoos ot our tradomarks aro not us|ng our tradomarks propor|y, |t may ||m|t our ab|||ty to protoct our tradomarks and cou|d u|t|mato|y rosu|t |n
our tradomarks bo|ng doc|arod |nva||d or unontorcoab|o. Wo havo a po||cy dos|gnod to ass|st th|rd part|os |n tho propor uso ot our brand, tradomarks and othor assots,
and wo havo an |ntorna| toam dod|catod to ontorc|ng our po||cy and protoct|ng our brand. Our brand protoct|on toam rout|no|y roco|vos and rov|ows roports ot |mpropor
and unauthor|zod uso ot tho 1w|ttor brand, tradomarks or assots and |ssuos takodown not|cos or |n|t|atos d|scuss|ons w|th tho th|rd part|os to corroct tho |ssuos.
|owovor, thoro can bo no assuranco that wo w||| bo ab|o to protoct aga|nst tho unauthor|zod uso ot our brand, tradomarks or othor assots. lt wo ta|| to ma|nta|n and
ontorco our tradomark r|ghts, tho va|uo ot our brand cou|d bo d|m|n|shod. 1horo |s a|so a r|sk that ono or moro ot our tradomarks cou|d bocomo gonor|c, wh|ch cou|d
rosu|t |n thom bo|ng doc|arod |nva||d or unontorcoab|o. |or oxamp|o, thoro |s a r|sk that tho word 1woot' cou|d bocomo so common|y usod that |t bocomos synonymous
w|th any short commont postod pub||c|y on tho lntornot, and |t th|s happons, wo cou|d |oso protoct|on ot th|s tradomark.
Wo a|so sook to obta|n patont protoct|on tor somo ot our tochno|ogy and as ot 1uno 80, 2018, wo had 0 |ssuod U.3. patonts and approx|mato|y 80 patont
app||cat|ons on t||o |n tho Un|tod 3tatos and abroad, a|though thoro can bo no assuranco that thoso app||cat|ons w||| bo u|t|mato|y |ssuod as patonts. Wo may bo unab|o
to obta|n patont or tradomark protoct|on tor our tochno|og|os and brands, and our ox|st|ng patonts and tradomarks, and any patonts or tradomarks that may bo |ssuod |n
tho tuturo, may not prov|do us w|th compot|t|vo advantagos or d|st|ngu|sh our products and sorv|cos trom thoso ot our compot|tors. ln add|t|on, any patonts and
tradomarks may bo contostod, c|rcumvontod, or tound unontorcoab|o or |nva||d, and wo may not bo ab|o to provont th|rd part|os trom |ntr|ng|ng, d||ut|ng or othorw|so
v|o|at|ng thom. Ettoct|vo protoct|on ot patont r|ghts |s oxpons|vo and d|tt|cu|t to ma|nta|n, both |n torms ot app||cat|on and ma|ntonanco costs, as wo|| as tho costs ot
dotond|ng and ontorc|ng thoso r|ghts.
Our lnnovator's latont Agroomont, or llA, a|so ||m|ts our ab|||ty to provont |ntr|ngomont ot our patonts. ln Vay 2018, wo |mp|omontod tho llA, wh|ch wo ontor
|nto w|th our omp|oyoos and consu|tants,

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|nc|ud|ng our toundors. 1ho llA, wh|ch app||os to our curront and tuturo patonts, a||ows us to assort our patonts dotons|vo|y. 1ho llA a|so a||ows us to assort our
patonts ottons|vo|y w|th tho porm|ss|on ot tho |nvontors ot tho app||cab|o patont. Undor tho llA, an assort|on ot c|a|ms |s cons|dorod tor a dotons|vo purposo |t tho c|a|ms
aro assortod: (|) aga|nst an ont|ty that has t||od, ma|nta|nod, throatonod or vo|untar||y part|c|patod |n a patont |ntr|ngomont |awsu|t aga|nst us or any ot our usors,
att|||atos, customors, supp||ors or d|str|butors, (||) aga|nst an ont|ty that has usod |ts patonts ottons|vo|y aga|nst any othor party |n tho past ton yoars, so |ong as tho
ont|ty has not |nst|tutod tho patont |ntr|ngomont |awsu|t dotons|vo|y |n rosponso to a patont ||t|gat|on throat aga|nst tho ont|ty, or (|||) othorw|so to dotor a patont ||t|gat|on
throat aga|nst us or our usors, att|||atos, customors, supp||ors or d|str|butors. ln add|t|on, tho llA prov|dos that tho abovo ||m|tat|ons app|y to any tuturo ownor or
oxc|us|vo ||consoo ot any ot our patonts, wh|ch cou|d ||m|t our ab|||ty to so|| or ||conso our patonts to th|rd part|os. Wh||o wo may bo ab|o to c|a|m protoct|on ot our
|nto||octua| proporty undor othor r|ghts, such as trado socrots or contractua| ob||gat|ons w|th our omp|oyoos not to d|sc|oso or uso cont|dont|a| |ntormat|on, wo may bo
unab|o to assort our patont r|ghts aga|nst th|rd part|os that wo bo||ovo aro |ntr|ng|ng our patonts, ovon |t such th|rd part|os aro dovo|op|ng products and sorv|cos that
compoto w|th our products and sorv|cos. |or oxamp|o, |n tho ovont that an |nvontor ot ono ot our patonts |oavos us tor anothor company and usos our patontod
tochno|ogy to compoto w|th us, wo wou|d not bo ab|o to assort that patont aga|nst such othor company un|oss tho assort|on ot tho patont r|ght |s tor a dotons|vo
purposo. ln such ovont, wo may bo ||m|tod |n our ab|||ty to assort a patont r|ght aga|nst anothor company, and |nstoad wou|d nood to ro|y on trado socrot protoct|on or
tho contractua| ob||gat|on ot tho |nvontor to us not to d|sc|oso or uso our cont|dont|a| |ntormat|on. ln add|t|on, tho torms ot tho llA cou|d attoct our ab|||ty to monot|zo our
|nto||octua| proporty portto||o.
3|gn|t|cant |mpa|rmonts ot our |nto||octua| proporty r|ghts, and ||m|tat|ons on our ab|||ty to assort our |nto||octua| proporty r|ghts aga|nst othors, cou|d harm our
bus|noss and our ab|||ty to compoto. A|so, obta|n|ng, ma|nta|n|ng and ontorc|ng our |nto||octua| proporty r|ghts |s cost|y and t|mo consum|ng. Any |ncroaso |n tho
unauthor|zod uso ot our |nto||octua| proporty cou|d mako |t moro oxpons|vo to do bus|noss and harm our oporat|ng rosu|ts.
We are currently, and expect to be In the |uture, party to Intellectual property rIghts claIms that are expensIve and tIme consumIng to de|end, and, I| resolved
adversely, could have a sIgnI|Icant Impact on our busIness, |InancIal condItIon or operatIng results.
Compan|os |n tho lntornot, tochno|ogy and mod|a |ndustr|os own |argo numbors ot patonts, copyr|ghts, tradomarks and trado socrots, and troquont|y ontor |nto
||t|gat|on basod on a||ogat|ons ot |ntr|ngomont, m|sappropr|at|on or othor v|o|at|ons ot |nto||octua| proporty or othor r|ghts. Vany compan|os |n thoso |ndustr|os, |nc|ud|ng
many ot our compot|tors, havo substant|a||y |argor patont and |nto||octua| proporty portto||os than wo do, wh|ch cou|d mako us a targot tor ||t|gat|on as wo may not bo
ab|o to assort countorc|a|ms aga|nst part|os that suo us tor patont, or othor |nto||octua| proporty |ntr|ngomont. ln add|t|on, var|ous non-pract|c|ng ont|t|os' that own
patonts and othor |nto||octua| proporty r|ghts otton attompt to aggross|vo|y assort c|a|ms |n ordor to oxtract va|uo trom tochno|ogy compan|os. |urthor, trom t|mo to t|mo
wo may |ntroduco now products and sorv|cos, |nc|ud|ng |n aroas whoro wo curront|y do not havo an ottor|ng, wh|ch cou|d |ncroaso our oxposuro to patont and othor
|nto||octua| proporty c|a|ms trom compot|tors and non-pract|c|ng ont|t|os. ln add|t|on, a|though our standard torms and cond|t|ons tor our lromotod lroducts and pub||c
Alls do not prov|do advort|sors and p|attorm partnors w|th |ndomn|t|cat|on tor |nto||octua| proporty c|a|ms aga|nst thom, somo ot our agroomonts w|th advort|sors,
p|attorm partnors and data partnors roqu|ro us to |ndomn|ty thom tor corta|n |nto||octua| proporty c|a|ms aga|nst thom, wh|ch cou|d roqu|ro us to |ncur cons|dorab|o costs
|n dotond|ng such c|a|ms, and may roqu|ro us to pay s|gn|t|cant damagos |n tho ovont ot an advorso ru||ng. 3uch advort|sors, p|attorm partnors and data partnors may
a|so d|scont|nuo uso ot our products, sorv|cos and tochno|og|os as a rosu|t ot |njunct|ons or othorw|so, wh|ch cou|d rosu|t |n |oss ot rovonuo and advorso|y |mpact our
bus|noss.

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Wo prosont|y aro |nvo|vod |n a numbor ot |nto||octua| proporty |awsu|ts, and as wo taco |ncroas|ng compot|t|on and ga|n an |ncroas|ng|y h|gh prot||o, wo oxpoct
tho numbor ot patont and othor |nto||octua| proporty c|a|ms aga|nst us to grow. 1horo may bo |nto||octua| proporty or othor r|ghts ho|d by othors, |nc|ud|ng |ssuod or
pond|ng patonts, that covor s|gn|t|cant aspocts ot our products and sorv|cos, and wo cannot bo suro that wo aro not |ntr|ng|ng or v|o|at|ng, and havo not |ntr|ngod or
v|o|atod, any th|rd-party |nto||octua| proporty r|ghts or that wo w||| not bo ho|d to havo dono so or bo accusod ot do|ng so |n tho tuturo. Any c|a|m or ||t|gat|on a||og|ng that
wo havo |ntr|ngod or othorw|so v|o|atod |nto||octua| proporty or othor r|ghts ot th|rd part|os, w|th or w|thout mor|t, and whothor or not sott|od out ot court or dotorm|nod |n
our tavor, cou|d bo t|mo-consum|ng and cost|y to addross and roso|vo, and cou|d d|vort tho t|mo and attont|on ot our managomont and tochn|ca| porsonno|. 3omo ot our
compot|tors havo substant|a||y groator rosourcos than wo do and aro ab|o to susta|n tho costs ot comp|ox |nto||octua| proporty ||t|gat|on to a groator dogroo and tor
|ongor por|ods ot t|mo than wo cou|d. 1ho outcomo ot any ||t|gat|on |s |nhoront|y uncorta|n, and thoro can bo no assurancos that tavorab|o t|na| outcomos w||| bo obta|nod
|n a|| casos. ln add|t|on, p|a|nt|tts may sook, and wo may bocomo subjoct to, pro||m|nary or prov|s|ona| ru||ngs |n tho courso ot any such ||t|gat|on, |nc|ud|ng potont|a|
pro||m|nary |njunct|ons roqu|r|ng us to coaso somo or a|| ot our oporat|ons. Wo may doc|do to sott|o such |awsu|ts and d|sputos on torms that aro untavorab|o to us.
3|m||ar|y, |t any ||t|gat|on to wh|ch wo aro a party |s roso|vod advorso|y, wo may bo subjoct to an untavorab|o judgmont that may not bo rovorsod upon appoa|. 1ho torms
ot such a sott|omont or judgmont may roqu|ro us to coaso somo or a|| ot our oporat|ons or pay substant|a| amounts to tho othor party. ln add|t|on, wo may havo to sook
a ||conso to cont|nuo pract|cos tound to bo |n v|o|at|on ot a th|rd party's r|ghts. lt wo aro roqu|rod, or chooso to ontor |nto roya|ty or ||cons|ng arrangomonts, such
arrangomonts may not bo ava||ab|o on roasonab|o torms, or at a||, and may s|gn|t|cant|y |ncroaso our oporat|ng costs and oxponsos. As a rosu|t, wo may a|so bo
roqu|rod to dovo|op or procuro a|tornat|vo non-|ntr|ng|ng tochno|ogy or d|scont|nuo uso ot tho tochno|ogy. 1ho dovo|opmont or procuromont ot a|tornat|vo non-|ntr|ng|ng
tochno|ogy cou|d roqu|ro s|gn|t|cant ottort and oxponso or may not bo toas|b|o. An untavorab|o roso|ut|on ot tho d|sputos and ||t|gat|on rotorrod to abovo cou|d advorso|y
attoct our bus|noss, t|nanc|a| cond|t|on, and oporat|ng rosu|ts.
Many o| our products and servIces contaIn open source so|tware, and we lIcense some o| our so|tware through open source projects, whIch may pose
partIcular rIsks to our proprIetary so|tware, products, and servIces In a manner that could have a negatIve e||ect on our busIness.
Wo uso opon sourco sottwaro |n our products and sorv|cos and w||| uso opon sourco sottwaro |n tho tuturo. ln add|t|on, wo rogu|ar|y contr|buto sottwaro sourco
codo to opon sourco projocts undor opon sourco ||consos or ro|oaso |ntorna| sottwaro projocts undor opon sourco ||consos, and ant|c|pato do|ng so |n tho tuturo. 1ho
torms ot many opon sourco ||consos to wh|ch wo aro subjoct havo not boon |ntorprotod by U.3. or toro|gn courts, and thoro |s a r|sk that opon sourco sottwaro ||consos
cou|d bo construod |n a mannor that |mposos unant|c|patod cond|t|ons or rostr|ct|ons on our ab|||ty to prov|do or d|str|buto our products or sorv|cos. Add|t|ona||y, wo may
trom t|mo to t|mo taco c|a|ms trom th|rd part|os c|a|m|ng ownorsh|p ot, or domand|ng ro|oaso ot, tho opon sourco sottwaro or dor|vat|vo works that wo dovo|opod us|ng
such sottwaro, wh|ch cou|d |nc|udo our propr|otary sourco codo, or othorw|so sook|ng to ontorco tho torms ot tho app||cab|o opon sourco ||conso. 1hoso c|a|ms cou|d
rosu|t |n ||t|gat|on and cou|d roqu|ro us to mako our sottwaro sourco codo troo|y ava||ab|o, purchaso a cost|y ||conso or coaso ottor|ng tho |mp||catod products or sorv|cos
un|oss and unt|| wo can ro-ong|noor thom to avo|d |ntr|ngomont. 1h|s ro-ong|noor|ng procoss cou|d roqu|ro s|gn|t|cant add|t|ona| rosoarch and dovo|opmont rosourcos,
and wo may not bo ab|o to comp|oto |t succosstu||y. ln add|t|on to r|sks ro|atod to ||conso roqu|romonts, uso ot corta|n opon sourco sottwaro can |oad to groator r|sks
than uso ot th|rd-party commorc|a| sottwaro, as opon sourco ||consors gonora||y do not prov|do warrant|os or contro|s on tho or|g|n ot sottwaro. Add|t|ona||y, bocauso any
sottwaro sourco codo wo contr|buto to opon sourco projocts |s pub||c|y ava||ab|o, our ab|||ty to protoct our |nto||octua| proporty r|ghts w|th rospoct to such sottwaro
sourco codo may bo ||m|tod or |ost ont|ro|y, and wo aro unab|o to provont our compot|tors or

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1abIo ot Contonta
othors trom us|ng such contr|butod sottwaro sourco codo. Any ot thoso r|sks cou|d bo d|tt|cu|t to o||m|nato or manago, and, |t not addrossod, cou|d havo a nogat|vo ottoct
on our bus|noss, t|nanc|a| cond|t|on and oporat|ng rosu|ts.
We may expend substantIal |unds In connectIon wIth the tax lIabIlItIes that arIse upon the InItIal settlement o| R8Us In connectIon wIth thIs o||erIng, and the
manner In whIch we |und that expendIture may have an adverse e||ect on our |InancIal condItIon.
Wo may oxpond substant|a| tunds to sat|sty tax w|thho|d|ng and rom|ttanco ob||gat|ons whon wo sott|o a port|on ot our l3Us grantod pr|or to tho dato ot th|s
prospoctus. lro-2018 l3Us vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a portormanco cond|t|on. 1ho sorv|co cond|t|on tor tho major|ty ot tho lro-2018
l3Us |s sat|st|od ovor a por|od ot tour yoars. 1ho portormanco cond|t|on |n connoct|on w|th our lro-2018 l3Us w||| bo sat|st|od on tho oar||or ot (|) tho dato that |s tho
oar||or ot (x) s|x months attor tho ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|s ottor|ng (wh|ch wo may o|oct to
acco|orato to |obruary 1bth), and (||) tho dato ot a chango |n contro|. On tho sott|omont datos tor tho lro-2018 l3Us, wo may chooso to a||ow our omp|oyoos who aro
not oxocut|vo ott|cors to so|| sharos ot our common stock roco|vod upon tho vost|ng and sott|omont ot lro-2018 l3Us |n tho pub||c markot to sat|sty tho|r |ncomo tax
ob||gat|ons ro|atod to tho vost|ng and sott|omont ot such awards, or wo may w|thho|d sharos and rom|t |ncomo taxos on boha|t ot tho ho|dors ot tho lro-2018 l3Us at
tho app||cab|o m|n|mum statutory ratos, wh|ch wo rotor to as a not sott|omont. Wo oxpoct tho app||cab|o m|n|mum statutory ratos to bo approx|mato|y 40% on avorago,
and tho |ncomo taxos duo wou|d bo basod on tho thon-curront va|uo ot tho undor|y|ng sharos ot our common stock. 3asod on tho numbor ot lro-2018 l3Us
outstand|ng as ot 1uno 80, 2018 tor wh|ch tho sorv|co cond|t|on had boon sat|st|od on that dato, and assum|ng (|) tho portormanco cond|t|on had boon sat|st|od on that
dato and (||) that tho pr|co ot our common stock at tho t|mo ot sott|omont was oqua| to $ , wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on
tho covor pago ot th|s prospoctus, wo ost|mato that th|s tax ob||gat|on on tho |n|t|a| sott|omont dato wou|d bo approx|mato|y $ |n tho aggrogato. 1ho amount ot th|s
ob||gat|on cou|d bo h|ghor or |owor, dopond|ng on tho pr|co ot sharos ot our common stock on tho |n|t|a| sott|omont dato tor tho lro-2018 l3Us. 1o sott|o thoso lro-2018
l3Us on tho |n|t|a| sott|omont dato, assum|ng a 40% tax w|thho|d|ng rato, |t wo chooso to undortako a not sott|omont ot a|| ot thoso awards rathor than a||ow|ng our
omp|oyoos who aro not oxocut|vo ott|cors to so|| sharos ot our common stock |n tho pub||c markot to sat|sty tho|r |ncomo tax ob||gat|ons ro|atod to tho vost|ng and
sott|omont ot lro-2018 l3Us, wo wou|d oxpoct to do||vor an aggrogato ot approx|mato|y sharos ot our common stock to lro-2018 l3U ho|dors and w|thho|d
an aggrogato ot approx|mato|y sharos ot our common stock. ln connoct|on w|th thoso not sott|omonts, wo wou|d w|thho|d and rom|t tho tax ||ab|||t|os on boha|t
ot tho lro-2018 l3U ho|dors to tho ro|ovant tax author|t|os |n cash.
lt wo chooso to undortako a not sott|omont ot our lro-2018 l3Us, thon |n ordor to tund tho tax w|thho|d|ng and rom|ttanco ob||gat|ons on boha|t ot our lro-2018
l3U ho|dors, wo wou|d oxpoct to uso a substant|a| port|on ot our cash and cash oqu|va|ont ba|ancos, or, a|tornat|vo|y, wo may chooso to borrow tunds or a comb|nat|on
ot cash and borrowod tunds to sat|sty thoso ob||gat|ons.
We may requIre addItIonal capItal to support our operatIons or the growth o| our busIness, and we cannot be certaIn that thIs capItal wIll be avaIlable on
reasonable terms when requIred, or at all.
|rom t|mo to t|mo, wo may nood add|t|ona| t|nanc|ng to oporato or grow our bus|noss. Our ab|||ty to obta|n add|t|ona| t|nanc|ng, |t and whon roqu|rod, w||| dopond
on |nvostor and |ondor domand, our oporat|ng portormanco, tho cond|t|on ot tho cap|ta| markots and othor tactors, and wo cannot assuro you that add|t|ona| t|nanc|ng w|||
bo ava||ab|o to us on tavorab|o torms whon roqu|rod, or at a||. lt wo ra|so add|t|ona| tunds through tho |ssuanco ot oqu|ty, oqu|ty-||nkod or dobt socur|t|os, thoso socur|t|os
may havo r|ghts, protoroncos or pr|v||ogos son|or to tho r|ghts ot our common stock, and our ox|st|ng stockho|dors may oxpor|onco d||ut|on. lt wo aro unab|o to obta|n
adoquato t|nanc|ng or t|nanc|ng on

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torms sat|stactory to us whon wo roqu|ro |t, our ab|||ty to cont|nuo to support tho oporat|on or growth ot our bus|noss cou|d bo s|gn|t|cant|y |mpa|rod and our oporat|ng
rosu|ts may bo harmod.
We rely on assumptIons and estImates to calculate certaIn o| our key metrIcs, and real or perceIved InaccuracIes In such metrIcs may harm our reputatIon
and negatIvely a||ect our busIness.
1ho numbors ot our act|vo usors and t|mo||no v|ows aro ca|cu|atod us|ng |ntorna| company data that has not boon |ndopondont|y vor|t|od. Wh||o thoso numbors
aro basod on what wo bo||ovo to bo roasonab|o ca|cu|at|ons tor tho app||cab|o por|od ot moasuromont, thoro aro |nhoront cha||ongos |n moasur|ng usago and usor
ongagomont across our |argo usor baso around tho wor|d. |or oxamp|o, thoro aro a numbor ot ta|so or spam accounts |n ox|stonco on our p|attorm. Wo curront|y
ost|mato that ta|so or spam accounts roprosont |oss than b% ot our VAUs. |owovor, th|s ost|mato |s basod on an |ntorna| rov|ow ot a samp|o ot accounts and wo app|y
s|gn|t|cant judgmont |n mak|ng th|s dotorm|nat|on. As such, our ost|mat|on ot ta|so or spam accounts may not accurato|y roprosont tho actua| numbor ot such accounts,
and tho actua| numbor ot ta|so or spam accounts cou|d bo h|ghor than wo havo curront|y ost|matod. Wo aro cont|nua||y sook|ng to |mprovo our ab|||ty to ost|mato tho
tota| numbor ot spam accounts and o||m|nato thom trom tho ca|cu|at|on ot our act|vo usors, but wo othorw|so troat mu|t|p|o accounts ho|d by a s|ng|o porson or
organ|zat|on as mu|t|p|o usors tor purposos ot ca|cu|at|ng our act|vo usors bocauso wo porm|t poop|o and organ|zat|ons to havo moro than ono account. Add|t|ona||y,
somo accounts usod by organ|zat|ons aro usod by many poop|o w|th|n tho organ|zat|on. As such, tho ca|cu|at|ons ot our act|vo usors may not accurato|y rot|oct tho
actua| numbor ot poop|o or organ|zat|ons us|ng our p|attorm.
Our motr|cs aro a|so attoctod by mob||o app||cat|ons that automat|ca||y contact our sorvors tor rogu|ar updatos w|th no usor act|on |nvo|vod, and th|s act|v|ty can
causo our systom to count tho usor assoc|atod w|th such a dov|co as an act|vo usor on tho day such contact occurs. 1ho ca|cu|at|ons ot VAUs prosontod |n th|s
prospoctus may bo attoctod by th|s act|v|ty. 1ho |mpact ot th|s automat|c act|v|ty on our motr|cs var|os by goography bocauso mob||o app||cat|on usago var|os |n d|ttoront
rog|ons ot tho wor|d. ln add|t|on, our data rogard|ng usor goograph|c |ocat|on |s basod on tho ll addross assoc|atod w|th tho account whon a usor |n|t|a||y rog|storod tho
account on 1w|ttor. 1ho ll addross may not a|ways accurato|y rot|oct a usor's actua| |ocat|on at tho t|mo ot usor ongagomont on our p|attorm.
Wo prosont and d|scuss t|mo||no v|ows |n tho s|x months ondod 1uno 80, 2012, but wo d|d not track a|| ot tho t|mo||no v|ows on our mob||o app||cat|ons dur|ng
tho throo months ondod Varch 81, 2012. Wo havo |nc|udod |n th|s prospoctus ost|matos tor actua| t|mo||no v|ows |n tho throo months ondod Varch 81, 2012 tor tho
mob||o app||cat|ons wo d|d not track. Wo bo||ovo thoso ost|matos to bo roasonab|o, but actua| numbors cou|d d|ttor trom our ost|matos. ln add|t|on, t|mo||no v|ows |n tho
throo months and s|x months ondod 1uno 80, 2012 oxc|udo an |mmator|a| numbor ot t|mo||no v|ows |n our mob||o app||cat|ons, corta|n ot wh|ch woro not tu||y trackod
unt|| 1uno 2012.
Wo rogu|ar|y rov|ow and may adjust our procossos tor ca|cu|at|ng our |ntorna| motr|cs to |mprovo tho|r accuracy. Our moasuros ot usor growth and usor
ongagomont may d|ttor trom ost|matos pub||shod by th|rd part|os or trom s|m||ar|y-t|t|od motr|cs ot our compot|tors duo to d|ttoroncos |n mothodo|ogy. lt advort|sors,
p|attorm partnors or |nvostors do not porco|vo our usor motr|cs to bo accurato roprosontat|ons ot our usor baso or usor ongagomont, or |t wo d|scovor mator|a|
|naccurac|os |n our usor motr|cs, our roputat|on may bo harmod and advort|sors and p|attorm partnors may bo |oss w||||ng to a||ocato tho|r budgots or rosourcos to our
products and sorv|cos, wh|ch cou|d nogat|vo|y attoct our bus|noss and oporat|ng rosu|ts.
We depend on hIghly skIlled personnel to grow and operate our busIness, and I| we are unable to hIre, retaIn and motIvate our personnel, we may not be
able to grow e||ectIvely.
Our tuturo succoss w||| dopond upon our cont|nuod ab|||ty to |dont|ty, h|ro, dovo|op, mot|vato and rota|n h|gh|y sk|||od porsonno|, |nc|ud|ng son|or managomont,
ong|noors, dos|gnors and product

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1abIo ot Contonta
managors. Our ab|||ty to oxocuto ott|c|ont|y |s dopondont upon contr|but|ons trom our omp|oyoos, |n part|cu|ar our son|or managomont toam. Wo do not havo
omp|oymont agroomonts othor than ottor |ottors w|th any mombor ot our son|or managomont or othor koy omp|oyoo, and wo do not ma|nta|n koy porson ||to |nsuranco
tor any omp|oyoo. ln add|t|on, trom t|mo to t|mo, thoro may bo changos |n our son|or managomont toam that may bo d|srupt|vo to our bus|noss. lt our son|or
managomont toam, |nc|ud|ng any now h|ros that wo may mako, ta||s to work togothor ottoct|vo|y and to oxocuto our p|ans and stratog|os on a t|mo|y bas|s, our bus|noss
cou|d bo harmod.
Our growth stratogy a|so doponds on our ab|||ty to oxpand and rota|n our organ|zat|on w|th h|gh|y sk|||od porsonno|. ldont|ty|ng, rocru|t|ng, tra|n|ng and
|ntograt|ng qua||t|od |nd|v|dua|s w||| roqu|ro s|gn|t|cant t|mo, oxponso and attont|on. ln add|t|on to h|r|ng now omp|oyoos, wo must cont|nuo to tocus on rota|n|ng our bost
omp|oyoos. Vany ot our omp|oyoos may bo ab|o to roco|vo s|gn|t|cant procoods trom sa|os ot our oqu|ty |n tho pub||c markots attor th|s ottor|ng, wh|ch may roduco tho|r
mot|vat|on to cont|nuo to work tor us. Compot|t|on tor h|gh|y sk|||od porsonno| |s |ntonso, part|cu|ar|y |n tho 3an |ranc|sco 3ay Aroa, whoro our hoadquartors |s |ocatod.
Wo may nood to |nvost s|gn|t|cant amounts ot cash and oqu|ty to attract and rota|n now omp|oyoos and wo may novor roa||zo roturns on thoso |nvostmonts. lt wo aro
not ab|o to ottoct|vo|y add and rota|n omp|oyoos, our ab|||ty to ach|ovo our stratog|c objoct|vos w||| bo advorso|y |mpactod, and our bus|noss w||| bo harmod.
Our corporate culture has contrIbuted to our success, and I| we cannot maIntaIn thIs culture as we grow, we could lose the InnovatIon, creatIvIty and
teamwork |ostered by our culture, and our busIness may be harmed.
Wo bo||ovo that our cu|turo has boon and w||| cont|nuo to bo a koy contr|butor to our succoss. |rom 1anuary 1, 2010 to 1uno 80, 2018, wo |ncroasod tho s|zo ot
our worktorco by moro than 1,800 omp|oyoos, and wo oxpoct to cont|nuo to h|ro aggross|vo|y as wo oxpand. lt wo do not cont|nuo to dovo|op our corporato cu|turo or
ma|nta|n our coro va|uos as wo grow and ovo|vo, wo may bo unab|o to tostor tho |nnovat|on, croat|v|ty and toamwork wo bo||ovo wo nood to support our growth. Voroovor,
||qu|d|ty ava||ab|o to our omp|oyoo socur|tyho|dors to||ow|ng th|s ottor|ng cou|d |oad to d|spar|t|os ot woa|th among our omp|oyoos, wh|ch cou|d advorso|y |mpact ro|at|ons
among omp|oyoos and our cu|turo |n gonora|. Our trans|t|on trom a pr|vato company to a pub||c company may rosu|t |n a chango to our corporato cu|turo, wh|ch cou|d
harm our bus|noss.
We rely In part on applIcatIon marketplaces and lnternet search engInes to drIve tra||Ic to our products and servIces, and I| we |aIl to appear hIgh up In the
search results or rankIngs, tra||Ic to our plat|orm could declIne and our busIness and operatIng results could be adversely a||ected.
Wo ro|y on app||cat|on markotp|acos, such as App|o's App 3toro and Goog|o's l|ay, to dr|vo down|oads ot our mob||o app||cat|ons. ln tho tuturo, App|o, Goog|o
or othor oporators ot app||cat|on markotp|acos may mako changos to tho|r markotp|acos wh|ch mako accoss to our products and sorv|cos moro d|tt|cu|t. Wo a|so
dopond |n part on lntornot soarch ong|nos, such as Goog|o, 3|ng and Yahoo!, to dr|vo tratt|c to our wobs|to. |or oxamp|o, whon a usor typos an |nqu|ry |nto a soarch
ong|no, wo ro|y on a h|gh organ|c soarch rosu|t rank|ng ot our wobpagos |n thoso soarch rosu|ts to rotor tho usor to our wobs|to. |owovor, our ab|||ty to ma|nta|n h|gh
organ|c soarch rosu|t rank|ngs |s not w|th|n our contro|. Our compot|tors' soarch ong|no opt|m|zat|on, or 3EO, ottorts may rosu|t |n tho|r wobs|tos roco|v|ng a h|ghor
soarch rosu|t pago rank|ng than ours, or lntornot soarch ong|nos cou|d rov|so tho|r mothodo|og|os |n a way that wou|d advorso|y attoct our soarch rosu|t rank|ngs. |or
oxamp|o, Goog|o has |ntogratod |ts soc|a| notwork|ng ottor|ngs, |nc|ud|ng Goog|o+, w|th corta|n ot |ts products, |nc|ud|ng soarch, wh|ch has nogat|vo|y |mpactod tho
organ|c soarch rank|ng ot our wobpagos. lt lntornot soarch ong|nos mod|ty tho|r soarch a|gor|thms |n ways that aro dotr|monta| to us, or |t our compot|tors' 3EO ottorts
aro moro succosstu| than ours, tho growth |n our usor baso cou|d s|ow. Our wobs|to has oxpor|oncod t|uctuat|ons |n soarch rosu|t rank|ngs |n tho past, and wo
ant|c|pato s|m||ar t|uctuat|ons |n

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1abIo ot Contonta
tho tuturo. Any roduct|on |n tho numbor ot usors d|roctod to our mob||o app||cat|ons or wobs|to through app||cat|on markotp|acos and soarch ong|nos cou|d harm our
bus|noss and oporat|ng rosu|ts.
More people are usIng devIces other than personal computers to access the lnternet and new plat|orms to produce and consume content, and we need to
contInue to promote the adoptIon o| our mobIle applIcatIons, and our busIness and operatIng results may be harmed I| we are unable to do so.
1ho numbor ot poop|o who accoss tho lntornot through dov|cos othor than porsona| computors, |nc|ud|ng mob||o phonos, smartphonos, handho|d computors
such as not books and tab|ots, v|doo gamo conso|os and to|ov|s|on sot-top dov|cos, has |ncroasod dramat|ca||y |n tho past tow yoars. ln tho throo months ondod 1uno
80, 2018, ovor 0b% ot our advort|s|ng rovonuo was gonoratod trom mob||o dov|cos. 3|nco wo gonorato a major|ty ot our advort|s|ng rovonuo through usors on mob||o
dov|cos, wo must cont|nuo to dr|vo adopt|on ot our mob||o app||cat|ons. ln add|t|on, mob||o usors troquont|y chango or upgrado tho|r mob||o dov|cos. Our bus|noss and
oporat|ng rosu|ts may bo harmod |t our usors do not |nsta|| our mob||o app||cat|on whon thoy chango or upgrado tho|r mob||o dov|co. A|though wo gonorato tho major|ty
ot our advort|s|ng rovonuo trom ad ongagomonts on mob||o dov|cos, corta|n ot our products and sorv|cos, |nc|ud|ng lromotod 1ronds and lromotod Accounts, roco|vo
|oss prom|nonco on our mob||o app||cat|ons than thoy do on our dosktop app||cat|ons. 1h|s has |n tho past roducod, and may |n tho tuturo cont|nuo to roduco, tho
amount ot rovonuo wo aro ab|o to gonorato trom thoso products and sorv|cos as usors |ncroas|ng|y accoss our products and sorv|cos through mob||o and a|tornat|vo
dov|cos. ln add|t|on, as now dov|cos and p|attorms aro cont|nua||y bo|ng ro|oasod, usors may consumo contont |n a mannor that |s moro d|tt|cu|t to monot|zo. lt |s
d|tt|cu|t to prod|ct tho prob|oms wo may oncountor |n adapt|ng our products and sorv|cos and dovo|op|ng compot|t|vo now products and sorv|cos that aro compat|b|o w|th
now dov|cos or p|attorms. lt wo aro unab|o to dovo|op products and sorv|cos that aro compat|b|o w|th now dov|cos and p|attorms, or |t wo aro unab|o to dr|vo cont|nuod
adopt|on ot our mob||o app||cat|ons, our bus|noss and oporat|ng rosu|ts may bo harmod.
Future acquIsItIons and Investments could dIsrupt our busIness and harm our |InancIal condItIon and operatIng results.
Our succoss w||| dopond, |n part, on our ab|||ty to oxpand our products and sorv|cos, and grow our bus|noss |n rosponso to chang|ng tochno|og|os, usor and
advort|sor domands, and compot|t|vo prossuros. ln somo c|rcumstancos, wo may dotorm|no to do so through tho acqu|s|t|on ot comp|omontary bus|nossos and
tochno|og|os rathor than through |ntorna| dovo|opmont, |nc|ud|ng, tor oxamp|o, our rocont acqu|s|t|ons ot v|no labs, lnc., a mob||o app||cat|on that onab|os usors to
croato and d|str|buto v|doos that aro up to s|x soconds |n |ongth, and 3|uot|n labs, lnc., a soc|a| to|ov|s|on ana|yt|cs company that prov|dos data products to brand
advort|sors, agonc|os and to|ov|s|on notworks. Wo a|so rocont|y ontorod |nto a dot|n|t|vo agroomont to acqu|ro Volub, a mob||o-tocusod advort|s|ng oxchango. 1ho
|dont|t|cat|on ot su|tab|o acqu|s|t|on cand|datos can bo d|tt|cu|t, t|mo-consum|ng and cost|y, and wo may not bo ab|o to succosstu||y comp|oto |dont|t|od acqu|s|t|ons.
1ho r|sks wo taco |n connoct|on w|th acqu|s|t|ons |nc|udo:



d|vors|on ot managomont t|mo and tocus trom oporat|ng our bus|noss to addross|ng acqu|s|t|on |ntograt|on cha||ongos,



coord|nat|on ot rosoarch and dovo|opmont and sa|os and markot|ng tunct|ons,



rotont|on ot koy omp|oyoos trom tho acqu|rod company,



cu|tura| cha||ongos assoc|atod w|th |ntograt|ng omp|oyoos trom tho acqu|rod company |nto our organ|zat|on,



|ntograt|on ot tho acqu|rod company's account|ng, managomont |ntormat|on, human rosourcos and othor adm|n|strat|vo systoms,

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1abIo ot Contonta



tho nood to |mp|omont or |mprovo contro|s, procoduros, and po||c|os at a bus|noss that pr|or to tho acqu|s|t|on may havo |ackod ottoct|vo contro|s,
procoduros and po||c|os,




||ab|||ty tor act|v|t|os ot tho acqu|rod company botoro tho acqu|s|t|on, |nc|ud|ng |nto||octua| proporty |ntr|ngomont c|a|ms, v|o|at|ons ot |aws, commorc|a|
d|sputos, tax ||ab|||t|os and othor known and unknown ||ab|||t|os,



unant|c|patod wr|to-otts or chargos, and




||t|gat|on or othor c|a|ms |n connoct|on w|th tho acqu|rod company, |nc|ud|ng c|a|ms trom torm|natod omp|oyoos, usors, tormor stockho|dors or othor th|rd
part|os.
Our ta||uro to addross thoso r|sks or othor prob|oms oncountorod |n connoct|on w|th our past or tuturo acqu|s|t|ons and |nvostmonts cou|d causo us to ta|| to
roa||zo tho ant|c|patod bonot|ts ot thoso acqu|s|t|ons or |nvostmonts, causo us to |ncur unant|c|patod ||ab|||t|os, and harm our bus|noss gonora||y. |uturo acqu|s|t|ons
cou|d a|so rosu|t |n d||ut|vo |ssuancos ot our oqu|ty socur|t|os, tho |ncurronco ot dobt, cont|ngont ||ab|||t|os, amort|zat|on oxponsos, |ncromonta| oporat|ng oxponsos or
tho wr|to-ott ot goodw|||, any ot wh|ch cou|d harm our t|nanc|a| cond|t|on or oporat|ng rosu|ts.
l| we |aIl to maIntaIn an e||ectIve system o| dIsclosure controls and Internal control over |InancIal reportIng, our abIlIty to produce tImely and accurate
|InancIal statements or comply wIth applIcable regulatIons could be ImpaIred.
As a pub||c company, wo w||| bo subjoct to tho roport|ng roqu|romonts ot tho 3ocur|t|os Exchango Act ot 1084, as amondod, or tho Exchango Act, tho
3arbanos-Ox|oy Act ot 2002, or tho 3arbanos-Ox|oy Act, and tho ru|os and rogu|at|ons ot tho . Wo oxpoct that tho roqu|romonts ot thoso ru|os and
rogu|at|ons w||| cont|nuo to |ncroaso our |oga|, account|ng and t|nanc|a| comp||anco costs, mako somo act|v|t|os moro d|tt|cu|t, t|mo consum|ng and cost|y, and p|aco
s|gn|t|cant stra|n on our porsonno|, systoms and rosourcos.
1ho 3arbanos-Ox|oy Act roqu|ros, among othor th|ngs, that wo ma|nta|n ottoct|vo d|sc|osuro contro|s and procoduros and |ntorna| contro| ovor t|nanc|a| roport|ng.
Wo aro cont|nu|ng to dovo|op and rot|no our d|sc|osuro contro|s and othor procoduros that aro dos|gnod to onsuro that |ntormat|on roqu|rod to bo d|sc|osod by us |n tho
roports that wo w||| t||o w|th tho 3EC |s rocordod, procossod, summar|zod and roportod w|th|n tho t|mo por|ods spoc|t|od |n 3EC ru|os and torms, and that |ntormat|on
roqu|rod to bo d|sc|osod |n roports undor tho Exchango Act |s accumu|atod and commun|catod to our pr|nc|pa| oxocut|vo and t|nanc|a| ott|cors. Wo aro a|so cont|nu|ng
to |mprovo our |ntorna| contro| ovor t|nanc|a| roport|ng. ln ordor to ma|nta|n and |mprovo tho ottoct|vonoss ot our d|sc|osuro contro|s and procoduros and |ntorna| contro|
ovor t|nanc|a| roport|ng, wo havo oxpondod, and ant|c|pato that wo w||| cont|nuo to oxpond, s|gn|t|cant rosourcos, |nc|ud|ng account|ng-ro|atod costs and s|gn|t|cant
managomont ovors|ght.
Our curront contro|s and any now contro|s that wo dovo|op may bocomo |nadoquato bocauso ot changos |n cond|t|ons |n our bus|noss. |urthor, woaknossos |n
our d|sc|osuro contro|s or our |ntorna| contro| ovor t|nanc|a| roport|ng may bo d|scovorod |n tho tuturo. Any ta||uro to dovo|op or ma|nta|n ottoct|vo contro|s, or any
d|tt|cu|t|os oncountorod |n tho|r |mp|omontat|on or |mprovomont, cou|d harm our oporat|ng rosu|ts or causo us to ta|| to moot our roport|ng ob||gat|ons and may rosu|t |n a
rostatomont ot our t|nanc|a| statomonts tor pr|or por|ods. Any ta||uro to |mp|omont and ma|nta|n ottoct|vo |ntorna| contro| ovor t|nanc|a| roport|ng a|so cou|d advorso|y
attoct tho rosu|ts ot managomont ova|uat|ons and |ndopondont rog|storod pub||c account|ng t|rm aud|ts ot our |ntorna| contro| ovor t|nanc|a| roport|ng that wo w|||
ovontua||y bo roqu|rod to |nc|udo |n our por|od|c roports that w||| bo t||od w|th tho 3EC. lnottoct|vo d|sc|osuro contro|s and procoduros and |ntorna| contro| ovor t|nanc|a|
roport|ng cou|d a|so causo |nvostors to |oso cont|donco |n our roportod t|nanc|a| and othor |ntormat|on, wh|ch wou|d ||ko|y havo a nogat|vo ottoct on tho trad|ng pr|co ot
our common stock. ln add|t|on, |t wo aro unab|o to cont|nuo to moot thoso roqu|romonts, wo may not bo ab|o to roma|n ||stod on tho .

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1abIo ot Contonta
Wo aro not curront|y roqu|rod to comp|y w|th tho 3EC ru|os that |mp|omont 3oct|on 404 ot tho 3arbanos-Ox|oy Act, and aro thorotoro not roqu|rod to mako a
torma| assossmont ot tho ottoct|vonoss ot our |ntorna| contro| ovor t|nanc|a| roport|ng tor that purposo. Upon bocom|ng a pub||c company, wo w||| bo roqu|rod prov|do an
annua| managomont roport on tho ottoct|vonoss ot our |ntorna| contro| ovor t|nanc|a| roport|ng commonc|ng w|th our socond annua| roport on |orm 10-K. Our |ndopondont
rog|storod pub||c account|ng t|rm |s not roqu|rod to aud|t tho ottoct|vonoss ot our |ntorna| contro| ovor t|nanc|a| roport|ng unt|| attor wo aro no |ongor an omorg|ng growth
company,' as dot|nod |n tho 1umpstart Our 3us|noss 3tartups Act ot 2012, or tho 1O33 Act. At such t|mo, our |ndopondont rog|storod pub||c account|ng t|rm may |ssuo
a roport that |s advorso |n tho ovont |t |s not sat|st|od w|th tho |ovo| at wh|ch our |ntorna| contro| ovor t|nanc|a| roport|ng |s documontod, dos|gnod or oporat|ng.
Any ta||uro to ma|nta|n ottoct|vo d|sc|osuro contro|s and |ntorna| contro| ovor t|nanc|a| roport|ng cou|d havo a mator|a| and advorso ottoct on our bus|noss and
oporat|ng rosu|ts, and causo a doc||no |n tho pr|co ot our common stock.
We are an emergIng growth company, and any decIsIon on our part to comply only wIth certaIn reduced reportIng and dIsclosure requIrements applIcable
to emergIng growth companIes could make our common stock less attractIve to Investors.
Wo aro an omorg|ng growth company, and, tor as |ong as wo cont|nuo to bo an omorg|ng growth company, wo may chooso to tako advantago ot oxompt|ons
trom var|ous roport|ng roqu|romonts app||cab|o to othor pub||c compan|os but not to omorg|ng growth compan|os,' |nc|ud|ng, but not ||m|tod to, not bo|ng roqu|rod to
havo our |ndopondont rog|storod pub||c account|ng t|rm aud|t our |ntorna| contro| ovor t|nanc|a| roport|ng undor 3oct|on 404 ot tho 3arbanos-Ox|oy Act, roducod
d|sc|osuro ob||gat|ons rogard|ng oxocut|vo componsat|on |n our por|od|c roports and proxy statomonts, and oxompt|ons trom tho roqu|romonts ot ho|d|ng a nonb|nd|ng
adv|sory voto on oxocut|vo componsat|on and stockho|dor approva| ot any go|don parachuto paymonts not prov|ous|y approvod. Wo cou|d bo an omorg|ng growth
company tor up to t|vo yoars to||ow|ng tho comp|ot|on ot th|s ottor|ng. Wo w||| coaso to bo an omorg|ng growth company upon tho oar||ost ot: (|) tho ond ot tho t|sca| yoar
to||ow|ng tho t|tth ann|vorsary ot th|s ottor|ng, (||) tho t|rst t|sca| yoar attor our annua| gross rovonuo aro $1.0 b||||on or moro, (|||) tho dato on wh|ch wo havo, dur|ng tho
prov|ous throo-yoar por|od, |ssuod moro than $1.0 b||||on |n non-convort|b|o dobt socur|t|os or (|v) tho ond ot any t|sca| yoar |n wh|ch tho markot va|uo ot our common
stock ho|d by non-att|||atos oxcoodod $700 m||||on as ot tho ond ot tho socond quartor ot that t|sca| yoar. Wo cannot prod|ct |t |nvostors w||| t|nd our common stock |oss
attract|vo |t wo chooso to ro|y on thoso oxompt|ons. lt somo |nvostors t|nd our common stock |oss attract|vo as a rosu|t ot any cho|cos to roduco tuturo d|sc|osuro, thoro
may bo a |oss act|vo trad|ng markot tor our common stock and tho pr|co ot our common stock may bo moro vo|at||o.
Undor tho 1O33 Act, omorg|ng growth compan|os can a|so do|ay adopt|ng now or rov|sod account|ng standards unt|| such t|mo as thoso standards app|y to
pr|vato compan|os. Wo havo |rrovocab|y o|octod not to ava|| ourso|vos ot th|s accommodat|on a||ow|ng tor do|ayod adopt|on ot now or rov|sod account|ng standards, and,
thorotoro, wo w||| bo subjoct to tho samo now or rov|sod account|ng standards as othor pub||c compan|os that aro not omorg|ng growth compan|os.
l| currency exchange rates |luctuate substantIally In the |uture, our operatIng results, whIch are reported In U.8. dollars, could be adversely a||ected.
As wo cont|nuo to oxpand our |ntornat|ona| oporat|ons, wo w||| bocomo moro oxposod to tho ottocts ot t|uctuat|ons |n curroncy oxchango ratos. Wo |ncur
oxponsos tor omp|oyoo componsat|on and othor oporat|ng oxponsos at our |ntornat|ona| |ocat|ons |n tho |oca| curroncy, and accopt paymont trom advort|sors or data
partnors |n curronc|os othor than tho U.3. do||ar. 3|nco wo conduct bus|noss |n

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1abIo ot Contonta
curronc|os othor than U.3. do||ars but roport our oporat|ng rosu|ts |n U.3. do||ars, wo taco oxposuro to t|uctuat|ons |n curroncy oxchango ratos. Consoquont|y, oxchango
rato t|uctuat|ons botwoon tho U.3. do||ar and othor curronc|os cou|d havo a mator|a| |mpact on our oporat|ng rosu|ts.
Our busIness Is subject to the rIsks o| earthquakes, |Ire, power outages, |loods and other catastrophIc events, and to InterruptIon by man-made problems
such as terrorIsm.
A s|gn|t|cant natura| d|sastor, such as an oarthquako, t|ro, t|ood or s|gn|t|cant powor outago cou|d havo a mator|a| advorso |mpact on our bus|noss, oporat|ng
rosu|ts, and t|nanc|a| cond|t|on. Our hoadquartors and corta|n ot our co-|ocatod data contor tac|||t|os aro |ocatod |n tho 3an |ranc|sco 3ay Aroa, a rog|on known tor
so|sm|c act|v|ty. 0osp|to any procaut|ons wo may tako, tho occurronco ot a natura| d|sastor or othor unant|c|patod prob|oms at our data contors cou|d rosu|t |n |ongthy
|ntorrupt|ons |n our sorv|cos. ln add|t|on, acts ot torror|sm and othor goo-po||t|ca| unrost cou|d causo d|srupt|ons |n our bus|noss. A|| ot tho atoromont|onod r|sks may bo
turthor |ncroasod |t our d|sastor rocovory p|ans provo to bo |nadoquato. Wo havo |mp|omontod a d|sastor rocovory program, wh|ch a||ows us to movo product|on to a
back-up data contor |n tho ovont ot a catastropho. A|though th|s program |s tunct|ona|, wo do not curront|y sorvo notwork tratt|c oqua||y trom oach data contor, so |t our
pr|mary data contor shuts down, thoro w||| bo a por|od ot t|mo that our products or sorv|cos, or corta|n ot our products or sorv|cos, w||| roma|n |naccoss|b|o to our usors
or our usors may oxpor|onco sovoro |ssuos accoss|ng our products and sorv|cos.
Wo do not carry bus|noss |ntorrupt|on |nsuranco sutt|c|ont to componsato us tor tho potont|a||y s|gn|t|cant |ossos, |nc|ud|ng tho potont|a| harm to our bus|noss
that may rosu|t trom |ntorrupt|ons |n our ab|||ty to prov|do our products and sorv|cos.
We may have exposure to greater than antIcIpated tax lIabIlItIes, whIch could adversely Impact our operatIng results.
Our |ncomo tax ob||gat|ons aro basod |n part on our corporato oporat|ng structuro, |nc|ud|ng tho mannor |n wh|ch wo dovo|op, va|uo and uso our |nto||octua|
proporty and tho scopo ot our |ntornat|ona| oporat|ons. 1ho tax |aws app||cab|o to our |ntornat|ona| bus|noss act|v|t|os, |nc|ud|ng tho |aws ot tho Un|tod 3tatos and othor
jur|sd|ct|ons, aro subjoct to |ntorprotat|on. 1ho tax|ng author|t|os ot tho jur|sd|ct|ons |n wh|ch wo oporato may cha||ongo our mothodo|og|os tor va|u|ng dovo|opod
tochno|ogy (or othor |ntang|b|o assots) or |ntorcompany arrangomonts, wh|ch cou|d |ncroaso our wor|dw|do ottoct|vo tax rato and harm our t|nanc|a| cond|t|on and
oporat|ng rosu|ts. Wo aro subjoct to rov|ow and aud|t by U.3. todora| and stato and toro|gn tax author|t|os. 1ax author|t|os may d|sagroo w|th corta|n pos|t|ons wo havo
takon and any advorso outcomo ot such a rov|ow or aud|t cou|d havo a nogat|vo ottoct on our t|nanc|a| pos|t|on and oporat|ng rosu|ts. ln add|t|on, our tuturo |ncomo taxos
cou|d bo advorso|y attoctod by oarn|ngs bo|ng |owor than ant|c|patod |n jur|sd|ct|ons that havo |owor statutory tax ratos and h|ghor than ant|c|patod |n jur|sd|ct|ons that
havo h|ghor statutory tax ratos, by changos |n tho va|uat|on ot our dotorrod tax assots and ||ab|||t|os, or by changos |n tax |aws, rogu|at|ons or account|ng pr|nc|p|os. 1ax
oxponsos, or d|sputos w|th tax author|t|os, cou|d advorso|y |mpact our oporat|ng rosu|ts.
l| our goodwIll or IntangIble assets become ImpaIred, we may be requIred to record a sIgnI|Icant charge to earnIngs.
Undor GAAl, wo rov|ow our |ntang|b|o assots tor |mpa|rmont whon ovonts or changos |n c|rcumstancos |nd|cato tho carry|ng va|uo may not bo rocovorab|o.
Goodw||| |s roqu|rod to bo tostod tor |mpa|rmont at |oast annua||y. As ot 1uno 80, 2018, wo had rocordod a tota| ot $178.2 m||||on ot goodw||| and |ntang|b|o assots ro|atod
to our acqu|s|t|ons. An advorso chango |n markot cond|t|ons, part|cu|ar|y |t such chango has tho ottoct ot chang|ng ono ot our cr|t|ca| assumpt|ons or ost|matos, cou|d
rosu|t |n a

42
1abIo ot Contonta
chango to tho ost|mat|on ot ta|r va|uo that cou|d rosu|t |n an |mpa|rmont chargo to our goodw||| or |ntang|b|o assots. Any such mator|a| chargos may havo a mator|a|
nogat|vo |mpact on our oporat|ng rosu|ts.
Our abIlIty to use our net operatIng loss carry|orwards and certaIn other tax attrIbutes may be lImIted.
As ot 0ocombor 81, 2012, wo had U.3. todora| not oporat|ng |oss carrytorwards ot approx|mato|y $208.8 m||||on and stato not oporat|ng |oss carrytorwards ot
approx|mato|y $210.7 m||||on. Undor 3oct|ons 882 and 888 ot lntorna| lovonuo Codo ot 1080, as amondod, or tho Codo, |t a corporat|on undorgoos an ownorsh|p
chango,' tho corporat|on's ab|||ty to uso |ts pro-chango not oporat|ng |oss carrytorwards and othor pro-chango tax attr|butos, such as rosoarch tax crod|ts, to ottsot |ts
post-chango |ncomo and taxos may bo ||m|tod. ln gonora|, an ownorsh|p chango' occurs |t thoro |s a cumu|at|vo chango |n our ownorsh|p by b% sharoho|dors' that
oxcoods b0 porcontago po|nts ovor a ro|||ng throo-yoar por|od. 3|m||ar ru|os may app|y undor stato tax |aws. ln tho ovont that |t |s dotorm|nod that wo havo |n tho past
oxpor|oncod an ownorsh|p chango, or |t wo oxpor|onco ono or moro ownorsh|p changos as a rosu|t ot th|s ottor|ng or tuturo transact|ons |n our stock, thon wo may bo
||m|tod |n our ab|||ty to uso our not oporat|ng |oss carrytorwards and othor tax assots to roduco taxos owod on tho not taxab|o |ncomo that wo oarn. Any such ||m|tat|ons
on tho ab|||ty to uso our not oporat|ng |oss carrytorwards and othor tax assots cou|d advorso|y |mpact our bus|noss, t|nanc|a| cond|t|on and oporat|ng rosu|ts.
Riaka RoIatod to Ownorahi ot Our Common 5tock and thia Ottoring
ExIstIng executIve o||Icers, dIrectors and holders o| 5 or more o| our common stock wIll collectIvely bene|IcIally own o| our common stock and
contInue to have substantIal control over us a|ter thIs o||erIng, whIch wIll lImIt your abIlIty to In|luence the outcome o| Important transactIons, IncludIng a
change In control.
Our d|roctors, oxocut|vo ott|cors and oach ot our stockho|dors who own groator than b% ot our outstand|ng common stock and tho|r att|||atos, |n tho aggrogato,
w||| bonot|c|a||y own approx|mato|y % ot tho outstand|ng sharos ot our common stock attor th|s ottor|ng, basod on tho numbor ot sharos outstand|ng as ot 1uno 80,
2018. As a rosu|t, thoso stockho|dors, |t act|ng togothor, w||| bo ab|o to |nt|uonco or contro| mattors roqu|r|ng approva| by our stockho|dors, |nc|ud|ng tho o|oct|on ot
d|roctors and tho approva| ot morgors, acqu|s|t|ons or othor oxtraord|nary transact|ons. 1hoy may a|so havo |ntorosts that d|ttor trom yours and may voto |n a way w|th
wh|ch you d|sagroo and wh|ch may bo advorso to your |ntorosts. 1h|s concontrat|on ot ownorsh|p may havo tho ottoct ot do|ay|ng, provont|ng or dotorr|ng a chango |n
contro| ot our company, cou|d dopr|vo our stockho|dors ot an opportun|ty to roco|vo a prom|um tor tho|r common stock as part ot a sa|o ot our company and m|ght
u|t|mato|y attoct tho markot pr|co ot our common stock.
AntI-takeover provIsIons contaIned In our amended and restated certI|Icate o| IncorporatIon and amended and restated bylaws, as well as provIsIons o|
elaware law, could ImpaIr a takeover attempt.
Our amondod and rostatod cort|t|cato ot |ncorporat|on, amondod and rostatod by|aws and 0o|awaro |aw conta|n or w||| conta|n prov|s|ons wh|ch cou|d havo tho
ottoct ot rondor|ng moro d|tt|cu|t, do|ay|ng, or provont|ng an acqu|s|t|on doomod undos|rab|o by our board ot d|roctors. Among othor th|ngs, our amondod and rostatod
cort|t|cato ot |ncorporat|on and amondod and rostatod by|aws w||| |nc|udo prov|s|ons:



croat|ng a c|ass|t|od board ot d|roctors whoso mombors sorvo staggorod throo-yoar torms,




author|z|ng b|ank chock' protorrod stock, wh|ch cou|d bo |ssuod by our board ot d|roctors w|thout stockho|dor approva| and may conta|n vot|ng, ||qu|dat|on,
d|v|dond and othor r|ghts supor|or to our common stock,

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1abIo ot Contonta


||m|t|ng tho ||ab|||ty ot, and prov|d|ng |ndomn|t|cat|on to, our d|roctors and ott|cors,



||m|t|ng tho ab|||ty ot our stockho|dors to ca|| and br|ng bus|noss botoro spoc|a| moot|ngs,




roqu|r|ng advanco not|co ot stockho|dor proposa|s tor bus|noss to bo conductod at moot|ngs ot our stockho|dors and tor nom|nat|ons ot cand|datos tor
o|oct|on to our board ot d|roctors, and



contro|||ng tho procoduros tor tho conduct and schodu||ng ot board ot d|roctors and stockho|dor moot|ngs.
1hoso prov|s|ons, a|ono or togothor, cou|d do|ay or provont host||o takoovors and changos |n contro| or changos |n our managomont.
As a 0o|awaro corporat|on, wo aro a|so subjoct to prov|s|ons ot 0o|awaro |aw, |nc|ud|ng 3oct|on 208 ot tho 0o|awaro Gonora| Corporat|on |aw, wh|ch provonts
corta|n stockho|dors ho|d|ng moro than 1b% ot our outstand|ng common stock trom ongag|ng |n corta|n bus|noss comb|nat|ons w|thout approva| ot tho ho|dors ot at
|oast two-th|rds ot our outstand|ng common stock not ho|d by such 1b% or groator stockho|dor.
Any prov|s|on ot our amondod and rostatod cort|t|cato ot |ncorporat|on, amondod and rostatod by|aws or 0o|awaro |aw that has tho ottoct ot do|ay|ng, provont|ng
or dotorr|ng a chango |n contro| cou|d ||m|t tho opportun|ty tor our stockho|dors to roco|vo a prom|um tor tho|r sharos ot our common stock, and cou|d a|so attoct tho
pr|co that somo |nvostors aro w||||ng to pay tor our common stock.
An actIve tradIng market |or our common stock may never develop or be sustaIned.
Wo |ntond to app|y tor tho ||st|ng ot our common stock on tho undor tho symbo| 1W1l'. |owovor, wo cannot assuro you that an act|vo trad|ng
markot tor our common stock w||| dovo|op on that oxchango or o|sowhoro or, |t dovo|opod, that any markot w||| bo susta|nod. Accord|ng|y, wo cannot assuro you ot tho
||ko||hood that an act|vo trad|ng markot tor our common stock w||| dovo|op or bo ma|nta|nod, tho ||qu|d|ty ot any trad|ng markot, your ab|||ty to so|| your sharos ot our
common stock whon dos|rod or tho pr|cos that you may obta|n tor your sharos.
1he market prIce o| our common stock may be volatIle, and you could lose all or part o| your Investment.
lr|or to th|s ottor|ng, thoro has boon no pub||c markot tor sharos ot our common stock. 1ho |n|t|a| pub||c ottor|ng pr|co ot our common stock w||| bo dotorm|nod
through nogot|at|on botwoon us and tho undorwr|tors. 1h|s pr|co w||| not nocossar||y rot|oct tho pr|co at wh|ch |nvostors |n tho markot w||| bo w||||ng to buy and so||
sharos ot our common stock to||ow|ng th|s ottor|ng. ln add|t|on, tho markot pr|co ot our common stock to||ow|ng th|s ottor|ng |s ||ko|y to bo h|gh|y vo|at||o and cou|d bo
subjoct to w|do t|uctuat|ons |n rosponso to var|ous tactors, somo ot wh|ch aro boyond our contro|.
1ho markot pr|co ot our common stock to||ow|ng th|s ottor|ng may t|uctuato substant|a||y and may bo h|ghor or |owor than tho |n|t|a| pub||c ottor|ng pr|co. 1ho
markot pr|co ot our common stock to||ow|ng th|s ottor|ng w||| dopond on a numbor ot tactors many ot wh|ch aro boyond our contro| and may not bo ro|atod to our
oporat|ng portormanco. 1hoso t|uctuat|ons cou|d causo you to |oso a|| or part ot your |nvostmont |n our common stock s|nco you m|ght bo unab|o to so|| your sharos at
or abovo tho pr|co you pa|d |n th|s ottor|ng. |actors that cou|d causo t|uctuat|ons |n tho markot pr|co ot our common stock |nc|udo tho to||ow|ng:



pr|co and vo|umo t|uctuat|ons |n tho ovora|| stock markot trom t|mo to t|mo,



vo|at|||ty |n tho markot pr|cos and trad|ng vo|umos ot tochno|ogy stocks,

44
1abIo ot Contonta


changos |n oporat|ng portormanco and stock markot va|uat|ons ot othor tochno|ogy compan|os gonora||y, or thoso |n our |ndustry |n part|cu|ar,



sa|os ot sharos ot our common stock by us or our stockho|dors,




ta||uro ot socur|t|os ana|ysts to ma|nta|n covorago ot us, changos |n t|nanc|a| ost|matos by socur|t|os ana|ysts who to||ow our company, or our ta||uro to moot
thoso ost|matos or tho oxpoctat|ons ot |nvostors,



tho t|nanc|a| projoct|ons wo may prov|do to tho pub||c, any changos |n thoso projoct|ons or our ta||uro to moot thoso projoct|ons,



announcomonts by us or our compot|tors ot now products or sorv|cos,



tho pub||c's roact|on to our pross ro|oasos, othor pub||c announcomonts and t|||ngs w|th tho 3EC,



rumors and markot spocu|at|on |nvo|v|ng us or othor compan|os |n our |ndustry,



actua| or ant|c|patod changos |n our oporat|ng rosu|ts or t|uctuat|ons |n our oporat|ng rosu|ts,



actua| or ant|c|patod dovo|opmonts |n our bus|noss, our compot|tors' bus|nossos or tho compot|t|vo |andscapo gonora||y,



||t|gat|on |nvo|v|ng us, our |ndustry or both, or |nvost|gat|ons by rogu|ators |nto our oporat|ons or thoso ot our compot|tors,



dovo|opmonts or d|sputos concorn|ng our |nto||octua| proporty or othor propr|otary r|ghts,



announcod or comp|otod acqu|s|t|ons ot bus|nossos or tochno|og|os by us or our compot|tors,



now |aws or rogu|at|ons or now |ntorprotat|ons ot ox|st|ng |aws or rogu|at|ons app||cab|o to our bus|noss,



changos |n account|ng standards, po||c|os, gu|do||nos, |ntorprotat|ons or pr|nc|p|os,



any s|gn|t|cant chango |n our managomont, and



gonora| oconom|c cond|t|ons and s|ow or nogat|vo growth ot our markots.
ln add|t|on, |n tho past, to||ow|ng por|ods ot vo|at|||ty |n tho ovora|| markot and tho markot pr|co ot a part|cu|ar company's socur|t|os, socur|t|os c|ass act|on
||t|gat|on has otton boon |nst|tutod aga|nst thoso compan|os. 1h|s ||t|gat|on, |t |nst|tutod aga|nst us, cou|d rosu|t |n substant|a| costs and a d|vors|on ot our
managomont's attont|on and rosourcos.
A total o| , or , o| our outstandIng shares o| our common stock a|ter thIs o||erIng wIll be restrIcted |rom ImmedIate resale, but may be sold on a
stock exchange In the near |uture. 1he large number o| shares elIgIble |or publIc sale or subject to rIghts requIrIng us to regIster them |or publIc sale could
depress the market prIce o| our common stock.
1ho markot pr|co ot our common stock cou|d doc||no as a rosu|t ot sa|os ot a |argo numbor ot sharos ot our common stock |n tho markot attor th|s ottor|ng, and
tho porcopt|on that thoso sa|os cou|d occur may a|so dopross tho markot pr|co ot our common stock. 3asod on sharos ot our cap|ta| stock outstand|ng as ot 1uno 80,
2018, wo w||| havo sharos ot our common stock outstand|ng attor th|s ottor|ng. Our oxocut|vo ott|cors, d|roctors and tho ho|dors ot substant|a||y a|| ot our cap|ta|
stock and socur|t|os convort|b|o |nto or oxchangoab|o tor our cap|ta| stock havo ontorod |nto markot standott agroomonts w|th us or w||| ontor |nto |ock-up agroomonts
w|th tho undorwr|tors undor wh|ch thoy havo agrood or w||| agroo, subjoct to spoc|t|c oxcopt|ons, not to so|| any ot our stock tor 180 days to||ow|ng tho dato ot th|s
prospoctus. As a rosu|t ot thoso agroomonts and tho prov|s|ons ot our |nvostors' r|ghts

4b
1abIo ot Contonta
agroomont doscr|bod turthor |n tho soct|on t|t|od 0oscr|pt|on ot Cap|ta| 3tock-log|strat|on l|ghts,' and subjoct to tho prov|s|ons ot lu|o 144 or lu|o 701, sharos ot our
common stock w||| bo ava||ab|o tor sa|o |n tho pub||c markot as to||ows:




bog|nn|ng on tho dato ot th|s prospoctus, a|| sharos ot our common stock so|d |n th|s ottor|ng w||| bo |mmod|ato|y ava||ab|o tor sa|o |n tho pub||c
markot,




bog|nn|ng as oar|y as |obruary 1b, 2014, up to an aggrogato ot sharos ot our common stock that aro ho|d by our omp|oyoos who aro not oxocut|vo
ott|cors may bo o||g|b|o tor sa|o |n tho pub||c markot |n ordor to sat|sty tho |ncomo tax ob||gat|ons ot such omp|oyoos rosu|t|ng trom tho vost|ng and
sott|omont ot a port|on ot tho outstand|ng lro-2018 l3Us (or up to an aggrogato ot sharos ot our common stock ho|d by our omp|oyoos who aro not
oxocut|vo ott|cors |t wo chooso to undortako a not sott|omont ot a|| ot thoso awards to sat|sty a port|on ot such |ncomo tax ob||gat|ons), and




bog|nn|ng 181 days attor tho dato ot th|s prospoctus, tho roma|ndor ot tho sharos ot our common stock w||| bo o||g|b|o tor sa|o |n tho pub||c markot trom t|mo
to t|mo thoroattor, subjoct |n somo casos to tho vo|umo and othor rostr|ct|ons ot lu|o 144, as doscr|bod bo|ow.
Upon comp|ot|on ot th|s ottor|ng, stockho|dors own|ng an aggrogato ot sharos w||| bo ont|t|od, undor contracts prov|d|ng tor rog|strat|on r|ghts, to roqu|ro
us to rog|stor sharos ot our common stock ownod by thom tor pub||c sa|o |n tho Un|tod 3tatos. ln add|t|on, wo |ntond to t||o a rog|strat|on statomont to rog|stor
approx|mato|y sharos rosorvod tor tuturo |ssuanco undor our oqu|ty componsat|on p|ans. Upon ottoct|vonoss ot that rog|strat|on statomont, subjoct to tho
sat|stact|on ot app||cab|o oxorc|so por|ods and oxp|rat|on ot tho markot standott agroomonts and |ock-up agroomonts rotorrod to abovo, tho sharos ot our common stock
|ssuod upon oxorc|so ot outstand|ng stock opt|ons or tho vost|ng ot l3Us w||| bo ava||ab|o tor |mmod|ato rosa|o |n tho Un|tod 3tatos |n tho opon markot.
3a|os ot our common stock as rostr|ct|ons ond or pursuant to rog|strat|on r|ghts may mako |t moro d|tt|cu|t tor us to so|| oqu|ty socur|t|os |n tho tuturo at a t|mo
and at a pr|co that wo doom appropr|ato. 1hoso sa|os a|so cou|d causo tho pr|co ot our common stock to ta|| and mako |t moro d|tt|cu|t tor you to so|| sharos ot our
common stock.
ln makIng your Investment decIsIon, you should understand that we and the underwrIters have not authorIzed any other party to provIde you wIth
In|ormatIon concernIng us or thIs o||erIng.
You shou|d carotu||y ova|uato a|| ot tho |ntormat|on |n th|s prospoctus. Wo havo |n tho past roco|vod, and may cont|nuo to roco|vo, a h|gh dogroo ot mod|a
covorago, |nc|ud|ng covorago that |s not d|roct|y attr|butab|o to statomonts mado by our ott|cors and omp|oyoos, that |ncorroct|y roports on statomonts mado by our
ott|cors or omp|oyoos, or that |s m|s|oad|ng as a rosu|t ot om|tt|ng |ntormat|on prov|dod by us, our ott|cors or omp|oyoos. Wo and tho undorwr|tors havo not author|zod
any othor party to prov|do you w|th |ntormat|on concorn|ng us or th|s ottor|ng.
We may Invest or spend the proceeds o| thIs o||erIng In ways wIth whIch you may not agree or In ways whIch may not yIeld a return.
1ho not procoods trom tho sa|o ot our sharos ot our common stock by us |n th|s ottor|ng may bo usod tor gonora| corporato purposos, |nc|ud|ng work|ng cap|ta|,
oporat|ng oxponsos and cap|ta| oxpond|turos. Wo ant|c|pato mak|ng cap|ta| oxpond|turos |n 2018 ot approx|mato|y $22b m||||on to $27b m||||on, and wo may uso a
port|on ot tho not procoods to tund our ant|c|patod cap|ta| oxpond|turos. Wo a|so may uso a port|on ot tho not procoods to sat|sty our ant|c|patod tax w|thho|d|ng and
rom|ttanco ob||gat|ons ro|atod to tho sott|omont ot our outstand|ng l3Us. Add|t|ona||y, wo may uso a port|on ot tho not procoods to acqu|ro bus|nossos, products,
sorv|cos or tochno|og|os. |owovor, wo do not havo

40
1abIo ot Contonta
agroomonts or comm|tmonts tor any spoc|t|c mator|a| acqu|s|t|ons at th|s t|mo. Our managomont w||| havo cons|dorab|o d|scrot|on |n tho app||cat|on ot tho not procoods,
and you w||| not havo tho opportun|ty, as part ot your |nvostmont doc|s|on, to assoss whothor tho procoods aro bo|ng usod appropr|ato|y. Unt|| tho not procoods aro
usod, thoy may bo p|acod |n |nvostmonts that do not produco s|gn|t|cant |ncomo or that may |oso va|uo.
Purchasers In thIs o||erIng wIll experIence ImmedIate and substantIal dIlutIon In the book value o| theIr Investment.
1ho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s
prospoctus, |s substant|a||y h|ghor than tho not tang|b|o book va|uo por sharo ot our outstand|ng common stock |mmod|ato|y attor th|s ottor|ng. 1horotoro, |t you
purchaso our common stock |n th|s ottor|ng, you w||| |ncur |mmod|ato d||ut|on ot $ |n tho not tang|b|o book va|uo por sharo trom tho pr|co you pa|d. ln add|t|on,
purchasors who bought sharos trom us |n th|s ottor|ng w||| havo contr|butod % ot tho tota| cons|dorat|on pa|d to us by our stockho|dors to purchaso sharos ot our
common stock, |n oxchango tor acqu|r|ng approx|mato|y % ot our outstand|ng sharos ot our cap|ta| stock as ot 1uno 80, 2018 attor g|v|ng ottoct to th|s ottor|ng. 1ho
vost|ng ot l3Us and tho oxorc|so ot outstand|ng stock opt|ons and a warrant w||| rosu|t |n turthor d||ut|on.
l| securItIes or Industry analysts do not publIsh or cease publIshIng research or reports about us, our busIness or our market, or I| they change theIr
recommendatIons regardIng our common stock adversely, the prIce o| our common stock and tradIng volume could declIne.
1ho trad|ng markot tor our common stock w||| bo |nt|uoncod by tho rosoarch and roports that socur|t|os or |ndustry ana|ysts may pub||sh about us, our
bus|noss, our markot or our compot|tors. lt any ot tho ana|ysts who may covor us chango tho|r rocommondat|on rogard|ng our common stock advorso|y, or prov|do moro
tavorab|o ro|at|vo rocommondat|ons about our compot|tors, tho pr|co ot our common stock wou|d ||ko|y doc||no. lt any ana|yst who may covor us woro to coaso covorago
ot our company or ta|| to rogu|ar|y pub||sh roports on us, wo cou|d |oso v|s|b|||ty |n tho t|nanc|a| markots, wh|ch |n turn cou|d causo tho pr|co ot our common stock or
trad|ng vo|umo to doc||no.
We do not expect to declare any dIvIdends In the |oreseeable |uture.
Wo do not ant|c|pato doc|ar|ng any cash d|v|donds to ho|dors ot our common stock |n tho torosooab|o tuturo. Consoquont|y, |nvostors may nood to ro|y on sa|os
ot tho|r common stock attor pr|co approc|at|on, wh|ch may novor occur, as tho on|y way to roa||zo any tuturo ga|ns on tho|r |nvostmont. lnvostors sook|ng cash d|v|donds
shou|d not purchaso our common stock.
PrIor to thIs o||erIng, there has been lImIted tradIng o| our common stock at prIces that may be hIgher than what our common stock wIll trade at once It Is
lIsted.
lr|or to th|s ottor|ng, our sharos havo not boon ||stod on any stock oxchango or othor pub||c trad|ng markot, but thoro has boon somo trad|ng ot our socur|t|os |n
pr|vato trados. 1hoso trados woro spocu|at|vo, and tho trad|ng pr|co ot our socur|t|os |n thoso trados was pr|vato|y nogot|atod. Wo cannot assuro you that tho pr|co ot our
common stock w||| oqua| or oxcood tho pr|co at wh|ch our socur|t|os havo tradod pr|or to th|s ottor|ng.

47
1abIo ot Contonta
5PEC|AL NO1E RECARD|NC FORWARD-LOOK|NC 51A1ENEN15
1h|s prospoctus conta|ns torward-|ook|ng statomonts w|th|n tho moan|ng ot tho todora| socur|t|os |aws, wh|ch statomonts |nvo|vo substant|a| r|sks and
uncorta|nt|os. |orward-|ook|ng statomonts gonora||y ro|ato to tuturo ovonts or our tuturo t|nanc|a| or oporat|ng portormanco. ln somo casos, you can |dont|ty torward-
|ook|ng statomonts bocauso thoy conta|n words such as may,' w|||,' shou|d,' oxpocts,' p|ans,' ant|c|patos,' cou|d,' |ntonds,' targot,' projocts,' contomp|atos,'
bo||ovos,' ost|matos,' prod|cts,' potont|a|' or cont|nuo' or tho nogat|vo ot thoso words or othor s|m||ar torms or oxpross|ons that concorn our oxpoctat|ons, stratogy,
p|ans or |ntont|ons. |orward-|ook|ng statomonts conta|nod |n th|s prospoctus |nc|udo, but aro not ||m|tod to, statomonts about:



our ab|||ty to attract and rota|n usors and |ncroaso tho |ovo| ot ongagomont ot our usors,



our ab|||ty to dovo|op or acqu|ro now products and sorv|cos, |mprovo our ox|st|ng products and sorv|cos and |ncroaso tho va|uo ot our products and sorv|cos,



our ab|||ty to attract advort|sors to our p|attorm and |ncroaso tho amount that advort|sors spond w|th us,



our oxpoctat|ons rogard|ng our usor growth rato and tho usago ot our mob||o app||cat|ons,



our ab|||ty to |ncroaso our rovonuo and our rovonuo growth rato,



our ab|||ty to |mprovo usor monot|zat|on, |nc|ud|ng advort|s|ng rovonuo por t|mo||no v|ow,



our tuturo t|nanc|a| portormanco, |nc|ud|ng tronds |n cost por ad ongagomont, rovonuo, cost ot rovonuo, oporat|ng oxponsos and |ncomo taxos,



tho ottocts ot soasona| tronds on our rosu|ts ot oporat|ons,



tho sutt|c|oncy ot our cash and cash oqu|va|onts and cash gonoratod trom oporat|ons to moot our work|ng cap|ta| and cap|ta| oxpond|turo roqu|romonts,



our ab|||ty to t|mo|y and ottoct|vo|y sca|o and adapt our ox|st|ng tochno|ogy and notwork |ntrastructuro,



our ab|||ty to succosstu||y acqu|ro and |ntograto compan|os and assots, and



our ab|||ty to succosstu||y ontor now markots and manago our |ntornat|ona| oxpans|on.
Wo caut|on you that tho torogo|ng ||st may not conta|n a|| ot tho torward-|ook|ng statomonts mado |n th|s prospoctus.
You shou|d not ro|y upon torward-|ook|ng statomonts as prod|ct|ons ot tuturo ovonts. Wo havo basod tho torward-|ook|ng statomonts conta|nod |n th|s
prospoctus pr|mar||y on our curront oxpoctat|ons and projoct|ons about tuturo ovonts and tronds that wo bo||ovo may attoct our bus|noss, t|nanc|a| cond|t|on, rosu|ts ot
oporat|ons and prospocts. 1ho outcomo ot tho ovonts doscr|bod |n thoso torward-|ook|ng statomonts |s subjoct to r|sks, uncorta|nt|os and othor tactors doscr|bod |n tho
soct|on t|t|od l|sk |actors' and o|sowhoro |n th|s prospoctus. Voroovor, wo oporato |n a vory compot|t|vo and rap|d|y chang|ng onv|ronmont. low r|sks and
uncorta|nt|os omorgo trom t|mo to t|mo and |t |s not poss|b|o tor us to prod|ct a|| r|sks and uncorta|nt|os that cou|d havo an |mpact on tho torward-|ook|ng statomonts
conta|nod |n th|s prospoctus. Wo cannot assuro you that tho rosu|ts, ovonts and c|rcumstancos rot|octod |n tho torward-|ook|ng statomonts w||| bo ach|ovod or occur,
and actua| rosu|ts, ovonts or c|rcumstancos cou|d d|ttor mator|a||y trom thoso doscr|bod |n tho torward-|ook|ng statomonts.
1ho torward-|ook|ng statomonts mado |n th|s prospoctus ro|ato on|y to ovonts as ot tho dato on wh|ch tho statomonts aro mado. Wo undortako no ob||gat|on to
updato any torward-|ook|ng statomonts mado |n th|s prospoctus to rot|oct ovonts or c|rcumstancos attor tho dato ot th|s prospoctus or to rot|oct now |ntormat|on or tho
occurronco ot unant|c|patod ovonts, oxcopt as roqu|rod by |aw. Wo may not actua||y ach|ovo tho p|ans, |ntont|ons or oxpoctat|ons d|sc|osod |n our torward-|ook|ng
statomonts and you shou|d not p|aco unduo ro||anco on our torward-|ook|ng statomonts. Our torward-|ook|ng statomonts do not rot|oct tho potont|a| |mpact ot any tuturo
acqu|s|t|ons, morgors, d|spos|t|ons, jo|nt vonturos or |nvostmonts wo may mako.

48
1abIo ot Contonta
|NDu51RY DA1A AND CONPANY NE1R|C5
1h|s prospoctus conta|ns ost|matos and |ntormat|on concorn|ng our |ndustry, |nc|ud|ng markot s|zo and growth ratos ot tho markots |n wh|ch wo part|c|pato, that
aro basod on |ndustry pub||cat|ons and roports. 1h|s |ntormat|on |nvo|vos a numbor ot assumpt|ons and ||m|tat|ons, and you aro caut|onod not to g|vo unduo wo|ght to
thoso ost|matos. Wo havo not |ndopondont|y vor|t|od tho accuracy or comp|otonoss ot tho data conta|nod |n thoso |ndustry pub||cat|ons and roports. 1ho |ndustry |n
wh|ch wo oporato |s subjoct to a h|gh dogroo ot uncorta|nty and r|sk duo to var|oty ot tactors, |nc|ud|ng thoso doscr|bod |n tho l|sk |actors' soct|on. 1hoso and othor
tactors cou|d causo rosu|ts to d|ttor mator|a||y trom thoso oxprossod |n thoso pub||cat|ons and roports.
Wo rov|ow a numbor ot motr|cs, |nc|ud|ng VAUs, t|mo||no v|ows, t|mo||no v|ows por VAU and advort|s|ng rovonuo por t|mo||no v|ow, to ova|uato our bus|noss,
moasuro our portormanco, |dont|ty tronds attoct|ng our bus|noss, tormu|ato bus|noss p|ans and mako stratog|c doc|s|ons. 3oo tho soct|on t|t|od Vanagomont's
0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|on-Koy Votr|cs' tor a d|scuss|on ot how wo ca|cu|ato VAUs, t|mo||no v|ows, t|mo||no v|ows por
VAU and advort|s|ng rovonuo por t|mo||no v|ow.
1ho numbors ot act|vo usors and t|mo||no v|ows prosontod |n th|s prospoctus aro basod on |ntorna| company data. Wh||o thoso numbors aro basod on what wo
bo||ovo to bo roasonab|o ost|matos tor tho app||cab|o por|od ot moasuromont, thoro aro |nhoront cha||ongos |n moasur|ng usago and usor ongagomont across our |argo
usor baso around tho wor|d. |or oxamp|o, thoro aro a numbor ot ta|so or spam accounts |n ox|stonco on our p|attorm. Wo curront|y ost|mato that ta|so or spam
accounts roprosont |oss than b% ot our VAUs. |owovor, th|s ost|mato |s basod on an |ntorna| rov|ow ot a samp|o ot accounts and wo app|y s|gn|t|cant judgmont |n
mak|ng th|s dotorm|nat|on. As such, our ost|mat|on ot ta|so or spam accounts may not accurato|y roprosont tho actua| numbor ot such accounts, and tho actua| numbor
ot ta|so or spam accounts cou|d bo h|ghor than wo havo curront|y ost|matod. Wo aro cont|nua||y sook|ng to |mprovo our ab|||ty to ost|mato tho tota| numbor ot spam
accounts and o||m|nato thom trom tho ca|cu|at|on ot our act|vo usors. |or oxamp|o, wo mado an |mprovomont |n our spam dotoct|on capab|||t|os |n tho socond quartor ot
2018 and suspondod a |argo numbor ot accounts. 3pam accounts that wo havo |dont|t|od aro not |nc|udod |n tho act|vo usor numbors prosontod |n th|s prospoctus. Wo
troat mu|t|p|o accounts ho|d by a s|ng|o porson or organ|zat|on as mu|t|p|o usors tor purposos ot ca|cu|at|ng our act|vo usors bocauso wo porm|t poop|o and
organ|zat|ons to havo moro than ono account. Add|t|ona||y, somo accounts usod by organ|zat|ons aro usod by many poop|o w|th|n tho organ|zat|on. As such, tho
ca|cu|at|ons ot our act|vo usors may not accurato|y rot|oct tho actua| numbor ot poop|o or organ|zat|ons us|ng our p|attorm.
Our motr|cs aro a|so attoctod by app||cat|ons that automat|ca||y contact our sorvors tor rogu|ar updatos w|th no usor act|on |nvo|vod, and th|s act|v|ty can causo
our systom to count tho usors assoc|atod w|th such app||cat|ons as act|vo usors on tho day or days such contact occurs. ln tho throo months ondod 1uno 80, 2018,
approx|mato|y sovon porcont ot a|| act|vo usors usod app||cat|ons that havo tho capab|||ty to automat|ca||y contact our sorvors tor rogu|ar updatos. As such, tho
ca|cu|at|ons ot VAUs prosontod |n th|s prospoctus may bo attoctod as a rosu|t ot automatod act|v|ty. Wo oxpoct that tho porcontago ot act|vo usors that uso
app||cat|ons that havo tho capab|||ty to automat|ca||y contact our sorvors tor rogu|ar updatos w||| doc||no ovor t|mo, part|cu|ar|y as usago ot our mob||o app||cat|ons
|ncroasos.
ln add|t|on, our data rogard|ng usor goograph|c |ocat|on tor purposos ot roport|ng tho goograph|c |ocat|on ot our VAUs |s basod on tho ll addross assoc|atod
w|th tho account whon a usor |n|t|a||y rog|storod tho account on 1w|ttor. 1ho ll addross may not a|ways accurato|y rot|oct a usor's actua| |ocat|on at tho t|mo ot usor
ongagomont on our p|attorm.
Wo prosont and d|scuss t|mo||no v|ows |n tho s|x months ondod 1uno 80, 2012, but wo d|d not track a|| ot tho t|mo||no v|ows on our mob||o app||cat|ons dur|ng
tho throo months ondod Varch 81,

40
1abIo ot Contonta
2012. Wo havo |nc|udod |n th|s prospoctus ost|matos tor actua| t|mo||no v|ows |n tho throo months ondod Varch 81, 2012 tor tho mob||o app||cat|ons wo d|d not track.
Wo bo||ovo thoso ost|matos to bo roasonab|o, but actua| numbors cou|d d|ttor trom our ost|matos. ln add|t|on, t|mo||no v|ows |n tho throo months and s|x months ondod
1uno 80, 2012 oxc|udo an |mmator|a| numbor ot t|mo||no v|ows tor our mob||o app||cat|ons, corta|n ot wh|ch woro not tu||y trackod unt|| 1uno 2012.
Wo rogu|ar|y rov|ow and may adjust our procossos tor ca|cu|at|ng our |ntorna| motr|cs to |mprovo tho|r accuracy. Our moasuros ot usor growth and usor
ongagomont may d|ttor trom ost|matos pub||shod by th|rd part|os or trom s|m||ar|y-t|t|od motr|cs ot our compot|tors duo to d|ttoroncos |n mothodo|ogy.

b0
1abIo ot Contonta
u5E OF PROCEED5
Wo ost|mato that tho not procoods to us trom tho sa|o ot sharos ot our common stock |n th|s ottor|ng w||| bo approx|mato|y $ , basod upon tho assumod
|n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, and attor
doduct|ng ost|matod undorwr|t|ng d|scounts and comm|ss|ons and ost|matod ottor|ng oxponsos payab|o by us. lt tho undorwr|tors' opt|on to purchaso add|t|ona| sharos
ot our common stock trom us |s oxorc|sod |n tu||, wo ost|mato that tho not procoods to us wou|d bo approx|mato|y $ , attor doduct|ng ost|matod undorwr|t|ng
d|scounts and comm|ss|ons and ost|matod ottor|ng oxponsos payab|o by us.
Each $1.00 |ncroaso or docroaso |n tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo wou|d |ncroaso or docroaso tho not procoods that wo roco|vo
trom th|s ottor|ng by approx|mato|y $ , assum|ng that tho numbor ot sharos ottorod by us, as sot torth on tho covor pago ot th|s prospoctus, roma|ns tho samo and
attor doduct|ng tho ost|matod undorwr|t|ng d|scounts and comm|ss|ons payab|o by us. 3|m||ar|y, oach |ncroaso or docroaso ot ono m||||on |n tho numbor ot sharos ot our
common stock ottorod by us wou|d |ncroaso or docroaso tho not procoods that wo roco|vo trom th|s ottor|ng by approx|mato|y $ , assum|ng tho assumod |n|t|a|
pub||c ottor|ng pr|co roma|ns tho samo and attor doduct|ng tho ost|matod undorwr|t|ng d|scounts and comm|ss|ons payab|o by us.
1ho pr|nc|pa| purposos ot th|s ottor|ng aro to |ncroaso our cap|ta||zat|on and t|nanc|a| t|ox|b|||ty, croato a pub||c markot tor our common stock and onab|o accoss
to tho pub||c oqu|ty markots tor us and our stockho|dors.
Wo |ntond to uso tho not procoods trom th|s ottor|ng tor gonora| corporato purposos, |nc|ud|ng work|ng cap|ta|, oporat|ng oxponsos and cap|ta| oxpond|turos.
Wo ant|c|pato mak|ng cap|ta| oxpond|turos |n 2018 ot approx|mato|y $22b m||||on to $27b m||||on, and wo may uso a port|on ot tho not procoods to tund our ant|c|patod
cap|ta| oxpond|turos. Wo a|so may uso a port|on ot tho not procoods to sat|sty our ant|c|patod tax w|thho|d|ng and rom|ttanco ob||gat|ons ro|atod to tho sott|omont ot our
outstand|ng lro-2018 l3Us, or wo may chooso to a||ow our omp|oyoos who aro not oxocut|vo ott|cors ho|d|ng such awards to so|| sharos ot our common stock |n tho
pub||c markot to sat|sty tho|r |ncomo tax ob||gat|ons ro|atod to tho vost|ng and sott|omont ot such awards. 3asod on tho numbor ot lro-2018 l3Us outstand|ng as ot
1uno 80, 2018 tor wh|ch tho sorv|co cond|t|on had boon sat|st|od on that dato, and assum|ng (|) tho portormanco cond|t|on had boon sat|st|od on that dato, (||) wo chooso
to undortako a not sott|omont ot a|| ot our lro-2018 l3Us and (|||) that tho pr|co ot our common stock at tho t|mo ot sott|omont was oqua| to $ , wh|ch |s tho
m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, wo ost|mato that th|s tax ob||gat|on on tho |n|t|a| sott|omont dato wou|d bo
approx|mato|y $ |n tho aggrogato. 1ho amount ot th|s ob||gat|on cou|d bo h|ghor or |owor, dopond|ng on tho pr|co ot sharos ot our common stock on tho |n|t|a|
sott|omont dato tor tho lro-2018 l3Us. Add|t|ona||y, wo may uso a port|on ot tho not procoods to acqu|ro bus|nossos, products, sorv|cos or tochno|og|os. |owovor,
oxcopt tor our proposod acqu|s|t|on ot Volub |n oxchango tor sharos ot our common stock, wo do not havo agroomonts or comm|tmonts tor any mator|a| acqu|s|t|ons at
th|s t|mo. Wo cannot spoc|ty w|th corta|nty tho part|cu|ar usos ot tho not procoods that wo w||| roco|vo trom th|s ottor|ng. Accord|ng|y, wo w||| havo broad d|scrot|on |n
us|ng thoso procoods. lond|ng tho uso ot procoods trom th|s ottor|ng as doscr|bod abovo, wo p|an to |nvost tho not procoods that wo roco|vo |n th|s ottor|ng |n short-torm
and |ong-torm |ntorost-boar|ng ob||gat|ons, |nc|ud|ng govornmont and |nvostmont-grado dobt socur|t|os and monoy markot tunds.
D|V|DEND POL|CY
Wo havo novor doc|arod or pa|d any cash d|v|donds on our cap|ta| stock. Wo curront|y |ntond to rota|n any tuturo oarn|ngs and do not oxpoct to pay any
d|v|donds |n tho torosooab|o tuturo. Any tuturo dotorm|nat|on to doc|aro cash d|v|donds w||| bo mado at tho d|scrot|on ot our board ot d|roctors, subjoct to app||cab|o |aws,
and w||| dopond on a numbor ot tactors, |nc|ud|ng our t|nanc|a| cond|t|on, rosu|ts ot oporat|ons, cap|ta| roqu|romonts, contractua| rostr|ct|ons, gonora| bus|noss
cond|t|ons and othor tactors that our board ot d|roctors may doom ro|ovant.

b1
Wo |ntond to uso tho not oo pro rr coods tr tt o rr mth|s ot oot tt o tt r| rr ng to tt r gonora rr | corp r ora rr t aa o purp r osos, |nc|ud|ng wo ww rk r |ng cap|ta|, opora rr t aa |ng ox oo ponsos and cap|ta| ox oo pond|turo rr s.
1abIo ot Contonta
CAP|1AL|ZA1|ON
1ho to||ow|ng tab|o sots torth cash and cash oqu|va|onts, as wo|| as our cap|ta||zat|on, as ot 1uno 80, 2018 as to||ows:



on an actua| bas|s,




on a pro torma bas|s, g|v|ng ottoct to (|) tho automat|c convors|on ot a|| outstand|ng sharos ot our C|ass A jun|or protorrod stock and our convort|b|o protorrod
stock |nto an aggrogato ot 888,000,000 sharos ot our common stock, wh|ch convors|on w||| occur |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, as |t
such convors|on had occurrod on 1uno 80, 2018, (||) tho rosu|t|ng roc|ass|t|cat|on ot tho rostr|ctod C|ass A jun|or protorrod stock ot $0.7 m||||on and protorrod
stock warrant ||ab|||ty ot $2.0 m||||on trom othor |ong-torm ||ab|||t|os to add|t|ona| pa|d-|n cap|ta|, (|||) stock-basod componsat|on oxponso ot $820.0 m||||on
assoc|atod w|th lro-2018 l3Us tor wh|ch tho sorv|co cond|t|on was sat|st|od as ot 1uno 80, 2018, and wh|ch wo oxpoct to rocord upon comp|ot|on ot th|s
ottor|ng, as doscr|bod |n tootnoto (1) bo|ow and (|v) tho t|||ng and ottoct|vonoss ot our amondod and rostatod cort|t|cato ot |ncorporat|on |n 0o|awaro, and




on a pro torma as adjustod bas|s, g|v|ng ottoct to tho pro torma adjustmonts sot torth abovo and tho sa|o and |ssuanco by us ot sharos ot our common
stock |n th|s ottor|ng, basod upon tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot
torth on tho covor pago ot th|s prospoctus, and attor doduct|ng ost|matod undorwr|t|ng d|scounts and comm|ss|ons and ost|matod ottor|ng oxponsos payab|o
by us.
You shou|d road th|s tab|o togothor w|th our conso||datod t|nanc|a| statomonts and ro|atod notos, and tho soct|ons t|t|od 3o|octod Conso||datod ||nanc|a| and
Othor 0ata' and Vanagomont's 0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons' that aro |nc|udod o|sowhoro |n th|s prospoctus.

Aa ot Juno 80, 2018
ActuaI
Pro
Forma
Pro Forma
aa
Ad[ uatod

(|n thouaanda, oxcot aharo and
or aharo data)
Cash, cash oqu|va|ontsand short-torm |nvostmonts $ 87b,0b8 $ 87b,0b8 $






lostr|ctod C|assAjun|or protorrod stockand protorrod stockwarrant ||ab|||t|os|nc|udod |n othor |ong torm ||ab|||t|os 8,78b -
lodoomab|o C|assAjun|or protorrod stock, par va|uo $0.00000b por sharo: 1b,000,000 sharosauthor|zod, 8,b28,07b |ssuod and outstand|ng,
actua|, no sharosauthor|zod, |ssuod and outstand|ng, pro torma and pro torma asadjustod 87,100 -
Convort|b|o protorrod stock, par va|uo $0.00000b por sharo: 820,001,8b0 sharosauthor|zod, 820,b7b,82b |ssuod and outstand|ng, actua|, no sharos
author|zod, |ssuod and outstand|ng, pro torma and pro torma asadjustod 88b,480 -
3tockho|dors' oqu|ty (dot|c|t):
lrotorrod stock, par va|uo $0.00000b por sharo: no sharosauthor|zod, |ssuod and outstand|ng, actua|, sharosauthor|zod, no sharos
|ssuod and outstand|ng, pro torma and pro torma asadjustod - -
Common stock, par va|uo $0.00000b por sharo: 000,000,000 sharosauthor|zod, 180,b14,7b8 sharos|ssuod and outstand|ng, actua|,
sharosauthor|zod, 472,018,7b8 sharos|ssuod and outstand|ng, pro torma and sharosauthor|zod, sharos|ssuod and
outstand|ng, pro torma asadjustod 1 2
Add|t|ona| pa|d-|n cap|ta| 2b4,881 1,40b,788
Accumu|atod othor comprohons|vo |oss (0b8) (0b8)
Accumu|atod dot|c|t (418,bb4) (748,180)

1ota| stockho|dors' oqu|ty (dot|c|t) (104,87b) 710,800

1ota| cap|ta||zat|on $ 710,800 $ 710,800 $







b2
(1) (2)
1abIo ot Contonta

1ho pro torma data asot 1uno 80, 2018 g|vosottoct to stock-basod componsat|on oxponso ot $820.0 m||||on assoc|atod w|th lro-2018 l3Ustor wh|ch tho sorv|co cond|t|on wassat|st|od asot 1uno
80, 2018 and wh|ch wo oxpoct to rocord upon comp|ot|on ot th|sottor|ng, asturthor doscr|bod |n Vanagomont's0|scuss|on and Ana|ys|sot ||nanc|a| Cond|t|on and losu|tsot Oporat|ons-Cr|t|ca|
Account|ng lo||c|osand Est|matos-3tock-3asod Componsat|on.' 1ho pro torma adjustmont ro|atod to stock-basod componsat|on oxponso ot $820.0 m||||on hasboon rot|octod asan |ncroaso to
add|t|ona| pa|d-|n cap|ta| and accumu|atod dot|c|t. Wo ost|mato that an aggrogato ot approx|mato|y m||||on sharosundor|y|ng lro-2018 l3Usoutstand|ng asot 1uno 80, 2018 w||| vost
and sott|o on |n connoct|on w|th tho sat|stact|on ot tho portormanco cond|t|on to tho|r vost|ng, rosu|t|ng |n tho not |ssuanco ot an aggrogato ot approx|mato|y m||||on sharos
to tho ho|dors|t wo chooso to undortako a not sott|omont ot a|| ot thoso awardsrathor than a||ow|ng our omp|oyooswho aro not oxocut|vo ott|corsto so|| sharosot our common stock|n tho pub||c
markot to sat|sty tho|r |ncomo tax ob||gat|onsro|atod to tho vost|ng and sott|omont ot such awards. 1hoso sharoshavo not boon |nc|udod |n our pro torma or pro torma asadjustod sharos
outstand|ng.
Each $1.00 |ncroaso or docroaso |n tho assumod |n|t|a| pub||c ottor|ng pr|co ot our common stockot $ por sharo, wh|ch |stho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho
covor pago ot th|sprospoctus, wou|d |ncroaso or docroaso, asapp||cab|o, tho amount ot our pro torma asadjustod cash and cash oqu|va|onts, add|t|ona| pa|d-|n cap|ta| and tota| stockho|dors' oqu|ty
by approx|mato|y $ , assum|ng that tho numbor ot sharosottorod by us, assot torth on tho covor pago ot th|sprospoctus, roma|nstho samo and attor doduct|ng ost|matod undorwr|t|ng d|scounts
and comm|ss|onspayab|o by us. An |ncroaso or docroaso ot 1.0 m||||on sharos|n tho numbor ot sharosottorod by uswou|d |ncroaso or docroaso, asapp||cab|o, tho amount ot our pro torma as
adjustod cash and cash oqu|va|onts, add|t|ona| pa|d-|n cap|ta| and tota| stockho|dors' oqu|ty by approx|mato|y $ , assum|ng that tho numbor ot sharosottorod by us, assot torth on tho covor
pago ot th|sprospoctus, roma|nstho samo and attor doduct|ng ost|matod undorwr|t|ng d|scountsand comm|ss|onspayab|o by us.
lt tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common stock trom us woro oxorc|sod |n tu||, pro torma as adjustod cash and cash oqu|va|onts,
add|t|ona| pa|d-|n cap|ta|, tota| stockho|dors' oqu|ty and sharos outstand|ng as ot 1uno 80, 2018 wou|d bo $ , $ , $ and $ , rospoct|vo|y.
1ho pro torma and pro torma as adjustod co|umns |n tho tab|o abovo aro basod on 472,018,7b8 sharos ot our common stock (|nc|ud|ng protorrod stock on an
as-convortod bas|s) outstand|ng as ot 1uno 80, 2018, and oxc|udo tho to||ow|ng:




44,1b7,001 sharos ot our common stock |ssuab|o upon tho oxorc|so ot opt|ons to purchaso sharos ot our common stock outstand|ng as ot 1uno 80, 2018,
w|th a wo|ghtod-avorago oxorc|so pr|co ot $1.82 por sharo,



b0,018,002 sharos ot our common stock subjoct to l3Us outstand|ng as ot 1uno 80, 2018,




110,b12 sharos ot our common stock, on an as-convortod bas|s, |ssuab|o upon tho oxorc|so ot a warrant to purchaso convort|b|o protorrod stock outstand|ng
as ot 1uno 80, 2018, w|th an oxorc|so pr|co ot $0.84 por sharo,



27,002,040 sharos ot our common stock subjoct to l3Us grantod attor 1uno 80, 2018,



up to 14,701,404 sharos ot our common stock |ssuab|o upon comp|ot|on ot our acqu|s|t|on ot Volub, and




sharos ot our common stock rosorvod tor tuturo |ssuanco undor our oqu|ty componsat|on p|ans wh|ch w||| bocomo ottoct|vo pr|or to tho comp|ot|on ot
th|s ottor|ng, cons|st|ng ot:



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2018 l|an,




7,814,002 sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2007 l|an (attor g|v|ng ottoct to an |ncroaso ot 20,000,000 sharos ot
our common stock rosorvod tor |ssuanco undor our 2007 l|an attor 1uno 80, 2018 and tho grant ot 27,002,040 sharos ot our common stock subjoct
to l3Us grantod attor 1uno 80, 2018), wh|ch numbor ot sharos w||| bo addod to tho sharos ot our common stock to bo rosorvod undor our 2018 l|an
upon |ts ottoct|vonoss, and



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our E3ll.
Our 2018 l|an and E3ll oach prov|do tor annua| automat|c |ncroasos |n tho numbor ot sharos rosorvod thoroundor, and our 2018 l|an a|so prov|dos tor
|ncroasos to tho numbor ot sharos that may bo grantod thoroundor basod on sharos undor our 2007 l|an that oxp|ro, aro torto|tod or othorw|so ropurchasod by us, as
moro tu||y doscr|bod |n tho soct|on t|t|od Exocut|vo Componsat|on-Emp|oyoo 3onot|t and 3tock l|ans.'

b8
(1)
(2)
1abIo ot Contonta
D|Lu1|ON
lt you |nvost |n our common stock |n th|s ottor|ng, your ownorsh|p |ntorost w||| bo d||utod to tho oxtont ot tho d|ttoronco botwoon tho |n|t|a| pub||c ottor|ng pr|co por
sharo ot our common stock and tho pro torma as adjustod not tang|b|o book va|uo por sharo ot our common stock |mmod|ato|y attor th|s ottor|ng. lot tang|b|o book
va|uo d||ut|on por sharo to now |nvostors roprosonts tho d|ttoronco botwoon tho amount por sharo pa|d by purchasors ot sharos ot our common stock |n th|s ottor|ng and
tho pro torma as adjustod not tang|b|o book va|uo por sharo ot our common stock |mmod|ato|y attor comp|ot|on ot th|s ottor|ng.
lot tang|b|o book va|uo por sharo |s dotorm|nod by d|v|d|ng our tota| tang|b|o assots |oss our tota| ||ab|||t|os by tho numbor ot sharos ot our common stock
outstand|ng. Our h|stor|ca| not tang|b|o dot|c|t as ot 1uno 80, 2018 was $842.b m||||on, or $2.40 por sharo. Our pro torma not tang|b|o book va|uo as ot 1uno 80, 2018
was $b88.7 m||||on, or $1.14 por sharo, basod on tho tota| numbor ot sharos ot our common stock outstand|ng as ot 1uno 80, 2018, attor g|v|ng ottoct to tho automat|c
convors|on ot a|| outstand|ng sharos ot our C|ass A jun|or protorrod stock and our convort|b|o protorrod stock as ot 1uno 80, 2018 |nto an aggrogato ot 888,000,000
sharos ot our common stock, wh|ch convors|on w||| occur |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, and tho rosu|t|ng roc|ass|t|cat|on ot tho rostr|ctod C|ass A
jun|or protorrod stock and protorrod stock warrant ||ab|||ty trom othor |ong-torm ||ab|||t|os to add|t|ona| pa|d-|n cap|ta|.
Attor g|v|ng ottoct to tho sa|o by us ot sharos ot our common stock |n th|s ottor|ng at tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch
|s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, and attor doduct|ng ost|matod undorwr|t|ng d|scounts and
comm|ss|ons and ost|matod ottor|ng oxponsos payab|o by us, our pro torma as adjustod not tang|b|o book va|uo as ot 1uno 80, 2018 wou|d havo boon $ m||||on, or
$ por sharo. 1h|s roprosonts an |mmod|ato |ncroaso |n pro torma not tang|b|o book va|uo ot $ por sharo to our ox|st|ng stockho|dors and an |mmod|ato d||ut|on
|n pro torma not tang|b|o book va|uo ot $ por sharo to |nvostors purchas|ng sharos ot our common stock |n th|s ottor|ng at tho assumod |n|t|a| pub||c ottor|ng pr|co.
1ho to||ow|ng tab|o |||ustratos th|s d||ut|on:

Assumod |n|t|a| pub||c ottor|ng pr|co por sharo $
lro torma not tang|b|o book va|uo (dot|c|t) por sharo as ot 1uno 80, 2018 $1.14
lncroaso |n pro torma not tang|b|o book va|uo (dot|c|t) por sharo attr|butab|o to now |nvostors |n th|s ottor|ng

lro torma as adjustod not tang|b|o book va|uo por sharo |mmod|ato|y attor th|s ottor|ng

0||ut|on |n pro torma not tang|b|o book va|uo por sharo to now |nvostors |n th|s ottor|ng $


Each $1.00 |ncroaso or docroaso |n tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot
torth on tho covor pago ot th|s prospoctus, wou|d |ncroaso or docroaso, as app||cab|o, our pro torma as adjustod not tang|b|o book va|uo por sharo to now |nvostors by
$ , and wou|d |ncroaso or docroaso, as app||cab|o, d||ut|on por sharo to now |nvostors |n th|s ottor|ng by $ , assum|ng that tho numbor ot sharos ottorod by us,
as sot torth on tho covor pago ot th|s prospoctus, roma|ns tho samo and attor doduct|ng ost|matod undorwr|t|ng d|scounts and comm|ss|ons and ost|matod ottor|ng
oxponsos payab|o by us. 3|m||ar|y, oach |ncroaso or docroaso ot 1.0 m||||on sharos |n tho numbor ot sharos ottorod by us wou|d |ncroaso or docroaso, as app||cab|o,
our pro torma as adjustod not tang|b|o book va|uo by approx|mato|y $ por sharo and |ncroaso or docroaso, as app||cab|o, tho d||ut|on to now |nvostors by $
por sharo, assum|ng tho assumod |n|t|a| pub||c ottor|ng pr|co roma|ns tho samo, and attor doduct|ng undorwr|t|ng d|scounts and comm|ss|ons and ost|matod ottor|ng
oxponsos payab|o by us.

b4
1abIo ot Contonta
lt tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common stock trom us |s oxorc|sod |n tu||, tho pro torma as adjustod not tang|b|o book va|uo por
sharo ot our common stock, as adjustod to g|vo ottoct to th|s ottor|ng, wou|d bo $ por sharo, and tho d||ut|on |n pro torma not tang|b|o book va|uo por sharo to now
|nvostors |n th|s ottor|ng wou|d bo $ por sharo.
1ho to||ow|ng tab|o prosonts, as ot 1uno 80, 2018, attor g|v|ng ottoct to tho automat|c convors|on ot a|| outstand|ng sharos ot our C|ass A jun|or protorrod stock
and our convort|b|o protorrod stock |nto our common stock |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, tho d|ttoroncos botwoon tho ox|st|ng stockho|dors and tho
now |nvostors purchas|ng sharos ot our common stock |n th|s ottor|ng w|th rospoct to tho numbor ot sharos purchasod trom us, tho tota| cons|dorat|on pa|d or to bo pa|d
to us, wh|ch |nc|udos not procoods roco|vod trom tho |ssuanco ot our common stock and protorrod stock, cash roco|vod trom tho oxorc|so ot stock opt|ons and tho
avorago pr|co por sharo pa|d or to bo pa|d to us at tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co
rango sot torth on tho covor pago ot th|s prospoctus, botoro doduct|ng ost|matod undorwr|t|ng d|scounts and comm|ss|ons and ost|matod ottor|ng oxponsos payab|o by
us:

5haroa Purchaaod 1otaI Conaidoration Avorago
Prico Por
5haro Numbor Porcont Amount Porcont
Ex|st|ng stockho|dors % $ % $
low |nvostors

1ota|s 100% $ 100%







Each $1.00 |ncroaso or docroaso |n tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot
torth on tho covor pago ot th|s prospoctus, wou|d |ncroaso or docroaso, as app||cab|o, tho tota| cons|dorat|on pa|d by now |nvostors and tota| cons|dorat|on pa|d by a||
stockho|dors by approx|mato|y $ , assum|ng that tho numbor ot sharos ottorod by us, as sot torth on tho covor pago ot th|s prospoctus, roma|ns tho samo and attor
doduct|ng ost|matod undorwr|t|ng d|scounts and comm|ss|ons and ost|matod ottor|ng oxponsos payab|o by us.
Excopt as othorw|so |nd|catod, tho abovo d|scuss|on and tab|os assumo no oxorc|so ot tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common
stock trom us. lt tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common stock woro oxorc|sod |n tu||, our ox|st|ng stockho|dors wou|d own % and our
now |nvostors wou|d own % ot tho tota| numbor ot sharos ot our common stock outstand|ng upon tho comp|ot|on ot th|s ottor|ng.
1ho numbor ot sharos ot our common stock that w||| bo outstand|ng attor th|s ottor|ng |s basod on 472,018,7b8 sharos ot our common stock (|nc|ud|ng protorrod
stock on an as-convortod bas|s) outstand|ng as ot 1uno 80, 2018, and oxc|udos:




44,1b7,001 sharos ot our common stock |ssuab|o upon tho oxorc|so ot opt|ons to purchaso sharos ot our common stock outstand|ng as ot 1uno 80, 2018,
w|th a wo|ghtod-avorago oxorc|so pr|co ot $1.82 por sharo,



b0,018,002 sharos ot our common stock subjoct to l3Us outstand|ng as ot 1uno 80, 2018,




110,b12 sharos ot our common stock, on an as-convortod bas|s, |ssuab|o upon tho oxorc|so ot a warrant to purchaso convort|b|o protorrod stock outstand|ng
as ot 1uno 80, 2018, w|th an oxorc|so pr|co ot $0.84 por sharo,



27,002,040 sharos ot our common stock subjoct to l3Us grantod attor 1uno 80, 2018,



up to 14,701,404 sharos ot our common stock |ssuab|o upon comp|ot|on ot our acqu|s|t|on ot Volub, and

bb
1abIo ot Contonta



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our oqu|ty componsat|on p|ans wh|ch w||| bocomo ottoct|vo pr|or to tho comp|ot|on ot
th|s ottor|ng, cons|st|ng ot:



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2018 l|an,




7,814,002 sharos ot our common stock rosorvod tor tuturo |ssuanco undor our 2007 l|an (attor g|v|ng ottoct to an |ncroaso ot 20,000,000 sharos ot
our common stock rosorvod tor |ssuanco undor our 2007 l|an attor 1uno 80, 2018 and tho grant ot 27,002,040 sharos ot our common stock subjoct
to l3Us grantod attor 1uno 80, 2018), wh|ch numbor ot sharos w||| bo addod to tho sharos ot our common stock to bo rosorvod undor our 2018 l|an
upon |ts ottoct|vonoss, and



sharos ot our common stock rosorvod tor tuturo |ssuanco undor our E3ll.
Our 2018 l|an and E3ll oach prov|do tor annua| automat|c |ncroasos |n tho numbor ot sharos rosorvod thoroundor, and our 2018 l|an a|so prov|dos tor
|ncroasos to tho numbor ot sharos that may bo grantod thoroundor basod on sharos undor our 2007 l|an that oxp|ro, aro torto|tod or othorw|so ropurchasod by us, as
moro tu||y doscr|bod |n tho soct|on t|t|od Exocut|vo Componsat|on-Emp|oyoo 3onot|t and 3tock l|ans.'
1o tho oxtont that any outstand|ng opt|ons to purchaso our common stock or a warrant to purchaso convort|b|o protorrod stock aro oxorc|sod, l3Us aro sott|od
or now awards aro grantod undor our oqu|ty componsat|on p|ans, thoro w||| bo turthor d||ut|on to |nvostors part|c|pat|ng |n th|s ottor|ng.

b0
1abIo ot Contonta
5ELEC1ED CON5OL|DA1ED F|NANC|AL AND O1EER DA1A
1ho to||ow|ng so|octod conso||datod statomont ot oporat|ons data tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012 and tho conso||datod ba|anco shoot
data as ot 0ocombor 81, 2011 and 2012 havo boon dor|vod trom our aud|tod conso||datod t|nanc|a| statomonts |nc|udod o|sowhoro |n th|s prospoctus. 1ho conso||datod
ba|anco shoot data as ot 0ocombor 81, 2010 has boon dor|vod trom our aud|tod conso||datod t|nanc|a| statomonts not |nc|udod |n th|s prospoctus. 1ho so|octod
conso||datod statomont ot oporat|ons data tor tho s|x months ondod 1uno 80, 2012 and 2018 and tho conso||datod ba|anco shoot data as ot 1uno 80, 2018 havo boon
dor|vod trom our unaud|tod |ntor|m conso||datod t|nanc|a| statomonts |nc|udod o|sowhoro |n th|s prospoctus. 1ho unaud|tod |ntor|m conso||datod t|nanc|a| statomonts
havo boon proparod on tho samo bas|s as tho aud|tod t|nanc|a| statomonts and rot|oct, |n tho op|n|on ot managomont, a|| adjustmonts, ot a norma|, rocurr|ng naturo that
aro nocossary tor a ta|r statomont ot tho unaud|tod |ntor|m conso||datod t|nanc|a| statomonts. Our h|stor|ca| rosu|ts aro not nocossar||y |nd|cat|vo ot tho rosu|ts that may
bo oxpoctod |n tho tuturo and tho rosu|ts |n tho s|x months ondod 1uno 80, 2018 aro not nocossar||y |nd|cat|vo ot rosu|ts to bo oxpoctod tor tho tu|| yoar or any othor
por|od. You shou|d road tho to||ow|ng so|octod conso||datod t|nanc|a| and othor data bo|ow |n conjunct|on w|th tho soct|on t|t|od Vanagomont's 0|scuss|on and Ana|ys|s
ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons' and our conso||datod t|nanc|a| statomonts and ro|atod notos |nc|udod o|sowhoro |n th|s prospoctus.

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda, oxcot or aharo data)
ConaoIidatod 5tatomont ot Oorationa Data:
lovonuo $ 28,278 $ 100,818 $ 810,088 $ 122,8b0 $ 2b8,08b
Costsand oxponsos
Cost ot rovonuo 48,108 01,808 128,708 b8,1b7 01,828
losoarch and dovo|opmont 20,848 80,170 110,004 40,84b 111,887
3a|osand markot|ng 0,280 2b,088 80,bb1 84,10b 77,007
Gonora| and adm|n|strat|vo 10,0b2 0b,7b7 b0,008 80,7b8 8b,000

1ota| costsand oxponsos 0b,7b7 288,724 804,010 100,80b 810,4b8

losstrom oporat|ons (07,470) (127,411) (77,088) (47,000) (02,828)
lntorost |ncomo (oxponso), not bb (80b) (2,480) (800) (2,740)
Othor |ncomo (oxponso), not (117) (1,b80) 800 (12) (2,b48)

lossbotoro |ncomo taxos (07,b41) (120,740) (70,170) (47,008) (08,117)
lrov|s|on (bonot|t) tor |ncomo taxos (217) (1,444) 220 1,100 1,184

lot |oss $ (07,824) $ (128,802) $ (70,800) $ (40,104) $ (00,2b1)










0oomod d|v|dond to |nvostors|n ro|at|on to tho tondor ottor - 8b,810 - - -

lot |ossattr|butab|o to common stockho|dors $ (07,824) $ (104,118) $ (70,800) $ (40,104) $ (00,2b1)










Wo|ghtod-avorago sharosusod to computo not |osspor sharo attr|butab|o to common stockho|dors:
3as|c and d||utod 7b,002 102,b44 117,401 114,82b 120,8b8










lot |osspor sharo attr|butab|o to common stockho|dors:
3as|c and d||utod $ (0.80) $ (1.00) $ (0.08) $ (0.48) $ (0.b8)










lro torma not |osspor sharo attr|butab|o to common stockho|dors(unaud|tod):
3as|c and d||utod $ (0.18) $ (0.1b)




Othor FinanciaI |ntormation:
Adjustod E3l10A $ (b1,184) $ (42,88b) $ 21,104 $ 070 $ 21,802
lon-GAAl not |oss $ (b4,000) $ (0b,b88) $ (8b,101) $ (22,282) $ (20,888)

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1abIo ot Contonta

Costsand oxponsos|nc|udo stock-basod componsat|on oxponso asto||ows:

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
(unauditod)
Cost ot rovonuo $ 200 $ 1,820 $ 800 $ 420 $ 1,0bb
losoarch and dovo|opmont 8,400 88,bb0 12,022 0,201 24,107
3a|osand markot|ng 240 1,bb8 1,840 020 4,014
Gonora| and adm|n|strat|vo 2,078 28,4b2 10,078 8,700 4,802

1ota| stock-basod componsat|on $b,081 $00,884 $2b,741 $ 10,127 $ 8b,b08











3oo loto 0 to our conso||datod t|nanc|a| statomontstor an oxp|anat|on ot tho ca|cu|at|onsot our pro torma not |osspor sharo attr|butab|o to common stockho|dors.
3oo tho soct|onst|t|od lrospoctus3ummary-3ummary Conso||datod ||nanc|a| and Othor 0ata-lon-GAAl ||nanc|a| Voasuros' tor add|t|ona| |ntormat|on and a roconc|||at|on ot not |ossto Adjustod
E3l10Aand not |ossto non-GAAl not |oss.

Yoar Endod Docombor 81, Aa ot
Juno 80,
2018 2010 2011 2012
(|n thouaanda)
(unauditod)
ConaoIidatod BaIanco 5hoot Data:
Cash and cash oqu|va|onts $ 184,2b8 $ 218,000 $ 208,828 $ 104,b00
3hort-torm |nvostmonts 48,484 880,b48 221,b28 210,b40
Work|ng cap|ta| 107,088 b48,824 444,b87 882,820
lroporty and oqu|pmont, not 20,88b 01,088 18b,b74 242,bb8
1ota| assots 224,478 720,07b 881,b08 004,0b0
1ota| ||ab|||t|os 8b,482 87,801 207,204 2bb,808
lodoomab|o convort|b|o protorrod stock - 40 87,100 87,100
Convort|b|o protorrod stock 270,b84 88b,078 88b,480 88b,480
1ota| stockho|dors' dot|c|t $ (00,408) $ (201,888) $ (248,172) $ (104,87b)

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(1)
(2)
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1abIo ot Contonta
NANACENEN1'5 D|5Cu55|ON AND ANALY5|5 OF F|NANC|AL COND|1|ON AND RE5uL15 OF OPERA1|ON5
7bo o||owlog olscossloo ooo ooo|ysls o oor loooclo| coooltloo ooo roso|ts o oporotloos sboo|o bo rooo lo coojooctloo wltb tbo soctloo tlt|oo 5o|octoo
Cooso|lootoo lloooclo| ooo Otbor Loto' ooo tbo cooso|lootoo loooclo| stotomoots ooo ro|otoo ootos tboroto loc|oooo o|sowboro lo tbls prospoctos. 7bls olscossloo
cootolos orworo-|ooklog stotomoots tbot lovo|vo rlsks ooo oocortolotlos. Oor octoo| roso|ts coo|o olor motorlo||y rom tboso olscossoo bo|ow. loctors tbot coo|o
cooso or cootrlboto to socb oloroocos loc|ooo, bot oro oot |lmltoo to, tboso loootlloo bo|owooo tboso olscossoo lo tbo soctloo tlt|oo Rlsk loctors' loc|oooo
o|sowboro lo tbls prospoctos.
Ovorviow
1w|ttor |s a g|oba| p|attorm tor pub||c so|t-oxpross|on and convorsat|on |n roa| t|mo. Our p|attorm |s un|quo |n |ts s|mp||c|ty: 1woots aro ||m|tod to 140 charactors
ot toxt. 1h|s constra|nt makos |t oasy tor anyono to qu|ck|y croato, d|str|buto and d|scovor contont that |s cons|stont across our p|attorm and opt|m|zod tor mob||o
dov|cos. As a rosu|t, 1woots dr|vo a h|gh vo|oc|ty ot |ntormat|on oxchango that makos 1w|ttor un|quo|y ||vo.'
Wo havo a|roady ach|ovod s|gn|t|cant g|oba| sca|o, and wo cont|nuo to grow. Wo havo moro than 21b m||||on VAUs spann|ng noar|y ovory country. Our usors
|nc|udo m||||ons ot poop|o trom around tho wor|d, as wo|| as |nt|uont|a| |nd|v|dua|s and organ|zat|ons, such as wor|d |oadors, govornmont ott|c|a|s, co|obr|t|os, ath|otos,
journa||sts, sports toams, mod|a out|ots and brands. Our usors croato approx|mato|y b00 m||||on 1woots ovory day.
1ho va|uo wo croato tor our usors |s onhancod by our p|attorm partnors and advort|sors. V||||ons ot p|attorm partnors, wh|ch |nc|udo pub||shors, mod|a out|ots
and dovo|opors, havo |ntogratod w|th 1w|ttor, add|ng va|uo to our usor oxpor|onco by contr|but|ng contont to our p|attorm, broad|y d|str|but|ng contont trom our p|attorm
across tho|r proport|os and us|ng 1w|ttor contont and too|s to onhanco tho|r wobs|tos and app||cat|ons. ln add|t|on, advort|sors uso our lromotod lroducts to promoto
tho|r brands, products and sorv|cos, amp||ty tho|r v|s|b|||ty and roach, and comp|omont and oxtond tho convorsat|on around tho|r advort|s|ng campa|gns. A|though wo do
not gonorato rovonuo d|roct|y trom usors or p|attorm partnors, wo bonot|t trom notwork ottocts whoro moro act|v|ty on 1w|ttor rosu|ts |n tho croat|on and d|str|but|on ot
moro contont, wh|ch attracts moro usors, p|attorm partnors and advort|sors, rosu|t|ng |n a v|rtuous cyc|o ot va|uo croat|on.
Wo gonorato tho substant|a| major|ty ot our rovonuo trom tho sa|o ot advort|s|ng sorv|cos, w|th tho ba|anco com|ng trom data ||cons|ng arrangomonts. Wo
gonorato noar|y a|| ot our advort|s|ng rovonuo through tho sa|o ot our throo lromotod lroducts: lromotod 1woots, lromotod Accounts and lromotod 1ronds. 1ho
substant|a| major|ty ot our advort|s|ng rovonuo |s gonoratod on a pay-tor-portormanco bas|s, wh|ch moans advort|sors aro on|y chargod whon a usor ongagos w|th tho|r
ad, croat|ng an attract|vo va|uo propos|t|on tor our advort|sors.
Wo |aunchod our t|rst lromotod lroducts |n m|d-2010 |n tho Un|tod 3tatos by |ntroduc|ng lromotod 1woots |n soarch rosu|ts and lromotod 1ronds. 3|nco that
t|mo, wo havo oxpandod our lromotod lroducts to add lromotod Accounts and oxtondod our lromotod lroducts across our p|attorm and to add|t|ona| goograph|os.
Wo gonorato advort|s|ng sa|os |n tho Un|tod 3tatos and corta|n othor goograph|os through our d|roct sa|os torco, as wo|| as through our so|t-sorvo advort|s|ng p|attorm.
Wo |ntroducod lromotod lroducts on our |O3 and Andro|d mob||o app||cat|ons |n |obruary 2012. Ovor 0b% ot our advort|s|ng rovonuo was gonoratod trom
mob||o dov|cos |n tho throo months ondod 1uno 80, 2018.

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Our |ntornat|ona| rovonuo was $b8.0 m||||on and $02.8 m||||on |n 2012 and tho s|x months ondod 1uno 80, 2018, rospoct|vo|y, roprosont|ng 17% and 2b% ot our
tota| rovonuo tor thoso por|ods, rospoct|vo|y. Wo |aunchod lromotod lroducts |n so|octod |ntornat|ona| markots |n tho th|rd quartor ot 2011, and wo oxpoct to cont|nuo
to |aunch our lromotod lroducts |n add|t|ona| markots ovor t|mo. Wo havo rocont|y tocusod our |ntornat|ona| spond|ng on sa|os support and markot|ng act|v|t|os |n
spoc|t|c countr|os, |nc|ud|ng Austra||a, 3raz||, Canada, 1apan and tho Un|tod K|ngdom. ln corta|n |ntornat|ona| goograph|os whoro wo havo not |nvostod to bu||d a |oca|
sa|os torco, wo ro|y on roso||ors that sorvo as outs|do sa|os agonts tor tho sa|o ot our lromotod lroducts. ln tho s|x months ondod 1uno 80, 2018, wo and our roso||ors
so|d our lromotod lroducts to advort|sors |n ovor 20 countr|os outs|do ot tho Un|tod 3tatos. Wo rocord advort|s|ng rovonuo basod on tho b||||ng |ocat|on ot our
advort|sors, rathor than tho |ocat|on ot our usors.
Wo aro hoadquartorod |n 3an |ranc|sco, Ca||torn|a, and havo ott|cos |n ovor 1b c|t|os around tho wor|d.
Koy NiIoatonoa
Wo havo dovo|opod our advort|s|ng sorv|cos through tho |ntroduct|on ot numorous products and sorv|cos, |nc|ud|ng:


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Koy Notrica
Wo rov|ow a numbor ot motr|cs, |nc|ud|ng tho to||ow|ng koy motr|cs, to ova|uato our bus|noss, moasuro our portormanco, |dont|ty tronds attoct|ng our bus|noss,
tormu|ato bus|noss p|ans and mako stratog|c doc|s|ons:
Vootb|y Actlvo Usors (VAUs). Wo dot|no VAUs as 1w|ttor usors who |oggod |n and accossod 1w|ttor through our wobs|to, mob||o wobs|to, dosktop or mob||o
app||cat|ons, 3V3 or rog|storod th|rd-party app||cat|ons or wobs|tos |n tho 80-day por|od ond|ng on tho dato ot moasuromont. Avorago VAUs tor a por|od roprosont tho
avorago ot tho VAUs at tho ond ot oach month dur|ng tho por|od. ln tho d|scuss|on ot our rosu|ts ot oporat|ons wo comparo avorago VAUs tor tho |ast throo months ot
oach por|od d|scussod |n such compar|son. VAUs aro a moasuro ot tho s|zo ot our act|vo usor baso. ln tho throo months ondod 1uno 80, 2018, wo had 218.8 m||||on
avorago VAUs, wh|ch roprosonts an |ncroaso ot 44% trom tho throo months ondod 1uno 80, 2012. ln tho throo months ondod 1uno 80, 2018, wo had 40.2 m||||on
avorago VAUs |n tho Un|tod 3tatos and 100.1 m||||on avorago VAUs |n tho rost ot tho wor|d, wh|ch roprosont |ncroasos ot 8b% and 47%, rospoct|vo|y, trom tho throo
months ondod 1uno 80, 2012. |or add|t|ona| |ntormat|on on how wo ca|cu|ato tho numbor ot VAUs and tactors that can attoct th|s motr|c, soo tho soct|on t|t|od lndustry
0ata and Company Votr|cs.'




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1abIo ot Contonta
7lmo|loo Vlows, 7lmo|loo Vlows Por VAU ooo Aovortlslog Rovoooo Por 7lmo|loo Vlow. Wo dot|no t|mo||no v|ows as tho tota| numbor ot t|mo||nos roquostod
whon rog|storod usors v|s|t 1w|ttor, rotrosh a t|mo||no or v|ow soarch rosu|ts wh||o |oggod |n on our wobs|to, mob||o wobs|to or dosktop or mob||o app||cat|ons (oxc|ud|ng
our 1woot0ock and Vac c||onts, as wo do not tu||y track th|s data). Wo bo||ovo that t|mo||no v|ows and t|mo||no v|ows por VAU aro moasuros ot usor ongagomont.
1|mo||no v|ows por VAU aro ca|cu|atod by d|v|d|ng tho tota| t|mo||no v|ows tor tho por|od by tho avorago VAUs tor tho |ast throo months ot such por|od. ln tho throo
months and s|x months ondod 1uno 80, 2018, wo had 1b0.0 b||||on and 287.2 b||||on t|mo||no v|ows, rospoct|vo|y, wh|ch roprosont |ncroasos ot 00% and 70% trom tho
throo months and s|x months ondod 1uno 80, 2012, rospoct|vo|y. ln tho throo months and s|x months ondod 1uno 80, 2018, wo had 40.0 b||||on and 80.2 b||||on t|mo||no
v|ows |n tho Un|tod 3tatos, rospoct|vo|y, wh|ch roprosont |ncroasos ot 4b% and b7% trom tho throo months and s|x months ondod 1uno 80, 2012, rospoct|vo|y. ln tho
throo months and s|x months ondod 1uno 80, 2018, wo had 110.8 b||||on and 207.1 b||||on t|mo||no v|ows |n tho rost ot tho wor|d, rospoct|vo|y, wh|ch roprosont |ncroasos
ot 70% and 80% trom tho throo months and s|x months ondod 1uno 80, 2012, rospoct|vo|y. ln tho throo months ondod 1uno 80, 2018, wo had 001 t|mo||no v|ows por
VAU, wh|ch roprosonts an |ncroaso ot 17% trom tho throo months ondod 1uno 80, 2012. ln tho throo months ondod 1uno 80, 2018, wo had 82b t|mo||no v|ows por VAU
|n tho Un|tod 3tatos and 0b2 t|mo||no v|ows por VAU |n tho rost ot tho wor|d, wh|ch roprosont |ncroasos ot 8% and 22% trom tho throo months ondod 1uno 80, 2012,
rospoct|vo|y. |or add|t|ona| |ntormat|on on how wo ca|cu|ato tho numbor ot t|mo||no v|ows and tactors that can attoct th|s motr|c, soo tho soct|on t|t|od lndustry 0ata and
Company Votr|cs.'
Wo dot|no advort|s|ng rovonuo por t|mo||no v|ow as advort|s|ng rovonuo por 1,000 t|mo||no v|ows dur|ng tho app||cab|o por|od. Wo bo||ovo that advort|s|ng rovonuo
por t|mo||no v|ow |s a moasuro ot our ab|||ty to monot|zo our p|attorm. ln tho throo months ondod 1uno 80, 2018, our advort|s|ng rovonuo por t|mo||no v|ow was $0.80,
wh|ch roprosonts a 20% |ncroaso trom tho throo months ondod 1uno 80, 2012. ln tho throo months ondod 1uno 80, 2018, our advort|s|ng rovonuo por t|mo||no v|ow |n tho
Un|tod 3tatos was $2.17 and our advort|s|ng rovonuo por t|mo||no v|ow |n tho rost ot tho wor|d was $0.80, wh|ch roprosont |ncroasos ot 20% and 111% trom tho throo
months ondod 1uno 80, 2012, rospoct|vo|y. Wo rocord advort|s|ng rovonuo basod on tho b||||ng |ocat|on ot our advort|sors, rathor than tho |ocat|on ot our usors.

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Factora Attocting Our Futuro Portormanco
Usor Orowtb, Usor Eogogomoot ooo Voootlzotloo. Usor growth tronds rot|octod |n tho numbor ot VAUs, usor ongagomont tronds rot|octod |n t|mo||no v|ows
and t|mo||no v|ows por VAU and monot|zat|on tronds rot|octod |n advort|s|ng rovonuo por t|mo||no v|ow aro koy tactors that attoct our rovonuo. As our usor baso and tho
|ovo| ot ongagomont ot our usors grow, wo bo||ovo tho potont|a| to |ncroaso our rovonuo grows.
Usor Orowtb. Wo havo oxpor|oncod s|gn|t|cant growth |n our numbor ot usors ovor tho |ast sovora| yoars. ln gonora|, a h|ghor proport|on ot lntornot usors |n
tho Un|tod 3tatos usos 1w|ttor than lntornot usors |n othor countr|os. Accord|ng|y, |n tho tuturo wo oxpoct our usor growth rato |n corta|n |ntornat|ona| markots, such
as Argont|na, |ranco, 1apan, luss|a, 3aud| Arab|a and 3outh Atr|ca, to cont|nuo to bo h|ghor than our usor growth rato |n tho Un|tod 3tatos. |owovor, wo oxpoct to
taco cha||ongos |n ontor|ng somo markots, such as Ch|na, whoro accoss to 1w|ttor |s b|ockod, as wo|| as corta|n othor countr|os that havo |ntorm|ttont|y rostr|ctod
accoss to 1w|ttor. lostr|ct|ons or

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1abIo ot Contonta
||m|tat|ons on accoss to 1w|ttor may advorso|y |mpact our ab|||ty to |ncroaso tho s|zo ot our usor baso and gonorato add|t|ona| rovonuo |n corta|n markots.
Our usor baso cont|nuos to grow. A|though wo do not soparato|y track whothor an VAU has on|y usod 1w|ttor on a dosktop or on a mob||o dov|co, tho usago
ot our mob||o app||cat|ons cont|nuos to grow. ln tho throo months ondod 1uno 80, 2018, 7b% ot our avorago VAUs accossod 1w|ttor trom a mob||o dov|co, comparod
to 00% |n tho throo months ondod 1uno 80, 2012.
Wo may taco cha||ongos |n |ncroas|ng tho s|zo ot our usor baso, |nc|ud|ng, among othors, compot|t|on trom a|tornat|vo products and sorv|cos, a doc||no |n
tho numbor ot |nt|uont|a| usors on 1w|ttor or a porco|vod doc||no |n tho qua||ty ot contont ava||ab|o on 1w|ttor. Wo |ntond to dr|vo growth |n our usor baso by cont|nu|ng
to domonstrato tho va|uo and usotu|noss ot our products and sorv|cos to potont|a| now usors, and by |ntroduc|ng now products, sorv|cos and toaturos. Wo ant|c|pato
that our usor growth rato w||| s|ow ovor t|mo as tho s|zo ot our usor baso |ncroasos. 1o tho oxtont our usor growth or usor growth rato s|ows, our rovonuo growth w|||
bocomo |ncroas|ng|y dopondont on our ab|||ty to |ncroaso |ovo|s ot usor ongagomont, as moasurod by t|mo||no v|ows and t|mo||no v|ows por VAU, and monot|zat|on,
as moasurod by advort|s|ng rovonuo por t|mo||no v|ow.
Usor Eogogomoot. Wo broad|y moasuro usor ongagomont on our p|attorm through t|mo||no v|ows and tho numbor ot t|mo||no v|ows por VAU. ln tho throo
months ondod 1uno 80, 2018, t|mo||no v|ows |ncroasod 00% and t|mo||no v|ows por VAU |ncroasod 17%, comparod to tho throo months ondod 1uno 80, 2012. Wo
cont|nuo to dovo|op products tor our p|attorm, and to dovo|op partnorsh|ps g|oba||y to |ncroaso ro|ovant |oca| contont on our p|attorm, w|th tho goa| ot |ncroas|ng our
usor ongagomont. ln part|cu|ar, our most ongagod usors aro gonora||y thoso who accoss 1w|ttor v|a our mob||o app||cat|ons. ln tho throo months ondod 1uno 80,
2018, a substant|a| major|ty ot t|mo||no v|ows woro on mob||o dov|cos, and tho |ncroaso |n t|mo||no v|ows was dr|von by mob||o usor ongagomont. Wo oxpoct th|s
trond to cont|nuo |n tho noar torm, and wo p|an to cont|nuo to dovo|op and |mprovo our mob||o app||cat|ons to turthor dr|vo usor adopt|on ot thoso app||cat|ons.
|owovor, to tho oxtont usor ongagomont as moasurod by t|mo||no v|ows and t|mo||no v|ows por VAU doos not |ncroaso, our rovonuo growth w||| dopond |n |argo part
on our ab|||ty to |ncroaso VAUs or monot|zat|on ot our p|attorm.
Voootlzotloo. Wo moasuro monot|zat|on ot our p|attorm through advort|s|ng rovonuo por t|mo||no v|ow. 1horo aro many var|ab|os that |mpact t|mo||no v|ows
and advort|s|ng rovonuo por t|mo||no v|ow, such as tho numbor ot VAUs, tho numbor ot t|mo||no v|ows por VAU, wh|ch t|mo||no v|ows wo monot|zo and tho amount ot
advort|s|ng wo chooso to d|sp|ay, our usors' ongagomont w|th our lromotod lroducts and advort|sor domand. Gonora||y, tor our pay-tor-portormanco lromotod
lroducts, wo dos|gn our a|gor|thms to opt|m|zo tor tho comb|nod |mpact ot a numbor ot tactors, |nc|ud|ng tho ovora|| usor oxpor|onco, tho numbor ot ads wo do||vor to
a part|cu|ar usor, tho ||ko||hood that our usors w||| ongago w|th tho ads, tho va|uo wo do||vor to advort|sors and tho |mpact ot tho advort|sors' b|ds. Wo dos|gn our
a|gor|thms to onhanco tho usor oxpor|onco by do||vor|ng ro|ovant ads to a usor basod on tho usor's lntorost Graph, and thoso ads may conta|n |ntormat|on ot |ntorost
to tho usor or may prov|do promot|ona| ottors that aro not ava||ab|o anywhoro o|so. Our a|gor|thms a|so onhanco tho va|uo that wo do||vor to advort|sors bocauso tho
targot|ng capab|||t|os ot our a|gor|thms a||ow advort|sors to do||vor ads that aro ro|ovant to a usor's |ntorosts, thoroby |ncroas|ng tho ottoct|vonoss ot an advort|sor's
advort|s|ng campa|gn.
Wo rogu|ar|y rot|no our a|gor|thms to dr|vo monot|zat|on wh||o max|m|z|ng tho |ong-torm va|uo ot our p|attorm tor our usors and advort|sors. G|von tho |argo
numbor ot var|ab|os that dr|vo advort|s|ng rovonuo por t|mo||no v|ow, |nc|ud|ng doc|s|ons that wo mako rogard|ng opt|m|z|ng usor oxpor|onco and sat|sty|ng advort|sor
domand, corta|n |nd|v|dua| compononts may doc||no wh||o othors |ncroaso. U|t|mato|y, |t |s tho comb|nat|on ot tho changos |n thoso compononts that |mpacts
advort|s|ng rovonuo por t|mo||no v|ow. |or oxamp|o, advort|s|ng rovonuo has |ncroasod soquont|a||y |n oach ot tho t|vo quartors ondod 1uno 80, 2018, dr|von by
soquont|a| |ncroasos |n pa|d usor

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ongagomonts w|th our pay-tor-portormanco lromotod lroducts, or ad ongagomonts, ovor thoso samo por|ods, part|a||y ottsot by soquont|a| docroasos |n avorago
cost por ad ongagomont dur|ng tho samo por|ods. 1ho numbor ot ad ongagomonts |ncroasod bb%, 82%, 78%, 1b% and 124% soquont|a||y |n tho throo months
ondod 1uno 80, 2012, 3optombor 80, 2012, 0ocombor 81, 2012, Varch 81, 2018 and 1uno 80, 2018, rospoct|vo|y. 1ho |ncroasos |n ad ongagomonts ovor thoso
por|ods woro pr|mar||y duo to |ncroasos |n VAUs, usor ongagomont |ovo|s, as moasurod by t|mo||no v|ows por VAU, and advort|sor domand. Avorago cost por ad
ongagomont docroasod 18%, 0%, 10%, 12% and 40% soquont|a||y |n tho throo months ondod 1uno 80, 2012, 3optombor 80, 2012, 0ocombor 81, 2012, Varch 81,
2018 and 1uno 80, 2018, rospoct|vo|y. 1ho docroasos |n cost por ad ongagomont ovor thoso por|ods woro pr|mar||y duo to an |ncroaso |n supp|y ot advort|s|ng
|nvontory ava||ab|o |n our auct|ons, wh|ch was part|a||y ottsot by |ncroasod domand tor our lromotod lroducts. 3upp|y ot advort|s|ng |nvontory |ncroasod as wo
oxpandod tho d|str|but|on ot our lromotod lroducts to our mob||o app||cat|ons and add|t|ona| markots outs|do ot tho Un|tod 3tatos |n 2012. 1ho |ncroaso |n
advort|s|ng |nvontory prov|dod us w|th add|t|ona| opportun|t|os to p|aco ads on our p|attorm. 1h|s |ncroaso |n advort|s|ng |nvontory comb|nod w|th ottorts |n tho throo
months ondod 1uno 80, 2018 to |mprovo tho advort|sor oxpor|onco by rot|n|ng our a|gor|thms to ba|anco tho d|str|but|on ot an advort|sor's budgot throughout tho day
roducod tho amount that advort|sors woro roqu|rod to b|d to w|n auct|ons tor our pay-tor-portormanco lromotod lroducts. 1h|s roduct|on |n cost por ad ongagomont
mado our lromotod lroducts moro attract|vo tor our ox|st|ng advort|sors and now advort|sors, |nc|ud|ng sma|| and mod|um s|zod bus|nossos w|th sma||or advort|s|ng
budgots, as wo|| as |ntornat|ona| advort|sors. As wo cont|nuo to opt|m|zo tor advort|sor va|uo and tho ovora|| usor oxpor|onco, tho cost por ad ongagomont may
cont|nuo to doc||no ovor t|mo, and wo oxpoct tho cost por ad ongagomont to doc||no |n tho noar torm. ln tho ovont that cost por ad ongagomont cont|nuos to doc||no,
and wo aro unab|o to cont|nuo to ottsot tho |mpact ot such docroasos on advort|s|ng rovonuo by |ncroas|ng tho numbor ot ad ongagomonts, our advort|s|ng rovonuo
wou|d doc||no. Wo bo||ovo that, |n ordor to |ncroaso tho cost por ad ongagomont, wo w||| nood to |ncroaso advort|sor domand tor our lromotod lroducts by
onhanc|ng tho va|uo ot such products. Wo p|an to |ncroaso tho va|uo ot our lromotod lroducts by |ncroas|ng tho s|zo and ongagomont ot our usor baso, |mprov|ng
our ab|||ty to targot advort|s|ng to our usors' |ntorosts and |mprov|ng tho ab|||ty ot our advort|sors to opt|m|zo tho|r campa|gns and moasuro tho rosu|ts ot tho|r
campa|gns. Wo a|so bo||ovo our goa| ot max|m|z|ng tho |ong-torm va|uo ot our p|attorm tor our usors and advort|sors shou|d mako lromotod lroducts moro attract|vo
to our ox|st|ng and now advort|sors and a||ow us to do||vor moro ro|ovant ads on our p|attorm.
ln add|t|on, our advort|s|ng rovonuo por t|mo||no v|ow |n tho Un|tod 3tatos |s substant|a||y h|ghor than our advort|s|ng rovonuo por t|mo||no v|ow |n tho rost ot
tho wor|d. |or oxamp|o, dur|ng tho throo months ondod 1uno 80, 2018, our advort|s|ng rovonuo por t|mo||no v|ow |n tho Un|tod 3tatos was $2.17 and our advort|s|ng
rovonuo por t|mo||no v|ow |n tho rost ot tho wor|d was $0.80. Wo oxpoct th|s d|spar|ty to cont|nuo tor tho torosooab|o tuturo. Accord|ng|y, to tho oxtont tho numbor ot
|ntornat|ona| usors and ongagomont by |ntornat|ona| usors grow tastor than U.3. usors and ongagomont by U.3. usors, tota| advort|s|ng rovonuo por t|mo||no v|ow
may bo advorso|y |mpactod ovon |t tota| advort|s|ng rovonuo cont|nuos to |ncroaso.
Wo havo a|so boon ab|o to gonorato s|gn|t|cant rovonuo through our mob||o app||cat|ons. Wo |ntroducod lromotod lroducts on our |O3 and Andro|d mob||o
app||cat|ons |n |obruary 2012, and havo s|nco oxpandod to |nc|udo lromotod lroducts on our othor mob||o app||cat|ons. ln tho throo months ondod 1uno 80, 2018,
ovor 0b% ot our advort|s|ng rovonuo was gonoratod trom mob||o dov|cos. Wo havo oxpor|oncod strong growth |n advort|s|ng rovonuo trom mob||o dov|cos bocauso usor
ongagomont, as moasurod by t|mo||no v|ows, |s s|gn|t|cant|y h|ghor on mob||o app||cat|ons than on our dosktop app||cat|ons, and wo oxpoct th|s trond to cont|nuo.
|owovor, lromotod Accounts and lromotod 1ronds roco|vo |oss prom|nonco on our mob||o app||cat|ons than thoy do on our dosktop app||cat|ons, wh|ch moans that
towor usors soo thom d|sp|ayod on our mob||o app||cat|ons, rosu|t|ng |n towor ad ongagomonts w|th lromotod Accounts and towor |mpross|ons ot lromotod

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1abIo ot Contonta
1ronds on mob||o app||cat|ons. lr|mar||y as a rosu|t ot lromotod Accounts and lromotod 1ronds roco|v|ng |oss prom|nonco on mob||o app||cat|ons, wo havo
gonoratod h|ghor advort|s|ng rovonuo por t|mo||no v|ow on our dosktop app||cat|ons than on our mob||o app||cat|ons. A|though advort|s|ng rovonuo por t|mo||no v|ow on
our dosktop app||cat|ons |s h|ghor than advort|s|ng rovonuo por t|mo||no v|ow on our mob||o app||cat|ons, tho substant|a| major|ty ot our t|mo||no v|ows and advort|s|ng
rovonuo |s gonoratod trom mob||o app||cat|ons. Accord|ng|y, to tho oxtont that usor ongagomont on mob||o app||cat|ons cont|nuos to |ncroaso tastor than usor
ongagomont on our dosktop app||cat|ons, advort|s|ng rovonuo por t|mo||no v|ow may bo advorso|y |mpactod ovon |t tota| advort|s|ng rovonuo cont|nuos to |ncroaso.
Wo |ntond to cont|nuo to |ncroaso tho monot|zat|on ot our p|attorm by |mprov|ng tho targot|ng capab|||t|os ot our advort|s|ng sorv|cos to onhanco tho va|uo ot
our lromotod lroducts tor advort|sors, oxpand|ng our sa|os ottorts to roach advort|sors |n add|t|ona| |ntornat|ona| markots, opon|ng our p|attorm to add|t|ona|
advort|sors through our so|t-sorvo advort|s|ng p|attorm and dovo|op|ng now ad tormats tor advort|sors.
Eoctlvoooss o Oor Aovortlslog 5orvlcos. Advort|sors can uso 1w|ttor to commun|cato d|roct|y w|th tho|r to||owors tor troo, but many chooso to purchaso our
advort|s|ng sorv|cos to roach a broador aud|onco and turthor promoto tho|r brands, products and sorv|cos. Wo bo||ovo that |ncroas|ng tho ottoct|vonoss ot our lromotod
lroducts tor advort|sors w||| |ncroaso tho amount that advort|sors spond w|th us. Wo a|m to |ncroaso tho va|uo ot our lromotod lroducts by |ncroas|ng tho s|zo and
ongagomont ot our usor baso, |mprov|ng our ab|||ty to targot advort|s|ng to our usors' |ntorosts and |mprov|ng tho ab|||ty ot our advort|sors to opt|m|zo tho|r campa|gns
and moasuro tho rosu|ts ot tho|r campa|gns. Wo may a|so dovo|op now advort|s|ng products and sorv|cos.
lotorootlooo| Expoosloo. Wo |ntond to |nvost |n our |ntornat|ona| oporat|ons |n ordor to oxpand our usor baso and advort|sor baso and |ncroaso usor
ongagomont and monot|zat|on |ntornat|ona||y. ln tho throo months ondod 1uno 80, 2018, wo had 100.1 m||||on avorago VAUs |ntornat|ona||y comparod to 40.2 m||||on
avorago VAUs |n tho Un|tod 3tatos. ln add|t|on, our numbor ot usors |s grow|ng at a tastor rato |n many |ntornat|ona| markots, such as Argont|na, |ranco, 1apan,
luss|a, 3aud| Arab|a and 3outh Atr|ca. |owovor, wo dor|vo tho substant|a| major|ty ot our advort|s|ng rovonuo trom advort|sors |n tho Un|tod 3tatos. Wo a|so gonorato
s|gn|t|cant|y moro advort|s|ng rovonuo por t|mo||no v|ow |n tho Un|tod 3tatos than |ntornat|ona||y, w|th advort|s|ng rovonuo por t|mo||no v|ow |n tho throo months ondod
1uno 80, 2018 ot $2.17 |n tho Un|tod 3tatos and $0.80 |ntornat|ona||y. |urthor, bocauso wo rocord advort|s|ng rovonuo basod on tho b||||ng |ocat|on ot our advort|sors,
ongagomont by |ntornat|ona| usors w|th ads p|acod by advort|sors |ocatod |n tho Un|tod 3tatos |ncroasos our advort|s|ng rovonuo por t|mo||no v|ow |n tho Un|tod 3tatos.
ln ordor to |ncroaso our |ntornat|ona| advort|s|ng rovonuo, wo p|an to |nvost |n our |ntornat|ona| oporat|ons. ln tho noar torm, wo p|an to |ncroaso tho s|zo ot our sa|os and
markot|ng support toams |n Austra||a, 3raz||, lro|and and tho lothor|ands, and wo p|an to oxtond our so|t-sorvo advort|s|ng p|attorm to countr|os outs|do ot tho Un|tod
3tatos.
Wo taco cha||ongos |n |ncroas|ng our advort|s|ng rovonuo |ntornat|ona||y, |nc|ud|ng |oca| compot|t|on, d|ttoroncos |n advort|sor domand, d|ttoroncos |n tho d|g|ta|
advort|s|ng markot and convont|ons, and d|ttoroncos |n tho mannor |n wh|ch 1w|ttor |s accossod and usod |ntornat|ona||y. Wo taco compot|t|on trom wo|| ostab||shod
compot|tors |n corta|n |ntornat|ona| markots, |nc|ud|ng Kakao |n 3outh Koroa and lllE |n 1apan. ln add|t|on, corta|n |ntornat|ona| markots aro not as tam|||ar w|th d|g|ta|
advort|s|ng |n gonora|, or w|th now torms ot d|g|ta| advort|s|ng, such as our lromotod lroducts. ln thoso jur|sd|ct|ons wo aro |nvost|ng to oducato advort|sors about tho
bonot|ts ot our advort|s|ng sorv|cos. |owovor, wo oxpoct that |t may roqu|ro a s|gn|t|cant |nvostmont ot t|mo and rosourcos to oducato advort|sors |n many |ntornat|ona|
markots. Wo a|so taco cha||ongos |n prov|d|ng corta|n advort|s|ng products, toaturos or ana|yt|cs |n corta|n |ntornat|ona| markots, such as tho Europoan Un|on, duo to
govornmont rogu|at|on. ln add|t|on, |n corta|n omorg|ng markots, many usors accoss

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1abIo ot Contonta
1w|ttor through toaturo phonos w|th ||m|tod tunct|ona||ty, rathor than through smartphonos, our wobs|to or dosktop app||cat|ons. 1h|s ||m|ts our ab|||ty to do||vor corta|n
toaturos to thoso usors and may ||m|t tho ab|||ty ot advort|sors to do||vor compo|||ng ads to usors |n thoso markots. Wo aro |nvost|ng to |mprovo our app||cat|ons tor
toaturo phonos |n ordor to |mprovo our ab|||ty to monot|zo our products and sorv|cos |n |ntornat|ona| markots.
Compotltloo. Wo taco s|gn|t|cant compot|t|on tor usors and advort|sors. Wo compoto aga|nst many compan|os to attract and ongago usors and tor advort|sor
spond, |nc|ud|ng compan|os w|th groator t|nanc|a| rosourcos and substant|a||y |argor usor basos, such as |acobook (|nc|ud|ng lnstagram), Goog|o, l|nkodln, V|crosott
and Yahoo!, wh|ch ottor a var|oty ot lntornot and mob||o dov|co-basod products, sorv|cos and contont. ln rocont yoars thoro havo boon s|gn|t|cant acqu|s|t|ons and
conso||dat|on by and among our actua| and potont|a| compot|tors. Wo must compoto ottoct|vo|y tor usors and advort|sors |n ordor to grow our bus|noss and |ncroaso our
rovonuo. Wo bo||ovo that our ab|||ty to compoto ottoct|vo|y tor usors doponds upon a numbor ot tactors, |nc|ud|ng tho qua||ty ot our products and sorv|cos, and our ab|||ty
to compoto ottoct|vo|y tor advort|sors doponds upon a numbor ot tactors, |nc|ud|ng our ab|||ty to ottor attract|vo advort|s|ng products w|th un|quo targot|ng capab|||t|os and
tho s|zo ot our act|vo usor baso. Wo |ntond to cont|nuo to |nvost |n rosoarch and dovo|opmont to |mprovo our products and sorv|cos tor usors and advort|sors and to grow
our act|vo usor baso |n ordor to addross tho compot|t|vo cha||ongos |n our |ndustry. As part ot our stratogy to |mprovo our products and sorv|cos, wo may acqu|ro othor
compan|os to add ong|noor|ng ta|ont or comp|omontary products and tochno|og|os.
lovostmoot lo lorostroctoro. Wo |ntond to |ncroaso tho capac|ty and onhanco tho capab|||ty and ro||ab|||ty ot our |ntrastructuro. Our |ntrastructuro |s cr|t|ca| to
prov|d|ng usors, p|attorm partnors, advort|sors and data partnors accoss to our p|attorm, part|cu|ar|y dur|ng major p|annod and unp|annod ovonts, such as o|oct|ons,
sport|ng ovonts or natura| d|sastors, whon act|v|ty on our p|attorm |ncroasos dramat|ca||y. As our usor baso and tho act|v|ty on our p|attorm grow, wo oxpoct that
|nvostmonts and oxponsos assoc|atod w|th our |ntrastructuro w||| cont|nuo to grow. 1hoso |nvostmonts and oxponsos |nc|udo tho oxpans|on ot our data contor
oporat|ons and ro|atod oporat|ng costs, add|t|ona| sorvors and notwork|ng oqu|pmont to |ncroaso tho capac|ty ot our |ntrastructuro and |ncroasod bandw|dth costs.
Prooocts ooo 5orvlcos looovotloo. Our ab|||ty to |ncroaso tho s|zo and ongagomont ot our usor baso, attract advort|sors and |ncroaso our rovonuo w||| dopond,
|n part, on our ab|||ty to |mprovo ox|st|ng products and sorv|cos and to succosstu||y dovo|op or acqu|ro now products and sorv|cos. Wo p|an to cont|nuo to mako
s|gn|t|cant |nvostmonts |n rosoarch and dovo|opmont and, trom t|mo to t|mo, wo may acqu|ro compan|os to onhanco our products, sorv|cos and tochn|ca| capab|||t|os.
lovostmoot lo 7o|oot. Wo |ntond to |nvost |n h|r|ng and rota|n|ng ta|ontod omp|oyoos to grow our bus|noss and |ncroaso our rovonuo. As ot 1uno 80, 2018, wo
had approx|mato|y 2,000 tu||-t|mo omp|oyoos, an |ncroaso ot ovor 000 tu||-t|mo omp|oyoos, or approx|mato|y 00%, trom 1uno 80, 2012. Wo oxpoct to grow hoadcount tor
tho torosooab|o tuturo as wo cont|nuo to |nvost |n our bus|noss. Wo havo a|so mado and |ntond to cont|nuo to mako acqu|s|t|ons that add ong|noors, dos|gnors, product
managors and othor porsonno| w|th spoc|t|c tochno|ogy oxport|so. ln add|t|on, wo must rota|n our h|gh-portorm|ng porsonno| |n ordor to cont|nuo to dovo|op, so|| and
markot our products and sorv|cos and manago our bus|noss.
5oosooo|lty. Advort|s|ng spond|ng |s trad|t|ona||y strongost |n tho tourth quartor ot oach yoar. ||stor|ca||y, th|s soasona||ty |n advort|s|ng spond|ng has attoctod
our quartor|y rosu|ts, w|th h|ghor soquont|a| advort|s|ng rovonuo growth trom tho th|rd quartor to tho tourth quartor comparod to soquont|a| advort|s|ng rovonuo growth trom
tho tourth quartor to tho subsoquont t|rst quartor. |or oxamp|o, our advort|s|ng rovonuo |ncroasod 08% and 4b% botwoon tho th|rd and tourth quartors ot 2011 and 2012,
rospoct|vo|y, wh||o advort|s|ng rovonuo tor tho t|rst quartor ot 2012 and 2018 |ncroasod 87% and 1% comparod to tho tourth quartor ot 2011 and 2012, rospoct|vo|y. ln
add|t|on, advort|s|ng

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1abIo ot Contonta
rovonuo por t|mo||no v|ow |ncroasod 81% botwoon tho th|rd and tourth quartor ot 2012, wh||o advort|s|ng rovonuo por t|mo||no v|ow docroasod 18% botwoon tho tourth
quartor ot 2012 and tho t|rst quartor ot 2018. 1ho rap|d growth |n our bus|noss may havo part|a||y maskod soasona||ty to dato and tho soasona| |mpacts may bo moro
pronouncod |n tho tuturo.
5tock-Bosoo Compoosotloo Expooso. 3|nco Vay 2011, wo havo boon grant|ng l3Us to our omp|oyoos. 1ho lro-2018 l3Us vost upon tho sat|stact|on ot
both a sorv|co cond|t|on and a portormanco cond|t|on. 1ho sorv|co cond|t|on tor a major|ty ot tho lro-2018 l3Us |s sat|st|od ovor a por|od ot tour yoars. 1ho portormanco
cond|t|on w||| bo sat|st|od on tho oar||or ot (|) tho dato that |s tho oar||or ot (x) s|x months attor tho ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar
to||ow|ng tho ottoct|vo dato ot th|s ottor|ng (wh|ch wo may o|oct to acco|orato to |obruary 1bth), and (||) tho dato ot a chango |n contro|. As ot 1uno 80, 2018, no stock-
basod componsat|on oxponso had boon rocogn|zod tor tho lro-2018 l3Us bocauso a qua||ty|ng ovont as doscr|bod abovo was not probab|o. ln tho quartor |n wh|ch th|s
ottor|ng |s comp|otod, wo w||| bog|n rocord|ng stock-basod componsat|on oxponso basod on tho grant-dato ta|r va|uo ot tho lro-2018 l3Us us|ng tho acco|oratod
attr|but|on mothod, not ot ost|matod torto|turos. lt th|s ottor|ng had boon comp|otod on 1uno 80, 2018, wo wou|d havo rocordod $820.0 m||||on ot cumu|at|vo stock-basod
componsat|on oxponso ro|atod to tho lro-2018 l3Us on that dato, and an add|t|ona| $284.2 m||||on ot unrocogn|zod stock-basod componsat|on oxponso ro|atod to tho
lro-2018 l3Us, not ot ost|matod torto|turos, wou|d bo rocogn|zod ovor a wo|ghtod-avorago por|od ot approx|mato|y throo yoars. ln add|t|on to stock-basod componsat|on
oxponso assoc|atod w|th tho lro-2018 l3Us, as ot 1uno 80, 2018, wo had unrocogn|zod stock-basod componsat|on oxponso ot approx|mato|y $200.7 m||||on ro|atod to
othor outstand|ng oqu|ty awards, attor g|v|ng ottoct to ost|matod torto|turos, wh|ch wo oxpoct to rocogn|zo ovor a wo|ghtod-avorago por|od ot approx|mato|y tour yoars.
|urthor, wo mado grants ot oqu|ty awards attor 1uno 80, 2018, and wo havo unrocogn|zod stock-basod componsat|on oxponso ot $4b2.0 m||||on ro|atod to such oqu|ty
awards, attor g|v|ng ottoct to ost|matod torto|turos, wh|ch wo oxpoct to rocogn|zo ovor a wo|ghtod-avorago por|od ot approx|mato|y tour yoars.
On tho sott|omont datos tor tho lro-2018 l3Us, wo may chooso to a||ow our omp|oyoos who aro not oxocut|vo ott|cors to so|| sharos ot our common stock
roco|vod upon tho vost|ng and sott|omont ot tho lro-2018 l3Us |n tho pub||c markot to sat|sty tho|r |ncomo tax ob||gat|ons ro|atod to tho vost|ng and sott|omont ot such
awards, or wo may chooso to undortako a not sott|omont ot thoso awards and w|thho|d and rom|t |ncomo taxos on boha|t ot tho ho|dors ot lro-2018 l3Us at tho
app||cab|o m|n|mum statutory ratos. Wo oxpoct tho app||cab|o m|n|mum statutory ratos to bo approx|mato|y 40% on avorago, and tho |ncomo taxos duo wou|d bo
basod on tho thon-curront va|uo ot tho undor|y|ng sharos ot our common stock. 3asod on tho numbor ot lro-2018 l3Us outstand|ng as ot 1uno 80, 2018 tor wh|ch tho
sorv|co cond|t|on had boon sat|st|od on that dato, and assum|ng (|) tho portormanco cond|t|on had boon sat|st|od on that dato and (||) that tho pr|co ot our common stock
at tho t|mo ot sott|omont was oqua| to $ , wh|ch |s tho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, wo ost|mato
that th|s tax ob||gat|on on tho |n|t|a| sott|omont dato wou|d bo approx|mato|y $ |n tho aggrogato. 1ho amount ot th|s ob||gat|on cou|d bo h|ghor or |owor, dopond|ng
on tho pr|co ot sharos ot our common stock on tho |n|t|a| sott|omont dato tor tho lro-2018 l3Us. 1o sott|o thoso lro-2018 l3Us on tho |n|t|a| sott|omont dato,
assum|ng a 40% tax w|thho|d|ng rato, |t wo chooso to undortako a not sott|omont ot a|| ot thoso awards rathor than a||ow|ng our omp|oyoos who aro not oxocut|vo
ott|cors to so|| sharos ot our common stock |n tho pub||c markot to sat|sty tho|r |ncomo tax ob||gat|ons ro|atod to tho vost|ng and sott|omont ot such awards, wo wou|d
oxpoct to do||vor an aggrogato ot approx|mato|y sharos ot our common stock to lro-2018 l3U ho|dors and w|thho|d an aggrogato ot approx|mato|y
sharos ot our common stock. ln connoct|on w|th thoso not sott|omonts, wo wou|d w|thho|d and rom|t tho tax ||ab|||t|os on boha|t ot tho lro-2018 l3U ho|dors to
tho ro|ovant tax author|t|os |n cash.

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Comononta ot RoauIta ot Oorationa
Revenue
Wo gonorato tho substant|a| major|ty ot our rovonuo trom tho sa|o ot advort|s|ng sorv|cos. Wo a|so gonorato rovonuo by ||cons|ng our data to th|rd part|os.
AdvertIsIng 8ervIces
Wo gonorato substant|a||y a|| ot our advort|s|ng rovonuo by so|||ng our lromotod lroducts. Curront|y, our lromotod lroducts cons|st ot tho to||ow|ng:




Promotoo 7woots. lromotod 1woots, wh|ch aro |abo|od as promotod,' appoar w|th|n a usor's t|mo||no or soarch rosu|ts just ||ko an ord|nary 1woot
rogard|oss ot dov|co, whothor |t bo dosktop or mob||o. Us|ng our propr|otary a|gor|thms and undorstand|ng ot tho |ntorosts ot oach usor, wo can do||vor
lromotod 1woots that aro |ntondod to bo ro|ovant to a part|cu|ar usor. Wo onab|o our advort|sors to targot an aud|onco basod on our usors' lntorost Graphs.
Our lromotod 1woots aro pay-tor-portormanco advort|s|ng that aro pr|cod through an auct|on. Wo rocogn|zo advort|s|ng rovonuo whon a usor ongagos w|th a
lromotod 1woot.




Promotoo Accooots. lromotod Accounts, wh|ch aro |abo|od as promotod,' appoar |n tho samo tormat and p|aco as accounts suggostod by our Who to
|o||ow rocommondat|on ong|no. lromotod Accounts prov|do a way tor our advort|sors to grow a commun|ty ot usors who aro |ntorostod |n tho|r bus|noss,
products or sorv|cos. Our lromotod Accounts aro pay-tor-portormanco advort|s|ng that aro pr|cod through an auct|on. Wo rocogn|zo advort|s|ng rovonuo whon
a usor to||ows a lromotod Account.




Promotoo 7rooos. lromotod 1ronds, wh|ch aro |abo|od as promotod,' appoar at tho top ot tho ||st ot trond|ng top|cs tor an ont|ro day |n a part|cu|ar country
or on a g|oba| bas|s. Whon a usor c||cks on a lromotod 1rond, soarch rosu|ts tor that trond aro shown |n a t|mo||no and a lromotod 1woot croatod by tho
advort|sor |s d|sp|ayod to tho usor at tho top ot thoso soarch rosu|ts. Wo so|| our lromotod 1ronds on a t|xod-too-por-day bas|s. Wo toaturo ono lromotod
1rond por day por goography, and rocogn|zo advort|s|ng rovonuo trom a lromotod 1rond whon |t |s d|sp|ayod on our p|attorm.
ata LIcensIng
Wo ottor data ||consos that a||ow our data partnors to accoss, soarch and ana|yzo h|stor|ca| and roa|-t|mo data on our p|attorm, wh|ch data cons|sts ot pub||c
1woots and tho|r contont. Our data partnors gonora||y purchaso ||consos to accoss a|| or a port|on ot our data tor a t|xod por|od, wh|ch |s typ|ca||y two yoars. Wo
rocogn|zo data ||cons|ng rovonuo as tho ||consod data |s mado ava||ab|o to our data partnors. ln tho s|x months ondod 1uno 80, 2018, our top t|vo data partnors
accountod tor approx|mato|y 7b% ot our data ||cons|ng rovonuo, and approx|mato|y 10% ot tota| rovonuo |n tho por|od. Wo oxpoct data ||cons|ng rovonuo to docroaso as
a porcontago ot our tota| rovonuo ovor t|mo.
Cost o| Revenue and OperatIng Expenses
Cost o Rovoooo
Cost ot rovonuo cons|sts pr|mar||y ot data contor costs ro|atod to our co-|ocatod tac|||t|os, wh|ch |nc|udo |oaso and host|ng costs, ro|atod support and
ma|ntonanco costs and onorgy and bandw|dth costs, as wo|| as doproc|at|on ot our sorvors and notwork|ng oqu|pmont, and porsonno|-ro|atod costs, |nc|ud|ng sa|ar|os,
bonot|ts and stock-basod componsat|on, tor our oporat|ons toams. Cost ot rovonuo a|so |nc|udos a||ocatod tac|||t|os and othor support|ng ovorhoad costs, amort|zat|on ot
acqu|rod |ntang|b|o assots and cap|ta||zod |abor costs. Vany ot tho o|omonts ot our cost ot rovonuo aro ro|at|vo|y t|xod, and cannot bo roducod |n tho noar torm to ottsot
any doc||no |n our rovonuo.

00
1abIo ot Contonta
Wo p|an to cont|nuo |ncroas|ng tho capac|ty and onhanc|ng tho capab|||ty and ro||ab|||ty ot our |ntrastructuro to support usor growth and |ncroasod act|v|ty on our
p|attorm. Wo ant|c|pato a s|gn|t|cant |ncroaso |n cost ot rovonuo |n tho yoar ond|ng 0ocombor 81, 2018 as a rosu|t ot tho stock-basod componsat|on oxponso
assoc|atod w|th tho lro-2018 l3Us as doscr|bod |n -|actors Attoct|ng Our |uturo lortormanco-3tock-3asod Componsat|on Exponso.' Wo oxpoct that cost ot
rovonuo w||| |ncroaso |n do||ar amount tor tho torosooab|o tuturo and vary |n tho noar torm trom por|od to por|od as a porcontago ot rovonuo.
Rosoorcb ooo Lovo|opmoot
losoarch and dovo|opmont oxponsos cons|st pr|mar||y ot porsonno|-ro|atod costs, |nc|ud|ng sa|ar|os, bonot|ts and stock-basod componsat|on, tor our ong|noors
and othor omp|oyoos ongagod |n tho rosoarch and dovo|opmont ot our products and sorv|cos. ln add|t|on, rosoarch and dovo|opmont oxponsos |nc|udo a||ocatod
tac|||t|os and othor support|ng ovorhoad costs.
Wo p|an to cont|nuo to h|ro omp|oyoos tor our ong|noor|ng, product managomont and dos|gn toams to support our rosoarch and dovo|opmont ottorts. Wo
ant|c|pato a s|gn|t|cant |ncroaso |n rosoarch and dovo|opmont oxponsos |n tho yoar ond|ng 0ocombor 81, 2018 as a rosu|t ot tho stock-basod componsat|on oxponso
assoc|atod w|th tho lro-2018 l3Us as doscr|bod |n -|actors Attoct|ng Our |uturo lortormanco-3tock-3asod Componsat|on Exponso.' Wo oxpoct that rosoarch
and dovo|opmont costs w||| |ncroaso |n do||ar amount tor tho torosooab|o tuturo and vary |n tho noar torm trom por|od to por|od as a porcontago ot rovonuo.
5o|os ooo Vorkotlog
3a|os and markot|ng oxponsos cons|st pr|mar||y ot porsonno|-ro|atod costs, |nc|ud|ng sa|ar|os, bonot|ts and stock-basod componsat|on tor our omp|oyoos
ongagod |n sa|os, sa|os support, comm|ss|ons, bus|noss dovo|opmont and mod|a, markot|ng, corporato commun|cat|ons and customor sorv|co tunct|ons. ln add|t|on,
markot|ng and sa|os-ro|atod oxponsos a|so |nc|udo markot rosoarch, tradoshows, brand|ng, markot|ng and pub||c ro|at|ons costs, as wo|| as a||ocatod tac|||t|os and
othor support|ng ovorhoad costs.
Wo p|an to cont|nuo to |nvost |n sa|os and markot|ng to oxpand |ntornat|ona||y, grow our advort|sor baso and |ncroaso our brand awaronoss. Wo ant|c|pato a
s|gn|t|cant |ncroaso |n sa|os and markot|ng oxponsos |n tho yoar ond|ng 0ocombor 81, 2018 as a rosu|t ot tho stock-basod componsat|on oxponso assoc|atod w|th tho
lro-2018 l3Us as doscr|bod |n -|actors Attoct|ng Our |uturo lortormanco-3tock-3asod Componsat|on Exponso.' Wo oxpoct that sa|os and markot|ng oxponsos
w||| |ncroaso |n do||ar amount tor tho torosooab|o tuturo and vary |n tho noar torm trom por|od to por|od as a porcontago ot rovonuo.
Ooooro| ooo Aomlolstrotlvo
Gonora| and adm|n|strat|vo oxponsos cons|st pr|mar||y ot porsonno|-ro|atod costs, |nc|ud|ng sa|ar|os, bonot|ts and stock-basod componsat|on, tor our oxocut|vo,
t|nanco, |oga|, |ntormat|on tochno|ogy, human rosourcos and othor adm|n|strat|vo omp|oyoos. ln add|t|on, gonora| and adm|n|strat|vo oxponsos |nc|udo toos and costs tor
protoss|ona| sorv|cos, |nc|ud|ng consu|t|ng, th|rd-party |oga| and account|ng sorv|cos and tac|||t|os and othor support|ng ovorhoad costs that aro not a||ocatod to othor
dopartmonts.
Wo p|an to cont|nuo to oxpand our bus|noss both domost|ca||y and |ntornat|ona||y, and oxpoct to |ncroaso tho s|zo ot our gonora| and adm|n|strat|vo tunct|on to
ho|p grow our bus|noss. Wo oxpoct that wo w||| |ncur add|t|ona| gonora| and adm|n|strat|vo oxponsos as a rosu|t ot bo|ng a pub||c|y-tradod company.

70
1abIo ot Contonta
Wo a|so ant|c|pato a s|gn|t|cant |ncroaso |n gonora| and adm|n|strat|vo oxponsos |n tho yoar ond|ng 0ocombor 81, 2018 as a rosu|t ot tho stock-basod componsat|on
oxponso assoc|atod w|th tho lro-2018 l3Us as doscr|bod |n -|actors Attoct|ng Our |uturo lortormanco-3tock-3asod Componsat|on Exponso.' Wo oxpoct that
gonora| and adm|n|strat|vo oxponsos w||| |ncroaso |n do||ar amount tor tho torosooab|o tuturo and vary |n tho noar torm trom por|od to por|od as a porcontago ot rovonuo.
Provlsloo (Booolt) or locomo 7oxos
lrov|s|on tor |ncomo taxos cons|sts ot todora| and stato |ncomo taxos |n tho Un|tod 3tatos and |ncomo taxos |n corta|n toro|gn jur|sd|ct|ons, and dotorrod
|ncomo taxos and changos |n ro|atod va|uat|on a||owanco rot|oct|ng tho not tax ottocts ot tomporary d|ttoroncos botwoon tho carry|ng amounts ot assots and ||ab|||t|os tor
t|nanc|a| roport|ng purposos and tho amounts usod tor |ncomo tax purposos.
As ot 0ocombor 81, 2012, wo had $208.8 m||||on ot todora| and $210.7 m||||on ot stato not oporat|ng |oss carrytorwards ava||ab|o to roduco tuturo taxab|o
|ncomo. 1hoso not oporat|ng |oss carrytorwards w||| bog|n to oxp|ro tor todora| |ncomo tax purposos and stato |ncomo tax purposos |n 2027 and 2017, rospoct|vo|y. Wo
oxpoct our not oporat|ng |oss carrytorwards to |ncroaso |n tho quartor |n wh|ch wo |n|t|a||y sott|o a port|on ot tho lro-2018 l3Us as a rosu|t ot tho vost|ng ot such l3Us.
Wo a|so havo rosoarch crod|t carrytorwards ot $0.0 m||||on and $10.b m||||on tor todora| and stato |ncomo tax purposos, rospoct|vo|y. 1ho todora| rosoarch crod|t
carrytorward w||| bog|n to oxp|ro |n 2027. 1ho stato rosoarch crod|t carrytorward has no oxp|rat|on dato. Ut|||zat|on ot tho not oporat|ng |oss carrytorwards and rosoarch
carrytorwards crod|t may bo subjoct to an annua| ||m|tat|on duo to tho ownorsh|p chango ||m|tat|ons sot torth |n tho Codo, and s|m||ar stato prov|s|ons. Any annua|
||m|tat|on may rosu|t |n tho oxp|rat|on ot not oporat|ng |ossos and rosoarch crod|ts botoro ut|||zat|on.
RoauIta ot Oorationa
1ho to||ow|ng tab|os sot torth our conso||datod statomont ot oporat|ons data tor oach ot tho por|ods prosontod:

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
(unauditod)
lovonuo
Advort|s|ng sorv|cos $ 7,821 $ 77,710 $ 200,421 $ 101,802 $ 221,482
0ata ||cons|ng 20,0b7 28,008 47,b12 21,0b7 82,208

1ota| rovonuo $ 28,278 $ 100,818 $ 810,088 $ 122,8b0 $ 2b8,08b

Costs and oxponsos
Cost ot rovonuo 48,108 01,808 128,708 b8,1b7 01,828
losoarch and dovo|opmont 20,848 80,170 110,004 40,84b 111,887
3a|os and markot|ng 0,280 2b,088 80,bb1 84,10b 77,007
Gonora| and adm|n|strat|vo 10,0b2 0b,7b7 b0,008 80,7b8 8b,000

1ota| costs and oxponsos 0b,7b7 288,724 804,010 100,80b 810,4b8

loss trom oporat|ons (07,470) (127,411) (77,088) (47,000) (02,828)
lntorost |ncomo (oxponso), not bb (80b) (2,480) (800) (2,740)
Othor |ncomo (oxponso), not (117) (1,b80) 800 (12) (2,b48)

loss botoro |ncomo taxos (07,b41) (120,740) (70,170) (47,008) (08,117)
lrov|s|on (bonot|t) tor |ncomo taxos (217) (1,444) 220 1,100 1,184

lot |oss $ (07,824) $ (128,802) $ (70,800) $ (40,104) $ (00,2b1)












Costs and oxponsos |nc|udo stock-basod componsat|on oxponso as to||ows:

71
(1)
(1)
1abIo ot Contonta
Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
(unauditod)
Cost ot rovonuo $ 200 $ 1,820 $ 800 $ 420 $ 1,0bb
losoarch and dovo|opmont 8,400 88,bb0 12,022 0,201 24,107
3a|os and markot|ng 240 1,bb8 1,840 020 4,014
Gonora| and adm|n|strat|vo 2,078 28,4b2 10,078 8,700 4,802

1ota| $ b,081 $00,884 $2b,741 $ 10,127 $8b,b08










1ho to||ow|ng tab|o sots torth our conso||datod statomont ot oporat|ons data tor oach ot tho por|ods prosontod as a porcontago ot rovonuo:


Yoar Endod
Docombor 81,
5ix Nontha
Endod
Juno 80,
2010 2011 2012 2012 2018
lovonuo
Advort|s|ng sorv|cos 20% 78% 8b% 88% 87%
0ata ||cons|ng 74 27 1b 17 18

1ota| lovonuo 100 100 100 100 100
Costs and oxponsos
Cost ot rovonuo 1b8 b8 41 48 80
losoarch and dovo|opmont 104 7b 88 88 44
3a|os and markot|ng 22 24 27 28 81
Gonora| and adm|n|strat|vo 00 02 10 2b 14

1ota| costs and oxponsos 880 220 124 188 12b

loss trom oporat|ons (280) (120) (24) (88) (2b)
lntorost |ncomo (oxponso), not - (1) (1) (1) (1)
Othor |ncomo (oxponso), not - (1) - - (1)

loss botoro |ncomo taxos (280) (122) (2b) (80) (27)
lrov|s|on (bonot|t) tor |ncomo taxos (1) (1) - 1 -

lot |oss (288)% (121)% (2b)% (40)% (27)%










5ix Nontha Endod Juno 80, 2012 and 2018
Revenue


5ix Nontha Endod
Juno 80,
2012 2018 Chango
(unauditod, in thouaanda)
Advort|s|ng sorv|cos $101,802 $221,482 110%
0ata ||cons|ng 21,0b7 82,208 b8%

1ota| rovonuo $122,8b0 $2b8,08b 107%





lovonuo |n tho s|x months ondod 1uno 80, 2018 |ncroasod by $181.8 m||||on comparod to tho s|x months ondod 1uno 80, 2012.
ln tho s|x months ondod 1uno 80, 2018, advort|s|ng rovonuo |ncroasod by 110% comparod to tho s|x months ondod 1uno 80, 2012. 1ho |ncroaso was pr|mar||y
attr|butab|o to a 70% |ncroaso |n t|mo||no v|ows |n tho s|x months ondod 1uno 80, 2018, comparod to tho samo por|od |n tho pr|or yoar, as wo||

72
1abIo ot Contonta
as an |ncroaso |n domand trom advort|sors that drovo an |ncroaso |n advort|s|ng rovonuo por t|mo||no v|ow ot 22% |n tho s|x months ondod 1uno 80, 2018 comparod to
tho samo por|od |n tho pr|or yoar. 1ho |ncroaso |n t|mo||no v|ows was dr|von by a 44% |ncroaso |n avorago VAUs, and a 24% |ncroaso |n tho usor ongagomont |ovo|s ot
VAUs, as moasurod by t|mo||no v|ows por VAU, |n tho s|x months ondod 1uno 80, 2018 comparod to tho samo por|od |n tho pr|or yoar. 1ho |ncroaso |n advort|s|ng
rovonuo por t|mo||no v|ow was pr|mar||y dr|von by a 100% |ncroaso |n ad ongagomonts por t|mo||no v|ow, part|a||y ottsot by a b0% docroaso |n avorago cost por ad
ongagomont |n tho s|x months ondod 1uno 80, 2018 comparod to tho samo por|od |n tho pr|or yoar. 1ho |ncroaso |n ad ongagomonts por t|mo||no v|ow, comb|nod w|th
tho |ncroaso |n t|mo||no v|ows, rosu|tod |n a 48b% |ncroaso |n tho numbor ot ad ongagomonts |n tho s|x months ondod 1uno 80, 2018 comparod to tho samo por|od |n
tho pr|or yoar. Advort|s|ng rovonuo a|so bonot|tod trom sa|os ot our lromotod lroducts on our mob||o app||cat|ons, wh|ch woro |aunchod |n tho s|x months ondod 1uno
80, 2012, as wo|| as trom an |ncroaso |n |ntornat|ona| rovonuo.
ln tho s|x months ondod 1uno 80, 2018, data ||cons|ng rovonuo |ncroasod by b8% comparod to tho s|x months ondod 1uno 80, 2012. 1ho |ncroaso |n data
||cons|ng rovonuo was attr|butab|o to a 2b% not |ncroaso |n ||cons|ng toos trom ox|st|ng data partnors, as wo|| as an |ncroaso |n ||cons|ng toos trom now data partnors |n
tho s|x months ondod 1uno 80, 2018 comparod to tho samo por|od |n tho pr|or yoar.
Cost o| Revenue


5ix Nontha Endod
Juno 80,
2012 2018 Chango

(unauditod, doIIar amounta
in thouaanda)
Cost ot rovonuo $ b8,1b7 $ 01,828 b8%
Cost ot rovonuo as a porcontago ot rovonuo 48% 80%
ln tho s|x months ondod 1uno 80, 2018, cost ot rovonuo |ncroasod by $88.7 m||||on comparod to tho s|x months ondod 1uno 80, 2012. 1ho |ncroaso was
pr|mar||y attr|butab|o to a $14.4 m||||on |ncroaso |n doproc|at|on oxponso ro|atod to cap|ta| |oasos tor add|t|ona| sorvor and notwork|ng oqu|pmont, a $7.7 m||||on |ncroaso
|n a||ocatod tac|||t|os and othor support|ng ovorhoad costs, a $0.4 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo
hoadcount and rocogn|t|on ot stock-basod componsat|on oxponso ro|atod to lost-2018 l3Us wo bogan to grant |n |obruary 2018, and a $b.2 m||||on |ncroaso |n data
contor costs ro|atod to our co-|ocatod tac|||t|os.
Research and evelopment


5ix Nontha Endod
Juno 80,
2012 2018 Chango

(unauditod, doIIar amounta
in thouaanda)
losoarch and dovo|opmont $ 40,84b $ 111,887 141%
losoarch and dovo|opmont as a porcontago ot rovonuo 88% 44%
ln tho s|x months ondod 1uno 80, 2018, rosoarch and dovo|opmont oxponso |ncroasod by $0b.b m||||on comparod to tho s|x months ondod 1uno 80, 2012. 1ho
|ncroaso was pr|mar||y attr|butab|o to a $01.b m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount and rocogn|t|on
ot stock-basod componsat|on oxponso ro|atod to lost-2018 l3Us wo bogan to grant |n |obruary 2018, and a $18.1 m||||on |ncroaso |n a||ocatod tac|||t|os and othor
support|ng ovorhoad costs. 1hoso |ncroasos woro part|a||y ottsot by a $0.1 m||||on |ncroaso |n tho cap|ta||zat|on ot costs assoc|atod w|th dovo|op|ng sottwaro tor |ntorna|
uso.

78
1abIo ot Contonta
8ales and MarketIng


5ix Nontha Endod
Juno 80,
2012 2018 Chango

(unauditod, doIIar amounta
in thouaanda)
3a|os and markot|ng $ 84,10b $ 77,007 128%
3a|os and markot|ng as a porcontago ot rovonuo 28% 81%
ln tho s|x months ondod 1uno 80, 2018, sa|os and markot|ng oxponsos |ncroasod by $48.0 m||||on comparod to tho s|x months ondod 1uno 80, 2012. 1ho
|ncroaso was pr|mar||y attr|butab|o to a $20.0 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount and rocogn|t|on
ot stock-basod componsat|on oxponso ro|atod to l3Us grantod to domost|c omp|oyoos and othor sorv|co prov|dors start|ng |n |obruary 2018, or lost-2018 l3Us, an
$11.2 m||||on |ncroaso |n markot|ng and sa|os-ro|atod oxponsos and a $b.8 m||||on |ncroaso |n a||ocatod tac|||t|os and othor support|ng ovorhoad costs.
General and AdmInIstratIve


5ix Nontha Endod
Juno 80,
2012 2018 Chango

(unauditod, doIIar amounta
in thouaanda)
Gonora| and adm|n|strat|vo $ 80,7b8 $ 8b,000 14%
Gonora| and adm|n|strat|vo as a porcontago ot rovonuo 2b% 14%
ln tho s|x months ondod 1uno 80, 2018, gonora| and adm|n|strat|vo oxponsos |ncroasod by $4.8 m||||on comparod to tho s|x months ondod 1uno 80, 2012. 1ho
|ncroaso was pr|mar||y attr|butab|o to an |ncroaso |n costs tor protoss|ona| sorv|cos ot $0.0 m||||on and a $4.8 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von
by an |ncroaso |n avorago omp|oyoo hoadcount. 1hoso |ncroasos woro part|a||y ottsot by a $0.0 m||||on docroaso |n una||ocatod tac|||t|os and othor support|ng ovorhoad
costs, rosu|t|ng trom |ncroasod a||ocat|on ot ovorhoad costs to othor tunct|ons w|th h|ghor hoadcount growth.
ProvIsIon (Bene|It} |or lncome 1axes


5ix Nontha Endod
Juno 80,
2012 2018

(unauditod,
in thouaanda)
lrov|s|on tor |ncomo taxos $ 1,100 $ 1,184
Our prov|s|on tor |ncomo taxos |n tho s|x months ondod 1uno 80, 2018 d|d not chango s|gn|t|cant|y comparod to tho s|x months ondod 1uno 80, 2012, rosu|t|ng
|n |ncomo tax oxponso ot $1.1 m||||on |n tho s|x months ondod 1uno 80, 2018. 1ho s||ght docroaso was pr|mar||y duo to a roduct|on |n stato |ncomo taxos and tax
bonot|ts ar|s|ng trom acqu|s|t|ons, ottsot by an |ncroaso |n toro|gn tax oxponso.
Yoara Endod Docombor 81, 2010, 2011 and 2012
Revenue

Yoar Endod Docombor 81,
2010 to 2011
Chango

2011 to 2012
Chango 2010 2011 2012
(|n thouaanda)
Advort|s|ng sorv|cos $ 7,821 $ 77,710 $ 200,421 001% 247%
0ata ||cons|ng 20,0b7 28,008 47,b12 80% 00%

1ota| rovonuo $ 28,278 $ 100,818 $ 810,088 270% 108%








74
1abIo ot Contonta
2012 Comporoo to 2011. lovonuo |n 2012 |ncroasod by $210.0 m||||on comparod to 2011.
ln 2012, advort|s|ng rovonuo |ncroasod by 247% comparod to 2011. 1ho |ncroaso was pr|mar||y attr|butab|o to tho oxpans|on ot our advort|s|ng sorv|co ottor|ngs
|n tho socond ha|t ot 2011 and tho t|rst ha|t ot 2012, as wo|| as a b0% |ncroaso |n avorago VAUs |n 2012 comparod to 2011. Wo oxpandod our advort|s|ng sorv|co
ottor|ngs through tho |ntroduct|on ot lromotod 1woots |n a|| usor t|mo||nos |n Octobor 2011 and lromotod lroducts on mob||o app||cat|ons |n |obruary 2012.
ln 2012, data ||cons|ng rovonuo |ncroasod by 00% comparod to 2011. 1ho |ncroaso |n data ||cons|ng rovonuo was pr|mar||y attr|butab|o to a b1% not |ncroaso |n
||cons|ng toos trom ox|st|ng data partnors |n 2012 comparod to 2011, and to a |ossor oxtont trom an |ncroaso |n ||cons|ng toos trom now data partnors.
2011 Comporoo to 2010. lovonuo |n 2011 |ncroasod by $78.0 m||||on comparod to 2010.
ln 2011, advort|s|ng rovonuo |ncroasod by 001% comparod to 2010. 1ho |ncroaso was pr|mar||y attr|butab|o to tho tu|| yoar |mpact ot lromotod lroducts |n 2011,
as thoso products woro |ntroducod |n 2010, an oxpans|on |n our advort|s|ng sorv|co ottor|ngs |n 2011 and a 11b% |ncroaso |n avorago VAUs |n 2011 comparod to 2010.
Wo |ntroducod our t|rst lromotod lroduct, lromotod 1ronds, |n 1uno 2010 and oxpandod our advort|s|ng sorv|co ottor|ngs through tho |ntroduct|on ot lromotod 1woots |n
a|| usor t|mo||nos |n Octobor 2011.
ln 2011, data ||cons|ng rovonuo |ncroasod by 80% comparod to 2010. 1ho |ncroaso |n data ||cons|ng rovonuo was pr|mar||y attr|butab|o to a 22% not |ncroaso |n
||cons|ng toos trom ox|st|ng data partnors |n 2011 comparod to 2010.
Cost o| Revenue

Yoar Endod Docombor 81,
2010 to 2011
Chango

2011 to 2012
Chango 2010 2011 2012
(|n thouaanda)
Cost ot rovonuo $48,108 $01,808 $128,708 48% 108%
Cost ot rovonuo as a porcontago ot rovonuo 1b8% b8% 41%
2012 Comporoo to 2011. ln 2012, cost ot rovonuo |ncroasod by $07.0 m||||on comparod to 2011. 1ho |ncroaso was pr|mar||y attr|butab|o to a $28.0 m||||on
|ncroaso |n doproc|at|on oxponso ro|atod to add|t|ona| sorvor and notwork|ng oqu|pmont cap|ta| |oasos, a $14.0 m||||on |ncroaso |n amort|zat|on ot acqu|rod |ntang|b|o
assots, a $10.0 m||||on |ncroaso |n data contor costs ro|atod to our co-|ocatod tac|||t|os, a $7.8 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso
|n avorago omp|oyoo hoadcount and a $0.8 m||||on |ncroaso |n a||ocatod tac|||t|os and othor support|ng ovorhoad oxponsos.
2011 Comporoo to 2010. ln 2011, cost ot rovonuo |ncroasod by $18.0 m||||on comparod to 2010. 1ho |ncroaso was pr|mar||y attr|butab|o to a $17.4 m||||on
|ncroaso |n doproc|at|on oxponso ro|atod to add|t|ona| sorvor and notwork|ng oqu|pmont cap|ta| |oasos and an $8.0 m||||on |ncroaso |n porsonno|-ro|atod costs (|nc|ud|ng
a $1.1 m||||on chargo rocordod |n connoct|on w|th tho 2011 tondor ottor wh|ch |s doscr|bod bo|ow), ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount. 1hoso
|ncroasos woro part|a||y ottsot by a $7.1 m||||on docroaso |n data contor costs as a rosu|t ot our movo trom a th|rd-party host|ng so|ut|on to a co-|ocatod tac|||ty.
ln 2011, tho |nvostors |n our 3or|os G convort|b|o protorrod stock t|nanc|ng commoncod a tondor ottor to purchaso sharos ot our common stock and 3or|os A
through 3or|os | convort|b|o protorrod

7b
1abIo ot Contonta
stock trom our omp|oyoos, consu|tants and othor stockho|dors. 1ho tondor ottor c|osod |n 3optombor 2011, and wo rocordod $84.7 m||||on ot stock-basod componsat|on
oxponso ro|atod to tho oxcoss ot tho pr|co por sharo ot our common stock pa|d to our omp|oyoos and consu|tants |n tho tondor ottor ovor tho ta|r va|uo ot tho tondorod
sharos. 1h|s $84.7 m||||on ot stock-basod componsat|on oxponso |n 2011 was a||ocatod among cost ot rovonuo, rosoarch and dovo|opmont oxponsos, sa|os and
markot|ng oxponsos and gonora| and adm|n|strat|vo oxponsos |n amounts ot $1.1 m||||on, $10.1 m||||on, $0.4 m||||on and $14.1 m||||on, rospoct|vo|y.
Research and evelopment

Yoar Endod Docombor 81,
2010 to 2011
Chango

2011 to 2012
Chango 2010 2011 2012
(DoIIar amounta in thouaanda)
losoarch and dovo|opmont $20,848 $80,170 $110,004 178% 48%
losoarch and dovo|opmont as a porcontago ot rovonuo 104% 7b% 88%
2012 Comporoo to 2011. ln 2012, rosoarch and dovo|opmont oxponsos |ncroasod by $88.8 m||||on comparod to 2011. 1ho |ncroaso was pr|mar||y attr|butab|o
to a $21.7 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount, and a $28.0 m||||on |ncroaso |n a||ocatod tac|||t|os
and othor support|ng ovorhoad oxponsos. 1hoso |ncroasos woro part|a||y ottsot by a $0.8 m||||on |ncroaso |n tho cap|ta||zat|on ot costs assoc|atod w|th dovo|op|ng
sottwaro tor |ntorna| uso.
2011 Comporoo to 2010. ln 2011, rosoarch and dovo|opmont oxponsos |ncroasod by $b0.8 m||||on comparod to 2010. 1ho |ncroaso was pr|mar||y attr|butab|o
to a $b0.7 m||||on |ncroaso |n porsonno|-ro|atod costs (|nc|ud|ng a $10.1 m||||on chargo rocordod |n connoct|on w|th tho 2011 tondor ottor), ma|n|y dr|von by an |ncroaso |n
avorago omp|oyoo hoadcount. 1hoso |ncroasos woro part|a||y ottsot by a $8.8 m||||on |ncroaso |n tho cap|ta||zat|on ot costs assoc|atod w|th dovo|op|ng sottwaro tor
|ntorna| uso and a $2.1 m||||on docroaso |n amort|zat|on ot acqu|rod |ntang|b|o assots.
8ales and MarketIng

Yoar Endod Docombor 81,
2010 to 2011
Chango

2011 to 2012
Chango 2010 2011 2012
(DoIIar amounta in thouaanda)
3a|os and markot|ng $0,280 $2b,088 $80,bb1 818% 288%
3a|os and markot|ng as a porcontago ot rovonuo 22% 24% 27%
2012 Comporoo to 2011. ln 2012, sa|os and markot|ng oxponsos |ncroasod by $00.0 m||||on comparod to 2011. 1ho |ncroaso was pr|mar||y attr|butab|o to a
$84.0 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount, a $1b.0 m||||on |ncroaso |n a||ocatod tac|||t|os and othor
support|ng ovorhoad oxponsos and a $10.1 m||||on |ncroaso |n markot|ng and sa|os-ro|atod oxponsos.
2011 Comporoo to 2010. ln 2011, sa|os and markot|ng oxponsos |ncroasod by $10.7 m||||on comparod to 2010. 1ho |ncroaso was pr|mar||y attr|butab|o to a
$10.8 m||||on |ncroaso |n porsonno|-ro|atod costs, ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount, a $1.0 m||||on |ncroaso |n a||ocatod tac|||t|os and othor
support|ng ovorhoad oxponsos and a $1.b m||||on |ncroaso |n markot|ng and sa|os-ro|atod oxponsos.

70
1abIo ot Contonta
General and AdmInIstratIve

Yoar Endod Docombor 81,
2010 to 2011
Chango

2011 to 2012
Chango 2010 2011 2012
(DoIIar amounta in thouaanda)
Gonora| and adm|n|strat|vo $10,0b2 $0b,7b7 $b0,008 288% (0)%
Gonora| and adm|n|strat|vo as a porcontago ot rovonuo 00% 02% 10%
2012 Comporoo to 2011. ln 2012, gonora| and adm|n|strat|vo oxponso docroasod by $0.1 m||||on comparod to 2011. 1ho docroaso was pr|mar||y attr|butab|o to
a $10.0 m||||on docroaso |n una||ocatod tac|||t|os and support|ng costs, dr|von by s|owor hoadcount growth |n tho gonora| and adm|n|strat|vo tunct|on ro|at|vo to othor
tunct|ona| aroas, part|a||y ottsot by a $7.0 m||||on |ncroaso |n porsonno|-ro|atod costs (wh|ch takos |nto account a $14.1 m||||on chargo rocordod |n 2011 |n connoct|on
w|th tho 2011 tondor ottor), ma|n|y dr|von by an |ncroaso |n avorago omp|oyoo hoadcount and an |ncroaso ot $b.0 m||||on |n toos and costs tor protoss|ona| sorv|cos.
Exc|ud|ng tho |mpact ot tho 2011 tondor ottor, porsonno|-ro|atod costs |ncroasod by $22.0 m||||on |n 2012 comparod to 2011.
2011 Comporoo to 2010. ln 2011, gonora| and adm|n|strat|vo oxponsos |ncroasod by $48.8 m||||on comparod to 2010. 1ho |ncroaso was pr|mar||y duo to a
$20.8 m||||on |ncroaso |n porsonno|-ro|atod costs (|nc|ud|ng a $14.1 m||||on chargo rocordod |n connoct|on w|th tho 2011 tondor ottor), wh|ch was dr|von by an |ncroaso |n
avorago omp|oyoo hoadcount, a $12.0 m||||on |ncroaso |n toos and costs tor protoss|ona| sorv|cos and a $7.b m||||on |ncroaso |n una||ocatod tac|||t|os and othor
support|ng costs.
ProvIsIon (Bene|It} |or lncome 1axes

Yoar Endod Docombor 81,
2010 2011 2012
(|n thouaanda)
lrov|s|on (bonot|t) tor |ncomo taxos $ (217) $ (1,444) $ 220
2012 Comporoo to 2011. Our prov|s|on tor |ncomo taxos |n 2012 |ncroasod by $1.7 m||||on comparod to an |ncomo tax bonot|t ot $1.4 m||||on |n 2011. 1ho
|ncroaso was pr|mar||y duo to tho |ncroasod tax oxponsos |n toro|gn and stato jur|sd|ct|ons, part|a||y ottsot by tho docroaso |n |ncomo tax bonot|t ar|s|ng trom
acqu|s|t|ons.
2011 Comporoo to 2010. Our bonot|t tor |ncomo taxos |n 2011 |ncroasod by $1.2 m||||on comparod to an |ncomo tax bonot|t ot $0.2 m||||on |n 2010. 1ho
|ncroaso was pr|mar||y attr|butab|o to an |ncroaso |n tho |ncomo tax bonot|t ar|s|ng trom acqu|s|t|ons.

77
1abIo ot Contonta
OuartorIy RoauIta ot Oorationa
1ho to||ow|ng tab|o sots torth our unaud|tod conso||datod statomont ot oporat|ons data tor oach ot tho ton quartors |n tho por|od ondod 1uno 80, 2018. 1ho
unaud|tod quartor|y statomont ot oporat|ons data sot torth bo|ow havo boon proparod on a bas|s cons|stont w|th our aud|tod annua| conso||datod t|nanc|a| statomonts
and |nc|udo, |n our op|n|on, a|| norma| rocurr|ng adjustmonts nocossary tor a ta|r statomont ot tho t|nanc|a| |ntormat|on conta|nod |n thoso statomonts. Our h|stor|ca|
rosu|ts aro not nocossar||y |nd|cat|vo ot tho rosu|ts that may bo oxpoctod |n tho tuturo. 1ho to||ow|ng quartor|y t|nanc|a| data shou|d bo road |n conjunct|on w|th our
aud|tod conso||datod t|nanc|a| statomonts and tho ro|atod notos |nc|udod o|sowhoro |n th|s prospoctus.

1hroo Nontha Endod

Nar. 81,
2011
Jun. 80,
2011
5o. 80,
2011
Doc. 81,
2011
Nar. 81,
2012
Jun. 80,
2012
5o. 80,
2012
Doc. 81,
2012
Nar. 81,
2018
Jun. 80,
2018
(unauditod, in thouaanda)
ConaoIidatod 5tatomont ot Oorationa Data:
lovonuo
Advort|s|ng rovonuo 11,b01 18,010 10,042 82,b88 44,b00 b0,802 08,00b 00,4b4 100,400 120,072
0ata ||cons|ng 0,840 7,1b4 0,482 8,018 0,818 11,244 18,002 12,708 18,888 18,820

1ota| rovonuo $ 17,010 $ 20,778 $ 20,424 $ 41,200 $ b4,818 $ 08,040 $ 82,827 $ 112,247 $ 114,848 $ 180,202

Costsand oxponsos
Cost ot rovonuo 1b,4b8 10,082 1b,710 10,000 27,020 80,b28 88,008 80,018 41,2bb b0,b78
losoarch and dovo|opmont 10,108 14,087 84,721 20,00b 18,070 27,800 82,810 40,840 47,b74 04,208
3a|osand markot|ng 8,0b2 b,147 7,808 0,821 14,4b0 10,0bb 28,002 28,784 82,480 4b,2b8
Gonora| and adm|n|strat|vo 8,700 18,244 27,770 10,028 18,880 17,800 18,0b4 14,081 10,082 18,114

1ota| costsand oxponsos 87,077 48,710 8b,b84 00,4b8 74,444 04,021 108,028 121,028 188,2b0 178,208

losstrom oporat|ons (20,007) (22,087) (b0,100) (2b,247) (20,181) (20,87b) (21,801) (8,770) (28,007) (88,010)
lntorost |ncomo (oxponso), not (200) (188) (204) (1b8) (877) (b18) (700) (880) (1,288) (1,b18)
Othor |ncomo (oxponso), not (17) (1,487) 80 (112) (2b0) 247 088 (b27) (1,b20) (1,010)

lossbotoro |ncomo taxos (20,844) (24,b02) (b0,828) (2b,b12) (20,707) (27,141) (21,120) (10,188) (20,000) (41,448)
lrov|s|on (bonot|t) tor |ncomo taxos - - (1,008) b40 7b4 442 401 (1,428) 8b7 777

lot |oss $(20,844) $(24,b02) $(b7,88b) $(20,001) $(21,b21) $(27,b88) $ (21,b00) $ (8,70b) $ (27,020) $ (42,22b)




















Othor FinanciaI |ntormation:
Adjustod E3l10A $ (14,411) $(10,817) $(18,14b) $ (4,402) $ (87b) $ 1,b4b $ 2,028 $ 17,b71 $ 11,74b $ 0,047
lon-GAAl not |oss $(17,070) $(10,088) $(18,b20) $(18,2bb) $ (11,800) $(10,808) $ (12,088) $ (271) $ (10,b24) $ (10,804)

Costsand oxponsos|nc|udo stock-basod componsat|on oxponso asto||ows:

1hroo Nontha Endod

Nar. 81,
2011
Jun. 80,
2011
5o. 80,
2011
Doc. 81,
2011
Nar. 81,
2012
Jun. 80,
2012
5o. 80,
2012
Doc. 81,
2012
Nar. 81,
2018
Jun. 80,
2018
(unauditod, in thouaanda)
Cost ot rovonuo $ 0b $ 188 $ 1,827 $ 210 $ 220 $ 200 $ 108 $ 182 $ 484 $ 1,471
losoarch and dovo|opmont 808 8,421 20,482 8,7b8 2,10b 4,120 2,722 8,000 8,42b 1b,772
3a|osand markot|ng 208 247 704 800 807 818 80b 801 2,00b 2,b40
Gonora| and adm|n|strat|vo 1,184 4,841 10,8b0 1,071 2,b8b 0,201 088 1,104 1,048 2,8b4

1ota| stock-basod componsat|on oxponso $ 2,880 $ 8,107 $80,800 $10,488 $ b,227 $10,000 $ 4,208 $ b,840 $ 12,022 $22,040





















78
(1)
(2)
(8)
(1)
1abIo ot Contonta
1ho to||ow|ng tab|o prosontsa roconc|||at|on ot not |ossto Adjustod E3l10Ator oach ot tho por|ods|nd|catod:

1hroo Nontha Endod

Nar. 81,
2011
Jun. 80,
2011
5o. 80,
2011
Doc. 81,
2011
Nar. 81,
2012
Jun. 80,
2012
5o. 80,
2012
Doc. 81,
2012
Nar. 81,
2018
Jun. 80,
2018
(unauditod, in thouaanda)
RoconciIiation ot Not Loaa to Ad[ uatod EB|1DA:
lot |oss $(20,844) $(24,b02) $(b7,88b) $(20,001) $(21,b21) $(27,b88) $(21,b00) $ (8,70b) $(27,020) $(42,22b)
3tock-basod componsat|on oxponso 2,880 8,107 80,800 10,488 b,227 10,000 4,208 b,840 12,022 22,040
0oproc|at|on and amort|zat|on oxponso 8,270 8,028 0,040 10,847 14,020 17,b20 10,0b0 21,001 22,780 2b,017
lntorost and othor oxponso (|ncomo) 277 1,02b 108 20b 080 200 (172) 1,8b7 2,702 2,b82
lrov|s|on (bonot|t) tor |ncomo taxos - - (1,008) b40 7b4 442 401 (1,428) 8b7 777

Adjustod E3l10A $(14,411) $(10,817) $(18,14b) $ (4,402) $ (87b) $ 1,b4b $ 2,028 $17,b71 $ 11,74b $ 0,047





















1ho to||ow|ng tab|o prosontsa roconc|||at|on ot not |ossto non-GAAl not |osstor oach ot tho por|ods|nd|catod:

1hroo Nontha Endod

Nar. 81,
2011
Jun. 80,
2011
5o. 80,
2011
Doc. 81,
2011
Nar. 81,
2012
Jun. 80,
2012
5o. 80,
2012
Doc. 81,
2012
Nar. 81,
2018
Jun. 80,
2018
(unauditod, in thouaanda)
RoconciIiation ot Not Loaa to Non-CAAP Not Loaa:
lot |oss $(20,844) $(24,b02) $(b7,88b) $(20,001) $(21,b21) $(27,b88) $(21,b00) $ (8,70b) $(27,020) $(42,22b)
3tock-basod componsat|on oxponso 2,880 8,107 80,800 10,488 b,227 10,000 4,208 b,840 12,022 22,040
Amort|zat|on ot acqu|rod |ntang|b|o assots 204 277 1,441 2,08b 4,48b b,820 4,084 8,708 8,870 8,802
lncomo tax ottoctsro|atod to acqu|s|t|ons - - (1,00b) (817) 400 - - (710) (200) (87)

lon-GAAl not |oss $(17,070) $(10,088) $(18,b20) $(18,2bb) $(11,800) $(10,808) $(12,088) $ (271) $(10,b24) $(10,804)




















Ouarterly 1rends
Rovoooo
3pond|ng by advort|sors |s trad|t|ona||y strongost |n tho tourth quartor ot oach yoar. ||stor|ca||y, th|s soasona||ty |n advort|s|ng spond|ng has attoctod our
quartor|y rosu|ts w|th h|ghor soquont|a| advort|s|ng rovonuo growth trom tho th|rd to tho tourth quartor comparod to soquont|a| advort|s|ng rovonuo growth trom tho tourth
quartor to tho subsoquont t|rst quartor. |or oxamp|o, our advort|s|ng rovonuo |ncroasod 08% and 4b% botwoon tho th|rd and tourth quartors ot 2011 and 2012,
rospoct|vo|y, wh||o advort|s|ng rovonuo tor tho t|rst quartor ot 2012 and 2018 |ncroasod 87% and 1% comparod to tho tourth quartor ot 2011 and 2012, rospoct|vo|y. ln
add|t|on, advort|s|ng rovonuo por t|mo||no v|ow |ncroasod 81% botwoon tho th|rd and tourth quartor ot 2012, wh||o advort|s|ng rovonuo por t|mo||no v|ow docroasod 18%
botwoon tho tourth quartor ot 2012 and tho t|rst quartor ot 2018. 1ho rap|d growth |n our bus|noss may havo part|a||y maskod soasona||ty to dato and tho soasona|
|mpacts may bo moro pronouncod |n tho tuturo.
Cost o Rovoooo ooo Oporotlog Expoosos
Cost ot rovonuo |ncroasod |n ovory quartor prosontod oxcopt |n tho throo months ondod 1uno 80, 2011, pr|mar||y duo to tho cont|nuod oxpans|on ot our co-
|ocatod data contor tac|||t|os and an |ncroaso |n avorago omp|oyoo hoadcount. Our movo trom a th|rd-party host|ng so|ut|on to a co-|ocatod tac|||ty |n 2011 rosu|tod |n a
tomporary docroaso |n cost ot rovonuo |n tho throo months ondod 1uno 80, 2011.
Oporat|ng oxponso |ncroasod |n ovory quartor prosontod oxcopt |n tho throo months ondod 0ocombor 81, 2011, pr|mar||y duo to tho cont|nuod oxpans|on ot our
tac|||t|os and an |ncroaso |n avorago

70
(2)
(8)
1abIo ot Contonta
omp|oyoo hoadcount. ln tho throo months ondod 3optombor 80, 2011, as a rosu|t ot tho 2011 tondor ottor doscr|bod abovo, wo rocordod a non-rocurr|ng stock-basod
componsat|on oxponso ot $84.7 m||||on ro|atod to tho oxcoss ot tho pr|co por sharo ot our common stock pa|d to our omp|oyoos and consu|tants ovor tho ta|r va|uo ot
tho tondorod sharos. 1h|s $84.7 m||||on componsat|on oxponso was a||ocatod among cost ot rovonuo, rosoarch and dovo|opmont oxponsos, sa|os and markot|ng
oxponsos and gonora| and adm|n|strat|vo oxponsos |n amounts ot $1.1 m||||on, $10.1 m||||on, $0.4 m||||on and $14.1 m||||on, rospoct|vo|y. ln add|t|on to tho stock-basod
componsat|on oxponso, wo oxpor|oncod a var|od |ovo| ot cap|ta||zat|on ot rosoarch and dovo|opmont oxponso as a rosu|t ot tho dovo|opmont ot sottwaro programs and
wobs|tos tor |ntorna| uso, duo to tho t|m|ng and oxtont ot projocts o||g|b|o tor cap|ta||zat|on.
Liquidity and CaitaI Roaourcoa


Yoar Endod
Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(|n thouaanda)
(unauditod)
ConaoIidatod 5tatomonta ot Caah FIowa Data:
lot |oss $(07,824) $(128,802) $(70,800) $(40,104) $(00,2b1)
lot cash prov|dod by (usod |n) oporat|ng act|v|t|os (48,787) (70,b07) (27,08b) (22,004) 0,0b0
lot cash prov|dod by (usod |n) |nvost|ng act|v|t|os 48,074 (824,87b) 40,448 (88,04b) (22,474)
lot cash prov|dod by (usod |n) t|nanc|ng act|v|t|os 114,81b 480,210 (87,124) (14,1b1) (2b,870)
As ot 1uno 80, 2018, wo had $87b.1 m||||on ot cash, cash oqu|va|onts and markotab|o socur|t|os, ot wh|ch $27.8 m||||on was ho|d by our toro|gn subs|d|ar|os.
Cash oqu|va|onts and markotab|o socur|t|os aro compr|sod ot our |nvostmonts |n short-torm and |ong-torm |ntorost-boar|ng ob||gat|ons, |nc|ud|ng govornmont and
|nvostmont-grado dobt socur|t|os and monoy markot tunds.
Our pr|nc|pa| sourco ot ||qu|d|ty has boon pr|vato sa|os ot convort|b|o protorrod stock. |rom our |ncopt|on through 1uno 80, 2018, wo havo comp|otod sovora|
rounds ot oqu|ty t|nanc|ng through tho |ssuanco ot sharos ot our 3or|os A through 3or|os G convort|b|o protorrod stock w|th tota| cash procoods to us ot $7b0.2 m||||on.
lrocoods trom our protorrod stock t|nanc|ng transact|ons havo boon usod pr|mar||y to tund our oporat|ons and acqu|s|t|ons. Wo bo||ovo that our ox|st|ng cash and cash
oqu|va|ont ba|anco togothor w|th cash gonoratod trom oporat|ons w||| bo sutt|c|ont to moot our work|ng cap|ta| and cap|ta| oxpond|turo roqu|romonts tor at |oast tho noxt
12 months.
Our lro-2018 l3Us vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a portormanco cond|t|on. 1ho sorv|co cond|t|on tor a major|ty ot tho lro-2018
l3Us |s sat|st|od ovor a por|od ot tour yoars. 1ho portormanco cond|t|on w||| bo sat|st|od on tho oar||or ot (|) tho dato that |s tho oar||or ot (x) s|x months attor tho ottoct|vo
dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|s ottor|ng (wh|ch wo may o|oct to acco|orato to |obruary 1bth), and (||) tho dato
ot a chango |n contro|. On tho sott|omont datos tor tho lro-2018 l3Us, wo may chooso to a||ow our omp|oyoos who aro not oxocut|vo ott|cors to so|| sharos ot our
common stock roco|vod upon tho vost|ng and sott|omont ot tho lro-2018 l3Us |n tho pub||c markot to sat|sty tho|r |ncomo tax ob||gat|ons ro|atod to tho vost|ng and
sott|omont ot such awards or wo may chooso to undortako a not sott|omont and w|thho|d and rom|t |ncomo taxos on boha|t ot tho ho|dors ot lro-2018 l3Us at tho
app||cab|o m|n|mum statutory ratos. Wo oxpoct tho app||cab|o m|n|mum statutory ratos to bo approx|mato|y 40% on avorago, and tho |ncomo taxos duo wou|d bo
basod on tho thon-curront va|uo ot tho undor|y|ng sharos ot our common stock. 3asod on tho numbor ot lro-2018 l3Us outstand|ng as ot 1uno 80, 2018 tor wh|ch tho
sorv|co cond|t|on had boon sat|st|od on that dato, and assum|ng (|) tho

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1abIo ot Contonta
portormanco cond|t|on had boon sat|st|od on that dato and (||) that tho pr|co ot our common stock at tho t|mo ot sott|omont was oqua| to $ , wh|ch |s tho m|dpo|nt ot
tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, wo ost|mato that th|s tax ob||gat|on on tho |n|t|a| sott|omont dato wou|d bo
approx|mato|y $ |n tho aggrogato. 1ho amount ot th|s ob||gat|on cou|d bo h|ghor or |owor, dopond|ng on tho pr|co ot sharos ot our common stock on tho |n|t|a|
sott|omont dato tor tho lro-2018 l3Us. 1o sott|o thoso lro-2018 l3Us on tho |n|t|a| sott|omont dato, assum|ng a 40% tax w|thho|d|ng rato, |t wo chooso to undortako a
not sott|omont ot a|| ot thoso awards rathor than a||ow|ng our omp|oyoos who aro not oxocut|vo ott|cors to so|| sharos ot our common stock |n tho pub||c markot to
sat|sty tho|r |ncomo tax ob||gat|ons ro|atod to tho vost|ng and sott|omont ot such awards, wo wou|d oxpoct to do||vor an aggrogato ot approx|mato|y sharos ot
our common stock to lro-2018 l3U ho|dors and w|thho|d|ng an aggrogato ot approx|mato|y sharos ot our common stock. ln connoct|on w|th thoso not
sott|omonts, wo wou|d w|thho|d and rom|t tho tax ||ab|||t|os on boha|t ot tho lro-2018 l3U ho|dors to tho ro|ovant tax author|t|os |n cash.
lt wo chooso to undortako a not sott|omont ot our lro-2018 l3Us, thon |n ordor to tund tho tax w|thho|d|ng and rom|ttanco ob||gat|ons on boha|t ot our lro-2018
l3U ho|dors, wo wou|d oxpoct to uso a substant|a| port|on ot our cash and cash oqu|va|ont ba|ancos, or, a|tornat|vo|y, wo may chooso to borrow tunds or a comb|nat|on
ot cash and borrowod tunds to sat|sty thoso ob||gat|ons.
OperatIng ActIvItIes
Cash prov|dod by (usod |n) oporat|ng act|v|t|os cons|stod ot not |oss adjustod tor corta|n non-cash |toms |nc|ud|ng doproc|at|on and amort|zat|on, stock-basod
componsat|on, dotorrod |ncomo taxos and non-cash oxponso ro|atod to acqu|s|t|ons, as wo|| as tho ottoct ot changos |n work|ng cap|ta| and othor act|v|t|os.
Cash prov|dod by oporat|ng act|v|t|os |n tho s|x months ondod 1uno 80, 2018 was $0.7 m||||on, an |ncroaso |n cash |nt|ow ot $82.7 m||||on comparod to tho s|x
months ondod 1uno 80, 2012. Cash prov|dod by oporat|ng act|v|t|os was dr|von by a not |oss ot $00.8 m||||on, as adjustod tor tho oxc|us|on ot non-cash oxponsos
tota||ng $87.0 m||||on and tho ottoct ot changos |n work|ng cap|ta| and othor carry|ng ba|ancos that rosu|tod |n cash outt|ow ot $8.7 m||||on.
Cash usod |n oporat|ng act|v|t|os |n 2012 was $27.0 m||||on, a docroaso |n cash outt|ow ot $42.7 m||||on comparod to 2011. Cash usod |n oporat|ng act|v|t|os was
dr|von by a not |oss ot $70.4 m||||on, as adjustod tor tho oxc|us|on ot non-cash oxponsos tota||ng $104.8 m||||on and tho ottoct ot changos |n work|ng cap|ta| and othor
carry|ng ba|ancos that rosu|tod |n cash outt|ow ot $b8.8 m||||on.
Cash usod |n oporat|ng act|v|t|os |n 2011 was $70.0 m||||on, an |ncroaso |n cash outt|ow ot $21.0 m||||on comparod to 2010. Cash usod |n oporat|ng act|v|t|os
was dr|von by a not |oss ot $128.8 m||||on, as adjustod tor tho oxc|us|on ot non-cash oxponsos tota||ng $80.0 m||||on and tho ottoct ot changos |n work|ng cap|ta| and
othor carry|ng ba|ancos that rosu|tod |n cash outt|ow ot $20.2 m||||on.
lnvestIng ActIvItIes
Our pr|mary |nvost|ng act|v|t|os cons|stod ot purchasos ot proporty and oqu|pmont, part|cu|ar|y purchasos ot sorvors and notwork|ng oqu|pmont, purchasos and
d|sposa| ot markotab|o socur|t|os, |oasoho|d |mprovomonts tor our tac|||t|os and acqu|s|t|ons ot bus|nossos.
Cash usod |n |nvost|ng act|v|t|os |n tho s|x months ondod 1uno 80, 2018 was $22.b m||||on, a docroaso |n cash outt|ow ot $10.2 m||||on comparod to tho s|x
months ondod 1uno 80, 2012. 1ho docroaso |n cash outt|ow was duo to a docroaso |n purchasos ot markotab|o socur|t|os ot $128.7 m||||on and an |ncroaso |n sa|os ot
markotab|o socur|t|os ot $17.8 m||||on, part|a||y ottsot by tho docroaso |n tho procoods trom matur|t|os ot markotab|o socur|t|os ot $122.0 m||||on.

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1abIo ot Contonta
Cash prov|dod by |nvost|ng act|v|t|os |n 2012 was $40.4 m||||on, an |ncroaso |n cash |nt|ow ot $874.8 m||||on comparod to 2011. 1ho |ncroaso |n cash |nt|ow was
duo to tho |ncroaso |n sa|os and matur|t|os ot markotab|o socur|t|os ot $440.b m||||on and a roduct|on |n uso ot cash as acqu|s|t|on cons|dorat|on ot $17.4 m||||on. 3uch
|ncroasos |n cash |nt|ow woro part|a||y ottsot by |ncroasod purchasos ot markotab|o socur|t|os ot $bb.0 m||||on and proporty and oqu|pmont ot $80.1 m||||on.
Cash usod |n |nvost|ng act|v|t|os |n 2011 was $824.0 m||||on, an |ncroaso |n cash outt|ow ot $878.8 m||||on comparod to 2010. 1ho |ncroaso |n cash outt|ow was
duo to an |ncroaso |n purchasos ot markotab|o socur|t|os ot $480.0 m||||on, an |ncroaso |n cash usod as acqu|s|t|on cons|dorat|on ot $17.4 m||||on and an |ncroaso |n
purchasos ot proporty and oqu|pmont ot $b.0 m||||on. 3uch |ncroasos |n cash outt|ow woro part|a||y ottsot by tho |ncroaso ot procoods trom sa|os and matur|t|os ot
markotab|o socur|t|os ot $08.0 m||||on.
Wo ant|c|pato mak|ng cap|ta| oxpond|turos |n 2018 ot approx|mato|y $22b m||||on to $27b m||||on, a port|on ot wh|ch wo w||| t|nanco through cap|ta| |oasos, as
wo cont|nuo to oxpand our co-|ocatod data contors and our ott|co tac|||t|os.
FInancIng ActIvItIes
Our pr|mary t|nanc|ng act|v|t|os cons|stod ot pr|vato sa|os ot convort|b|o protorrod stock, cap|ta| |oaso t|nanc|ng and stock opt|on oxorc|sos by omp|oyoos and
othor sorv|co prov|dors.
Cash usod |n t|nanc|ng act|v|t|os |n tho s|x months ondod 1uno 80, 2018 was $2b.4 m||||on, an |ncroaso ot $11.2 m||||on |n cash outt|ow comparod to tho s|x
months ondod 1uno 80, 2012. 1ho |ncroaso |n cash outt|ow was duo to an |ncroaso |n ropaymonts ot cap|ta| |oaso ob||gat|ons part|a||y ottsot by an |ncroaso |n procoods
trom opt|on oxorc|sos.
Cash usod |n t|nanc|ng act|v|t|os |n 2012 was $87.1 m||||on, an |ncroaso |n cash outt|ow ot $b17.8 m||||on comparod to 2011. 1ho |ncroaso |n cash outt|ow was
duo to tho absonco ot oqu|ty t|nanc|ng transact|ons, an |ncroaso |n ropaymonts ot cap|ta| |oaso ob||gat|ons and a docroaso |n procoods trom opt|on oxorc|sos.
Cash prov|dod by t|nanc|ng act|v|t|os |n 2011 was $480.2 m||||on, an |ncroaso |n cash |nt|ow ot $80b.0 m||||on comparod to 2010. 1ho |ncroaso |n cash |nt|ow was
duo to |ncroasod oqu|ty t|nanc|ng and an |ncroaso |n procoods trom opt|on oxorc|sos, part|a||y ottsot by an |ncroaso |n ropaymonts ot cap|ta| |oaso ob||gat|ons.
Ott BaIanco 5hoot Arrangomonta
Wo do not havo any ott-ba|anco shoot arrangomonts and d|d not havo any such arrangomonts |n tho s|x months ondod 1uno 80, 2018 or |n 2012, 2011 or 2010.
ContractuaI ObIigationa
Our pr|nc|pa| comm|tmonts cons|st ot ob||gat|ons undor cap|ta| and oporat|ng |oasos tor oqu|pmont, ott|co spaco and co-|ocatod data contor tac|||t|os. 1ho
to||ow|ng tab|o summar|zos our comm|tmonts to sott|o contractua| ob||gat|ons |n cash as ot 0ocombor 81, 2012.

Paymonta Duo by Poriod
1otaI
Loaa than
1 yoar 1-8 yoara 8-5 yoara
Noro than
5 yoara
(|n thouaanda)
Oporat|ng |oaso ob||gat|ons $ 100,001 $ 20,000 $ b8,b24 $ b0,001 $ 24,b70
Cap|ta| |oaso ob||gat|ons 121,800 b2,801 0b,808 2,012 -

1ota| contractua| ob||gat|ons $ 281,4b7 $ 70,707 $ 124,417 $ b2,708 $ 24,b70











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1abIo ot Contonta
As ot 0ocombor 81, 2012, wo had ||ab|||t|os ot $12.2 m||||on ro|atod to uncorta|n tax pos|t|ons. 0uo to uncorta|nt|os |n tho t|m|ng ot potont|a| tax aud|ts, tho
t|m|ng ot tho roso|ut|on ot thoso pos|t|ons |s uncorta|n and wo aro unab|o to mako a roasonab|y ro||ab|o ost|mato ot tho t|m|ng ot paymonts |n |nd|v|dua| yoars boyond 12
months. As a rosu|t, th|s amount |s not |nc|udod |n tho abovo tab|o. Wo a|so havo $18.b m||||on ot non-canco|ab|o contractua| comm|tmonts as ot 0ocombor 81, 2012,
pr|mar||y ro|atod to our bandw|dth and othor sorv|cos arrangomonts. 1hoso comm|tmonts aro gonora||y duo w|th|n ono to throo yoars.
CriticaI Accounting PoIicioa and Eatimatoa
Wo proparo our conso||datod t|nanc|a| statomonts |n accordanco w|th gonora||y accoptod account|ng pr|nc|p|os |n tho Un|tod 3tatos, or U.3. GAAl. ln do|ng so,
wo havo to mako ost|matos and assumpt|ons that attoct our roportod amounts ot assots, ||ab|||t|os, rovonuo and oxponsos, as wo|| as ro|atod d|sc|osuro ot cont|ngont
assots and ||ab|||t|os. 1o tho oxtont that thoro aro mator|a| d|ttoroncos botwoon thoso ost|matos and actua| rosu|ts, our t|nanc|a| cond|t|on or oporat|ng rosu|ts wou|d bo
attoctod. Wo baso our ost|matos on past oxpor|onco and othor assumpt|ons that wo bo||ovo aro roasonab|o undor tho c|rcumstancos, and wo ova|uato thoso ost|matos
on an ongo|ng bas|s. Wo rotor to account|ng ost|matos ot th|s typo as cr|t|ca| account|ng po||c|os and ost|matos, wh|ch wo d|scuss turthor bo|ow.
Revenue RecognItIon
Wo gonorato tho substant|a| major|ty ot our rovonuo trom tho sa|o ot advort|s|ng sorv|cos w|th tho ba|anco com|ng trom data ||cons|ng arrangomonts. Wo
gonorato our advort|s|ng rovonuo pr|mar||y trom tho sa|o ot our throo lromotod lroducts: (|) lromotod 1woots, (||) lromotod Accounts and (|||) lromotod 1ronds.
lromotod 1woots and lromotod Accounts aro pay-tor-portormanco advort|s|ng products pr|cod through an auct|on. lromotod 1ronds aro toaturod by goography and
ottorod on a t|xod-too-por-day bas|s. Advort|sors aro ob||gatod to pay whon a usor ongagos w|th a lromotod 1woot or to||ows a lromotod Account or whon a lromotod
1rond |s d|sp|ayod. Usors ongago w|th lromotod 1woots by oxpand|ng, rotwoot|ng, tavor|t|ng or rop|y|ng to 1woots or to||ow|ng tho account that twoots a lromotod
1woot. 1hoso products may bo so|d |n comb|nat|on as a mu|t|p|o o|omont arrangomont or soparato|y on a stand-a|ono bas|s. |oos tor thoso advort|s|ng sorv|cos aro
rocogn|zod |n tho por|od whon advort|s|ng |s do||vorod as ov|doncod by a usor ongag|ng w|th a lromotod 1woot, as capturod by a c||ck, to||ow|ng a lromotod Account or
through tho d|sp|ay ot a lromotod 1rond on our p|attorm. 0ata ||cons|ng rovonuo |s gonoratod basod on month|y sorv|co toos chargod to tho data partnors ovor tho por|od
|n wh|ch 1w|ttor data |s mado ava||ab|o to thom.
lovonuo |s rocogn|zod on|y whon (1) porsuas|vo ov|donco ot an arrangomont ox|sts, (2) tho pr|co |s t|xod or dotorm|nab|o, (8) tho sorv|co |s portormod, and
(4) co||octab|||ty ot tho ro|atod too |s roasonab|y assurod. Wh||o tho major|ty ot our rovonuo transact|ons aro basod on standard bus|noss torms and cond|t|ons, wo a|so
ontor |nto non-standard sa|os agroomonts w|th advort|sors and data partnors that somot|mos |nvo|vo mu|t|p|o o|omonts.
|or arrangomonts |nvo|v|ng mu|t|p|o do||vorab|os, judgmont |s roqu|rod to dotorm|no tho appropr|ato account|ng, |nc|ud|ng dovo|op|ng an ost|mato ot tho stand-
a|ono so|||ng pr|co ot oach do||vorab|o. Whon no|thor vondor-spoc|t|c objoct|vo ov|donco nor th|rd-party ov|donco ot so|||ng pr|co ox|sts, wo uso our bost ost|mato ot
so|||ng pr|co (3E3l) to a||ocato tho arrangomont cons|dorat|on on a ro|at|vo so|||ng pr|co bas|s to oach do||vorab|o. 1ho objoct|vo ot 3E3l |s to dotorm|no tho so|||ng
pr|co ot oach do||vorab|o whon |t |s so|d to advort|sors on a stand-a|ono bas|s. ln dotorm|n|ng 3E3ls, wo tako |nto cons|dorat|on var|ous tactors, |nc|ud|ng, but not
||m|tod to, pr|cos wo chargo tor s|m||ar ottor|ngs, sa|os vo|umo, goograph|os, pr|c|ng stratog|os and markot cond|t|ons. Vu|t|p|o do||vorab|o arrangomonts pr|mar||y
cons|st ot

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1abIo ot Contonta
comb|nat|ons ot our pay-tor-portormanco products, lromotod 1ronds and lromotod Accounts, wh|ch aro pr|cod through an auct|on, and lromotod 1ronds, wh|ch aro
pr|cod on a t|xod-too-por day por goography bas|s. |or arrangomonts that |nc|udo a comb|nat|on ot thoso products, wo dovo|op an ost|mato ot tho so|||ng pr|co tor thoso
products |n ordor to a||ocato any potont|a| d|scount to a|| advort|s|ng products |n tho arrangomont. 1ho ost|mato ot so|||ng pr|co tor pay-tor-portormanco products |s
dotorm|nod basod on tho w|nn|ng b|d pr|co, and tho ost|mato ot so|||ng pr|co tor lromotod 1ronds |s basod on lromotod 1ronds so|d on a stand-a|ono bas|s and/or
soparato|y pr|cod |n a bund|od arrangomont by rotoronco to a ||st pr|co by goography wh|ch |s approvod por|od|ca||y. Wo bo||ovo tho uso ot 3E3l rosu|ts |n rovonuo
rocogn|t|on |n a mannor cons|stont w|th tho undor|y|ng oconom|cs ot tho transact|on and a||ocatos tho arrangomont cons|dorat|on on a ro|at|vo so|||ng pr|co bas|s to
oach do||vorab|o.
lncome 1axes
Wo aro subjoct to |ncomo taxos |n tho Un|tod 3tatos and sovora| toro|gn jur|sd|ct|ons. 3|gn|t|cant judgmont |s roqu|rod |n ova|uat|ng our uncorta|n tax pos|t|ons
and dotorm|n|ng our prov|s|on tor |ncomo taxos.
A|though wo bo||ovo wo havo adoquato|y rosorvod tor our uncorta|n tax pos|t|ons, no assuranco can bo g|von that tho t|na| outcomo ot thoso mattors w||| not bo
d|ttoront. Wo adjust thoso rosorvos |n ||ght ot chang|ng tacts and c|rcumstancos, such as tho c|os|ng ot a tax aud|t or tho rot|nomont ot an ost|mato. 1o tho oxtont that
tho t|na| outcomo ot thoso mattors |s d|ttoront than tho amounts rocordod, such d|ttoroncos w||| |mpact tho prov|s|on tor |ncomo taxos |n tho por|od |n wh|ch such
dotorm|nat|on |s mado. 1ho prov|s|on tor |ncomo taxos |nc|udos tho |mpact ot rosorvo prov|s|ons and changos to rosorvos that aro cons|dorod appropr|ato, as wo|| as any
ro|atod |ntorost or pona|t|os.
Our ottoct|vo tax ratos havo d|ttorod trom tho statutory rato pr|mar||y duo to tho tax |mpact ot toro|gn oporat|ons, stato taxos, corta|n bonot|ts roa||zod |n
rocord|ng tho tax ottocts ot bus|noss comb|nat|ons, and tho rocord|ng ot U.3. va|uat|on a||owanco. Our tuturo prov|s|on tor |ncomo taxos cou|d bo advorso|y attoctod by
oarn|ngs bo|ng |owor than ant|c|patod |n countr|os whoro wo havo |owor statutory ratos and h|ghor than ant|c|patod |n countr|os whoro wo havo h|ghor statutory tax ratos,
changos |n tho va|uat|on ot our dotorrod tax assots or ||ab|||t|os, or changos |n tax |aws, rogu|at|ons or account|ng pr|nc|p|os. ln add|t|on, wo aro subjoct to oxam|nat|on
ot our |ncomo tax roturns by tax author|t|os |n tho Un|tod 3tatos and toro|gn jur|sd|ct|ons. Wo rogu|ar|y assoss tho ||ko||hood ot advorso outcomos rosu|t|ng trom thoso
oxam|nat|ons to dotorm|no tho adoquacy ot our prov|s|on tor |ncomo taxos.
On 1anuary 2, 2018, tho Amor|can 1axpayor lo||ot Act ot 2012 was onactod, wh|ch |nc|udos a ro|nstatomont ot tho todora| rosoarch and dovo|opmont crod|t tor
tho tax yoar ondod 0ocombor 81, 2012. Our conso||datod t|nanc|a| statomonts rot|octod tho ottoct ot tho Amor|can 1axpayor lo||ot Act ot 2012 |n tho s|x months ondod
1uno 80, 2018, tho roport|ng por|od ot onactmont. 1ho Amor|can 1axpayor lo||ot Act ot 2012 d|d not havo a mator|a| ottoct on our conso||datod t|nanc|a| statomonts |n
tho s|x months ondod 1uno 80, 2018 duo to our U.3. va|uat|on a||owanco pos|t|on.
8tock-Based CompensatIon
Our stock-basod componsat|on oxponso tor stock opt|ons grantod to omp|oyoos and othor sorv|co prov|dors |s ost|matod basod on tho opt|on's ta|r va|uo as
ca|cu|atod by tho 3|ack-3cho|os opt|on pr|c|ng modo| and |s rocogn|zod as oxponso ovor tho roqu|s|to sorv|co por|od. 1ho 3|ack-3cho|os modo| roqu|ros var|ous h|gh|y
judgmonta| assumpt|ons, |nc|ud|ng oxpoctod vo|at|||ty and oxpoctod torm. lt any ot tho assumpt|ons usod |n tho 3|ack-3cho|os modo| chango s|gn|t|cant|y, stock-basod
componsat|on oxponso may d|ttor mator|a||y |n tho tuturo trom that rocordod |n tho curront por|od. ln add|t|on, wo aro roqu|rod to ost|mato tho oxpoctod torto|turo rato
and on|y rocogn|zo oxponso tor thoso sharos that aro subjoct to stock opt|ons that aro oxpoctod to vost. Wo ost|mato tho oxpoctod torto|turo rato basod on h|stor|ca|
oxpor|onco and our oxpoctat|ons rogard|ng tuturo pro-vost|ng

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1abIo ot Contonta
torm|nat|on bohav|or ot omp|oyoos and othor sorv|co prov|dors. 1o tho oxtont our actua| torto|turo rato |s d|ttoront trom our ost|mato, stock-basod componsat|on oxponso
|s adjustod accord|ng|y.
3tock-basod componsat|on oxponso tor omp|oyoos |s rocordod not ot ost|matod torto|turo on a stra|ght-||no bas|s ovor tho roqu|s|to sorv|co por|od. 3tock
opt|ons grantod havo a contractua| torm ot ton yoars and gonora||y vost ovor tour yoars. 3tock-basod componsat|on oxponso tor othor sorv|co prov|dors |s romoasurod at
oach roport|ng por|od as sorv|cos aro portormod.
Wo a|so |ssuod rostr|ctod C|ass A jun|or protorrod stock subjoct to a |aps|ng r|ght ot ropurchaso to corta|n cont|nu|ng omp|oyoos |n connoct|on w|th
acqu|s|t|ons. 1ho |aps|ng ot tho r|ght ot ropurchaso |s dopondont on tho rospoct|vo omp|oyoo's cont|nuod omp|oymont w|th us dur|ng tho roqu|s|to sorv|co por|od, wh|ch
|s gonora||y tour yoars trom tho |ssuanco dato. Wo havo tho opt|on to ropurchaso tho unvostod sharos upon torm|nat|on ot omp|oymont pr|or to tho r|ght ot ropurchaso
|aps|ng. 1ho ta|r va|uo ot tho rostr|ctod C|ass A jun|or protorrod stock |ssuod to omp|oyoos |s rocordod as componsat|on oxponso on a stra|ght-||no bas|s ovor tho
roqu|s|to sorv|co por|od. 1hoso sharos ot rostr|ctod C|ass A jun|or protorrod stock aro |nc|udod as part ot othor |ong-torm ||ab|||t|os on tho conso||datod ba|anco shoots.
1ho ta|r va|uo ot thoso sharos |s romoasurod at oach roport|ng por|od unt|| tho rostr|ctod C|ass A jun|or protorrod stock |s sott|od through convors|on or rodompt|on or
unt|| tho rodompt|on toaturo oxp|ros, and tho chango |n ta|r va|uo |s rocordod as an add|t|on to or roduct|on |n componsat|on oxponso dur|ng tho por|od ot chango. 1ho
ta|r va|uo ot thoso sharos |s dotorm|nod basod on tho ta|r va|uo ot tho undor|y|ng C|ass A jun|or protorrod stock ost|matod as part ot tho cap|ta| stock and bus|noss
ontorpr|so va|uat|on procoss.
Our stock-basod componsat|on oxponso tor l3Us |s ost|matod at tho grant dato basod on tho ta|r va|uo ot our common stock. Undor our 2007 l|an, wo havo
grantod l3Us to domost|c and |ntornat|ona| omp|oyoos and othor sorv|co prov|dors. 1ho lro-2018 l3Us vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a
portormanco cond|t|on. 1ho sorv|co cond|t|on tor a major|ty ot tho lro-2018 l3Us |s sat|st|od ovor a por|od ot tour yoars. 1ho portormanco cond|t|on w||| bo sat|st|od on
tho oar||or ot (|) tho dato that |s tho oar||or ot (x) s|x months attor tho ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|s
ottor|ng (wh|ch wo may o|oct to acco|orato to |obruary 1bth), and (||) tho dato ot a chango |n contro|. 1ho l3U sharos aro to bo do||vorod no |ator than 80 days to||ow|ng
tho sat|stact|on ot tho sorv|co and portormanco cond|t|ons.
lost-2018 l3Us aro not subjoct to a portormanco cond|t|on |n ordor to vost. 1ho sorv|co cond|t|on tor a major|ty ot tho lost-2018 l3Us |s sat|st|od ovor a
por|od ot tour yoars. Undor tho torms ot our 2007 l|an, tho sharos undor|y|ng lost-2018 l3Us that sat|sty tho sorv|co cond|t|on aro to bo do||vorod to ho|dors no |ator
than tho t|ttoonth day ot tho th|rd month to||ow|ng tho ond ot tho ca|ondar yoar tho sorv|co cond|t|on |s sat|st|od, but no oar||or than August 1b, 2014. 1ho stock-basod
componsat|on oxponso assoc|atod w|th tho lro-2018 l3Us |s rocordod not ot ost|matod torto|turo on a stra|ght-||no bas|s ovor tho roqu|s|to sorv|co por|od.
As ot 1uno 80, 2018, no stock-basod componsat|on oxponso had boon rocogn|zod tor lro-2018 l3Us bocauso a qua||ty|ng ovont tor tho awards' vost|ng was
not probab|o. ln tho quartor |n wh|ch th|s ottor|ng |s comp|otod, wo w||| bog|n rocord|ng stock-basod componsat|on oxponso basod on tho grant-dato ta|r va|uo ot tho lro-
2018 l3Us us|ng tho acco|oratod attr|but|on mothod, not ot ost|matod torto|turo. 1ho to||ow|ng tab|o summar|zos, on an unaud|tod pro torma bas|s, tho stock-basod
componsat|on oxponso ro|atod to tho lro-2018 l3Us that wo wou|d |ncur dur|ng tho quartor |n wh|ch th|s ottor|ng |s comp|otod, assum|ng th|s ottor|ng was ottoct|vo on
1uno 80, 2018 (|n thousands).

Aa ot Juno 80, 2018 From incotion to Juno 80, 2018
Voatod" Pro-2018 R5ua Outatanding
unvoatod" Pro-2018 R5ua
Outatanding
Pro Forma 5tock-Baaod
Comonaation Exonao
8,848 8b,220 $820,082

8b
(1) (2)
1abIo ot Contonta

|or purpososot th|stab|o, vostod' l3Usroprosont tho sharosundor|y|ng lro-2018 l3Ustor wh|ch tho sorv|co cond|t|on had boon sat|st|od asot 1uno 80, 2018.
|or purpososot th|stab|o, Unvostod' l3Usroprosont tho sharosundor|y|ng lro-2018 l3Ustor wh|ch tho sorv|co cond|t|on had not boon sat|st|od asot 1uno 80, 2018 and oxc|udosost|matod
torto|turosot l3Us.
Wo ost|mato that tho roma|n|ng unrocogn|zod stock-basod componsat|on oxponso ro|at|ng to tho lro-2018 l3Us wou|d bo approx|mato|y $284.2 m||||on, attor
g|v|ng ottoct to ost|matod torto|turos and wou|d bo rocogn|zod ovor a wo|ghtod-avorago por|od ot approx|mato|y throo yoars |t th|s ottor|ng was ottoct|vo on 1uno 80, 2018.
8ummary o| Projected 8tock-Based CompensatIon Expense, Net o| EstImated For|eItures


Romaindor
ot 2018 2014 2015 2010
Boyond
2010 1otaI
(unauditod, in thouaanda)
lro-2018 l3Us $ 00,8bb $ 0b,888 $ 80,40b $ b,727 $ 88b $ 284,220
lost-2018 l3Us 82,08b 02,42b b0,b70 b1,878 10,b40 218,8b2
lostr|ctod C|ass A jun|or and common stock 1b,407 18,484 1b,001 0,2b8 000 b8,840
3tock Opt|ons 4,084 0,188 7,44b 2,000 102 24,088

1ota| $ 140,881 $ 18b,88b $ 11b,b71 $ 00,027 $ 11,b0b $ b80,0b0












ln add|t|on to stock-basod componsat|on oxponso assoc|atod w|th tho lro-2018 l3Us, as ot 1uno 80, 2018, wo had unrocogn|zod stock-basod componsat|on
oxponso ot approx|mato|y $200.7 m||||on ro|atod to othor outstand|ng oqu|ty awards, wh|ch wo oxpoct to rocogn|zo ovor a wo|ghtod-avorago por|od ot approx|mato|y tour
yoars. |urthor, wo mado grants ot oqu|ty awards attor 1uno 80, 2018, and wo havo unrocogn|zod stock-basod componsat|on oxponso ot $4b2.0 m||||on ro|atod to such
oqu|ty awards, attor g|v|ng ottoct to ost|matod torto|turos, wh|ch wo oxpoct to rocogn|zo ovor a wo|ghtod-avorago por|od ot approx|mato|y tour yoars.
valuatIon o| Our Common 8tock
1ho h|stor|ca| va|uat|ons ot our common stock woro dotorm|nod |n accordanco w|th tho gu|do||nos out||nod |n tho Amor|can lnst|tuto ot Cort|t|od lub||c
Accountants lract|co A|d, Vo|ootloo o Prlvoto|y-lo|o-Compooy Eqolty 5ocorltlos lssooo os Compoosotloo. ln tho absonco ot a pub||c trad|ng markot, wo cons|dorod a||
ro|ovant tacts and c|rcumstancos known at tho t|mo ot va|uat|on, mado corta|n assumpt|ons basod on tuturo oxpoctat|ons and oxorc|sod s|gn|t|cant judgmont to
dotorm|no tho ta|r va|uo ot our common stock. 1ho tactors cons|dorod |n dotorm|n|ng tho ta|r va|uo |nc|udo, but aro not ||m|tod to, tho to||ow|ng:




th|rd-party va|uat|ons ot our common stock comp|otod as ot lovombor 18, 2011, Varch 1b, 2012, Octobor 1b, 2012, 0ocombor 4, 2012, |obruary 2b, 2018,
Vay 1b, 2018 and August b, 2018,



rocont |ssuancos ot protorrod stock, as wo|| as tho r|ghts, protoroncos and pr|v||ogos ot our protorrod stock ro|at|vo to our common stock,



rocont pr|vato stock sa|o transact|ons,



our h|stor|ca| t|nanc|a| rosu|ts and ost|matod tronds and projoct|ons tor our tuturo oporat|ng and t|nanc|a| portormanco,



tho ||ko||hood ot ach|ov|ng a ||qu|d|ty ovont, such as an |n|t|a| pub||c ottor|ng or sa|o ot our company, g|von prova|||ng markot cond|t|ons,

80
(1)
(2)
1abIo ot Contonta


tho markot portormanco ot comparab|o, pub||c|y-tradod compan|os, and



tho ovora|| oconom|c and |ndustry cond|t|ons and out|ook.
Wo havo grantod tho to||ow|ng l3Us and stock opt|ons s|nco 1anuary 1, 2012:

Crant Dato
5haroa
undorIying
R5ua
5haroa
undorIying
Otiona
Crant-Dato Fair
VaIuo Por 5haro
(R5ua)
Exorciao Prico
Por 5haro
(Otiona)
2012
Firat Ouartor
1anuary 18, 2012 474,000 - $ 18.0b -
|obruary 10, 2012 7,87b,221 - $ 18.0b -
Varch 0, 2012 887,b00 - $ 18.0b -
5ocond Ouartor
Apr|| 12, 2012 4,487,b7b 1,880,040 $ 14.42 $ 14.42
Vay 11, 2012 4,884,87b - $ 14.42 -
1uno 10, 2012 1,004,870 110,b82 $ 14.42 $ 14.42
1hird Ouartor
1u|y 10, 2012 8,408,000 - $ 14.42 -
August 0, 2012 2,411,000 - $ 14.42 -
3optombor 27, 2012 bbb,000 - $ 14.42 -
Fourth Ouartor
Octobor 1, 2012 2,270,b00 - $ 14.42 -
Octobor 12, 2012 1,088,100 - $ 14.42 -
lovombor 7, 2012 200,000 - $ 18.40 -
lovombor 12, 2012 8,200,b82 - $ 18.40 -
0ocombor 20, 2012 2,241,b00 - $ 17.00 -
2018
Firat Ouartor
1anuary 24, 2018 1,08b,700 - $ 17.00 -
|obruary 18, 2018 1,87b,004 - $ 17.00 -
Varch 8, 2018 0,480,800 - $ 17.00 -
5ocond Ouartor
Apr|| 2, 2018 20b,b00 - $ 17.00
Apr|| 10, 2018 1,077,0b0 - $ 17.00 -
Apr|| 24, 2018 240,000 - $ 17.00 -
Vay 10, 2018 1,778,b07 - $ 17.00 -
1uno 20, 2018 2,288,200 - $ 17.41 -
1hird Ouartor
August 0, 2018 20,072,280 - $ 20.02 -
3optombor b, 2018 20,700 - $ 20.02 -
ln ordor to dotorm|no tho ta|r va|uo ot our common stock undor|y|ng stock opt|on and l3U grants, wo gonora||y t|rst dotorm|no our bus|noss ontorpr|so va|uo, or
3Ev, and thon a||ocato tho 3Ev to oach o|omont ot our cap|ta| structuro (protorrod stock, common stock, warrant and opt|ons). Our 3Ev was ost|matod us|ng tho
subjoct company transact|on mothod, wh|ch |s ono ot tho throo pr|mary mothodo|og|os ot tho markot-basod approach. 1h|s mothodo|ogy ut|||zos tho most rocont
nogot|atod arm's-|ongth transact|ons |nvo|v|ng tho sa|o or transtor ot our stock or oqu|ty |ntorosts. Our |nd|catod 3Ev at oach va|uat|on dato was a||ocatod to tho sharos
ot protorrod stock, common stock, warrant and opt|ons us|ng tho 3|ack-3cho|os opt|on-pr|c|ng modo|. Est|matos ot tho vo|at|||ty ot our common stock woro basod on
ava||ab|o |ntormat|on on tho vo|at|||ty ot our common stock ot comparab|o, pub||c|y-tradod compan|os and ost|matos ot oxpoctod torm woro basod on tho ost|matod t|mo
to ||qu|d|ty ovont.

87
1abIo ot Contonta
Novombor 18, 2011 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $18.0b por sharo as ot lovombor 18, 2011. ln ost|mat|ng our 3Ev, wo ut|||zod tho pro-monoy va|uat|on
|mp||od |n tho 3or|os G convort|b|o protorrod stock t|nanc|ng comp|otod |n 1u|y 2011 as tho most appropr|ato |nd|cat|on ot our aggrogato oqu|ty va|uo, adjustod by an
ost|matod rato ot roturn. 1ho 3Ev rosu|t|ng trom th|s ana|ys|s was thon a||ocatod to our cap|ta| structuro us|ng tho 3|ack-3cho|os opt|on-pr|c|ng modo| and a non-
markotab|||ty d|scount ot 1b% was app||od. 3asod on tho va|uat|on ot our common stock comp|otod |n lovombor 2011, tho ta|r va|uo ot l3Us grantod through Varch 0,
2012 was dotorm|nod to bo $18.0b por sharo.
Vorcb 15, 2012 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $14.42 por sharo as ot Varch 1b, 2012. ln ost|mat|ng our 3Ev, wo ut|||zod tho pro-monoy va|uat|on
|mp||od |n tho 3or|os G convort|b|o protorrod stock t|nanc|ng as tho most appropr|ato |nd|cat|on ot our aggrogato oqu|ty va|uo, adjustod by tho ost|matod rato ot roturn.
Wo dotorm|nod that an |ncroaso |n tho aggrogato oqu|ty va|uo cons|stont w|th a roqu|rod rato ot roturn was appropr|ato cons|dor|ng our rap|d growth and dovo|opmonts
s|nco tho dato ot tho 3or|os G convort|b|o protorrod stock t|nanc|ng. 1ho |ncroaso |n va|uat|on was turthor supportod by |mprovomonts |n our bus|noss and t|nanc|a|
rosu|ts as ov|doncod by our soquont|a| rovonuo growth botwoon 1u|y 2011 and Varch 2012 ot $b4.8 m||||on |n tho throo months ondod Varch 81, 2012 comparod to
$20.4 m||||on |n tho throo months ondod 3optombor 80, 2011. Wo a|so cont|nuod to progross on our bus|noss p|an. 1ho oporat|ng motr|cs a|so cont|nuod to |mprovo |n
tho throo months ondod Varch 81, 2012 comparod to tho throo months ondod 3optombor 80, 2011. 1ho 3Ev rosu|t|ng trom th|s ana|ys|s was thon a||ocatod to our
cap|ta| structuro us|ng tho 3|ack-3cho|os opt|on-pr|c|ng modo| and a non-markotab|||ty d|scount ot 1b% was app||od. 3asod on tho va|uat|on ot our common stock
comp|otod |n Varch 2012, tho ta|r va|uo ot l3Us and oxorc|so pr|co ot stock opt|ons grantod through Octobor 12, 2012 was dotorm|nod to bo $14.42 por sharo.
Octobor 15, 2012 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $18.40 por sharo as ot Octobor 1b, 2012 basod on tho subjoct company transact|on mothod.
ln tho absonco ot a rocont oqu|ty t|nanc|ng trom wh|ch wo h|stor|ca||y dor|vod tho |mp||od 3Ev, wo ut|||zod tho arm's-|ongth transact|ons ot our oqu|ty |n tho
socondary markot trom our most rocont common stock va|uat|on dato ot Varch 1b, 2012 through Octobor 1b, 2012 to ca|cu|ato tho ta|r va|uo ot our common stock.
|actors cons|dorod |n th|s mothodo|ogy |nc|udod s|zo and amount ot oqu|ty so|d, ro|at|onsh|p ot tho part|os |nvo|vod, t|m|ng comparod to tho va|uat|on dato and our
t|nanc|a| cond|t|on at tho t|mo ot tho sa|o. ln rocont socondary markot common stock transact|ons, tho pr|co ot our common stock rangod botwoon $1b.b0 and $2b.b0
por sharo, w|th a wo|ghtod-avorago transact|on pr|co ot approx|mato|y $18.40 por sharo. 3asod on tho va|uat|on ot our common stock comp|otod |n Octobor 2012, tho
ta|r va|uo ot l3Us grantod through lovombor 12, 2012 was dotorm|nod to bo $18.40 por sharo.
Locombor 4, 2012 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $17.00 por sharo as ot 0ocombor 4, 2012. ln ost|mat|ng our 3Ev, wo ut|||zod tho pro-monoy va|uat|on
|mp||od |n tho thon-pond|ng nogot|at|ons tor a th|rd-party tondor ottor to purchaso stock trom ox|st|ng stockho|dors. As ot tho va|uat|on dato, wo had ontorod |nto a non-
b|nd|ng torm shoot tor a tondor ottor, wh|ch out||nod tho th|rd-party |nvostor's |ntont to purchaso $7b m||||on worth ot our common stock and C|ass A jun|or protorrod
stock trom omp|oyoos, consu|tants and othor stockho|dors at $17.00 por sharo. 1ho 3Ev, wh|ch was dor|vod trom tho proposod tondor ottor transact|on pr|co ot $17.00
por sharo ot our common stock and C|ass A jun|or protorrod stock, was thon a||ocatod to our cap|ta| structuro us|ng tho 3|ack-

88
1abIo ot Contonta
3cho|os opt|on-pr|c|ng modo|. Wo a|so cons|dorod socondary markot act|v|ty and dotorm|nod that such act|v|ty was cons|stont w|th tho $17.00 por sharo pr|co |n tho
proposod tondor ottor. 3asod on tho va|uat|on ot our common stock comp|otod |n 0ocombor 2012, tho ta|r va|uo ot l3Us grantod through |obruary 18, 2018 was
dotorm|nod to bo $17.00 por sharo.
lobroory 25, 2018 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $17.00 por sharo as ot |obruary 2b, 2018. ln ost|mat|ng our 3Ev, wo ut|||zod tho pro-monoy va|uat|on
|mp||od |n tho thon-rocont|y |aunchod, but not yot c|osod, th|rd party tondor ottor. As ot tho va|uat|on dato, tho tondor ottor was ongo|ng. 1ho tondor ottor was comp|otod
on Varch 4, 2018 w|th a tota| ot $b0.0 m||||on worth ot sharos ot our common stock and C|ass A jun|or protorrod stock bo|ng purchasod. 1ho 3Ev, wh|ch was dor|vod
trom tho tondor ottor transact|on pr|co ot $17.00 por sharo ot our common stock and C|ass A jun|or protorrod stock, was thon a||ocatod to our cap|ta| structuro us|ng tho
3|ack-3cho|os opt|on-pr|c|ng modo|. Wo a|so cons|dorod socondary markot act|v|ty and dotorm|nod that such act|v|ty was cons|stont w|th tho $17.00 por sharo pr|co |n
tho tondor ottor. 3asod on tho va|uat|on ot our common stock comp|otod |n |obruary 2018, tho ta|r va|uo ot l3Us grantod through Vay 10, 2018 was dotorm|nod to bo
$17.00 por sharo.
Voy 15, 2018 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $17.41 por sharo as ot Vay 1b, 2018 basod on tho subjoct company transact|on mothod. Wo ut|||zod
tho arm's-|ongth transact|ons ot our oqu|ty socur|t|os |n tho socondary markot s|nco our most rocont common stock va|uat|on dato, |obruary 2b, 2018, and tho tondor
ottor comp|otod on Varch 4, 2018 to ost|mato tho ta|r va|uo ot our common stock. |actors cons|dorod |n th|s mothodo|ogy |nc|udod tho numbor ot sharos so|d,
ro|at|onsh|p ot tho part|os |nvo|vod, t|m|ng ot tho transact|ons |n ro|at|on to tho va|uat|on dato and our t|nanc|a| cond|t|on. 1ho wo|ghtod-avorago transact|on pr|co ot tho
rocont socondary markot common stock transact|ons and tho tondor ottor was approx|mato|y $17.41 por sharo. 3asod on tho va|uat|on ot our common stock comp|otod
|n Vay 2018, tho ta|r va|uo ot l3Us grantod through 1uno 20, 2018 was dotorm|nod to bo $17.41 por sharo.
Aogost 5, 2018 Vo|ootloo
Wo dotorm|nod tho ta|r va|uo ot our common stock to bo $20.02 por sharo as ot August b, 2018 basod on tho subjoct company transact|on mothod. Wo ut|||zod
tho arm's-|ongth transact|ons ot our oqu|ty socur|t|os |n tho socondary markot s|nco our most rocont common stock va|uat|on dato, Vay 1b, 2018, to ost|mato tho ta|r
va|uo ot our common stock. |actors cons|dorod |n th|s mothodo|ogy |nc|udod tho numbor ot sharos so|d, ro|at|onsh|p ot tho part|os |nvo|vod, t|m|ng ot tho transact|ons |n
ro|at|on to tho va|uat|on dato and our t|nanc|a| cond|t|on. 1ho wo|ghtod-avorago transact|on pr|co ot tho rocont socondary markot common stock transact|ons was
approx|mato|y $20.02 por sharo. 3asod on tho va|uat|on ot our common stock comp|otod |n August 2018, tho ta|r va|uo ot l3Us grantod through 3optombor b, 2018 was
dotorm|nod to bo $20.02 por sharo.
Ouantitativo and OuaIitativo DiacIoauro about Narkot Riak
Wo havo oporat|ons both w|th|n tho Un|tod 3tatos and |ntornat|ona||y, and wo aro oxposod to markot r|sks |n tho ord|nary courso ot our bus|noss. 1hoso r|sks
|nc|udo pr|mar||y |ntorost rato and toro|gn oxchango r|sks.

80
1abIo ot Contonta
lnterest Rate FluctuatIon RIsk
Our |nvostmont portto||o ma|n|y cons|sts ot short-torm and |ong-torm |ntorost-boar|ng ob||gat|ons, |nc|ud|ng govornmont and |nvostmont-grado dobt socur|t|os and
monoy markot tunds. 1hoso socur|t|os aro c|ass|t|od as ava||ab|o-tor-sa|o and, consoquont|y, aro rocordod on tho conso||datod ba|anco shoots at ta|r va|uo w|th
unroa||zod ga|ns or |ossos roportod as a soparato componont ot accumu|atod othor comprohons|vo |ncomo (|oss), not ot tax. Our |nvostmont po||cy and stratogy |s
tocusod on tho prosorvat|on ot cap|ta| and support|ng our ||qu|d|ty roqu|romonts. Wo do not ontor |nto |nvostmonts tor trad|ng or spocu|at|vo purposos.
A r|so |n |ntorost ratos cou|d havo a mator|a| advorso |mpact on tho ta|r va|uo ot our |nvostmont portto||o. 3asod on our |nvostmont portto||o ba|anco as ot
0ocombor 81, 2012 and 1uno 80, 2018, a hypothot|ca| |ncroaso |n |ntorost ratos ot 100 bas|s po|nts wou|d rosu|t |n a docroaso ot approx|mato|y $0.0 m||||on |n tho
markot va|uo ot our ava||ab|o-tor-sa|o socur|t|os. Wo curront|y do not hodgo thoso |ntorost rato oxposuros.
ForeIgn Currency Exchange RIsk
7roosoctloo Exposoro
Wo transact bus|noss |n var|ous toro|gn curronc|os and havo |ntornat|ona| rovonuo, as wo|| as costs donom|natod |n toro|gn curronc|os, pr|mar||y tho Euro,
3r|t|sh lound and 1apanoso Yon. 1h|s oxposos us to tho r|sk ot t|uctuat|ons |n toro|gn curroncy oxchango ratos. Accord|ng|y, changos |n oxchango ratos, and |n
part|cu|ar a strongthon|ng ot tho U.3. do||ar, wou|d nogat|vo|y attoct our rovonuo and othor oporat|ng rosu|ts as oxprossod |n U.3. do||ars.
Wo havo oxpor|oncod and w||| cont|nuo to oxpor|onco t|uctuat|ons |n our not |oss as a rosu|t ot transact|on ga|ns or |ossos ro|atod to rova|u|ng corta|n curront
assot and curront ||ab|||ty ba|ancos that aro donom|natod |n curronc|os othor than tho tunct|ona| curroncy ot tho ont|t|os |n wh|ch thoy aro rocordod. |oro|gn curroncy
ga|n and |oss woro not s|gn|t|cant |n 2010, 2011 or 2012 or |n tho s|x months ondod 1uno 80, 2018. At th|s t|mo wo do not, but wo may |n tho tuturo, ontor |nto
dor|vat|vos or othor t|nanc|a| |nstrumonts |n an attompt to hodgo our toro|gn curroncy oxchango r|sk. lt |s d|tt|cu|t to prod|ct tho |mpact hodg|ng act|v|t|os wou|d havo on
our rosu|ts ot oporat|ons.
7roos|otloo Exposoro
Wo aro a|so oxposod to toro|gn oxchango rato t|uctuat|ons as wo convort tho t|nanc|a| statomonts ot our toro|gn subs|d|ar|os |nto U.3. do||ars |n conso||dat|on. lt
thoro |s a chango |n toro|gn curroncy oxchango ratos, tho convors|on ot our toro|gn subs|d|ar|os' t|nanc|a| statomonts |nto U.3. do||ars wou|d rosu|t |n a ga|n or |oss
rocordod as a componont ot accumu|atod othor comprohons|vo |ncomo (|oss) wh|ch |s part ot stockho|dors' dot|c|t.
lovonuo and ro|atod oxponsos gonoratod trom our |ntornat|ona| subs|d|ar|os aro gonora||y donom|natod |n tho curronc|os ot tho |oca| countr|os. lr|mary
curronc|os |nc|udo tho Euros, 3r|t|sh lound and 1apanoso Yon. 1ho statomonts ot |ncomo ot our |ntornat|ona| oporat|ons aro trans|atod |nto U.3. do||ars at oxchango
ratos |nd|cat|vo ot markot ratos dur|ng oach app||cab|o por|od. 1o tho oxtont tho U.3. do||ar strongthons aga|nst toro|gn curronc|os, tho trans|at|on ot thoso toro|gn
curroncy-donom|natod transact|ons wou|d rosu|t |n roducod conso||datod rovonuo and oporat|ng oxponsos. Convorso|y, our conso||datod rovonuo and oporat|ng
oxponsos wou|d |ncroaso |t tho U.3. do||ar woakons aga|nst toro|gn curronc|os. |oro|gn curroncy trans|at|on ga|ns and |ossos woro not s|gn|t|cant |n 2010, 2011 or 2012
or |n tho s|x months ondod 1uno 80, 2018.

00
1abIo ot Contonta
LE11ER FRON Q1W|11ER
1w|ttor was born on Varch 21, 2000 w|th just 24 charactors:

Wo startod w|th a s|mp|o |doa: sharo what you'ro do|ng, 140 charactors at a t|mo. loop|o took that |doa and strongthonod |t by us|ng Qnamos to havo pub||c
convorsat|ons, #hashtags to organ|zo movomonts, and lotwoots to sproad nows around tho wor|d. 1w|ttor roprosonts a sorv|co shapod by tho poop|o, tor tho poop|o.
1ho m|ss|on wo sorvo as 1w|ttor, lnc. |s to g|vo ovoryono tho powor to croato and sharo |doas and |ntormat|on |nstant|y w|thout barr|ors. Our bus|noss and rovonuo w|||
a|ways to||ow that m|ss|on |n ways that |mprovo-and do not dotract trom-a troo and g|oba| convorsat|on.
1hank you tor support|ng us through your 1woots, your bus|noss, and now, your potont|a| ownorsh|p ot th|s sorv|co wo cont|nuo to bu||d w|th you.
Yours,
Qtw|ttor

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1abIo ot Contonta
Bu5|NE55
Ovorviow
1w|ttor |s a g|oba| p|attorm tor pub||c so|t-oxpross|on and convorsat|on |n roa| t|mo. 3y dovo|op|ng a tundamonta||y now way tor poop|o to croato, d|str|buto and
d|scovor contont, wo havo domocrat|zod contont croat|on and d|str|but|on, onab||ng any vo|co to ocho around tho wor|d |nstant|y and unt||torod.
Our p|attorm |s un|quo |n |ts s|mp||c|ty: 1woots aro ||m|tod to 140 charactors ot toxt. 1h|s constra|nt makos |t oasy tor anyono to qu|ck|y croato, d|str|buto and
d|scovor contont that |s cons|stont across our p|attorm and opt|m|zod tor mob||o dov|cos. As a rosu|t, 1woots dr|vo a h|gh vo|oc|ty ot |ntormat|on oxchango that makos
1w|ttor un|quo|y ||vo.' Wo a|m to bocomo an |nd|sponsab|o da||y compan|on to ||vo human oxpor|oncos.
loop|o aro at tho hoart ot 1w|ttor. loop|o como to 1w|ttor tor many roasons, and wo bo||ovo that two ot tho most s|gn|t|cant aro tho broadth ot 1w|ttor contont
and our broad roach. Wo havo a|roady ach|ovod s|gn|t|cant g|oba| sca|o, and wo cont|nuo to grow. Wo havo moro than 21b m||||on VAUs, and moro than 100 m||||on
da||y act|vo usors, spann|ng noar|y ovory country. Our usors |nc|udo m||||ons ot poop|o trom around tho wor|d, as wo|| as |nt|uont|a| |nd|v|dua|s and organ|zat|ons, such as
wor|d |oadors, govornmont ott|c|a|s, co|obr|t|os, ath|otos, journa||sts, sports toams, mod|a out|ots and brands. Our usors croato approx|mato|y b00 m||||on 1woots ovory
day.
1w|ttor |s a pub||c, roa|-t|mo p|attorm whoro any usor can croato a 1woot and any usor can to||ow othor usors. Wo do not |mposo rostr|ct|ons on whom a usor
can to||ow, wh|ch groat|y onhancos tho broadth and dopth ot ava||ab|o contont and a||ows usors to d|scovor tho contont thoy caro about most. Add|t|ona||y, usors can bo
to||owod by thousands or m||||ons ot othor usors w|thout roqu|r|ng a roc|proca| ro|at|onsh|p, wh|ch wo rotor to as an asymmotr|c to||ow modo|. 1h|s asymmotr|c to||ow
modo| s|gn|t|cant|y onhancos tho ab|||ty ot our usors to roach a broad aud|onco. 1ho pub||c naturo ot our p|attorm a||ows us and othors to oxtond tho roach ot 1w|ttor
contont boyond our proport|os. Vod|a out|ots d|str|buto 1woots boyond our proport|os to comp|omont tho|r contont by mak|ng |t moro t|mo|y, ro|ovant and
comprohons|vo. 1woots havo appoarod on ovor ono m||||on th|rd-party wobs|tos, and |n tho socond quartor ot 2018 thoro woro approx|mato|y 80 b||||on on||no |mpross|ons
ot 1woots ott ot our proport|os.
1w|ttor prov|dos a compo|||ng and ott|c|ont way tor poop|o to stay |ntormod about tho|r |ntorosts, d|scovor what |s happon|ng |n tho|r wor|d r|ght now and |ntoract
d|roct|y w|th oach othor. Wo onab|o tho t|mo|y croat|on and d|str|but|on ot |doas and |ntormat|on among poop|o and organ|zat|ons at a |oca| and g|oba| sca|o. Our
p|attorm a||ows usors to browso through 1woots qu|ck|y and oxp|oro contont moro doop|y through ||nks, photos, mod|a and othor app||cat|ons that can bo attachod to
oach 1woot. As a rosu|t, whon ovonts happon |n tho wor|d, whothor p|annod, ||ko sport|ng ovonts and to|ov|s|on shows, or unp|annod, ||ko natura| d|sastors and po||t|ca|
rovo|ut|ons, tho d|g|ta| oxpor|onco ot thoso ovonts happons |n roa| t|mo on 1w|ttor. loop|o can commun|cato w|th oach othor dur|ng thoso ovonts as thoy occur, croat|ng
powortu| sharod oxpor|oncos.
Our p|attorm partnors and advort|sors onhanco tho va|uo wo croato tor our usors.




P|otorm Portoors. Ovor s|x m||||on wobs|tos havo |ntogratod w|th 1w|ttor, add|ng va|uo to our usor oxpor|onco by contr|but|ng contont to our p|attorm,
broad|y d|str|but|ng contont trom our p|attorm across tho|r proport|os and us|ng 1w|ttor contont and too|s to onhanco tho|r wobs|tos and app||cat|ons. Vany ot
tho wor|d's most trustod mod|a out|ots, |nc|ud|ng tho 33C, Cll and 1|mos ot lnd|a, rogu|ar|y uso 1w|ttor as a p|attorm tor contont d|str|but|on. ln add|t|on,
ovor

02
1abIo ot Contonta

throo m||||on app||cat|ons havo boon rog|storod by dovo|opors to onab|o thom to |ntograto w|th our p|attorm, and |ovorago 1w|ttor contont to onhanco and
oxtond tho|r app||cat|ons |n now and croat|vo ways.




Aovortlsors. Advort|sors uso our lromotod lroducts, tho major|ty ot wh|ch aro pay-tor-portormanco, to promoto tho|r brands, products and sorv|cos,
amp||ty tho|r v|s|b|||ty and roach, and comp|omont and oxtond tho convorsat|on around tho|r advort|s|ng campa|gns. Wo onab|o our advort|sors to targot an
aud|onco basod on a var|oty ot tactors, |nc|ud|ng a usor's lntorost Graph. 1ho lntorost Graph maps, among othor th|ngs, |ntorosts basod on usors to||owod
and act|ons takon on our p|attorm, such as 1woots croatod and ongagomont w|th 1woots. Wo bo||ovo a usor's lntorost Graph producos a c|oar and roa|-t|mo
s|gna| ot a usor's |ntorosts, groat|y onhanc|ng tho ro|ovanco ot tho ads wo can d|sp|ay tor usors and onhanc|ng our targot|ng capab|||t|os tor advort|sors. Our
lromotod lroducts aro |ncorporatod |nto our p|attorm w|thout d|srupt|ng or dotract|ng trom tho usor oxpor|onco and aro dos|gnod to bo as compo|||ng and
usotu| to our usors as organ|c contont on our p|attorm.
A|though wo do not gonorato rovonuo d|roct|y trom usors or p|attorm partnors, wo bonot|t trom notwork ottocts whoro moro act|v|ty on 1w|ttor rosu|ts |n tho croat|on and
d|str|but|on ot moro contont, wh|ch attracts moro usors, p|attorm partnors and advort|sors, rosu|t|ng |n a v|rtuous cyc|o ot va|uo croat|on.
Vob||o has bocomo tho pr|mary dr|vor ot our bus|noss. Our mob||o products aro cr|t|ca| to tho va|uo wo croato tor our usors, and thoy onab|o our usors to croato,
d|str|buto and d|scovor contont |n tho momont and on-tho-go. 1ho 140 charactor constra|nt ot a 1woot omanatos trom our or|g|ns as an 3V3-basod mossag|ng systom,
and wo |ovorago th|s s|mp||c|ty to dovo|op products that soam|oss|y br|dgo our usor oxpor|onco across a|| dov|cos. ln tho throo months ondod 1uno 80, 2018, 7b% ot our
avorago VAUs accossod 1w|ttor trom a mob||o dov|co and ovor 0b% ot our advort|s|ng rovonuo was gonoratod trom mob||o dov|cos. Wo oxpoct that tho proport|on ot
act|vo usors on, and advort|s|ng rovonuo gonoratod trom, mob||o dov|cos, w||| cont|nuo to grow |n tho noar torm.
Wo havo oxpor|oncod rap|d growth |n our usor baso and rovonuo |n rocont por|ods. ln tho throo months ondod 1uno 80, 2018, our avorago VAUs |ncroasod by
44% to 218.8 m||||on, comparod to tho throo months ondod 1uno 80, 2012. |rom 2011 to 2012, rovonuo |ncroasod by 108% to $810.0 m||||on, not |oss docroasod by
88% to $70.4 m||||on and Adjustod E3l10A |ncroasod by 140% to $21.2 m||||on. |rom tho s|x months ondod 1uno 80, 2012 to tho s|x months ondod 1uno 80, 2018,
rovonuo |ncroasod by 107% to $2b8.0 m||||on, not |oss |ncroasod by 41% to $00.8 m||||on and Adjustod E3l10A |ncroasod by $20.7 m||||on to $21.4 m||||on. |or
|ntormat|on on how wo dot|no and ca|cu|ato tho numbor ot VAUs and tactors that can attoct th|s motr|c, soo tho soct|ons t|t|od lndustry 0ata and Company Votr|cs'
and Vanagomont's 0|scuss|on and Ana|ys|s ot ||nanc|a| Cond|t|on and losu|ts ot Oporat|ons-Koy Votr|cs.' |or |ntormat|on on how wo dot|no and ca|cu|ato Adjustod
E3l10A, and a roconc|||at|on ot not |oss to Adjustod E3l10A, soo tho soct|on t|t|od lrospoctus 3ummary-3ummary Conso||datod ||nanc|a| and Othor 0ata-lon-
GAAl ||nanc|a| Voasuros.'
1ho EvoIution ot Contont Croation, Diatribution and Diacovory
1ho lntornot and d|g|t|zat|on havo a||owod tor v|rtua||y a|| contont to bo mado ava||ab|o on||no, but tho vast array ot contont has mado |t d|tt|cu|t tor poop|o to t|nd
what |s |mportant or ro|ovant to thom. Ovor t|mo, tochno|og|os havo boon dovo|opod to addross th|s cha||ongo:
ob Browsors. ln tho oar|y to m|d-1000s, browsors, |nc|ud|ng lotscapo lav|gator and lntornot Exp|oror, prosontod contont on tho lntornot |n a v|sua||y
appoa||ng mannor and prov|dod a bottor usor |ntortaco to rotr|ovo contont by nav|gat|ng spoc|t|c wobs|tos and trom ono wobs|to to anothor. Ear|y browsors woro pro-
|oadod w|th bookmarks d|roct|ng poop|o to popu|ar wobs|tos, but tho contont oxpor|onco was gonora||y not porsona||zod or ta||orod to a porson's |ntorosts and
|ntormat|on was otton d|tt|cu|t to t|nd un|oss tho porson know what thoy woro |ook|ng tor and whoro to t|nd |t.

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1abIo ot Contonta
ob Porto|s. ln tho m|d to |ato-1000s, Yahoo!, AOl, V3l and othor wob porta|s aggrogatod and catogor|zod popu|ar contont and othor commun|cat|on
toaturos to ho|p poop|o d|scovor ro|ovant |ntormat|on on tho lntornot. 1hoso porta|s, wh||o convon|ont and w|th somo ab|||ty to porsona||zo, ottor accoss to a ||m|tod
amount ot contont.
5oorcb Eogloos. ln tho oar|y-2000s, Goog|o and othor soarch ong|nos roso to prom|nonco by dovo|op|ng now ways to soarch tor |ntormat|on on tho lntornot.
3oarch ong|nos prov|do much groator dopth and broadth ot ro|ovant |ntormat|on than porta|s. A|though soarch ong|nos tocus on do||vor|ng comprohons|vo and ro|ovant
|ntormat|on as d|roctod by a spoc|t|c usor roquost, tho soarch rosu|ts aro otton on|y as good as tho soarch a|gor|thm and tho amount ot contont |n tho soarch |ndox. ln
add|t|on, g|von tho |ag botwoon ||vo ovonts and tho croat|on and |ndox|ng ot d|g|ta| contont, soarch ong|no rosu|ts may |ack roa|-t|mo |ntormat|on. 3ocauso soarch
ong|nos on|y rospond to spoc|t|c usor roquosts, thoy a|so gonora||y do not surtaco contont that a porson has not roquostod, but may t|nd |ntorost|ng.
5oclo| Notworks. ln tho m|d-2000s, soc|a| notworks, such as |acobook, omorgod as a now way to connoct w|th tr|onds and tam||y on||no. 3oc|a| notworks
a||ow poop|o to sharo |ntormat|on w|th tho|r tr|onds and tam||y and d|scovor |ntormat|on basod on tho |ntorosts ot tho|r connoct|ons. A|though soc|a| notworks onab|o tho|r
usors to croato and sharo contont, thoy aro gonora||y c|osod, pr|vato notworks that do not |nc|udo contont trom outs|do tho usor's tr|onds, tam||y and mutua|
connoct|ons. Consoquont|y, wh||o tho contont do||vorod by a soc|a| notwork may bo ro|ovant, tho sourco |s gonora||y ||m|tod to thoso poop|o w|th whom tho usor has a
mutua|, symmotr|c ro|at|onsh|p, and, thorotoro, tho dopth and broadth ot contont ava||ab|o to poop|o |s a|so gonora||y ||m|tod. Add|t|ona||y, bocauso most soc|a| notwork
usors havo tho oxpoctat|on that on|y a ||m|tod port|on ot tho contont thoy croato w||| bo mado ava||ab|o to tho pub||c, most soc|a| notwork contont |s gonora||y on|y
ava||ab|o w|th|n tho part|cu|ar soc|a| notwork on wh|ch |t or|g|natod and |s not broad|y ava||ab|o ott tho|r notworks, such as on othor wobs|tos, app||cat|ons or trad|t|ona|
mod|a out|ots ||ko to|ov|s|on, rad|o and pr|nt.
1wItter ContInues the EvolutIon
1w|ttor cont|nuos tho ovo|ut|on ot contont croat|on, d|str|but|on and d|scovory by comb|n|ng tho to||ow|ng tour o|omonts at sca|o to croato a g|oba| p|attorm tor
pub||c so|t-oxpross|on and convorsat|on |n roa| t|mo. Wo bo||ovo 1w|ttor can bo tho contont croat|on, d|str|but|on and d|scovory p|attorm tor tho lntornot and ovo|v|ng
mob||o ocosystom.



Pob|lc. 1w|ttor |s opon to tho wor|d.
Contont on 1w|ttor |s broad|y accoss|b|o to our usors and unrog|storod v|s|tors. A|| usors can croato 1woots and to||ow othor usors. 3|nco tho vast major|ty ot
usors on 1w|ttor chooso to commun|cato pub||c|y on our p|attorm, usors can to||ow othor usors w|thout roqu|r|ng a roc|proca| ro|at|onsh|p. 1h|s asymmotr|c
to||ow modo| s|gn|t|cant|y |ncroasos tho broadth and dopth ot contont ava||ab|o to usors on our proport|os. ln add|t|on, tho pub||c naturo ot 1w|ttor a||ows
poop|o to bonot|t trom 1w|ttor contont ovon |t thoy aro not 1w|ttor usors or to||ow|ng tho usor that or|g|na||y twootod, as that contont can travo| v|ra||y on and ott
our proport|os to othor wobs|tos and mod|a, such as to|ov|s|on and pr|nt.

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1abIo ot Contonta
|or oxamp|o, dur|ng |urr|cano 3andy |n tho Un|tod 3tatos |n Octobor 2012, 1w|ttor prov|dod a powortu| too| tor cruc|a| omorgoncy rosponso as govornmont
ott|c|a|s, such as 0awn Z|mmor (Qdawnz|mmornj), mayor ot |obokon, low 1orsoy, and V|ko 3|oomborg (QV|ko3|oomborg), mayor ot low York C|ty, ro||ot
organ|zat|ons and tho pub||c usod our p|attorm to |nstant|y broadcast ossont|a| |ntormat|on.





Roo|-7lmo. lows broaks on 1w|ttor.
loa|-t|mo contont a||ows our usors to onhanco oxpor|oncos by d|g|ta||y connoct|ng to a g|oba| convorsat|on as ovonts unto|d, and onab|os our usors to
ongago w|th oach othor d|roct|y and |nstant|y |n tho momont and on-tho-go. 1ho comb|nat|on ot our too|s, tochno|ogy and tormat onab|os our usors to
qu|ck|y croato and d|str|buto contont g|oba||y |n roa| t|mo w|th 140 koystrokos or tho t|ash ot a photo, and tho c||ck ot a button. 1ho oaso w|th wh|ch our
usors can croato contont comb|nod w|th our broad roach rosu|ts |n usors otton roco|v|ng contont tastor than othor torms ot mod|a. Add|t|ona||y, bocauso our
p|attorm a||ows any ot our ovor 21b m||||on VAUs to contr|buto contont, wo havo a vast|y |argor product|on capab|||ty than trad|t|ona| mod|a and nows out|ots.

0b
1abIo ot Contonta
|or oxamp|o, whon U3 A|rways |||ght 1b40 |andod on tho |udson l|vor noar low York C|ty, 1w|ttor usor 1an|s Krms (Qjkrums) was among tho t|rst on tho
scono and twootod h|s account ot tho s|tuat|on tor tho wor|d to soo, a|| |n roa| t|mo.




Coovorsotlooo|. 1w|ttor |s whoro usors como to oxpross thomso|vos and |ntoract w|th tho wor|d.
Our usors can |ntoract on 1w|ttor d|roct|y w|th othor usors, |nc|ud|ng poop|o trom around tho wor|d, as wo|| as |nt|uont|a| |nd|v|dua|s and organ|zat|ons.
lmportant|y, thoso |ntoract|ons can occur |n pub||c v|ow, thoroby croat|ng an opportun|ty tor a|| usors to to||ow and part|c|pato |n convorsat|ons on 1w|ttor.
1hoso pub||c convorsat|ons ottor a comp|omontary commun|cat|on channo| to mod|a compan|os and advort|sors and an opportun|ty tor thom to |ncroaso tho|r
ad ongagomont and roach through 1w|ttor.

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1abIo ot Contonta
|or oxamp|o, whon a 1w|ttor usor sought cook|ng adv|co trom chot Var|o 3ata|| (QVar|obata||), tho usor roco|vod a rosponso trom QVar|obata|| and
mus|c|an Gav|n lossda|o (QGav|nlossda|o) jo|nod tho convorsat|on and prov|dod somo adv|co ot h|s own.



Llstrlbotoo. 1woots go ovorywhoro.
1woots aro d|str|butod not on|y on 1w|ttor, but a|so ott our proport|os by m||||ons ot wobs|tos around tho wor|d. Vod|a out|ots d|str|buto 1woots boyond our
proport|os to comp|omont tho|r contont by mak|ng |t moro t|mo|y, ro|ovant and comprohons|vo. 1ho s|mp|o tormat ot a 1woot, tho pub||c naturo ot contont on
1w|ttor and tho oaso ot d|str|but|on ott our proport|os a||ow mod|a out|ots to d|sp|ay 1woots on tho|r on||no and ott||no proport|os, thoroby oxtond|ng tho roach
ot 1woots boyond our proport|os. A 2018 study conductod by Arb|tron lnc. and Ed|son losoarch tound that 44% ot Amor|cans hoar about 1woots through
mod|a channo|s othor than 1w|ttor a|most ovory day.

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1abIo ot Contonta
|or oxamp|o, whon lros|dont 3arack Obama (Qbarackobama) won tho 2012 U.3. pros|dont|a| o|oct|on, ho t|rst doc|arod v|ctory pub||c|y not on to|ov|s|on or
othor pub||c mod|a, but on 1w|ttor. 1ho lros|dont's 1woot was v|owod approx|mato|y 2b m||||on t|mos on our p|attorm and w|do|y d|str|butod ott||no |n pr|nt and
broadcast mod|a.

1ho comb|nat|on ot bo|ng pub||c, roa|-t|mo, convorsat|ona| and d|str|butod torms tho toundat|on ot our ab|||ty to prov|do va|uo to our usors, p|attorm partnors and
advort|sors.
Our VaIuo Prooaition to uaora
loop|o aro at tho hoart ot 1w|ttor. Wo havo moro than 21b m||||on VAUs trom around tho wor|d. loop|o como to 1w|ttor tor many roasons, and wo bo||ovo that
two ot tho most s|gn|t|cant aro tho broadth ot 1w|ttor contont and our broad roach. Our usors consumo contont and ongago |n convorsat|ons that |ntorost thom by
d|scovor|ng and to||ow|ng tho poop|o and organ|zat|ons thoy t|nd most compo|||ng. Our broad roach a||ows our usors to oxpross thomso|vos pub||c|y to a |argo g|oba|
aud|onco, and part|c|pato |n g|oba| convorsat|ons.
Our p|attorm has boon usod tor char|tab|o campa|gns, d|sastor ro||ot ottorts, boar|ng w|tnoss to h|story, commun|cat|ng w|th o|octod ott|c|a|s, po||t|ca|
movomonts, rospond|ng to tans, ompath|z|ng w|th ono anothor, parody as soc|a| commontary, product announcomonts and ||vo p|ay-by-p|ay ot sport|ng ovonts.
Our usors contr|buto to tho v|brancy ot our p|attorm by croat|ng un|quo contont and by tavor|t|ng, mont|on|ng and rotwoot|ng contont thoy d|scovor. 1ho
|ntoract|on among our usors, |nc|ud|ng somo ot tho wor|d's most |nt|uont|a| |nd|v|dua|s and organ|zat|ons, comb|nod w|th tho pub||c, roa|-t|mo, convorsat|ona| and w|do|y
d|str|butod naturo ot our p|attorm croatos a un|quo va|uo propos|t|on tor our usors, whothor thoy aro contr|but|ng contont or d|scovor|ng and consum|ng |t.
3poc|t|ca||y, our p|attorm prov|dos our usors w|th tho to||ow|ng bonot|ts:




5borlog Cootoot wltb tbo or|o. Usors |ovorago our p|attorm to oxpross thomso|vos pub||c|y to tho wor|d, sharo w|th tho|r tr|onds and tam||y and part|c|pato
|n convorsat|ons by twoot|ng mossagos, photos and v|doos to tho|r to||owors |n roa| t|mo. 1ho pub||c, roa|-t|mo naturo and

08
1abIo ot Contonta

tromondous g|oba| roach ot our p|attorm mako |t tho contont d|str|but|on p|attorm ot cho|co tor many ot tho wor|d's most |nt|uont|a| |nd|v|dua|s and
organ|zat|ons, as wo|| as m||||ons ot poop|o and sma|| bus|nossos. Vus|c|ans twoot to |aunch a|bums, b|oggors and journa||sts twoot to promoto tho|r |atost
posts or stor|os, protoss|ona| ath|otos twoot to announco trados trom ono toam to anothor, astronauts twoot photos trom spaco and CEOs twoot corporato
nows.
|or oxamp|o, lA3A twootod tho d|scovory ot |co on Vars by tho Vars lhoon|x lovor (QVarslhoon|x).

lobukazu Kur|k| (Qkur|k|yama_El) twootod h|s journoy up Vount Evorost.





Llscovorlog Uolqoo ooo Ro|ovoot Cootoot. 1w|ttor's ovor 21b m||||on VAUs, spann|ng noar|y ovory country, prov|do groat broadth and dopth ot contont
across a broad rango ot top|cs, |nc|ud|ng ||toraturo, po||t|cs, t|nanco, mus|c, mov|os, comody, sports and nows. 1w|ttor un|quo|y a||ows a usor to t||tor tho vast
amount ot contont by choos|ng othor usors that thoy want to to||ow, thoroby croat|ng a h|gh|y ro|ovant t|mo||no ot |ntormat|on that |s porsona||zod to tho|r
|ntorosts. Wo prov|do soarch and othor d|scovory toaturos, |nc|ud|ng tronds, hashtags and #0|scovor, that ho|p usors t|nd contont rang|ng trom wo||-known to
obscuro sourcos to to||ow ovonts or top|cs that aro most |ntorost|ng to thom. Wo turthor |mprovo tho ro|ovancy ot contont our usors roco|vo by mak|ng
rocommondat|ons tor add|t|ona| contont basod on tho|r lntorost Graph.




Brooklog Nows ooo Eogoglog lo Llvo Evoots. Usors como to 1w|ttor to d|scovor what |s happon|ng |n tho wor|d r|ght now d|roct|y trom othor 1w|ttor usors.
On 1w|ttor, usors twoot about ||vo ovonts |nstant|y, whothor |t |s co|obr|t|os twoot|ng to tho|r tans, journa||sts broak|ng nows or poop|o prov|d|ng oyow|tnoss
accounts ot ovonts as thoy unto|d. Vany |nd|v|dua|s and organ|zat|ons chooso to broak nows t|rst on 1w|ttor bocauso ot tho un|quo roach and spood ot
d|str|but|on on our p|attorm. 1hoso ovonts may bo p|annod, ||ko sport|ng ovonts and to|ov|s|on shows, or unp|annod, ||ko natura| d|sastors and po||t|ca|
rovo|ut|ons. Usors twoot about thoso ovonts to ontorta|n, od|tor|a||zo, or comm|sorato and, |n somo casos, as a pub||c sorv|co. Wo bo||ovo that no othor
p|attorm comp|omonts ||vo oxpor|oncos as wo|| as 1w|ttor. As a rosu|t, 1w|ttor |s a pr|mary sourco ot |ntormat|on tor our usors. ln add|t|on, 1w|ttor sorvos as a
socond scroon to trad|t|ona| mod|a, onhanc|ng tho ovora|| oxpor|onco ot an ovont by a||ow|ng usors to sharo tho oxpor|onco w|th othor usors |n roa| t|mo. Wo
bo||ovo th|s makos 1w|ttor tho soc|a| soundtrack to ||to |n tho momont.

00
1abIo ot Contonta
|or oxamp|o, whon tho powor at tho Vorcodos-3onz 3upordomo |n low Or|oans wont out dur|ng tho 2018 3upor 3ow|, tho croat|vo toam at Oroo (QOroo)
was qu|ck to twoot about tho s|tuat|on to ongago usors dur|ng tho ||vo ovont.

1ho 3r|t|sh Vonarchy (QC|aronco|ouso) announcod tho b|rth ot lr|nco Goorgo ot Cambr|dgo on 1w|ttor.





Portlclpotlog lo Coovorsotloos. Wo bo||ovo 1w|ttor |s tho |argost sourco ot pub||c convorsat|on |n tho wor|d. 1hrough 1w|ttor, usors not on|y commun|cato
w|th tr|onds and tam||y, but thoy a|so part|c|pato |n convorsat|ons w|th othor poop|o trom around tho wor|d, |n ways that wou|d not othorw|so bo poss|b|o.

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1abIo ot Contonta
|or oxamp|o, dur|ng tho l3A |ockout, Ok|ahoma C|ty 1hundor p|ayor Kov|n 0urant (QK01royb) was |ook|ng to got somo oxorc|so and ho turnod to 1w|ttor.
QK01royb twootod and as a rosu|t connoctod w|th co||ogo studont Goorgo Ovorboy (Qgrovorboy) and jo|nod a t|ag tootba|| gamo at Ok|ahoma 3tato
Un|vors|ty that n|ght.

ln add|t|on to part|c|pat|ng |n convorsat|ons, usors can s|mp|y to||ow convorsat|ons on 1w|ttor or oxpross |ntorost |n tho convorsat|on by rotwoot|ng or
tavor|t|ng.
Our VaIuo Prooaition to PIattorm Partnora
1ho va|uo wo croato tor our usors |s onhancod by our p|attorm partnors, wh|ch |nc|udo pub||shors, mod|a out|ots and dovo|opors. 1hoso p|attorm partnors havo
|ntogratod w|th 1w|ttor through an All that wo prov|do wh|ch a||ows thom to contr|buto tho|r contont to our p|attorm, d|str|buto 1w|ttor contont across tho|r proport|os and
uso 1w|ttor contont and too|s to onhanco tho|r wobs|tos and app||cat|ons.
Wo prov|do a sot ot dovo|opmont too|s, Alls and omboddab|o w|dgots that a||ow our partnors to soam|oss|y |ntograto w|th our p|attorm. Voro than throo m||||on
app||cat|ons havo boon rog|storod by dovo|opors to onab|o thom to |ntograto w|th our p|attorm and |ovorago 1w|ttor contont to onhanco and oxtond tho|r app||cat|ons |n
now and croat|vo ways.
3poc|t|ca||y, wo prov|do our p|attorm partnors w|th tho to||ow|ng bonot|ts:




Llstrlbotloo Cboooo|. l|attorm partnors uso 1w|ttor as a comp|omontary d|str|but|on channo| to oxpand tho|r roach and ongago w|th tho|r aud|oncos.
lub||shors and mod|a out|ots contr|buto contont croatod tor othor mod|a channo|s to 1w|ttor and twoot contont spoc|t|ca||y croatod tor 1w|ttor. Wo prov|do
p|attorm partnors w|th a sot ot w|dgots that thoy can ombod on tho|r wobs|tos and an All tor tho|r mob||o app||cat|ons to onab|o 1w|ttor usors to twoot
contont d|roct|y trom

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1abIo ot Contonta

thoso proport|os. As our usors ongago w|th th|s contont on 1w|ttor, thoy can bo d|roctod back to our partnors' wobs|tos and app||cat|ons. Wo a|so prov|do our
p|attorm partnors w|th a sot ot ana|yt|cs too|s to moasuro tho usor ongagomont and tratt|c gonoratod by 1w|ttor usors.




Comp|omootory Roo|-7lmo ooo Ro|ovoot Cootoot. 1w|ttor onab|os p|attorm partnors to ombod or d|sp|ay ro|ovant 1woots on tho|r on||no and ott||no
proport|os to onhanco tho oxpor|onco tor tho|r usors. Add|t|ona||y, by onhanc|ng tho act|v|ty ro|atod to tho|r programm|ng or ovont on 1w|ttor, mod|a out|ots
can dr|vo tuno-|n and awaronoss ot tho|r or|g|na| contont, |ovorag|ng 1w|ttor's strongth as a socond scroon tor to|ov|s|on programm|ng. |or oxamp|o, dur|ng
3upor 3ow| Xlvll, ovor 24 m||||on 1woots rogard|ng tho 3upor 3ow| woro sont dur|ng tho gamo a|ono and 4b% ot to|ov|s|on ads shown dur|ng tho 3upor 3ow|
usod a hashtag to |nv|to v|owors to ongago |n convorsat|on about thoso to|ov|s|on ads on 1w|ttor. ln add|t|on, |n August 2018, l|o|son ro|oasod tho t|nd|ngs ot
a study wh|ch domonstratod that tho vo|umo ot 1woots about a to|ov|s|on program causod an |ncroaso |n ||vo to|ov|s|on rat|ngs |n 20% ot samp|od to|ov|s|on
programs. l|o|son has a|so |aunchod a moasuromont product basod oxc|us|vo|y on 1w|ttor data. 1h|s motr|c w||| moasuro tho roach ot tho to|ov|s|on
convorsat|on on 1w|ttor and w||| sorvo to comp|omont l|o|son's ox|st|ng to|ov|s|on rat|ngs, g|v|ng to|ov|s|on notworks and advort|sors roa|-t|mo motr|cs to
bottor undorstand to|ov|s|on aud|onco soc|a| act|v|ty.




Coovos or Eoboocoo Cootoot wltb 7wlttor Coros. l|attorm partnors uso 1w|ttor Cards to ombod |magos, v|doo and |ntoract|vo contont d|roct|y |nto a 1woot.
1w|ttor Cards a||ow p|attorm partnors to croato r|chor contont that a|| usors can |ntoract w|th and d|str|buto. ln add|t|on, by |ntograt|ng 1w|ttor Cards
tunct|ona||ty |nto tho|r wobs|tos, p|attorm partnors can onsuro that whonovor thoy or any usor twoots trom tho|r wobs|tos or app||cat|ons, tho 1woot w|||
automat|ca||y |nc|udo r|ch contont ||ko a photo, a v|doo, a sound c||p, an art|c|o summary or |ntormat|on about a product, and mako |t |nstant|y accoss|b|o to
any othor usor on 1w|ttor.




Bol|olog wltb 7wlttor Cootoot. l|attorm partnors |ovorago 1woots to onhanco tho oxpor|onco tor tho|r usors. 0ovo|opors |ncorporato 1w|ttor contont and uso
1w|ttor too|s to bu||d a broad rango ot app||cat|ons. Vod|a partnors |ncorporato 1w|ttor contont to onr|ch tho|r programm|ng and |ncroaso v|owor ongagomont
by prov|d|ng roa|-t|mo 1woots that oxpross pub||c op|n|on and |ncorporato rosu|ts trom v|owor po||s on 1w|ttor. |or oxamp|o, ono dovo|opor usos accoss to
1w|ttor contont to prov|do a|orts tor |ts c||onts about a var|oty ot top|cs and |ndustr|os |n advanco ot ma|nstroam nows. 1ho dovo|opor's app||cat|on scans
through a|| 1woots gonoratod on our p|attorm and |dont|t|os 1woots that appoar to bo crod|b|o and nowsworthy basod on corta|n aspocts ot a 1woot, such as
tho |nt|uonco ot tho usor who twootod |t, tho usor's goograph|c |ocat|on and pattorns ot tho usor's 1woots. Anothor dovo|opor usos |ts a|gor|thms and accoss
to contont on our p|attorm to gonorato roports tor brands, mod|a compan|os and po||t|ca| campa|gns that |ot tho dovo|opor's c||onts know what poop|o aro
say|ng about thom on 1w|ttor and why.
Our VaIuo Prooaition to Advortiaora
Wo prov|do compo|||ng va|uo to our advort|sors by do||vor|ng tho ab|||ty to roach a |argo g|oba| aud|onco through our un|quo sot ot advort|s|ng sorv|cos, tho ab|||ty
to targot ads basod on our doop undorstand|ng ot our usors and tho opportun|ty to gonorato s|gn|t|cant oarnod mod|a. Advort|sors can uso 1w|ttor to commun|cato
d|roct|y w|th tho|r to||owors tor troo, but many chooso to purchaso our advort|s|ng sorv|cos to roach a broador aud|onco and turthor promoto tho|r brands, products and
sorv|cos.
Advort|sors can markot on our p|attorm |n a var|oty ot ways, trom broad g|oba| campa|gns to h|gh|y-targotod |oca| ads. Our lromotod lroducts onab|o our
advort|sors to promoto tho|r brands, products and sorv|cos, amp||ty tho|r v|s|b|||ty and roach, and comp|omont and oxtond tho convorsat|on around tho|r advort|s|ng
campa|gns. 3y |ovorag|ng our targot|ng capab|||t|os, advort|sors can roach usors that aro moro ||ko|y to ongago w|th tho|r ads and |mprovo tho roturn on tho|r spond|ng
on advort|s|ng.

102
1abIo ot Contonta
Wo uso an auct|on tor our pay-tor-portormanco lromotod lroducts. 1ho a|gor|thms undor|y|ng tho auct|on tako |nto account tho prod|ctod ad ongagomont rato
ot an advort|sor's campa|gn. As such, advort|sors w|th h|ghor qua||ty and moro ro|ovant ads gonora||y havo a h|ghor probab|||ty ot bo|ng succosstu| |n tho auct|on and can
w|n tho auct|on w|th |owor b|ds.
3poc|t|ca||y, our p|attorm prov|dos our advort|sors w|th tho to||ow|ng bonot|ts:




Uolqoo Ao lormots Notlvo to tbo Usor Exporlooco. Our lromotod lroducts prov|do advort|sors w|th an opportun|ty to roach our usors w|thout d|srupt|ng or
dotract|ng trom tho usor oxpor|onco on our p|attorm. |or oxamp|o, lromotod 1woots appoar w|th|n a usor's t|mo||no just ||ko an organ|c 1woot, rogard|oss ot
dov|co, whothor |t bo dosktop or mob||o. Advort|sors can |ncorporato 1w|ttor Cards |nto lromotod 1woots tor many purposos, |nc|ud|ng to dr|vo product
wobpago v|s|ts or app||cat|on |nsta||s. 3|m||ar|y, lromotod Accounts and lromotod 1ronds a|so appoar |n tho samo tormat and p|aco as organ|c account
rocommondat|ons and tronds, rospoct|vo|y. A|| ot our lromotod lroducts aro |abo|od as promotod.'




7orgotlog. Our pay-tor-portormanco lromotod lroducts onab|o advort|sors to roach usors basod on many tactors. lmportant|y, bocauso our asymmotr|c
to||ow modo| doos not roqu|ro mutua| to||owor ro|at|onsh|ps, poop|o can to||ow tho usors that thoy t|nd most |ntorost|ng. 1hoso to||ow ro|at|onsh|ps aro thon
comb|nod w|th |ntormat|on rogard|ng a usor's act|v|ty on our p|attorm, |nc|ud|ng who tho usor rop||os to, what 1woots tho usor tavor|tos or rotwoots, ||nks tho
usor c||cks, tho |ocat|on ot tho usor and what tho usor twoots about, to torm a usor's lntorost Graph. 1w|ttor's asymmotr|c to||ow modo| makos |t oasy tor
usors to to||ow and unto||ow othor usors. As a rosu|t, our usors rogu|ar|y add and romovo accounts trom tho|r to||ow ||st, |mprov|ng and updat|ng tho|r lntorost
Graphs. Wo bo||ovo a usor's lntorost Graph producos a c|oar and roa|-t|mo s|gna| ot a usor's |ntorosts, groat|y onhanc|ng our targot|ng capab|||ty.


|or oxamp|o, low lo||c (Qnowro||c) usos 1w|ttor to targot |ts bus|noss-to-bus|noss aud|onco ot dovo|opors and l1 doc|s|on makors us|ng a comb|nat|on ot
|ntorost and koyword targot|ng. lts goa| on 1w|ttor |s to dr|vo purchasos and |nsta||s ot |ts app||cat|on portormanco managomont sorv|cos. Qnowro||c has
usod 1w|ttor to dr|vo tratt|c to b|og posts, sharo |ntograph|cs and ottor d|scounts. ln 1u|y 2018, Qnowro||c ottorod a troo tr|a| ot Codo 3choo|, an on||no
|oarn|ng p|attorm, tor dop|oy|ng |ts sorv|co. 1h|s promot|on noar|y doub|od tho numbor ot 1w|ttor-dr|von dop|oymonts comparod to tho month botoro.






Eorooo Voolo ooo Vlro| O|obo| Roocb. 1ho pub||c and w|do|y d|str|butod naturo ot our p|attorm onab|os 1woots to sproad v|ra||y, potont|a||y roach|ng a|| ot
our usors and poop|o around tho wor|d. Our usors rotwoot, rop|y to or start convorsat|ons about |ntorost|ng 1woots, whothor thoso 1woots aro lromotod
1woots or organ|c 1woots by advort|sors. An advort|sor on|y gots chargod whon a usor ongagos w|th a lromotod 1woot that was p|acod |n a usor's t|mo||no
bocauso ot |ts promot|on. 3y croat|ng h|gh|y compo|||ng and ongag|ng ads, our advort|sors can bonot|t trom usors rotwoot|ng tho|r contont across our
p|attorm at no |ncromonta| cost.

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1abIo ot Contonta
|or oxamp|o, Vondo|z lntornat|ona| has promotod Whoat 1h|ns (QWhoat1h|ns) w|th a Vust. |avo. Whoat. 1h|ns.' s|ogan that appoars on |ts advort|s|ng
campa|gns on 1v and 1w|ttor. 0ur|ng tho campa|gn, QWhoat1h|ns askod |ts customors to sond 1woots and v|nos about hav|ng tho|r Whoat 1h|ns oaton or
sto|on by othor tans ot tho product. Customors cou|d w|n boxos ot Whoat 1h|ns by twoot|ng #Vust|avoWhoat1h|ns. 1ho |ntograt|on across scroons and
promot|on on 1w|ttor drovo ovor 242,000 1woots mont|on|ng tho Whoat 1h|ns brand dur|ng tho advort|s|ng campa|gn and rosu|tod |n a s|gn|t|cant |ncroaso |n
to||owors on 1w|ttor.





Aovortlslog lo tbo Vomoot. 1w|ttor's roa|-t|mo naturo a||ows our advort|sors to cap|ta||zo on ||vo ovonts, ox|st|ng convorsat|ons and trond|ng top|cs. 3y
us|ng our lromotod lroducts, advort|sors can croato a ro|ovant ad |n roa| t|mo that |s shapod by thoso ovonts, convorsat|ons and top|cs.




Poy-or-Porormooco ooo Attroctlvo Rotoro oo lovostmoot. Our advort|sors pay tor lromotod 1woots and lromotod Accounts on a pay-tor-portormanco
bas|s. Our advort|sors on|y pay us whon a usor ongagos w|th tho|r ad, such as whon a usor c||cks on a ||nk |n a lromotod 1woot, oxpands a lromotod
1woot, rop||os to or tavor|tos a lromotod 1woot, rotwoots a lromotod 1woot tor tho t|rst t|mo, to||ows a lromotod Account or to||ows tho account that twoots
a lromotod 1woot. 1ho pay-tor-portormanco structuro a||gns our |ntorosts |n do||vor|ng ro|ovant and ongag|ng ads to our usors w|th thoso ot our advort|sors.


ln 2012, wo comm|ss|onod a survoy w|th l|o|son to moasuro tho |mpact ot our advort|s|ng sorv|cos on brand awaronoss and purchaso |ntont. l|o|son's study
tound that usors who

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1abIo ot Contonta

ongagod w|th a brand's lromotod 1woot roportod on avorago 80% h|ghor brand tavorab|||ty and b8% h|ghor purchaso |ntont than usors who d|d not ongago.
1hoso rosu|ts h|gh||ght tho va|uo ot an ad ongagomont on 1w|ttor and tho |mportanco ot roach|ng a ro|ovant aud|onco w|th compo|||ng contont to turthor dr|vo
ad ongagomont.


|or oxamp|o, 3onobos (Q3onobos), an on||no mon's apparo| rota||or, wantod to mako room tor |ts ta|| soason ||no and rocru|t now customors. Q3onobos
ho|d a 1w|xc|us|vo,' a 24-hour sa|o oxc|us|vo|y on 1w|ttor. 1ho company |ncroasod ant|c|pat|on ot tho sa|o w|th 1woots sovora| days |n advanco. On tho day
ot tho sa|o, Q3onobos usod lromotod 1woots |n t|mo||nos to announco an oxc|us|vo 1w|ttor doa| tor $40 ch|nos. 1ho doa| was on|y ava||ab|o through 1w|ttor
and not advort|sod anywhoro o|so. Q3onobos oncouragod usors to sproad tho word to un|ock tho doa|, wh|ch was dono a|most |mmod|ato|y. 1ho advort|s|ng
campa|gn nottod a numbor ot t|rst-t|mo purchasors.





Extoosloo o O|loo Aovortlslog Compolgos. 1w|ttor advort|s|ng comp|omonts ott||no advort|s|ng campa|gns, such as to|ov|s|on ads. lntograt|ng hashtags
a||ows advort|sors to oxtond tho roach ot an ott||no ad by dr|v|ng s|gn|t|cant oarnod mod|a and cont|nuod convorsat|on on 1w|ttor. Add|t|ona||y, wo onab|o
advort|sors to ongago d|roct|y on 1w|ttor w|th usors who havo boon oxposod to tho|r ads on to|ov|s|on. Wo bo||ovo that synchron|z|ng 1w|ttor and to|ov|s|on
advort|s|ng campa|gns makos brand mossagos moro ongag|ng and |ntoract|vo.




Cooooct lo Cootoxt. 3ocauso tho vast major|ty ot 1woots aro pub||c, advort|sors can ga|n moan|ngtu| |ns|ghts and markot |nto|||gonco trom, and rospond
d|roct|y to, tho toodback |n customors' and othors' 1woots. Our usors d|scuss what thoy caro about and what |s happon|ng around thom r|ght now. Our
advort|sors havo powortu| contoxt to connoct tho|r mossagos to what |s most moan|ngtu| to usors |n roa| t|mo, and can ongago w|th tho|r customors |n a way
that |s un|quo to 1w|ttor.




7wlttor Amp|ly. Advort|sors and mod|a out|ots can uso 1w|ttor Amp||ty to dr|vo ad ongagomont and convorsat|on on our p|attorm dur|ng ||vo programs. W|th
1w|ttor Amp||ty, mod|a out|ots can attach roa|-t|mo v|doo c||ps about ||vo ovonts to lromotod 1woots, |nc|ud|ng |nstant rop|ays ot sports h|gh||ghts and boh|nd-
tho-sconos contont, prov|d|ng usors w|th t|mo|y contont that comp|omonts tho|r to|ov|s|on oxpor|onco or rom|nds usors to tuno |n to what thoy may bo
m|ss|ng. |or oxamp|o, dur|ng tho lCAA co||ogo baskotba|| tournamont, wh|ch bogan |n Varch 2018, somo ot our usors roco|vod lromotod 1woots
conta|n|ng v|doo h|gh||ghts ot p|ays trom tournamont gamos |n roa| t|mo, a||ow|ng thom to v|ow thoso h|gh||ghts w|th|n tho lromotod 1woot d|roct|y |n tho|r
t|mo||nos. 1w|ttor Amp||ty prov|dos advort|sors w|th tho opportun|ty to ombod short v|doo ads botoro and attor tho roa|-t|mo v|doo c||p |n a lromotod 1woot,
comp|omont|ng tho convorsat|on that |s happon|ng about thoso ||vo ovonts on our p|attorm and |n tho wor|d. 1w|ttor Amp||ty partnors |nc|udo |argo advort|sors
and prom|nont mod|a partnors.

10b
1abIo ot Contonta
Our VaIuo Prooaition to Data Partnora
Wo ottor data ||consos that a||ow our data partnors to accoss, soarch and ana|yzo h|stor|ca| and roa|-t|mo data on our p|attorm. 3|nco tho t|rst 1woot, our usors
havo croatod ovor 800 b||||on 1woots spann|ng noar|y ovory country. Our data partnors uso th|s data to gonorato and monot|zo data ana|yt|cs, trom wh|ch data partnors
can |dont|ty usor sont|mont, |nt|uonco and othor tronds.
3poc|t|ca||y, our p|attorm prov|dos our data partnors w|th tho to||ow|ng bonot|ts:




Accoss to Actlooob|o Loto. Our p|attorm onab|os data partnors to ana|yzo and act upon data that |s curront, unt||torod and pub||c. Our data |s tho
toundat|on tor app||cat|ons and too|s that can draw ro|at|onsh|ps botwoon soc|a| |ntoract|ons and bus|noss rosu|ts, and ovon dor|vo s|gna|s that |nt|uonco
oconom|c, po||t|ca| and pub||c hoa|th and satoty doc|s|ons. |or oxamp|o, ono ot our data partnors app||os |ts a|gor|thms to 1w|ttor data to croato and so||
products to |ts customors that |dont|ty act|v|ty tronds across 1w|ttor wh|ch may bo ro|ovant to |ts customors' |nvostmont portto||os.




Abl|lty to Crooto Voosoromoot 5tooooros. Wo prov|do our data partnors w|th tho too|s and data to t|nd tho r|ght s|gna| tor tho r|ght aud|onco. Our usors
twoot to oxpross tho|r thoughts and op|n|ons about what |s happon|ng around thom, croat|ng data that can bo ana|yzod to |dont|ty tronds and othor va|uab|o
|ns|ghts.
Our Narkot Oortunity
Wo ottor advort|s|ng sorv|cos to ho|p advort|sors bottor ach|ovo tho|r goa|s, part|cu|ar|y as poop|o wor|dw|do spond moro t|mo ongag|ng w|th mob||o contont. Wo
prov|do advort|sors w|th a p|attorm to tako on a human vo|co and roach a broad sot ot usors and tho too|s to targot usors and gonorato |ntorost. Wo dos|gn our
advort|s|ng sorv|cos to bo ongag|ng tor usors and porsona||zod to tho|r |ntorosts. 1w|ttor's pub||c, roa|-t|mo, convorsat|ona| and w|do|y d|str|butod contont and our
d|ttoront|atod ab|||ty to targot usors through tho|r lntorost Graphs onab|o advort|sors to promoto tho|r brands, products and sorv|cos, amp||ty tho|r v|s|b|||ty and roach, and
comp|omont and oxtond tho convorsat|on around tho|r advort|s|ng campa|gns.
Wo bo||ovo our advort|s|ng sorv|cos addross tho |argo on||no and mob||o advort|s|ng markots:




Oo|loo Aovortlslog. |rom 2012 to 2017, tho wor|dw|do on||no advort|s|ng markot, oxc|ud|ng mob||o advort|s|ng, |s projoctod to |ncroaso trom $01.1 b||||on to
$124.7 b||||on, roprosont|ng a 0.b% compoundod annua| growth rato, accord|ng to |ndustry sourcos.




Vobl|o Aovortlslog. |rom 2012 to 2017, tho wor|dw|do mob||o advort|s|ng markot |s projoctod to |ncroaso trom $10.0 b||||on to $b2.2 b||||on, roprosont|ng a
80.2% compoundod annua| growth rato, accord|ng to |ndustry sourcos.
Crowth 5tratogy
Wo bo||ovo that tho growth ot our bus|noss |s dr|von by a v|rtuous cyc|o that starts w|th what |s bost tor our usors. Growth |n our usor baso dr|vos moro un|quo
contont, wh|ch |n turn dr|vos tho v|ra|, organ|c promot|on ot contont on and ott our proport|os, thoroby attract|ng moro p|attorm partnors and advort|sors. As wo attract
moro usors, tho va|uo propos|t|on tor advort|sors |ncroasos, thoroby |ncont|v|z|ng advort|sors to dovo|op un|quo and compo|||ng contont tor our p|attorm. Wo havo a||gnod
our growth stratogy around thoso throo pr|mary const|tuonts.




Usors. Growth |n our usor baso and usor ongagomont |s a tundamonta| dr|vor to tho growth ot our bus|noss, and wo bo||ovo that thoro |s a s|gn|t|cant
opportun|ty to oxpand our usor baso. 3|nco our |ncopt|on, our usor baso has pr|mar||y grown organ|ca||y and v|ra||y. lndustry sourcos

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ost|mato that as ot 2012 thoro woro 2.4 b||||on lntornot usors and 1.2 b||||on smartphono usors, ot wh|ch on|y 21b m||||on aro VAUs ot 1w|ttor.




Ooogropblc Expoosloo. Wo cont|nuo to tocus on grow|ng our usor baso across a|| goograph|os. Wo p|an to dovo|op a broad sot ot partnorsh|ps
g|oba||y to |ncroaso ro|ovant |oca| contont on our p|attorm and mako 1w|ttor moro accoss|b|o |n now and omorg|ng markots.




Vobl|o App|lcotloos. ln tho throo months ondod 1uno 80, 2018, 7b% ot our avorago VAUs accossod 1w|ttor trom a mob||o dov|co. Our most
ongagod usors aro thoso who accoss 1w|ttor v|a our mob||o app||cat|ons. Wo p|an to cont|nuo to dovo|op and |mprovo our mob||o app||cat|ons to dr|vo
usor adopt|on ot thoso app||cat|ons.




Proooct Lovo|opmoot. Wo p|an to cont|nuo to bu||d and acqu|ro now tochno|og|os to dovo|op and |mprovo our products and sorv|cos and mako our
p|attorm moro va|uab|o and accoss|b|o to poop|o around tho wor|d. Wo a|so p|an to cont|nuo to tocus on mak|ng 1w|ttor s|mp|o and oasy to uso,
part|cu|ar|y tor now usors.



P|otorm Portoors. Wo bo||ovo growth |n our p|attorm partnors |s comp|omontary to our usor growth stratogy and tho ovora|| oxpans|on ot our p|attorm.




Expooo tbo 7wlttor P|otorm to lotogroto Voro Cootoot. Wo p|an to cont|nuo to bu||d and acqu|ro now tochno|og|os to onab|o our p|attorm partnors
to d|str|buto contont ot a|| torms.




Portoor wltb 7rooltlooo| Voolo. 1w|ttor has a comp|omontary ro|at|onsh|p w|th othor mod|a, |nc|ud|ng mus|c sorv|cos, nows out|ots and to|ov|s|on
notworks. Wo p|an to cont|nuo to |ovorago our mod|a ro|at|onsh|ps to dr|vo moro contont d|str|but|on on our p|attorm and croato moro va|uo tor our
usors and advort|sors.




Aovortlsors. Wo bo||ovo wo can |ncroaso tho va|uo ot our p|attorm tor our advort|sors by onhanc|ng our advort|s|ng sorv|cos and mak|ng our p|attorm moro
accoss|b|o.




7orgotlog. Wo p|an to cont|nuo to |mprovo tho targot|ng capab|||t|os ot our advort|s|ng sorv|cos. Wo rocont|y |ntroducod koyword targot|ng, wh|ch
a||ows advort|sors to roach usors basod on words, |nc|ud|ng words markod w|th a hashtag, |n tho|r rocont 1woots and tho 1woots w|th wh|ch usors
rocont|y ongagod and to|ov|s|on targot|ng, wh|ch onab|os advort|sors to ongago d|roct|y w|th poop|o on 1w|ttor who havo boon oxposod to tho|r ads
on to|ov|s|on.




Opoolog Oor P|otorm to Aooltlooo| Aovortlsors. Wo bo||ovo that advort|sors outs|do ot tho Un|tod 3tatos roprosont a substant|a| opportun|ty and
wo p|an to |nvost to |ncroaso our advort|s|ng rovonuo trom |ntornat|ona| advort|sors. Approx|mato|y 2b% ot our tota| rovonuo |n tho throo months
ondod 1uno 80, 2018, camo trom advort|sors w|th b||||ng |ocat|ons outs|do ot tho Un|tod 3tatos, but approx|mato|y 77% ot our avorago VAUs |n tho
throo months ondod 1uno 80, 2018 woro trom outs|do ot tho Un|tod 3tatos. Wo rocont|y |aunchod our so|t-sorvo advort|s|ng p|attorm |n tho Un|tod
3tatos and wo |ntond to |aunch our so|t-sorvo advort|s|ng p|attorm |n so|octod |ntornat|ona| markots. Our so|t-sorvo advort|s|ng p|attorm a||ows
advort|sors to purchaso advort|s|ng on 1w|ttor through an automatod on||no p|attorm rathor than through our d|roct sa|os torco or our roso||ors. ln
|ntornat|ona| markots, our lromotod lroducts aro curront|y on|y ava||ab|o tor sa|o through our d|roct sa|os torco or our roso||ors. As such, tho
numbor ot advort|sors on our p|attorm |n |ntornat|ona| markots |s curront|y ||m|tod to thoso part|os that our d|roct sa|os torco or roso||ors contact and
on||st as advort|sors. 3|nco our so|t-sorvo advort|s|ng p|attorm opons our advort|s|ng p|attorm to a|| advort|sors, opon|ng our so|t-sorvo advort|s|ng
p|attorm |n |ntornat|ona| markots w||| a||ow us to roach many moro potont|a| advort|sors than |s curront|y poss|b|o.

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NowAovortlslog lormots. Wo |ntond to dovo|op now and un|quo ad tormats tor our advort|sors. |or oxamp|o, wo rocont|y |ntroducod our |oad
gonorat|on and app||cat|on down|oad 1w|ttor Cards, and 1w|ttor Amp||ty, wh|ch a||ows advort|sors to ombod ads |nto roa|-t|mo v|doo contont.
Our Producta and 5orvicoa
Wo dos|gn our products to croato a usor-contr|c, |ntoract|vo oxpor|onco. Our dovo|opmont ottorts tocus on s|mp||c|ty and onsur|ng that contont can bo accossod
on any p|attorm.
Products |or Users
7wlttor. 1w|ttor a||ows usors to oxpross thomso|vos and croato, d|str|buto and d|scovor contont.




lomo 7lmo|loo. 1ho t|mo||no |s a koy componont ot tho usor oxpor|onco. A usor's t|mo||no d|sp|ays tho usor's |nd|v|dua| 1woots as wo|| as 1woots trom tho
usors thoy to||ow, w|th tho most rocont 1woots appoar|ng at tho top ot tho t|mo||no. 1ho t|mo||no prompts tho usor to rotrosh whonovor a to||owod usor sonds
a now 1woot. 1ho t|mo||no |s dos|gnod to bo s|mp|o and oasy to d|gost, and d|sp|ays on|y tho usor prot||o p|cturo and toxt contont ot oach 1woot. lt a 1woot
conta|ns r|ch mod|a contont, or |s part ot a broador convorsat|on |nvo|v|ng tavor|tos, rop||os and lotwoots, tho usor can oxpand tho 1woot to d|sp|ay th|s
contont |n tho t|mo||no.



5o|-Exprossloo Vocboolsms.




7woot Composor. Whon a usor wants to croato a 1woot, thoy can do so by s|mp|y c||ck|ng on tho Composo now 1woot' box or |con, compos|ng a
1woot and c||ck|ng 1woot' to sond tho 1woot to tho|r to||owors.




Prol|o. 1ho usor prot||o |nc|udos a usor's namo, 1w|ttor usornamo, |ocat|on, wobs|to, photograph and short b|ography, and a|so |nc|udos ||sts ot
tho accounts that tho usor |s to||ow|ng, tho usor's to||owors, tho usor's 1woots and mod|a ga||ory.




Llsts. A ||st |s a curatod group ot 1w|ttor usors. Usors can croato tho|r own ||sts or subscr|bo to ||sts croatod by othor usors. v|ow|ng a ||st t|mo||no
w||| show tho usor a stroam ot 1woots trom on|y tho usors on that ||st.



5oclo| Vocboolsms.




lo||ow. Usors so|oct wh|ch othor usors thoy want to to||ow basod on what |ntorosts thom. 1ho 1woots ot tho usors thoy to||ow aro d|sp|ayod |n tho|r
t|mo||no.




bo to lo||ow. Our usor rocommondat|on ong|no, Who to |o||ow,' prov|dos usors w|th rocommondat|ons tor othor usors to to||ow basod on tho|r
|ntorosts and who thoy aro curront|y to||ow|ng.




lovorltos, QRop|los ooo Rotwoots. var|ous toaturos onab|o usors to |ntoract w|th 1woots croatod by othor usors. Usors can c||ck on tho |avor|to'
button on a 1woot to domonstrato tho|r support ot or |ntorost |n tho 1woot. Usors can a|so rop|y to a 1woot croatod by anothor usor by c||ck|ng tho
lop|y' button on tho 1woot, wh|ch wo rotor to as an Qrop|y, bu||d|ng on tho or|g|na| contont and shar|ng tho|r thoughts and op|n|ons w|th tho sondor.
A 1woot can a|so bo rosont, or rotwootod, by a usor that has roco|vod |t by c||ck|ng tho lotwoot' button on tho 1woot, wh|ch onab|os usors to
rod|str|buto tho or|g|na| 1woot to tho|r to||owors.




Vootloos. Usors can rotor to, or mont|on, othor usors |n tho|r 1woots and lotwoots by donot|ng tho roc|p|ont w|th tho Q' symbo| to||owod by tho|r
usornamo. Wo d|sp|ay mont|ons, |nc|ud|ng Qrop||os, on tho QConnoct pago ot tho usor mont|onod.

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QCooooct. Usors can soo tho|r h|story ot |ntoract|ons w|th othor 1w|ttor usors by go|ng to tho|r QConnoct pago, wh|ch co||octs and d|sp|ays
|ntormat|on about a usor's to||owors and |ntoract|ons w|th othor usors on 1w|ttor.




Llroct Vossogos. ln ordor to a||ow non-pub||c commun|cat|on among 1w|ttor usors, 1w|ttor a||ows usors to sond pr|vato mossagos, known as
d|roct mossagos. Usors can on|y sond a d|roct mossago to a usor who |s to||ow|ng thom and can on|y roco|vo d|roct mossagos trom usors thoy
to||ow.




Protoctoo 7woots. 1w|ttor a|so prov|dos |ts usors w|th tho ab|||ty to mako tho|r 1woots pr|vato. A usor who choosos to ut|||zo th|s toaturo must
chooso to accopt a now to||owor roquost botoro h|s or hor 1woots aro v|s|b|o to that to||owor.



Llscovory Vocboolsms.




7rooos. 1op|cs that aro twootod about at a h|gh rato can bocomo tronds on 1w|ttor. 1ronds aro otton |nd|cators ot what |s curront and popu|ar at
any g|von momont |n a part|cu|ar country or wor|dw|do. 3omo tronds aro procodod by #,' wh|ch wo rotor to as a hashtag. 1ho uso ot hashtags on
our p|attorm was |n|t|atod by our usors and hashtags aro |nc|udod |n 1woots to mark thom as ro|at|ng to a top|c, onab||ng tronds to bo moro oas||y
|dont|t|od and convorsat|ons on a g|von top|c to bo moro oas||y tound.




5oorcb. 1w|ttor 3oarch onab|os usors to t|nd a roa|-t|mo targotod ||st ot tho 1woots and usors most ro|ovant to tho|r soarch top|c by koyword,
hashtag or usornamo.




#Llscovor. 1ho 1w|ttor #0|scovor too| onab|os usors to t|nd |ntorost|ng and ro|ovant |ntormat|on that thoy may not havo tound |n tho|r own t|mo||no
or through soarchos. A usor's |ntorosts, tho|r to||owors and act|v|ty dotorm|no what |s d|sp|ayod on tho usor's #0|scovor pago.



Notllcotloos.




Emol|, 5V5 ooo Posb Notllcotloos. Usors can custom|zo how thoy aro not|t|od about act|v|ty on 1w|ttor. 1hoy may o|oct to roco|vo oma||
not|t|cat|ons, 3V3 mossagos and mob||o push not|t|cat|ons, wh|ch aro a|orts sont to tho homo scroon ot a mob||o dov|co by a mob||o app||cat|on.



P|otorm Ublqolty. Wo mako 1w|ttor ava||ab|o across a var|oty ot mob||o and dosktop app||cat|ons and wobs|tos.




Vobl|o App|lcotloos. 1w|ttor |s ava||ab|o across a w|do rango ot mob||o dov|cos, |nc|ud|ng Andro|d phonos and tab|ots, |lhono, |lad, 3|ackborry,
W|ndows lhono and lok|a 340. Wo ta||or our products and sorv|cos to oach systom to croato a r|ch 1w|ttor oxpor|onco tor our usors, tak|ng
advantago ot tho capab|||t|os ot oach dov|co and |ts oporat|ng systom.




Vobl|o ob ooo 7wlttor.com. 1w|ttor |s ava||ab|o on tho wob at mob||o.tw|ttor.com and tw|ttor.com. Wo oporato ta||orod vors|ons ot our mob||o
wobs|to tor smartphono browsors and toaturo phono browsors to do||vor a compo|||ng usor oxpor|onco tor usors, rogard|oss ot how thoy accoss our
p|attorm.




5V5. Usors |n many countr|os around tho wor|d can rog|stor, to||ow accounts, roco|vo not|t|cat|ons and sond 1woots ont|ro|y through 3V3. Our
ro|at|onsh|ps w|th ovor 2b0 mob||o carr|ors onab|o usors who aro customors ot thoso carr|ors to ongago w|th 1w|ttor through 3V3.




Losktop App|lcotloos. Our 1woot0ock app||cat|on onab|os usors to v|ow mu|t|p|o stroams ot 1woots |n roa| t|mo, and oxocuto custom soarch
quor|os aga|nst roa|-t|mo contont. A 1w|ttor app||cat|on |s ava||ab|o on tho Vac|ntosh and W|ndows 8 p|attorms.

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Vloo. v|no |s a mob||o app||cat|on ava||ab|o on tho |O3 and Andro|d oporat|ng systoms that onab|os usors to croato and d|str|buto short |oop|ng v|doos ot up to
s|x soconds |n |ongth. v|no usors croato and d|str|buto tho|r v|doos to tho|r to||owors on v|no, w|th tho opt|on ot twoot|ng thom to tho|r 1w|ttor to||owors and shar|ng thom
on soc|a| notworks. Usors on v|no can to||ow othor usors, ro-broadcast to tho|r to||owors by rov|n|ng, commont on v|doos and ombod v|doos on wobs|tos. Wo do not
curront|y p|aco, or curront|y p|an to p|aco, ads on v|no.
#Voslc. #Vus|c |s a mob||o app||cat|on that ho|ps usors d|scovor now mus|c and art|sts basod on 1woots. #Vus|c |s ava||ab|o on tho |O3 p|attorm. #Vus|c
usos data trom tho 1w|ttor All to surtaco trond|ng mus|c art|sts |n a var|oty ot gonros, and a||ows usors to browso through art|sts basod on soc|a| ro|at|onsh|ps on
1w|ttor. Wo do not curront|y p|aco, or curront|y p|an to p|aco, ads on #Vus|c.
Our torms ot sorv|co govorn our usors' accoss to and uso ot our products and sorv|cos, as wo|| as any contont up|oadod, down|oadod or appoar|ng on our
products and sorv|cos. 3y agroo|ng to our torms ot sorv|co, our usors agroo to bo rospons|b|o tor tho|r uso ot our products and sorv|cos, tor any contont thoy post to our
products and sorv|cos and tor any consoquoncos thoroot. Our torms ot sorv|co a||ow us to a|tor or ||m|t uso ot our products and sorv|cos or torm|nato a usor's r|ght to
uso thom at our so|o d|scrot|on. Wo havo tho r|ght to romovo or rotuso to d|str|buto any contont and to suspond or torm|nato usors at any t|mo. Our usors rota|n tho|r
r|ghts to any contont thoy subm|t, post or d|sp|ay on our products and sorv|cos and grant us a ||conso to uso, pub||sh and d|str|buto such contont, |nc|ud|ng to our th|rd-
party partnors. Our usors a|so agroo to our pr|vacy po||cy wh|ch doscr|bos our co||oct|on and uso ot tho|r |ntormat|on. Our usors agroo that wo, and tho th|rd part|os w|th
whom wo partnor, may p|aco targotod advort|s|ng on our products and sorv|cos. Any usor may torm|nato th|s agroomont w|th us at any t|mo tor any roason by
doact|vat|ng tho|r account and d|scont|nu|ng tho|r uso ot our products and sorv|cos.
Products |or Plat|orm Partners
Wo prov|do a sot ot too|s, pub||c Alls and omboddab|o w|dgots that dovo|opors can uso to contr|buto tho|r contont to our p|attorm, d|str|buto 1w|ttor contont
across tho|r proport|os and onhanco tho|r wobs|tos and app||cat|ons w|th 1w|ttor contont. Ovor s|x m||||on wobs|tos havo |ntogratod w|th 1w|ttor, add|ng va|uo to our usor
oxpor|onco. ln add|t|on, ovor throo m||||on app||cat|ons havo boon rog|storod by dovo|opors to onab|o thom to |ntograto w|th our p|attorm, and |ovorago 1w|ttor contont to
onhanco and oxtond tho|r app||cat|ons |n now and croat|vo ways. 1ho goa| ot our p|attorm product dovo|opmont |s to mako |t oasy tor dovo|opors to |ntograto soam|oss|y
w|th 1w|ttor.
Koy o|omonts ot tho 1w|ttor p|attorm products |nc|udo:




7wlttor Coros. 1w|ttor Cards onab|o dovo|opors to attach contont and tunct|ona||ty to 1woots, and havo that contont appoar whorovor a 1woot |s d|sp|ayod
throughout wob and mob||o app||cat|ons. 0ovo|opors can ||nk 1w|ttor Cards d|roct|y to tho|r own mob||o app||cat|on or wobs|to, |n ordor to dr|vo v|s|ts and
app||cat|on |nsta||s.




7bo 7wlttor Pob|lc APl. 1ho 1w|ttor pub||c All a||ows p|attorm partnors to |ntograto 1w|ttor contont and to||owor ro|at|onsh|ps |nto tho|r app||cat|ons. |or
oxamp|o, a p|attorm partnor can connoct to tho 1w|ttor pub||c All |n ordor to co||oct, t||tor and |ntograto roa|-t|mo contont trom 1w|ttor |nto a ||vo to|ov|s|on
program or a th|rd-party wobs|to to |ntograto 1woots |nto a sont|mont mon|tor|ng app||cat|on to ho|p compan|os mon|tor and moasuro convorsat|on on 1w|ttor
about tho|r brand.




7wlttor or obsltos. 1w|ttor tor Wobs|tos |s a sot ot too|s that onab|o p|attorm partnors to |ntograto 1w|ttor contont and tunct|ona||ty |nto tho|r wobs|tos.
3|tos can ombod s|ng|o 1woots or t|mo||nos ot 1woots, or add 1woot buttons to tho|r wobs|tos that mako |t oasy tor v|s|tors to to||ow part|cu|ar accounts or
1woot about tho contont thoy aro v|ow|ng.

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Products and 8ervIces |or AdvertIsers
Our lromotod lroducts onab|o our advort|sors to promoto tho|r brands, products and sorv|cos, amp||ty tho|r v|s|b|||ty and roach, and oxtond tho convorsat|on
around tho|r advort|s|ng mossago. Curront|y, our lromotod lroducts cons|st ot tho to||ow|ng:




Promotoo 7woots. lromotod 1woots, wh|ch aro |abo|od as promotod,' appoar w|th|n a usor's t|mo||no or soarch rosu|ts just ||ko an ord|nary 1woot
rogard|oss ot dov|co, whothor |t bo dosktop or mob||o. Us|ng our propr|otary a|gor|thm and undorstand|ng ot tho |ntorosts ot oach usor, wo can do||vor
lromotod 1woots that aro |ntondod to bo ro|ovant to a part|cu|ar usor.




Promotoo Accooots. lromotod Accounts, wh|ch aro |abo|od as promotod,' appoar |n tho samo tormat and p|aco as accounts suggostod by our Who to
|o||ow rocommondat|on ong|no. lromotod Accounts prov|do a way tor our advort|sors to grow a commun|ty ot usors who aro |ntorostod |n tho|r bus|noss,
products or sorv|cos.




Promotoo 7rooos. lromotod 1ronds, wh|ch aro |abo|od as promotod,' appoar at tho top ot tho ||st ot trond|ng top|cs tor an ont|ro day |n a part|cu|ar country
or on a g|oba| bas|s. Whon a usor c||cks on a lromotod 1rond, soarch rosu|ts tor that trond aro shown |n a t|mo||no and a lromotod 1woot croatod by our
advort|sors |s d|sp|ayod to tho usor at tho top ot thoso soarch rosu|ts. Wo toaturo ono lromotod 1rond por day por goography.
Our tochno|ogy p|attorm and |ntormat|on databaso onab|o us to prov|do targot|ng capab|||t|os that mako |t poss|b|o tor advort|sors to promoto tho|r brands,
products and sorv|cos, amp||ty tho|r v|s|b|||ty and roach, and comp|omont and oxtond tho convorsat|on around tho|r advort|s|ng campa|gns, |nc|ud|ng tho to||ow|ng:




lotorost ooo Ooooor 7orgotlog. Advort|sors can targot lromotod 1woots and lromotod Account campa|gns basod on |ntorosts and gondor ot usors, wh|ch
wo prod|ct basod on tho accounts that a usor to||ows, and tho|r h|story ot |ntoract|on w|th contont on 1w|ttor.




Ooogropblc 7orgotlog. Advort|sors can targot lromotod 1woot and lromotod Account campa|gns basod on usor goography. Advort|sors can a|so purchaso
a lromotod 1rond on a country-by-country or wor|dw|do bas|s. Wo roco|vo |ntormat|on rogard|ng a usor's |ocat|on basod upon tho usor's ll addross or, |t tho
usor has turnod on |ocat|on sorv|cos on tho|r mob||o dov|co, tho |ocat|on ot tho usor's mob||o dov|co at tho t|mo ot usor ongagomont to tho oxtont poss|b|o. ln
tho ovont that roa|-t|mo |ocat|on |ntormat|on |s not ava||ab|o, wo ost|mato tho usor's |ocat|on basod upon an aggrogat|on ot ll addrossos trom wh|ch tho usor
has rocont|y accossod 1w|ttor. lt a usor's curront goograph|c |ocat|on |s not ava||ab|o or wo aro unab|o to ass|gn a goograph|c |ocat|on to a usor at tho t|mo
tho usor ongagos w|th 1w|ttor basod on rocont data, wo do||vor advort|s|ng that |s basod on tho goograph|c |ocat|on ot tho usor at tho t|mo that such usor
|n|t|a||y rog|storod tor an account on 1w|ttor basod on tho usor's ll addross.




Koyworo 7orgotlog. Advort|sors can targot spoc|t|c words that usors ongago w|th on 1w|ttor, |nc|ud|ng words markod w|th a hashtag, o|thor through soarch
quor|os, tho 1woots a usor croatos or tho 1woots a usor ongagos w|th.




7o|ovlsloo 7orgotlog. Advort|sors can targot usors who havo boon oxposod to tho|r ads on to|ov|s|on. Wo prov|do advort|sors w|th th|s targot|ng capab|||ty
by ana|yz|ng a usor's 1woots to dotorm|no wh|ch to|ov|s|on shows a usor has twootod about and match|ng th|s |ntormat|on w|th |ntormat|on rogard|ng wh|ch
commorc|a|s woro a|rod dur|ng thoso shows.



Lovlco 7orgotlog. Advort|sors can targot basod on spoc|t|c mob||o or dosktop dov|cos to roach usors |n spoc|t|c contoxts.

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1abIo ot Contonta
Whon our customors purchaso advort|s|ng sorv|cos thoy havo tho ab|||ty to mon|tor tho|r advort|s|ng campa|gns as to||ows:




Compolgo Vooogomoot. Our campa|gn managomont capab|||ty too|s a||ow advort|sors to mon|tor and mako changos to campa|gns |n roa| t|mo as ads aro
do||vorod. 1h|s a||ows advort|sors to act|vo|y manago tho|r campa|gns as thoy ga|n doopor |ns|ght |nto tho|r targot aud|onco and roact to ovonts and usor
roact|ons as thoy unto|d.




Roo|-7lmo Aoo|ytlcs. Our ana|yt|cs too|s g|vo our advort|sors |ns|ght |nto usor rosponso to tho|r ads, wh|ch ho|ps thom to undorstand tho succoss ot
campa|gns as wo|| as customor protoroncos.




Aovortlsor APl. Our Alls onab|o advort|sors to |ntograto w|th 1w|ttor and bu||d wobs|tos and app||cat|ons that |ntograto our campa|gn managomont and
ana|yt|cs too|s.
VoPob loc.
On 3optombor 0, 2018 wo ontorod |nto a dot|n|t|vo agroomont, or tho Volub Vorgor Agroomont, to acqu|ro Volub, a mob||o-tocusod advort|s|ng oxchango.
Onco wo comp|oto tho acqu|s|t|on ot Volub, wo p|an to |nvost to grow Volub's curront bus|noss, |nc|ud|ng by oxtond|ng advort|s|ng across tho mob||o ocosystom
through tho Volub oxchango. Wo a|so p|an to uso Volub's tochno|ogy to bu||d roa|-t|mo b|dd|ng |nto tho 1w|ttor ads p|attorm so that our advort|sors can moro oas||y
automato and sca|o tho|r advort|s|ng purchasos.
3ubjoct to tho torms and cond|t|ons ot tho Volub Vorgor Agroomont, upon tho c|os|ng ot tho proposod acqu|s|t|on, a|| ot tho |ssuod and outstand|ng sharos ot
cap|ta| stock ot Volub, othor than any d|ssont|ng sharos, and a|| oqu|ty awards to purchaso sharos ot Volub common stock ho|d by |nd|v|dua|s who w||| cont|nuo to
prov|do sorv|cos to us, w||| bo convortod |nto tho r|ght to roco|vo an aggrogato ot up to 14,701,404 sharos ot our common stock, subjoct to corta|n adjustmonts and
vost|ng torms doscr|bod |n tho Volub Vorgor Agroomont, and Volub w||| bocomo ono ot our who||y-ownod subs|d|ar|os. 1ho Volub Vorgor Agroomont conta|ns
customary roprosontat|ons, warrant|os and covonants by us and Volub, |nc|ud|ng covonants rogard|ng oporat|on ot |ts bus|noss by Volub and |ts subs|d|ar|os pr|or to
tho c|os|ng. 1ho c|os|ng ot tho transact|on |s subjoct to customary c|os|ng cond|t|ons, |nc|ud|ng approva| by Volub's stockho|dors and oxp|rat|on or torm|nat|on ot tho
app||cab|o wa|t|ng por|od undor tho |art-3cott-lod|no Ant|trust lmprovomonts Act ot 1070, as amondod. 1ho c|os|ng ot tho transact|on |s not subjoct to a voto ot our
stockho|dors. 1ho Volub Vorgor Agroomont conta|ns corta|n torm|nat|on r|ghts tor both Volub and us, |nc|ud|ng tor tho ta||uro to consummato tho transact|on by
0ocombor 20, 2018.
Products |or ata Partners
Wo ottor subscr|pt|on accoss to our data tood tor data partnors who w|sh to accoss data boyond tho pub||c All.
Comotition
Wo taco s|gn|t|cant compot|t|on tor usors, advort|sors and porsonno|.
Usors. Wo compoto aga|nst many compan|os to attract and ongago usors, somo ot wh|ch havo groator t|nanc|a| rosourcos and substant|a||y |argor usor
basos, such as |acobook (|nc|ud|ng lnstagram), Goog|o, l|nkodln, V|crosott and Yahoo!. Wo a|so compoto aga|nst sma||or compan|os such as 3|na Wo|bo, lllE and
Kakao, oach ot wh|ch |s basod |n As|a.
Wo bo||ovo that our ab|||ty to compoto ottoct|vo|y tor usors doponds upon many tactors, |nc|ud|ng tho usotu|noss, oaso ot uso, portormanco and ro||ab|||ty ot our
products and sorv|cos, tho amount, qua||ty

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1abIo ot Contonta
and t|mo||noss ot contont gonoratod by our usors, our ab|||ty to ostab||sh and ma|nta|n ro|at|onsh|ps w|th p|attorm partnors that |ntograto w|th our p|attorm, and our
roputat|on and tho strongth ot our brand.
Aovortlsors. Wo a|so taco s|gn|t|cant compot|t|on tor advort|sor spond. 1ho substant|a| major|ty ot our rovonuo |s gonoratod trom tho sa|o ot advort|s|ng
sorv|cos, and wo compoto aga|nst on||no and mob||o bus|nossos and trad|t|ona| mod|a out|ots, such as to|ov|s|on, rad|o and pr|nt, tor spond|ng on advort|s|ng.
Wo bo||ovo that our ab|||ty to compoto ottoct|vo|y tor advort|sor spond doponds upon many tactors, |nc|ud|ng tho s|zo and compos|t|on ot our usor baso, our ad
targot|ng capab|||t|os, tho t|m|ng and markot accoptanco ot our advort|s|ng sorv|cos, our markot|ng and so|||ng ottorts, tho roturn our advort|sors roco|vo trom our
advort|s|ng sorv|cos, and our roputat|on and tho strongth ot our brand.
Porsoooo|. Wo a|so oxpor|onco s|gn|t|cant compot|t|on tor h|gh|y sk|||od porsonno|, |nc|ud|ng son|or managomont, ong|noors, dos|gnors and product
managors. Our growth stratogy doponds |n part on our ab|||ty to rota|n our ox|st|ng porsonno| and add add|t|ona| h|gh|y sk|||od omp|oyoos. Compot|t|on tor h|gh|y sk|||od
porsonno| |s |ntonso, part|cu|ar|y |n tho 3an |ranc|sco 3ay Aroa, whoro our hoadquartors |s |ocatod, and wo compoto tor porsonno| aga|nst on||no and mob||o
bus|nossos, othor compan|os |n tho tochno|ogy |ndustry and trad|t|ona| mod|a bus|nossos, such as to|ov|s|on, rad|o and pr|nt.
Wo bo||ovo that our ab|||ty to compoto ottoct|vo|y tor h|gh|y sk|||od porsonno| doponds upon many tactors, |nc|ud|ng a work onv|ronmont that oncouragos
|ndopondonco, croat|v|ty and |nnovat|on, opportun|t|os to work on cha||ong|ng, moan|ngtu| and |mportant products, tho roputat|on and strongth ot our brand, and
componsat|on.
Wo bo||ovo that wo compoto tavorab|y on tho tactors doscr|bod abovo. |owovor, our |ndustry |s ovo|v|ng rap|d|y and |s bocom|ng |ncroas|ng|y compot|t|vo. 3oo
tho soct|ons t|t|od l|sk |actors-lt wo aro unab|o to compoto ottoct|vo|y tor usors and advort|sor spond, our bus|noss and oporat|ng rosu|ts cou|d bo harmod' and l|sk
|actors-Wo dopond on h|gh|y sk|||od porsonno| to grow and oporato our bus|noss, and |t wo aro unab|o to h|ro, rota|n and mot|vato our porsonno|, wo may not bo ab|o
to grow ottoct|vo|y.'
1ochnoIogy, Roaoarch and DovoIomont
1w|ttor |s composod ot a sot ot coro, sca|ab|o and d|str|butod sorv|cos that aro bu||t trom propr|otary and opon sourco tochno|og|os. 1hoso systoms aro capab|o
ot do||vor|ng b||||ons ot short mossagos to hundrods ot m||||ons ot poop|o a day |n an ott|c|ont and ro||ab|o way.




7wlttor`s 5co|o. 1woots aro do||vorod to usors v|a tho tw|ttor.com wobs|to, through ovor a dozon ownod and oporatod 1w|ttor app||cat|ons, and through
w|dgots that appoar on ovor s|x m||||on d|ttoront wobs|tos. Wo do||vor moro than 200 b||||on 1woots por day to our usors. Each t|mo a usor croatos a 1woot, |t
|s do||vorod to oach to||owor ot such usor that roquosts a t|mo||no. lt a to||owor thon rotwoots |t, tho 1woot |s do||vorod to oach ot tho|r to||owors who roquost a
t|mo||no. ln add|t|on, wo do||vor to usors any 1woots that may bo gonoratod through our tronds, soarch or #0|scovor tunct|ons. 1h|s procoss roqu|ros our
|ntrastructuro to co||oct and ott|c|ont|y do||vor |argo vo|umos ot |ntormat|on da||y.




Roo|-tlmo, 5orvlco Orlootoo Arcbltoctoro. 1w|ttor's arch|tocturo |s opt|m|zod so usors porco|vo |nstantanoous chango. 1ho t|mo botwoon a 1woot bo|ng
croatod and hav|ng |t ava||ab|o tor usors to soo and |ntoract w|th |n tho product |s moasurod |n tonths ot a socond. ln gonora|, tho |atoncy botwoon two ovonts
occurr|ng |n our |ntrastructuro |s moasurod |n m||||socond |ncromonts.




loooootlooo| lorostroctoro ooo Loto. Our usors havo croatod ovor 800 b||||on 1woots. Our custom|zod tochno|ogy rop||catos and ba|ancos th|s data
across mu|t|p|o goograph|ca||y d|str|butod databasos and a||ows us to storo, accoss and mod|ty |t at sca|o.

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1abIo ot Contonta



Ro|ovoocy ooo Cootoot Aoo|ysls. Wo havo bu||t systoms and a|gor|thms to organ|zo contont to onab|o usors to t|nd and d|scovor tho most ro|ovant
contont, poop|o and top|cs on 1w|ttor. Our koy tochno|og|os |nc|udo a d|str|butod, t|xod-|atoncy, h|gh portormanco soarch systom that a||ows us to ott|c|ont|y
|ndox, rotr|ovo and scoro usors and tho|r contont |n roa| t|mo. Wo havo a|so bu||t a trond|ng p|attorm to dotorm|no trond|ng top|cs on 1w|ttor.




Aovortlslog 7ocboo|ogy. Our advort|s|ng p|attorm a||ows advort|sors to roach usors basod on many tactors, |nc|ud|ng tho|r lntorost Graphs. Wo uso
soph|st|catod a|gor|thms to dotorm|no tho ||ko||hood ot usor ongagomont w|th spoc|t|c ads. Wo uso thoso a|gor|thms to match advort|sor domand w|th 1w|ttor
usors by p|ac|ng lromotod 1woots and lromotod Accounts |nto a usor's 1w|ttor oxpor|onco |n a way that opt|m|zos tor both usor oxpor|onco and tho va|uo
wo do||vor to advort|sors.
5aIoa and Narkoting
Wo havo a g|oba| sa|os torco and sa|os support statt that |s tocusod on attract|ng and rota|n|ng advort|sors. Our sa|os torco and sa|os support statt ass|sts
advort|sors throughout tho advort|s|ng campa|gn cyc|o, trom pro-purchaso doc|s|on mak|ng to roa|-t|mo opt|m|zat|ons as thoy ut|||zo our campa|gn managomont too|s,
and to post-campa|gn ana|yt|cs roports to assoss tho ottoct|vonoss ot tho|r advort|s|ng campa|gns. Our advort|sors a|so uso our so|t-sorvo advort|s|ng p|attorm to |aunch
and manago tho|r advort|s|ng campa|gns.
3|nco our |ncopt|on, our usor baso has grown pr|mar||y by word-ot-mouth. Our markot|ng ottorts to dato havo tocusod on amp||ty|ng and acco|orat|ng th|s word-
ot-mouth momontum. 1hrough thoso ottorts and poop|o's |ncroasod usago ot 1w|ttor wor|dw|do, wo havo boon ab|o to bu||d our brand w|th ro|at|vo|y m|n|ma| markot|ng
costs.
|ntoIIoctuaI Proorty
Wo sook to protoct our |nto||octua| proporty r|ghts by ro|y|ng on todora|, stato and common |aw r|ghts |n tho Un|tod 3tatos and othor countr|os, as wo|| as
contractua| rostr|ct|ons. Wo gonora||y ontor |nto cont|dont|a||ty and |nvont|on ass|gnmont agroomonts w|th our omp|oyoos and contractors, and cont|dont|a||ty
agroomonts w|th othor th|rd part|os, |n ordor to ||m|t accoss to, and d|sc|osuro and uso ot, our cont|dont|a| |ntormat|on and propr|otary tochno|ogy. ln add|t|on to thoso
contractua| arrangomonts, wo a|so ro|y on a comb|nat|on ot tradomarks, trado dross, doma|n namos, copyr|ghts, trado socrots and patonts to ho|p protoct our brand
and our othor |nto||octua| proporty.
As ot 1uno 80, 2018, wo had 0 |ssuod patonts and approx|mato|y 80 t||od patont app||cat|ons |n tho Un|tod 3tatos and toro|gn countr|os ro|at|ng to mossago
d|str|but|on, graph|ca| usor |ntortacos, socur|ty and ro|atod tochno|og|os. Our |ssuod Un|tod 3tatos patonts aro oxpoctod to oxp|ro botwoon 2028 and 2080.
Wo may bo unab|o to obta|n patont or tradomark protoct|on tor our tochno|og|os and brands, and our ox|st|ng patonts and tradomarks, and any patonts or
tradomarks that may bo |ssuod |n tho tuturo, may not prov|do us w|th compot|t|vo advantagos or d|st|ngu|sh our products and sorv|cos trom thoso ot our compot|tors. ln
add|t|on, any patonts and tradomarks may bo contostod, c|rcumvontod or tound unontorcoab|o or |nva||d, and wo may not bo ab|o to provont th|rd part|os trom |ntr|ng|ng,
d||ut|ng or othorw|so v|o|at|ng thom.
ln Vay 2018, wo |mp|omontod our lnnovator's latont Agroomont, or llA, wh|ch wo ontor |nto w|th our omp|oyoos and consu|tants, |nc|ud|ng our toundors. Wo
|mp|omontod tho llA bocauso wo woro concornod about tho rocont pro||torat|on ot ottons|vo patont |awsu|ts, |nc|ud|ng |awsu|ts by non-pract|c|ng ont|t|os.' Wo aro a|so
oncourag|ng othor compan|os to |mp|omont tho llA |n an ottort to roduco tho

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1abIo ot Contonta
numbor ot patonts w|th ottons|vo r|ghts wh|ch may bo transtorrod to th|rd part|os, |nc|ud|ng non-pract|c|ng ont|t|os. Wo bo||ovo that a roduct|on |n tho numbor ot patonts
w|th transtorrab|o ottons|vo r|ghts may roduco tho numbor ot ottons|vo |awsu|ts that may bo t||od, part|cu|ar|y by non-pract|c|ng ont|t|os.
1ho llA, wh|ch app||os to our curront and tuturo patonts, a||ows us to assort our patonts dotons|vo|y. 1ho llA a|so a||ows us to assort our patonts ottons|vo|y
w|th tho porm|ss|on ot tho |nvontors ot that part|cu|ar patont. Undor tho llA, an assort|on ot c|a|ms |s cons|dorod tor a dotons|vo purposo |t tho c|a|ms aro assortod:
(|) aga|nst an ont|ty that has t||od, ma|nta|nod, throatonod or vo|untar||y part|c|patod |n a patont |ntr|ngomont |awsu|t aga|nst us or any ot our usors, att|||atos, customors,
supp||ors or d|str|butors, (||) aga|nst an ont|ty that has usod |ts patonts ottons|vo|y aga|nst any othor party |n tho past ton yoars, so |ong as tho ont|ty has not |nst|tutod
tho patont |ntr|ngomont |awsu|t dotons|vo|y |n rosponso to a patont ||t|gat|on throat aga|nst tho ont|ty, or (|||) othorw|so to dotor a patont ||t|gat|on throat aga|nst us or our
usors, att|||atos, customors, supp||ors or d|str|butors. ln add|t|on, tho llA prov|dos that tho abovo ||m|tat|ons app|y to any tuturo ownor or oxc|us|vo ||consoo ot any ot our
patonts, wh|ch cou|d ||m|t our ab|||ty to so|| or ||conso our patonts to th|rd part|os |nc|ud|ng to non-pract|c|ng ont|t|os.
Compan|os |n tho lntornot, tochno|ogy and mod|a |ndustr|os own |argo numbors ot patonts, copyr|ghts, tradomarks and trado socrots, and troquont|y ontor |nto
||t|gat|on basod on a||ogat|ons ot |ntr|ngomont, m|sappropr|at|on, or othor v|o|at|ons ot |nto||octua| proporty or othor r|ghts. ln add|t|on, var|ous non-pract|c|ng ont|t|os' that
own patonts and othor |nto||octua| proporty r|ghts otton attompt to aggross|vo|y assort tho|r r|ghts |n ordor to oxtract va|uo trom tochno|ogy compan|os. Wo aro prosont|y
|nvo|vod |n a numbor ot |nto||octua| proporty |awsu|ts, and trom t|mo to t|mo wo taco, and wo oxpoct to taco |n tho tuturo, a||ogat|ons that wo havo |ntr|ngod or othorw|so
v|o|atod tho patonts, copyr|ghts, tradomarks, trado socrots, and othor |nto||octua| proporty r|ghts ot th|rd part|os, |nc|ud|ng our compot|tors and non-pract|c|ng ont|t|os.
As wo taco |ncroas|ng compot|t|on and as our bus|noss grows, wo w||| ||ko|y taco moro |nto||octua| proporty-ro|atod c|a|ms and ||t|gat|on mattors. |or add|t|ona|
|ntormat|on, soo tho soct|ons t|t|od l|sk |actors-Wo aro curront|y, and oxpoct to bo |n tho tuturo, party to |nto||octua| proporty r|ghts c|a|ms that aro oxpons|vo and
t|mo consum|ng to dotond, and, |t roso|vod advorso|y, cou|d havo a s|gn|t|cant |mpact on our bus|noss, t|nanc|a| cond|t|on or oporat|ng rosu|ts' and -loga|
lrocood|ngs.'
Covornmont RoguIation
Wo aro subjoct to a numbor ot U.3. todora| and stato and toro|gn |aws and rogu|at|ons that |nvo|vo mattors contra| to our bus|noss. 1hoso |aws and rogu|at|ons
may |nvo|vo pr|vacy, r|ghts ot pub||c|ty, data protoct|on, contont rogu|at|on, |nto||octua| proporty, compot|t|on, protoct|on ot m|nors, consumor protoct|on, taxat|on or othor
subjocts. Vany ot thoso |aws and rogu|at|ons aro st||| ovo|v|ng and bo|ng tostod |n courts and cou|d bo |ntorprotod |n ways that cou|d harm our bus|noss. ln add|t|on, tho
app||cat|on and |ntorprotat|on ot thoso |aws and rogu|at|ons otton aro uncorta|n, part|cu|ar|y |n tho now and rap|d|y ovo|v|ng |ndustry |n wh|ch wo oporato.
Wo aro a|so subjoct to todora|, stato and toro|gn |aws rogard|ng pr|vacy and tho protoct|on ot usor data. |oro|gn data protoct|on, pr|vacy, consumor protoct|on,
contont rogu|at|on and othor |aws and rogu|at|ons aro otton moro rostr|ct|vo than thoso |n tho Un|tod 3tatos. 1horo aro a|so a numbor ot |og|s|at|vo proposa|s pond|ng
botoro tho U.3. Congross, var|ous stato |og|s|at|vo bod|os and toro|gn govornmonts concorn|ng data protoct|on that cou|d attoct us. |or oxamp|o, rogu|at|on ro|at|ng to
tho 100b Europoan Un|on 0ata lrotoct|on 0|roct|vo |s curront|y bo|ng cons|dorod by Europoan |og|s|at|vo bod|os that may |nc|udo moro str|ngont oporat|ona|
roqu|romonts tor ont|t|os procoss|ng porsona| |ntormat|on and s|gn|t|cant pona|t|os tor non-comp||anco.
ln Varch 2011, to roso|vo an |nvost|gat|on |nto var|ous |nc|donts, wo ontorod |nto a sott|omont agroomont w|th tho |1C that, among othor th|ngs, roqu|ros us to
ostab||sh an |ntormat|on socur|ty program

11b
1abIo ot Contonta
dos|gnod to protoct non-pub||c consumor |ntormat|on and a|so roqu|ros that wo obta|n b|onn|a| |ndopondont socur|ty assossmonts. 1ho |1C |nvost|gat|on was tho rosu|t
ot two soparato |nc|donts |n wh|ch unauthor|zod |ntrudors obta|nod adm|n|strat|vo passwords ot corta|n 1w|ttor omp|oyoos. ln ono ot tho |nc|donts, tho |ntrudor accossod
tho omp|oyoo's adm|n|strat|vo capab|||t|os to traudu|ont|y rosot var|ous usor passwords and post unauthor|zod 1woots. 1ho ob||gat|ons undor tho sott|omont agroomont
roma|n |n ottoct unt|| tho |attor ot Varch 2, 2081, or tho dato 20 yoars attor tho dato, |t any, on wh|ch tho U.3. govornmont or tho |1C t||os a comp|a|nt |n todora| court
a||og|ng any v|o|at|on ot tho ordor. v|o|at|on ot ox|st|ng or tuturo rogu|atory ordors, sott|omonts, or consont docroos cou|d subjoct us to substant|a| monotary t|nos and
othor pona|t|os that cou|d nogat|vo|y attoct our t|nanc|a| cond|t|on and rosu|ts ot oporat|ons.
1w|ttor usors may bo rostr|ctod trom accoss|ng 1w|ttor trom corta|n countr|os, and othor countr|os havo |ntorm|ttont|y rostr|ctod accoss to 1w|ttor. |or oxamp|o,
1w|ttor |s not d|roct|y accoss|b|o |n Ch|na. lt |s poss|b|o that othor govornmonts may sook to rostr|ct accoss to or our b|ock our wobs|to or mob||o app||cat|ons, consor
contont ava||ab|o through our products or |mposo othor rostr|ct|ons that may attoct tho accoss|b|||ty or usab|||ty ot 1w|ttor tor an oxtondod por|od ot t|mo or |ndot|n|to|y.
Wo havo a pub||c po||cy toam that mon|tors |oga| and rogu|atory dovo|opmonts |n tho U.3., as wo|| as a numbor ot toro|gn countr|os, and works w|th
po||cymakors and rogu|ators |n tho U.3. and |ntornat|ona||y.
|or add|t|ona| |ntormat|on, soo tho soct|on t|t|od l|sk |actors-Our bus|noss |s subjoct to comp|ox and ovo|v|ng U.3. and toro|gn |aws and rogu|at|ons. 1hoso
|aws and rogu|at|ons aro subjoct to chango and uncorta|n |ntorprotat|on, and cou|d rosu|t |n c|a|ms, changos to our bus|noss pract|cos, monotary pona|t|os, |ncroasod
cost ot oporat|ons or doc||nos |n usor growth, usor ongagomont or ad ongagomont, or othorw|so harm our bus|noss.'
EmIoyooa
As ot 1uno 80, 2018, wo had approx|mato|y 2,000 tu||-t|mo omp|oyoos.
LogaI Procoodinga
Wo aro curront|y |nvo|vod |n, and may |n tho tuturo bo |nvo|vod |n, |oga| procood|ngs, c|a|ms and govornmont |nvost|gat|ons |n tho ord|nary courso ot bus|noss.
Wo aro |nvo|vod |n ||t|gat|on, and may |n tho tuturo bo |nvo|vod |n ||t|gat|on, w|th th|rd part|os assort|ng, among othor th|ngs, |ntr|ngomont ot tho|r |nto||octua| proporty
r|ghts. ln add|t|on, tho naturo ot our bus|noss oxposos us to c|a|ms ro|atod to dotamat|on, r|ghts ot pub||c|ty and pr|vacy, and porsona| |njury torts rosu|t|ng trom
|ntormat|on that |s pub||shod or mado ava||ab|o on our p|attorm. 1h|s r|sk |s onhancod |n corta|n jur|sd|ct|ons outs|do tho Un|tod 3tatos whoro our protoct|on trom ||ab|||ty
tor contont pub||shod on our p|attorm by th|rd part|os may bo unc|oar and whoro wo may bo |oss protoctod undor |oca| |aws than wo aro |n tho Un|tod 3tatos. A|though
tho rosu|ts ot tho |oga| procood|ngs, c|a|ms and govornmont |nvost|gat|ons |n wh|ch wo aro |nvo|vod cannot bo prod|ctod w|th corta|nty, wo do not bo||ovo that thoro |s a
roasonab|o poss|b|||ty that tho t|na| outcomo ot thoso mattors w||| havo a mator|a| advorso ottoct on our bus|noss, t|nanc|a| cond|t|on or oporat|ng rosu|ts.
|uturo ||t|gat|on may bo nocossary, among othor th|ngs, to dotond ourso|vos, our p|attorm partnors and our usors by dotorm|n|ng tho scopo, ontorcoab|||ty, and
va||d|ty ot th|rd-party propr|otary r|ghts or to ostab||sh our propr|otary r|ghts. 1ho rosu|ts ot any curront or tuturo ||t|gat|on cannot bo prod|ctod w|th corta|nty, and
rogard|oss ot tho outcomo, ||t|gat|on can havo an advorso |mpact on us bocauso ot dotonso and sott|omont costs, d|vors|on ot managomont rosourcos and othor tactors.

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1abIo ot Contonta
FaciIitioa
ln Apr|| 2011, wo ontorod |nto a |oaso ottoct|vo through Apr|| 2018 tor approx|mato|y 214,0b0 squaro toot ot ott|co spaco that housos our pr|nc|pa| ott|cos |n 3an
|ranc|sco, Ca||torn|a. ln 1uno 2012, wo amondod tho |oaso to |nc|udo approx|mato|y 8b,2b0 squaro toot ot add|t|ona| ott|co spaco tor a torm ottoct|vo through lovombor
2021. Wo havo |oasos w|th data contor oporators |n tho Un|tod 3tatos pursuant to var|ous |oaso agroomonts and co-|ocat|on arrangomonts. Wo bo||ovo our tac|||t|os aro
sutt|c|ont tor our curront noods.

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1abIo ot Contonta
NANACENEN1
Exocutivo Otticora and Diroctora
1ho to||ow|ng tab|o prov|dos |ntormat|on rogard|ng our oxocut|vo ott|cors and d|roctors as ot August 81, 2018:

Namo Ago Poaition
Exocotlvo Olcors.
l|chard Costo|o 40 Ch|ot Exocut|vo Ott|cor and 0|roctor
A|| lowghan| 40 Ch|ot Oporat|ng Ott|cor
V|ko Gupta 42 Ch|ot ||nanc|a| Ott|cor
Adam 3a|n 80 lros|dont ot G|oba| lovonuo
Chr|stophor |ry 48 3on|or v|co lros|dont ot Eng|noor|ng
v|jaya Gaddo 88 Gonora| Counso| and 3ocrotary
Noo-Emp|oyoo Llroctors.
1ack 0orsoy 80 Cha|rman
lotor Chorn|n 02 0|roctor
lotor Curr|o b7 0|roctor
lotor |onton 41 0|roctor
0av|d losonb|att 4b 0|roctor
Evan W||||ams 41 0|roctor
ExecutIve O||Icers
Rlcboro Costo|o. Vr. Costo|o has sorvod as our Ch|ot Exocut|vo Ott|cor s|nco Octobor 2010 and as a mombor ot our board ot d|roctors s|nco 3optombor 2000.
|rom 3optombor 2000 to Octobor 2010, Vr. Costo|o sorvod as our Ch|ot Oporat|ng Ott|cor. |rom 1uno 2007 to 1uno 2000, Vr. Costo|o sorvod as Group lroduct Vanagor
at Goog|o lnc., a prov|dor ot lntornot-ro|atod products and sorv|cos. |rom Octobor 2008 to Vay 2007, Vr. Costo|o sorvod as Co-|oundor and Ch|ot Exocut|vo Ott|cor ot
|ood3urnor, lnc., an l33 subscr|pt|on tood prov|dor, wh|ch was acqu|rod by Goog|o |n 2007. Vr. Costo|o ho|ds a 3.3. |n Computor 3c|onco trom tho Un|vors|ty ot
V|ch|gan, Ann Arbor.
Vr. Costo|o was so|octod to sorvo on our board ot d|roctors bocauso ot h|s oxtons|vo background as a toundor and an oxocut|vo ot compan|os |n tho tochno|ogy
|ndustry and tho porspoct|vo and oxpor|onco ho br|ngs as our Ch|ot Exocut|vo Ott|cor.
A|l Rowgbool. Vr. lowghan| has sorvod as our Ch|ot Oporat|ng Ott|cor s|nco 0ocombor 2012 and sorvod as our Ch|ot ||nanc|a| Ott|cor trom Varch 2010 to
0ocombor 2012. |rom 1uno 2002 to Varch 2010, Vr. lowghan| sorvod |n sovora| ro|os at l|xar An|mat|on 3tud|os, lnc., a computor an|mat|on t||m stud|o, |nc|ud|ng as
Ch|ot ||nanc|a| Ott|cor and 3on|or v|co lros|dont ot 3tratog|c l|ann|ng. Vr. lowghan| ho|ds a 3.A. |n lntornat|ona| lo|at|ons and an V.3.A. trom 3tantord Un|vors|ty.
Vlko Oopto. Vr. Gupta has sorvod as our Ch|ot ||nanc|a| Ott|cor s|nco 0ocombor 2012 and sorvod as our v|co lros|dont ot Corporato ||nanco and 1roasuror
trom lovombor 2012 to 0ocombor 2012. |rom Vay 2011 to lovombor 2012, Vr. Gupta sorvod |n two ro|os at Zynga lnc., an on||no prov|dor ot soc|a| gamo sorv|cos,
|nc|ud|ng as 3on|or v|co lros|dont and 1roasuror. |rom |obruary 2008 to Vay 2011, Vr. Gupta sorvod |n sovora| ro|os at Yahoo! lnc., an lntornot company, |nc|ud|ng as
3on|or v|co lros|dont ot Corporato 0ovo|opmont and ||nanco and Ch|ot 1roasury Ott|cor. Vr. Gupta ho|ds a 3.3. |n Account|ng and Econom|cs trom low York
Un|vors|ty and an V.3.A. trom tho Un|vors|ty ot Ch|cago.

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1abIo ot Contonta
Aoom Bolo. Vr. 3a|n has sorvod as our lros|dont ot G|oba| lovonuo s|nco 3optombor 2010. |rom 3optombor 1000 to 3optombor 2010, Vr. 3a|n sorvod |n
sovora| ro|os at lows Corporat|on, a d|vors|t|od mod|a company, |nc|ud|ng as Exocut|vo v|co lros|dont ot lroducts 8 1ochno|ogy and as lros|dont ot |ts advort|s|ng
arm, |ox Aud|onco lotwork, lnc. Vr. 3a|n ho|ds a 3.A. |n Eng||sh 1ourna||sm trom V|am| Un|vors|ty.
Cbrlstopbor lry. Vr. |ry has sorvod as our 3on|or v|co lros|dont ot Eng|noor|ng s|nco Varch 2018. |rom Apr|| 2012 to Varch 2018, Vr. |ry sorvod as our
v|co lros|dont ot Eng|noor|ng. |rom 1uno 200b to Apr|| 2012, Vr. |ry sorvod |n sovora| ro|os at sa|ostorco.com, |nc., an ontorpr|so sottwaro company, |nc|ud|ng as
3on|or v|co lros|dont, 0ovo|opmont. Vr. |ry ho|ds a 3.A. |n Cogn|t|vo 3c|onco trom vassar Co||ogo and a lh.0. |n Cogn|t|vo 3c|onco trom tho Un|vors|ty ot Ca||torn|a,
3an 0|ogo.
Vljoyo Ooooo. Vs. Gaddo has sorvod as our Gonora| Counso| and 3ocrotary s|nco August 2018 and sorvod as our 0|roctor, loga| trom 1u|y 2011 to August
2018. |rom Octobor 2010 to 1u|y 2011, Vs. Gaddo sorvod as 3on|or 0|roctor and Assoc|ato Gonora| Counso|, Corporato, at 1un|por lotworks, lnc., a prov|dor ot
notwork |ntrastructuro products and sorv|cos. |rom Octobor 2000 to Apr|| 2010, Vs. Gaddo was an attornoy at W||son 3ons|n| Goodr|ch 8 losat|, l.C. Vs. Gaddo
ho|ds a 3.3. |n lndustr|a| and labor lo|at|ons trom Corno|| Un|vors|ty and a 1.0. trom low York Un|vors|ty 3choo| ot law.
Non-Employee Irectors
1ock Lorsoy. Vr. 0orsoy |s ono ot our toundors and has sorvod as tho Cha|rman ot our board ot d|roctors s|nco Octobor 2008 and as a mombor ot our board
ot d|roctors s|nco Vay 2007. Vr. 0orsoy sorvod as our lros|dont and Ch|ot Exocut|vo Ott|cor trom Vay 2007 to Octobor 2008. 3|nco |obruary 2000, Vr. 0orsoy has
sorvod as Co-|oundor and Ch|ot Exocut|vo Ott|cor ot 3quaro, lnc., a prov|dor ot paymont procoss|ng sorv|cos.
Vr. 0orsoy was so|octod to sorvo on our board ot d|roctors bocauso ot tho porspoct|vo and oxpor|onco ho br|ngs as ono ot our toundors and as ono ot our
|argost stockho|dors, as wo|| as h|s oxtons|vo oxpor|onco w|th tochno|ogy compan|os.
Potor Cborolo. Vr. Chorn|n has sorvod as a mombor ot our board ot d|roctors s|nco lovombor 2012. 3|nco 1uno 2000, Vr. Chorn|n has sorvod as |oundor and
Cha|rman ot Chorn|n Entorta|nmont, llC, a t||m and to|ov|s|on product|on company, and 1ho Chorn|n Group llC, wh|ch |s |nvo|vod |n stratog|c opportun|t|os |n mod|a,
tochno|ogy and ontorta|nmont. 3|nco Octobor 2010, Vr. Chorn|n has sorvod as Co-|oundor and Cha|rman ot CA Vod|a, ll, wh|ch bu||ds and managos mod|a,
tochno|ogy and ontorta|nmont bus|nossos throughout tho As|a lac|t|c rog|on. |rom Octobor 1000 to 1uno 2000, Vr. Chorn|n sorvod |n sovora| ro|os at lows Corporat|on,
most rocont|y as lros|dont and Ch|ot Oporat|ng Ott|cor, and sorvod as Cha|rman and Ch|ot Exocut|vo Ott|cor ot 1ho |ox Group, a subs|d|ary ot lows Corporat|on.
Vr. Chorn|n curront|y sorvos on tho boards ot d|roctors ot Amor|can Expross Company, a d|vors|t|od t|nanc|a| sorv|cos company, and landora Vod|a, lnc., an on||no
mus|c stroam|ng company. Vr. Chorn|n prov|ous|y sorvod on tho boards ot d|roctors ot var|ous compan|os |n tho mod|a |ndustry and tho tochno|ogy |ndustry, |nc|ud|ng
lows Corporat|on, 0|roc1v, lnc., E1rado ||nanc|a| Corporat|on and Gomstar-1v Gu|do lntornat|ona|, lnc. Vr. Chorn|n ho|ds a 3.A. |n Eng||sh l|toraturo trom tho
Un|vors|ty ot Ca||torn|a, 3orko|oy.
Vr. Chorn|n was so|octod to sorvo on our board ot d|roctors bocauso ot h|s oporat|ng and managomont oxpor|onco at g|oba| mod|a compan|os, h|s oxport|so |n
on||no and mob||o markots and othor now tochno|og|os and h|s sorv|co on tho boards ot d|roctors ot numorous othor compan|os.
Potor Corrlo. Vr. Curr|o has sorvod as a mombor ot our board ot d|roctors s|nco lovombor 2010. 3|nco Apr|| 2004, Vr. Curr|o has sorvod as lros|dont ot Curr|o
Cap|ta| llC, a pr|vato |nvostmont t|rm. Vr. Curr|o prov|ous|y sorvod as Exocut|vo v|co lros|dont and Ch|ot Adm|n|strat|vo Ott|cor ot

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1abIo ot Contonta
lotscapo Commun|cat|ons Corporat|on, a sottwaro company, and as Exocut|vo v|co lros|dont and Ch|ot ||nanc|a| Ott|cor ot VcCaw Co||u|ar Commun|cat|ons, lnc., a
w|ro|oss commun|cat|ons company. Vr. Curr|o curront|y sorvos on tho boards ot d|roctors ot 3ch|umborgor l|m|tod, a potro|oum |ndustry sorv|cos company, and a
numbor ot pr|vato|y ho|d compan|os. Vr. Curr|o prov|ous|y sorvod on tho boards ot d|roctors ot C|oarw|ro Corporat|on, ClE1 lotworks, lnc., 3atoco Corporat|on and 3un
V|crosystoms, lnc. Vr. Curr|o curront|y sorvos as lros|dont ot tho board ot trustoos ot lh||||ps Acadomy. Vr. Curr|o ho|ds a 3.A. |n Econom|cs and |ronch l|toraturo
trom W||||ams Co||ogo and an V.3.A. trom 3tantord Un|vors|ty.
Vr. Curr|o was so|octod to sorvo on our board ot d|roctors bocauso ot h|s strong t|nanc|a| and oporat|ona| oxport|so as a rosu|t ot h|s sorv|co on tho boards ot
d|roctors ot numorous othor compan|os and oxpor|onco sorv|ng |n son|or oporat|ng ro|os |n h|gh-growth, tochno|ogy-dr|von compan|os.
Potor lootoo. Vr. |onton has sorvod as a mombor ot our board ot d|roctors s|nco |obruary 2000. 3|nco 3optombor 2000, Vr. |onton has sorvod as a Gonora|
lartnor ot 3onchmark Cap|ta|, a vonturo cap|ta| t|rm. |rom Octobor 1000 to Vay 2000, Vr. |onton sorvod as a Vanag|ng lartnor at Acco| lartnors, a vonturo cap|ta|
t|rm. Vr. |onton curront|y sorvos on tho boards ot d|roctors ot Yo|p, lnc., a |oca| d|roctory and usor rov|ow sorv|co, and a numbor ot pr|vato|y ho|d compan|os. Vr. |onton
ho|ds a 3.A. |n lh||osophy and an V.3.A. trom 3tantord Un|vors|ty.
Vr. |onton was so|octod to sorvo on our board ot d|roctors bocauso ot h|s oxtons|vo oxpor|onco |n tho vonturo cap|ta| |ndustry and h|s know|odgo ot tochno|ogy
compan|os.
Lovlo Rosoob|ott. Vr. losonb|att has sorvod as a mombor ot our board ot d|roctors s|nco 0ocombor 2010. 3|nco lovombor 2011, Vr. losonb|att has sorvod
as Ch|ot Exocut|vo Ott|cor ot 1std|bs.com, lnc., an on||no |uxury markotp|aco. |rom Octobor 2008 to Vay 2000, Vr. losonb|att sorvod as lros|dont ot G|oba| 0|sp|ay
Advort|s|ng at Goog|o. Vr. losonb|att jo|nod Goog|o |n Varch 2008 |n connoct|on w|th Goog|o's acqu|s|t|on ot 0oub|oC||ck, lnc., a prov|dor ot d|g|ta| markot|ng
tochno|ogy and sorv|cos. Vr. losonb|att jo|nod 0oub|oC||ck |n 1007 as part ot |ts |n|t|a| managomont toam and sorvod |n sovora| oxocut|vo pos|t|ons dur|ng h|s tonuro,
|nc|ud|ng as Ch|ot Exocut|vo Ott|cor trom 1u|y 200b to Varch 2008 and lros|dont trom 2000 to 1u|y 200b. Vr. losonb|att curront|y sorvos on tho boards ot d|roctors ot
lAC/lntorAct|voCorp, a mod|a and lntornot company, and a numbor ot pr|vato|y ho|d compan|os. Vr. losonb|att ho|ds a 3.A. |n East As|an 3tud|os trom Ya|o Un|vors|ty
and an V.3.A. trom 3tantord Un|vors|ty.
Vr. losonb|att was so|octod to sorvo on our board ot d|roctors bocauso ot h|s oporat|ng and managomont oxpor|onco w|th a rango ot lntornot and tochno|ogy
compan|os, part|cu|ar|y h|s oxpor|onco w|th compan|os that tocusod on monot|z|ng |argo on||no aud|oncos.
Evoo l||loms. Vr. W||||ams |s ono ot our toundors and has sorvod as a mombor ot our board ot d|roctors s|nco Vay 2007. |rom Octobor 2008 to Octobor
2010, Vr. W||||ams sorvod as our lros|dont and Ch|ot Exocut|vo Ott|cor, trom 1u|y 2000 to Varch 2010, as our Ch|ot ||nanc|a| Ott|cor and trom |obruary 2008 to Octobor
2008, as our Ch|ot lroduct Ott|cor. 3|nco Apr|| 2011, Vr. W||||ams has sorvod as Ch|ot Exocut|vo Ott|cor ot Vod|um, an on||no pub||sh|ng p|attorm, and s|nco Octobor
2000, as Ch|ot Exocut|vo Ott|cor ot 1ho Obv|ous Corporat|on, a tochno|ogy systoms |nnovator.
Vr. W||||ams was so|octod to sorvo on our board ot d|roctors bocauso ot tho porspoct|vo and oxpor|onco ho br|ngs as ono ot our toundors and as ono ot our
|argost stockho|dors, as wo|| as h|s oxtons|vo oxpor|onco w|th tochno|ogy compan|os.
Each oxocut|vo ott|cor sorvos at tho d|scrot|on ot our board ot d|roctors and ho|ds ott|co unt|| h|s succossor |s du|y o|octod and qua||t|od or unt|| h|s oar||or
ros|gnat|on or romova|. 1horo aro no tam||y ro|at|onsh|ps among any ot our d|roctors or oxocut|vo ott|cors.

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Codo ot Buainoaa Conduct and Ethica
Our board ot d|roctors has adoptod a codo ot bus|noss conduct and oth|cs that app||os to a|| ot our omp|oyoos, ott|cors and d|roctors, |nc|ud|ng our Ch|ot
Exocut|vo Ott|cor, Ch|ot ||nanc|a| Ott|cor and othor oxocut|vo and son|or t|nanc|a| ott|cors. 1ho tu|| toxt ot our codo ot bus|noss conduct and oth|cs w||| bo postod on tho
|nvostor ro|at|ons pago on our wobs|to. Wo |ntond to d|sc|oso any amondmonts to our codo ot bus|noss conduct and oth|cs, or wa|vors ot |ts roqu|romonts, on our
wobs|to or |n t|||ngs undor tho Exchango Act.
Board ot Diroctora
Our bus|noss and atta|rs aro managod undor tho d|roct|on ot our board ot d|roctors. Our board ot d|roctors cons|sts ot, and our curront cort|t|cato ot |ncorporat|on
author|zos, sovon d|roctors, tour ot whom qua||ty as |ndopondont' undor tho ||st|ng standards ot tho . lursuant to our curront cort|t|cato ot |ncorporat|on
and amondod and rostatod vot|ng agroomont, our curront d|roctors woro o|octod as to||ows:



Vr. Costo|o was o|octod as tho dos|gnoo rosorvod tor tho porson sorv|ng as our Ch|ot Exocut|vo Ott|cor,




Vr. 0orsoy was o|octod as tho dos|gnoo nom|natod by tho porson sorv|ng as our Ch|ot Exocut|vo Ott|cor and approvod by a major|ty ot tho othor mombors ot
our board ot d|roctors,



Vossrs. Curr|o and losonb|att woro o|octod as tho dos|gnoos nom|natod by our nom|nat|ng and corporato govornanco comm|ttoo,




Vossrs. Chorn|n and |onton woro o|octod as tho dos|gnoos nom|natod by our nom|nat|ng and corporato govornanco comm|ttoo and approvod by ho|dors ot a
major|ty ot sharos ot our cap|ta| stock ownod by corta|n part|os to our amondod and rostatod vot|ng agroomont, and




Vr. W||||ams was o|octod as tho dos|gnoo nom|natod by ho|dors ot a major|ty ot sharos ot our 3or|os A convort|b|o protorrod stock ownod by corta|n part|os
to our amondod and rostatod vot|ng agroomont.
Our amondod and rostatod vot|ng agroomont w||| torm|nato and tho prov|s|ons ot our curront cort|t|cato ot |ncorporat|on by wh|ch our d|roctors woro o|octod w|||
bo amondod and rostatod |n connoct|on w|th th|s ottor|ng. Attor th|s ottor|ng, tho numbor ot d|roctors w||| bo t|xod by our board ot d|roctors, subjoct to tho torms ot our
amondod and rostatod cort|t|cato ot |ncorporat|on and amondod and rostatod by|aws that w||| bocomo ottoct|vo |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng. Each
ot our curront d|roctors w||| cont|nuo to sorvo as a d|roctor unt|| tho o|oct|on and qua||t|cat|on ot h|s succossor, or unt|| h|s oar||or doath, ros|gnat|on or romova|.
ClassI|Ied Board o| Irectors
Wo |ntond to adopt an amondod and rostatod cort|t|cato ot |ncorporat|on that w||| prov|do that, |mmod|ato|y attor tho comp|ot|on ot th|s ottor|ng, our board ot
d|roctors w||| bo d|v|dod |nto throo c|assos w|th staggorod throo-yoar torms. On|y ono c|ass ot d|roctors w||| bo o|octod at oach annua| moot|ng ot stockho|dors, w|th tho
othor c|assos cont|nu|ng tor tho roma|ndor ot tho|r rospoct|vo throo-yoar torms. Our curront d|roctors w||| bo d|v|dod among tho throo c|assos as to||ows:



tho C|ass l d|roctors w||| bo Vossrs. Costo|o and |onton, and tho|r torms w||| oxp|ro at tho annua| moot|ng ot stockho|dors to bo ho|d |n 2014,



tho C|ass ll d|roctors w||| bo Vossrs. losonb|att and W||||ams, and tho|r torms w||| oxp|ro at tho annua| moot|ng ot stockho|dors to bo ho|d |n 201b, and

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tho C|ass lll d|roctors w||| bo Vossrs. Chorn|n, Curr|o and 0orsoy, and tho|r torms w||| oxp|ro at tho annua| moot|ng ot stockho|dors to bo ho|d |n 2010.
Each d|roctor's torm w||| cont|nuo unt|| tho o|oct|on and qua||t|cat|on ot h|s succossor, or h|s oar||or doath, ros|gnat|on or romova|. Any |ncroaso or docroaso |n
tho numbor ot d|roctors w||| bo d|str|butod among tho throo c|assos so that, as noar|y as poss|b|o, oach c|ass w||| cons|st ot ono-th|rd ot our d|roctors.
1h|s c|ass|t|cat|on ot our board ot d|roctors may havo tho ottoct ot do|ay|ng or provont|ng changos |n contro| ot our company.
Diroctor |ndoondonco
Our board ot d|roctors has undortakon a rov|ow ot tho |ndopondonco ot oach d|roctor. 3asod on |ntormat|on prov|dod by oach d|roctor concorn|ng h|s
background, omp|oymont and att|||at|ons, our board ot d|roctors has dotorm|nod that Vossrs. Chorn|n, Curr|o, |onton and losonb|att do not havo a ro|at|onsh|p that
wou|d |ntortoro w|th tho oxorc|so ot |ndopondont judgmont |n carry|ng out tho rospons|b|||t|os ot a d|roctor and that oach ot thoso d|roctors |s |ndopondont' as that torm
|s dot|nod undor tho ||st|ng standards ot tho . ln mak|ng thoso dotorm|nat|ons, our board ot d|roctors cons|dorod tho curront and pr|or ro|at|onsh|ps that
oach non-omp|oyoo d|roctor has w|th our company and a|| othor tacts and c|rcumstancos our board ot d|roctors doomod ro|ovant |n dotorm|n|ng tho|r |ndopondonco,
|nc|ud|ng tho bonot|c|a| ownorsh|p ot our cap|ta| stock by oach non-omp|oyoo d|roctor, and tho transact|ons |nvo|v|ng thom doscr|bod |n tho soct|on t|t|od Corta|n
lo|at|onsh|ps and lo|atod larty 1ransact|ons.'
Load |ndoondont Diroctor
lr|or to tho comp|ot|on ot th|s ottor|ng, our board ot d|roctors w||| adopt corporato govornanco gu|do||nos. Our corporato govornanco gu|do||nos w||| prov|do that
ono ot our |ndopondont d|roctors shou|d sorvo as our load lndopondont 0|roctor at any t|mo whon our Ch|ot Exocut|vo Ott|cor sorvos as tho Cha|rman ot our board ot
d|roctors or |t tho Cha|rman |s not othorw|so |ndopondont. 3ocauso Vr. 0orsoy |s our Cha|rman, our board ot d|roctors has appo|ntod Vr. Curr|o to sorvo as our load
lndopondont 0|roctor. As load lndopondont 0|roctor, Vr. Curr|o w||| pros|do ovor por|od|c moot|ngs ot our |ndopondont d|roctors, sorvo as a ||a|son botwoon our Cha|rman
and our |ndopondont d|roctors and portorm such add|t|ona| dut|os as our board ot d|roctors may othorw|so dotorm|no and do|ogato.
Committooa ot tho Board ot Diroctora
Our board ot d|roctors has ostab||shod an aud|t comm|ttoo, a componsat|on comm|ttoo and a nom|nat|ng and corporato govornanco comm|ttoo. 1ho
compos|t|on and rospons|b|||t|os ot oach ot tho comm|ttoos ot our board ot d|roctors |s doscr|bod bo|ow. Vombors w||| sorvo on thoso comm|ttoos unt|| tho|r ros|gnat|on
or unt|| as othorw|so dotorm|nod by our board ot d|roctors.
AudIt CommIttee
Our aud|t comm|ttoo cons|sts ot Vossrs. Curr|o, |onton and losonb|att, w|th Vr. Curr|o sorv|ng as Cha|rman, oach ot whom moots tho roqu|romonts tor
|ndopondonco undor tho ||st|ng standards ot tho and 3EC ru|os and rogu|at|ons. Each mombor ot our aud|t comm|ttoo a|so moots tho t|nanc|a| ||toracy and
soph|st|cat|on roqu|romonts ot tho ||st|ng standards ot tho . ln add|t|on, our board ot d|roctors has dotorm|nod that Vr. Curr|o |s an aud|t comm|ttoo t|nanc|a|
oxport w|th|n tho moan|ng ot ltom 407(d) ot logu|at|on 3-K undor tho 3ocur|t|os Act ot 1088, as amondod, or tho 3ocur|t|os Act. |o||ow|ng tho comp|ot|on ot th|s
ottor|ng, our aud|t comm|ttoo w|||, among othor th|ngs:



so|oct a qua||t|od t|rm to sorvo as tho |ndopondont rog|storod pub||c account|ng t|rm to aud|t our t|nanc|a| statomonts,

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ho|p to onsuro tho |ndopondonco and portormanco ot tho |ndopondont rog|storod pub||c account|ng t|rm,




d|scuss tho scopo and rosu|ts ot tho aud|t w|th tho |ndopondont rog|storod pub||c account|ng t|rm, and rov|ow, w|th managomont and tho |ndopondont
rog|storod pub||c account|ng t|rm, our |ntor|m and yoar-ond oporat|ng rosu|ts,



dovo|op procoduros tor omp|oyoos to subm|t concorns anonymous|y about quost|onab|o account|ng or aud|t mattors,



rov|ow our po||c|os on r|sk assossmont and r|sk managomont,



rov|ow ro|atod party transact|ons, and




approvo or, as roqu|rod, pro-approvo, a|| aud|t and a|| porm|ss|b|o non-aud|t sorv|cos, othor than do m|n|m|s non-aud|t sorv|cos, to bo portormod by tho
|ndopondont rog|storod pub||c account|ng t|rm.
Our aud|t comm|ttoo w||| oporato undor a wr|tton chartor, to bo ottoct|vo pr|or to tho comp|ot|on ot th|s ottor|ng, that sat|st|os tho app||cab|o ru|os and rogu|at|ons
ot tho 3EC and tho ||st|ng standards ot tho .
CompensatIon CommIttee
Our componsat|on comm|ttoo cons|sts ot Vossrs. Chorn|n, |onton and losonb|att, w|th Vr. |onton sorv|ng as Cha|rman, oach ot whom moots tho
roqu|romonts tor |ndopondonco undor tho ||st|ng standards ot tho and 3EC ru|os and rogu|at|ons. Each mombor ot our componsat|on comm|ttoo |s a|so a non-
omp|oyoo d|roctor, as dot|nod pursuant to lu|o 10b-8 promu|gatod undor tho Exchango Act, or lu|o 10b-8, and an outs|do d|roctor, as dot|nod pursuant to
3oct|on 102(m) ot tho Codo, or 3oct|on 102(m). |o||ow|ng tho comp|ot|on ot th|s ottor|ng, our componsat|on comm|ttoo w|||, among othor th|ngs:



rov|ow, approvo and dotorm|no, or mako rocommondat|ons to our board ot d|roctors rogard|ng, tho componsat|on ot our oxocut|vo ott|cors,



adm|n|stor our oqu|ty componsat|on p|ans,



rov|ow and approvo and mako rocommondat|ons to our board ot d|roctors rogard|ng |ncont|vo componsat|on and oqu|ty componsat|on p|ans, and



ostab||sh and rov|ow gonora| po||c|os ro|at|ng to componsat|on and bonot|ts ot our omp|oyoos.
Our componsat|on comm|ttoo w||| oporato undor a wr|tton chartor, to bo ottoct|vo pr|or to tho comp|ot|on ot th|s ottor|ng, that sat|st|os tho app||cab|o ru|os and
rogu|at|ons ot tho 3EC and tho ||st|ng standards ot tho .
NomInatIng and Corporate Governance CommIttee
Our nom|nat|ng and govornanco comm|ttoo cons|sts ot Vossrs. Chorn|n, Curr|o and losonb|att, w|th Vr. Curr|o sorv|ng as Cha|rman, oach ot whom moots tho
roqu|romonts tor |ndopondonco undor tho ||st|ng standards ot tho and 3EC ru|os and rogu|at|ons. |o||ow|ng tho comp|ot|on ot th|s ottor|ng, our nom|nat|ng and
corporato govornanco comm|ttoo w|||, among othor th|ngs:




|dont|ty, ova|uato and so|oct, or mako rocommondat|ons to our board ot d|roctors rogard|ng, nom|noos tor o|oct|on to our board ot d|roctors and |ts
comm|ttoos,



ova|uato tho portormanco ot our board ot d|roctors and ot |nd|v|dua| d|roctors,

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cons|dor and mako rocommondat|ons to our board ot d|roctors rogard|ng tho compos|t|on ot our board ot d|roctors and |ts comm|ttoos,



rov|ow dovo|opmonts |n corporato govornanco pract|cos,



ova|uato tho adoquacy ot our corporato govornanco pract|cos and roport|ng, and



dovo|op and mako rocommondat|ons to our board ot d|roctors rogard|ng corporato govornanco gu|do||nos and mattors.
Our nom|nat|ng and corporato govornanco comm|ttoo w||| oporato undor a wr|tton chartor, to bo ottoct|vo pr|or to tho comp|ot|on ot th|s ottor|ng, that sat|st|os tho
app||cab|o ||st|ng standards ot tho .
Comonaation Committoo |ntorIocka and |naidor Particiation
lono ot tho mombors ot our componsat|on comm|ttoo |s or has boon an ott|cor or omp|oyoo ot our company. lono ot our oxocut|vo ott|cors curront|y sorvos, or
|n tho past yoar has sorvod, as a mombor ot tho board ot d|roctors or componsat|on comm|ttoo (or othor board comm|ttoo portorm|ng oqu|va|ont tunct|ons) ot any ont|ty
that has ono or moro ot |ts oxocut|vo ott|cors sorv|ng on our board ot d|roctors or componsat|on comm|ttoo. |rom 0ocombor 2010 through 1anuary 2011, wo so|d an
aggrogato ot 1,102,b44 sharos ot our 3or|os | convort|b|o protorrod stock to 3onchmark Cap|ta| lartnors vl, l.l. at a purchaso pr|co ot approx|mato|y $7.08 por sharo,
tor an aggrogato purchaso pr|co ot $0,104,110. Vr. |onton |s a Gonora| lartnor ot 3onchmark Cap|ta|. 1ho sa|o ot our 3or|os | convort|b|o protorrod stock to 3onchmark
Cap|ta| lartnors vl, l.l. was mado |n connoct|on w|th our 3or|os | convort|b|o protorrod stock t|nanc|ng and on substant|a||y tho samo torms and cond|t|ons as a|| othor
sa|os ot our 3or|os | convort|b|o protorrod stock by us.
Non-EmIoyoo Diroctor Comonaation
Our non-omp|oyoo d|roctors do not curront|y roco|vo, and d|d not roco|vo |n 2012, any cash componsat|on tor tho|r sorv|co on our board ot d|roctors and
comm|ttoos ot our board ot d|roctors. As ot 0ocombor 81, 2012, Vossrs. Curr|o and losonb|att woro tho on|y non-omp|oyoo d|roctors who ho|d unvostod sharos ot our
common stock that wou|d havo acco|oratod |t tho|r sorv|cos had boon torm|natod |n connoct|on w|th a chango |n contro|.
1ho to||ow|ng tab|o prov|dos |ntormat|on rogard|ng tho tota| componsat|on that was grantod to oach ot our d|roctors who was not sorv|ng as an oxocut|vo ott|cor |n
2012.

Namo 5tock Awarda 1otaI
1ack 0orsoy - -
lotor Chorn|n $ 8,080,000 $ 8,080,000
lotor Curr|o - -
lotor |onton - -
0av|d losonb|att - -
Evan W||||ams - -

1ho amountsroportod roprosont tho aggrogato grant-dato ta|r va|uo ot tho l3Usawardod to tho d|roctor |n 2012, ca|cu|atod |n accordanco w|th A3C1op|c 718. 3uch grant-dato ta|r va|uo doosnot
tako |nto account any ost|matod torto|turosro|atod to sorv|co-vost|ng cond|t|ons. 1ho assumpt|onsusod |n ca|cu|at|ng tho grant-dato ta|r va|uo ot tho l3Usroportod |n th|sco|umn aro sot torth |n
Vanagomont's0|scuss|on and Ana|ys|sot ||nanc|a| Cond|t|on and losu|tsot Oporat|ons-Cr|t|ca| Account|ng lo||c|osand Est|matos-3tock-3asod Componsat|on.'
Asot 0ocombor 81, 2012, Vr. 0orsoy had ono opt|on to purchaso a tota| ot 2,000,000 sharosot our common stock. 2b% ot tho sharosot our common stocksubjoct to th|sopt|on vostod on Vay 0,
2012, and tho ba|anco vosts|n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through oach such dato. 701,000 ot tho sharosot our common stocksubjoct to th|sopt|on woro
vostod asot 0ocombor 81, 2012.

124
(1)
(2)
(8)
(4)
(b)
(1)
(2)
1abIo ot Contonta
Asot 0ocombor 81, 2012, Vr. Chorn|n had 200,000 l3Us. 1ho l3Usvost upon tho sat|stact|on ot a sorv|co cond|t|on and a portormanco cond|t|on. 1ho sorv|co cond|t|on w||| bo sat|st|od asto 2b% ot
tho sharosundor|y|ng tho l3Usupon comp|ot|on ot ono yoar ot sorv|co moasurod trom tho vost|ng commoncomont dato, subjoct to cont|nuod sorv|co through such dato. 1horoattor, but pr|or to
sat|stact|on ot tho portormanco cond|t|on, an add|t|ona| 1/48th ot tho tota| numbor ot sharosundor|y|ng tho l3Usvosts|n month|y |nsta||monts, subjoct to cont|nuod sorv|co through oach such vost|ng
dato. Attor sat|stact|on ot tho portormanco cond|t|on, an add|t|ona| 8/48th ot tho tota| numbor ot sharosundor|y|ng tho l3Usw||| vost |n quartor|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato. 1ho portormanco cond|t|on w||| bo sat|st|od on tho oar||or ot (|) tho dato that |stho oar||or ot (x) s|x monthsattor tho ottoct|vo dato ot th|sottor|ng or (y) Varch 8th ot tho
ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|sottor|ng (wh|ch wo may o|oct to acco|orato to |obruary 1bth), and (||) a chango |n contro|. 1ho sorv|co cond|t|on wassat|st|od asto nono ot tho sharos
ot our common stockundor|y|ng tho l3Usasot 0ocombor 81, 2012. ln 1u|y 2018, Vr. Chorn|n transtorrod a|| ot h|sr|ghts, t|t|o and |ntorost w|th rospoct to tho l3Usto 1ho Chorn|n Group, llC.
Asot 0ocombor 81, 2012, Vr. Curr|o had ono opt|on to purchaso a tota| ot 400,000 sharosot our common stock. 2b% ot tho sharosot our common stocksubjoct to th|sopt|on vostod on lovombor 18,
2011, and tho ba|anco vosts|n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through oach such dato. 208,888 ot tho sharosot our common stocksubjoct to th|sopt|on woro
vostod asot 0ocombor 81, 2012.
Asot 0ocombor 81, 2012, Vr. losonb|att had ono opt|on to purchaso a tota| ot 400,000 sharosot our common stock. 2b% ot tho sharosot our common stocksubjoct to th|sopt|on vostod on 0ocombor
21, 2011, and tho ba|anco vosts|n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through oach such dato. 200,000 ot tho sharosot our common stocksubjoct to th|sopt|on
woro vostod asot 0ocombor 81, 2012.
0|roctors who aro a|so our omp|oyoos roco|vo no add|t|ona| componsat|on tor tho|r sorv|co as d|roctors. 0ur|ng 2012, Vr. Costo|o was an omp|oyoo. 3oo tho
soct|on t|t|od Exocut|vo Componsat|on' tor add|t|ona| |ntormat|on about h|s componsat|on. ln add|t|on, Vr. 0orsoy was our Exocut|vo Cha|rman |n 1anuary 2012.
Vr. 0orsoy d|d not roco|vo |n 2012 any add|t|ona| componsat|on tor h|s sorv|co as Exocut|vo Cha|rman.
|o||ow|ng tho comp|ot|on ot th|s ottor|ng, wo |ntond to |mp|omont a torma| po||cy pursuant to wh|ch our non-omp|oyoo d|roctors wou|d bo o||g|b|o to roco|vo
oqu|ty awards and annua| cash rota|nors as componsat|on tor sorv|co on our board ot d|roctors and comm|ttoos ot our board ot d|roctors.

12b
(8)
(4)
(b)
1abIo ot Contonta
EXECu1|VE CONPEN5A1|ON
5ummary Comonaation 1abIo
1ho to||ow|ng tab|o prov|dos |ntormat|on rogard|ng tho tota| componsat|on tor sorv|cos rondorod |n a|| capac|t|os that was oarnod by oach |nd|v|dua| who sorvod
as our pr|nc|pa| oxocut|vo ott|cor at any t|mo |n 2012, and our two othor most h|gh|y componsatod oxocut|vo ott|cors who woro sorv|ng as oxocut|vo ott|cors as ot
0ocombor 81, 2012. 1hoso |nd|v|dua|s woro our namod oxocut|vo ott|cors tor 2012.

Namo and
PrinciaI
Poaition Yoar
5aIary
($)
Bonua
($)
5tock
Awarda
($)
Otion
Awarda
($)
Non-Equity
|ncontivo PIan
Comonaation
($)
Non-OuaIitiod
Dotorrod
Comonaation
Earninga ($)
AII Othor
Comonaation
($)
1otaI
($)
l|chard Costo|o
Cblo Exocotlvo Olcor 2012 200,000 - 8,401,0b7 2,008,788 - - - 11,b0b,740
Adam 3a|n
Proslooot o O|obo| Rovoooo 2012 200,000 - 4,70b,102 1,018,82b 200,000 - - 0,718,427
Chr|stophor |ry
5oolor Vlco Proslooot o Eoglooorlog 2012 14b,b18 100,000 10,004,000 - - - - 10,880,b18

1ho amountsroportod roprosont tho aggrogato grant-dato ta|r va|uo ot tho stockopt|onsand l3Usawardod to tho namod oxocut|vo ott|cor |n 2012, ca|cu|atod |n accordanco w|th A3C1op|c 718.
3uch grant-dato ta|r va|uo doosnot tako |nto account any ost|matod torto|turosro|atod to sorv|co-vost|ng cond|t|ons. 1ho assumpt|onsusod |n ca|cu|at|ng tho grant-dato ta|r va|uo ot tho l3Usroportod
|n th|sco|umn aro sot torth |n tho soct|on t|t|od Vanagomont's0|scuss|on and Ana|ys|sot ||nanc|a| Cond|t|on and losu|tsot Oporat|ons-Cr|t|ca| Account|ng lo||c|osand Est|matos-3tock-3asod
Componsat|on.'
1ho amountsroportod roprosont tho tota| portormanco-basod comm|ss|onsoarnod and payab|o undor our sa|oscomm|ss|on arrangomont ostab||shod tor Vr. 3a|n.
Vr. Costo|o'sannua| sa|ary wasroducod to $14,000, ottoct|vo August 2018.
Non-Equity |ncontivo PIan Awarda
Adam 3a|n, our lros|dont ot G|oba| lovonuo, was o||g|b|o to part|c|pato |n a sa|os comm|ss|on arrangomont prov|d|ng tor tho opportun|ty to roco|vo |ncont|vo
componsat|on basod on tho ach|ovomont ot spoc|t|od rovonuo targots throughout tho yoar. |or 2012, h|s targot |ncont|vo componsat|on was oqua| to $200,000. 1ho
amounts oarnod undor h|s |ncont|vo componsat|on opportun|ty woro ca|cu|atod by mu|t|p|y|ng tho app||cab|o comm|ss|on rato by tho quartor|y rovonuo actua||y ach|ovod.
1ho tota| amount ot comm|ss|ons pa|d to Vr. 3a|n undor h|s 2012 sa|os comm|ss|on arrangomont |s sot torth undor tho lon-Equ|ty lncont|vo l|an Componsat|on'
co|umn ot tho 3ummary Componsat|on 1ab|o.
Ponaion Bonotita and NonquaIitiod Dotorrod Comonaation
Wo do not prov|do a pons|on p|an tor our omp|oyoos, and nono ot our namod oxocut|vo ott|cors part|c|patod |n a nonqua||t|od dotorrod componsat|on p|an |n
2012.

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Outatanding Equity Awarda at 2012 Yoar-End
1ho to||ow|ng tab|o sots torth |ntormat|on rogard|ng outstand|ng stock opt|ons and stock awards ho|d by our namod oxocut|vo ott|cors as ot 0ocombor 81, 2012:

Otion Awarda 5tock Awarda
Namo Crant Dato
Numbor ot
5ocuritioa
undorIying
unoxorciaod
Otiona (#)
ExorciaabIo
Numbor ot
5ocuritioa
undorIying
unoxorciaod
Otiona (#)
unoxorciaabIo
Otion
Exorciao Prico
($)
Otion
Exiration
Dato
Numbor ot
5haroa or
unita ot 5tock
1hat Eavo Not
Voatod (#)
Narkot VaIuo
ot 5haroa or
unita ot 5tock
1hat Eavo Not
Voatod ($)
l|chard Costo|o 0/4/2000 2,808,404 1,222,b72 0.48 0/8/2010 - -
11/28/2010 2,140,772 1,000,b12 1.88 11/22/2020 - -
4/12/2012 - 888,440 14.42 4/11/2022 - -
4/12/2012 - - - - b82,000
Adam 3a|n 0/24/2010 1,488,081 1,1b7,82b 0.8b 0/28/2020 - -
11/28/2010 208,882 101,008 1.88 11/22/2020 - -
4/12/2012 - 217,b20 14.42 4/11/2022 - -
4/12/2012 - - - - 820,200
Chr|stophor |ry b/11/2012 - - - - 000,000
7/10/2012 - - - - 100,000

Asturthor doscr|bod |n tho tootnotosbo|ow, tho sharosot our common stockundor|y|ng tho l3Usw||| vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a portormanco cond|t|on. 1ho
portormanco cond|t|on w||| bo sat|st|od on tho oar||or ot (|) tho dato that |stho oar||or ot (x) s|x monthsattor tho ottoct|vo dato ot th|sottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho
ottoct|vo dato ot th|sottor|ng (wh|ch wo may o|oct to acco|orato to |obruary 1bth), and (||) tho dato ot a chango |n contro|.
Each ot tho outstand|ng oqu|ty awardswasgrantod pursuant to our 2007 l|an.
1h|sco|umn roprosontstho ta|r va|uo ot a sharo ot our common stockon tho dato ot grant, asdotorm|nod by our board ot d|roctors.
1ho markot pr|co tor our common stock|sbasod upon tho assumod |n|t|a| pub||c ottor|ng pr|co ot $ por sharo, wh|ch |stho m|dpo|nt ot tho ost|matod ottor|ng pr|co rango sot torth on tho covor
pago ot th|sprospoctus.
2b% ot tho sharosot our common stocksubjoct to th|sopt|on vostod on 3optombor 1, 2010, and tho ba|anco vosts|n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato. ln 0ocombor 2012, Vr. Costo|o transtorrod a|| ot h|sr|ghts, t|t|o and |ntorost w|th rospoct to 278,000 vostod sharosot our common stockor|g|na||y subjoct to th|sopt|on to h|s
spouso, who subsoquont|y transtorrod a|| ot hor r|ghts, t|t|o and |ntorost w|th rospoct to such sharosto tho lor|n Costo|o 2012 G|tt 1rust, tor wh|ch 1ho lorthorn 1rust Company sorvosastrustoo.
2b% ot tho sharosot our common stocksubjoct to th|sopt|on vostod on lovombor 22, 2011, and tho ba|anco vosts|n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato.
0.2b% ot tho sharosot our common stocksubjoct to th|sopt|on w||| vost on oach ot 1u|y 1, 2014, Octobor 1, 2014, 1anuary 1, 201b and Apr|| 1, 201b, and 18.7b% ot tho sharosot our common
subjoct to th|sopt|on vostson oach ot 1u|y 1, 201b, Octobor 1, 201b, 1anuary 1, 2010 and Apr|| 1, 2010, subjoct to cont|nuod sorv|co through oach such vost|ng dato.
0.2b% ot tho sharosot our common stockundor|y|ng tho l3Usw||| vost on oach ot 1u|y 1, 2014, Octobor 1, 2014, 1anuary 1, 201b and Apr|| 1, 201b, and 18.7b% ot tho sharosot our common stock
undor|y|ng tho l3Usvostson oach ot 1u|y 1, 201b, Octobor 1, 201b, 1anuary 1, 2010 and Apr|| 1, 2010, subjoct to cont|nuod sorv|co through oach such vost|ng dato.
2b% ot tho sharosot our common stocksubjoct to th|sopt|on vostod on 3optombor 7, 2011, and tho ba|anco vosts|n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato.
12.b% ot tho sharosot our common stocksubjoct to th|sopt|on w||| vost on 1u|y 1, 2014, and tho ba|anco vosts|n sovon succoss|vo oqua| quartor|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato.
12.b% ot tho sharosot our common stockundor|y|ng tho l3Usw||| vost on 1u|y 1, 2014, and tho ba|anco vosts|n sovon succoss|vo oqua| quartor|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato.
1ho sorv|co cond|t|on wassat|st|od asto 2b% ot tho tota| numbor ot sharosot our common stockundor|y|ng tho l3Uson Vay 1, 2018. 1horoattor, but pr|or to sat|stact|on ot tho portormanco
cond|t|on, an add|t|ona| 1/48th ot tho tota| numbor ot sharosot our common stockundor|y|ng tho l3Usvosts|n month|y |nsta||monts, subjoct to cont|nuod sorv|co through oach vost|ng dato. Attor
sat|stact|on ot tho portormanco cond|t|on, an add|t|ona| 8/48th ot tho tota| numbor ot sharosot our common stockundor|y|ng tho l3Usw||| vost |n quartor|y |nsta||monts, subjoct to cont|nuod sorv|co
through oach such vost|ng dato.
1ho sorv|co cond|t|on wassat|st|od asto 2b% ot tho tota| numbor ot sharosot our common stockundor|y|ng tho l3Uson 1u|y 1, 2018. 1horoattor, but pr|or to sat|stact|on ot tho portormanco
cond|t|on, an add|t|ona| 1/48th ot tho tota| numbor ot sharosot our common stockundor|y|ng tho l3Usvosts|n month|y |nsta||monts, subjoct to cont|nuod sorv|co through oach such vost|ng dato.
Attor sat|stact|on ot tho portormanco cond|t|on, an add|t|ona| 8/48th ot tho tota| numbor ot sharosot our common stockundor|y|ng tho l3Usw||| vost |n quartor|y |nsta||monts, subjoct to cont|nuod
sorv|co through oach such vost|ng dato.

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1abIo ot Contonta
PotontiaI Paymonta uon 1ormination or Chango ot ControI
ln August 2018, wo adoptod a chango ot contro| sovoranco po||cy app||cab|o to our oxocut|vo ott|cors and corta|n othor koy omp|oyoos that suporsodod a||
prov|ous sovoranco and chango ot contro| arrangomonts wo had ontorod |nto w|th thoso o||g|b|o omp|oyoos pr|or to tho po||cy bocom|ng ottoct|vo. Undor th|s po||cy, |t any
o||g|b|o omp|oyoo |s |nvo|untar||y torm|natod tor any roason othor than causo, doath or d|sab|||ty on or w|th|n 12 months to||ow|ng a chango ot contro|, such omp|oyoo
wou|d bo ont|t|od to roco|vo sovoranco bonot|ts as oxc|us|vo|y prov|dod tor undor th|s po||cy. Upon tho occurronco ot such an ovont, an o||g|b|o omp|oyoo wou|d bo
ont|t|od to tho to||ow|ng |t such omp|oyoo t|mo|y s|gns and doos not rovoko a ro|oaso ot c|a|ms: (|) a |ump sum sovoranco paymont oqua| to 100% ot such omp|oyoo's
annua| baso sa|ary, (||) paymont tor up to 12 months ot CO3lA prom|ums to cont|nuo hoa|th |nsuranco covorago tor h|m and h|s o||g|b|o dopondonts that woro covorod
undor our hoa|thcaro p|an or, |n tho ovont paymont tor CO3lA prom|ums wou|d v|o|ato app||cab|o |aw, a taxab|o |ump sum paymont tor an amount oqua| to tho CO3lA
prom|ums wo wou|d havo pa|d dur|ng tho oqu|va|ont por|od and (|||) tho acco|orat|on ot vost|ng ot b0% (100% |n tho caso ot our CEO and C|O) ot tho sharos undor|y|ng
a|| unvostod oqu|ty awards ho|d by such omp|oyoo |mmod|ato|y pr|or to such torm|nat|on. ln add|t|on, |n tho ovont any ot tho amounts prov|dod tor undor th|s po||cy or
othorw|so payab|o to an o||g|b|o omp|oyoo wou|d const|tuto a parachuto paymont' w|th|n tho moan|ng ot 3oct|on 280G ot tho Codo and cou|d bo subjoct to tho ro|atod
oxc|so tax, tho o||g|b|o omp|oyoo wou|d bo ont|t|od to roco|vo o|thor tu|| paymont ot bonot|ts or such |ossor amount wh|ch wou|d rosu|t |n no port|on ot tho bonot|ts bo|ng
subjoct to tho oxc|so tax, wh|chovor rosu|ts |n tho groator amount ot attor-tax bonot|ts to tho o||g|b|o omp|oyoo.
EmIoyoo Bonotit and 5tock PIana
2013 EquIty lncentIve Plan
lr|or to tho comp|ot|on ot th|s ottor|ng, our board ot d|roctors w||| adopt, and our stockho|dors w||| approvo, our 2018 l|an. Wo oxpoct that our 2018 l|an w||| bo
ottoct|vo on tho bus|noss day |mmod|ato|y pr|or to tho ottoct|vo dato ot tho rog|strat|on statomont ot wh|ch th|s prospoctus torms a part. Our 2018 l|an w||| prov|do tor tho
grant ot |ncont|vo stock opt|ons, w|th|n tho moan|ng ot 3oct|on 422 ot tho Codo, to our omp|oyoos and any paront and subs|d|ary corporat|ons' omp|oyoos, and tor tho
grant ot nonstatutory stock opt|ons, rostr|ctod stock, l3Us, stock approc|at|on r|ghts, portormanco un|ts and portormanco sharos to our omp|oyoos, d|roctors and
consu|tants and our paront and subs|d|ary corporat|ons' omp|oyoos and consu|tants.
Aotborlzoo 5boros. A tota| ot sharos ot our common stock w||| bo rosorvod tor |ssuanco pursuant to our 2018 l|an. ln add|t|on, tho sharos rosorvod
tor |ssuanco undor our 2018 l|an a|so w||| |nc|udo (a) thoso sharos rosorvod but un|ssuod undor our 2007 l|an as ot tho ottoct|vo dato doscr|bod abovo and (b) sharos
roturnod to our 2007 l|an as tho rosu|t ot oxp|rat|on or torm|nat|on ot awards or sharos prov|ous|y |ssuod pursuant to our 2007 l|an that aro torto|tod or ropurchasod by
us (prov|dod that tho max|mum numbor ot sharos that may bo addod to our 2007 l|an pursuant to (a) and (b) |s sharos). 1ho numbor ot sharos ava||ab|o tor
|ssuanco undor our 2018 l|an w||| a|so |nc|udo an annua| |ncroaso on tho t|rst day ot oach t|sca| yoar bog|nn|ng on 1anuary 1, 2014, oqua| to tho |oast ot:



sharos,



% ot tho outstand|ng sharos ot our common stock as ot tho |ast day ot tho |mmod|ato|y procod|ng t|sca| yoar, or



such othor amount as our board ot d|roctors may dotorm|no.
P|oo Aomlolstrotloo. Our board ot d|roctors or ono or moro comm|ttoos appo|ntod by our board ot d|roctors w||| adm|n|stor our 2018 l|an. ln tho caso ot awards
|ntondod to qua||ty as ''portormanco-basod

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1abIo ot Contonta
componsat|on'' w|th|n tho moan|ng ot 3oct|on 102(m), tho comm|ttoo w||| cons|st ot two or moro ''outs|do d|roctors'' w|th|n tho moan|ng ot 3oct|on 102(m). ln add|t|on, |t
wo dotorm|no |t |s dos|rab|o to qua||ty transact|ons undor our 2018 l|an as oxompt undor lu|o 10b-8, such transact|ons w||| bo structurod to sat|sty tho roqu|romonts tor
oxompt|on undor lu|o 10b-8. 3ubjoct to tho prov|s|ons ot our 2018 l|an, tho adm|n|strator has tho powor to adm|n|stor our 2018 l|an, |nc|ud|ng but not ||m|tod to, tho
powor to |ntorprot tho torms ot our 2018 l|an and awards grantod undor |t, to croato, amond and rovoko ru|os ro|at|ng to our 2018 l|an, |nc|ud|ng croat|ng sub-p|ans, and
to dotorm|no tho torms ot tho awards, |nc|ud|ng tho oxorc|so pr|co, tho numbor ot sharos subjoct to oach such award, tho oxorc|sab|||ty ot tho awards and tho torm ot
cons|dorat|on, |t any, payab|o upon oxorc|so. 1ho adm|n|strator a|so has tho author|ty to amond ox|st|ng awards to roduco or |ncroaso tho|r oxorc|so pr|cos, to a||ow
part|c|pants tho opportun|ty to transtor outstand|ng awards to a t|nanc|a| |nst|tut|on or othor porson or ont|ty so|octod by tho adm|n|strator and to |nst|tuto an oxchango
program by wh|ch outstand|ng awards may bo surrondorod |n oxchango tor awards ot tho samo typo wh|ch may havo a h|ghor or |owor oxorc|so pr|co or d|ttoront torms,
awards ot a d|ttoront typo and/or cash.
5tock Optloos. 3tock opt|ons may bo grantod undor our 2018 l|an. 1ho oxorc|so pr|co ot opt|ons grantod undor our 2018 l|an must at |oast bo oqua| to tho
ta|r markot va|uo ot our common stock on tho dato ot grant. 1ho torm ot an |ncont|vo stock opt|on may not oxcood ton yoars, oxcopt that w|th rospoct to any part|c|pant
who owns moro than 10% ot tho vot|ng powor ot a|| c|assos ot our outstand|ng stock, tho torm must not oxcood t|vo yoars and tho oxorc|so pr|co must oqua| at |oast
110% ot tho ta|r markot va|uo on tho grant dato. |or nonstatutory stock opt|ons tho oxorc|so pr|co must oqua| at |oast 100% ot tho ta|r markot va|uo. 1ho adm|n|strator
w||| dotorm|no tho mothods ot paymont ot tho oxorc|so pr|co ot an opt|on, wh|ch may |nc|udo cash, sharos or othor proporty accoptab|o to tho adm|n|strator, as wo|| as
othor typos ot cons|dorat|on porm|ttod by app||cab|o |aw. Attor tho torm|nat|on ot sorv|co ot an omp|oyoo, d|roctor or consu|tant, ho or sho may oxorc|so h|s or hor opt|on
tor tho por|od ot t|mo statod |n h|s or hor opt|on agroomont. Gonora||y, |t torm|nat|on |s duo to doath or d|sab|||ty, tho opt|on w||| roma|n oxorc|sab|o tor 12 months. ln a||
othor casos, tho opt|on gonora||y w||| roma|n oxorc|sab|o tor throo months to||ow|ng tho torm|nat|on ot sorv|co. An opt|on may not bo oxorc|sod |ator than tho oxp|rat|on ot
|ts torm. |owovor, |t tho oxorc|so ot an opt|on |s provontod by app||cab|o |aw tho oxorc|so por|od may bo oxtondod undor corta|n c|rcumstancos. 3ubjoct to tho
prov|s|ons ot our 2018 l|an, tho adm|n|strator dotorm|nos tho othor torms ot opt|ons.
5tock Approclotloo Rlgbts. 3tock approc|at|on r|ghts may bo grantod undor our 2018 l|an. 3tock approc|at|on r|ghts a||ow tho roc|p|ont to roco|vo tho
approc|at|on |n tho ta|r markot va|uo ot our common stock botwoon tho oxorc|so dato and tho dato ot grant. 3tock approc|at|on r|ghts may not havo a torm oxcood|ng ton
yoars. Attor tho torm|nat|on ot sorv|co ot an omp|oyoo, d|roctor or consu|tant, ho or sho may oxorc|so h|s or hor stock approc|at|on r|ght tor tho por|od ot t|mo statod |n
h|s or hor stock approc|at|on r|ghts agroomont. |owovor, |n no ovont may a stock approc|at|on r|ght bo oxorc|sod |ator than tho oxp|rat|on ot |ts torm. 3ubjoct to tho
prov|s|ons ot our 2018 l|an, tho adm|n|strator dotorm|nos tho othor torms ot stock approc|at|on r|ghts, |nc|ud|ng whon such r|ghts bocomo oxorc|sab|o and whothor to
pay any |ncroasod approc|at|on |n cash or w|th sharos ot our common stock, or a comb|nat|on thoroot, oxcopt that tho por sharo oxorc|so pr|co tor tho sharos to bo
|ssuod pursuant to tho oxorc|so ot a stock approc|at|on r|ght w||| bo no |oss than 100% ot tho ta|r markot va|uo por sharo on tho dato ot grant.
Rostrlctoo 5tock. lostr|ctod stock may bo grantod undor our 2018 l|an. lostr|ctod stock awards aro grants ot sharos ot our common stock that vost |n
accordanco w|th torms and cond|t|ons ostab||shod by tho adm|n|strator. 1ho adm|n|strator w||| dotorm|no tho numbor ot sharos ot rostr|ctod stock grantod to any
omp|oyoo, d|roctor or consu|tant and, subjoct to tho prov|s|ons ot our 2018 l|an, w||| dotorm|no tho torms and cond|t|ons ot such awards. 1ho adm|n|strator may |mposo
whatovor cond|t|ons to vost|ng |t dotorm|nos to bo appropr|ato (tor oxamp|o, tho adm|n|strator may sot rostr|ct|ons basod on tho ach|ovomont ot spoc|t|c portormanco
goa|s or cont|nuod sorv|co to us), prov|dod, howovor, that tho

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adm|n|strator, |n |ts so|o d|scrot|on, may acco|orato tho t|mo at wh|ch any rostr|ct|ons w||| |apso or bo romovod. loc|p|onts ot rostr|ctod stock awards gonora||y w||| havo
vot|ng and d|v|dond r|ghts w|th rospoct to such sharos upon grant w|thout rogard to vost|ng, un|oss tho adm|n|strator prov|dos othorw|so. 3haros ot rostr|ctod stock that
do not vost aro subjoct to our r|ght ot ropurchaso or torto|turo.
R5Us. l3Us may bo grantod undor our 2018 l|an. l3Us aro bookkoop|ng ontr|os roprosont|ng an amount oqua| to tho ta|r markot va|uo ot ono sharo ot our
common stock. 3ubjoct to tho prov|s|ons ot our 2018 l|an, tho adm|n|strator dotorm|nos tho torms and cond|t|ons ot l3Us, |nc|ud|ng tho vost|ng cr|tor|a (wh|ch may
|nc|udo accomp||sh|ng spoc|t|od portormanco cr|tor|a or cont|nuod sorv|co to us) and tho torm and t|m|ng ot paymont. lotw|thstand|ng tho torogo|ng, tho adm|n|strator, |n
|ts so|o d|scrot|on, may acco|orato tho t|mo at wh|ch any rostr|ct|ons w||| |apso or bo romovod.
Porormooco Uolts ooo Porormooco 5boros. lortormanco un|ts and portormanco sharos may bo grantod undor our 2018 l|an. lortormanco un|ts and
portormanco sharos aro awards that w||| rosu|t |n a paymont to a part|c|pant on|y |t portormanco goa|s ostab||shod by tho adm|n|strator aro ach|ovod or tho awards
othorw|so vost. 1ho adm|n|strator w||| ostab||sh organ|zat|ona| or |nd|v|dua| portormanco goa|s or othor vost|ng cr|tor|a |n |ts d|scrot|on, wh|ch, dopond|ng on tho oxtont to
wh|ch thoy aro mot, w||| dotorm|no tho numbor and/or tho va|uo ot portormanco un|ts and portormanco sharos to bo pa|d out to part|c|pants. Attor tho grant ot a
portormanco un|t or portormanco sharo, tho adm|n|strator, |n |ts so|o d|scrot|on, may roduco or wa|vo any portormanco cr|tor|a or othor vost|ng prov|s|ons tor such
portormanco un|ts or portormanco sharos. lortormanco un|ts sha|| havo an |n|t|a| do||ar va|uo ostab||shod by tho adm|n|strator on or pr|or to tho grant dato. lortormanco
sharos sha|| havo an |n|t|a| va|uo oqua| to tho ta|r markot va|uo ot our common stock on tho grant dato. 1ho adm|n|strator, |n |ts so|o d|scrot|on, may pay oarnod
portormanco un|ts or portormanco sharos |n tho torm ot cash, |n sharos or |n somo comb|nat|on thoroot.
Ootsloo Llroctors. Our 2018 l|an w||| prov|do that a|| outs|do d|roctors w||| bo o||g|b|o to roco|vo a|| typos ot awards (oxcopt tor |ncont|vo stock opt|ons) undor
our 2018 l|an. ln connoct|on w|th th|s ottor|ng, wo |ntond to |mp|omont a torma| po||cy pursuant to wh|ch our outs|do d|roctors w||| bo o||g|b|o to roco|vo oqu|ty awards
undor our 2018 l|an. Our 2018 l|an w||| prov|do that |n any g|von yoar, an outs|do d|roctor w||| not roco|vo (|) cash-sott|od awards hav|ng a grant-dato ta|r va|uo groator
than $ , |ncroasod to $ |n connoct|on w|th h|s or hor |n|t|a| sorv|co, and (||) stock-sott|od awards hav|ng a grant-dato ta|r va|uo groator than $ , |ncroasod to
$ |n connoct|on w|th h|s or hor |n|t|a| sorv|co, |n oach caso, as dotorm|nod undor GAAl.
Noo-7roosorobl|lty o Aworos. Un|oss tho adm|n|strator prov|dos othorw|so, our 2018 l|an gonora||y w||| not a||ow tor tho transtor ot awards and on|y tho
roc|p|ont ot an award may oxorc|so an award dur|ng h|s or hor ||tot|mo.
Cortolo Aojostmoots. ln tho ovont ot corta|n changos |n our cap|ta||zat|on, to provont d|m|nut|on or on|argomont ot tho bonot|ts or potont|a| bonot|ts ava||ab|o
undor our 2018 l|an, tho adm|n|strator w||| adjust tho numbor and c|ass ot sharos that may bo do||vorod undor our 2018 l|an and/or tho numbor, c|ass and pr|co ot
sharos covorod by oach outstand|ng award, and tho numor|ca| sharo ||m|ts sot torth |n our 2018 l|an. ln tho ovont ot our proposod ||qu|dat|on or d|sso|ut|on, tho
adm|n|strator w||| not|ty part|c|pants as soon as pract|cab|o and a|| awards w||| torm|nato |mmod|ato|y pr|or to tho consummat|on ot such proposod transact|on.
Vorgor or Cboogo lo Cootro|. Our 2018 l|an w||| prov|do that |n tho ovont ot a morgor or chango |n contro|, as dot|nod undor our 2018 l|an, oach outstand|ng
award w||| bo troatod as tho adm|n|strator dotorm|nos, oxcopt that |t a succossor corporat|on or |ts paront or subs|d|ary doos not assumo or subst|tuto an oqu|va|ont
award tor any outstand|ng award, thon such award w||| tu||y vost, a|| rostr|ct|ons on such award w||| |apso, a|| portormanco goa|s or othor vost|ng cr|tor|a app||cab|o to
such

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award w||| bo doomod ach|ovod at 100% ot targot |ovo|s and such award w||| bocomo tu||y oxorc|sab|o, |t app||cab|o, tor a spoc|t|od por|od pr|or to tho transact|on. 1ho
award w||| thon torm|nato upon tho oxp|rat|on ot tho spoc|t|od por|od ot t|mo. lt tho sorv|co ot an outs|do d|roctor |s torm|natod on or to||ow|ng a chango |n contro|, othor
than pursuant to a vo|untary ros|gnat|on, h|s or hor opt|ons, l3Us and stock approc|at|on r|ghts, |t any, w||| vost tu||y and bocomo |mmod|ato|y oxorc|sab|o, a||
rostr|ct|ons on h|s or hor rostr|ctod stock w||| |apso and a|| portormanco goa|s or othor vost|ng roqu|romonts tor h|s or hor portormanco sharos and un|ts w||| bo doomod
ach|ovod at 100% ot targot |ovo|s, and a|| othor torms and cond|t|ons mot.
Amooomoot, 7ormlootloo. 1ho adm|n|strator w||| havo tho author|ty to amond, suspond or torm|nato our 2018 l|an prov|dod such act|on doos not |mpa|r tho
ox|st|ng r|ghts ot any part|c|pant. Our 2018 l|an automat|ca||y w||| torm|nato |n 2028, un|oss wo torm|nato |t soonor.
2013 Employee 8tock Purchase Plan
lr|or to tho comp|ot|on ot th|s ottor|ng, our board ot d|roctors w||| adopt, and our stockho|dors w||| approvo, our E3ll. Wo oxpoct that our E3ll w||| bo ottoct|vo
on tho ottoct|vo dato ot tho rog|strat|on statomont ot wh|ch th|s prospoctus torms a part. Wo bo||ovo that a||ow|ng our omp|oyoos to part|c|pato |n our E3ll prov|dos
thom w|th a turthor |ncont|vo towards onsur|ng our succoss and accomp||sh|ng our corporato goa|s.
Aotborlzoo 5boros. A tota| ot sharos ot our common stock w||| bo mado ava||ab|o tor sa|o undor our E3ll. 1ho numbor ot sharos ot our common
stock mado ava||ab|o tor sa|o undor our E3ll w||| a|so |nc|udo an annua| |ncroaso on tho t|rst day ot oach t|sca| yoar bog|nn|ng on 1anuary 1, 2014, oqua| to tho |oast
ot:



sharos,



% ot tho outstand|ng sharos ot our common stock as ot tho |ast day ot tho |mmod|ato|y procod|ng t|sca| yoar, or



such othor amount as our board ot d|roctors may dotorm|no.
P|oo Aomlolstrotloo. Our componsat|on comm|ttoo w||| adm|n|stor our E3ll, and havo tu|| and oxc|us|vo author|ty to |ntorprot tho torms ot our E3ll and
dotorm|no o||g|b|||ty to part|c|pato, subjoct to tho cond|t|ons ot our E3ll, as doscr|bod bo|ow.
E|lglbl|lty. Gonora||y, a|| ot our omp|oyoos w||| bo o||g|b|o to part|c|pato |t thoy aro omp|oyod by us, or any part|c|pat|ng subs|d|ary, tor at |oast 20 hours por
wook and moro than t|vo months |n any ca|ondar yoar. |owovor, an omp|oyoo may not bo grantod r|ghts to purchaso sharos ot our common stock undor our E3ll |t
such omp|oyoo:



|mmod|ato|y attor tho grant wou|d own cap|ta| stock possoss|ng b% or moro ot tho tota| comb|nod vot|ng powor or va|uo ot a|| c|assos ot our cap|ta| stock, or




ho|d r|ghts to purchaso sharos ot our common stock undor a|| ot our omp|oyoo stock purchaso p|ans that accruo at a rato that oxcoods $2b,000 worth ot
sharos ot our common stock tor oach ca|ondar yoar.
Oorlog Porloos. Our E3ll |s |ntondod to qua||ty undor 3oct|on 428 ot tho Codo, and w||| prov|do tor -month ottor|ng por|ods. 1ho ottor|ng por|ods aro
schodu|od to start on tho t|rst trad|ng day on or attor and ot oach yoar, oxcopt tor tho t|rst ottor|ng por|od, wh|ch w||| commonco on tho t|rst trad|ng day
on or attor comp|ot|on ot th|s ottor|ng and w||| ond on tho t|rst trad|ng day on or attor . Each ottor|ng por|od w||| |nc|udo purchaso por|ods, wh|ch w||| bo tho
approx|mato|y months commonc|ng w|th ono oxorc|so dato and ond|ng w|th tho noxt oxorc|so dato.

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1abIo ot Contonta
Cootrlbotloos. Our E3ll w||| porm|t part|c|pants to purchaso sharos ot our common stock through payro|| doduct|ons ot up to % ot tho|r o||g|b|o
componsat|on. A part|c|pant may purchaso a max|mum ot sharos ot our common stock dur|ng an ottor|ng por|od.
Exorclso o Porcboso Rlgbt. Amounts doductod and accumu|atod by tho part|c|pant aro usod to purchaso sharos ot our common stock at tho ond ot oach
-month purchaso por|od. 1ho purchaso pr|co ot tho sharos w||| bo 8b% ot tho |owor ot tho ta|r markot va|uo ot our common stock on tho t|rst trad|ng day ot oach
ottor|ng por|od or on tho oxorc|so dato. lt tho ta|r markot va|uo ot our common stock on tho oxorc|so dato |s |oss than tho ta|r markot va|uo on tho t|rst trad|ng day ot tho
ottor|ng por|od, part|c|pants w||| bo w|thdrawn trom tho curront ottor|ng por|od to||ow|ng tho|r purchaso ot sharos ot our common stock on tho purchaso dato and w||| bo
automat|ca||y ro-onro||od |n a now ottor|ng por|od. lart|c|pants may ond tho|r part|c|pat|on at any t|mo dur|ng an ottor|ng por|od and w||| bo pa|d tho|r accruod
contr|but|ons that havo not yot boon usod to purchaso sharos ot our common stock. lart|c|pat|on onds automat|ca||y upon torm|nat|on ot omp|oymont w|th us.
Noo-7roosorobl|lty. A part|c|pant may not transtor r|ghts grantod undor our E3ll. lt our componsat|on comm|ttoo porm|ts tho transtor ot r|ghts, |t may on|y bo
dono by w|||, tho |aws ot doscont and d|str|but|on or as othorw|so prov|dod undor our E3ll.
Vorgor or Cboogo lo Cootro|. Our E3ll w||| prov|do that |n tho ovont ot a morgor or chango |n contro|, as dot|nod undor our E3ll, a succossor corporat|on
may assumo or subst|tuto oach outstand|ng purchaso r|ght. lt tho succossor corporat|on rotusos to assumo or subst|tuto tor tho outstand|ng purchaso r|ght, tho ottor|ng
por|od thon |n progross w||| bo shortonod, and a now oxorc|so dato w||| bo sot. 1ho adm|n|strator w||| not|ty oach part|c|pant that tho oxorc|so dato has boon changod
and that tho part|c|pant's opt|on w||| bo oxorc|sod automat|ca||y on tho now oxorc|so dato un|oss pr|or to such dato tho part|c|pant has w|thdrawn trom tho ottor|ng
por|od.
Amooomoot, 7ormlootloo. 1ho adm|n|strator w||| havo tho author|ty to amond, suspond or torm|nato our E3ll, oxcopt that, subjoct to corta|n oxcopt|ons
doscr|bod |n our E3ll, no such act|on may advorso|y attoct any outstand|ng r|ghts to purchaso sharos ot our common stock undor our E3ll. Our E3ll automat|ca||y
w||| torm|nato |n 2088, un|oss wo torm|nato |t soonor.
2007 EquIty lncentIve Plan, as Amended
Our board ot d|roctors and stockho|dors adoptod our 2007 l|an |n Vay 2007. Our 2007 l|an was most rocont|y amondod |n 1anuary 2018. Our 2007 l|an
a||ows tor tho grant ot |ncont|vo stock opt|ons to our omp|oyoos and any ot our paront and subs|d|ary corporat|ons' omp|oyoos, and tor tho grant ot nonqua||t|od stock
opt|ons and rostr|ctod stock awards to omp|oyoos, ott|cors, d|roctors and consu|tants ot ours and our paront and subs|d|ary corporat|ons.
Aotborlzoo 5boros. Our 2007 l|an w||| bo torm|natod |n connoct|on w|th th|s ottor|ng, and accord|ng|y, no sharos w||| bo ava||ab|o tor |ssuanco undor tho 2007
l|an to||ow|ng tho comp|ot|on ot th|s ottor|ng. Our 2007 l|an w||| cont|nuo to govorn outstand|ng awards grantod thoroundor. As ot 1uno 80, 2018, opt|ons to purchaso
42,008,080 sharos ot our common stock roma|nod outstand|ng undor our 2007 l|an at a wo|ghtod-avorago oxorc|so pr|co ot approx|mato|y $1.88 por sharo and l3Us
covor|ng b0,018,002 sharos ot our common stock roma|nod outstand|ng undor our 2007 l|an at a wo|ghtod-avorago grant-dato ta|r va|uo ot approx|mato|y $1b.10 por
sharo.
P|oo Aomlolstrotloo. Our componsat|on comm|ttoo curront|y adm|n|stors our 2007 l|an. 3ubjoct to tho prov|s|ons ot our 2007 l|an, tho adm|n|strator has tho
powor to |ntorprot and adm|n|stor our 2007 l|an and any agroomont thoroundor and to dotorm|no tho torms ot awards (|nc|ud|ng tho roc|p|onts), tho numbor ot sharos
subjoct to oach award, tho oxorc|so pr|co (|t any), tho ta|r markot va|uo ot a sharo ot our common stock, |t such stock |s not pub||c|y-tradod, ||stod or adm|ttod to trad|ng
on a nat|ona|

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1abIo ot Contonta
socur|t|os oxchango, nor roportod |n any nowspapor or othor sourco, tho vost|ng schodu|o app||cab|o to tho awards togothor w|th any vost|ng acco|orat|on and tho torms
ot tho award agroomont tor uso undor our 2007 l|an. 1ho adm|n|strator may, at any t|mo, author|zo tho |ssuanco ot now awards |n oxchango tor tho surrondor and
canco||at|on ot any or a|| outstand|ng awards w|th tho consont ot a part|c|pant. 1ho adm|n|strator may a|so buy out an award prov|ous|y grantod tor cash, sharos or othor
cons|dorat|on as tho adm|n|strator and tho part|c|pant may agroo.
Optloos. 3tock opt|ons may bo grantod undor our 2007 l|an. 1ho oxorc|so pr|co por sharo ot a|| opt|ons must oqua| at |oast 8b% ot tho ta|r markot va|uo por
sharo ot our common stock on tho dato ot grant, and tho oxorc|so pr|co por sharo ot |ncont|vo stock opt|ons must oqua| at |oast 100% ot tho ta|r markot va|uo por sharo
ot our common stock on tho dato ot grant. 1ho torm ot an |ncont|vo stock opt|on may not oxcood ton yoars. An |ncont|vo stock opt|on grantod to a part|c|pant who owns
moro than 10% ot tho tota| comb|nod vot|ng powor ot a|| c|assos ot our stock on tho dato ot grant, or any paront or subs|d|ary corporat|ons, may not havo a torm |n
oxcoss ot t|vo yoars and must havo an oxorc|so pr|co ot at |oast 110% ot tho ta|r markot va|uo por sharo ot our common stock on tho dato ot grant. 1ho adm|n|strator w|||
dotorm|no tho mothods ot paymont ot tho oxorc|so pr|co ot an opt|on, wh|ch may |nc|udo cash, sharos or corta|n othor proporty or othor cons|dorat|on accoptab|o to tho
adm|n|strator. Attor a part|c|pant's torm|nat|on ot sorv|co, tho part|c|pant gonora||y may oxorc|so h|s or hor opt|ons, to tho oxtont vostod as ot such dato ot torm|nat|on,
tor throo months attor torm|nat|on. lt torm|nat|on |s duo to doath or d|sab|||ty, tho opt|on gonora||y w||| roma|n oxorc|sab|o, to tho oxtont vostod as ot such dato ot
torm|nat|on, unt|| tho ono-yoar ann|vorsary ot such torm|nat|on. |owovor, |n no ovont may an opt|on bo oxorc|sod |ator than tho oxp|rat|on ot |ts torm. lt torm|nat|on |s tor
causo, thon an opt|on automat|ca||y oxp|ros upon t|rst not|t|cat|on to tho part|c|pant ot such torm|nat|on or, |t |ator, such t|mo as tho cond|t|ons tor causo aro dotorm|nod
by tho adm|n|strator to havo occurrod.
Rostrlctoo 5tock. lostr|ctod stock may bo grantod undor our 2007 l|an. lostr|ctod stock awards aro grants ot sharos ot our common stock that aro subjoct
to var|ous rostr|ct|ons, |nc|ud|ng rostr|ct|ons on transtorab|||ty and torto|turo prov|s|ons. 3haros ot rostr|ctod stock w||| vost, and tho rostr|ct|ons on such sharos w||| |apso,
|n accordanco w|th torms and cond|t|ons ostab||shod by tho adm|n|strator.
R5Us. l3Us may bo grantod undor our 2007 l|an. l3Us aro bookkoop|ng ontr|os roprosont|ng an amount oqua| to tho ta|r markot va|uo ot ono sharo ot our
common stock. 1ho adm|n|strator dotorm|nos tho torms and cond|t|ons ot l3Us, |nc|ud|ng tho numbor ot un|ts grantod, tho vost|ng cr|tor|a (wh|ch may |nc|udo
accomp||sh|ng spoc|t|od portormanco cr|tor|a or cont|nuod sorv|co to us) and tho torm and t|m|ng ot paymont. lotw|thstand|ng tho torogo|ng, tho adm|n|strator, |n |ts so|o
d|scrot|on may acco|orato tho t|mo at wh|ch any rostr|ct|ons w||| |apso or bo romovod.
7roosorobl|lty or Asslgoobl|lty o Aworos. Our 2007 l|an gonora||y doos not a||ow tor tho transtor or ass|gnmont ot awards, othor than by g|tt to an |mmod|ato
tam||y mombor, and on|y tho roc|p|ont ot an award may oxorc|so such an award dur|ng h|s or hor ||tot|mo.
Cortolo Aojostmoots. ln tho ovont ot corta|n changos |n our cap|ta||zat|on, tho oxorc|so pr|cos ot and tho numbor ot sharos subjoct to outstand|ng opt|ons, and
tho purchaso pr|co ot and tho numbors ot sharos subjoct to outstand|ng awards w||| bo proport|onato|y adjustod, subjoct to any roqu|rod act|on by our board ot d|roctors
or stockho|dors.
Vorgor or Cboogo lo Cootro|. Our 2007 l|an prov|dos that, |n tho ovont ot a morgor, chango |n contro| or othor company comb|nat|on transact|on, as dot|nod
undor our 2007 l|an, oach outstand|ng award may bo assumod or subst|tutod tor an oqu|va|ont award. ln tho ovont that awards aro not assumod or subst|tutod tor, thon
tho vost|ng ot outstand|ng awards w||| bo acco|oratod, and opt|ons w||| bocomo oxorc|sab|o |n tu|| pr|or to such corporato transact|on. Opt|ons, to tho oxtont thoy roma|n
unoxorc|sod, w||| thon gonora||y torm|nato |mmod|ato|y pr|or to tho corporato transact|on.

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1abIo ot Contonta
Amooomoot, 7ormlootloo. Our board ot d|roctors may amond our 2007 l|an at any t|mo, prov|dod that such amondmont doos not |mpa|r tho r|ghts undor
outstand|ng awards w|thout tho part|c|pant's wr|tton consont. As notod abovo, upon comp|ot|on ot th|s ottor|ng, our 2007 l|an w||| bo torm|natod and no turthor awards
w||| bo grantod thoroundor. A|| outstand|ng awards w||| cont|nuo to bo govornod by tho|r ox|st|ng torms.
2011 AcquIsItIon OptIon Plan
Our board ot d|roctors and stockho|dors adoptod our 2011 Acqu|s|t|on Opt|on l|an, or our 2011 l|an, |n Vay 2011. Our 2011 l|an was adoptod tor tho purposo
ot grant|ng opt|ons to now omp|oyoos |n connoct|on w|th our acqu|s|t|on ot 1woot0ock, lnc. |n Vay 2011.
Aotborlzoo 5boros. Our 2011 l|an w||| bo torm|natod |n connoct|on w|th th|s ottor|ng, and accord|ng|y, no sharos w||| bo ava||ab|o tor |ssuanco undor tho 2011
l|an to||ow|ng tho comp|ot|on ot th|s ottor|ng. Our 2011 l|an w||| cont|nuo to govorn outstand|ng opt|ons grantod thoroundor. As ot 1uno 80, 2018, opt|ons to purchaso
12,880 sharos ot our common stock roma|nod outstand|ng undor our 2011 l|an at a wo|ghtod-avorago oxorc|so pr|co ot approx|mato|y $0.44 por sharo.
P|oo Aomlolstrotloo. Our componsat|on comm|ttoo curront|y adm|n|stors our 2011 l|an. 3ubjoct to tho prov|s|ons ot our 2011 l|an, tho adm|n|strator has tho
powor and d|scrot|on to tako any act|on |t dooms nocossary or adv|sab|o tor adm|n|strat|on ot our 2011 l|an. 1ho adm|n|strator may mod|ty, oxtond or ronow outstand|ng
opt|ons and author|zo tho grant ot now opt|ons |n subst|tut|on, prov|dod that any act|on may not, w|thout tho wr|tton consont ot a part|c|pant, |mpa|r any ot such
part|c|pant's r|ghts undor any opt|on prov|ous|y grantod. 1ho adm|n|strator may roduco tho oxorc|so pr|co ot outstand|ng opt|ons w|thout tho consont ot tho part|c|pant by
prov|d|ng wr|tton not|co. 1ho adm|n|strator may a|so, w|th tho consont ot tho part|c|pant, |ssuo now opt|ons |n oxchango tor tho surrondor and canco||at|on ot any or a||
outstand|ng opt|ons. 1ho adm|n|strator a|so may buy out an opt|on prov|ous|y grantod tor cash, sharos or othor cons|dorat|on as tho adm|n|strator and tho part|c|pant
may agroo.
Optloos. On|y nonqua||t|od stock opt|ons may bo grantod undor our 2011 l|an. 1ho oxorc|so pr|co por sharo ot a|| opt|ons undor our 2011 l|an |s ostab||shod
by tho adm|n|strator at tho t|mo ot grant. 1ho adm|n|strator dotorm|nos tho mothods ot paymont ot tho oxorc|so pr|co ot an opt|on, wh|ch may |nc|udo cash, sharos or
corta|n othor proporty or othor cons|dorat|on accoptab|o to tho adm|n|strator. Attor a part|c|pant's torm|nat|on ot sorv|co, tho part|c|pant gonora||y may oxorc|so h|s or hor
opt|ons, to tho oxtont vostod as ot such dato ot torm|nat|on, tor throo months attor torm|nat|on. lt torm|nat|on |s duo to doath or d|sab|||ty, tho opt|on gonora||y w||| roma|n
oxorc|sab|o, to tho oxtont vostod as ot such dato ot torm|nat|on, unt|| tho ono-yoar ann|vorsary ot such torm|nat|on. |owovor, |n no ovont may an opt|on bo oxorc|sod
|ator than tho oxp|rat|on ot |ts torm. lt torm|nat|on |s tor causo, thon an opt|on automat|ca||y oxp|ros upon tho part|c|pant's torm|nat|on dato (or, |t |ator, such t|mo as tho
cond|t|ons tor causo aro dotorm|nod by tho adm|n|strator to havo occurrod).
7roosorobl|lty or Asslgoobl|lty o Optloos. Our 2011 l|an gonora||y doos not a||ow tor tho transtor or ass|gnmont ot awards, othor than by g|tt to an |mmod|ato
tam||y mombor, and on|y tho roc|p|ont ot an award may oxorc|so such an award dur|ng h|s or hor ||tot|mo.
Cortolo Aojostmoots. ln tho ovont ot corta|n changos |n our cap|ta||zat|on, tho oxorc|so pr|cos ot and tho numbor ot sharos subjoct to outstand|ng opt|ons w|||
bo proport|onato|y adjustod, subjoct to any roqu|rod act|on by our board ot d|roctors or stockho|dors.
Vorgor or Cboogo lo Cootro|. ln tho ovont ot a morgor, chango |n contro| or othor company comb|nat|on transact|on, as dot|nod undor our 2011 l|an, oach
outstand|ng opt|on may bo assumod or subst|tutod tor an oqu|va|ont award. ln tho ovont that opt|ons aro not assumod or subst|tutod tor, thon

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1abIo ot Contonta
tho vost|ng ot outstand|ng opt|ons w||| bo acco|oratod, and opt|ons w||| bocomo oxorc|sab|o |n tu|| pr|or to such corporato transact|on. Opt|ons, to tho oxtont thoy roma|n
unoxorc|sod, w||| thon gonora||y torm|nato |mmod|ato|y pr|or to tho corporato transact|on.
Amooomoot, 7ormlootloo. Our board ot d|roctors may amond our 2011 l|an at any t|mo, prov|dod that such amondmont doos not |mpa|r tho r|ghts undor
outstand|ng opt|ons w|thout tho part|c|pant's wr|tton consont. As notod abovo, upon comp|ot|on ot th|s ottor|ng, our 2011 l|an w||| bo torm|natod and no turthor opt|ons
w||| bo grantod thoroundor. A|| outstand|ng opt|ons w||| cont|nuo to bo govornod by tho|r ox|st|ng torms.
Blue|In Labs, lnc. 2008 8tock Plan
ln connoct|on w|th our acqu|s|t|on ot 3|uot|n labs, lnc. |n |obruary 2018, wo assumod opt|ons grantod undor tho 3|uot|n labs, lnc. 2008 3tock l|an, or tho
3|uot|n l|an, ho|d by 3|uot|n omp|oyoos who cont|nuod omp|oymont w|th us or ono ot our subs|d|ar|os attor tho c|os|ng, and convortod thom |nto opt|ons to purchaso
sharos ot our common stock. 1ho 3|uot|n l|an was torm|natod on tho c|os|ng ot tho acqu|s|t|on, but tho 3|uot|n l|an w||| cont|nuo to govorn tho torms ot opt|ons wo
assumod |n tho acqu|s|t|on. As ot 1uno 80, 2018, opt|ons to purchaso 400,480 sharos ot our common stock roma|nod outstand|ng undor tho 3|uot|n l|an at a wo|ghtod-
avorago oxorc|so pr|co ot approx|mato|y $2.22 por sharo.
Our componsat|on comm|ttoo curront|y adm|n|stors tho 3|uot|n l|an. 1ho adm|n|strator dotorm|nos tho mothods ot paymont ot tho oxorc|so pr|co ot an opt|on,
wh|ch may |nc|udo cash or cash oqu|va|onts or othor cons|dorat|on accoptab|o to tho adm|n|strator |n |ts d|scrot|on. Attor a part|c|pant's torm|nat|on ot sorv|co, tho
part|c|pant may gonora||y oxorc|so h|s or hor opt|ons, to tho oxtont vostod as ot such dato ot torm|nat|on, tor throo months attor torm|nat|on. lt torm|nat|on |s duo to
d|sab|||ty, tho opt|on w||| gonora||y roma|n oxorc|sab|o, to tho oxtont vostod as ot such dato ot torm|nat|on, tor at |oast s|x months. lt torm|nat|on |s duo to doath, tho
opt|on gonora||y w||| roma|n oxorc|sab|o, to tho oxtont vostod as ot such dato ot torm|nat|on, tor at |oast 12 months. |owovor, |n no ovont may an opt|on bo oxorc|sod
|ator than tho oxp|rat|on ot |ts torm. Opt|ons gonora||y may bo transtorrab|o on|y by a bonot|c|ary dos|gnat|on, a w||| or tho |aws ot doscont and d|str|but|on. |owovor, tho
stock opt|on agroomont may a||ow tor transtor ot nonstatutory stock opt|ons by g|tt to a tam||y mombor or g|tt to an |ntor v|vos or tostamontary trust |n wh|ch tho
part|c|pant's |mmod|ato tam||y has a bonot|c|a| |ntorost, subjoct to tho cond|t|ons spoc|t|od |n tho 3|uot|n l|an. lncont|vo stock opt|ons may bo oxorc|sod dur|ng tho
part|c|pant's ||tot|mo on|y by tho part|c|pant or tho part|c|pant's guard|an.
ln tho ovont ot corta|n changos |n our cap|ta||zat|on, tho oxorc|so pr|cos ot and tho numbor ot sharos subjoct to outstand|ng opt|ons undor tho 3|uot|n l|an w|||
bo appropr|ato|y adjustod. ln tho ovont ot a morgor or conso||dat|on, oach opt|on w||| bo subjoct to tho agroomont ot morgor or conso||dat|on, wh|ch w||| prov|do tor ono or
moro ot tho to||ow|ng: tho cont|nuat|on, assumpt|on or subst|tut|on ot awards, tu|| acco|orat|on ot opt|ons to||owod by tho canco||at|on ot such opt|ons and/or tho
sott|omont ot tho tu|| va|uo ot outstand|ng opt|ons |n cash or cash oqu|va|onts to||owod by tho canco||at|on ot outstand|ng opt|ons subjoct to corta|n cond|t|ons.
CrashlytIcs, lnc. 2011 8tock Plan
ln connoct|on w|th our acqu|s|t|on ot Crash|yt|cs, lnc. |n 1anuary 2018, wo assumod opt|ons grantod undor tho Crash|yt|cs, lnc. 2011 3tock l|an, or tho
Crash|yt|cs l|an, ho|d by Crash|yt|cs omp|oyoos who cont|nuod omp|oymont w|th us or ono ot our subs|d|ar|os attor tho c|os|ng, and convortod thom |nto opt|ons to
purchaso sharos ot our common stock. 1ho Crash|yt|cs l|an was torm|natod on tho c|os|ng ot tho acqu|s|t|on, but tho Crash|yt|cs l|an w||| cont|nuo to govorn tho torms
ot opt|ons wo assumod |n tho acqu|s|t|on. As ot 1uno 80, 2018, opt|ons to purchaso 82b,080 sharos ot our common stock roma|nod outstand|ng undor tho Crash|yt|cs
l|an at a wo|ghtod-avorago oxorc|so pr|co ot approx|mato|y $0.b4 por sharo.

18b
1abIo ot Contonta
Our componsat|on comm|ttoo curront|y adm|n|stors tho Crash|yt|cs l|an. 1ho adm|n|strator dotorm|nos tho mothods ot paymont ot tho oxorc|so pr|co ot an
opt|on, wh|ch may |nc|udo cash or cash oqu|va|onts or othor cons|dorat|on accoptab|o to tho adm|n|strator |n |ts d|scrot|on. Attor a part|c|pant's torm|nat|on ot sorv|co,
tho part|c|pant gonora||y may oxorc|so h|s or hor opt|ons, to tho oxtont vostod as ot such dato ot torm|nat|on, tor throo months attor torm|nat|on. lt torm|nat|on |s duo to
d|sab|||ty, tho opt|on gonora||y w||| roma|n oxorc|sab|o, to tho oxtont vostod as ot such dato ot torm|nat|on, tor at |oast s|x months. lt torm|nat|on |s duo to doath, tho
opt|on gonora||y w||| roma|n oxorc|sab|o, to tho oxtont vostod as ot such dato ot torm|nat|on, tor at |oast 12 months. |owovor, |n no ovont may an opt|on bo oxorc|sod
|ator than tho oxp|rat|on ot |ts torm. Opt|ons gonora||y may bo transtorrab|o on|y by a bonot|c|ary dos|gnat|on, a w||| or tho |aws ot doscont and d|str|but|on. |owovor, tho
stock opt|on agroomont may a||ow tor transtor ot nonstatutory stock opt|ons by g|tt to a tam||y mombor or g|tt to an |ntor v|vos or tostamontary trust |n wh|ch tho
part|c|pant's |mmod|ato tam||y has a bonot|c|a| |ntorost, subjoct to tho cond|t|ons spoc|t|od |n tho Crash|yt|cs l|an. lncont|vo stock opt|ons may bo oxorc|sod dur|ng tho
part|c|pant's ||tot|mo on|y by tho part|c|pant or tho part|c|pant's guard|an.
ln tho ovont ot corta|n changos |n our cap|ta||zat|on, tho oxorc|so pr|cos ot and tho numbor ot sharos subjoct to outstand|ng opt|ons undor tho Crash|yt|cs l|an
w||| bo appropr|ato|y adjustod. ln tho ovont ot a morgor or conso||dat|on, or |n tho ovont ot a sa|o ot a|| or substant|a||y a|| ot our stock or assots, a|| opt|ons w||| bo troatod
|n tho mannor doscr|bod |n tho dot|n|t|vo transact|on agroomont (or, |t nono ox|sts, by tho dotorm|nat|on by our board ot d|roctors), wh|ch w||| prov|do tor ono or moro ot
tho to||ow|ng: tho cont|nuat|on, assumpt|on or subst|tut|on ot awards, canco||at|on ot tho opt|ons w|th or w|thout cons|dorat|on (prov|dod that |t opt|ons aro canco||od
w|thout any cons|dorat|on, roqu|s|to not|co must bo prov|dod), suspons|on ot tho r|ght to oxorc|so tho opt|on dur|ng a ||m|tod por|od ot t|mo and/or torm|nat|on ot any r|ght
to oar|y oxorc|so.
MIxer Labs, lnc. 2008 8tock Plan
ln connoct|on w|th our acqu|s|t|on ot V|xor labs, lnc. |n 0ocombor 2000, wo assumod opt|ons |ssuod undor tho V|xor labs, lnc. 2008 3tock l|an, or tho V|xor
labs l|an, ho|d by V|xor labs omp|oyoos who cont|nuod omp|oymont w|th us attor tho c|os|ng, and convortod thom |nto opt|ons to purchaso sharos ot our common
stock. 1ho V|xor labs l|an was torm|natod on tho c|os|ng ot tho acqu|s|t|on, but tho V|xor labs l|an w||| cont|nuo to govorn tho torms ot opt|ons wo assumod |n tho
acqu|s|t|on. As ot 1uno 80, 2018, opt|ons to purchaso 108,170 sharos ot our common stock roma|nod outstand|ng undor tho V|xor labs l|an at a wo|ghtod-avorago
oxorc|so pr|co ot approx|mato|y $0.11 por sharo.
Our componsat|on comm|ttoo curront|y adm|n|stors tho V|xor labs l|an. 1ho adm|n|strator dotorm|nos tho mothods ot paymont ot tho oxorc|so pr|co ot an
opt|on, wh|ch may |nc|udo cash or cash oqu|va|onts or othor cons|dorat|on accoptab|o to tho adm|n|strator |n |ts d|scrot|on. Attor a part|c|pant's torm|nat|on ot sorv|co,
tho part|c|pant may gonora||y oxorc|so h|s or hor opt|ons, to tho oxtont vostod as ot such dato ot torm|nat|on, tor throo months attor torm|nat|on. lt torm|nat|on |s duo to
d|sab|||ty or doath, tho opt|on gonora||y w||| roma|n oxorc|sab|o, to tho oxtont vostod as ot such dato ot torm|nat|on, tor s|x months. lt torm|nat|on |s duo to causo, tho
opt|on w||| torm|nato on torm|nat|on. ln no ovont may an opt|on bo oxorc|sod |ator than tho oxp|rat|on ot |ts torm. Opt|ons gonora||y may not bo so|d, p|odgod, ass|gnod,
hypothocatod, transtorrod or d|sposod ot |n any mannor othor than by w||| or by tho |aws ot doscont or d|str|but|on.
ln tho ovont ot corta|n changos |n our cap|ta||zat|on, tho oxorc|so pr|cos ot and tho numbor ot sharos subjoct to outstand|ng opt|ons undor tho V|xor labs l|an
w||| bo appropr|ato|y adjustod. 1ho V|xor labs l|an prov|dos that, |n tho ovont ot a corporato transact|on, a|| opt|ons may bo assumod or subst|tutod tor an oqu|va|ont
opt|on or r|ght or torm|natod |n oxchango tor a paymont ot cash, socur|t|os and/or or proporty oqua| to tho ta|r markot va|uo ot tho stock that |s vostod and oxorc|sab|o
roducod by

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tho oxorc|so pr|co payab|o |n connoct|on w|th tho opt|on. ln tho ovont opt|ons aro not assumod, subst|tutod or oxchangod, opt|ons w||| torm|nato upon tho
consummat|on ot tho corporato transact|on.
ExecutIve lncentIve CompensatIon Plan
Our Exocut|vo lncont|vo Componsat|on l|an, or our lncont|vo Componsat|on l|an, was adoptod by our componsat|on comm|ttoo |n August 2018. Our lncont|vo
Componsat|on l|an a||ows our componsat|on comm|ttoo to prov|do cash |ncont|vo awards to omp|oyoos so|octod by our componsat|on comm|ttoo, |nc|ud|ng our namod
oxocut|vo ott|cors, basod upon portormanco goa|s ostab||shod by our componsat|on comm|ttoo.
Undor our lncont|vo Componsat|on l|an, our componsat|on comm|ttoo dotorm|nos tho portormanco goa|s app||cab|o to any award, wh|ch goa|s may |nc|udo,
w|thout ||m|tat|on, tho atta|nmont ot rosoarch and dovo|opmont m||ostonos, sa|os book|ngs, bus|noss d|vost|turos and acqu|s|t|ons, cash t|ow, cash pos|t|on, oporat|ng
rosu|ts and oporat|ng motr|cs, product dotoct moasuros, product ro|oaso t|mo||nos, product|v|ty, roturn on assots, roturn on cap|ta|, roturn on oqu|ty, roturn on
|nvostmont, roturn on sa|os, sa|os rosu|ts, sa|os growth, stock pr|co, t|mo to markot, tota| stockho|dor roturn, work|ng cap|ta| and |nd|v|dua| objoct|vos such as poor
rov|ows or othor subjoct|vo or objoct|vo cr|tor|a. 1ho portormanco goa|s may d|ttor trom part|c|pant to part|c|pant and trom award to award.
Our componsat|on comm|ttoo curront|y adm|n|stors our lncont|vo Componsat|on l|an. 1ho adm|n|strator ot our lncont|vo Componsat|on l|an may, |n |ts so|o
d|scrot|on and at any t|mo, |ncroaso, roduco or o||m|nato a part|c|pant's actua| award, and/or |ncroaso, roduco or o||m|nato tho amount a||ocatod to tho bonus poo| tor a
part|cu|ar portormanco por|od. 1ho actua| award may bo bo|ow, at or abovo a part|c|pant's targot award, |n tho d|scrot|on ot tho adm|n|strator. 1ho adm|n|strator may
dotorm|no tho amount ot any roduct|on on tho bas|s ot such tactors as |t dooms ro|ovant, and |t |s not roqu|rod to ostab||sh any a||ocat|on or wo|ght|ng w|th rospoct to
tho tactors |t cons|dors.
Actua| awards aro pa|d |n cash on|y attor thoy aro oarnod, wh|ch usua||y roqu|ros cont|nuod omp|oymont through tho |ast day ot tho portormanco por|od and tho
dato tho actua| award |s pa|d. laymont ot awards occurs as soon as adm|n|strat|vo|y pract|cab|o attor thoy aro oarnod, but no |ator than tho datos sot torth |n our
lncont|vo Componsat|on l|an.
Our board ot d|roctors and our componsat|on comm|ttoo havo tho author|ty to amond, a|tor, suspond or torm|nato our lncont|vo Componsat|on l|an, prov|dod
such act|on doos not |mpa|r tho ox|st|ng r|ghts ot any part|c|pant w|th rospoct to any oarnod awards.
401(k} Plan
Wo ma|nta|n a tax-qua||t|od rot|romont p|an, or tho 401(k) p|an, that prov|dos o||g|b|o omp|oyoos w|th an opportun|ty to savo tor rot|romont on a tax-advantagod
bas|s. E||g|b|o omp|oyoos aro ab|o to part|c|pato |n tho 401(k) p|an as ot tho t|rst day ot tho month to||ow|ng tho dato thoy moot tho 401(k) p|an's o||g|b|||ty roqu|romonts,
and part|c|pants aro ab|o to dotor up to 100% ot tho|r o||g|b|o componsat|on subjoct to app||cab|o annua| Codo ||m|ts. A|| part|c|pants' |ntorosts |n tho|r dotorra|s
aro 100% vostod whon contr|butod. 1ho 401(k) p|an porm|ts us to mako match|ng contr|but|ons and prot|t shar|ng contr|but|ons to o||g|b|o part|c|pants, a|though wo havo
not mado any such contr|but|ons to dato.

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CER1A|N RELA1|ON5E|P5 AND RELA1ED PAR1Y 1RAN5AC1|ON5
ln add|t|on to tho componsat|on arrangomonts, |nc|ud|ng omp|oymont, torm|nat|on ot omp|oymont and chango |n contro| arrangomonts, d|scussod |n tho
soct|ons t|t|od Vanagomont' and Exocut|vo Componsat|on' and tho rog|strat|on r|ghts doscr|bod |n tho soct|on t|t|od 0oscr|pt|on ot Cap|ta| 3tock-log|strat|on
l|ghts,' tho to||ow|ng |s a doscr|pt|on ot oach transact|on s|nco 1anuary 1, 2010 and oach curront|y proposod transact|on |n wh|ch:



wo havo boon or aro to bo a part|c|pant,



tho amount |nvo|vod oxcoodod or oxcoods $120,000, and




any ot our d|roctors, oxocut|vo ott|cors or ho|dors ot moro than b% ot our outstand|ng cap|ta| stock, or any |mmod|ato tam||y mombor ot, or porson shar|ng
tho housoho|d w|th, any ot thoso |nd|v|dua|s or ont|t|os, had or w||| havo a d|roct or |nd|roct mator|a| |ntorost.
Equity Financinga
8erIes F ConvertIble Pre|erred 8tock FInancIng
|rom 0ocombor 2010 through 1anuary 2011, wo so|d an aggrogato ot 20,107,800 sharos ot our 3or|os | convort|b|o protorrod stock at a purchaso pr|co ot
approx|mato|y $7.08 por sharo, tor an aggrogato purchaso pr|co ot $100,000,078. 1ho to||ow|ng tab|o summar|zos purchasos ot our 3or|os | convort|b|o protorrod stock
by ho|dors ot moro than b% ot our outstand|ng cap|ta| stock:

5tockhoIdor
5haroa ot
5orioa F
ConvortibIo
Protorrod 5tock
1otaI Purchaao
Prico
Ent|t|os att|||atod w|th 3park Cap|ta| 1,004,842 $ 14,000,007
3onchmark Cap|ta| lartnors vl, l.l. 1,102,b44 0,104,110

Att|||atosot 3parkCap|ta| ho|d|ng our socur|t|oswhoso sharosaro aggrogatod tor purpososot roport|ng sharo ownorsh|p |ntormat|on |nc|udo 3parkCap|ta| ll, l.l. and 3parkCap|ta| |oundors' |und
ll, llC.
lotor |onton, a mombor ot our board ot d|roctors, |sa Gonora| lartnor ot 3onchmarkCap|ta|.
8erIes G ConvertIble Pre|erred 8tock FInancIng
0ur|ng 1u|y 2011, wo so|d an aggrogato ot 10,007,1b0 sharos ot our 3or|os G-1 convort|b|o protorrod stock at a purchaso pr|co ot approx|mato|y $10.00 por
sharo, tor an aggrogato purchaso pr|co ot $102,400,087. 1ho to||ow|ng tab|o summar|zos purchasos ot our 3or|os G-1 convort|b|o protorrod stock by ho|dors ot moro than
b% ot our outstand|ng cap|ta| stock:

5tockhoIdor
5haroa ot
5orioa C-1
ConvortibIo
Protorrod 5tock
1otaI Purchaao
Prico
Ent|t|os att|||atod w|th l|zv| 1ravorso $

Att|||atosot l|zv| 1ravorso ho|d|ng our socur|t|oswhoso sharosaro aggrogatod tor purpososot roport|ng sharo ownorsh|p |ntormat|on |nc|udo and .

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0ur|ng 1u|y 2011, wo so|d an aggrogato ot 14,7b7,880 sharos ot our 3or|os G-2 convort|b|o protorrod stock at a purchaso pr|co ot $10.00 por sharo, tor an
aggrogato purchaso pr|co ot $287,400,078. 1ho to||ow|ng tab|o summar|zos purchasos ot our 3or|os G-2 convort|b|o protorrod stock by ho|dors ot moro than b% ot our
outstand|ng cap|ta| stock:

5tockhoIdor
5haroa ot
5orioa C-2
ConvortibIo
Protorrod 5tock
1otaI Purchaao
Prico
Ent|t|os att|||atod w|th 031 G|oba| 12,427,278 $ 100,000,001

Att|||atosot 031 G|oba| ho|d|ng our socur|t|oswhoso sharosaro aggrogatod tor purpososot roport|ng sharo ownorsh|p |ntormat|on |nc|udo 031 G|oba| ll, l.l., 031 lnvostmonts8 l|m|tod and 031
lnvostmontslv, l.l.
2011 1hird-Party 1ondor Ottor
ln 1u|y 2011, wo ontorod |nto a |ottor agroomont, wh|ch was amondod |n August 2011, w|th corta|n ho|dors ot our cap|ta| stock, |nc|ud|ng ont|t|os att|||atod w|th
031 G|oba| and l|zv| 1ravorso, pursuant to wh|ch wo agrood to wa|vo corta|n transtor rostr|ct|ons |n connoct|on w|th, and ass|st |n tho adm|n|strat|on ot, a tondor ottor
that such ho|dors proposod to commonco. ln August 2011, thoso ho|dors commoncod a tondor ottor to purchaso sharos ot our cap|ta| stock trom corta|n ot our
socur|tyho|dors. Vossrs. Costo|o, 0orsoy and lowghan|, oach ot whom |s ono ot our d|roctors or oxocut|vo ott|cors, so|d sharos ot our cap|ta| stock |n tho tondor ottor.
An aggrogato ot 22,084,044 sharos ot our cap|ta| stock woro tondorod pursuant to tho tondor ottor at a pr|co ot approx|mato|y $1b.08 por sharo attor tak|ng |nto account
a transact|on too.
2018 1hird-Party 1ondor Ottor
ln 1anuary 2018, wo ontorod |nto a |ottor agroomont w|th corta|n ho|dors ot our cap|ta| stock pursuant to wh|ch wo agrood to wa|vo corta|n transtor rostr|ct|ons |n
connoct|on w|th, and ass|st |n tho adm|n|strat|on ot, a tondor ottor that such ho|dors proposod to commonco. ln 1anuary 2018, thoso ho|dors commoncod a tondor ottor
to purchaso sharos ot our cap|ta| stock trom corta|n ot our socur|tyho|dors. Vr. 3a|n, ono ot our oxocut|vo ott|cors, so|d sharos ot our cap|ta| stock |n tho tondor ottor. An
aggrogato ot 8,b08,880 sharos ot our cap|ta| stock woro tondorod pursuant to tho tondor ottor at a pr|co ot $17.00 por sharo.
|nvoatora' Righta Agroomont
Wo aro party to an |nvostors' r|ghts agroomont wh|ch prov|dos, among othor th|ngs, that corta|n ho|dors ot our cap|ta| stock havo tho r|ght to domand that wo t||o
a rog|strat|on statomont or roquost that tho|r sharos ot our cap|ta| stock bo covorod by a rog|strat|on statomont that wo aro othorw|so t|||ng. 3oo tho soct|on t|t|od
0oscr|pt|on ot Cap|ta| 3tock-log|strat|on l|ghts' tor add|t|ona| |ntormat|on rogard|ng thoso rog|strat|on r|ghts.
Right ot Firat RotuaaI
lursuant to our curront by|aws, corta|n ot our oqu|ty componsat|on p|ans and corta|n agroomonts w|th our stockho|dors, |nc|ud|ng a r|ght ot t|rst rotusa| and co-
sa|o agroomont, wo or our ass|gnoos havo a r|ght to purchaso sharos ot our cap|ta| stock wh|ch stockho|dors proposo to so|| to othor part|os. 1h|s r|ght w||| torm|nato
upon tho comp|ot|on ot th|s ottor|ng. 3|nco 1anuary 1, 2010, wo havo wa|vod or ass|gnod our r|ght ot t|rst rotusa| |n connoct|on w|th tho sa|o ot corta|n sharos ot our
cap|ta| stock, rosu|t|ng |n tho purchaso ot such sharos by corta|n ho|dors ot moro than b% ot our cap|ta| stock |n a sor|os ot transact|ons. 3oo tho soct|on t|t|od
lr|nc|pa| 3tockho|dors' tor add|t|ona| |ntormat|on rogard|ng bonot|c|a| ownorsh|p ot our cap|ta| stock.

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Voting Agroomont
Wo aro party to a vot|ng agroomont undor wh|ch corta|n ho|dors ot our cap|ta| stock, |nc|ud|ng ont|t|os w|th wh|ch corta|n ot our d|roctors aro att|||atod, havo
agrood to voto tho|r sharos ot our cap|ta| stock on corta|n mattors, |nc|ud|ng w|th rospoct to tho o|oct|on ot d|roctors. Upon tho comp|ot|on ot th|s ottor|ng, tho vot|ng
agroomont w||| torm|nato and nono ot our stockho|dors w||| havo any spoc|a| r|ghts rogard|ng tho o|oct|on or dos|gnat|on ot mombors ot our board ot d|roctors.
EoIdor Voting Agroomonta
Wo aro party to vot|ng agroomonts undor wh|ch corta|n ho|dors ot our cap|ta| stock, |nc|ud|ng ont|t|os att|||atod w|th 031 G|oba| and l|zv| 1ravorso, havo agrood
to voto tho|r sharos ot our cap|ta| stock as d|roctod by, and havo grantod an |rrovocab|o proxy to, an ott|cor appo|ntod tor tho purposo ot act|ng as a proxyho|dor by our
board ot d|roctors at such ott|cor's d|scrot|on on mattors to bo votod upon by stockho|dors, subjoct to corta|n ||m|tod oxcopt|ons. Upon tho comp|ot|on ot th|s ottor|ng,
corta|n ot thoso vot|ng agroomonts w||| torm|nato. 1ho roma|n|ng vot|ng agroomonts, oach ot wh|ch has boon mod|t|od pursuant to an agroomont botwoon such ho|dors
and us, w||| roma|n |n ottoct tor a por|od ot 180 days attor tho dato ot th|s prospoctus. 3oo tho soct|on t|t|od 0oscr|pt|on ot Cap|ta| 3tock-vot|ng Agroomonts' tor a
doscr|pt|on ot tho vot|ng agroomonts that roma|n |n ottoct tor a por|od ot 180 days attor tho dato ot th|s prospoctus.
Wo aro party to a vot|ng agroomont undor wh|ch an ont|ty att|||atod w|th l|zv| 1ravorso agrood to voto 18,722,222 sharos ot our cap|ta| stock ownod by |t as
d|roctod by, and has grantod an |rrovocab|o proxy to, Obv|ous, llC, an ont|ty contro||od by Vr. W||||ams, who |s ono ot our d|roctors, on corta|n mattors to bo votod upon
by stockho|dors. 1h|s vot|ng agroomont w||| torm|nato upon tho comp|ot|on ot th|s ottor|ng.
Wo aro party to a vot|ng agroomont undor wh|ch a ho|dor ot our cap|ta| stock agrood to voto 277,778 sharos ot our cap|ta| stock ownod by |t as d|roctod by, and
has grantod an |rrovocab|o proxy to, Obv|ous, llC, an ont|ty contro||od by Vr. W||||ams, who |s ono ot our d|roctors, on corta|n mattors to bo votod upon by
stockho|dors. 1h|s vot|ng agroomont w||| torm|nato upon tho comp|ot|on ot th|s ottor|ng.
Wo aro party to a vot|ng agroomont undor wh|ch an ont|ty att|||atod w|th l|zv| 1ravorso agrood to voto 10,782,070 sharos ot our cap|ta| stock ownod by |t as
d|roctod by, and has grantod an |rrovocab|o proxy to, ont|t|os att|||atod w|th 3park Cap|ta| on corta|n mattors to bo votod upon by stockho|dors. 1h|s vot|ng agroomont w|||
torm|nato upon tho comp|ot|on ot th|s ottor|ng.
Wo aro party to a vot|ng agroomont undor wh|ch an ont|ty att|||atod w|th l|zv| 1ravorso agrood to voto 0,088,820 sharos ot our cap|ta| stock ownod by |t as
d|roctod by, and has grantod an |rrovocab|o proxy to, ont|t|os att|||atod w|th Un|on 3quaro vonturos on corta|n mattors to bo votod upon by stockho|dors. 1h|s vot|ng
agroomont w||| torm|nato upon tho comp|ot|on ot th|s ottor|ng.
1ranaactiona with Woat 5tudioa, LLC
1ack 0orsoy, ono ot our d|roctors, has a d|roct ownorsh|p |ntorost |n Wost 3tud|os, llC. ln 2011 and 2012, wo |ncurrod $0.8 m||||on and $1.0 m||||on,
rospoct|vo|y, ot oxponso tor markot|ng and commun|cat|on sorv|cos rondorod to us by Wost 3tud|os, llC. lo oxponso was |ncurrod |n ro|at|on to th|s arrangomont |n
tho s|x months ondod 1uno 80, 2018. 1horo was no outstand|ng payab|o ba|anco to Wost 3tud|os, llC as ot 1uno 80, 2018.

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Othor 1ranaactiona
Wo havo grantod stock opt|ons and l3Us to our oxocut|vo ott|cors and corta|n ot our d|roctors. 3oo tho soct|ons t|t|od Exocut|vo Componsat|on-Outstand|ng
Equ|ty Awards at 2012 Yoar-End' and Vanagomont-lon-Emp|oyoo 0|roctor Componsat|on' tor a doscr|pt|on ot thoso stock opt|ons and l3Us.
lr|or to tho comp|ot|on ot th|s ottor|ng, wo oxpoct to ontor |nto chango |n contro| agroomonts w|th corta|n ot our oxocut|vo ott|cors pursuant to our chango |n
contro| sovoranco po||cy that, among othor th|ngs, prov|dos tor corta|n sovoranco and chango |n contro| bonot|ts. 3oo tho soct|on t|t|od Exocut|vo Componsat|on
-lotont|a| laymonts upon 1orm|nat|on or Chango |n Contro|' tor add|t|ona| |ntormat|on rogard|ng th|s po||cy.
Othor than as doscr|bod abovo undor th|s soct|on t|t|od Corta|n lo|at|onsh|ps and lo|atod larty 1ransact|ons,' s|nco 1anuary 1, 2010, wo havo not ontorod |nto
any transact|ons, nor aro thoro any curront|y proposod transact|ons, botwoon us and a ro|atod party whoro tho amount |nvo|vod oxcoods, or wou|d oxcood, $120,000,
and |n wh|ch any ro|atod porson had or w||| havo a d|roct or |nd|roct mator|a| |ntorost. Wo bo||ovo tho torms ot tho transact|ons doscr|bod abovo woro comparab|o to
torms wo cou|d havo obta|nod |n arm's-|ongth doa||ngs w|th unro|atod th|rd part|os.
Limitation ot LiabiIity and |ndomnitication ot Otticora and Diroctora
Wo oxpoct to adopt an amondod and rostatod cort|t|cato ot |ncorporat|on, wh|ch w||| bocomo ottoct|vo |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, and
wh|ch w||| conta|n prov|s|ons that ||m|t tho ||ab|||ty ot our d|roctors tor monotary damagos to tho tu||ost oxtont porm|ttod by 0o|awaro |aw. Consoquont|y, our d|roctors w|||
not bo porsona||y ||ab|o to us or our stockho|dors tor monotary damagos tor any broach ot t|duc|ary dut|os as d|roctors, oxcopt ||ab|||ty tor tho to||ow|ng:



any broach ot tho|r duty ot |oya|ty to our company or our stockho|dors,



any act or om|ss|on not |n good ta|th or that |nvo|vos |ntont|ona| m|sconduct or a know|ng v|o|at|on ot |aw,



un|awtu| paymonts ot d|v|donds or un|awtu| stock ropurchasos or rodompt|ons as prov|dod |n 3oct|on 174 ot tho 0o|awaro Gonora| Corporat|on law, or



any transact|on trom wh|ch thoy dor|vod an |mpropor porsona| bonot|t.
Any amondmont to, or ropoa| ot, thoso prov|s|ons w||| not o||m|nato or roduco tho ottoct ot thoso prov|s|ons |n rospoct ot any act, om|ss|on or c|a|m that
occurrod or aroso pr|or to that amondmont or ropoa|. lt tho 0o|awaro Gonora| Corporat|on law |s amondod to prov|do tor turthor ||m|tat|ons on tho porsona| ||ab|||ty ot
d|roctors ot corporat|ons, thon tho porsona| ||ab|||ty ot our d|roctors w||| bo turthor ||m|tod to tho groatost oxtont porm|ttod by tho 0o|awaro Gonora| Corporat|on law.
ln add|t|on, wo oxpoct to adopt amondod and rostatod by|aws, wh|ch w||| bocomo ottoct|vo |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, and wh|ch w|||
prov|do that wo w||| |ndomn|ty, to tho tu||ost oxtont porm|ttod by |aw, any porson who |s or was a party or |s throatonod to bo mado a party to any act|on, su|t or
procood|ng by roason ot tho tact that ho or sho |s or was ono ot our d|roctors or ott|cors or |s or was sorv|ng at our roquost as a d|roctor or ott|cor ot anothor corporat|on,
partnorsh|p, jo|nt vonturo, trust or othor ontorpr|so. Our amondod and rostatod by|aws aro oxpoctod to prov|do that wo may |ndomn|ty to tho tu||ost oxtont porm|ttod by
|aw any porson who |s or was a party or |s throatonod to bo mado a party to any act|on, su|t or procood|ng by roason ot tho tact that ho or sho |s or was ono ot our
omp|oyoos or agonts or |s or was sorv|ng at our roquost as an omp|oyoo or agont ot anothor corporat|on, partnorsh|p, jo|nt vonturo, trust or othor ontorpr|so. Our
amondod and rostatod by|aws w||| a|so prov|do that wo must advanco oxponsos |ncurrod by or on boha|t ot a d|roctor or ott|cor |n advanco ot tho t|na| d|spos|t|on ot any
act|on or procood|ng, subjoct to ||m|tod oxcopt|ons.

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1abIo ot Contonta
|urthor, wo havo ontorod |nto or w||| ontor |nto |ndomn|t|cat|on agroomonts w|th oach ot our d|roctors and oxocut|vo ott|cors that may bo broador than tho spoc|t|c
|ndomn|t|cat|on prov|s|ons conta|nod |n tho 0o|awaro Gonora| Corporat|on law. 1hoso |ndomn|t|cat|on agroomonts roqu|ro us, among othor th|ngs, to |ndomn|ty our
d|roctors and oxocut|vo ott|cors aga|nst ||ab|||t|os that may ar|so by roason ot tho|r status or sorv|co. 1hoso |ndomn|t|cat|on agroomonts a|so roqu|ro us to advanco a||
oxponsos |ncurrod by tho d|roctors and oxocut|vo ott|cors |n |nvost|gat|ng or dotond|ng any such act|on, su|t or procood|ng. Wo bo||ovo that thoso agroomonts aro
nocossary to attract and rota|n qua||t|od |nd|v|dua|s to sorvo as d|roctors and oxocut|vo ott|cors.
1ho ||m|tat|on ot ||ab|||ty and |ndomn|t|cat|on prov|s|ons that aro oxpoctod to bo |nc|udod |n our amondod and rostatod cort|t|cato ot |ncorporat|on, amondod and
rostatod by|aws and |n |ndomn|t|cat|on agroomonts that wo havo ontorod |nto or w||| ontor |nto w|th our d|roctors and oxocut|vo ott|cors may d|scourago stockho|dors
trom br|ng|ng a |awsu|t aga|nst our d|roctors and oxocut|vo ott|cors tor broach ot tho|r t|duc|ary dut|os. 1hoy may a|so roduco tho ||ko||hood ot dor|vat|vo ||t|gat|on aga|nst
our d|roctors and oxocut|vo ott|cors, ovon though an act|on, |t succosstu|, m|ght bonot|t us and othor stockho|dors. |urthor, a stockho|dor's |nvostmont may bo advorso|y
attoctod to tho oxtont that wo pay tho costs ot sott|omont and damago awards aga|nst d|roctors and oxocut|vo ott|cors as roqu|rod by thoso |ndomn|t|cat|on prov|s|ons.
At prosont, wo aro not awaro ot any pond|ng ||t|gat|on or procood|ng |nvo|v|ng any porson who |s or was ono ot our d|roctors, ott|cors, omp|oyoos or othor agonts or |s or
was sorv|ng at our roquost as a d|roctor, ott|cor, omp|oyoo or agont ot anothor corporat|on, partnorsh|p, jo|nt vonturo, trust or othor ontorpr|so, tor wh|ch |ndomn|t|cat|on |s
sought, and wo aro not awaro ot any throatonod ||t|gat|on that may rosu|t |n c|a|ms tor |ndomn|t|cat|on.
Wo havo obta|nod |nsuranco po||c|os undor wh|ch, subjoct to tho ||m|tat|ons ot tho po||c|os, covorago |s prov|dod to our d|roctors and oxocut|vo ott|cors aga|nst
|oss ar|s|ng trom c|a|ms mado by roason ot broach ot t|duc|ary duty or othor wrongtu| acts as a d|roctor or oxocut|vo ott|cor, |nc|ud|ng c|a|ms ro|at|ng to pub||c socur|t|os
mattors, and to us w|th rospoct to paymonts that may bo mado by us to thoso d|roctors and oxocut|vo ott|cors pursuant to our |ndomn|t|cat|on ob||gat|ons or othorw|so
as a mattor ot |aw.
Corta|n ot our non-omp|oyoo d|roctors may, through tho|r ro|at|onsh|ps w|th tho|r omp|oyors, bo |nsurod and/or |ndomn|t|od aga|nst corta|n ||ab|||t|os |ncurrod |n
tho|r capac|ty as mombors ot our board ot d|roctors.
1ho undorwr|t|ng agroomont w||| prov|do tor |ndomn|t|cat|on by tho undorwr|tors ot us and our ott|cors, d|roctors and omp|oyoos tor corta|n ||ab|||t|os ar|s|ng undor
tho 3ocur|t|os Act or othorw|so.
lnsotar as |ndomn|t|cat|on tor ||ab|||t|os ar|s|ng undor tho 3ocur|t|os Act may bo porm|ttod to d|roctors, ott|cors or porsons contro|||ng our company pursuant to
tho torogo|ng prov|s|ons, wo havo boon |ntormod that, |n tho op|n|on ot tho 3EC, such |ndomn|t|cat|on |s aga|nst pub||c po||cy as oxprossod |n tho 3ocur|t|os Act and |s
thorotoro unontorcoab|o.
PoIicioa and Procoduroa tor RoIatod Party 1ranaactiona
|o||ow|ng tho comp|ot|on ot th|s ottor|ng, our aud|t comm|ttoo w||| havo tho pr|mary rospons|b|||ty tor rov|ow|ng and approv|ng or d|sapprov|ng ro|atod party
transact|ons,' wh|ch aro transact|ons botwoon us and ro|atod porsons |n wh|ch tho aggrogato amount |nvo|vod oxcoods or may bo oxpoctod to oxcood $120,000 and |n
wh|ch a ro|atod porson has or w||| havo a d|roct or |nd|roct mator|a| |ntorost. Upon tho comp|ot|on ot th|s ottor|ng, our po||cy rogard|ng transact|ons botwoon us and
ro|atod porsons w||| prov|do that a ro|atod porson |s dot|nod as a d|roctor, oxocut|vo ott|cor, nom|noo tor d|roctor or groator than b% bonot|c|a| ownor ot our common
stock, |n oach caso s|nco tho bog|nn|ng ot tho most rocont|y comp|otod yoar, and any ot tho|r |mmod|ato tam||y mombors. Our aud|t comm|ttoo chartor that w||| bo |n
ottoct upon tho comp|ot|on ot th|s ottor|ng w||| prov|do that our aud|t comm|ttoo sha|| rov|ow and approvo or d|sapprovo any ro|atod party transact|ons.

142
1abIo ot Contonta
PR|NC|PAL 51OCKEOLDER5
1ho to||ow|ng tab|o sots torth corta|n |ntormat|on w|th rospoct to tho bonot|c|a| ownorsh|p ot our cap|ta| stock as ot August 81, 2018, and as adjustod to rot|oct
tho sa|o ot our common stock ottorod by us |n th|s ottor|ng assum|ng no oxorc|so ot tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common stock trom us,
tor:



oach ot our namod oxocut|vo ott|cors,



oach ot our d|roctors,



a|| ot our curront d|roctors and oxocut|vo ott|cors as a group, and



oach porson known by us to bo tho bonot|c|a| ownor ot moro than b% ot tho outstand|ng sharos ot our common stock.
Wo havo dotorm|nod bonot|c|a| ownorsh|p |n accordanco w|th tho ru|os ot tho 3EC, and thus |t roprosonts so|o or sharod vot|ng or |nvostmont powor w|th
rospoct to our socur|t|os. Un|oss othorw|so |nd|catod bo|ow, to our know|odgo, tho porsons and ont|t|os namod |n tho tab|o havo so|o vot|ng and so|o |nvostmont powor
w|th rospoct to a|| sharos that thoy bonot|c|a||y ownod, subjoct to commun|ty proporty |aws whoro app||cab|o. 1ho |ntormat|on doos not nocossar||y |nd|cato bonot|c|a|
ownorsh|p tor any othor purposo, |nc|ud|ng tor purposos ot 3oct|ons 18(d) and 18(g) ot tho 3ocur|t|os Act.
Wo havo basod our ca|cu|at|on ot tho porcontago ot bonot|c|a| ownorsh|p pr|or to th|s ottor|ng on 478,880,47b sharos ot our common stock outstand|ng as ot
August 81, 2018, wh|ch |nc|udos 888,000,000 sharos ot our common stock rosu|t|ng trom tho automat|c convors|on ot a|| outstand|ng sharos ot our C|ass A jun|or
protorrod stock and our convort|b|o protorrod stock |nto our common stock |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, as |t th|s convors|on had occurrod as ot
August 81, 2018. Wo havo basod our ca|cu|at|on ot tho porcontago ot bonot|c|a| ownorsh|p attor th|s ottor|ng on sharos ot our common stock outstand|ng
|mmod|ato|y attor tho comp|ot|on ot th|s ottor|ng, assum|ng that tho undorwr|tors w||| not oxorc|so tho|r opt|on to purchaso up to an add|t|ona| sharos ot our
common stock trom us |n tu||. Wo havo doomod sharos ot our common stock subjoct to stock opt|ons that aro curront|y oxorc|sab|o or oxorc|sab|o w|th|n 00 days ot
August 81, 2018 or |ssuab|o pursuant to l3Us wh|ch aro subjoct to vost|ng cond|t|ons oxpoctod to occur w|th|n 00 days ot August 81, 2018 to bo outstand|ng and to bo
bonot|c|a||y ownod by tho porson ho|d|ng tho stock opt|on or l3U tor tho purposo ot comput|ng tho porcontago ownorsh|p ot that porson. Wo d|d not doom thoso sharos
outstand|ng, howovor, tor tho purposo ot comput|ng tho porcontago ownorsh|p ot any othor porson.

148
1abIo ot Contonta
Un|oss othorw|so |nd|catod, tho addross ot oach bonot|c|a| ownor ||stod |n tho tab|o bo|ow |s c/o 1w|ttor, lnc., 18bb Varkot 3troot, 3u|to 000, 3an |ranc|sco,
Ca||torn|a 04108.

Numbor ot 5haroa
BonoticiaIIy
Ownod
Porcontago ot 5haroa BonoticiaIIy Ownod
Namo ot BonoticiaI Ownor Botoro tho Ottoring Attor tho Ottoring
Namod Exocutivo Otticora and Diroctora:
l|chard Costo|o 7,b80,008 1.0%
Adam 3a|n 1,722,8b0
Chr|stophor |ry - -
1ack 0orsoy 28,411,8b0 4.0%
lotor Chorn|n - -
lotor Curr|o 201,000
lotor |onton 81,b08,740 0.7%
0av|d losonb|att 288,888
Evan W||||ams b0,000,847 12.0%
A|| oxocut|vo ott|cors and d|roctors as a group (12 porsons)
55tockhoIdora:
Ent|t|os att|||atod w|th l|zv| 1ravorso
Ent|t|os att|||atod w|th 3park Cap|ta|
3onchmark Cap|ta| lartnors vl, l.l.
Ent|t|os att|||atod w|th Un|on 3quaro vonturos
Ent|t|os att|||atod w|th 031 G|oba|

loprosontsbonot|c|a| ownorsh|p ot |ossthan ono porcont (1%) ot tho outstand|ng sharosot our common stock.
1horo aro curront|y no l3Uswh|ch w||| bocomo vostod w|th|n 00 daysot August 81, 2018 that aro bonot|c|a||y ownod by tho |nd|v|dua|sand ont|t|os||stod |n tho tab|o abovo.
Cons|stsot (|) b00,020 sharosho|d ot rocord by tho l|chard Costo|o 2001 l|v|ng 1rust datod |obruary 8, 2001, tor wh|ch Vr. Costo|o sorvosastrustoo, and tho lor|n Costo|o 2001 l|v|ng 1rust datod
|obruary 8, 2001, tor wh|ch Vr. Costo|o'sspouso sorvosastrustoo, (||) 0,740,088 sharos|ssuab|o pursuant to outstand|ng stockopt|onsho|d by Vr. Costo|o wh|ch aro oxorc|sab|o w|th|n 00 daysot
August 81, 2018 and (|||) 278,000 sharos|ssuab|o pursuant to outstand|ng stockopt|onsho|d by tho lor|n Costo|o 2012 G|tt 1rust, tor wh|ch 1ho lorthorn 1rust Company sorvosastrustoo, wh|ch aro
oxorc|sab|o w|th|n 00 daysot August 81, 2018. Vr. Costo|o a|so ho|dsl3Us, nono ot wh|ch w||| bo vostod w|th|n 00 daysot August 81, 2018.
Cons|stsso|o|y ot sharos|ssuab|o pursuant to outstand|ng stockopt|onswh|ch aro oxorc|sab|o w|th|n 00 daysot August 81, 2018. Vr. 3a|n a|so ho|dsl3Us, nono ot wh|ch w||| bo vostod w|th|n 00 days
ot August 81, 2018.
Vr. |ry ho|dsl3Us, nono ot wh|ch w||| bo vostod w|th|n 00 daysot August 81, 2018.
Cons|stsot (|) 10,848,042 sharosho|d ot rocord by 1ho 1ack0orsoy lovocab|o 1rust datod 0ocombor 8, 2010, tor wh|ch Vr. 0orsoy sorvosastrustoo, (||) 2,8b4,070 sharosho|d ot rocord by 1ho 1ack
0orsoy 2010 Annu|ty 1rust, tor wh|ch Vr. 0orsoy sorvosastrustoo, and (|||) 1,208,882 sharos|ssuab|o pursuant to outstand|ng stockopt|onswh|ch aro oxorc|sab|o w|th|n 00 daysot August 81, 2018. Vr.
0orsoy hasgrantod Vr. W||||amsa proxy to voto tho sharosho|d by h|m asdoscr|bod |n tootnoto 10 bo|ow. 1h|svot|ng proxy w||| torm|nato upon tho comp|ot|on ot th|sottor|ng.
1ho Chorn|n Group, llC, tor wh|ch Vr. Chorn|n sorvosastoundor and cha|rman, ho|dsl3Us, nono ot wh|ch w||| bo vostod w|th|n 00 daysot August 81, 2018.
Cons|stsso|o|y ot sharos|ssuab|o pursuant to outstand|ng stockopt|onswh|ch aro oxorc|sab|o w|th|n 00 daysot August 81, 2018.
Cons|stsot (|) tho sharos||stod |n tootnoto bo|owwh|ch aro ho|d by 3onchmarkCap|ta| lartnorsvl, l.l. and (||) 1,088 sharosho|d ot rocord by tho |onton |am||y 1rust, tor wh|ch Vr. |onton
and h|sspouso sorvo astrustoos. Vr. |onton |sa manag|ng mombor ot 3onchmarkCap|ta| Vanagomont Co. vl, l.l.C., tho gonora| partnor ot 3onchmarkCap|ta| lartnorsvl, l.l. and, thorotoro, may
bo doomod to ho|d vot|ng and d|spos|t|vo powor ovor tho sharosho|d by 3onchmarkCap|ta| lartnorsvl, l.l.
Cons|stsso|o|y ot sharos|ssuab|o pursuant to outstand|ng stockopt|onswh|ch aro oxorc|sab|o w|th|n 00 daysot August 81, 2018.
Cons|stsot (|) 8,108,878 sharosho|d ot rocord by Vr. W||||ams, (||) 017,220 sharosho|d ot rocord by tho W||||ams2010 Oua||t|od Annu|ty 1rust 1, tor wh|ch Vr. W||||ams' spouso sorvosastrustoo,
(|||) 017,220 sharosho|d ot rocord by tho W||||ams2010 Oua||t|od Annu|ty 1rust 2, tor wh|ch Vr. W||||amssorvosastrustoo, (|v) 808,b82 sharosho|d ot rocord by tho

144
(1)
(2)
(8)
(4)
(b)
(0)
(7)
(8)
(0)
(10)
(11)
(1)
(2)
(8)
(4)
(b)
(0)
(7)
(8)
(0)
(10)
1abIo ot Contonta

W||||ams2010 Oua||t|od Annu|ty 1rust 8, tor wh|ch Vr. W||||ams' spouso sorvosastrustoo, (v) 808,b82 sharosho|d ot rocord by tho W||||ams2010 Oua||t|od Annu|ty 1rust 4, tor wh|ch Vr. W||||ams'
spouso sorvosastrustoo, (v|) 7,024,0b7 sharosho|d ot rocord by tho W||||ams2010 Oua||t|od Annu|ty 1rust b, tor wh|ch Vr. W||||ams' spouso sorvosastrustoo, (v||) b04,0b8 sharosho|d ot rocord by tho
Groon Vonstor 1rust datod lovombor 7, 2012, tor wh|ch tho Go|dman 3achs1rust Company sorvosastrustoo, (v|||) 0,148 sharosho|d ot rocord by Vr. W||||ams' spouso and (|x) 44,200,004 sharosho|d
ot rocord by Obv|ous, llC, ot wh|ch Vr. W||||ams|stho so|o mombor. Vr. W||||amsand Vr. 0orsoy aro part|osto a vot|ng agroomont that w||| torm|nato |n connoct|on w|th th|sottor|ng. Undor th|s
agroomont, Vr. 0orsoy grantod Vr. W||||amsa proxy to voto tho sharosho|d by h|m or h|stranstoroos. ln add|t|on, Obv|ous, llC|sa party to corta|n vot|ng agroomontsthat w||| torm|nato upon tho
comp|ot|on ot th|sottor|ng. Undor thoso vot|ng agroomonts, corta|n stockho|dors, |nc|ud|ng corta|n ont|t|osatt|||atod w|th l|zv| 1ravorso, havo grantod Obv|ous, llCa proxy to voto corta|n sharosho|d
by thom or tho|r transtoroos. 3|nco such vot|ng agroomontsw||| torm|nato |n connoct|on w|th th|sottor|ng, tho tab|o abovo doosnot rot|oct sharosho|d by such stockho|dorsasbo|ng bonot|c|a||y
ownod by Vr. W||||ams.
Cons|stsot (|) sharosho|d ot rocord by our curront d|roctorsand oxocut|vo ott|corsand (||) 12,784,271 sharos|ssuab|o pursuant to outstand|ng stockopt|onswh|ch aro oxorc|sab|o w|th|n 00 days
ot August 81, 2018. Our curront d|roctorsand oxocut|vo ott|corsa|so ho|d l3Us, nono ot wh|ch w||| bo vostod w|th|n 00 daysot August 81, 2018.

14b
(11)
1abIo ot Contonta
DE5CR|P1|ON OF CAP|1AL 51OCK
ConoraI
1ho to||ow|ng doscr|pt|on summar|zos corta|n |mportant torms ot our cap|ta| stock, as thoy aro oxpoctod to bo |n ottoct |mmod|ato|y pr|or to tho comp|ot|on ot
th|s ottor|ng. Wo oxpoct to adopt an amondod and rostatod cort|t|cato ot |ncorporat|on and amondod and rostatod by|aws |n connoct|on w|th tho comp|ot|on ot th|s
ottor|ng, and th|s doscr|pt|on summar|zos tho prov|s|ons that aro oxpoctod to bo |nc|udod |n such documonts. 3ocauso |t |s on|y a summary, |t doos not conta|n a|| tho
|ntormat|on that may bo |mportant to you. |or a comp|oto doscr|pt|on ot tho mattors sot torth |n th|s 0oscr|pt|on ot Cap|ta| 3tock,' you shou|d rotor to our amondod and
rostatod cort|t|cato ot |ncorporat|on, amondod and rostatod by|aws and amondod and rostatod |nvostors' r|ghts agroomont, wh|ch aro |nc|udod as oxh|b|ts to tho
rog|strat|on statomont ot wh|ch th|s prospoctus torms a part, and to tho app||cab|o prov|s|ons ot 0o|awaro |aw. lmmod|ato|y to||ow|ng tho comp|ot|on ot th|s ottor|ng, our
author|zod cap|ta| stock w||| cons|st ot sharos ot cap|ta| stock, $0.00000b par va|uo por sharo, ot wh|ch:



sharos aro dos|gnatod as common stock, and



sharos aro dos|gnatod as protorrod stock.
Assum|ng tho convors|on ot a|| outstand|ng sharos ot our C|ass A jun|or protorrod stock and our convort|b|o protorrod stock |nto sharos ot our common stock,
wh|ch w||| occur |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, as ot 1uno 80, 2018, thoro woro 472,018,7b8 sharos ot our common stock outstand|ng, ho|d by 704
stockho|dors ot rocord, and no sharos ot our protorrod stock outstand|ng. Our board ot d|roctors |s author|zod, w|thout stockho|dor approva| oxcopt as roqu|rod by tho
||st|ng standards ot tho , to |ssuo add|t|ona| sharos ot our cap|ta| stock.
Common 5tock
IvIdend RIghts
3ubjoct to protoroncos that may app|y to any sharos ot protorrod stock outstand|ng at tho t|mo, tho ho|dors ot our common stock aro ont|t|od to roco|vo
d|v|donds out ot tunds |oga||y ava||ab|o |t our board ot d|roctors, |n |ts d|scrot|on, dotorm|nos to |ssuo d|v|donds and thon on|y at tho t|mos and |n tho amounts that our
board ot d|roctors may dotorm|no. 3oo tho soct|on t|t|od 0|v|dond lo||cy' tor add|t|ona| |ntormat|on.
votIng RIghts
|o|dors ot our common stock aro ont|t|od to ono voto tor oach sharo ho|d on a|| mattors subm|ttod to a voto ot stockho|dors. Wo havo not prov|dod tor
cumu|at|vo vot|ng tor tho o|oct|on ot d|roctors |n our amondod and rostatod cort|t|cato ot |ncorporat|on. Our amondod and rostatod cort|t|cato ot |ncorporat|on ostab||shos
a c|ass|t|od board ot d|roctors that |s d|v|dod |nto throo c|assos w|th staggorod throo-yoar torms. On|y tho d|roctors |n ono c|ass w||| bo subjoct to o|oct|on by a p|ura||ty
ot tho votos cast at oach annua| moot|ng ot stockho|dors, w|th tho d|roctors |n tho othor c|assos cont|nu|ng tor tho roma|ndor ot tho|r rospoct|vo throo-yoar torms.
No PreemptIve or 8ImIlar RIghts
Our common stock |s not ont|t|od to proompt|vo r|ghts, and |s not subjoct to convors|on, rodompt|on or s|nk|ng tund prov|s|ons.

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1abIo ot Contonta
RIght to ReceIve LIquIdatIon IstrIbutIons
lt wo bocomo subjoct to a ||qu|dat|on, d|sso|ut|on or w|nd|ng-up, tho assots |oga||y ava||ab|o tor d|str|but|on to our stockho|dors wou|d bo d|str|butab|o ratab|y
among tho ho|dors ot our common stock and any part|c|pat|ng protorrod stock outstand|ng at that t|mo, subjoct to pr|or sat|stact|on ot a|| outstand|ng dobt and ||ab|||t|os
and tho protoront|a| r|ghts ot and tho paymont ot ||qu|dat|on protoroncos, |t any, on any outstand|ng sharos ot protorrod stock.
Fully PaId and Non-Assessable
A|| ot tho outstand|ng sharos ot our common stock aro, and tho sharos ot our common stock to bo |ssuod pursuant to th|s ottor|ng w||| bo, tu||y pa|d and non-
assossab|o.
Protorrod 5tock
Our board ot d|roctors |s author|zod, subjoct to ||m|tat|ons proscr|bod by 0o|awaro |aw, to |ssuo protorrod stock |n ono or moro sor|os, to ostab||sh trom t|mo to
t|mo tho numbor ot sharos to bo |nc|udod |n oach sor|os and to t|x tho dos|gnat|on, powors, protoroncos and r|ghts ot tho sharos ot oach sor|os and any ot |ts
qua||t|cat|ons, ||m|tat|ons or rostr|ct|ons, |n oach caso w|thout turthor voto or act|on by our stockho|dors. Our board ot d|roctors can a|so |ncroaso or docroaso tho
numbor ot sharos ot any sor|os ot protorrod stock, but not bo|ow tho numbor ot sharos ot that sor|os thon outstand|ng, w|thout any turthor voto or act|on by our
stockho|dors. Our board ot d|roctors may author|zo tho |ssuanco ot protorrod stock w|th vot|ng or convors|on r|ghts that cou|d advorso|y attoct tho vot|ng powor or othor
r|ghts ot tho ho|dors ot our common stock. 1ho |ssuanco ot protorrod stock, wh||o prov|d|ng t|ox|b|||ty |n connoct|on w|th poss|b|o acqu|s|t|ons and othor corporato
purposos, cou|d, among othor th|ngs, havo tho ottoct ot do|ay|ng, dotorr|ng or provont|ng a chango |n contro| ot our company and m|ght advorso|y attoct tho markot pr|co
ot our common stock and tho vot|ng and othor r|ghts ot tho ho|dors ot our common stock. Wo havo no curront p|an to |ssuo any sharos ot protorrod stock.
Otiona
As ot 1uno 80, 2018, wo had outstand|ng opt|ons to purchaso an aggrogato ot 44,1b7,001 sharos ot our common stock, w|th a wo|ghtod-avorago oxorc|so pr|co
ot approx|mato|y $1.82 por sharo, undor our oqu|ty componsat|on p|ans, tho oqu|ty componsat|on p|ans wo assumod |n connoct|on w|th corta|n ot our acqu|s|t|ons and a
stand-a|ono opt|on agroomont.
R5ua
As ot 1uno 80, 2018, wo had outstand|ng b0,018,002 sharos ot our common stock subjoct to l3Us, w|th a wo|ghtod-avorago grant-dato ta|r va|uo ot
approx|mato|y $1b.10 por sharo, undor our 2007 l|an. Our outstand|ng lro-2018 l3Us w||| gonora||y vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a
portormanco cond|t|on. |or tho major|ty ot our outstand|ng l3Us, tho sorv|co cond|t|on w||| bo sat|st|od as to 2b% ot tho lro-2018 l3Us upon comp|ot|on ot ono yoar ot
sorv|co moasurod trom tho vost|ng commoncomont dato, and tho ba|anco w||| vost |n 80 succoss|vo oqua| month|y |nsta||monts, subjoct to cont|nuod sorv|co through
oach such vost|ng dato. 1ho portormanco cond|t|on tor tho lro-2018 l3Us w||| bo sat|st|od on tho oar||or ot (|) tho dato that |s tho oar||or ot (x) s|x months attor tho
ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|s ottor|ng (wh|ch wo may o|oct to acco|orato to |obruary 1bth), and
(||) tho dato ot a chango |n contro|. On |obruary 18, 2018, wo bogan grant|ng l3Us to U.3. omp|oyoos wh|ch d|d not conta|n a portormanco cond|t|on, howovor, thoso
l3Us conta|n a prov|s|on proh|b|t|ng sott|omont pr|or to August 1b, 2014. 1ho major|ty ot thoso lost-2018 l3Us vost ovor a sorv|co por|od ot tour yoars.

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1abIo ot Contonta
Warrant
As ot 1uno 80, 2018, wo had an outstand|ng warrant to purchaso up to 110,b12 sharos ot our common stock, on an as-convortod bas|s, w|th an oxorc|so pr|co
ot $0.84 por sharo. 1h|s warrant |s oxorc|sab|o at any t|mo on or botoro 0ocombor 10, 2018.
Voting Agroomonta
Wo havo ontorod |nto vot|ng agroomonts w|th l1lC ll, llC and Comp||anco Vattor 3orv|cos, llC, undor wh|ch thoso stockho|dors havo agrood to voto tho|r
sharos ot our cap|ta| stock as d|roctod by, and havo grantod an |rrovocab|o proxy to, an ott|cor appo|ntod tor tho purposo ot act|ng as a proxyho|dor by our board ot
d|roctors at such ott|cor's d|scrot|on on mattors to bo votod upon by stockho|dors, subjoct to corta|n ||m|tod oxcopt|ons. 1hoso vot|ng agroomonts w||| roma|n |n ottoct tor
a por|od ot 180 days attor tho dato ot th|s prospoctus.
Rogiatration Righta
Attor tho comp|ot|on ot th|s ottor|ng, corta|n ho|dors ot our common stock w||| bo ont|t|od to r|ghts w|th rospoct to tho rog|strat|on ot tho|r sharos undor tho
3ocur|t|os Act. 1hoso rog|strat|on r|ghts aro conta|nod |n our Amondod and lostatod lnvostors' l|ghts Agroomont, or llA, datod as ot 1u|y 10, 2007, as most rocont|y
amondod on lovombor 14, 2011. Wo and corta|n ho|dors ot our protorrod stock aro part|os to tho llA. 1ho rog|strat|on r|ghts sot torth |n tho llA w||| oxp|ro t|vo yoars
to||ow|ng tho comp|ot|on ot th|s ottor|ng, or, w|th rospoct to any part|cu|ar stockho|dor, whon such stockho|dor |s ab|o to so|| a|| ot |ts sharos pursuant to lu|o 144 ot tho
3ocur|t|os Act or a s|m||ar oxompt|on dur|ng any 00-day por|od. Wo w||| pay tho rog|strat|on oxponsos (othor than undorwr|t|ng d|scounts, so|||ng comm|ss|ons and
stock transtor taxos) ot tho ho|dors ot tho sharos rog|storod pursuant to tho rog|strat|ons doscr|bod bo|ow. ln an undorwr|tton ottor|ng, tho manag|ng undorwr|tor, |t any,
has tho r|ght, subjoct to spoc|t|od cond|t|ons, to ||m|t tho numbor ot sharos such ho|dors may |nc|udo. Wo oxpoct that our stockho|dors w||| wa|vo tho|r r|ghts undor tho
llA (|) to not|co ot th|s ottor|ng and (||) to |nc|udo tho|r rog|strab|o sharos |n th|s ottor|ng. ln add|t|on, |n connoct|on w|th th|s ottor|ng, wo oxpoct that oach stockho|dor that
has rog|strat|on r|ghts w||| agroo not to so|| or othorw|so d|sposo ot any socur|t|os w|thout tho pr|or wr|tton consont ot tho undorwr|tors tor a por|od ot 180 days attor tho
dato ot th|s prospoctus, subjoct to corta|n torms and cond|t|ons and oar|y ro|oaso ot corta|n ho|dors |n spoc|t|od c|rcumstancos. 3oo tho soct|on t|t|od Undorwr|tors' tor
add|t|ona| |ntormat|on rogard|ng such rostr|ct|ons.
emand RegIstratIon RIghts
Attor tho comp|ot|on ot th|s ottor|ng, tho ho|dors ot up to approx|mato|y sharos ot our common stock w||| bo ont|t|od to corta|n domand rog|strat|on
r|ghts. At any t|mo bog|nn|ng 180 days attor tho ottoct|vo dato ot th|s ottor|ng, tho ho|dors ot at |oast b0% ot thoso sharos thon outstand|ng can roquost that wo rog|stor
tho ottor and sa|o ot tho|r sharos. Wo aro ob||gatod to ottoct on|y two such rog|strat|ons. 3uch roquost tor rog|strat|on must covor socur|t|os tho ant|c|patod aggrogato
pub||c ottor|ng pr|co ot wh|ch, botoro paymont ot undorwr|t|ng d|scounts and comm|ss|ons, |s at |oast $20,000,000. lt wo dotorm|no that |t wou|d bo sor|ous|y dotr|monta|
to our stockho|dors to ottoct such a domand rog|strat|on, wo havo tho r|ght to dotor such rog|strat|on, not moro than onco |n any 12-month por|od, tor a por|od ot up to
120 days.
PIggyback RegIstratIon RIghts
Attor tho comp|ot|on ot th|s ottor|ng, |t wo proposo to rog|stor tho ottor and sa|o ot our common stock undor tho 3ocur|t|os Act, |n connoct|on w|th tho pub||c
ottor|ng ot such common stock tho ho|dors

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1abIo ot Contonta
ot up to approx|mato|y sharos ot our common stock (|nc|ud|ng 110,b12 sharos ot our common stock, on an as-convortod bas|s, |ssuab|o upon tho oxorc|so ot a
warrant to purchaso convort|b|o protorrod stock that was outstand|ng as ot 1uno 80, 2018) w||| bo ont|t|od to corta|n p|ggyback' rog|strat|on r|ghts a||ow|ng tho ho|dors to
|nc|udo tho|r sharos |n such rog|strat|on, subjoct to corta|n markot|ng and othor ||m|tat|ons. As a rosu|t, whonovor wo proposo to t||o a rog|strat|on statomont undor tho
3ocur|t|os Act, othor than w|th rospoct to (1) a domand rog|strat|on, (2) a |orm 3-8 rog|strat|on, (8) a rog|strat|on ro|atod to any omp|oyoo bonot|t p|an or a corporato
roorgan|zat|on or othor transact|on covorod by lu|o 14b promu|gatod undor tho 3ocur|t|os Act or (4) a rog|strat|on on any rog|strat|on torm wh|ch doos not porm|t
socondary sa|os or doos not |nc|udo substant|a||y tho samo |ntormat|on as wou|d bo roqu|rod to bo |nc|udod |n a rog|strat|on statomont covor|ng tho pub||c ottor|ng ot our
common stock, tho ho|dors ot thoso sharos aro ont|t|od to not|co ot tho rog|strat|on and havo tho r|ght, subjoct to corta|n ||m|tat|ons, to |nc|udo tho|r sharos |n tho
rog|strat|on.
8-3 RegIstratIon RIghts
Attor tho comp|ot|on ot th|s ottor|ng, tho ho|dors ot up to approx|mato|y sharos ot our common stock (|nc|ud|ng 110,b12 sharos ot our common stock, on
an as-convortod bas|s, |ssuab|o upon tho oxorc|so ot a warrant to purchaso convort|b|o protorrod stock that was outstand|ng as ot 1uno 80, 2018) w||| bo ont|t|od to
corta|n |orm 3-8 rog|strat|on r|ghts. 1ho ho|dors ot at |oast 10% ot thoso sharos thon outstand|ng may mako a wr|tton roquost that wo rog|stor tho ottor and sa|o ot tho|r
sharos on a rog|strat|on statomont on |orm 3-8 |t wo aro o||g|b|o to t||o a rog|strat|on statomont on |orm 3-8 so |ong as tho roquost covors socur|t|os tho ant|c|patod
aggrogato pub||c ottor|ng pr|co ot wh|ch, botoro paymont ot undorwr|t|ng d|scounts and comm|ss|ons, |s at |oast $b,000,000. Ono ot our stockho|dors and |ts att|||atos
may a|so roquost that wo rog|stor a|| or a port|on ot tho|r sharos on ono occas|on. 1hoso stockho|dors may mako an un||m|tod numbor ot roquosts tor rog|strat|on on
|orm 3-8, howovor, wo w||| not bo roqu|rod to ottoct a rog|strat|on on |orm 3-8 |t wo havo ottoctod two such rog|strat|ons w|th|n tho 12-month por|od procod|ng tho dato
ot tho roquost. Add|t|ona||y, |t wo dotorm|no that |t wou|d bo sor|ous|y dotr|monta| to our stockho|dors to ottoct such a rog|strat|on, wo havo tho r|ght to dotor such
rog|strat|on, not moro than onco |n any 12-month por|od, tor a por|od ot up to 120 days.
Anti-1akoovor Proviaiona
1ho prov|s|ons ot 0o|awaro |aw, our amondod and rostatod cort|t|cato ot |ncorporat|on and our amondod and rostatod by|aws, wh|ch aro summar|zod bo|ow, may
havo tho ottoct ot do|ay|ng, dotorr|ng or d|scourag|ng anothor porson trom acqu|r|ng contro| ot our company. 1hoy aro a|so dos|gnod, |n part, to oncourago porsons
sook|ng to acqu|ro contro| ot us to nogot|ato t|rst w|th our board ot d|roctors. Wo bo||ovo that tho bonot|ts ot |ncroasod protoct|on ot our potont|a| ab|||ty to nogot|ato w|th
an untr|ond|y or unso||c|tod acqu|ror outwo|gh tho d|sadvantagos ot d|scourag|ng a proposa| to acqu|ro us bocauso nogot|at|on ot thoso proposa|s cou|d rosu|t |n an
|mprovomont ot tho|r torms.
elaware Law
Wo w||| bo govornod by tho prov|s|ons ot 3oct|on 208 ot tho 0o|awaro Gonora| Corporat|on law. ln gonora|, 3oct|on 208 proh|b|ts a pub||c 0o|awaro corporat|on
trom ongag|ng |n a bus|noss comb|nat|on' w|th an |ntorostod stockho|dor' tor a por|od ot throo yoars attor tho dato ot tho transact|on |n wh|ch tho porson bocamo an
|ntorostod stockho|dor, un|oss:



tho transact|on was approvod by tho board ot d|roctors pr|or to tho t|mo that tho stockho|dor bocamo an |ntorostod stockho|dor,




upon consummat|on ot tho transact|on wh|ch rosu|tod |n tho stockho|dor bocom|ng an |ntorostod stockho|dor, tho |ntorostod stockho|dor ownod at |oast 8b%
ot tho vot|ng stock ot tho

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1abIo ot Contonta

corporat|on outstand|ng at tho t|mo tho transact|on commoncod, oxc|ud|ng sharos ownod by d|roctors who aro a|so ott|cors ot tho corporat|on and sharos
ownod by omp|oyoo stock p|ans |n wh|ch omp|oyoo part|c|pants do not havo tho r|ght to dotorm|no cont|dont|a||y whothor sharos ho|d subjoct to tho p|an w|||
bo tondorod |n a tondor or oxchango ottor, or




at or subsoquont to tho t|mo tho stockho|dor bocamo an |ntorostod stockho|dor, tho bus|noss comb|nat|on was approvod by tho board ot d|roctors and
author|zod at an annua| or spoc|a| moot|ng ot tho stockho|dors, and not by wr|tton consont, by tho att|rmat|vo voto ot at |oast two-th|rds ot tho outstand|ng
vot|ng stock wh|ch |s not ownod by tho |ntorostod stockho|dor.
ln gonora|, 3oct|on 208 dot|nos a bus|noss comb|nat|on' to |nc|udo morgors, assot sa|os and othor transact|ons rosu|t|ng |n t|nanc|a| bonot|t to a stockho|dor
and an |ntorostod stockho|dor' as a porson who, togothor w|th att|||atos and assoc|atos, owns, or w|th|n throo yoars d|d own, 1b% or moro ot tho corporat|on's
outstand|ng vot|ng stock. 1hoso prov|s|ons may havo tho ottoct ot do|ay|ng, dotorr|ng or provont|ng changos |n contro| ot our company.
Amended and Restated CertI|Icate o| lncorporatIon and Amended and Restated Bylaw ProvIsIons
Our amondod and rostatod cort|t|cato ot |ncorporat|on and our amondod and rostatod by|aws w||| |nc|udo a numbor ot prov|s|ons that cou|d dotor host||o
takoovors or do|ay or provont changos |n contro| ot our board ot d|roctors or managomont toam, |nc|ud|ng tho to||ow|ng:
Booro o Llroctors Vocooclos. Our amondod and rostatod cort|t|cato ot |ncorporat|on and amondod and rostatod by|aws w||| author|zo on|y our board ot
d|roctors to t||| vacant d|roctorsh|ps, |nc|ud|ng now|y croatod soats. ln add|t|on, tho numbor ot d|roctors const|tut|ng our board ot d|roctors w||| bo porm|ttod to bo sot on|y
by a roso|ut|on adoptod by a major|ty voto ot our ont|ro board ot d|roctors. 1hoso prov|s|ons wou|d provont a stockho|dor trom |ncroas|ng tho s|zo ot our board ot d|roctors
and thon ga|n|ng contro| ot our board ot d|roctors by t||||ng tho rosu|t|ng vacanc|os w|th |ts own nom|noos. 1h|s w||| mako |t moro d|tt|cu|t to chango tho compos|t|on ot our
board ot d|roctors and w||| promoto cont|nu|ty ot managomont.
C|osslloo Booro. Our amondod and rostatod cort|t|cato ot |ncorporat|on and amondod and rostatod by|aws w||| prov|do that our board ot d|roctors |s c|ass|t|od
|nto throo c|assos ot d|roctors. A th|rd party may bo d|scouragod trom mak|ng a tondor ottor or othorw|so attompt|ng to obta|n contro| ot us as |t |s moro d|tt|cu|t and t|mo
consum|ng tor stockho|dors to rop|aco a major|ty ot tho d|roctors on a c|ass|t|od board ot d|roctors. 3oo tho soct|on t|t|od Vanagomont-C|ass|t|od 3oard ot 0|roctors.'
5tockbo|oor Actloo, 5poclo| Vootlog o 5tockbo|oors. Our amondod and rostatod cort|t|cato ot |ncorporat|on w||| prov|do that our stockho|dors may not tako
act|on by wr|tton consont, but may on|y tako act|on at annua| or spoc|a| moot|ngs ot our stockho|dors. As a rosu|t, a ho|dor contro|||ng a major|ty ot our cap|ta| stock
wou|d not bo ab|o to amond our amondod and rostatod by|aws or romovo d|roctors w|thout ho|d|ng a moot|ng ot our stockho|dors ca||od |n accordanco w|th our amondod
and rostatod by|aws. Our amondod and rostatod by|aws w||| turthor prov|do that spoc|a| moot|ngs ot our stockho|dors may bo ca||od on|y by a major|ty ot our board ot
d|roctors, tho cha|rman ot our board ot d|roctors, our Ch|ot Exocut|vo Ott|cor or our lros|dont, thus proh|b|t|ng a stockho|dor trom ca|||ng a spoc|a| moot|ng. 1hoso
prov|s|ons m|ght do|ay tho ab|||ty ot our stockho|dors to torco cons|dorat|on ot a proposa| or tor stockho|dors contro|||ng a major|ty ot our cap|ta| stock to tako any
act|on, |nc|ud|ng tho romova| ot d|roctors.
Aovooco Notlco Roqolromoots or 5tockbo|oor Proposo|s ooo Llroctor Nomlootloos. Our amondod and rostatod by|aws w||| prov|do advanco not|co
procoduros tor stockho|dors sook|ng to br|ng bus|noss botoro our annua| moot|ng ot stockho|dors or to nom|nato cand|datos tor o|oct|on as d|roctors

1b0
1abIo ot Contonta
at our annua| moot|ng ot stockho|dors. Our amondod and rostatod by|aws w||| a|so spoc|ty corta|n roqu|romonts rogard|ng tho torm and contont ot a stockho|dor's
not|co. 1hoso prov|s|ons m|ght proc|udo our stockho|dors trom br|ng|ng mattors botoro our annua| moot|ng ot stockho|dors or trom mak|ng nom|nat|ons tor d|roctors at
our annua| moot|ng ot stockho|dors |t tho propor procoduros aro not to||owod. Wo oxpoct that thoso prov|s|ons may a|so d|scourago or dotor a potont|a| acqu|ror trom
conduct|ng a so||c|tat|on ot prox|os to o|oct tho acqu|ror's own s|ato ot d|roctors or othorw|so attompt|ng to obta|n contro| ot our company.
No Como|otlvo Votlog. 1ho 0o|awaro Gonora| Corporat|on law prov|dos that stockho|dors aro not ont|t|od to cumu|ato votos |n tho o|oct|on ot d|roctors un|oss
a corporat|on's cort|t|cato ot |ncorporat|on prov|dos othorw|so. Our amondod and rostatod cort|t|cato ot |ncorporat|on doos not prov|do tor cumu|at|vo vot|ng.
Llroctors Romovoo Oo|y or Cooso. Our amondod and rostatod cort|t|cato ot |ncorporat|on w||| prov|do that stockho|dors may romovo d|roctors on|y tor causo.
Amooomoot o Cbortor Provlsloos. Any amondmont ot tho abovo prov|s|ons |n our amondod and rostatod cort|t|cato ot |ncorporat|on wou|d roqu|ro approva| by
ho|dors ot at |oast 80% ot our thon outstand|ng cap|ta| stock.
lssoooco o Uoooslgootoo Proorroo 5tock. Our board ot d|roctors w||| havo tho author|ty, w|thout turthor act|on by our stockho|dors, to |ssuo up to
sharos ot undos|gnatod protorrod stock w|th r|ghts and protoroncos, |nc|ud|ng vot|ng r|ghts, dos|gnatod trom t|mo to t|mo by our board ot d|roctors. 1ho
ox|stonco ot author|zod but un|ssuod sharos ot protorrod stock wou|d onab|o our board ot d|roctors to rondor moro d|tt|cu|t or to d|scourago an attompt to obta|n contro|
ot us by moans ot a morgor, tondor ottor, proxy contost or othor moans.
1ranator Agont and Rogiatrar
Upon tho comp|ot|on ot th|s ottor|ng, tho transtor agont and rog|strar tor our common stock w||| bo . 1ho transtor agont and rog|strar's addross |s
.
Limitationa ot LiabiIity and |ndomnitication
3oo Corta|n lo|at|onsh|ps and lo|atod larty 1ransact|ons-l|m|tat|on ot l|ab|||ty and lndomn|t|cat|on ot Ott|cors and 0|roctors.'
Liating
Wo |ntond to app|y tor tho ||st|ng ot our common stock on tho undor tho symbo| 1W1l'.

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1abIo ot Contonta
5EARE5 EL|C|BLE FOR Fu1uRE 5ALE
lr|or to th|s ottor|ng, thoro has boon no pub||c markot tor our common stock, and wo cannot prod|ct tho ottoct, |t any, that markot sa|os ot sharos ot our
common stock or tho ava||ab|||ty ot sharos ot our common stock tor sa|o w||| havo on tho markot pr|co ot our common stock prova|||ng trom t|mo to t|mo. |uturo sa|os ot
our common stock |n tho pub||c markot, or tho ava||ab|||ty ot such sharos tor sa|o |n tho pub||c markot, cou|d advorso|y attoct markot pr|cos prova|||ng trom t|mo to t|mo.
As doscr|bod bo|ow, on|y a ||m|tod numbor ot sharos ot our common stock w||| bo ava||ab|o tor sa|o short|y attor th|s ottor|ng duo to contractua| and |oga| rostr|ct|ons on
rosa|o. lovortho|oss, sa|os ot our common stock |n tho pub||c markot attor such rostr|ct|ons |apso, or tho porcopt|on that thoso sa|os may occur, cou|d advorso|y attoct
tho prova|||ng markot pr|co at such t|mo and our ab|||ty to ra|so oqu|ty cap|ta| |n tho tuturo.
|o||ow|ng tho comp|ot|on ot th|s ottor|ng, basod on tho numbor ot sharos ot our cap|ta| stock outstand|ng as ot 1uno 80, 2018, wo w||| havo a tota| ot
sharos ot our common stock outstand|ng. Ot thoso outstand|ng sharos, a|| sharos ot our common stock so|d |n th|s ottor|ng w||| bo troo|y tradab|o,
oxcopt that any sharos purchasod |n th|s ottor|ng by our att|||atos, as that torm |s dot|nod |n lu|o 144 undor tho 3ocur|t|os Act, wou|d on|y bo ab|o to bo so|d |n
comp||anco w|th tho lu|o 144 ||m|tat|ons doscr|bod bo|ow.
1ho roma|n|ng outstand|ng sharos ot our common stock w||| bo, and sharos undor|y|ng outstand|ng l3Us and sharos subjoct to stock opt|ons w||| bo upon
|ssuanco, doomod rostr|ctod socur|t|os' as dot|nod |n lu|o 144 undor tho 3ocur|t|os Act. lostr|ctod socur|t|os may bo so|d |n tho pub||c markot on|y |t thoy aro
rog|storod or |t thoy qua||ty tor an oxompt|on trom rog|strat|on undor lu|o 144 or lu|o 701 undor tho 3ocur|t|os Act, wh|ch ru|os aro summar|zod bo|ow. A|| ot our
oxocut|vo ott|cors, d|roctors and ho|dors ot substant|a||y a|| ot our cap|ta| stock and socur|t|os convort|b|o |nto or oxchangoab|o tor our cap|ta| stock havo ontorod |nto
markot standott agroomonts w|th us or w||| ontor |nto |ock-up agroomonts w|th tho undorwr|tors undor wh|ch thoy havo agrood or w||| agroo, subjoct to spoc|t|c
oxcopt|ons, not to so|| any ot our stock tor 180 days to||ow|ng tho dato ot th|s prospoctus. As a rosu|t ot thoso agroomonts and tho prov|s|ons ot our llA doscr|bod
abovo undor tho soct|on t|t|od 0oscr|pt|on ot Cap|ta| 3tock-log|strat|on l|ghts,' and subjoct to tho prov|s|ons ot lu|o 144 or lu|o 701, sharos ot our common stock
w||| bo ava||ab|o tor sa|o |n tho pub||c markot as to||ows:




bog|nn|ng on tho dato ot th|s prospoctus, a|| sharos ot our common stock so|d |n th|s ottor|ng w||| bo |mmod|ato|y ava||ab|o tor sa|o |n tho pub||c
markot,




bog|nn|ng as oar|y as |obruary 1b, 2014, up to an aggrogato ot sharos ot our common stock that aro ho|d by our omp|oyoos who aro not oxocut|vo
ott|cors may bo o||g|b|o tor sa|o |n tho pub||c markot |n ordor to sat|sty tho |ncomo tax ob||gat|ons ot such omp|oyoos rosu|t|ng trom tho vost|ng and
sott|omont ot a port|on ot tho outstand|ng lro-2018 l3Us (or up to an aggrogato ot sharos ot our common stock ho|d by our omp|oyoos who aro not
oxocut|vo ott|cors |t wo chooso to undortako a not sott|omont ot a|| ot thoso awards to sat|sty a port|on ot such |ncomo tax ob||gat|ons), and




bog|nn|ng 181 days attor tho dato ot th|s prospoctus, tho roma|ndor ot tho sharos ot our common stock w||| bo o||g|b|o tor sa|o |n tho pub||c markot trom t|mo
to t|mo thoroattor, subjoct |n somo casos to tho vo|umo and othor rostr|ct|ons ot lu|o 144, as doscr|bod bo|ow.
Lock-u Agroomonta
Wo, our oxocut|vo ott|cors, d|roctors and othor ho|dors ot our cap|ta| stock and socur|t|os convort|b|o |nto or oxchangoab|o tor our cap|ta| stock havo agrood or
w||| agroo that, subjoct to corta|n oxcopt|ons, tor a por|od ot 180 days attor tho dato ot th|s prospoctus, wo and thoy w||| not, w|thout tho pr|or wr|tton consont ot
Go|dman, 3achs 8 Co., d|sposo ot or hodgo any sharos or any socur|t|os

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convort|b|o |nto or oxchangoab|o tor sharos ot our cap|ta| stock. Undor tho torms ot tho |ock-up agroomonts, bog|nn|ng |obruary 1b, 2014, omp|oyoos who aro not
oxocut|vo ott|cors may bo o||g|b|o to so|| up to an aggrogato ot sharos ot our common stock |n tho pub||c markot |n ordor to sat|sty tho |ncomo tax ob||gat|ons ot
such omp|oyoos rosu|t|ng trom tho vost|ng and sott|omont ot a port|on ot tho outstand|ng lro-2018 l3Us (or up to an aggrogato ot sharos ot our common stock
ho|d by our omp|oyoos who aro not oxocut|vo ott|cors |t wo chooso to undortako a not sott|omont ot a|| ot thoso awards to sat|sty a port|on ot such |ncomo tax
ob||gat|ons). Go|dman, 3achs 8 Co. may, |n |ts d|scrot|on, ro|oaso any ot tho socur|t|os subjoct to thoso |ock-up agroomonts at any t|mo.
RuIo 144
ln gonora|, undor lu|o 144 as curront|y |n ottoct, onco wo havo boon subjoct to tho pub||c company roport|ng roqu|romonts ot 3oct|on 18 or 3oct|on 1b(d) ot tho
Exchango Act tor at |oast 00 days, a porson who |s not doomod to havo boon ono ot our att|||atos tor purposos ot tho 3ocur|t|os Act at any t|mo dur|ng tho 00 days
procod|ng a sa|o and who has bonot|c|a||y ownod tho sharos ot our common stock proposod to bo so|d tor at |oast s|x months |s ont|t|od to so|| thoso sharos w|thout
comp|y|ng w|th tho mannor ot sa|o, vo|umo ||m|tat|on or not|co prov|s|ons ot lu|o 144, subjoct to comp||anco w|th tho pub||c |ntormat|on roqu|romonts ot lu|o 144. lt such
a porson has bonot|c|a||y ownod tho sharos proposod to bo so|d tor at |oast ono yoar, |nc|ud|ng tho ho|d|ng por|od ot any pr|or ownor othor than our att|||atos, thon that
porson wou|d bo ont|t|od to so|| thoso sharos w|thout comp|y|ng w|th any ot tho roqu|romonts ot lu|o 144.
ln gonora|, undor lu|o 144, as curront|y |n ottoct, our att|||atos or porsons so|||ng sharos ot our common stock on boha|t ot our att|||atos aro ont|t|od to so|| upon
oxp|rat|on ot tho markot standott agroomonts and |ock-up agroomonts doscr|bod abovo, w|th|n any throo-month por|od, a numbor ot sharos that doos not oxcood tho
groator ot:



1% ot tho numbor ot sharos ot our cap|ta| stock thon outstand|ng, wh|ch w||| oqua| approx|mato|y sharos |mmod|ato|y attor th|s ottor|ng, or




tho avorago wook|y trad|ng vo|umo ot our common stock dur|ng tho tour ca|ondar wooks procod|ng tho t|||ng ot a not|co on |orm 144 w|th rospoct to that
sa|o.
3a|os undor lu|o 144 by our att|||atos or porsons so|||ng sharos ot our common stock on boha|t ot our att|||atos aro a|so subjoct to corta|n mannor ot sa|o
prov|s|ons and not|co roqu|romonts and to tho ava||ab|||ty ot curront pub||c |ntormat|on about us.
RuIo 701
lu|o 701 gonora||y a||ows a stockho|dor who purchasod sharos ot our cap|ta| stock pursuant to a wr|tton componsatory p|an or contract and who |s not doomod
to havo boon an att|||ato ot our company dur|ng tho |mmod|ato|y procod|ng 00 days to so|| thoso sharos |n ro||anco upon lu|o 144, but w|thout bo|ng roqu|rod to comp|y
w|th tho pub||c |ntormat|on, ho|d|ng por|od, vo|umo ||m|tat|on or not|co prov|s|ons ot lu|o 144. lu|o 701 a|so porm|ts att|||atos ot our company to so|| tho|r lu|o 701
sharos undor lu|o 144 w|thout comp|y|ng w|th tho ho|d|ng por|od roqu|romonts ot lu|o 144. A|| ho|dors ot lu|o 701 sharos, howovor, aro roqu|rod to wa|t unt|| 00 days
attor tho dato ot th|s prospoctus botoro so|||ng thoso sharos pursuant to lu|o 701.
Rogiatration Righta
lursuant to our llA, tho ho|dors ot up to approx|mato|y sharos ot our common stock (|nc|ud|ng 110,b12 sharos ot our common stock, on an as-
convortod bas|s, |ssuab|o upon tho oxorc|so ot a warrant to purchaso convort|b|o protorrod stock that was outstand|ng as ot 1uno 80, 2018), or tho|r

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transtoroos, w||| bo ont|t|od to corta|n r|ghts w|th rospoct to tho rog|strat|on ot tho ottor and sa|o ot thoso sharos undor tho 3ocur|t|os Act. 3oo tho soct|on t|t|od
0oscr|pt|on ot Cap|ta| 3tock-log|strat|on l|ghts' tor a doscr|pt|on ot thoso rog|strat|on r|ghts. lt tho ottor and sa|o ot thoso sharos ot our common stock aro rog|storod,
tho sharos w||| bo troo|y tradab|o w|thout rostr|ct|on undor tho 3ocur|t|os Act, subjoct to tho lu|o 144 ||m|tat|ons app||cab|o to att|||atos, and a |argo numbor ot sharos
may bo so|d |nto tho pub||c markot.
Rogiatration 5tatomont
Wo |ntond to t||o a rog|strat|on statomont on |orm 3-8 undor tho 3ocur|t|os Act prompt|y attor tho comp|ot|on ot th|s ottor|ng to rog|stor sharos ot our common
stock subjoct to l3Us and opt|ons outstand|ng, as wo|| as rosorvod tor tuturo |ssuanco, undor our oqu|ty componsat|on p|ans and tho oqu|ty componsat|on p|ans wo
assumod |n connoct|on w|th corta|n ot our acqu|s|t|ons. 1ho rog|strat|on statomont on |orm 3-8 |s oxpoctod to bocomo ottoct|vo |mmod|ato|y upon t|||ng, and sharos ot
our common stock covorod by tho rog|strat|on statomont w||| thon bocomo o||g|b|o tor sa|o |n tho pub||c markot, subjoct to tho lu|o 144 ||m|tat|ons app||cab|o to
att|||atos, vost|ng rostr|ct|ons and any app||cab|o markot standott agroomonts and |ock-up agroomonts. 3oo tho soct|on t|t|od Exocut|vo Componsat|on-Emp|oyoo
3onot|t and 3tock l|ans' tor a doscr|pt|on ot our oqu|ty componsat|on p|ans.

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NA1ER|AL u.5. FEDERAL |NCONE 1AX CON5EOuENCE5 1O NON-u.5. EOLDER5 OF OuR CONNON 51OCK
1ho to||ow|ng |s a summary ot tho mator|a| U.3. todora| |ncomo tax consoquoncos to non-U.3. ho|dors (as dot|nod bo|ow) ot tho ownorsh|p and d|spos|t|on ot our
common stock, but doos not purport to bo a comp|oto ana|ys|s ot a|| tho potont|a| tax cons|dorat|ons ro|at|ng thoroto. 1h|s summary |s basod upon tho prov|s|ons ot tho
Codo, 1roasury rogu|at|ons promu|gatod thoroundor, adm|n|strat|vo ru||ngs and jud|c|a| doc|s|ons, a|| as ot tho dato horoot. 1hoso author|t|os may bo changod, poss|b|y
rotroact|vo|y, so as to rosu|t |n U.3. todora| |ncomo tax consoquoncos d|ttoront trom thoso sot torth bo|ow. Wo havo not sought any ru||ng trom tho lntorna| lovonuo
3orv|co, or tho ll3, w|th rospoct to tho statomonts mado and tho conc|us|ons roachod |n tho to||ow|ng summary, and thoro can bo no assuranco that tho ll3 w||| agroo
w|th such statomonts and conc|us|ons.
1h|s summary a|so doos not addross tho tax cons|dorat|ons ar|s|ng undor tho |aws ot any non-U.3., stato or |oca| jur|sd|ct|on or undor U.3. todora| g|tt and
ostato tax |aws, oxcopt to tho ||m|tod oxtont sot torth bo|ow. ln add|t|on, th|s d|scuss|on doos not addross tho potont|a| app||cat|on ot tho Vod|caro contr|but|on tax or
any tax cons|dorat|ons app||cab|o to an |nvostor's part|cu|ar c|rcumstancos or to |nvostors that may bo subjoct to spoc|a| tax ru|os, |nc|ud|ng, w|thout ||m|tat|on:



banks, |nsuranco compan|os or othor t|nanc|a| |nst|tut|ons,



porsons subjoct to tho a|tornat|vo m|n|mum tax,



tax-oxompt organ|zat|ons,



contro||od toro|gn corporat|ons, pass|vo toro|gn |nvostmont compan|os and corporat|ons that accumu|ato oarn|ngs to avo|d U.3. todora| |ncomo tax,



doa|ors |n socur|t|os or curronc|os,



tradors |n socur|t|os that o|oct to uso a mark-to-markot mothod ot account|ng tor tho|r socur|t|os ho|d|ngs,



porsons that own, or aro doomod to own, moro than b% ot our cap|ta| stock (oxcopt to tho oxtont spoc|t|ca||y sot torth bo|ow),



corta|n tormor c|t|zons or |ong-torm ros|donts ot tho Un|tod 3tatos,



porsons who ho|d our common stock as a pos|t|on |n a hodg|ng transact|on, stradd|o,' convors|on transact|on' or othor r|sk roduct|on transact|on,



porsons who do not ho|d our common stock as a cap|ta| assot w|th|n tho moan|ng ot 3oct|on 1221 ot tho Codo, or



porsons doomod to so|| our common stock undor tho construct|vo sa|o prov|s|ons ot tho Codo.
ln add|t|on, |t a partnorsh|p or ont|ty c|ass|t|od as a partnorsh|p tor U.3. todora| |ncomo tax purposos ho|ds our common stock, tho tax troatmont ot a partnor
gonora||y w||| dopond on tho status ot tho partnor and upon tho act|v|t|os ot tho partnorsh|p. Accord|ng|y, partnorsh|ps that ho|d our common stock, and partnors |n such
partnorsh|ps, shou|d consu|t tho|r tax adv|sors.
ou are urged to consult your tax advIsor wIth respect to the applIcatIon o| the U.8. |ederal Income tax laws to your partIcular sItuatIon, as well as
any tax consequences o| the purchase, ownershIp and dIsposItIon o| our common stock arIsIng under the U.8. |ederal estate or gI|t tax rules or under the
laws o| any state, local, non-U.8. or other taxIng jurIsdIctIon or under any applIcable tax treaty.

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Non-u.5. EoIdor Dotinod
|or purposos ot th|s d|scuss|on, you aro a non-U.3. ho|dor, |t you aro any ho|dor othor than a partnorsh|p or othor ont|ty c|ass|t|od as a partnorsh|p tor U.3.
todora| |ncomo tax purposos, or:



an |nd|v|dua| c|t|zon or ros|dont ot tho Un|tod 3tatos (tor tax purposos),




a corporat|on or othor ont|ty taxab|o as a corporat|on croatod or organ|zod |n tho Un|tod 3tatos or undor tho |aws ot tho Un|tod 3tatos or any po||t|ca|
subd|v|s|on thoroot,



an ostato whoso |ncomo |s subjoct to U.3. todora| |ncomo tax rogard|oss ot |ts sourco, or




a trust (x) whoso adm|n|strat|on |s subjoct to tho pr|mary suporv|s|on ot a U.3. court and wh|ch has ono or moro U.3. porsons who havo tho author|ty to
contro| a|| substant|a| doc|s|ons ot tho trust or (y) wh|ch has mado a va||d o|oct|on to bo troatod as a U.3. porson.
Diatributiona
Wo havo not mado any d|str|but|ons on our common stock. |owovor, |t wo do mako d|str|but|ons on our common stock, thoso paymonts w||| const|tuto
d|v|donds tor U.3. tax purposos to tho oxtont pa|d trom our curront or accumu|atod oarn|ngs and prot|ts, as dotorm|nod undor U.3. todora| |ncomo tax pr|nc|p|os. 1o tho
oxtont thoso d|str|but|ons oxcood both our curront and our accumu|atod oarn|ngs and prot|ts, thoy w||| const|tuto a roturn ot cap|ta| and w||| t|rst roduco your bas|s |n our
common stock, but not bo|ow zoro, and thon w||| bo troatod as ga|n trom tho sa|o ot stock.
Any d|v|dond pa|d to you gonora||y w||| bo subjoct to U.3. w|thho|d|ng tax o|thor at a rato ot 80% ot tho gross amount ot tho d|v|dond or such |owor rato as may
bo spoc|t|od by an app||cab|o |ncomo tax troaty. ln ordor to roco|vo a roducod troaty rato, you must prov|do us w|th an ll3 |orm W-83El or othor appropr|ato vors|on ot
ll3 |orm W-8, |nc|ud|ng a U.3. taxpayor |dont|t|cat|on numbor, cort|ty|ng qua||t|cat|on tor tho roducod rato. A non-U.3. ho|dor ot sharos ot our common stock o||g|b|o tor
a roducod rato ot U.3. w|thho|d|ng tax pursuant to an |ncomo tax troaty may obta|n a rotund ot any oxcoss amounts w|thho|d by t|||ng an appropr|ato c|a|m tor rotund
w|th tho ll3. lt tho non-U.3. ho|dor ho|ds tho stock through a t|nanc|a| |nst|tut|on or othor agont act|ng on tho non-U.3. ho|dor's boha|t, tho non-U.3. ho|dor w||| bo
roqu|rod to prov|do appropr|ato documontat|on to tho agont, wh|ch thon w||| bo roqu|rod to prov|do cort|t|cat|on to us or our pay|ng agont, o|thor d|roct|y or through othor
|ntormod|ar|os.
0|v|donds roco|vod by you that aro ottoct|vo|y connoctod w|th your conduct ot a U.3. trado or bus|noss (and, |t an |ncomo tax troaty app||os, that aro attr|butab|o
to a pormanont ostab||shmont ma|nta|nod by you |n tho U.3.), aro oxompt trom such w|thho|d|ng tax. ln ordor to obta|n th|s oxompt|on, you must prov|do us w|th an ll3
|orm W-8ECl or othor app||cab|o ll3 |orm W-8 propor|y cort|ty|ng such oxompt|on. 3uch ottoct|vo|y connoctod d|v|donds, a|though not subjoct to w|thho|d|ng tax,
gonora||y aro taxod at tho samo graduatod ratos app||cab|o to U.3. porsons, not ot corta|n doduct|ons and crod|ts. ln add|t|on, |t you aro a corporato non-U.3. ho|dor,
d|v|donds you roco|vo that aro ottoct|vo|y connoctod w|th your conduct ot a U.3. trado or bus|noss may a|so bo subjoct to a branch prot|ts tax at a rato ot 80% or such
|owor rato as may bo spoc|t|od by an app||cab|o |ncomo tax troaty.
Cain on Diaoaition ot Our Common 5tock
You gonora||y w||| not bo roqu|rod to pay U.3. todora| |ncomo tax on any ga|n roa||zod upon tho sa|o or othor d|spos|t|on ot our common stock un|oss:




tho ga|n |s ottoct|vo|y connoctod w|th your conduct ot a U.3. trado or bus|noss (and, |t an |ncomo tax troaty app||os, tho ga|n |s attr|butab|o to a pormanont
ostab||shmont ma|nta|nod by you |n tho Un|tod 3tatos),

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you aro an |nd|v|dua| who |s prosont |n tho Un|tod 3tatos tor a por|od or por|ods aggrogat|ng 188 days or moro dur|ng tho ca|ondar yoar |n wh|ch tho sa|o or
d|spos|t|on occurs and corta|n othor cond|t|ons aro mot, or




our common stock const|tutos a U.3. roa| proporty |ntorost by roason ot our status as a Un|tod 3tatos roa| proporty ho|d|ng corporat|on,' or U3ll|C, tor
U.3. todora| |ncomo tax purposos at any t|mo w|th|n tho shortor ot tho t|vo-yoar por|od procod|ng your d|spos|t|on ot, or your ho|d|ng por|od tor, our common
stock.
Wo bo||ovo that wo aro not curront|y and w||| not bocomo a U3ll|C. |owovor, bocauso tho dotorm|nat|on ot whothor wo aro a U3ll|C doponds on tho ta|r
markot va|uo ot our U.3. roa| proporty ro|at|vo to tho ta|r markot va|uo ot our othor bus|noss assots, thoro can bo no assuranco that wo w||| not bocomo a U3ll|C |n
tho tuturo. Evon |t wo bocomo a U3ll|C, howovor, as |ong as our common stock |s rogu|ar|y tradod on an ostab||shod socur|t|os markot, such common stock w||| bo
troatod as U.3. roa| proporty |ntorosts on|y |t you actua||y or construct|vo|y ho|d moro than b% ot such rogu|ar|y tradod common stock at any t|mo dur|ng tho shortor ot
tho t|vo-yoar por|od procod|ng your d|spos|t|on ot, or your ho|d|ng por|od tor, our common stock.
lt you aro a non-U.3. ho|dor doscr|bod |n tho t|rst bu||ot abovo, you w||| bo roqu|rod to pay tax on tho not ga|n dor|vod trom tho sa|o undor rogu|ar graduatod U.3.
todora| |ncomo tax ratos, and a corporato non-U.3. ho|dor doscr|bod |n tho t|rst bu||ot abovo a|so may bo subjoct to tho branch prot|ts tax at a 80% rato, or such |owor
rato as may bo spoc|t|od by an app||cab|o |ncomo tax troaty. lt you aro an |nd|v|dua| non-U.3. ho|dor doscr|bod |n tho socond bu||ot abovo, you w||| bo roqu|rod to pay a
t|at 80% tax on tho ga|n dor|vod trom tho sa|o, wh|ch tax may bo ottsot by U.3.-sourco cap|ta| |ossos tor tho yoar. You shou|d consu|t any app||cab|o |ncomo tax or
othor troat|os that may prov|do tor d|ttoront ru|os.
FodoraI Eatato 1ax
Our common stock bonot|c|a||y ownod by an |nd|v|dua| who |s not a c|t|zon or ros|dont ot tho Un|tod 3tatos (as dot|nod tor U.3. todora| ostato tax purposos) at
tho t|mo ot tho|r doath w||| gonora||y bo |nc|udab|o |n tho docodont's gross ostato tor U.3. todora| ostato tax purposos, un|oss an app||cab|o ostato tax troaty prov|dos
othorw|so.
Backu WithhoIding and |ntormation Roorting
Gonora||y, wo must roport annua||y to tho ll3 tho amount ot d|v|donds pa|d to you, your namo and addross, and tho amount ot tax w|thho|d, |t any. A s|m||ar
roport w||| bo sont to you. lursuant to app||cab|o |ncomo tax troat|os or othor agroomonts, tho ll3 may mako thoso roports ava||ab|o to tax author|t|os |n your country ot
ros|donco.
laymonts ot d|v|donds on or ot procoods trom tho d|spos|t|on ot our common stock mado to you may bo subjoct to add|t|ona| |ntormat|on roport|ng and backup
w|thho|d|ng at a curront rato ot 28% un|oss you ostab||sh an oxompt|on, tor oxamp|o, by propor|y cort|ty|ng your non-U.3. status on a |orm W-83El or anothor
appropr|ato vors|on ot ll3 |orm W-8. lotw|thstand|ng tho torogo|ng, backup w|thho|d|ng and |ntormat|on roport|ng may app|y |t o|thor wo or our pay|ng agont has actua|
know|odgo, or roason to know, that you aro a U.3. porson.
3ackup w|thho|d|ng |s not an add|t|ona| tax, rathor, tho U.3. |ncomo tax ||ab|||ty ot porsons subjoct to backup w|thho|d|ng w||| bo roducod by tho amount ot tax
w|thho|d. lt w|thho|d|ng rosu|ts |n an ovorpaymont ot taxos, a rotund or crod|t may gonora||y bo obta|nod trom tho ll3, prov|dod that tho roqu|rod |ntormat|on |s turn|shod
to tho ll3 |n a t|mo|y mannor.

1b7
1abIo ot Contonta
LogiaIation Attocting 1axation ot our Common 5tock EoId by or through Foroign Entitioa
log|s|at|on onactod |n 2010 gonora||y w||| |mposo a U.3. todora| w|thho|d|ng tax ot 80% on d|v|donds on and tho gross procoods ot a d|spos|t|on ot our common
stock, pa|d to a toro|gn t|nanc|a| |nst|tut|on' (as spoc|a||y dot|nod undor thoso ru|os), un|oss such |nst|tut|on ontors |nto an agroomont w|th tho U.3. govornmont to
w|thho|d on corta|n paymonts and to co||oct and prov|do to tho U.3. tax author|t|os substant|a| |ntormat|on rogard|ng tho U.3. account ho|dors ot such |nst|tut|on (wh|ch
|nc|udos corta|n oqu|ty and dobt ho|dors ot such |nst|tut|on, as wo|| as corta|n account ho|dors that aro toro|gn ont|t|os w|th U.3. ownors) or othorw|so ostab||shos an
oxompt|on. 1ho |og|s|at|on a|so gonora||y w||| |mposo a U.3. todora| w|thho|d|ng tax ot 80% on d|v|donds on and tho gross procoods ot a d|spos|t|on ot our common
stock pa|d to a non-t|nanc|a| toro|gn ont|ty un|oss such ont|ty prov|dos tho w|thho|d|ng agont w|th a cort|t|cat|on |dont|ty|ng corta|n substant|a| d|roct and |nd|roct U.3.
ownors ot tho ont|ty, cort|t|os that thoro aro nono or othorw|so ostab||shos an oxompt|on. 1h|s w|thho|d|ng ob||gat|on undor th|s |og|s|at|on w|th rospoct to d|v|donds on
our common stock w||| not bog|n unt|| 1u|y 1, 2014 and w|th rospoct to tho gross procoods ot a sa|o or othor d|spos|t|on ot our common stock w||| not bog|n unt||
1anuary 1, 2017. Undor corta|n c|rcumstancos, a non-U.3. ho|dor m|ght bo o||g|b|o tor rotunds or crod|ts ot such taxos. An |ntorgovornmonta| agroomont botwoon tho
Un|tod 3tatos and an app||cab|o toro|gn country may mod|ty tho roqu|romonts doscr|bod |n th|s paragraph. lrospoct|vo |nvostors aro oncouragod to consu|t w|th tho|r
own tax adv|sors rogard|ng tho poss|b|o |mp||cat|ons ot th|s |og|s|at|on on tho|r |nvostmont |n our common stock.
Each prospoct|vo |nvostor shou|d consu|t |ts own tax adv|sor rogard|ng tho part|cu|ar U.3. todora|, stato and |oca| and non-U.3. tax consoquoncos ot
purchas|ng, ho|d|ng and d|spos|ng ot our common stock, |nc|ud|ng tho consoquoncos ot any proposod chango |n app||cab|o |aws.

1b8
1abIo ot Contonta
uNDERWR|1|NC
Wo and tho undorwr|tors namod bo|ow w||| ontor |nto an undorwr|t|ng agroomont w|th rospoct to tho sharos ot our common stock bo|ng ottorod. 3ubjoct to
corta|n cond|t|ons, oach undorwr|tor w||| sovora||y agroo to purchaso tho numbor ot sharos |nd|catod |n tho to||ow|ng tab|o. Go|dman, 3achs 8 Co. |s tho roprosontat|vo ot
tho undorwr|tors.

undorwritora Numbor ot 5haroa
Go|dman, 3achs 8 Co.
Vorgan 3tan|oy 8 Co. llC
1.l. Vorgan 3ocur|t|os llC
Vorr||| lynch, l|orco, |onnor 8 3m|th
lncorporatod
0outscho 3ank 3ocur|t|os lnc
A||on 8 Company llC
Codo Adv|sors llC

1ota|

1ho undorwr|tors w||| bo comm|ttod to tako and pay tor a|| ot tho sharos ot our common stock bo|ng ottorod, |t any aro takon, othor than tho sharos ot our
common stock covorod by tho opt|on doscr|bod bo|ow un|oss and unt|| th|s opt|on |s oxorc|sod.
1ho undorwr|tors w||| havo an opt|on to buy up to an add|t|ona| sharos ot our common stock trom us to covor sa|os by tho undorwr|tors ot a groator
numbor ot sharos than tho tota| numbor sot torth |n tho tab|o abovo. 1hoy may oxorc|so that opt|on tor 80 days. lt any sharos ot our common stock aro purchasod
pursuant to th|s opt|on, tho undorwr|tors w||| sovora||y purchaso sharos ot our common stock |n approx|mato|y tho samo proport|on as sot torth |n tho tab|o abovo.
1ho to||ow|ng tab|o shows tho por sharo and tota| undorwr|t|ng d|scounts and comm|ss|ons to bo pa|d to tho undorwr|tors by us. 3uch amounts aro shown
assum|ng both no oxorc|so and tu|| oxorc|so ot tho undorwr|tors' opt|on to purchaso add|t|ona| sharos ot our common stock.

No Exorciao FuII Exorciao
lor 3haro $ $
1ota| $ $
3haros ot our common stock so|d by tho undorwr|tors to tho pub||c w||| |n|t|a||y bo ottorod at tho |n|t|a| pub||c ottor|ng pr|co sot torth on tho covor ot th|s
prospoctus. Any sharos ot our common stock so|d by tho undorwr|tors to socur|t|os doa|ors may bo so|d at a d|scount ot up to $ por sharo trom tho |n|t|a| pub||c
ottor|ng pr|co. Attor tho |n|t|a| ottor|ng ot tho sharos ot our common stock, tho roprosontat|vo may chango tho ottor|ng pr|co and tho othor so|||ng torms. 1ho ottor|ng ot tho
sharos ot our common stock by tho undorwr|tors |s subjoct to roco|pt and accoptanco and subjoct to tho undorwr|tors' r|ght to rojoct any ordor |n who|o or |n part.
Wo and our ott|cors, d|roctors and othor ho|dors ot our cap|ta| stock havo agrood or w||| agroo w|th tho undorwr|tors, subjoct to corta|n oxcopt|ons, not to
d|sposo ot or hodgo any ot our cap|ta| stock or socur|t|os convort|b|o |nto or oxchangoab|o tor sharos ot our cap|ta| stock dur|ng tho por|od trom tho dato ot th|s
prospoctus cont|nu|ng through tho dato that |s 180 days attor tho dato ot th|s prospoctus. Undor tho torms ot tho |ock-up agroomonts, bog|nn|ng |obruary 1b, 2014,
omp|oyoos who aro not oxocut|vo ott|cors may bo o||g|b|o to so|| up to an aggrogato ot sharos ot our common stock |n tho pub||c markot |n ordor to sat|sty tho
|ncomo tax ob||gat|ons ot such omp|oyoos rosu|t|ng

1b0
1abIo ot Contonta
trom tho vost|ng and sott|omont ot a port|on ot tho outstand|ng lro-2018 l3Us (or up to an aggrogato ot sharos ot our common stock ho|d by our omp|oyoos
who aro not oxocut|vo ott|cors |t wo chooso to undortako a not sott|omont ot a|| ot thoso awards to sat|sty a port|on ot such |ncomo tax ob||gat|ons). Go|dman, 3achs 8
Co. may, |n |ts d|scrot|on, ro|oaso any ot tho socur|t|os subjoct to tho |ock-up agroomonts at any t|mo. 3oo tho soct|on t|t|od 3haros E||g|b|o tor |uturo 3a|o' tor a
d|scuss|on ot corta|n transtor rostr|ct|ons.
lr|or to th|s ottor|ng, thoro has boon no pub||c markot tor tho sharos ot our common stock. 1ho |n|t|a| pub||c ottor|ng pr|co has boon nogot|atod botwoon us and
tho roprosontat|vo. Among tho tactors cons|dorod |n dotorm|n|ng tho |n|t|a| pub||c ottor|ng pr|co ot tho sharos ot our common stock, |n add|t|on to prova|||ng markot
cond|t|ons, woro our h|stor|ca| portormanco, ost|matos ot our bus|noss potont|a| and oarn|ngs prospocts, an assossmont ot our managomont and tho cons|dorat|on ot
tho abovo tactors |n ro|at|on to markot va|uat|on ot compan|os |n ro|atod bus|nossos.
Wo |ntond to app|y tor tho ||st|ng ot our common stock on tho undor tho symbo| 1W1l'.
ln connoct|on w|th th|s ottor|ng, tho undorwr|tors may purchaso and so|| sharos ot our common stock |n tho opon markot. 1hoso transact|ons may |nc|udo short
sa|os, stab|||z|ng transact|ons and purchasos to covor pos|t|ons croatod by short sa|os. 3hort sa|os |nvo|vo tho sa|o by tho undorwr|tors ot a groator numbor ot sharos
than thoy aro roqu|rod to purchaso |n tho ottor|ng. A covorod short pos|t|on' |s a short pos|t|on that |s not groator than tho amount ot add|t|ona| sharos tor wh|ch tho
undorwr|tors' opt|on doscr|bod abovo may bo oxorc|sod. 1ho undorwr|tors may c|oso out any covorod short pos|t|on by o|thor oxorc|s|ng tho|r opt|on to purchaso
add|t|ona| sharos ot our common stock or purchas|ng sharos |n tho opon markot. ln dotorm|n|ng tho sourco ot sharos ot our common stock to c|oso out tho covorod
short pos|t|on, tho undorwr|tors w||| cons|dor, among othor th|ngs, tho pr|co ot sharos ava||ab|o tor purchaso |n tho opon markot as comparod to tho pr|co at wh|ch thoy
may purchaso add|t|ona| sharos pursuant to tho opt|on doscr|bod abovo. lakod' short sa|os aro any short sa|os that croato a short pos|t|on groator than tho amount ot
add|t|ona| sharos tor wh|ch tho opt|on doscr|bod abovo may bo oxorc|sod. 1ho undorwr|tors must c|oso out any nakod short pos|t|on by purchas|ng sharos ot our
common stock |n tho opon markot. A nakod short pos|t|on |s moro ||ko|y to bo croatod |t tho undorwr|tors aro concornod that thoro may bo downward prossuro on tho
pr|co ot our common stock |n tho opon markot attor pr|c|ng that cou|d advorso|y attoct |nvostors who purchaso |n tho ottor|ng. 3tab|||z|ng transact|ons cons|st ot var|ous
b|ds tor or purchasos ot our common stock mado by tho undorwr|tors |n tho opon markot pr|or to tho comp|ot|on ot tho ottor|ng.
1ho undorwr|tors may a|so |mposo a pona|ty b|d. 1h|s occurs whon a part|cu|ar undorwr|tor ropays to tho undorwr|tors a port|on ot tho undorwr|t|ng d|scount
roco|vod by |t bocauso tho roprosontat|vo has ropurchasod sharos ot our common stock so|d by or tor tho account ot such undorwr|tor |n stab|||z|ng or short covor|ng
transact|ons.
lurchasos to covor a short pos|t|on and stab|||z|ng transact|ons, as wo|| as othor purchasos by tho undorwr|tors tor tho|r own accounts, may havo tho ottoct ot
provont|ng or rotard|ng a doc||no |n tho markot pr|co ot our common stock, and togothor w|th tho |mpos|t|on ot tho pona|ty b|d, may stab|||zo, ma|nta|n or othorw|so attoct
tho markot pr|co ot our common stock. As a rosu|t, tho pr|co ot our common stock may bo h|ghor than tho pr|co that othorw|so m|ght ox|st |n tho opon markot. lt thoso
act|v|t|os aro commoncod, thoy may bo d|scont|nuod at any t|mo. 1hoso transact|ons may bo ottoctod on tho , |n tho ovor-tho-countor markot or
othorw|so.
Eurooan Economic Aroa
ln ro|at|on to oach Vombor 3tato ot tho Europoan Econom|c Aroa wh|ch has |mp|omontod tho lrospoctus 0|roct|vo (oach, a lo|ovant Vombor 3tato), oach
undorwr|tor has roprosontod and agrood

100
1abIo ot Contonta
that w|th ottoct trom and |nc|ud|ng tho dato on wh|ch tho lrospoctus 0|roct|vo |s |mp|omontod |n that lo|ovant Vombor 3tato (tho lo|ovant lmp|omontat|on 0ato) |t has
not mado and w||| not mako an ottor ot socur|t|os to tho pub||c |n that lo|ovant Vombor 3tato pr|or to tho pub||cat|on ot a prospoctus |n ro|at|on to tho socur|t|os wh|ch
has boon approvod by tho compotont author|ty |n that lo|ovant Vombor 3tato or, whoro appropr|ato, approvod |n anothor lo|ovant Vombor 3tato and not|t|od to tho
compotont author|ty |n that lo|ovant Vombor 3tato, a|| |n accordanco w|th tho lrospoctus 0|roct|vo, oxcopt that |t may, w|th ottoct trom and |nc|ud|ng tho lo|ovant
lmp|omontat|on 0ato, mako an ottor ot socur|t|os to tho pub||c |n that lo|ovant Vombor 3tato at any t|mo:


(a) to |oga| ont|t|os wh|ch aro author|sod or rogu|atod to oporato |n tho t|nanc|a| markots or, |t not so author|sod or rogu|atod, whoso corporato
purposo |s so|o|y to |nvost |n socur|t|os,


(b) to any |oga| ont|ty wh|ch has two or moro ot (1) an avorago ot at |oast 2b0 omp|oyoos dur|ng tho |ast t|nanc|a| yoar, (2) a tota| ba|anco shoot
ot moro than 48,000,000 and (8) an annua| not turnovor ot moro than b0,000,000, as shown |n |ts |ast annua| or conso||datod accounts,


(c) to towor than 100 natura| or |oga| porsons (othor than qua||t|od |nvostors as dot|nod |n tho lrospoctus 0|roct|vo) subjoct to obta|n|ng tho pr|or
consont ot tho roprosontat|vo tor any such ottor, or


(d) |n any othor c|rcumstancos wh|ch do not roqu|ro tho pub||cat|on by tho lssuor ot a prospoctus pursuant to Art|c|o 8 ot tho lrospoctus
0|roct|vo.
|or tho purposos ot th|s prov|s|on, tho oxpross|on an ottor ot socur|t|os to tho pub||c' |n ro|at|on to any socur|t|os |n any lo|ovant Vombor 3tato moans tho
commun|cat|on |n any torm and by any moans ot sutt|c|ont |ntormat|on on tho torms ot tho ottor and tho socur|t|os to bo ottorod so as to onab|o an |nvostor to doc|do to
purchaso or subscr|bo tor tho socur|t|os, as tho samo may bo var|od |n that lo|ovant Vombor 3tato by any moasuro |mp|omont|ng tho lrospoctus 0|roct|vo |n that
lo|ovant Vombor 3tato and tho oxpross|on lrospoctus 0|roct|vo moans 0|roct|vo 2008/71/EC and |nc|udos any ro|ovant |mp|omont|ng moasuro |n oach lo|ovant
Vombor 3tato.
unitod Kingdom
Each undorwr|tor has roprosontod and agrood that:


(a) |t has on|y commun|catod or causod to bo commun|catod and w||| on|y commun|cato or causo to bo commun|catod an |nv|tat|on or
|nducomont to ongago |n |nvostmont act|v|ty (w|th|n tho moan|ng ot 3oct|on 21 ot tho ||nanc|a| 3orv|cos and Varkots Act 2000 (tho
|3VA')) roco|vod by |t |n connoct|on w|th tho |ssuo or sa|o ot tho socur|t|os |n c|rcumstancos |n wh|ch 3oct|on 21(1) ot tho |3VA doos not
app|y to tho lssuor, and


(b) |t has comp||od and w||| comp|y w|th a|| app||cab|o prov|s|ons ot tho |3VA w|th rospoct to anyth|ng dono by |t |n ro|at|on to tho socur|t|os |n,
trom or othorw|so |nvo|v|ng tho Un|tod K|ngdom.
Eong Kong
1ho socur|t|os may not bo ottorod or so|d by moans ot any documont othor than (|) |n c|rcumstancos wh|ch do not const|tuto an ottor to tho pub||c w|th|n tho
moan|ng ot tho Compan|os Ord|nanco (Cap. 82, laws ot |ong Kong), (||) to protoss|ona| |nvostors' w|th|n tho moan|ng ot tho 3ocur|t|os and |uturos Ord|nanco (Cap.
b71, laws ot |ong Kong) and any ru|os mado thoroundor or

101
1abIo ot Contonta
(|||) |n othor c|rcumstancos wh|ch do not rosu|t |n tho documont bo|ng a prospoctus' w|th|n tho moan|ng ot tho Compan|os Ord|nanco (Cap. 82, laws ot |ong Kong),
and no advort|somont, |nv|tat|on or documont ro|at|ng to tho socur|t|os may bo |ssuod or may bo |n tho possoss|on ot any porson tor tho purposo ot |ssuo (|n oach caso
whothor |n |ong Kong or o|sowhoro), wh|ch |s d|roctod at, or tho contonts ot wh|ch aro ||ko|y to bo accossod or road by, tho pub||c |n |ong Kong (oxcopt |t porm|ttod to
do so undor tho |aws ot |ong Kong) othor than w|th rospoct to socur|t|os wh|ch aro or aro |ntondod to bo d|sposod ot on|y to porsons outs|do |ong Kong or on|y to
protoss|ona| |nvostors' w|th|n tho moan|ng ot tho 3ocur|t|os and |uturos Ord|nanco (Cap. b71, laws ot |ong Kong) and any ru|os mado thoroundor.
5ingaoro
1h|s prospoctus has not boon rog|storod as a prospoctus w|th tho Vonotary Author|ty ot 3|ngaporo. Accord|ng|y, th|s prospoctus and any othor documont or
mator|a| |n connoct|on w|th tho ottor or sa|o, or |nv|tat|on tor subscr|pt|on or purchaso, ot tho socur|t|os may not bo c|rcu|atod or d|str|butod, nor may tho socur|t|os bo
ottorod or so|d, or bo mado tho subjoct ot an |nv|tat|on tor subscr|pt|on or purchaso, whothor d|roct|y or |nd|roct|y, to porsons |n 3|ngaporo othor than (|) to an |nst|tut|ona|
|nvostor undor 3oct|on 274 ot tho 3ocur|t|os and |uturos Act, Chaptor 280 ot 3|ngaporo (tho 3|A'), (||) to a ro|ovant porson, or any porson pursuant to 3oct|on 27b(1A),
and |n accordanco w|th tho cond|t|ons, spoc|t|od |n 3oct|on 27b ot tho 3|A or (|||) othorw|so pursuant to, and |n accordanco w|th tho cond|t|ons ot, any othor app||cab|o
prov|s|on ot tho 3|A.
Whoro tho socur|t|os aro subscr|bod or purchasod undor 3oct|on 27b by a ro|ovant porson wh|ch |s: (a) a corporat|on (wh|ch |s not an accrod|tod |nvostor) tho
so|o bus|noss ot wh|ch |s to ho|d |nvostmonts and tho ont|ro sharo cap|ta| ot wh|ch |s ownod by ono or moro |nd|v|dua|s, oach ot whom |s an accrod|tod |nvostor, or (b) a
trust (whoro tho trustoo |s not an accrod|tod |nvostor) whoso so|o purposo |s to ho|d |nvostmonts and oach bonot|c|ary |s an accrod|tod |nvostor, sharos, dobonturos and
un|ts ot sharos and dobonturos ot that corporat|on or tho bonot|c|ar|os' r|ghts and |ntorost |n that trust sha|| not bo transtorab|o tor 0 months attor that corporat|on or that
trust has acqu|rod tho socur|t|os undor 3oct|on 27b oxcopt: (1) to an |nst|tut|ona| |nvostor undor 3oct|on 274 ot tho 3|A or to a ro|ovant porson, or any porson pursuant
to 3oct|on 27b(1A), and |n accordanco w|th tho cond|t|ons, spoc|t|od |n 3oct|on 27b ot tho 3|A, (2) whoro no cons|dorat|on |s g|von tor tho transtor, or (8) by oporat|on ot
|aw.
Jaan
1ho socur|t|os havo not boon and w||| not bo rog|storod undor tho ||nanc|a| lnstrumonts and Exchango law ot 1apan (tho ||nanc|a| lnstrumonts and Exchango
law) and oach undorwr|tor has agrood that |t w||| not ottor or so|| any socur|t|os, d|roct|y or |nd|roct|y, |n 1apan or to, or tor tho bonot|t ot, any ros|dont ot 1apan (wh|ch
torm as usod horo|n moans any porson ros|dont |n 1apan, |nc|ud|ng any corporat|on or othor ont|ty organ|zod undor tho |aws ot 1apan), or to othors tor ro-ottor|ng or
rosa|o, d|roct|y or |nd|roct|y, |n 1apan or to a ros|dont ot 1apan, oxcopt pursuant to an oxompt|on trom tho rog|strat|on roqu|romonts ot, and othorw|so |n comp||anco w|th,
tho ||nanc|a| lnstrumonts and Exchango law and any othor app||cab|o |aws, rogu|at|ons and m|n|stor|a| gu|do||nos ot 1apan.
1ho undorwr|tors do not oxpoct sa|os to d|scrot|onary accounts to oxcood b% ot tho tota| numbor ot socur|t|os ottorod.
Wo ost|mato that our sharo ot tho tota| oxponsos ot tho ottor|ng, oxc|ud|ng undorwr|t|ng d|scounts and comm|ss|ons, w||| bo approx|mato|y $ .
Wo havo agrood to |ndomn|ty tho sovora| undorwr|tors aga|nst corta|n ||ab|||t|os, |nc|ud|ng ||ab|||t|os undor tho 3ocur|t|os Act.

102
1abIo ot Contonta
1ho undorwr|tors and tho|r rospoct|vo att|||atos aro tu|| sorv|co t|nanc|a| |nst|tut|ons ongagod |n var|ous act|v|t|os, wh|ch may |nc|udo socur|t|os trad|ng,
commorc|a| and |nvostmont bank|ng, t|nanc|a| adv|sory, |nvostmont managomont, |nvostmont rosoarch, pr|nc|pa| |nvostmont, hodg|ng, t|nanc|ng and brokorago act|v|t|os.
Corta|n ot tho undorwr|tors and tho|r rospoct|vo att|||atos havo, trom t|mo to t|mo, portormod, and may |n tho tuturo portorm, var|ous t|nanc|a| adv|sory and |nvostmont
bank|ng sorv|cos tor us, tor wh|ch thoy roco|vod or w||| roco|vo customary toos and oxponsos.
ln tho ord|nary courso ot tho|r var|ous bus|noss act|v|t|os, tho undorwr|tors and tho|r rospoct|vo att|||atos may mako or ho|d a broad array ot |nvostmonts and
act|vo|y trado dobt and oqu|ty socur|t|os (or ro|atod dor|vat|vo socur|t|os) and t|nanc|a| |nstrumonts (|nc|ud|ng bank |oans) tor tho|r own account and tor tho accounts ot
tho|r customors, and such |nvostmont and socur|t|os act|v|t|os may |nvo|vo socur|t|os and/or |nstrumonts ot us. 1ho undorwr|tors and tho|r rospoct|vo att|||atos may a|so
mako |nvostmont rocommondat|ons and/or pub||sh or oxpross |ndopondont rosoarch v|ows |n rospoct ot such socur|t|os or |nstrumonts and may at any t|mo ho|d, or
rocommond to c||onts that thoy acqu|ro, |ong and/or short pos|t|ons |n such socur|t|os and |nstrumonts.
1hroo tunds and ono d|scrot|onary c||ont account managod by an att|||ato ot ono ot tho undorwr|tors bonot|c|a||y own an aggrogato ot 2,708,014 sharos ot our
3or|os E protorrod stock that thoy purchasod trom us |n 2000. 3uch sharos w||| convort upon tho c|os|ng ot th|s ottor|ng |nto 2,708,014 sharos ot our common stock. ln
2011, ono ot tho undorwr|tors arrangod a |oan tor ono ot our stockho|dors, most ot wh|ch |oan has s|nco boon synd|catod to th|rd part|os. 1ho |oan |s socurod |nd|roct|y
by |oss than b% ot our outstand|ng cap|ta| stock. lt tho borrowor woro to dotau|t on |ts ob||gat|on to ropay tho |oan whon duo, tho |ondors wou|d havo tho r|ght to so|| tho
sharos socur|ng tho |oan to||ow|ng tho oxp|ry ot tho |ock-up app||cab|o to our stockho|dors as doscr|bod abovo. A|so |n 2011, ono ot tho undorwr|tors acqu|rod rocord
ownorsh|p ot 41,480 sharos ot our common stock |n connoct|on w|th our acqu|s|t|on ot a pr|vato company |n wh|ch such undorwr|tor ho|d an oqu|ty |ntorost. Ot thoso
sharos, tho undorwr|tor bonot|c|a||y owns 88,41b sharos ot our common stock and tho roma|n|ng sharos aro bonot|c|a||y ownod by corta|n ot |ts omp|oyoos. A|so |n
2011, a tund att|||atod w|th ono ot tho undorwr|tors acqu|rod 10,884 sharos ot our common stock |n connoct|on w|th our acqu|s|t|on ot substant|a||y a|| ot tho assots ot a
pr|vato company |n wh|ch that undorwr|tor ho|d an oqu|ty |ntorost. ln add|t|on, |n 2011, ono ot tho undorwr|tors roco|vod trom ono ot our stockho|dors tho r|ght to bo pa|d
an amount |n cash pursuant to a tormu|a dos|gnod to capturo a port|on ot any |ncroaso |n tho va|uo ot a port|on ot such stockho|dor's |nvostmont |n our common stock
dur|ng tho s|x-month por|od attor th|s ottor|ng. At tho ost|matod ottor|ng pr|co rango sot torth on tho covor pago ot th|s prospoctus, tho undorwr|tor wou|d not bo ont|t|od to
roco|vo any cash paymont. ln 2018, an omp|oyoo ot ono ot tho undorwr|tors |nvostod $100,000 |n a tund that owns sharos ot our common stock. Corta|n ot tho
undorwr|tors and tho|r rospoct|vo att|||atos a|so may havo |nvostod |n tunds that acqu|rod our socur|t|os pr|or to 1anuary 12, 2018.

108
1abIo ot Contonta
LECAL NA11ER5
W||son 3ons|n| Goodr|ch 8 losat|, l.C., la|o A|to, Ca||torn|a, wh|ch has actod as our counso| |n connoct|on w|th th|s ottor|ng, w||| pass upon tho va||d|ty ot tho
sharos ot our common stock bo|ng ottorod by th|s prospoctus. As ot tho dato ot th|s prospoctus, an |nvostmont tund assoc|atod w|th W||son 3ons|n| Goodr|ch 8 losat|,
l.C. bonot|c|a||y owns 8,004 sharos ot our convort|b|o protorrod stock, wh|ch w||| bo convortod |nto 8,004 sharos ot our common stock upon comp|ot|on ot th|s ottor|ng.
1ho undorwr|tors havo boon roprosontod by 0av|s lo|k 8 Wardwo|| lll, Von|o lark, Ca||torn|a.
EXPER15
1ho conso||datod t|nanc|a| statomonts as ot 0ocombor 81, 2012 and 2011 and tor oach ot tho throo yoars |n tho por|od ondod 0ocombor 81, 2012 |nc|udod |n
th|s prospoctus havo boon so |nc|udod |n ro||anco on tho roport ot lr|cowatorhousoCoopors lll, an |ndopondont rog|storod pub||c account|ng t|rm, g|von on tho author|ty
ot sa|d t|rm as oxports |n account|ng and aud|t|ng.
WEERE YOu CAN F|ND ADD|1|ONAL |NFORNA1|ON
Wo havo t||od w|th tho 3EC a rog|strat|on statomont on |orm 3-1 undor tho 3ocur|t|os Act w|th rospoct to tho sharos ot our common stock ottorod by th|s
prospoctus. 1h|s prospoctus, wh|ch const|tutos a part ot tho rog|strat|on statomont, doos not conta|n a|| ot tho |ntormat|on sot torth |n tho rog|strat|on statomont, somo
ot wh|ch |s conta|nod |n oxh|b|ts to tho rog|strat|on statomont as porm|ttod by tho ru|os and rogu|at|ons ot tho 3EC. |or turthor |ntormat|on w|th rospoct to us and our
common stock, wo rotor you to tho rog|strat|on statomont, |nc|ud|ng tho oxh|b|ts t||od as a part ot tho rog|strat|on statomont. 3tatomonts conta|nod |n th|s prospoctus
concorn|ng tho contonts ot any contract or any othor documont |s not nocossar||y comp|oto. lt a contract or documont has boon t||od as an oxh|b|t to tho rog|strat|on
statomont, p|oaso soo tho copy ot tho contract or documont that has boon t||od. Each statomont |s th|s prospoctus ro|at|ng to a contract or documont t||od as an oxh|b|t
|s qua||t|od |n a|| rospocts by tho t||od oxh|b|t. You may obta|n cop|os ot th|s |ntormat|on by ma|| trom tho lub||c lotoronco 3oct|on ot tho 3EC, 100 | 3troot, l.E.,
loom 1b80, Wash|ngton, 0.C. 20b40, at proscr|bod ratos. You may obta|n |ntormat|on on tho oporat|on ot tho pub||c rotoronco rooms by ca|||ng tho 3EC at 1-800-3EC-
0880. 1ho 3EC a|so ma|nta|ns an lntornot wobs|to that conta|ns roports, proxy statomonts and othor |ntormat|on about |ssuors, ||ko us, that t||o o|octron|ca||y w|th tho
3EC. 1ho addross ot that wobs|to |s www.soc.gov.
As a rosu|t ot th|s ottor|ng, wo w||| bocomo subjoct to tho |ntormat|on and roport|ng roqu|romonts ot tho Exchango Act and, |n accordanco w|th th|s |aw, w||| t||o
por|od|c roports, proxy statomonts and othor |ntormat|on w|th tho 3EC. 1hoso por|od|c roports, proxy statomonts and othor |ntormat|on w||| bo ava||ab|o tor |nspoct|on
and copy|ng at tho 3EC's pub||c rotoronco tac|||t|os and tho wobs|to ot tho 3EC rotorrod to abovo. Wo a|so ma|nta|n a wobs|to at www.tw|ttor.com. Upon comp|ot|on ot
th|s ottor|ng, you may accoss thoso mator|a|s troo ot chargo as soon as roasonab|y pract|cab|o attor thoy aro o|octron|ca||y t||od w|th, or turn|shod to, tho 3EC.
lntormat|on conta|nod on our wobs|to |s not a part ot th|s prospoctus and tho |nc|us|on ot our wobs|to addross |n th|s prospoctus |s an |nact|vo toxtua| rotoronco on|y.

104
1abIo ot Contonta
1W|11ER, |NC.
|NDEX 1O CON5OL|DA1ED F|NANC|AL 51A1ENEN15

Pago
loport ot lndopondont log|storod lub||c Account|ng ||rm |-2
Conso||datod 3a|anco 3hoots |-8
Conso||datod 3tatomonts ot Oporat|ons |-b
Conso||datod 3tatomonts ot Comprohons|vo loss |-0
Conso||datod 3tatomonts ot lodoomab|o Convort|b|o lrotorrod 3tock, Convort|b|o lrotorrod 3tock and 3tockho|dors' 0ot|c|t |-7
Conso||datod 3tatomonts ot Cash ||ows |-0
lotos to Conso||datod ||nanc|a| 3tatomonts |-10

|-1
1abIo ot Contonta
REPOR1 OF |NDEPENDEN1 REC|51ERED PuBL|C ACCOuN1|NC F|RN
1o tho 3oard ot 0|roctors and 3tockho|dors ot
1w|ttor, lnc.
ln our op|n|on, tho accompany|ng conso||datod ba|anco shoots and tho ro|atod conso||datod statomonts ot oporat|ons, comprohons|vo |oss, rodoomab|o convort|b|o
protorrod stock, convort|b|o protorrod stock and stockho|dors' dot|c|t, and cash t|ows prosont ta|r|y, |n a|| mator|a| rospocts, tho t|nanc|a| pos|t|on ot 1w|ttor, lnc. and |ts
subs|d|ar|os (tho Company') at 0ocombor 81, 2012 and 2011, and tho rosu|ts ot tho|r oporat|ons and tho|r cash t|ows tor oach ot tho throo yoars |n tho por|od ondod
0ocombor 81, 2012 |n contorm|ty w|th account|ng pr|nc|p|os gonora||y accoptod |n tho Un|tod 3tatos ot Amor|ca. ln add|t|on, |n our op|n|on, tho accompany|ng t|nanc|a|
statomont schodu|o prosonts ta|r|y, |n a|| mator|a| rospocts, tho |ntormat|on sot torth thoro|n whon road |n conjunct|on w|th tho ro|atod conso||datod t|nanc|a| statomonts.
1hoso t|nanc|a| statomonts and t|nanc|a| statomont schodu|o aro tho rospons|b|||ty ot tho Company's managomont. Our rospons|b|||ty |s to oxpross an op|n|on on thoso
t|nanc|a| statomonts and t|nanc|a| statomont schodu|o basod on our aud|ts. Wo conductod our aud|ts ot thoso statomonts |n accordanco w|th tho standards ot tho
lub||c Company Account|ng Ovors|ght 3oard (Un|tod 3tatos). 1hoso standards roqu|ro that wo p|an and portorm tho aud|t to obta|n roasonab|o assuranco about whothor
tho t|nanc|a| statomonts aro troo ot mator|a| m|sstatomont. An aud|t |nc|udos oxam|n|ng, on a tost bas|s, ov|donco support|ng tho amounts and d|sc|osuros |n tho
t|nanc|a| statomonts, assoss|ng tho account|ng pr|nc|p|os usod and s|gn|t|cant ost|matos mado by managomont, and ova|uat|ng tho ovora|| t|nanc|a| statomont
prosontat|on. Wo bo||ovo that our aud|ts prov|do a roasonab|o bas|s tor our op|n|on.
/s/ lr|cowatorhousoCoopors, lll
3an 1oso, Ca||torn|a
1u|y 12, 2018

|-2
1abIo ot Contonta
1W|11ER, |NC.
CON5OL|DA1ED BALANCE 5EEE15
(|n thouaanda, oxcot ar vaIuo)

Docombor 81,
Juno 80,
2018
Pro torma
Juno 80, 2018
(Noto 2) 2011 2012
(unauditod)
Aaaota
Curront assots:
Cash and cash oqu|va|onts $ 218,000 $ 208,828 $ 104,b00 $ 104,b00
3hort-torm |nvostmonts 880,b48 221,b28 210,b40 210,b40
Accountsroco|vab|o, not ot a||owanco tor doubttu| accountsot $1,828, $1,280 and $1,140 asot 0ocombor 81, 2011 and 2012, and
1uno 80, 2018, rospoct|vo|y 80,884 112,1bb 128,700 128,700
lropa|d oxponsosand othor curront assots 0,00b 17,4bb 28,0b8 28,0b8

1ota| curront assots b00,008 bb4,400 b22,720 b22,720
lroporty and oqu|pmont, not 01,088 18b,b74 242,bb8 242,bb8
lntang|b|o assots, not 0,418 8,7b8 14,480 14,480
Goodw||| 80,701 08,818 108,71b 108,71b
Othor assots 10,44b 18,002 20,082 20,082

1ota| assots $ 720,07b $ 881,b08 $ 004,0b0 $ 004,0b0








LiabiIitioa, rodoomabIo convortibIo rotorrod atock, convortibIo rotorrod atock and atockhoIdora' oquity (doticit)
Curront ||ab|||t|os:
Accountspayab|o $ 4,b48 $ 8,482 $ 10,421 $ 10,421
Accruod and othor curront ||ab|||t|os 20,b07 b2,011 07,041 07,041
Cap|ta| |oasos, short-torm 22,004 48,880 01,b88 01,b88

1ota| curront ||ab|||t|os 47,744 100,870 180,000 180,000
Cap|ta| |oasos, |ong-torm 21,104 0b,782 80,181 80,181
long-torm tax ||ab|||t|os 18,017 12,1b0 12,1b0 12,1b0
Othor |ong-torm ||ab|||t|os 4,020 10,487 28,711 14,070

1ota| ||ab|||t|os 87,801 207,204 2bb,808 247,108

Comm|tmontsand cont|ngonc|os(loto 10)
lodoomab|o convort|b|o protorrod stock:
C|assAjun|or protorrod stock, $0.00000b par va|uo-1b,000 sharosauthor|zod, 18b, 8,b00 and 8,b24 sharos|ssuod and outstand|ng
at 0ocombor 81, 2011 and 2012, and 1uno 80, 2018, rospoct|vo|y (aggrogato ||qu|dat|on protoronco ot $18b, $8,b00 and
$8,b24 asot 0ocombor 81, 2011 and 2012, and 1uno 80, 2018, rospoct|vo|y), no sharos|ssuod and outstand|ng, pro torma 40 87,100 87,100 -
Convort|b|o protorrod stock:
3or|osAconvort|b|o protorrod stock, $0.00000b par va|uo-70,008 sharosauthor|zod, 70,008 sharos|ssuod and outstand|ng at
0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $80), no sharos|ssuod and outstand|ng,
pro torma 80 80 80 -
3or|os3 convort|b|o protorrod stock, $0.00000b par va|uo-40,824 sharosauthor|zod, 40,824 sharos|ssuod and outstand|ng at
0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $b,480), no sharos|ssuod and
outstand|ng, pro torma b,778 b,778 b,778 -
3or|osCconvort|b|o protorrod stock, $0.00000b par va|uo-02,084 sharosauthor|zod, 02,817 sharos|ssuod and outstand|ng at
0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $21,b00), no sharos|ssuod and
outstand|ng, pro torma 21,70b 21,70b 21,70b -

|-8
,
21,104
,
0b,782
,
80,181
,
80,181
1abIo ot Contonta
Docombor 81,
Juno 80,
2018
Pro torma
Juno 80, 2018
(Noto 2) 2011 2012
(unauditod)
3or|os0convort|b|o protorrod stock, $0.00000b par va|uo-b0,082 sharosauthor|zod, b0,082 sharos|ssuod and
outstand|ng at 0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $80,08b), lo
sharos|ssuod and outstand|ng, pro torma 80,440 80,440 80,440 -
3or|osE convort|b|o protorrod stock, $0.00000b par va|uo-88,481 sharosauthor|zod, 88,481 sharos|ssuod and
outstand|ng at 0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $102,871), lo
sharos|ssuod and outstand|ng, pro torma 102,180 102,180 102,180 -
3or|os| convort|b|o protorrod stock, $0.00000b par va|uo-20,108 sharosauthor|zod, 20,108 sharos|ssuod and outstand|ng
at 0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $200,000), lo sharos|ssuod
and outstand|ng, pro torma 100,848 100,848 100,848 -
3or|osG convort|b|o protorrod stock, $0.00000b par va|uo-24,8bb sharosauthor|zod, 24,8bb sharos|ssuod and
outstand|ng at 0ocombor 81, 2011 and 2012, and 1uno 80, 2018 (aggrogato ||qu|dat|on protoronco ot $400,000), lo
sharos|ssuod and outstand|ng, pro torma 400,040 400,408 400,408 -

1ota| convort|b|o protorrod stock 88b,078 88b,480 88b,480 -
5tockhoIdora' oquity (doticit):
Common stock, $0.00000b par va|uo-000,000 sharosauthor|zod, 118,007, 12b,b07 and 180,b1b sharos|ssuod and
outstand|ng asot 0ocombor 81, 2011 and 2012, and 1uno 80, 2018, rospoct|vo|y, 472,014 sharos|ssuod and
outstand|ng pro torma 1 1 1 2
Add|t|ona| pa|d-|n cap|ta| 08,007 101,787 2b4,881 1,40b,788
Accumu|atod othor comprohons|vo |oss (82) (0b7) (0b8) (0b8)
Accumu|atod dot|c|t (200,004) (840,808) (418,bb4) (748,180)

1ota| stockho|dors' oqu|ty (dot|c|t) (201,888) (248,172) (104,87b) 710,800

1ota| ||ab|||t|os, rodoomab|o convort|b|o protorrod stock, convort|b|o protorrod stockand stockho|dors' oqu|ty (dot|c|t) $ 720,07b $ 881,b08 $ 004,0b0 $ 004,0b0








1ho accompany|ng notos aro an |ntogra| part ot thoso conso||datod t|nanc|a| statomonts.

|-4
(2 (( 01,888) (2 (( 48,172) (104,87bb) 710,800
1abIo ot Contonta
1W|11ER, |NC.
CON5OL|DA1ED 51A1ENEN15 OF OPERA1|ON5
(|n thouaanda, oxcot or aharo data)

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
lovonuo $ 28,278 $ 100,818 $810,088 $ 122,8b0 $ 2b8,08b
Costs and oxponsos
Cost ot rovonuo 48,108 01,808 128,708 b8,1b7 01,828
losoarch and dovo|opmont 20,848 80,170 110,004 40,84b 111,887
3a|os and markot|ng 0,280 2b,088 80,bb1 84,10b 77,007
Gonora| and adm|n|strat|vo 10,0b2 0b,7b7 b0,008 80,7b8 8b,000

1ota| costs and oxponsos 0b,7b7 288,724 804,010 100,80b 810,4b8

loss trom oporat|ons (07,470) (127,411) (77,088) (47,000) (02,828)
lntorost |ncomo (oxponso), not bb (80b) (2,480) (800) (2,740)
Othor |ncomo (oxponso), not (117) (1,b80) 800 (12) (2,b48)

loss botoro |ncomo taxos (07,b41) (120,740) (70,170) (47,008) (08,117)
lrov|s|on (bonot|t) tor |ncomo taxos (217) (1,444) 220 1,100 1,184

lot |oss $(07,824) $(128,802) $(70,800) $ (40,104) $ (00,2b1)










0oomod d|v|dond to |nvostors |n ro|at|on to tho tondor ottor - 8b,810 - - -

lot |oss attr|butab|o to common stockho|dors $(07,824) $(104,118) $(70,800) $ (40,104) $ (00,2b1)










Wo|ghtod-avorago sharos usod to computo not |oss por sharo attr|butab|o to
common stockho|dors:
3as|c and d||utod 7b,002 102,b44 117,401 114,82b 120,8b8










lot |oss por sharo attr|butab|o to common stockho|dors:
3as|c and d||utod $ (0.80) $ (1.00) $ (0.08) $ (0.48) $ (0.b8)










lro torma not |oss por sharo attr|butab|o to common stockho|dors (unaud|tod):
3as|c and d||utod $ (0.18) $ (0.1b)




1ho accompany|ng notos aro an |ntogra| part ot thoso conso||datod t|nanc|a| statomonts.

|-b
1abIo ot Contonta
1W|11ER, |NC.
CON5OL|DA1ED 51A1ENEN15 OF CONPREEEN5|VE LO55
(|n thouaanda)

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
lot |oss $(07,824) $(128,802) $(70,800) $ (40,104) $ (00,2b1)
Othor comprohons|vo |ncomo (|oss):
Unroa||zod ga|n (|oss) on |nvostmonts |n ava||ab|o-tor-sa|o socur|t|os,
not ot tax b0 (48) 41 (2) (82)
|oro|gn curroncy trans|at|on adjustmont 7 b (000) (210) 80

lot chango |n accumu|atod othor comprohons|vo |oss 08 (88) (02b) (212) 4

Comprohons|vo |oss $(07,201) $(128,840) $(80,024) $ (40,810) $ (00,247)










1ho accompany|ng notos aro an |ntogra| part ot thoso conso||datod t|nanc|a| statomonts.

|-0
1abIo ot Contonta
1W|11ER, |NC.
CON5OL|DA1ED 51A1ENEN15 OF REDEENABLE CONVER1|BLE PREFERRED 51OCK, CONVER1|BLE PREFERRED 51OCK AND 51OCKEOLDER5' DEF|C|1
(|n thouaanda)

Yoar Endod Docombor 81,
5ix Nontha
Endod Juno 80,
2010 2011 2012 2018
5haroa Amount 5haroa Amount 5haroa Amount 5haroa Amount
(unauditod)
RodoomabIo convortibIo rotorrod atock
3a|anco, bog|nn|ng ot por|od - $ - - $ - 18b $ 40 8,b00 $ 87,100
lssuanco ot stock|n connoct|on w|th acqu|s|t|ons - - - - 2,021 8b,b01 - -
lssuanco ot rostr|ctod stockto omp|oyoos|n connoct|on w|th acqu|s|t|ons - - 18b 40 704 - - -
lssuanco ot stocktor othor acqu|s|t|on-ro|atod costs - - - - 121 1,bb0 - -
|orto|turo ot rostr|ctod stock - - - - (12) - (4b) -

3a|anco, ond ot por|od - $ - 18b $ 40 8,b00 $ 87,100 8,b24 $ 87,100
















ConvortibIo rotorrod atock
3a|anco, bog|nn|ng ot por|od 280,080 $ 10b,280 208,870 $ 270,b84 820,b7b $ 88b,078 820,b7b $ 88b,480
Convors|on ot 3or|osAconvort|b|o protorrod stockto common stock (0,004) (10) - - - - - -
lssuanco ot 3or|osCconvort|b|o protorrod stock|n connoct|on w|th acqu|s|t|on 2,040 004 - - - - - -
lssuanco ot 3or|os| convort|b|o protorrod stock, not ot |ssuanco costsot $b0 and
$107 dur|ng 2010 and 2011, rospoct|vo|y 14,8b4 118,8b0 11,844 80,408 - - - -
lssuanco ot 3or|osG convort|b|o protorrod stock, not ot |ssuanco costsot $1,487 - - 24,8bb 808,b18 - - - -
3or|osG convort|b|o protorrod stock|ssuanco cost adjustmont - - - - - 8b7 - -
Componsat|on tor omp|oyoos|n ro|at|on to tho tondor ottor - - - 84,717 - - - -
0oomod d|v|dond to |nvostors|n ro|at|on to tho tondor ottor - - - 8b,810 - - - -

3a|anco, ond ot por|od 208,870 $ 270,b84 820,b7b $ 88b,078 820,b7b $ 88b,480 820,b7b $ 88b,480
















5tockhoIdora' doticit
Common atock
3a|anco, bog|nn|ng ot por|od 72,0b4 $ 1 00,408 $ 1 118,007 $ 1 12b,b07 $ 1
lssuanco ot common stock|n connoct|on w|th acqu|s|t|ons 2,40b - 2,270 - 082 - 0,2b4 -
lssuanco ot rostr|ctod stockto omp|oyoos|n connoct|on w|th acqu|s|t|ons 720 - 1,802 - 008 - 8,280 -
lssuanco ot stocktor othor acqu|s|t|on-ro|atod costs - - b0 - 42 - 88 -
Convors|on ot 3or|osAconvort|b|o protorrod stockto common stock 0,004 - - - - - - -
lurchaso ot rostr|ctod stockby omp|oyoosat ta|r va|uo 840 - - - - - - -
Exorc|so ot stockopt|ons 10,808 - 10,408 - b,b77 - 4,b28 -
lopurchaso ot unvostod oar|y-oxorc|sod stockopt|ons - - (08) - (142) - (80) -
|orto|turo ot rostr|ctod stock (248) - (440) - (882) - (88) -

3a|anco, ond ot por|od 00,408 $ 1 118,007 $ 1 12b,b07 $ 1 180,b1b $ 1


1ho accompany|ng notos aro an |ntogra| part ot thoso conso||datod t|nanc|a| statomonts.

|-7
1abIo ot Contonta
Yoar Endod Docombor 81,
5ix Nontha
Endod Juno 80,
2010 2011 2012 2018
5haroa Amount 5haroa Amount 5haroa Amount 5haroa Amount
(unauditod)
AdditionaI aid-in caitaI
3a|anco, bog|nn|ng ot por|od - $ b,808 - $ 1b,280 - $ 08,007 - $ 101,787
lssuanco ot common stock|n connoct|on w|th acqu|s|t|ons - 1,402 - 18,400 - 11,020 - 100,04b
lssuanco ot rostr|ctod stockto omp|oyoos|n connoct|on w|th acqu|s|t|ons - 188 - 1,778 - 8,81b - 12,40b
lssuanco ot stocktor othor acqu|s|t|on-ro|atod costs - - 104 - 778 - 722
Convors|on ot 3or|osAconvort|b|o protorrod stockto common stock - 10 - - - - - -
lurchaso ot rostr|ctod stockby omp|oyoosat ta|r va|uo - 707 - - - - - -
Exorc|so ot stockopt|ons - 1,878 - 10,480 - 2,817 - b,700
lopurchaso ot unvostod oar|y-oxorc|sod stockopt|ons - - - (178) - (b) - (71)
loc|ass|t|cat|on ot oar|y-oxorc|so ||ab|||ty ro|at|ng to stockopt|ons - - - (8,881) - (14) - -
vost|ng ot oar|y oxorc|sod sharos - - - 1,b70 - 1,120 - 848
3tock-basod componsat|on tor omp|oyoos - 4,704 - 18,8bb - 18,207 - 28,280
3tock-basod componsat|on tor non-omp|oyoos - 1,084 - b,b78 - 78b - b80

3a|anco, ond ot por|od - $ 1b,280 - $ 08,007 - $ 101,787 - $ 2b4,881

AccumuIatod othor comrohonaivo Ioaa
3a|anco, bog|nn|ng ot por|od - $ (b7) - $ 0 - $ (82) - $ (0b7)
Comprohons|vo |ncomo (|oss) - 08 - (88) - (02b) - 4

3a|anco, ond ot por|od - $ 0 - $ (82) - $ (0b7) - $ (0b8)

AccumuIatod doticit
3a|anco, bog|nn|ng ot por|od - $ (88,402) - $ (10b,780) - $ (200,004) - $ (840,808)
lot |oss - (07,824) - (128,802) - (70,800) - (00,2b1)
0oomod d|v|dond to |nvostors|n ro|at|on to tho tondor ottor - - - (8b,810) - - - -

3a|anco, ond ot por|od - $ (10b,780) - $ (200,004) - $ (840,808) - $ (418,bb4)

1otaI atockhoIdora' doticit 00,408 $ (00,408) 118,007 $ (201,888) 12b,b07 $ (248,172) 180,b1b $ (104,87b)
















1ho accompany|ng notos aro an |ntogra| part ot thoso conso||datod t|nanc|a| statomonts.

|-8
1abIo ot Contonta
1W|11ER, |NC.
CON5OL|DA1ED 51A1ENEN15 OF CA5E FLOW5
(|n thouaanda)

Yoar Endod Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(unauditod)
Caah tIowa trom oorating activitioa
lot |oss $ (07,824) $ (128,802) $ (70,800) $ (40,104) $ (00,2b1)
Adjustmontsto roconc||o not |ossto not cash prov|dod by (usod |n) oporat|ng act|v|t|os:
0oproc|at|on and amort|zat|on 10,804 24,102 72,b00 81,b40 48,047
3tock-basod componsat|on oxponso b,081 00,884 2b,741 10,127 8b,b08
lrov|s|on tor bad dobt - 1,828 1,844 48b 24b
0otorrod |ncomo tax bonot|t (220) (2,2b2) (1,008) (188) (b08)
lon-cash acqu|s|t|on-ro|atod costs - - 1,71b 1,02b b00
Amort|zat|on ot |nvostmont prom|um and othor 1,078 2,780 4,102 2,420 8,04b
Changos|n assotsand ||ab|||t|os, not ot assotsacqu|rod and ||ab|||t|osassumod trom acqu|s|t|ons:
Accountsroco|vab|o (4,888) (88,028) (78,808) (8b,b00) (11,840)
lropa|d oxponsosand othor assots (1,004) (2,b07) (0,001) (b,800) (b,801)
Accountspayab|o 1,407 (018) 2,081 1,401 (1,028)
Accruod and othor ||ab|||t|os 0,174 7,8b2 24,812 14,742 0,020

lot cash prov|dod by (usod |n) oporat|ng act|v|t|os (48,787) (70,b07) (27,08b) (22,004) 0,0b0

Caah tIowa trom invoating activitioa
lurchasosot proporty and oqu|pmont, not ot procoodstrom sa|os (b,002) (11,b40) (b0,b00) (20,b88) (20,701)
lurchasosot markotab|o socur|t|os (47,081) (487,b0b) (b42,088) (8b0,8b1) (28b,02b)
lrocoodstrom matur|t|osot markotab|o socur|t|os 108,878 178,b40 021,040 842,818 220,840
lrocoodstrom sa|osot markotab|o socur|t|os - 10,277 20,800 0,b02 24,800
lostr|ctod cash - (4,04b) (8,148) (1,008) (2,412)
3us|nosscomb|nat|ons, not ot cash acqu|rod (1,b81) (18,000) (1,b20) 827 (2,822)

lot cash prov|dod by (usod |n) |nvost|ng act|v|t|os 48,074 (824,87b) 40,448 (88,04b) (22,474)

Caah tIowa trom tinancing activitioa
lopaymontsot cap|ta| |oaso ob||gat|ons (1,01b) (1b,108) (80,480) (1b,10b) (81,008)
lrocoodstrom |ssuancosot convort|b|o protorrod stock, not ot |ssuanco costs 118,8b0 48b,000 - - -
lrocoodstrom oxorc|so ot stockopt|onsand sa|osot rostr|ctod stockto omp|oyoosat ta|r va|uo, not ot ropurchaso 2,b80 10,807 2,812 1,044 b,008

lot cash prov|dod by (usod |n) t|nanc|ng act|v|t|os 114,81b 480,210 (87,124) (14,1b1) (2b,870)

lot |ncroaso (docroaso) |n cash and cash oqu|va|onts 114,bb2 $ 84,788 $ (1b,010) $ (7b,700) $ (88,18b)
|oro|gn oxchango ottoct on cash and cash oqu|va|onts 7 b (b2) (28) (084)
Cash and cash oqu|va|ontsat bog|nn|ng ot por|od $ 10,004 $ 184,2b8 $ 218,000 $ 218,000 $ 208,828

Cash and cash oqu|va|ontsat ond ot por|od $ 184,2b8 $ 218,000 $ 208,828 $ 148,188 $ 104,b00










5uIomontaI caah tIow data
lntorost pa|d |n cash $ 244 $ 1,4b7 $ 8,120 $ 1,008 $ 8,048
5uIomontaI diacIoauroa ot non-caah invoating and tinancing activitioa
Common and convort|b|o protorrod stock|ssuod |n connoct|on w|th acqu|s|t|ons $ 2,420 $ 18,400 $ 47,127 $ 8b,040 $ 100,04b
Equ|pmont purchasosundor cap|ta| |oasos $ 22,010 $ 87,882 $ 110,200 $ 41,481 $ b8,7b7
Accruod oqu|pmont purchasos $ - $ b,040 $ 1b,784 $ 28,011 $ 0,881
0oomod d|v|dond to |nvostors|n ro|at|on to tho tondor ottor $ - $ 8b,810 $ - $ - $ -
Unpa|d dotorrod ottor|ng costs $ - $ - $ - $ - $ 1,000
1ho accompany|ng notos aro an |ntogra| part ot thoso conso||datod t|nanc|a| statomonts.

|-0
1abIo ot Contonta
1W|11ER, |NC.
NO1E5 1O CON5OL|DA1ED F|NANC|AL 51A1ENEN15
Noto 1. 1ho Comany
1w|ttor, lnc. (1w|ttor' or tho Company') was toundod |n 2007, and |s hoadquartorod |n 3an |ranc|sco, Ca||torn|a. 1w|ttor |s a pub||c p|attorm whoro any usor can
croato a 1woot and any usor can to||ow othor usors. Each 1woot |s ||m|tod to 140 charactors ot toxt, but can a|so conta|n r|ch mod|a, |nc|ud|ng photos, v|doos and
app||cat|ons.
Noto 2. 5ummary ot 5igniticant Accounting PoIicioa
BasIs o| PresentatIon
1ho conso||datod t|nanc|a| statomonts |nc|udo tho accounts ot tho Company and |ts who||y ownod subs|d|ar|os. A|| s|gn|t|cant |ntorcompany accounts and
transact|ons havo boon o||m|natod |n conso||dat|on.
ln Vay 2010 and Vay 2011, tho Company doc|arod a throo-tor-ono and two-tor-ono stock sp||t, rospoct|vo|y, tor a|| protorrod and common sharos thon |ssuod
and outstand|ng. A|| |ntormat|on ro|atod to common stock, protorrod stock, stock opt|ons and a warrant to purchaso protorrod stock has boon rotroact|vo|y adjustod to
g|vo ottoct to tho stock sp||ts.
Use o| EstImates
1ho proparat|on ot tho Company's conso||datod t|nanc|a| statomonts |n contorm|ty w|th gonora||y accoptod account|ng pr|nc|p|os |n tho Un|tod 3tatos ot Amor|ca
(U.3. GAAl) roqu|ros managomont to mako ost|matos and assumpt|ons that attoct tho roportod amounts ot assots, ||ab|||t|os, rovonuo and oxponsos, as wo|| as ro|atod
d|sc|osuro ot cont|ngont assots and ||ab|||t|os. Actua| rosu|ts cou|d d|ttor mator|a||y trom tho Company's ost|matos. 1o tho oxtont that thoro aro mator|a| d|ttoroncos
botwoon thoso ost|matos and actua| rosu|ts, tho Company's t|nanc|a| cond|t|on or oporat|ng rosu|ts w||| bo attoctod. 1ho Company basos |ts ost|matos on past
oxpor|onco and othor assumpt|ons that tho Company bo||ovos aro roasonab|o undor tho c|rcumstancos, and tho Company ova|uatos thoso ost|matos on an ongo|ng
bas|s.
UnaudIted lnterIm ConsolIdated FInancIal 8tatements
1ho accompany|ng |ntor|m conso||datod ba|anco shoot as ot 1uno 80, 2018, and tho conso||datod statomonts ot oporat|ons, comprohons|vo |oss and cash t|ows
tor tho s|x months ondod 1uno 80, 2012 and 2018 and tho conso||datod statomont ot rodoomab|o convort|b|o protorrod stock, convort|b|o protorrod stock and
stockho|dors' dot|c|t tor tho s|x months ondod 1uno 80, 2018 and tho ro|atod tootnoto d|sc|osuros aro unaud|tod. 1hoso unaud|tod |ntor|m conso||datod t|nanc|a|
statomonts havo boon proparod |n accordanco w|th U.3. GAAl. 1ho unaud|tod |ntor|m conso||datod t|nanc|a| statomonts havo boon proparod on tho samo bas|s as tho
aud|tod t|nanc|a| statomonts and rot|oct, |n managomont's op|n|on, |nc|udo a|| adjustmonts ot a norma|, rocurr|ng naturo that aro nocossary tor tho ta|r statomont ot tho
Company's t|nanc|a| pos|t|on as ot 1uno 80, 2018 and |ts conso||datod rosu|ts ot oporat|ons and cash t|ows tor tho s|x months ondod 1uno 80, 2012 and 2018. 1ho
rosu|ts tor tho s|x months ondod 1uno 80, 2018 aro not nocossar||y |nd|cat|vo ot tho rosu|ts oxpoctod tor tho tu|| t|sca| yoar or any othor por|od.

|-10
1abIo ot Contonta
UnaudIted Pro Forma ConsolIdated Balance 8heet
Upon tho consummat|on ot tho |n|t|a| pub||c ottor|ng contomp|atod by tho Company, a|| ot tho outstand|ng sharos ot rodoomab|o convort|b|o protorrod stock and
convort|b|o protorrod stock w||| automat|ca||y convort |nto 888.1 m||||on sharos ot common stock. 1ho unaud|tod pro torma conso||datod ba|anco shoot as ot 1uno 80,
2018 has boon proparod assum|ng tho convors|on ot tho C|ass A jun|or protorrod stock and tho convort|b|o protorrod stock |nto common stock. 1h|s pro torma
adjustmont a|so g|vos ottoct to roc|ass|t|cat|on ot rostr|ctod C|ass A jun|or protorrod stock and tho protorrod stock warrant, wh|ch aro curront|y c|ass|t|od as ||ab|||t|os, to
stockho|dors' dot|c|t.
1ho unaud|tod pro torma ba|anco shoot a|so g|vos ottoct to approx|mato|y $820.0 m||||on ot stock-basod componsat|on oxponso assoc|atod w|th tho lro-2018
l3Us, wh|ch tho Company oxpocts to rocord upon tho comp|ot|on ot tho Company's |n|t|a| pub||c ottor|ng. 1h|s amount ro|atos to lro-2018 l3Us tor wh|ch both tho
sorv|co cond|t|on was sat|st|od as ot 1uno 80, 2018, as tho portormanco cond|t|on wou|d bocomo probab|o as ot 1uno 80, 2018, assum|ng tho comp|ot|on ot an |n|t|a|
pub||c ottor|ng as ot that day. lotor to tho 5tock-Bosoo Compoosotloo Expooso soct|on ot th|s noto tor turthor dota||s. 1h|s pro torma adjustmont ro|atod to stock-basod
componsat|on oxponso has boon rot|octod as an |ncroaso to add|t|ona| pa|d-|n cap|ta| and accumu|atod dot|c|t. Approx|mato|y 8.8 m||||on sharos ot lro-2018 l3Us
oarnod as ot 1uno 80, 2018 havo not boon |nc|udod |n tho pro torma ba|anco shoot d|sc|osuro ot sharos outstand|ng as tho sott|omont ot thoso sharos |s tak|ng p|aco
subsoquont to tho ottoct|vo dato ot tho |n|t|a| pub||c ottor|ng. layro|| tax oxponsos and othor w|thho|d|ng ob||gat|ons havo not boon |nc|udod |n tho pro torma adjustmonts.
lro-2018 l3U ho|dors gonora||y w||| |ncur taxab|o |ncomo basod upon tho va|uo ot tho sharos on tho dato thoy aro sott|od and tho Company |s roqu|rod to w|thho|d
taxos on such va|uo at app||cab|o m|n|mum statutory ratos. 1ho Company curront|y oxpocts that tho avorago ot thoso w|thho|d|ng ratos w||| bo approx|mato|y 40%. 1ho
Company |s unab|o to quant|ty thoso ob||gat|ons as ot 1uno 80, 2018 and w||| roma|n unab|o to quant|ty th|s amount unt|| tho sott|omont ot tho lro-2018 l3Us as tho
w|thho|d|ng ob||gat|ons w||| bo basod on tho va|uo ot tho sharos on tho dato that |s tho oar||or ot (|) s|x months attor tho dato ot tho Company's |n|t|a| pub||c ottor|ng and
(||) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot tho Company's |n|t|a| pub||c ottor|ng.
Revenue RecognItIon
1ho Company gonoratos rovonuo pr|nc|pa||y trom tho sa|o ot advort|s|ng sorv|cos and, to a |ossor oxtont, trom ontor|ng |nto data ||cons|ng arrangomonts. 1ho
Company's advort|s|ng sorv|cos |nc|udo throo pr|mary products: (|) lromotod 1woots, (||) lromotod Accounts and (|||) lromotod 1ronds. lromotod 1woots and lromotod
Accounts aro pay-tor-portormanco advort|s|ng products pr|cod through an auct|on. lromotod 1ronds aro toaturod by goography and ottorod on a t|xod-too-por-day bas|s.
Advort|sors aro ob||gatod to pay whon a usor ongagos w|th a lromotod 1woot or to||ows a lromotod Account or whon a lromotod 1rond |s d|sp|ayod. Usors ongago w|th
lromotod 1woots by c||ck|ng on a ||nk |n a lromotod 1woot, oxpand|ng, rotwoot|ng, tavor|t|ng or rop|y|ng to a lromotod 1woot or to||ow|ng tho account that twoots a
lromotod 1woot. 1hoso products may bo so|d |n comb|nat|on as a mu|t|p|o o|omont arrangomont or soparato|y on a stand-a|ono bas|s. |oos tor thoso advort|s|ng
sorv|cos aro rocogn|zod |n tho por|od whon advort|s|ng |s do||vorod as ov|doncod by a usor ongag|ng w|th a lromotod 1woot, as capturod by a c||ck, to||ow|ng a
lromotod Account or through tho d|sp|ay ot a lromotod 1rond on tho Company's p|attorm. 0ata ||cons|ng rovonuo |s gonoratod basod on month|y sorv|co toos chargod
to tho data partnors ovor tho por|od |n wh|ch tho Company's data |s mado ava||ab|o to thom.
lovonuo |s rocogn|zod on|y whon (1) porsuas|vo ov|donco ot an arrangomont ox|sts, (2) tho pr|co |s t|xod or dotorm|nab|o, (8) tho sorv|co |s portormod, and
(4) co||octab|||ty ot tho ro|atod too |s roasonab|y assurod. Wh||o tho major|ty ot tho Company's rovonuo transact|ons aro basod on standard bus|noss torms and
cond|t|ons, tho Company a|so ontors |nto non-standard sa|os agroomonts w|th advort|sors and data partnors that somot|mos |nvo|vo mu|t|p|o o|omonts.

|-11
1abIo ot Contonta
|or arrangomonts |nvo|v|ng mu|t|p|o do||vorab|os, judgmont |s roqu|rod to dotorm|no tho appropr|ato account|ng, |nc|ud|ng dovo|op|ng an ost|mato ot tho stand-
a|ono so|||ng pr|co ot oach do||vorab|o. Whon no|thor vondor-spoc|t|c objoct|vo ov|donco nor th|rd-party ov|donco ot so|||ng pr|co ox|sts, tho Company usos |ts bost
ost|mato ot so|||ng pr|co (3E3l) to a||ocato tho arrangomont cons|dorat|on on a ro|at|vo so|||ng pr|co bas|s to oach do||vorab|o. 1ho objoct|vo ot 3E3l |s to dotorm|no
tho so|||ng pr|co ot oach do||vorab|o whon |t |s so|d to advort|sors on a stand-a|ono bas|s. ln dotorm|n|ng 3E3ls, tho Company takos |nto cons|dorat|on var|ous tactors,
|nc|ud|ng, but not ||m|tod to, pr|cos tho Company chargos tor s|m||ar ottor|ngs, sa|os vo|umo, goograph|os, pr|c|ng stratog|os and markot cond|t|ons. Vu|t|p|o do||vorab|o
arrangomonts pr|mar||y cons|st ot comb|nat|ons ot tho Company's pay-tor-portormanco products, lromotod 1woots and lromotod Accounts, wh|ch aro pr|cod through an
auct|on, and lromotod 1ronds, wh|ch aro pr|cod on a t|xod-too-por day por goography bas|s. |or arrangomonts that |nc|udo a comb|nat|on ot thoso products, tho
Company dovo|ops an ost|mato ot tho so|||ng pr|co tor thoso products |n ordor to a||ocato any potont|a| d|scount to a|| advort|s|ng products |n tho arrangomont. 1ho
ost|mato ot so|||ng pr|co tor pay-tor-portormanco products |s dotorm|nod basod on tho w|nn|ng b|d pr|co, tho ost|mato ot so|||ng pr|co tor lromotod 1ronds |s basod on
lromotod 1ronds so|d on a stand-a|ono bas|s and/or soparato|y pr|cod |n a bund|od arrangomont by rotoronco to a ||st pr|co by goography wh|ch |s approvod
por|od|ca||y. 1ho Company bo||ovos tho uso ot 3E3l rosu|ts |n rovonuo rocogn|t|on |n a mannor cons|stont w|th tho undor|y|ng oconom|cs ot tho transact|on and
a||ocatos tho arrangomont cons|dorat|on on a ro|at|vo so|||ng pr|co bas|s to oach do||vorab|o.
Cost o| Revenue
Cost ot rovonuo cons|sts pr|mar||y ot data contor costs ro|atod to tho Company's co-|ocatod tac|||t|os, wh|ch |nc|udos |oaso and host|ng costs, ro|atod support
and ma|ntonanco costs and onorgy and bandw|dth costs, as wo|| as doproc|at|on ot |ts sorvors and notwork|ng oqu|pmont, notwork|ng costs and porsonno|-ro|atod
costs, |nc|ud|ng sa|ar|os, bonot|ts and stock-basod componsat|on, tor |ts oporat|ons toams. Cost ot rovonuo a|so |nc|udos a||ocatod tac|||t|os and othor support|ng
ovorhoad costs, amort|zat|on oxponso ot tochno|ogy acqu|rod through acqu|s|t|ons and cap|ta||zod |abor costs.
8tock-Based CompensatIon Expense
1ho Company accounts tor stock-basod componsat|on oxponso undor tho ta|r va|uo rocogn|t|on and moasuromont prov|s|ons ot U.3. GAAl.
3tock-basod componsat|on awards grantod to omp|oyoos aro moasurod basod on tho grant-dato ta|r va|uo w|th tho rosu|t|ng oxponso rocogn|zod ovor tho
rospoct|vo por|od dur|ng wh|ch tho award roc|p|ont |s roqu|rod to prov|do sorv|co.
1ho Company ost|matos tho ta|r va|uo ot stock opt|ons grantod us|ng tho 3|ack-3cho|os opt|on pr|c|ng modo| on tho datos ot grant. Ca|cu|at|ng tho ta|r va|uo ot
stock opt|ons us|ng tho 3|ack-3cho|os modo| roqu|ros var|ous h|gh|y judgmonta| assumpt|ons |nc|ud|ng tho oxpoctod torm ot tho stock opt|ons and stock pr|co vo|at|||ty.
1ho Company ost|matos tho oxpoctod torm ot stock opt|ons grantod basod on tho s|mp||t|od mothod. 1ho Company ost|matos tho oxpoctod vo|at|||ty ot |ts common
stock on tho datos ot grant basod on tho avorago h|stor|ca| stock pr|co vo|at|||ty ot a group ot |ts comparab|o, pub||c|y-tradod compan|os |n |ts |ndustry. 1ho r|sk-troo
|ntorost rato |s basod on tho U.3. 1roasury y|o|d curvo |n ottoct at tho t|mo ot grant. Expoctod d|v|dond y|o|d |s 0% as tho Company has not pa|d and doos not ant|c|pato
pay|ng d|v|donds on tho common stock. ln add|t|on, tho Company |s roqu|rod to ost|mato tho oxpoctod torto|turo rato and on|y rocogn|zo oxponso tor thoso sharos
oxpoctod to vost. 1ho Company ost|matos tho torto|turo rato basod on tho h|stor|ca| oxpor|onco ot tho Company's stock-basod awards that aro grantod and torto|tod
pr|or to vost|ng.
1ho ta|r va|uo ot stock opt|ons grantod to non-omp|oyoos, |nc|ud|ng consu|tants, |s |n|t|a||y moasurod on tho grant dato and romoasurod oach roport|ng por|od
basod on tho samo mothodo|ogy

|-12
1abIo ot Contonta
doscr|bod abovo. 3tock-basod componsat|on oxponso |s rocordod not ot ost|matod torto|turo on a stra|ght-||no bas|s ovor tho roqu|s|to sorv|co por|od. 1ho stock opt|ons
grantod havo a contractua| torm ot ton yoars and gonora||y vost ovor tour yoars.
1ho Company has h|stor|ca||y |ssuod rostr|ctod C|ass A jun|or protorrod stock and common stock subjoct to a |aps|ng r|ght ot ropurchaso to cont|nu|ng
omp|oyoos ot corta|n acqu|rod compan|os. 3|nco thoso |ssuancos aro subjoct to post-acqu|s|t|on omp|oymont, tho Company has accountod tor thom as post-
acqu|s|t|on stock-basod componsat|on oxponso. 3|nco tho rostr|ctod C|ass A jun|or protorrod stock conta|n corta|n rodompt|on toaturos, thoy aro ||ab|||ty-c|ass|t|od on
tho conso||datod ba|anco shoots, and tho|r ta|r va|uo |s romoasurod oach roport|ng por|od. lotor to loto 10-Roooomob|o Coovortlb|o Proorroo 5tock tor turthor dota||s
on C|ass A jun|or protorrod stock's rodompt|on and othor toaturos, and loto b-lolr Vo|oo Voosoromoot tor a doscr|pt|on ot va|uat|on ost|matos. 1ho rostr|ctod common
stock aro oqu|ty c|ass|t|od and va|uod basod on tho ta|r va|uo on tho dato ot |ssuanco. 3tock-basod componsat|on oxponso tor thoso sharos |s rocordod on a stra|ght-
||no bas|s ovor tho roqu|s|to sorv|co por|od, not ot ost|matod torto|turo.
lro-2018 l3Us, as dot|nod and turthor doscr|bod |n loto 12-Commoo 5tock ooo 5tockbo|oors` Lolclt, vost upon sat|stact|on ot both a sorv|co cond|t|on and
a portormanco cond|t|on. 1ho sorv|co cond|t|on tor thoso awards |s gonora||y sat|st|od ovor tour yoars. 1ho portormanco cond|t|on |s sat|st|od upon tho occurronco ot a
qua||ty|ng ||qu|d|ty ovont, dot|nod as tho oar||or ot (|) tho dato that |s tho oar||or ot (x) s|x months attor tho ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar
yoar to||ow|ng tho ottoct|vo dato ot th|s ottor|ng, and (||) tho dato ot a chango |n contro|. lro-2018 l3Us tor wh|ch tho sorv|co cond|t|on has boon sat|st|od aro not
torto|tab|o shou|d omp|oymont torm|nato pr|or to tho portormanco cond|t|on bo|ng sat|st|od. ln add|t|on, tho vost|ng cond|t|on that w||| bo sat|st|od subsoquont to tho
Company's |n|t|a| pub||c ottor|ng doos not attoct tho oxponso attr|but|on por|od tor tho l3Us tor wh|ch tho sorv|co cond|t|on has boon sat|st|od as ot tho ottoct|vo dato ot
tho |n|t|a| pub||c ottor|ng. As ot 1uno 80, 2018, tho Company had not rocogn|zod any stock-basod componsat|on oxponso tor tho lro-2018 l3Us, bocauso a qua||ty|ng
ovont as doscr|bod abovo had not occurrod. A|though tho portormanco cond|t|on tor tho lro-2018 l3Us |s sat|st|od on a dato subsoquont to tho |n|t|a| pub||c ottor|ng,
bocauso tho sat|stact|on ot tho portormanco cond|t|on bocomos probab|o upon tho comp|ot|on ot tho Company's |n|t|a| pub||c ottor|ng tor tho lro-2018 l3Us tor wh|ch
tho sorv|co cond|t|on has boon sat|st|od as ot such dato, tho Company w||| rocord a s|gn|t|cant cumu|at|vo stock-basod componsat|on oxponso tor thoso l3Us |n tho
quartor |n wh|ch tho qua||ty|ng ovont occurs, us|ng tho acco|oratod attr|but|on mothod. 1ho roma|n|ng unrocogn|zod stock-basod componsat|on oxponso ro|atod to tho
lro-2018 l3Us w||| bo rocordod ovor tho roma|n|ng roqu|s|to sorv|co por|od us|ng tho acco|oratod attr|but|on mothod, not ot ost|matod torto|turos. 1ho stock-basod
componsat|on oxponso tor l3Us |s moasurod basod on tho grant-dato ta|r va|uo.
lost-2018 l3Us, as dot|nod and turthor doscr|bod |n loto 12-Commoo 5tock ooo 5tockbo|oors` Lolclt, aro not subjoct to a portormanco cond|t|on |n ordor to
vost. 1ho sorv|co cond|t|on tor thoso awards |s gonora||y sat|st|od ovor tour yoars. 1ho componsat|on oxponso ro|atod to thoso l3Us |s basod on tho grant-dato ta|r
va|uo and |s rocogn|zod on a stra|ght-||no bas|s, not ot ost|matod torto|turos, ovor tho roqu|s|to sorv|co por|od.
AcquIsItIons
1ho Company accounts tor acqu|s|t|ons ot ont|t|os that |nc|udo |nputs and procossos and havo tho ab|||ty to croato outputs as bus|noss comb|nat|ons |n
accordanco w|th Account|ng 3tandards Cod|t|cat|on (A3C') 1op|c 80b Boslooss Comblootloos. 1ho purchaso pr|co ot tho acqu|s|t|on |s a||ocatod to tho tang|b|o and
|ntang|b|o assots acqu|rod and ||ab|||t|os assumod basod on tho|r ost|matod ta|r va|uos at tho acqu|s|t|on datos. 1ho oxcoss ot tho purchaso pr|co ovor thoso ta|r va|uos
|s rocordod as goodw|||. 0ur|ng tho moasuromont por|od, wh|ch may bo up to ono yoar trom tho

|-18
1abIo ot Contonta
acqu|s|t|on dato, tho Company may rocord adjustmonts to tho assots acqu|rod and ||ab|||t|os assumod w|th tho corrospond|ng ottsot to goodw|||. Upon tho conc|us|on ot
tho moasuromont por|od or t|na| dotorm|nat|on ot tho va|uos ot assots acqu|rod or ||ab|||t|os assumod, wh|chovor comos t|rst, any subsoquont adjustmonts aro rocordod
to tho conso||datod statomonts ot oporat|ons.
Costs to ox|t or rostructuro corta|n act|v|t|os ot an acqu|rod company or tho Company's |ntorna| oporat|ons aro accountod tor as ono-t|mo torm|nat|on and ox|t
costs and aro accountod tor soparato|y trom tho bus|noss comb|nat|on. lostructur|ng and othor acqu|s|t|on-ro|atod costs aro oxponsod as |ncurrod.
OperatIng and CapItal Leases
1ho Company |oasos ott|co spaco and data contor tac|||t|os undor oporat|ng |oasos. Corta|n |oaso agroomonts conta|n troo or osca|at|ng ront paymont
prov|s|ons. 1ho Company rocogn|zos ront oxponso undor such |oasos on a stra|ght-||no bas|s ovor tho torm ot tho |oaso. loaso ronowa| por|ods aro cons|dorod on a
|oaso-by-|oaso bas|s |n dotorm|n|ng tho |oaso torm.
1ho Company a|so ontors |nto sorvor and notwork|ng oqu|pmont |oaso arrangomonts w|th or|g|na| |oaso torms rang|ng trom two to tour yoars. 1ho c|ass|t|cat|on
ot oach |oaso arrangomont |s dotorm|nod |n accordanco w|th tho cr|tor|a out||nod |n A3C 1op|c 840 Loosos. 1ho Company's sorvor and notwork|ng oqu|pmont |oasos
typ|ca||y aro accountod tor as cap|ta| |oasos as thoy moot ono or moro ot tho tour cap|ta| |oaso c|ass|t|cat|on cr|tor|a. Assots acqu|rod undor cap|ta| |oasos aro
amort|zod ovor tho shortor ot tho roma|n|ng |oaso torm or tho|r ost|matod usotu| ||to, wh|ch |s gonora||y two to tour yoars. As ot 0ocombor 81, 2011 and 2012, and 1uno
80, 2018, tho Company had cap|ta| |oaso ob||gat|ons |nc|udod |n short-torm and |ong-torm cap|ta| |oaso ob||gat|ons |n tho conso||datod ba|anco shoots ot $48.8 m||||on,
$114.0 m||||on, and $141.7 m||||on, rospoct|vo|y. ln tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, tho Company rocordod approx|mato|y $0.8 m||||on, $1.8 m||||on
and $8.1 m||||on, rospoct|vo|y, ot |ntorost oxponso |n ro|at|on to thoso cap|ta| |oaso arrangomonts. ln tho s|x months ondod 1uno 80, 2012 and 2018, tho Company
rocordod $1.1 m||||on and $8.0 m||||on ot |ntorost oxponso, rospoct|vo|y.
Cash, Cash EquIvalents and lnvestments
1ho Company |nvosts |ts oxcoss cash pr|mar||y |n short-torm |ntorost-boar|ng ob||gat|ons, |nc|ud|ng govornmont and |nvostmont-grado dobt socur|t|os and
monoy markot tunds. 1ho Company c|ass|t|os a|| ||qu|d |nvostmonts w|th statod matur|t|os ot throo months or |oss trom dato ot purchaso as cash oqu|va|onts and a||
||qu|d |nvostmonts w|th statod matur|t|os ot groator than throo months trom tho dato ot purchaso as markotab|o socur|t|os.
1ho Company dotorm|nos tho appropr|ato c|ass|t|cat|on ot |ts |nvostmonts |n markotab|o socur|t|os at tho t|mo ot purchaso and roova|uatos such dos|gnat|on at
oach ba|anco shoot dato. 1ho Company has c|ass|t|od and accountod tor |ts markotab|o socur|t|os as ava||ab|o-tor-sa|o. Attor cons|dorat|on ot tho Company's cap|ta|
prosorvat|on objoct|vos, as wo|| as |ts ||qu|d|ty roqu|romonts, tho Company may so|| socur|t|os pr|or to tho|r statod matur|t|os. 1ho Company c|ass|t|os socur|t|os w|th
statod matur|t|os ot 12 months or groator as |ong-torm |nvostmonts |n tho conso||datod ba|anco shoots. As ot 0ocombor 81, 2011 and 2012 and 1uno 80, 2018, tho
Company d|d not ho|d any |ong-torm |nvostmonts. 1ho Company carr|os |ts ava||ab|o-tor-sa|o socur|t|os at ta|r va|uo, and roports tho unroa||zod ga|ns and |ossos, not ot
taxos, as a componont ot stockho|dors' dot|c|t, oxcopt tor unroa||zod |ossos dotorm|nod to bo othor than tomporary wh|ch aro rocordod as othor |ncomo (oxponso), not.
1ho Company dotorm|nos any roa||zod ga|ns or |ossos on tho sa|o ot markotab|o socur|t|os on a spoc|t|c |dont|t|cat|on mothod and rocords such ga|ns and |ossos as a
componont ot othor |ncomo (oxponso), not.

|-14
1abIo ot Contonta
1ho Company ova|uatos tho |nvostmonts por|od|ca||y tor poss|b|o othor-than-tomporary |mpa|rmont. A doc||no |n ta|r va|uo bo|ow tho amort|zod costs ot dobt
socur|t|os |s cons|dorod an othor-than-tomporary |mpa|rmont |t tho Company has tho |ntont to so|| tho socur|ty or |t |s moro ||ko|y than not that tho Company w||| bo
roqu|rod to so|| tho socur|ty botoro rocovory ot tho ont|ro amort|zod cost bas|s. ln thoso |nstancos, an |mpa|rmont chargo oqua| to tho d|ttoronco botwoon tho ta|r va|uo
and tho amort|zod cost bas|s |s rocogn|zod |n oarn|ngs. logard|oss ot tho Company's |ntont or roqu|romont to so|| a dobt socur|ty, |mpa|rmont |s cons|dorod othor-than-
tomporary |t tho Company doos not oxpoct to rocovor tho ont|ro amort|zod cost bas|s.
ConcentratIon o| CredIt RIsk
||nanc|a| |nstrumonts that potont|a||y subjoct tho Company to s|gn|t|cant concontrat|on ot crod|t r|sk cons|st pr|mar||y ot cash, cash oqu|va|onts, markotab|o
socur|t|os and accounts roco|vab|o. 1ho pr|mary tocus ot tho Company's |nvostmont stratogy |s to prosorvo cap|ta| and moot ||qu|d|ty roqu|romonts. 1ho Company's
|nvostmont po||cy addrossos tho |ovo| ot crod|t oxposuro by ||m|t|ng tho concontrat|on |n any ono corporato |ssuor or soctor and ostab||sh|ng a m|n|mum a||owab|o crod|t
rat|ng. 1o manago tho r|sk oxposuro, tho Company |nvosts cash, cash oqu|va|onts and short-torm |nvostmonts |n a var|oty ot t|xod |ncomo socur|t|os, |nc|ud|ng short-
torm |ntorost-boar|ng ob||gat|ons, |nc|ud|ng govornmont and |nvostmont-grado dobt socur|t|os and monoy markot tunds. 1ho Company p|acos |ts cash pr|mar||y |n
chock|ng and monoy markot accounts w|th roputab|o t|nanc|a| |nst|tut|ons. 0opos|ts ho|d w|th thoso t|nanc|a| |nst|tut|ons may oxcood tho amount ot |nsuranco prov|dod
on such dopos|ts, |t any.
1ho Company's accounts roco|vab|o aro typ|ca||y unsocurod and aro dor|vod trom customors around tho wor|d |n d|ttoront |ndustr|os. 1ho Company portorms
ongo|ng crod|t ova|uat|ons ot |ts customors and ma|nta|ns a||owancos tor potont|a| crod|t |ossos. ||stor|ca||y, such |ossos havo boon w|th|n managomont's oxpoctat|ons.
As ot 0ocombor 81, 2011 and 2012, ono customor accountod tor 18% ot tho Company's not accounts roco|vab|o ba|anco. As ot 1uno 80, 2018, no s|ng|o customor
accountod tor moro than 10% ot tho Company's not accounts roco|vab|o ba|anco. 1wo customors accountod tor 42% and 20%, rospoct|vo|y, ot tho Company's rovonuo
|n 2010. lo s|ng|o customor accountod tor moro than 10% ot tho Company's rovonuo |n tho yoars ondod 0ocombor 81, 2011 and 2012, and tho s|x months ondod 1uno
80, 2012 and 2018.
Accounts ReceIvable, Net
1ho Company rocords accounts roco|vab|o at tho |nvo|cod amount. 1ho Company ma|nta|ns an a||owanco tor doubttu| accounts to rosorvo tor potont|a||y
unco||oct|b|o roco|vab|o amounts. ln ova|uat|ng tho Company's ab|||ty to co||oct outstand|ng roco|vab|o ba|ancos, tho Company cons|dors var|ous tactors |nc|ud|ng tho
ago ot tho ba|anco, tho crod|tworth|noss ot tho customor, wh|ch |s assossod basod on ongo|ng crod|t ova|uat|ons and paymont h|story, and tho customor's curront
t|nanc|a| cond|t|on.
Property and EquIpment, Net
lroporty and oqu|pmont aro statod at cost and doproc|atod us|ng tho stra|ght-||no mothod ovor tho ost|matod usotu| ||vos ot tho assots. Assots acqu|rod undor
cap|ta| |oasos and |oasoho|d |mprovomonts aro amort|zod us|ng tho stra|ght-||no mothod ovor tho shortor ot tho |oaso torm or tho ost|matod usotu| ||to. 1ho ost|matod
usotu| ||vos ot proporty and oqu|pmont aro doscr|bod bo|ow:

Proorty and Equimont Eatimatod uaotuI Lito
Computor hardwaro and notwork|ng oqu|pmont 1hroo to tour yoars
Computor sottwaro Ono to throo yoars
Ott|co oqu|pmont and othor ||vo yoars
loasod oqu|pmont and |oasoho|d |mprovomonts lossor ot ost|matod usotu| ||to or roma|n|ng |oaso torm

|-1b
1abIo ot Contonta
Costs ot ma|ntonanco and ropa|rs that do not |mprovo or oxtond tho ||vos ot tho rospoct|vo assots aro oxponsod as |ncurrod. Upon rot|romont or sa|o, tho cost
and ro|atod accumu|atod doproc|at|on aro romovod trom tho ba|anco shoot and tho rosu|t|ng ga|n or |oss |s rot|octod |n oporat|ng oxponsos.
GoodwIll
Goodw||| roprosonts tho oxcoss ot tho purchaso pr|co ovor tho ta|r va|uo ot tho not tang|b|o and |ntang|b|o assots acqu|rod |n a bus|noss comb|nat|on. Goodw|||
|s not amort|zod, but |s tostod tor |mpa|rmont at |oast annua||y or moro troquont|y |t ovonts or changos |n c|rcumstancos |nd|cato that tho assot may bo |mpa|rod. 1ho
Company's |mpa|rmont tosts aro basod on a s|ng|o oporat|ng sogmont and roport|ng un|t structuro. 1ho goodw||| |mpa|rmont tost |nvo|vos a two-stop procoss. 1ho t|rst
stop |nvo|vos compar|ng tho ta|r va|uo ot tho Company's roport|ng un|t to |ts carry|ng va|uo, |nc|ud|ng goodw|||. lt tho carry|ng va|uo ot tho roport|ng un|t oxcoods |ts ta|r
va|uo, tho socond stop ot tho tost |s portormod by compar|ng tho carry|ng va|uo ot tho goodw||| |n tho roport|ng un|t to |ts |mp||od ta|r va|uo. An |mpa|rmont chargo |s
rocogn|zod tor tho oxcoss ot tho carry|ng va|uo ot goodw||| ovor |ts |mp||od ta|r va|uo.
1ho Company's annua| goodw||| |mpa|rmont tost rosu|tod |n no |mpa|rmont chargos |n any ot tho por|ods prosontod |n tho accompany|ng conso||datod t|nanc|a|
statomonts.
lntangIble Assets, Net
lntang|b|o assots aro carr|od at cost and amort|zod on a stra|ght-||no bas|s ovor tho|r ost|matod usotu| ||vos, wh|ch |s gonora||y 12 to 18 months, othor than tor
ono assot purchaso tor wh|ch tho ost|matod usotu| ||to |s 42 months. 1ho Company rov|ows |dont|t|ab|o amort|zab|o |ntang|b|o assots to bo ho|d and usod tor |mpa|rmont
whonovor ovonts or changos |n c|rcumstancos |nd|cato that tho carry|ng va|uo ot tho assots may not bo rocovorab|o. 0otorm|nat|on ot rocovorab|||ty |s basod on tho
|owost |ovo| ot |dont|t|ab|o ost|matod und|scountod cash t|ows rosu|t|ng trom uso ot tho assot and |ts ovontua| d|spos|t|on. Voasuromont ot any |mpa|rmont |oss |s basod
on tho oxcoss ot tho carry|ng va|uo ot tho assot ovor |ts ta|r va|uo. 1horo has boon no |mpa|rmont chargos rocordod |n any ot tho por|ods prosontod |n tho accompany|ng
conso||datod t|nanc|a| statomonts. 3oo loto 7-Oooowl|| ooo Otbor lotooglb|o Assots tor add|t|ona| |ntormat|on.
FaIr value Measurements
1ho ||nanc|a| Account|ng 3tandards 3oard (|A33')'s author|tat|vo gu|danco on ta|r va|uo moasuromonts ostab||shos a tramowork tor moasur|ng ta|r va|uo and
oxpands roqu|rod d|sc|osuro about tho ta|r va|uo moasuromonts ot assots and ||ab|||t|os. 1h|s gu|danco roqu|ros tho Company to c|ass|ty and d|sc|oso assots and
||ab|||t|os moasurod at ta|r va|uo on a rocurr|ng bas|s, as wo|| as ta|r va|uo moasuromonts ot assots and ||ab|||t|os moasurod on a nonrocurr|ng bas|s |n por|ods
subsoquont to |n|t|a| moasuromont, |n a throo-t|or ta|r va|uo h|orarchy as doscr|bod bo|ow.
1ho gu|danco dot|nos ta|r va|uo as tho oxchango pr|co that wou|d bo roco|vod tor an assot or pa|d to transtor a ||ab|||ty |n tho pr|nc|pa| or most advantagoous
markot tor tho assot or ||ab|||ty |n an ordor|y transact|on botwoon markot part|c|pants on tho moasuromont dato. va|uat|on tochn|quos usod to moasuro ta|r va|uo must
max|m|zo tho uso ot obsorvab|o |nputs and m|n|m|zo tho uso ot unobsorvab|o |nputs. 1ho gu|danco doscr|bos throo |ovo|s ot |nputs that may bo usod to moasuro ta|r
va|uo:
lovo| 1-Obsorvab|o |nputs, such as quotod pr|cos |n act|vo markots tor |dont|ca| assots or ||ab|||t|os.
lovo| 2-Obsorvab|o |nputs othor than lovo| 1 pr|cos, such as quotod pr|cos tor s|m||ar assots or ||ab|||t|os, quotod pr|cos |n markots that aro not act|vo or othor
|nputs that aro obsorvab|o or can bo corroboratod by obsorvab|o markot data tor substant|a||y tho tu|| torm ot tho assots or ||ab|||t|os.
lovo| 8-Unobsorvab|o |nputs that aro supportod by ||tt|o or no markot act|v|ty and that aro s|gn|t|cant to tho ta|r va|uo ot tho assots or ||ab|||t|os.

|-10
1abIo ot Contonta
1ho Company moasuros |ts cash oqu|va|onts, short-torm |nvostmonts, rostr|ctod C|ass A jun|or protorrod stock and protorrod stock warrant ||ab|||t|os at ta|r
va|uo. 1ho Company c|ass|t|os |ts cash oqu|va|onts and short-torm |nvostmonts w|th|n lovo| 1 or lovo| 2 bocauso tho Company va|uos thoso |nvostmonts us|ng quotod
markot pr|cos or a|tornat|vo pr|c|ng sourcos and modo|s ut|||z|ng markot obsorvab|o |nputs. 1ho ta|r va|uo ot tho Company's lovo| 1 t|nanc|a| assots |s basod on quotod
markot pr|cos ot tho |dont|ca| undor|y|ng socur|ty. 1ho ta|r va|uo ot tho Company's lovo| 2 t|nanc|a| assots |s basod on |nputs that aro d|roct|y or |nd|roct|y obsorvab|o |n
tho markot, |nc|ud|ng tho road||y-ava||ab|o pr|c|ng sourcos tor tho |dont|ca| undor|y|ng socur|ty that may not bo act|vo|y tradod. 1ho Company c|ass|t|os |ts rostr|ctod
C|ass A jun|or protorrod stock and protorrod stock warrant w|th|n lovo| 8, bocauso thoy aro va|uod us|ng va|uat|on tochn|quos us|ng corta|n |nputs that aro unobsorvab|o
|n tho markot. 3oo loto b-lolr Vo|oo Voosoromoots tor turthor dota||s.
lnternal Use 8o|tware and WebsIte evelopment Costs
1ho Company cap|ta||zos corta|n costs |ncurrod |n dovo|op|ng sottwaro programs or wobs|tos tor |ntorna| uso. ln tho yoars ondod 0ocombor 81, 2010, 2011 and
2012, and tho s|x months ondod 1uno 80, 2012 and 2018, tho Company cap|ta||zod costs tota||ng approx|mato|y $1.8 m||||on, $4.8 m||||on, $11.0 m||||on, $4.1 m||||on
and $18.2 m||||on, rospoct|vo|y. 1ho ost|matod usotu| ||to ot costs cap|ta||zod |s ova|uatod tor oach spoc|t|c projoct and |s gonora||y ono yoar. ln tho yoars ondod
0ocombor 81, 2010, 2011 and 2012, and tho s|x months ondod 1uno 80, 2012 and 2018, tho amort|zat|on ot cap|ta||zod costs |nc|udod |n cost ot rovonuo tota|od
approx|mato|y $0.8 m||||on, $1.0 m||||on, $b.0 m||||on, $8.0 m||||on and $2.0 m||||on, rospoct|vo|y. Cap|ta||zod |ntorna| uso sottwaro dovo|opmont costs aro |nc|udod |n
proporty and oqu|pmont, not. lnc|udod |n tho cap|ta||zod amounts abovo aro zoro, $0.7 m||||on, $1.8 m||||on, $0.b m||||on and $8.8 m||||on ot stock-basod componsat|on
oxponso |n tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, and tho s|x months ondod 1uno 80, 2012 and 2018, rospoct|vo|y.
lncome 1axes
1ho Company accounts tor |ts |ncomo taxos us|ng tho assot and ||ab|||ty mothod whoroby dotorrod tax assots and ||ab|||t|os aro dotorm|nod basod on tomporary
d|ttoroncos botwoon tho basos usod tor t|nanc|a| roport|ng and |ncomo tax roport|ng purposos, as wo|| as tor oporat|ng |oss and tax crod|t carrytorwards. 0otorrod
|ncomo taxos aro prov|dod basod on tho onactod tax ratos oxpoctod to bo |n ottoct at tho t|mo such tomporary d|ttoroncos aro oxpoctod to rovorso. A va|uat|on
a||owanco |s prov|dod tor dotorrod tax assots |t |t |s moro-||ko|y-than-not that tho Company w||| not roa||zo thoso tax assots through tuturo oporat|ons.
1ho Company ova|uatos and accounts tor uncorta|n tax pos|t|ons us|ng a two-stop approach. locogn|t|on (stop ono) occurs whon tho Company conc|udos that
a tax pos|t|on, basod so|o|y on |ts tochn|ca| mor|ts, |s moro-||ko|y-than-not to bo susta|nab|o upon oxam|nat|on. Voasuromont (stop two) dotorm|nos tho amount ot
bonot|t that |s groator than b0% ||ko|y to bo roa||zod upon u|t|mato sott|omont w|th a tax|ng author|ty that has tu|| know|odgo ot a|| ro|ovant |ntormat|on. 0o-rocogn|t|on ot
a tax pos|t|on that was prov|ous|y rocogn|zod wou|d occur whon tho Company subsoquont|y dotorm|nos that a tax pos|t|on no |ongor moots tho moro-||ko|y-than-not
throsho|d ot bo|ng susta|nod.
ComprehensIve Loss
Comprohons|vo |oss cons|sts ot two compononts, not |oss and othor comprohons|vo |ncomo (|oss). Othor comprohons|vo |ncomo (|oss) rotors to ga|ns and
|ossos that aro rocordod as an o|omont ot stockho|dors' oqu|ty and aro oxc|udod trom not |oss. 1ho Company's othor comprohons|vo |ncomo (|oss) |s compr|sod ot
unroa||zod ga|n or |oss on ava||ab|o-tor-sa|o socur|t|os, not ot tax, and toro|gn curroncy trans|at|on adjustmont.

|-17
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Recent AccountIng Pronouncements
ln |obruary 2018, tho |A33 |ssuod Account|ng 3tandards Updato (A3U') lo. 2018-02 loport|ng ot Amounts loc|ass|t|od Out ot Accumu|atod Othor
Comprohons|vo lncomo.' A3U lo. 2018-02 roqu|ros an ont|ty to d|saggrogato tho tota| chango ot oach componont ot othor comprohons|vo |ncomo o|thor on tho taco ot
tho |ncomo statomont or as a soparato d|sc|osuro |n tho notos. 1ho now gu|danco bocamo ottoct|vo tor roport|ng por|ods bog|nn|ng attor 0ocombor 1b, 2012 and |s
app||od prospoct|vo|y. 1ho Company adoptod th|s gu|danco dur|ng tho throo months ondod Varch 81, 2018, and tho adopt|on d|d not havo any |mpact on |ts t|nanc|a|
pos|t|on, rosu|ts ot oporat|ons or cash t|ows as tho amounts roc|ass|t|od out ot accumu|atod othor comprohons|vo |oss aro not s|gn|t|cant.
ln 1u|y 2018, tho |A33 |ssuod a now account|ng standard updato on tho t|nanc|a| statomont prosontat|on ot unrocogn|zod tax bonot|ts. 1ho now gu|danco
prov|dos that a ||ab|||ty ro|atod to an unrocogn|zod tax bonot|t wou|d bo prosontod as a roduct|on ot a dotorrod tax assot tor a not oporat|ng |oss carrytorward, a s|m||ar
tax |oss or a tax crod|t carrytorward |t such sott|omont |s roqu|rod or oxpoctod |n tho ovont tho uncorta|n tax pos|t|on |s d|sa||owod. 1ho now gu|danco bocomos ottoct|vo
tor tho Company on 1anuary 1, 2014 and |t shou|d bo app||od prospoct|vo|y to unrocogn|zod tax bonot|ts that ox|st at tho ottoct|vo dato w|th rotrospoct|vo app||cat|on
porm|ttod. 1ho Company |s curront|y assoss|ng tho |mpacts ot th|s now gu|danco.
Noto 8. Acquiaitiona
2011 AcquIsItIons
ln Vay 2011, tho Company acqu|rod 100% ot tho oqu|ty |ntorost ot 1woot0ock, lnc. (1woot0ock'), a pr|vato|y-ho|d U.3. corporat|on w|th oporat|ons |n london,
Un|tod K|ngdom, wh|ch dovo|opod a 1w|ttor |ntortaco app||cat|on tor mod|ty|ng tho d|sp|ay ot 1woots. 1ho acqu|s|t|on ot 1woot0ock has boon accountod tor as a bus|noss
comb|nat|on. 1ho purchaso pr|co ot $20.4 m||||on ($17.1 m||||on |n cash and $8.8 m||||on |n tho Company's common stock) was a||ocatod as to||ows: $2.8 m||||on to
dovo|opod tochno|ogy, $0.7 m||||on to assots acqu|rod and $1.2 m||||on to ||ab|||t|os assumod basod on tho|r ost|matod ta|r va|uo on tho acqu|s|t|on dato, and tho oxcoss
$18.0 m||||on ot tho purchaso pr|co ovor tho ta|r va|uo ot not assots acqu|rod was rocordod as goodw|||. Goodw||| |s pr|mar||y attr|butab|o to tho onhancomont ot tho
1w|ttor usor oxpor|onco, oxpoctod synorg|os ar|s|ng trom tho acqu|s|t|on and tho va|uo ot acqu|rod ta|ont. Goodw||| |s not doduct|b|o tor U.3. |ncomo tax purposos.
0ovo|opod tochno|ogy was amort|zod on a stra|ght-||no bas|s ovor |ts ost|matod usotu| ||to ot 12 months.
ln 2011, tho Company acqu|rod t|vo add|t|ona| compan|os. 1hoso acqu|s|t|ons, wh|ch woro not |nd|v|dua||y s|gn|t|cant, woro accountod tor as bus|noss
comb|nat|ons. 1ho tota| purchaso pr|co tor thoso acqu|s|t|ons ot $18.b m||||on (pa|d w|th tho Company's common stock and C|ass A jun|or protorrod stock va|uod at
approx|mato|y $1b.2 m||||on and cash cons|dorat|on ot $8.8 m||||on) was a||ocatod as to||ows: $8.4 m||||on to dovo|opod tochno|ogy, $0.4 m||||on to assots acqu|rod and
$2.2 m||||on to dotorrod tax ||ab|||ty, and tho oxcoss $11.0 m||||on ot tho purchaso pr|co ovor tho ta|r va|uo ot not assots acqu|rod was rocordod as goodw|||. Goodw||| |s
pr|mar||y attr|butab|o to tho va|uo ot acqu|rod assomb|od worktorco and |s not doduct|b|o tor U.3. |ncomo tax purposos. 0ovo|opod tochno|og|os was amort|zod on a
stra|ght-||no bas|s ovor tho|r ost|matod usotu| ||to ot 12 months.
ln ro|at|on to tho 2011 acqu|s|t|ons, tho Company a|so agrood to pay up to $1b.b m||||on |n both cash and oqu|ty cons|dorat|on cont|ngont upon tho cont|nuod
omp|oymont w|th tho Company ot corta|n omp|oyoos ot tho acqu|rod ont|t|os. 1ho Company rocogn|zos componsat|on oxponso |n ro|at|on to thoso cash and oqu|ty
cons|dorat|on ovor tho roqu|s|to sorv|co por|ods ot up to 48 months trom tho rospoct|vo acqu|s|t|on datos on a stra|ght-||no bas|s.

|-18
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2012 AcquIsItIons
ln 1anuary 2012, tho Company acqu|rod 100% ot tho oqu|ty |ntorost ot 0as|ont, lnc. (0as|ont'), a pr|vato|y-ho|d company basod |n 3unnyva|o, Ca||torn|a wh|ch
prov|dod lntornot socur|ty sorv|cos to protoct advort|s|ng notworks trom ma||c|ous ads. 1ho acqu|s|t|on ot 0as|ont has boon accountod tor as a bus|noss comb|nat|on.
1ho purchaso pr|co ot $10.1 m||||on ($0.1 m||||on |n cash and $10.0 m||||on |n tho Company's C|ass A jun|or protorrod stock) was a||ocatod as to||ows: $7.7 m||||on to
dovo|opod tochno|ogy, $0.8 m||||on to assots acqu|rod and $1.4 m||||on to ||ab|||t|os assumod basod on tho|r ost|matod ta|r va|uo on tho acqu|s|t|on dato, and tho oxcoss
$12.0 m||||on ot tho purchaso pr|co ovor tho ta|r va|uo ot not assots acqu|rod was rocordod as goodw|||. Goodw||| |s pr|mar||y attr|butab|o to tho Company's ab|||ty to
turthor onhanco tho socur|ty ot |ts wob p|attorm trom ma|waro and othor on||no abusos, |ts ab|||ty to moro ottoct|vo|y |dont|ty and mon|tor traudu|ont accounts or act|v|t|os
on |ts p|attorm and tho va|uo ot acqu|rod ta|ont. Goodw||| |s not doduct|b|o tor U.3. |ncomo tax purposos. 0ovo|opod tochno|ogy was amort|zod on a stra|ght-||no bas|s
ovor |ts ost|matod usotu| ||to ot 12 months.
ln 2012, tho Company acqu|rod n|no add|t|ona| compan|os. 1hoso acqu|s|t|ons, wh|ch woro not |nd|v|dua||y s|gn|t|cant, woro accountod tor as bus|noss
comb|nat|ons. 1ho tota| purchaso pr|co tor thoso acqu|s|t|ons ot $88.1 m||||on (pa|d w|th tho Company's common stock and C|ass A jun|or protorrod stock va|uod at
approx|mato|y $28.1 m||||on and cash cons|dorat|on ot $b.0 m||||on) was pr|mar||y a||ocatod as to||ows: $8.8 m||||on to dovo|opod tochno|ogy and $4.7 m||||on, ot wh|ch
$8.b m||||on |s cash acqu|rod, to not assots acqu|rod basod on tho|r ost|matod ta|r va|uo on tho acqu|s|t|on dato, and tho oxcoss $20.1 m||||on ot tho purchaso pr|co ovor
tho ta|r va|uo ot not assots acqu|rod was rocordod as goodw|||. Goodw||| rocordod |n ro|at|on to thoso acqu|s|t|ons |s pr|mar||y attr|butab|o to oxpoctod synorg|os and tho
va|uo ot acqu|rod assomb|od worktorco. ||vo ot tho acqu|s|t|ons rosu|tod |n tax-doduct|b|o goodw||| ot $10.0 m||||on tor U.3. |ncomo tax purposos. 0ovo|opod tochno|ogy
w||| bo amort|zod on a stra|ght-||no bas|s ovor tho|r ost|matod usotu| ||to ot 12 months.
Undor tho torms ot tho acqu|s|t|ons, tho Company has tho r|ght to tho roturn ot a t|xod numbor ot sharos |ssuod to non-omp|oyoo |nvostors |t spoc|t|od
portormanco cond|t|ons t|od to corta|n koy omp|oyoos' cont|nuod omp|oymont at tho Company tor ono yoar attor tho acqu|s|t|on aro not mot. 1ho ta|r va|uo ot thoso
cont|ngont|y roturnab|o sharos ot approx|mato|y $4.0 m||||on and $8.0 m||||on tor C|ass A jun|or protorrod stock and common stock |ssuod, rospoct|vo|y, was |nc|udod |n
tho purchaso pr|co and c|ass|t|od as part ot rodoomab|o convort|b|o protorrod stock and stockho|dors' dot|c|t, rospoct|vo|y, on tho conso||datod ba|anco shoots. 1ho
Company bo||ovos that tho portormanco cond|t|on w||| bo tu||y sat|st|od tor thoso sharos. As ot 1uno 80, 2018, nono ot tho cons|dorat|on has boon roturnod to tho
Company.
ln ro|at|on to tho 2012 acqu|s|t|ons, tho Company a|so agrood to pay up to $28.b m||||on ot cash and oqu|ty cons|dorat|on cont|ngont upon tho cont|nuod
omp|oymont w|th tho Company ot corta|n omp|oyoos ot tho acqu|rod ont|t|os. 1ho Company rocogn|zos componsat|on oxponso ro|atod to thoso cons|dorat|on ovor tho
roqu|s|to sorv|co por|ods ot up to 48 months trom tho rospoct|vo acqu|s|t|on datos on a stra|ght-||no bas|s.
1ho rosu|ts ot oporat|ons tor oach ot thoso acqu|s|t|ons havo boon |nc|udod |n tho Company's conso||datod statomonts oporat|ons s|nco tho dato ot acqu|s|t|on.
lovonuo and |oss trom oporat|ons ar|s|ng trom tho acqu|s|t|ons comp|otod |n 2012 that aro |nc|udod |n tho Company's conso||datod statomonts ot oporat|ons tor 2012
woro zoro and $20.0 m||||on, rospoct|vo|y.

|-10
1abIo ot Contonta
1ho to||ow|ng summary ot unaud|tod pro torma rosu|ts ot oporat|ons ot tho Company tor tho yoars ondod 0ocombor 81, 2011 and 2012 |s prosontod us|ng tho
assumpt|on that tho acqu|s|t|ons mado |n 2012 woro comp|otod as ot 1anuary 1, 2011. 1hoso pro torma rosu|ts ot tho Company havo boon proparod tor comparat|vo
purposos on|y and do not purport to bo |nd|cat|vo ot tho rosu|ts ot oporat|ons wh|ch wou|d havo rosu|tod had tho acqu|s|t|ons occurrod as ot 1anuary 1, 2011, nor |s |t
|nd|cat|vo ot tuturo oporat|ng rosu|ts. 1ho pro torma rosu|ts prosontod |nc|udo amort|zat|on chargos tor acqu|rod |ntang|b|o assots, adjustmonts tor |ncromonta|
componsat|on oxponso ro|atod to tho post-comb|nat|on sorv|co arrangomonts ontorod |nto w|th tho cont|nu|ng omp|oyoos and ro|atod tax ottocts (|n thousands):

Yoar Endod Docombor 81,
2011 2012
(unauditod)
lovonuo $ 100,818 $ 810,088
lot |oss (100,817) (70,200)
2013 AcquIsItIons (unaudIted}
ln 1anuary 2018, tho Company acqu|rod Crash|yt|cs, lnc. (Crash|yt|cs'), a pr|vato|y-ho|d company basod |n Cambr|dgo, Vassachusotts, wh|ch dovo|opod
mob||o app||cat|on crash roport|ng and ana|ys|s so|ut|ons tor mob||o app||cat|on dovo|opors. 1ho acqu|s|t|on ot Crash|yt|cs has boon accountod tor as a bus|noss
comb|nat|on. 1ho purchaso pr|co ot $88.2 m||||on pa|d |n tho Company's common stock was a||ocatod as to||ows: $b.0 m||||on to dovo|opod tochno|ogy, $0.8 m||||on to
assots acqu|rod, $0.8 m||||on to dotorrod tax ||ab|||ty rocordod and $0.1 m||||on to ||ab|||t|os assumod, and tho oxcoss ot $88.8 m||||on to tho purchaso pr|co ovor tho ta|r
va|uo ot not assots acqu|rod was rocordod as goodw|||. Goodw||| |s pr|mar||y attr|butab|o to tho Company's ab|||ty to turthor |mprovo tho ott|c|oncy and tho ovora||
portormanco ot |ts mob||o p|attorm and tho va|uo ot acqu|rod ta|ont. Goodw||| |s not doduct|b|o tor U.3. |ncomo tax purposos. 0ovo|opod tochno|ogy w||| bo amort|zod on
a stra|ght-||no bas|s ovor |ts ost|matod usotu| ||to ot 12 months. Undor tho torms ot tho acqu|s|t|on, tho Company has tho r|ght to tho roturn ot sharos |ssuod to non-
omp|oyoo |nvostors |t spoc|t|od portormanco cond|t|ons t|od to corta|n koy omp|oyoos' cont|nuod omp|oymont at tho Company tor ono yoar attor tho acqu|s|t|on aro not
mot. 1ho ta|r va|uo ot thoso cont|ngont|y roturnab|o sharos ot $0.7 m||||on |s |nc|udod |n tho purchaso pr|co and |s c|ass|t|od as part ot stockho|dors' dot|c|t on tho
conso||datod ba|anco shoots. 1ho Company bo||ovos that tho portormanco cond|t|on w||| bo tu||y sat|st|od tor thoso sharos. As ot 1uno 80, 2018, nono ot tho
cons|dorat|on has boon roturnod to tho Company.
ln |obruary 2018, tho Company acqu|rod 3|uot|n labs, lnc. (3|uot|n'), a pr|vato|y-ho|d company basod |n Cambr|dgo, Vassachusotts, wh|ch prov|dod soc|a|
to|ov|s|on ana|yt|cs sorv|cos to brand advort|sors, agonc|os and 1v notworks. 1ho acqu|s|t|on ot 3|uot|n has boon accountod tor as a bus|noss comb|nat|on. 1ho
purchaso pr|co ot $07.8 m||||on pa|d |n tho Company's common stock was a||ocatod as to||ows: $7.4 m||||on to dovo|opod tochno|ogy, $1.8 m||||on to assots acqu|rod
and $1.0 m||||on to ||ab|||t|os assumod basod on tho|r ost|matod ta|r va|uo on tho acqu|s|t|on dato, and tho oxcoss $00.0 m||||on ot tho purchaso pr|co ovor tho ta|r va|uo
ot not assots acqu|rod was rocordod as goodw|||. Goodw||| |s pr|mar||y attr|butab|o to tho potont|a| tor tuturo product ottor|ng, ab|||ty to turthor onhanco tho advort|sor
oxpor|onco |n us|ng tho Company's sorv|cos and tho va|uo ot acqu|rod ta|ont. Goodw||| |s not doduct|b|o tor U.3. |ncomo tax purposos. 0ovo|opod tochno|ogy w||| bo
amort|zod on a stra|ght-||no bas|s ovor |ts ost|matod usotu| ||to ot 18 months. Undor tho torms ot tho acqu|s|t|on, tho Company has tho r|ght to tho roturn ot sharos
|ssuod to non-omp|oyoo |nvostors |t spoc|t|od portormanco cond|t|ons t|od to corta|n koy omp|oyoos' cont|nuod omp|oymont at tho Company tor ono yoar attor tho
acqu|s|t|on aro not mot. 1ho ta|r va|uo ot thoso cont|ngont|y roturnab|o sharos ot $7.0 m||||on |s |nc|udod |n tho purchaso pr|co and |s c|ass|t|od as part ot stockho|dors'
dot|c|t on tho conso||datod ba|anco shoots. 1ho Company bo||ovos that tho portormanco cond|t|on w||| bo tu||y sat|st|od tor thoso sharos. As ot 1uno 80, 2018, nono ot
tho cons|dorat|on has boon roturnod to tho Company.

|-20
1abIo ot Contonta
ln 1uno 2018, tho Company comp|otod tho acqu|s|t|on ot corta|n assots ot a pr|vato|y-ho|d company tor tho tota| purchaso pr|co ot $2.b m||||on. 1h|s transact|on
was accountod tor as a purchaso ot assots and, accord|ng|y, tho tota| purchaso pr|co was a||ocatod to tho |dont|t|ab|o |ntang|b|o assots acqu|rod basod on tho|r
rospoct|vo ta|r va|uos on tho acqu|s|t|on dato. As a rosu|t ot th|s transact|on, tho Company rocordod |ntang|b|o assots ot $2.b m||||on, wh|ch was compr|sod ot $2.0
m||||on ot assomb|od worktorco and $0.b m||||on ot dovo|opod tochno|ogy. 1ho dovo|opod tochno|ogy and assomb|od worktorco w||| bo amort|zod on a stra|ght-||no bas|s
ovor tho|r ost|matod usotu| ||vos ot 12 and 42 months, rospoct|vo|y.
0ur|ng tho s|x months ondod 1uno 80, 2018, tho Company comp|otod acqu|s|t|ons ot throo add|t|ona| compan|os, wh|ch woro not |nd|v|dua||y s|gn|t|cant and
accountod tor as bus|noss comb|nat|ons. 1ho tota| purchaso pr|co tor thoso acqu|s|t|ons ot $4.b m||||on pa|d |n tho Company's common stock was pr|mar||y a||ocatod to
$8.0 m||||on ot dovo|opod tochno|ogy and $0.1 m||||on ot assumod ||ab|||t|os basod on tho|r ost|matod ta|r va|uo on tho acqu|s|t|on dato, and tho oxcoss $1.0 m||||on ot tho
purchaso pr|co ovor tho ta|r va|uo ot not assots acqu|rod was rocordod as goodw|||. Goodw||| rocordod |n ro|at|on to thoso acqu|s|t|ons |s pr|mar||y attr|butab|o to
oxpoctod synorg|os and tho va|uo ot acqu|rod assomb|od worktorco. Goodw||| |s not doduct|b|o tor U.3. |ncomo tax purposos. 0ovo|opod tochno|ogy w||| bo amort|zod on
a stra|ght-||no bas|s ovor tho|r ost|matod usotu| ||to ot 24 months.
ln ro|at|on to tho 2018 acqu|s|t|ons, tho Company a|so agrood to pay up to $b4.0 m||||on ot oqu|ty cons|dorat|on wh|ch was to bo pa|d to corta|n omp|oyoos ot
tho acqu|rod ont|t|os cont|ngont upon tho|r cont|nuod omp|oymont w|th tho Company. 1ho Company rocogn|zos componsat|on oxponso ro|atod to tho oqu|ty
cons|dorat|on ovor tho roqu|s|to sorv|cos por|ods ot up to 48 months trom tho rospoct|vo acqu|s|t|on datos on a stra|ght-||no bas|s. 1ho Company a|so grantod to
cont|nu|ng omp|oyoos opt|ons to purchaso 0.8 m||||on sharos ot common stock |n oxchango tor tho|r outstand|ng opt|ons to purchaso tho sharos ot tho acqu|rod ont|t|os.
Exc|ud|ng tho ta|r va|uo ot tho stock opt|ons that was a||ocatod and rocordod as part ot tho purchaso pr|co tor tho port|on ot tho sorv|co por|od comp|otod pro-acqu|s|t|on,
tho Company w||| rocogn|zo approx|mato|y $0.2 m||||on ot stock-basod componsat|on oxponso |n ro|at|on to thoso stock opt|ons ovor tho roma|n|ng roqu|s|to sorv|co
por|ods ot up to 48 months trom tho rospoct|vo acqu|s|t|on datos on a stra|ght-||no bas|s.
1ho Company has cons|dorod a|| potont|a| |dont|t|ab|o |ntang|b|o assots |n |ts past bus|noss comb|nat|ons and dotorm|nod that |t was not appropr|ato to a||ocato
mator|a| amounts to |dont|t|ab|o |ntang|b|o assots othor than acqu|rod dovo|opod tochno|og|os. ln va|u|ng acqu|rod dovo|opod tochno|og|os, tho Company dotorm|nod that
no|thor tho |ncomo approach nor tho markot approach was ro|ovant, and, cons|stont w|th a markot part|c|pant approach that wou|d wo|gh a mako' vorsus buy' doc|s|on
whon cons|dor|ng tho acqu|s|t|on ot a part|cu|ar |ncromonta| tochno|ogy, app||od tho cost approach |n dotorm|n|ng tho amount ot purchaso pr|co a||ocatod to acqu|rod
dovo|opod tochno|ogy. 1ho cost approach usos tho concopt ot roproduct|on cost as an |nd|cator ot ta|r va|uo. 1ho prom|so ot tho cost approach |s that a prudont |nvostor
wou|d pay no moro tor an assot than tho amount tor wh|ch tho assot cou|d bo rop|acod w|th a now ono. loproduct|on cost rotors to tho cost |ncurrod to roproduco tho
assot us|ng tho oxact samo spoc|t|cat|ons. ln ordor to app|y tho cost mothod to dotorm|no tho ta|r va|uo ot oach acqu|rod dovo|opod tochno|ogy, tho Company
cons|dorod tho to||ow|ng: (|) tho ost|matod dovo|opmont hours or oqu|va|ont ot porson months roqu|rod to roproduco tho tochno|ogy, (||) tho ro|atod |abor cost and (|||) an
oxpoctod markot part|c|pant prot|t marg|n.
|or corta|n transact|ons that woro cons|dorod assot acqu|s|t|ons, tho Company had |dont|t|od assomb|od worktorco as an |ntang|b|o assot. 1ho Company usod
tho cost approach to va|uo tho assomb|od worktorco. 1ho cost approach takos |nto cons|dorat|on tho ro|ovant costs to rop|aco tho worktorco, wh|ch |nc|udo rocru|t|ng
and tra|n|ng costs roqu|rod unt|| tho omp|oyoos bocomo tu||y |ntogratod.

|-21
1abIo ot Contonta
1ho rosu|ts ot oporat|ons tor oach ot thoso acqu|s|t|ons havo boon |nc|udod |n tho Company's conso||datod statomonts oporat|ons s|nco tho dato ot acqu|s|t|on.
lovonuo and |oss trom oporat|ons ar|s|ng trom tho acqu|s|t|ons comp|otod dur|ng tho s|x months ondod 1uno 80, 2018 that aro |nc|udod |n tho Company's conso||datod
statomonts ot oporat|ons tor tho s|x months ondod 1uno 80, 2018 woro $1.8 m||||on and $17.7 m||||on, rospoct|vo|y.
1ho to||ow|ng summary ot unaud|tod pro torma rosu|ts ot oporat|ons ot tho Company tor tho s|x months ondod 1uno 80, 2012 and 2018 |s prosontod us|ng tho
assumpt|on that tho acqu|s|t|ons mado dur|ng tho s|x months ondod 1uno 80, 2018 woro comp|otod as ot 1anuary 1, 2012. 1hoso pro torma rosu|ts ot tho Company
havo boon proparod tor comparat|vo purposos on|y and do not purport to bo |nd|cat|vo ot tho rosu|ts ot oporat|ons wh|ch wou|d havo rosu|tod had tho acqu|s|t|ons
occurrod as ot 1anuary 1, 2012, nor |s |t |nd|cat|vo ot tuturo oporat|ng rosu|ts. 1ho pro torma rosu|ts prosontod |nc|udo amort|zat|on chargos tor acqu|rod |ntang|b|o
assots, adjustmonts tor |ncromonta| componsat|on oxponso ro|atod to tho post-comb|nat|on sorv|co arrangomonts ontorod |nto w|th tho cont|nu|ng omp|oyoos and
ro|atod tax ottocts (|n thousands):

5ix montha ondod Juno 80,
2012 2018
(unauditod)
lovonuo $ 128,800 $ 2b8,080
lot |oss (72,288) (0b,100)
Noto 4. Caah, Caah EquivaIonta and 5hort-torm |nvoatmonta
Cash, cash oqu|va|onts and short-torm |nvostmonts cons|st ot tho to||ow|ng (|n thousands):

Docombor 81,
Juno 80,
2018 2011 2012
(unauditod)
Cash and cash oqu|va|onts:
Cash $ 20,001 $ 18,028 $ b2,808
Vonoy markot tunds 02,087 b0,084 84,201
U.3. govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s 71,7b0 11b,22b bb,887
Corporato notos and commorc|a| papor 04,408 12,241 22,408

1ota| cash and cash oqu|va|onts $ 218,000 $ 208,828 $ 104,b00






3hort-torm |nvostmonts:
U.3. govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s $ 200,448 $ 102,211 $ 00,028
Corporato notos and commorc|a| papor 121,100 110,817 118,021

1ota| short-torm |nvostmonts $ 880,b48 $ 221,b28 $ 210,b40






1ho to||ow|ng tab|os summar|zo unroa||zod ga|ns and |ossos ro|atod to ava||ab|o-tor-sa|o socur|t|os c|ass|t|od as short-torm |nvostmonts on tho Company's
conso||datod ba|anco shoots as ot 0ocombor 81, 2011 and 2012 and 1uno 80, 2018 (|n thousands):

Docombor 81, 2011

Croaa
Amortizod
Coata
Croaa
unroaIizod
Caina
Croaa
unroaIizod
Loaaoa
Aggrogatod
Eatimatod
Fair VaIuo
U3 Govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s $200,4b2 $ 7 $ (10) $ 200,448
Corporato notos and commorc|a| papor 121,184 11 (4b) 121,100

1ota| ava||ab|o-tor-sa|o socur|t|os c|ass|t|od as short-torm |nvostmonts $880,b80 $ 18 $ (01) $ 880,b48









|-22
1abIo ot Contonta
Docombor 81, 2012

Croaa
Amortizod
Coata
Croaa
unroaIizod
Caina
Croaa
unroaIizod
Loaaoa
Aggrogatod
Eatimatod
Fair VaIuo
U3 Govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s $102,101 $ 21 $ (1) $ 102,211
Corporato notos and commorc|a| papor 110,880 7 (20) 110,817

1ota| ava||ab|o-tor-sa|o socur|t|os c|ass|t|od as short-torm |nvostmonts $221,b80 $ 28 $ (80) $ 221,b28









Juno 80, 2018

Croaa
Amortizod
Coata
Croaa
unroaIizod
Caina
Croaa
unroaIizod
Loaaoa
Aggrogatod
Eatimatod
Fair VaIuo
(unauditod)
U3 Govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s $ 00,024 $ 8 $ (4) $ 00,028
Corporato notos and commorc|a| papor 118,000 0 (48) 118,021

1ota| ava||ab|o-tor-sa|o socur|t|os c|ass|t|od as short-torm |nvostmonts $210,b84 $ 17 $ (b2) $ 210,b40








1ho ava||ab|o-tor-sa|o socur|t|os c|ass|t|od as cash and cash oqu|va|onts on tho conso||datod ba|anco shoots aro not |nc|udod |n tho tab|os abovo as tho gross
unroa||zod ga|ns and |ossos woro |mmator|a| tor oach por|od, tho|r carry|ng va|uo approx|matos ta|r va|uo bocauso ot tho short matur|ty por|od ot thoso |nstrumonts.
1ho to||ow|ng tab|os show a|| short-torm |nvostmonts |n an unroa||zod |oss pos|t|on tor wh|ch othor-than-tomporary |mpa|rmont has not boon rocogn|zod and tho
ro|atod gross unroa||zod |ossos and ta|r va|uo, aggrogatod by |nvostmont catogory and tho |ongth ot t|mo that |nd|v|dua| socur|t|os havo boon |n a cont|nuous unroa||zod
|oss pos|t|on (|n thousands):

Docombor 81, 2011
Loaa than 12 Nontha 12 Nontha or Croator 1otaI
Fair VaIuo
unroaIizod
Loaa Fair VaIuo
unroaIizod
Loaa Fair VaIuo
unroaIizod
Loaa
U3 Govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s $ 8b,407 $ (10) $ - $ - $ 8b,407 $ (10)
Corporato notos and commorc|a| papor 40,b2b (4b) - - 40,b2b (4b)

1ota| short-torm |nvostmonts |n an unroa||zod |oss pos|t|on $184,082 $ (01) $ - $ - $184,082 $ (01)













Docombor 81, 2012
Loaa than 12 Nontha 12 Nontha or Croator 1otaI
Fair VaIuo
unroaIizod
Loaa Fair VaIuo
unroaIizod
Loaa Fair VaIuo
unroaIizod
Loaa
U3 Govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s
$ 0,008 $ (1) $

- $

- $ 0,008 $ (1)
Corporato notos and commorc|a| papor 00,008 (20) - - 00,008 (20)

1ota| short-torm |nvostmonts |n an unroa||zod |oss pos|t|on $70,001 $ (80) $ - $ - $70,001 $ (80)













|-28
1abIo ot Contonta
Juno 80, 2018
Loaa than 12 Nontha 12 Nontha or Croator 1otaI
Fair VaIuo
unroaIizod
Loaa Fair VaIuo
unroaIizod
Loaa Fair VaIuo
unroaIizod
Loaa
(unauditod)
U3 Govornmont and agoncy socur|t|os |nc|ud|ng troasury b|||s $ 17,b8b $ (4) $ - $ - $ 17,b8b $ (4)
Corporato notos and commorc|a| papor 40,878 (48) - - 40,878 (48)

1ota| short-torm |nvostmonts |n an unroa||zod |oss pos|t|on $ 04,408 $ (b2) $ - $ - $ 04,408 $ (b2)












lnvostmonts aro rov|owod por|od|ca||y to |dont|ty poss|b|o othor-than-tomporary |mpa|rmonts. lo |mpa|rmont |oss has boon rocordod on tho socur|t|os |nc|udod
|n tho tab|os abovo as tho Company bo||ovos that tho docroaso |n ta|r va|uo ot thoso socur|t|os |s tomporary and oxpocts to rocovor up to (or boyond) tho |n|t|a| cost ot
|nvostmont tor thoso socur|t|os.
Noto 5. Fair VaIuo Noaauromonta
1ho to||ow|ng tab|os sot torth tho ta|r va|uo ot tho Company's t|nanc|a| assots and ||ab|||t|os moasurod at ta|r va|uo on a rocurr|ng bas|s as ot 0ocombor 81, 2011
and 2012 and 1uno 80, 2018 basod on tho throo-t|or ta|r va|uo h|orarchy (|n thousands):

Docombor 81, 2011
LovoI 1 LovoI 2 LovoI 8 1otaI
Aaaota
Cash oqu|va|onts:
Vonoy markot tunds $ 02,087 $ - $ - $ 02,087
1roasury b|||s 18,000 - - 18,000
Agoncy socur|t|os - b8,7b0 - b8,7b0
Commorc|a| papor - 04,408 - 04,408
3hort-torm |nvostmonts:
1roasury b|||s 27,b44 - - 27,b44
Agoncy socur|t|os - 108,844 - 108,844
Commorc|a| papor - b0,070 - b0,070
Corporato notos - 04,121 - 04,121
U.3. govornmont socur|t|os - 18,0bb - 18,0bb
LiabiIitioa
lrotorrod stock warrant - - (1,7b2) (1,7b2)

1ota| $102,081 $ 420,247 $(1,7b2) $ b27,120









|-24
(1)
1abIo ot Contonta
Docombor 81, 2012
LovoI 1 LovoI 2 LovoI 8 1otaI
Aaaota
Cash oqu|va|onts:
Vonoy markot tunds $ b0,084 $ - $ - $ b0,084
1roasury b|||s 71,078 - - 71,078
Agoncy socur|t|os - 82,020 - 82,020
Commorc|a| papor - 10,100 - 10,100
Corporato notos - 2,042 - 2,042
U.3. govornmont socur|t|os - 11,b20 - 11,b20
3hort-torm |nvostmonts:
1roasury b|||s 8,000 - - 8,000
Agoncy socur|t|os - 80,088 - 80,088
Commorc|a| papor - 20,8b2 - 20,8b2
Corporato notos - 02,40b - 02,40b
U.3. govornmont socur|t|os - b8,178 - b8,178
LiabiIitioa
lostr|ctod C|ass A jun|or protorrod stock - - (4,004) (4,004)
lrotorrod stock warrant - - (1,048) (1,048)

1ota| $180,007 $ 200,021 $(0,007) $ 800,021









Juno 80, 2018
LovoI 1 LovoI 2 LovoI 8 1otaI
(unauditod)
Aaaota
Cash oqu|va|onts:
Vonoy markot tunds $ 84,201 $ - $ - $ 84,201
1roasury b|||s 80,874 - - 80,874
Agoncy socur|t|os - 10,018 - 10,018
Commorc|a| papor - 22,408 - 22,408
3hort-torm |nvostmonts:
1roasury b|||s 87,487 - - 87,487
Agoncy socur|t|os - 4b,822 - 4b,822
Commorc|a| papor - 40,048 - 40,048
Corporato notos - 78,278 - 78,278
U.3. govornmont socur|t|os - 18,800 - 18,800
LiabiIitioa
lostr|ctod C|ass A jun|or protorrod stock - - (0,744) (0,744)
lrotorrod stock warrant - - (1,001) (1,001)

1ota| $108,072 $ 214,028 $(8,78b) $ 818,000










lostr|ctod C|ass A jun|or protorrod stock and tho protorrod stock warrant aro |nc|udod |n othor |ong-torm ||ab|||t|os on tho conso||datod ba|anco shoots.
FaIr value o| RestrIcted Class A JunIor Pre|erred 8tock
1ho Company's rostr|ctod C|ass A jun|or protorrod stock ||ab|||ty or|g|natos trom tho |ssuanco ot C|ass A jun|or protorrod stock as part ot post-acqu|s|t|on sorv|co
arrangomonts to corta|n cont|nu|ng omp|oyoos. 3|nco thoso |ssuancos conta|n corta|n rodompt|on toaturos, thoy aro c|ass|t|od as ||ab|||t|os on tho conso||datod ba|anco
shoots, and tho|r ta|r va|uo |s romoasurod oach roport|ng por|od. lotor to loto 10-Roooomob|o Coovortlb|o Proorroo 5tock tor turthor dota||s on C|ass A jun|or
protorrod stock's rodompt|on and othor toaturos. ln ordor to dotorm|no tho ta|r va|uo ot C|ass A jun|or protorrod

|-2b
(1)
(1)
(1)
(1)
(1)
1abIo ot Contonta
stock, tho Company t|rst dotorm|nos tho bus|noss ontorpr|so va|uo, or 3Ev, us|ng tho markot transact|on mothod wh|ch ut|||zos tho most rocont nogot|atod arm's-|ongth
transact|ons |nvo|v|ng tho sa|o or transtor ot tho Company's stock or oqu|ty |ntorosts. 1ho ost|matod 3Ev |s thon a||ocatod to tho sharos ot protorrod stock, common
stock, warrant and stock opt|ons us|ng tho 3|ack-3cho|os opt|on pr|c|ng modo|. Est|matos ot tho vo|at|||ty tor tho 3|ack-3cho|os opt|on pr|c|ng modo| woro basod on tho
vo|at|||ty ot common stock ot a group ot comparab|o, pub||c|y-tradod compan|os. Est|matos ot oxpoctod torm woro basod on tho ost|matod t|mo to ||qu|d|ty ovont. 1ho
r|sk-troo |ntorost rato was basod on tho U.3. 1roasury y|o|d tor a torm cons|stont w|th tho ost|matod oxpoctod torm.
1ho to||ow|ng tab|o prosonts a roconc|||at|on ot tho C|ass A jun|or protorrod stock ||ab|||ty moasurod at ta|r va|uo as ot 0ocombor 81, 2011 and 2012 and 1uno 80,
2018 us|ng s|gn|t|cant unobsorvab|o |nputs, and tho amount ot |oss rocordod |n tho Company's conso||datod statomonts ot oporat|ons as a rosu|t ot chango |n ta|r va|uo
(|n thousands):

CIaaa A [unior rotorrod atock IiabiIitioa
3a|anco as ot 0ocombor 81, 2011 $ -
vost|ng ot rostr|ctod stock 8,042
lova|uat|on 1,022

3a|anco as ot 0ocombor 81, 2012 4,004
vost|ng ot rostr|ctod stock (unaud|tod) 1,810
lova|uat|on (unaud|tod) 470

3a|anco as ot 1uno 80, 2018 (unaud|tod) $0,744


FaIr value o| Pre|erred 8tock Warrant
ln 0ocombor 2008, tho Company |ssuod a tu||y vostod warrant |n connoct|on w|th obta|n|ng a |oan, wh|ch was subsoquont|y ropa|d |n tu|| |n Apr|| 2000. 1ho
warrant |s oxorc|sab|o tor 110,b12 sharos ot 3or|os C convort|b|o protorrod stock w|th an oxorc|so pr|co ot $0.84 por sharo at tho so|o d|scrot|on ot tho warrant ho|dor
w|th|n ton yoars trom tho dato ot |ssuanco. 1ho Company ut|||zod tho 3|ack-3cho|os opt|on pr|c|ng modo| to dotorm|no tho ta|r va|uo ot tho outstand|ng protorrod stock
warrant. Est|matos ot tho vo|at|||ty tor tho opt|on pr|c|ng modo| woro basod on tho vo|at|||ty ot common stock ot a group ot comparab|o, pub||c|y-tradod compan|os.
Est|matos ot oxpoctod torm woro basod on tho roma|n|ng contractua| por|od ot tho warrant. 1ho r|sk-troo |ntorost rato was basod on tho U.3. 1roasury y|o|d tor a torm
cons|stont w|th tho ost|matod oxpoctod torm. 1ho koy |nputs usod |n protorrod stock warrant va|uat|on as ot 0ocombor 81, 2011 and 2012 and 1uno 80, 2018 woro as
to||ows:

Docombor 81,
2011 2012 Juno 80, 2018
(unauditod)
Expoctod d|v|dond y|o|d - - -
l|sk-troo |ntorost rato 1.8b% 0.0b% 1.40%
Expoctod vo|at|||ty b2.88% b4.71% b8.10%
Expoctod ||to (|n yoars) 0.00 b.00 b.40

|-20
1abIo ot Contonta
1ho to||ow|ng tab|o prosonts a roconc|||at|on ot tho protorrod stock warrant moasurod at ta|r va|uo as ot 0ocombor 81, 2011 and 2012 and 1uno 80, 2018 us|ng
s|gn|t|cant unobsorvab|o |nputs, and tho amount ot ga|n or |oss rocordod |n tho Company's conso||datod statomonts ot oporat|ons |n othor |ncomo (oxponso) as a rosu|t
ot chango |n ta|r va|uo (|n thousands):

Protorrod atock warrant IiabiIitioa
3a|anco as ot 0ocombor 81, 2010 $ 280
lova|uat|on 1,472

3a|anco as ot 0ocombor 81, 2011 1,7b2
lova|uat|on 101

3a|anco as ot 0ocombor 81, 2012 1,048
lova|uat|on (unaud|tod) 48

3a|anco as ot 1uno 80, 2018 (unaud|tod) $1,001


Noto 0. Proorty and Equimont, Not
1ho to||ow|ng tab|o prosonts tho dota|| ot proporty and oqu|pmont, not tor tho por|ods prosontod (|n thousands):

Docombor 81,
2011 2012 Juno 80, 2018
(unauditod)
Proorty and oquimont, not
Equ|pmont $ 08,770 $ 107,0b0 $ 207,071
|urn|turo and |oasoho|d |mprovomonts 0,000 84,808 88,782
Cap|ta||zod sottwaro 0,b28 10,400 27,000
Construct|on |n progross 7,bb0 10,828 24,228

1ota| 84,b80 2b8,811 8b7,081
loss: Accumu|atod doproc|at|on and amort|zat|on (22,bb0) (78,287) (114,478)

lroporty and oqu|pmont, not $ 01,088 $ 18b,b74 $ 242,bb8






1ho gross carry|ng amount ot proporty and oqu|pmont |nc|udos $04.b m||||on, $187.0 m||||on and $2b1.0 m||||on ot sorvor and notwork|ng oqu|pmont acqu|rod
undor cap|ta| |oasos as ot 0ocombor 81, 2011 and 2012, and 1uno 80, 2018, rospoct|vo|y. 1ho accumu|atod doproc|at|on ot tho oqu|pmont undor cap|ta| |oasos tota|od
$17.2 m||||on, $b7.7 m||||on and $80.7 m||||on as ot 0ocombor 81, 2011 and 2012, and 1uno 80, 2018, rospoct|vo|y.
0oproc|at|on oxponso tota|od $2.0 m||||on, $10.b m||||on and $b8.8 m||||on tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, rospoct|vo|y and
$21.2 m||||on and $41.4 m||||on tor tho s|x months ondod 1uno 80, 2012 and 2018, rospoct|vo|y. lnc|udod |n thoso amounts woro doproc|at|on oxponso tor sorvor and
notwork|ng oqu|pmont acqu|rod undor cap|ta| |oasos |n tho amount ot $2.0 m||||on, $1b.8 m||||on and $40.b m||||on tor tho yoar ondod 0ocombor 81, 2010, 2011 and
2012, rospoct|vo|y, and $1b.7 m||||on and $82.0 m||||on tor tho s|x months ondod 1uno 80, 2012 and 2018, rospoct|vo|y.

|-27
1abIo ot Contonta
Noto 7. CoodwiII and Othor |ntangibIo Aaaota
1ho to||ow|ng tab|o prosonts tho goodw||| act|v|t|os tor tho por|ods prosontod (|n thousands):

CoodwiII
3a|anco as ot 0ocombor 81, 2010 $ 0,140
1woot0ock acqu|s|t|on 18,bb8
Othor acqu|s|t|ons 12,0b4

3a|anco as ot 0ocombor 81, 2011 80,701
0as|ont acqu|s|t|on 11,008
Othor acqu|s|t|ons 20,080

3a|anco as ot 0ocombor 81, 2012 08,818
Crash|yt|cs acqu|s|t|on (unaud|tod) 88,2b4
3|uot|n acqu|s|t|on (unaud|tod) 00,010
Othor acqu|s|t|ons (unaud|tod) 1,020

3a|anco as ot 1uno 80, 2018 (unaud|tod) $ 108,71b


|or oach ot tho por|od prosontod, gross goodw||| ba|anco oqua|od tho not ba|anco s|nco no |mpa|rmont chargos havo boon rocordod. lotor to loto 8
-Acqolsltloos tor turthor dota||s about goodw|||.
1ho to||ow|ng tab|o prosonts tho dota|| ot othor |ntang|b|o assots tor tho por|ods prosontod (|n thousands):


Croaa Carrying
VaIuo
AccumuIatod
Amortization
Not
Carrying VaIuo
0ocombor 81, 2011:
0ovo|opod tochno|ogy $ 18,287 $ (11,800) $ 0,418

0ocombor 81, 2012:
0ovo|opod tochno|ogy $ 84,800 $ (80,bb0) $ 8,7b8

1uno 80, 2018 (unaud|tod):
0ovo|opod tochno|ogy $ b0,218 $ (87,714) $ 12,400
Assomb|od worktorco $ 1,000 $ (20) $ 1,040

1ota| $ b2,178 $ (87,784) $ 14,480






Amort|zat|on oxponso assoc|atod w|th othor |ntang|b|o assots tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012 was $7.b m||||on, $4.7 m||||on and
$18.7 m||||on, rospoct|vo|y, and tor tho s|x months ondod 1uno 80, 2012 and 2018, |t was $10.8 m||||on and $7.2 m||||on, rospoct|vo|y. 1hoso oxponsos woro |nc|udod |n
cost ot rovonuo on tho accompany|ng conso||datod statomonts ot oporat|ons. Est|matod tuturo amort|zat|on oxponso as ot 1uno 80, 2018 was $7.1 m||||on tor tho
roma|n|ng s|x months ot 2018, and $b.0 m||||on, $1.2 m||||on and $0.b m||||on tor yoars ond|ng 0ocombor 81, 2014, 201b and 2010, rospoct|vo|y.
Noto 8. Accruod and Othor Curront LiabiIitioa
1ho to||ow|ng tab|o prosonts tho dota|| ot accruod and othor curront ||ab|||t|os tor tho por|ods prosontod (|n thousands):

Docombor 81,
2011 2012 Juno 80, 2018
(unauditod)
Accruod oqu|pmont purchasos undor cap|ta| |oaso $ 4,004 $ 17,228 $ 20,428
Accruod componsat|on 8,800 8,407 11,880
Accruod tax ||ab|||t|os b,200 b,711 7,8b2
Accruod protoss|ona| sorv|cos 1,40b 8,02b 8,110
Accruod othor 0,408 17,b8b 20,001

1ota| $ 20,b07 $ b2,011 $ 07,041







|-28
1abIo ot Contonta
Noto 0. Not Loaa or 5haro
1ho Company computos not |oss por sharo ot common stock |n contorm|ty w|th tho two-c|ass mothod roqu|rod tor part|c|pat|ng socur|t|os. 1ho Company
cons|dors a|| sor|os ot tho Company's rodoomab|o convort|b|o protorrod stock and convort|b|o protorrod stock to bo part|c|pat|ng socur|t|os as tho ho|dors ot tho protorrod
stock aro ont|t|od to roco|vo a noncumu|at|vo d|v|dond on a par| passu bas|s |n tho ovont that a d|v|dond |s pa|d on common stock. 1ho Company a|so cons|dors tho
sharos |ssuod upon tho oar|y oxorc|so ot stock opt|ons subjoct to ropurchaso to bo part|c|pat|ng socur|t|os, bocauso ho|dors ot such sharos havo non-torto|tab|o d|v|dond
r|ghts |n tho ovont a d|v|dond |s pa|d on common stock. 1ho ho|dors ot a|| sor|os ot convort|b|o protorrod stock and tho ho|dors ot oar|y oxorc|sod sharos subjoct to
ropurchaso do not havo a contractua| ob||gat|on to sharo |n tho |ossos ot tho Company. As such, tho Company's not |ossos tor tho yoars ondod 0ocombor 81, 2010,
2011 and 2012, and tho s|x months ondod 1uno 80, 2012 and 2018 woro not a||ocatod to thoso part|c|pat|ng socur|t|os.
3as|c not |oss por sharo |s computod by d|v|d|ng tota| not |oss attr|butab|o to common stockho|dors by tho wo|ghtod-avorago common sharos outstand|ng. 1ho
wo|ghtod-avorago common sharos outstand|ng |s adjustod tor sharos subjoct to ropurchaso such as unvostod rostr|ctod stock grantod to omp|oyoos |n connoct|on w|th
acqu|s|t|ons, cont|ngont|y roturnab|o sharos and oscrowod sharos support|ng |ndomn|t|cat|on ob||gat|ons that aro |ssuod |n connoct|on w|th acqu|s|t|ons and unvostod
stock opt|ons oxorc|sod. 0||utod not |oss por sharo |s computod by d|v|d|ng tho not |oss attr|butab|o to common stockho|dors by tho wo|ghtod-avorago numbor ot
common sharos outstand|ng |nc|ud|ng potont|a| d||ut|vo common stock |nstrumonts. ln tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, and tho s|x months ondod
1uno 80, 2012 and 2018, tho Company's potont|a| common stock |nstrumonts such as stock opt|ons, l3Us, sharos subjoct to ropurchasos, sharos ot protorrod stock
and tho protorrod stock warrant woro not |nc|udod |n tho computat|on ot d||utod |oss por sharo as tho ottoct ot |nc|ud|ng thoso sharos |n tho ca|cu|at|on wou|d havo boon
ant|-d||ut|vo.
1ho to||ow|ng tab|o prosonts tho ca|cu|at|on ot bas|c and d||utod not |oss por sharo tor por|ods prosontod (|n thousands, oxcopt por sharo data).

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
lot |oss $(07,824) $(128,802) $(70,800) $ (40,104) $ (00,2b1)
loss: 0oomod d|v|dond to |nvostors |n ro|at|on to tho tondor ottor - 8b,810 - - -

lot |oss attr|butab|o to common stockho|dors $(07,824) $(104,118) $(70,800) $ (40,104) $ (00,2b1)










3as|c sharos:
Wo|ghtod-avorago common sharos outstand|ng 82,471 100,801 120,84b 110,8b0 18b,014
Wo|ghtod-avorago unvostod rostr|ctod stock subjoct to ropurchaso (0,470) (7,847) (8,444) (4,b2b) (0,001)

Wo|ghtod-avorago sharos usod to computo bas|c not |oss por sharo 7b,002 102,b44 117,401 114,82b 120,8b8










0||utod sharos:
Wo|ghtod-avorago sharos usod to computo d||utod not |oss por sharo 7b,002 102,b44 117,401 114,82b 120,8b8










lot |oss por sharo attr|butab|o to common stockho|dors:
3as|c $ (0.80) $ (1.00) $ (0.08) $ (0.48) $ (0.b8)










0||utod $ (0.80) $ (1.00) $ (0.08) $ (0.48) $ (0.b8)











|-20
1abIo ot Contonta
UnaudIted Pro Forma Net Loss per 8hare
lro torma bas|c and d||utod not |oss por sharo woro computod to g|vo ottoct to tho automat|c convors|on ot 3or|os A convort|b|o protorrod stock, 3or|os 3
convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock, 3or|os 0 convort|b|o protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod
stock and 3or|os G convort|b|o protorrod stock and C|ass A jun|or protorrod stock us|ng tho |t convortod mothod as though tho convors|on had occurrod as ot tho
bog|nn|ng ot tho por|od or tho or|g|na| dato ot |ssuanco, |t |ator. ln add|t|on, tho pro torma sharo amounts g|vo ottoct to tho Company's lro-2018 l3Us that havo sat|st|od
tho sorv|co cond|t|on as ot 0ocombor 81, 2012 and 1uno 80, 2018. 1hoso l3Us w||| vost and sott|o upon tho sat|stact|on ot a qua||ty|ng ovont as turthor dot|nod |n loto
12-Commoo 5tock ooo 5tockbo|oors` Lolclt. 3tock-basod componsat|on oxponso assoc|atod w|th tho lro-2018 l3Us |s oxc|udod trom th|s pro torma prosontat|on. lt
tho qua||ty|ng ovont had occurrod on 1uno 80, 2018, tho Company wou|d havo rocordod $820.0 m||||on ot stock-basod componsat|on oxponso ro|atod to thoso l3Us.


Yoar Endod
Docombor 81,
2012
5ix Nontha
Endod Juno 80,
2018
(unauditod)
lot |oss $ (70,800) $ (00,2b1)
3as|c sharos:
Wo|ghtod-avorago sharos usod to computo bas|c not |oss por sharo 117,401 120,8b8
lro torma adjustmont to rot|oct assumod convors|on ot protorrod stock to occur upon comp|ot|on ot tho Company's
|n|t|a| pub||c ottor|ng 881,481 882,280
lro torma adjustmont to rot|oct assumod vost|ng ot lro-2018 l3Us 1,008 b,80b

Wo|ghtod-avorago sharos usod to computo bas|c pro torma not |oss por sharo 440,000 408,084




0||utod sharos:
Wo|ghtod-avorago sharos usod to computo bas|c pro torma not |oss por sharo 440,000 408,084
Ettoct ot potont|a||y d||ut|vo socur|t|os - -

Wo|ghtod-avorago sharos usod to computo d||utod pro torma not |oss por sharo 440,000 408,084




lot |oss por sharo attr|butab|o to common stockho|dors:
3as|c and 0||utod $ (0.18) $ (0.1b)




1ho to||ow|ng potont|a| common sharos woro oxc|udod trom tho ca|cu|at|on ot d||utod not |oss por sharo attr|butab|o to common stockho|dors and pro torma
d||utod not |oss por sharo bocauso tho|r ottoct wou|d havo boon ant|-d||ut|vo tor tho por|ods prosontod (|n thousands):

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
3tock opt|ons 71,bb1 bb,000 48,787 b4,882 44,1b7
lost-2018 l3Us - - - - 10,84b
3haros subjoct to ropurchaso 7,788 b,b20 4,287 b,1b8 7,100
lrotorrod stock warrant 117 117 117 117 117
Noto 10. RodoomabIo ConvortibIo Protorrod 5tock
As ot 1uno 80, 2018, tho Company's Cort|t|cato ot lncorporat|on, as amondod, author|zos tho Company to |ssuo 1b.0 m||||on sharos ot C|ass A jun|or protorrod
stock. Undor tho torms ot tho Cort|t|cato ot lncorporat|on, tho 3oard ot 0|roctors may dotorm|no tho r|ghts, protoroncos and torms ot tho Company's author|zod sharos ot
protorrod stock.

|-80
1abIo ot Contonta
votIng and IvIdends
Each ho|dor ot C|ass A jun|or protorrod stock |s ont|t|od to tho numbor ot votos oqua| to ono-tonth ot tho numbor ot sharos ot common stock |nto wh|ch thoy
may bo convortod. 1ho ho|dors ot C|ass A jun|or protorrod stock aro a|so ont|t|od to roco|vo d|v|donds whonovor tunds aro |oga||y ava||ab|o and whon and |t doc|arod by
tho 3oard ot 0|roctors on a par| passu bas|s. 3uch d|v|donds aro noncumu|at|vo.
LIquIdatIon
ln tho ovont ot any ||qu|dat|on, d|sso|ut|on or w|nd|ng up ot tho Company, o|thor vo|untary or |nvo|untary, subjoct to paymont |n tu|| ot tho ||qu|dat|on protoronco ot
tho 3or|os G convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os 0 convort|b|o protorrod stock, 3or|os C
convort|b|o protorrod stock, 3or|os 3 convort|b|o protorrod stock and 3or|os A convort|b|o protorrod stock, tho ho|dors ot tho thon outstand|ng C|ass A jun|or protorrod
stock aro t|rst ont|t|od to roco|vo, pr|or and |n protoronco to any paymont or d|str|but|on, or sott|ng as|do tor any paymont or d|str|but|on, ot any ava||ab|o tunds and
assots on any sharos ot tho common stock, an amount oqua| to tho groator ot (a) $1.00 por sharo ot C|ass A jun|or protorrod stock, adjustod tor stock sp||ts,
comb|nat|ons, stock d|v|donds or rocap|ta||zat|ons ot tho C|ass A jun|or protorrod stock, p|us a|| doc|arod but unpa|d d|v|donds, or (b) tho por sharo amount that wou|d
havo boon pa|d |t |t had boon convortod to common stock. lt upon ||qu|dat|on, d|sso|ut|on or w|nd|ng up ot tho Company and paymont |n tu|| ot tho ||qu|dat|on protoronco
ot tho convort|b|o son|or protorrod stock (3or|os A convort|b|o protorrod stock, 3or|os 3 convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock, 3or|os 0
convort|b|o protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock and 3or|os G convort|b|o protorrod stock), tho ava||ab|o tunds and
assots to bo d|str|butod to tho ho|dors ot tho C|ass A jun|or protorrod stock sha|| bo |nsutt|c|ont to porm|t tho paymont to such stockho|dors ot tho tu|| protoront|a|
amount, thon a|| ot tho ava||ab|o tunds and assots sha|| bo d|str|butod among tho ho|dors ot tho thon outstand|ng C|ass A jun|or protorrod stock pro rata basod on tho
amounts to wh|ch such ho|dors wou|d othorw|so bo ont|t|od.
ConversIon
Each sharo ot C|ass A jun|or protorrod stock automat|ca||y convorts |nto tu||y pa|d and non-assossab|o sharos ot common stock |mmod|ato|y upon tho oar||or ot
(1) tho c|os|ng ot a t|rm comm|tmont undorwr|tton pub||c ottor|ng pursuant to an ottoct|vo rog|strat|on statomont t||od covor|ng tho ottor and sa|o ot common stock |n wh|ch
tho aggrogatod pub||c ottor|ng pr|co oqua|s or oxcoods $2b m||||on, or (2) tho roco|pt ot tho consont ot at |oast 00% ot tho ho|dors ot thon outstand|ng sharos ot son|or
protorrod stock to convort tho outstand|ng sharos ot C|ass A jun|or protorrod stock |nto common stock prov|dod that a|| outstand|ng sharos ot son|or protorrod stock aro
s|m||ar|y convortod |nto common stock upon such ovont. 1ho C|ass A jun|or protorrod stock |s not convort|b|o |nto common stock at tho opt|on ot tho stockho|dor.
1ho convors|on pr|co |s |n|t|a||y dot|nod as tho C|ass A 1un|or lrotorrod l|qu|dat|on lrotoronco ot $1.00 por sharo and subjoct to tho to||ow|ng adjustmonts:
(a) |ssuanco ot common stock as d|v|donds or d|str|but|ons, and othor d|v|donds and d|str|but|ons, (b) subd|v|s|on or comb|nat|on ot outstand|ng sharos ot common
stock, w|thout a corrospond|ng comb|nat|on ot tho convort|b|o son|or protorrod stock and tho C|ass A jun|or protorrod stock, (c) roc|ass|t|cat|on, oxchango and
subst|tut|on, or (d) roorgan|zat|on, conso||dat|on and morgors. As ot 0ocombor 81, 2011, 2012 and 1uno 80, 2018, oach sharo ot C|ass A jun|or protorrod stock w|||
convort |nto common stock on a ono to ono bas|s.

|-81
1abIo ot Contonta
RedemptIon
At any t|mo to||ow|ng lovombor 18, 2018 and upon tho wr|tton roquost trom ho|dors ot at |oast a major|ty ot tho thon outstand|ng sharos ot C|ass A jun|or
protorrod stock, tho Company must rodoom a|| outstand|ng sharos ot C|ass A jun|or protorrod stock w|th|n 180 days to||ow|ng tho roco|pt ot roquost, prov|dod that tho
Company w||| havo outstand|ng ono or moro sharos ot ono or moro c|assos or sor|os ot stock |mmod|ato|y to||ow|ng tho rodompt|on. 1ho rodompt|on pr|co tor oach sharo
ot C|ass A jun|or protorrod stock rodoomod wou|d bo a cash paymont oqua| to tho ta|r markot va|uo ot such sharo as ot tho rospoct|vo dato ot |ssuanco ot such sharo as
dotorm|nod by tho 3oard ot 0|roctors or a comm|ttoo |n good ta|th.
RestrIcted Class A JunIor Pre|erred 8tock
1ho Company has grantod rostr|ctod C|ass A jun|or protorrod stock to corta|n koy cont|nu|ng omp|oyoos |n connoct|on w|th acqu|s|t|ons subjoct to a |aps|ng
r|ght ot ropurchaso. 1ho |aps|ng ot tho r|ght ot ropurchaso |s dopondont on tho rospoct|vo omp|oyoo's cont|nuod omp|oymont at tho Company dur|ng tho roqu|s|to sorv|co
por|od, wh|ch |s gonora||y tour yoars trom tho |ssuanco dato. 1ho Company has tho opt|on to ropurchaso tho unvostod sharos upon torm|nat|on ot omp|oymont pr|or to
tho r|ght ot ropurchaso |aps|ng. 1ho ta|r va|uo ot tho rostr|ctod C|ass A jun|or protorrod stock |ssuod to omp|oyoos |s rocordod as componsat|on oxponso on a stra|ght-
||no bas|s ovor tho roqu|s|to sorv|co por|od. 1hoso sharos aro |nc|udod as part ot othor |ong-torm ||ab|||t|os on tho Company's conso||datod ba|anco shoots. 1ho ta|r va|uo
ot thoso sharos |s romoasurod at oach roport|ng por|od unt|| tho C|ass A jun|or protorrod stock |s sott|od through convors|on or rodompt|on or unt|| tho rodompt|on toaturo
oxp|ros, and tho chango |n ta|r va|uo |s rocordod as an add|t|on to or roduct|on |n componsat|on oxponso dur|ng tho por|od ot chango. 1ho ta|r va|uo ot thoso sharos |s
dotorm|nod basod on tho ta|r va|uo ot tho undor|y|ng C|ass A jun|or protorrod stock ost|matod as part ot tho Company's cap|ta| stock and bus|noss ontorpr|so va|uat|on
procoss. lotor to loto b-lolr Vo|oo Voosoromoots tor turthor dota||s.
1ho act|v|t|os tor tho rostr|ctod C|ass A jun|or protorrod stock |ssuod to omp|oyoos tor tho yoar ondod 0ocombor 81, 2012 and tho s|x months ondod 1uno 80,
2018 aro summar|zod as to||ows (|n thousands, oxcopt por sharo data):

Numbor ot 5haroa
Woightod-Avorago
Crant-Dato Fair
VaIuo Por 5haro
Unvostod rostr|ctod C|ass A jun|or protorrod stock at 0ocombor 81, 2011 18b $ 18.00
Grantod 704 $ 18.02
vostod (22) $ 18.00
|orto|tod (12) $ 18.00

Unvostod rostr|ctod C|ass A jun|or protorrod stock at 0ocombor 81, 2012 80b $ 18.bb
vostod (unaud|tod) (804) $ 18.b0
|orto|tod (unaud|tod) (4b) $ 18.00

Unvostod rostr|ctod C|ass A jun|or protorrod stock at 1uno 80, 2018 (unaud|tod) 4b0 $ 18.b7



ln tho yoar ondod 0ocombor 81, 2012 and tho s|x months ondod 1uno 80, 2012 and 2018, tho Company rocogn|zod $4.0 m||||on, $1.0 m||||on and $1.8 m||||on ot
componsat|on oxponso, rospoct|vo|y, ro|atod to tho rostr|ctod C|ass A jun|or protorrod stock |ssuod to omp|oyoos |nc|us|vo ot tho ottoct ot ta|r va|uo romoasuromont. 1ho
amount ot componsat|on oxponso rocordod |n ro|at|on to rostr|ctod C|ass A jun|or protorrod stock |n tho yoars ondod 0ocombor 81, 2010 and 2011 was not mator|a|. As
ot

|-82
1abIo ot Contonta
1uno 80, 2018, tho unamort|zod stock-basod componsat|on oxponso ro|atod to rostr|ctod C|ass A jun|or protorrod stock was approx|mato|y $b.4 m||||on w|th a wo|ghtod-
avorago roma|n|ng roqu|s|to sorv|co por|od ot 2.00 yoars.
Noto 11. ConvortibIo Protorrod 5tock
As ot 1uno 80, 2018, tho Company's Cort|t|cato ot lncorporat|on, as amondod, author|zos tho Company to |ssuo 820.7 m||||on sharos ot convort|b|o protorrod
stock. Undor tho torms ot tho Cort|t|cato ot lncorporat|on, tho 3oard ot 0|roctors may dotorm|no tho r|ghts, protoroncos and torms ot tho Company's author|zod sharos ot
protorrod stock.
votIng
1ho ho|dors ot 3or|os A convort|b|o protorrod stock, 3or|os 3 convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock, 3or|os 0 convort|b|o protorrod
stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock and 3or|os G convort|b|o protorrod stock havo ono voto tor oach sharo ot common stock
|nto wh|ch thoy may bo convortod.
IvIdends
1ho ho|dors ot 3or|os A convort|b|o protorrod stock, 3or|os 3 convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock, 3or|os 0 convort|b|o protorrod
stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock and 3or|os G convort|b|o protorrod stock sha|| bo ont|t|od to roco|vo, on|y whon and as
doc|arod by tho 3oard ot 0|roctors, but on|y out ot tunds that aro |oga||y ava||ab|o thorotoro, cash d|v|donds on a par| passu bas|s. 3uch d|v|donds sha|| bo
noncumu|at|vo.
LIquIdatIon
ln tho ovont ot any ||qu|dat|on, d|sso|ut|on or w|nd|ng up ot tho Company, o|thor vo|untary or |nvo|untary, tho ho|dors ot tho thon outstand|ng convort|b|o protorrod
stock aro t|rst ont|t|od to roco|vo, pr|or and |n protoronco to any paymont or d|str|but|on ot any ava||ab|o tunds and assots to tho ho|dors ot C|ass A jun|or protorrod stock
or common stock. 1ho ho|dors ot convort|b|o protorrod stock aro ont|t|od to procoods oqua| to tho groator ot or|g|na| |ssuo pr|co p|us doc|arod and unpa|d d|v|donds or
por sharo amount that wou|d havo boon pa|d |t |t has boon convortod to common stock. 1ho tu|| protoront|a| amount |s t|rst pa|d to tho ho|dors ot tho sor|os ot convort|b|o
protorrod stock w|th tho h|ghost |ovo| ot ||qu|dat|on protoronco thon to tho stockho|dors ot tho noxt |ovo| ot protoronco |n ordor (3or|os G convort|b|o protorrod stock,
3or|os | convort|b|o protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os 0 convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock, 3or|os 3 convort|b|o
protorrod stock and 3or|os A convort|b|o protorrod stock, ||stod |n tho ordor ot h|ghost ||qu|dat|on protoronco to tho |owost). lt tho ava||ab|o tunds and assots bocomo
|nsutt|c|ont to sat|sty tho tu|| protoront|a| paymont tor tho stockho|dors ot a part|cu|ar sor|os ot convort|b|o protorrod stock |n ordor, thon a|| ot tho ava||ab|o tunds and
assots sha|| bo d|str|butod among tho ho|dors ot that sor|os ot convort|b|o protorrod stock pro-rata basod on tho amounts to wh|ch such ho|dors wou|d othorw|so bo
ont|t|od.
Un|oss othorw|so approvod by a voto ot 00% ot ho|dors ot tho 3or|os 3 convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock, 3or|os 0 convort|b|o
protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock and 3or|os G convort|b|o protorrod stock vot|ng as ono c|ass, and prov|dod that
no such approva| or wa|vor sha|| bo ottoct|vo w|th rospoct to tho r|ghts ot ho|dors ot 3or|os G convort|b|o protorrod stock un|oss ho|dors ot |oast 0b% ot tho 3or|os G
convort|b|o protorrod stock approvo, a doomod ||qu|dat|on ovont w||| occur upon (a) roorgan|zat|on by sharo oxchango, conso||dat|on or morgor whoro vot|ng socur|t|os
pro-transact|on do not roprosont or aro not

|-88
1abIo ot Contonta
convortod |nto socur|t|os ot tho surv|v|ng ont|ty that possoss at |oast a major|ty ot tho vot|ng powor ot a|| socur|t|os ot tho surv|v|ng corporat|on, or (b) sa|o ot a|| or
substant|a||y a|| ot assots ot tho Company.
lt thoro aro any ava||ab|o tunds and assots roma|n|ng attor tho paymont or d|str|but|on to ho|dors ot protorrod stock ot tho|r tu|| protoront|a| amount doscr|bod
abovo, thon a|| such roma|n|ng ava||ab|o tunds and assots sha|| bo d|str|butod among tho ho|dors ot tho thon outstand|ng common stock pro rata accord|ng to tho
numbor ot common stock ho|d by oach ho|dor thoroot.
1hoso ||qu|dat|on toaturos causo tho 3or|os A convort|b|o protorrod stock, 3or|os 3 convort|b|o protorrod stock, 3or|os C convort|b|o protorrod stock,
3or|os 0 convort|b|o protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock and 3or|os G convort|b|o protorrod stock to bo c|ass|t|od
as mozzan|no oqu|ty rathor than as a componont ot stockho|dors' dot|c|t.
ConversIon
Each sharo ot protorrod stock, at tho opt|on ot tho ho|dor, |s convort|b|o |nto a numbor ot tu||y pa|d sharos ot common stock. Convors|on ot protorrod stock
occurs automat|ca||y and |mmod|ato|y upon tho oar||or to occur ot tho c|os|ng ot a t|rm comm|tmont undorwr|tton pub||c ottor|ng pursuant to an ottoct|vo rog|strat|on
statomont t||od covor|ng tho ottor and sa|o ot common stock |n wh|ch (|) tho aggrogato pub||c ottor|ng pr|co oqua|s or oxcoods $2b m||||on, (||) w|th rospoct to tho
3or|os | convort|b|o protorrod stock on|y, tho pub||c ottor pr|co por sharo ot wh|ch |s not |oss than ono t|mos tho or|g|na| |ssuo pr|co ot tho 3or|os | convort|b|o protorrod
stock, (|||) w|th rospoct to tho 3or|os E convort|b|o protorrod stock on|y, tho pub||c ottor pr|co por sharo ot wh|ch |s not |oss than ono t|mos tho or|g|na| |ssuo pr|co ot tho
3or|os E convort|b|o protorrod stock and (|v) w|th rospoct to tho 3or|os 0 convort|b|o protorrod stock on|y, tho |n|t|a| pub||c ottor|ng pr|co por sharo ot wh|ch |s not |oss
than two t|mos tho or|g|na| pr|co ot protorrod stock, or tho dato spoc|t|od by ho|dors ot at |oast 00% ot tho thon outstand|ng 3or|os 3 convort|b|o protorrod stock, 3or|os
C convort|b|o protorrod stock, 3or|os 0 convort|b|o protorrod stock, 3or|os E convort|b|o protorrod stock, 3or|os | convort|b|o protorrod stock and 3or|os G convort|b|o
protorrod stock, prov|dod howovor, that |n tho ovont that tho ho|dors ot at |oast 0b% ot tho thon outstand|ng sharos ot ho|dors 3or|os G convort|b|o protorrod stock, at
|oast a major|ty ot tho thon outstand|ng sharos ot 3or|os | convort|b|o protorrod stock or at |oast ot 0b% ot tho thon outstand|ng sharo ot 3or|os E convort|b|o protorrod
stock do not consont or agroo to tho convors|on, convors|on sha|| not bo ottoct|vo to any sharos ot tho ro|ovant sor|os ot 3or|os G convort|b|o protorrod stock, 3or|os |
convort|b|o protorrod stock or 3or|os E convort|b|o protorrod stock tor wh|ch tho approva| throsho|d was not ach|ovod.
1ho convors|on pr|co |s |n|t|a||y dot|nod as tho or|g|na| |ssuo pr|co ot $0.001 tor 3or|os A convort|b|o protorrod stock, $0.11 tor 3or|os 3 convort|b|o protorrod
stock, $0.8b tor 3or|os C convort|b|o protorrod stock, $0.72 tor 3or|os 0 convort|b|o protorrod stock, $2.07 tor 3or|os E convort|b|o protorrod stock, $7.08 tor
3or|os | convort|b|o protorrod stock and $10.00 tor 3or|os G convort|b|o protorrod stock, subjoct to adjustmonts: (a) |ssuanco ot common stock as d|v|donds or
d|str|but|ons, and othor d|v|donds and d|str|but|ons, (b) subd|v|s|on or comb|nat|on ot outstand|ng sharos ot common stock, (c) roc|ass|t|cat|on, oxchango and
subst|tut|on or (d) roorgan|zat|on, conso||dat|on and morgors. Add|t|ona||y, tho convors|on pr|co ot a|| sor|os ot convort|b|o protorrod stock |s subjoct to adjustmont upon
corta|n sa|o ot sharos ot common or protorrod stock bo|ow tho|r thon ottoct|vo convors|on pr|co, as wo|| as upon corta|n sa|os ot r|ghts, opt|ons or convort|b|o socur|t|os
whoroupon tho pr|co ot sharos ot common stock |ssuab|o upon oxorc|so ot such r|ghts, opt|ons or convort|b|o socur|t|os |s bo|ow tho|r thon ottoct|vo convors|on pr|co. As
ot 0ocombor 81, 2011 and 2012 and 1uno 80, 2018, oach sharo ot protorrod stock w||| convort |nto common stock on a ono to ono bas|s.

|-84
1abIo ot Contonta
Noto 12. Common 5tock and 5tockhoIdora' Doticit
Common 8tock
As ot 1uno 80, 2018, tho Company |s author|zod to |ssuo 000.0 m||||on sharos ot $0.00000b par va|uo common stock |n accordanco w|th tho Cort|t|cato ot
lncorporat|on, as amondod.
Each sharo ot common stock |s ont|t|od to ono voto. 1ho ho|dors ot common stock aro a|so ont|t|od to roco|vo d|v|donds whonovor tunds aro |oga||y ava||ab|o
and whon and |t doc|arod by tho 3oard ot 0|roctors, subjoct to tho pr|or r|ghts ot ho|dors ot a|| c|assos ot stock outstand|ng. As ot 1uno 80, 2018, no d|v|donds havo boon
doc|arod.
RestrIcted Common 8tock
1ho Company has grantod rostr|ctod common stock to corta|n koy cont|nu|ng omp|oyoos |n connoct|on w|th tho acqu|s|t|ons. vost|ng ot th|s stock |s dopondont
on tho rospoct|vo omp|oyoo's cont|nuod omp|oymont at tho Company dur|ng tho roqu|s|to sorv|co por|od, wh|ch |s gonora||y throo to tour yoars trom tho |ssuanco dato,
and tho Company has tho opt|on to ropurchaso tho unvostod sharos upon torm|nat|on ot omp|oymont. 1ho ta|r va|uo ot tho rostr|ctod common stock |ssuod to
omp|oyoos |s rocordod as componsat|on oxponso on a stra|ght-||no bas|s ovor tho roqu|s|to sorv|co por|od.
1ho act|v|t|os tor tho rostr|ctod common stock |ssuod to omp|oyoos tor tho yoar ondod 0ocombor 81, 2012 and tho s|x months ondod 1uno 80, 2018 aro
summar|zod as to||ows (|n thousands, oxcopt por sharo data):

Numbor ot 5haroa
Woightod-Avorago
Crant-Dato Fair
VaIuo Por 5haro
Unvostod rostr|ctod common stock at 0ocombor 81, 2011 2,801 $ b.82
Grantod 008 $ 18.40
vostod (1,4b8) $ 2.00
Canco|od (882) $ 12.0b

Unvostod rostr|ctod common stock at 0ocombor 81, 2012 1,4b0 $ 14.b7
Grantod (unaud|tod) 8,280 $ 17.01
vostod (unaud|tod) (280) $ 4.08
Canco|od (unaud|tod) (88) $ 12.0b

Unvostod rostr|ctod common stock at 1uno 80, 2018 (unaud|tod) 4,820 $ 17.12



ln tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, tho Company rocordod $0.1 m||||on, $1.8 m||||on and $0.8 m||||on, rospoct|vo|y, ot componsat|on
oxponso ro|atod to rostr|ctod common stock |ssuod to omp|oyoos. ln tho s|x months ondod 1uno 80, 2012 and 2018, tho Company rocordod $8.0 m||||on and
$12.b m||||on ot componsat|on oxponso, rospoct|vo|y, |n ro|at|on to tho rostr|ctod common stock |ssuod to omp|oyoos. As ot 1uno 80, 2018, thoro was $b8.b m||||on ot
unamort|zod stock-basod componsat|on oxponso ro|atod to rostr|ctod common stock |ssuod wh|ch |s oxpoctod to bo rocogn|zod ovor a wo|ghtod-avorago por|od ot 8.82
yoars.
EquIty lncentIve Plans
As ot 1uno 80, 2018, tho Company's 2007 Equ|ty lncont|vo l|an prov|dos tor tho |ssuanco ot stock opt|ons, rostr|ctod stock and l3U grants tor up to
1b0.4 m||||on sharos ot common stock to o||g|b|o part|c|pants and thoro woro 14.8 m||||on sharos ava||ab|o tor tuturo |ssuanco.

|-8b
1abIo ot Contonta
Undor tho 2007 Equ|ty lncont|vo l|an, stock opt|ons may not bo grantod at |oss than 8b% ot tho ta|r va|uo ot common stock on tho dato ot tho grant, prov|dod
that (|) tho oxorc|so pr|co ot an |ncont|vo stock opt|on w||| not bo |oss than 100% ot tho ta|r markot va|uo ot common stock on tho dato ot tho grant and (||) tho oxorc|so
pr|co ot any opt|on grantod to a 10% stockho|dor w||| not bo |oss than 110% ot tho ta|r markot va|uo ot common stock on tho dato ot tho grant. |a|r va|uo |s dotorm|nod
by tho 3oard ot 0|roctors |n good ta|th basod on |ntormat|on ava||ab|o to |t and tho Company's managomont at tho t|mo ot grant |t such common stock |s not pub||c|y-
tradod, ||stod or adm|ttod to trad|ng on a nat|ona| socur|t|os oxchango, nor roportod |n any nowspapor or othor sourco. 3tock opt|ons bocomo oxorc|sab|o at such t|mos
and undor such cond|t|ons as dotorm|nod by tho 3oard ot 0|roctors. 3tock opt|ons gonora||y vost ovor tour yoars and havo a max|mum torm ot ton yoars.
Undor tho 2007 Equ|ty lncont|vo l|an, tho Company has grantod l3Us to domost|c and |ntornat|ona| omp|oyoos. l3Us grantod to (|) |ntornat|ona| omp|oyoos,
and (||) domost|c omp|oyoos pr|or to |obruary 2018 (lro-2018 l3Us') vost upon tho sat|stact|on ot both a sorv|co cond|t|on and a portormanco cond|t|on. 1ho sorv|co
cond|t|on tor thoso awards |s gonora||y sat|st|od ovor tour yoars. 1ho portormanco cond|t|on |s sat|st|od upon tho occurronco ot a qua||ty|ng ovont, dot|nod as tho oar||or ot
(|) tho dato that |s tho oar||or ot (x) s|x months attor tho ottoct|vo dato ot th|s ottor|ng or (y) Varch 8th ot tho ca|ondar yoar to||ow|ng tho ottoct|vo dato ot th|s ottor|ng, and
(||) tho dato ot a chango |n contro|.
l3Us grantod to domost|c omp|oyoos start|ng |n |obruary 2018 (lost-2018 l3Us') aro not subjoct to a portormanco cond|t|on |n ordor to vost. 1ho major|ty ot
lost-2018 l3Us vost ovor a sorv|co por|od ot tour yoars. Undor tho torms ot tho 2007 Equ|ty lncont|vo l|an, tho sharos undor|y|ng lost-2018 l3Us that sat|sty tho
sorv|co cond|t|on aro to bo do||vorod to ho|dors no |ator than tho t|ttoonth day ot tho th|rd month to||ow|ng tho ond ot tho ca|ondar yoar tho sorv|co cond|t|on |s sat|st|od, or
|t |ator, tho ond ot tho Company's tax yoar, but no oar||or than August 1b, 2014.
1ho Company's 2011 Acqu|s|t|on Opt|on l|an was adoptod tor tho purposo ot grant|ng stock opt|ons to now omp|oyoos |n connoct|on w|th tho acqu|s|t|on ot
1woot0ock, lnc. |n Vay 2011. 1ho 2011 Acqu|s|t|on Opt|on l|an prov|dos tor tho |ssuanco ot 70,000 stock opt|ons to o||g|b|o part|c|pants. As ot 1uno 80, 2018, 18,000
stock opt|ons grantod undor th|s p|an woro outstand|ng and 7,000 stock opt|ons woro ava||ab|o tor tuturo |ssuanco.
1ho Company a|so assumod stock opt|ons ot acqu|rod ont|t|os |n connoct|on w|th tho acqu|s|t|ons ot V|xor labs, lnc., Crash|yt|cs, lnc. and 3|uot|n labs, lnc.
Wh||o tho rospoct|vo stock p|ans woro torm|natod on tho c|os|ng ot tho acqu|s|t|ons, thoy cont|nuo to govorn tho torms ot stock opt|ons assumod |n tho rospoct|vo
acqu|s|t|on. As ot 1uno 80, 2018, thoro woro an aggrogato ot 02b,000 outstand|ng stock opt|ons assumod |n thoso acqu|s|t|ons.
ln add|t|on to thoso oqu|ty componsat|on p|ans, thoro woro 2bb,000 stock opt|ons outstand|ng as ot 1uno 80, 2018 undor a stand-a|ono stock opt|on agroomont
ontorod |nto w|th an omp|oyoo |n 1u|y 2000.
Early ExercIse o| 8tock OptIons
1ho 2007 Equ|ty lncont|vo l|an a||ows tor grants ot |mmod|ato|y oxorc|sab|o stock opt|ons. 1ho unvostod sharos ot common stock oxorc|sod aro subjoct to tho
Company's r|ght to ropurchaso at tho or|g|na| oxorc|so pr|co. As ot 0ocombor 81, 2011, 2012, and 1uno 80, 2018, a tota| ot 2.4 m||||on, 1.0 m||||on and 0.b m||||on sharos
ot unvostod stock opt|ons oxorc|sod by tho omp|oyoos woro subjoct to ropurchaso at an aggrogato pr|co ot $2.8 m||||on, $1.2 m||||on and $0.8 m||||on, rospoct|vo|y.
1hoso amounts aro rocordod as accruod and othor curront ||ab|||t|os and othor |ong-torm ||ab|||t|os on tho Company's conso||datod ba|anco shoots and w||| bo
roc|ass|t|od to add|t|ona| pa|d-|n cap|ta| as tho Company's ropurchaso r|ght |apsos. ln tho yoar ondod 0ocombor 81, 2012 and tho s|x months ondod

|-80
1abIo ot Contonta
1uno 80, 2018, tho Company ropurchasod 142,000 and 80,000 sharos, rospoct|vo|y, ot common stock ro|atod to unvostod stock opt|ons, at tho or|g|na| oxorc|so pr|co
duo to tho torm|nat|on ot omp|oyoos. ln tho yoar ondod 0ocombor 81, 2012 and tho s|x months ondod 1uno 80, 2018, tho Company |ssuod 178,000 and 8,000 sharos ot
common stock, rospoct|vo|y, |n connoct|on w|th tho omp|oyoos' oxorc|so ot stock opt|ons pr|or to vost|ng.
8tock OptIon ActIvIty
A summary ot stock opt|on act|v|ty tor tho yoar ondod 0ocombor 81, 2012 and tho s|x months ondod 1uno 80, 2018 |s as to||ows (|n thousands, oxcopt yoars
and por sharo data):

Otiona Outatanding

Numbor ot
5haroa
Woightod-
Avorago Exorciao
Prico Por 5haro
Woightod-
Avorago
Romaining
ContractuaI Lito
(in yoara)
Aggrogato
|ntrinaic VaIuo
Outstand|ng at 0ocombor 81, 2011 bb,000 $ 1.2b 8.20 $ 040,880
Opt|ons grantod 1,007 $ 14.42
Opt|ons oxorc|sod (b,b77) $ 0.42
Opt|ons canco|od (2,000) $ 2.74

Outstand|ng at 0ocombor 81, 2012 48,787 $ 1.80 7.88 $ 741,b08



Opt|ons assumod |n connoct|on w|th acqu|s|t|ons (unaud|tod) 822 $ 1.bb
Opt|ons oxorc|sod (unaud|tod) (4,b28) $ 1.28
Opt|ons canco|od (unaud|tod) (020) $ 8.47

Outstand|ng at 1uno 80, 2018 (unaud|tod) 44,1b7 $ 1.82 0.08 $ 088,022



vostod and oxpoctod to vost at 1uno 80, 2018 (unaud|tod) 48,270 $ 1.78 0.01 $ 078,7b8
Exorc|sab|o at 1uno 80, 2018 (unaud|tod) 80,8b8 $ 1.12 0.00 $ b02,048

1ho oxpoctod to vost opt|onsaro tho rosu|t ot app|y|ng pro-vost|ng torto|turo rato assumpt|onsto unvostod opt|onsoutstand|ng.
1ho aggrogato |ntr|ns|c va|uo |n tho tab|o abovo roprosonts tho d|ttoronco botwoon tho ost|matod ta|r va|uo ot common stock and tho oxorc|so pr|co ot
outstand|ng, |n-tho-monoy stock opt|ons.
1ho tota| |ntr|ns|c va|uo ot stock opt|ons oxorc|sod |n tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, and tho s|x months ondod 1uno 80, 2012 and 2018
woro $7.1 m||||on, $144.0 m||||on, $84.0 m||||on, $14.8 m||||on and $71.8 m||||on, rospoct|vo|y. 1ho tota| ta|r va|uo ot stock opt|ons vostod |n 2010, 2011 and 2012 and tho
s|x months ondod 1uno 80, 2012 and 2018 woro $2.4 m||||on, $7.1 m||||on, $11.7 m||||on, $0.b m||||on and $4.8 m||||on, rospoct|vo|y.

|-87
(1)
(1)
Outstand|ngg at aa 1uno 80, 2018 ((unaud|tod)) 44 44 ,1b77 $ 1.822 0.088 $ 088,0222
1abIo ot Contonta
R8U ActIvIty
1ho to||ow|ng tab|o summar|zos tho act|v|ty ro|atod to tho Company's lro- and lost-2018 l3Us tor tho yoar ondod 0ocombor 81, 2012 and tho s|x months
ondod 1uno 80, 2018. |or purposos ot th|s tab|o, vostod l3Us roprosont tho sharos tor wh|ch tho sorv|co cond|t|on had boon tu|t|||od as ot oach rospoct|vo dato (|n
thousands, oxcopt por sharo data):

R5ua Outatanding
5haroa
Woightod-
Avorago Crant-
Dato Fair VaIuo
Por 5haro
Unvostod and outstand|ng at 0ocombor 81, 2011 0,408 $ 12.08
Grantod 8b,084 $ 14.00
vostod (8,00b) $ 12.48
Canco|od (2,048) $ 18.28

Unvostod and outstand|ng at 0ocombor 81, 2012 80,4b4 $ 14.80
Grantod (unaud|tod) 10,bb1 $ 17.0b
vostod (unaud|tod) (b,278) $ 18.42
Canco|od (unaud|tod) (2,108) $ 14.8b

Unvostod and outstand|ng at 1uno 80, 2018 (unaud|tod) b1,b04 $ 1b.b0



vostod and outstand|ng at 1uno 80, 2018 (unaud|tod) 8,8b0 $ 18.08



8tock-Based CompensatIon Expense
1ota| stock-basod componsat|on oxponso rocordod tor omp|oyoo and non-omp|oyoo stock opt|ons, lost-2018 l3Us and rostr|ctod common and C|ass A jun|or
protorrod stock |n tho yoars ondod 0ocombor 81, 2010, 2011 and 2012 and tho s|x months ondod 1uno 80, 2012 and 2018 |s summar|zod as to||ows (|n thousands):

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
Emp|oyoo $4,807 $b4,b82 $28,200 $ 14,148 $ 84,41b
lon-omp|oyoo 1,084 b,802 2,472 1,070 1,1b8

1ota| $b,081 $00,884 $2b,741 $ 10,127 $ 8b,b08










1ho componsat|on oxponso |s a||ocatod basod on tho cost contor tho award ho|dor bo|ongs to. 1ota| stock-basod componsat|on oxponso by tunct|on |s as
to||ows (|n thousands):

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
Cost ot rovonuo $ 200 $ 1,820 $ 800 $ 420 $ 1,0bb
losoarch and dovo|opmont 8,400 88,bb0 12,022 0,201 24,107
3a|os and markot|ng 240 1,bb8 1,840 020 4,014
Gonora| and adm|n|strat|vo 2,078 28,4b2 10,078 8,700 4,802

1ota| $b,081 $00,884 $2b,741 $ 10,127 $ 8b,b08











|-88
1abIo ot Contonta
ln connoct|on w|th tho|r part|c|pat|on |n tho 3or|os G convort|b|o protorrod stock t|nanc|ng, tho 3or|os G convort|b|o protorrod stock |nvostors a|so part|c|patod |n
a tondor ottor to purchaso up to an aggrogato ot 24.0 m||||on sharos ot add|t|ona| common and 3or|os A convort|b|o protorrod stock through 3or|os | convort|b|o protorrod
stock trom tho Company's omp|oyoos and ox|st|ng stockho|dors w|th tho max|mum aggrogato ottor pr|co ot up to $800 m||||on. ln such tondor ottor, tho 3or|os G
convort|b|o protorrod stock |nvostors agrood to purchaso outstand|ng sharos ot tho Company's cap|ta| stock, rogard|oss ot c|ass or sor|os ot cap|ta| stock, at tho samo
$10.00 por sharo purchaso pr|co pa|d to tho Company tor sharos ot 3or|os G convort|b|o protorrod stock. 1ho purchaso pr|co por sharo |n tho tondor ottor roprosontod an
oxcoss to tho ta|r va|uo ot tho Company's outstand|ng common stock and 3or|os A through 3or|os | convort|b|o protorrod stock, as dotorm|nod by tho Company's most
rocont va|uat|on ot |ts cap|ta| stock at t|mo ot tho transact|on. At tho t|mo ot tho tondor ottor, tho ta|r va|uo ot tho Company's common stock was $12.0b por sharo and
tho ta|r va|uo ot tho Company's 3or|os A through | convort|b|o protorrod stock rangod trom $12.0b to $14.b1 por sharo. 1ho tondor ottor c|osod |n 3optombor 2011, and
at tho c|oso ot tho transact|on, tho Company rocordod $84.7 m||||on as componsat|on oxponso ro|atod to tho oxcoss ot tho so|||ng pr|co por sharo ot common stock
pa|d to tho Company's omp|oyoos and consu|tants ovor tho ta|r va|uo ot tho tondorod sharo, and $8b.8 m||||on as doomod d|v|donds |n ro|at|on to oxcoss ot tho so|||ng
pr|co por sharo ot common and protorrod stock pa|d to ox|st|ng |nvostors |n oxcoss ot tho ta|r va|uo ot tho sharos tondorod. 1hoso amounts roprosont tho oxcoss ot tho
aggrogato transact|on pr|co ovor tho aggrogato ta|r va|uo ot tho sharos purchasod |n tho tondor ottor.
ln tho s|x months ondod 1uno 80, 2018, a th|rd-party |nvostor ottorod to purchaso up to $78.2 m||||on worth ot common and C|ass A jun|or protorrod stock trom
tho Company's o||g|b|o omp|oyoos at a pr|co ot $17.00 por sharo wh|ch managomont and tho 3oard ot 0|roctors dotorm|nod to roprosont tho ta|r va|uo ot tho sharos
tondorod.
1ho Company mod|t|od tho torms ot stock opt|ons tor corta|n omp|oyoos upon tho|r torm|nat|on or chango |n omp|oymont status and rocordod $1.1 m||||on,
$10.1 m||||on and $4.4 m||||on ot |ncromonta| stock-basod componsat|on oxponso |n tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, rospoct|vo|y. 0ur|ng tho s|x
months ondod 1uno 80, 2012, tho Company rocordod $4.4 m||||on ot stock-basod componsat|on oxponso as a rosu|t ot stock opt|on mod|t|cat|ons. 1ho amount ot
stock-basod componsat|on oxponso rocordod |n ro|at|on to stock opt|ons mod|t|od was not mator|a| tor tho s|x months ondod 1uno 80, 2018.
lo |ncomo tax bonot|ts havo boon rocogn|zod tor stock-basod componsat|on arrangomonts as ot 1uno 80, 2018.
1ho Company cap|ta||zod zoro, $0.7 m||||on and $1.8 m||||on ot stock-basod componsat|on oxponso assoc|atod w|th tho cost tor dovo|op|ng sottwaro tor |ntorna|
uso |n tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, rospoct|vo|y, and $0.b m||||on and $8.8 m||||on dur|ng tho s|x months ondod 1uno 80, 2012 and 2018,
rospoct|vo|y.
1ho wo|ghtod-avorago grant-dato ta|r va|uo ot stock opt|ons grantod to omp|oyoos |n tho yoars ondod 0ocombor 81, 2010, 2011 and 2012 and tho s|x months
ondod 1uno 80, 2012 and 2018 was $0.bb, $1.84, $7.42, $7.42 and $11.18 por sharo, rospoct|vo|y. 1ho ta|r va|uo ot stock opt|ons grantod to omp|oyoos was dotorm|nod
us|ng tho 3|ack-3cho|os opt|on pr|c|ng modo| w|th tho to||ow|ng wo|ghtod-avorago assumpt|ons:

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
Expoctod d|v|dond y|o|d - - - - -
l|sk-troo |ntorost rato 2.21% 2.80% 1.80% 1.80% 1.07%
Expoctod vo|at|||ty b0.08% 42.b7% b1.70% b1.70% b8.77%
Expoctod torm (|n yoars) 0.07 0.00 0.b0 0.b0 b.08

|-80
1abIo ot Contonta
0ur|ng tho yoar ondod 0ocombor 81, 2010, tho Company grantod 1.7 m||||on sharos ot stock opt|ons to non-omp|oyoos at a wo|ghtod-avorago grant-dato ta|r
va|uo ot $1.00 por sharo. lo add|t|ona| stock opt|ons woro grantod to non-omp|oyoos |n 2011 and 2012 and tho s|x months ondod 1uno 80, 2012 and 2018. ||stor|ca|
stock opt|ons grantod to non-omp|oyoos woro va|uod on tho dato ot grant us|ng tho 3|ack-3cho|os pr|c|ng modo| and aro ro-va|uod oach roport|ng por|od as thoy vost.
1ho ta|r va|uo ot stock opt|ons grantod to non-omp|oyoos was romoasurod at oach roport|ng por|od us|ng tho 3|ack-3cho|os opt|on pr|c|ng modo| w|th tho to||ow|ng rango
ot assumpt|ons:

Yoar Endod Docombor 81, 5ix Nontha Endod Juno 80,
2010 2011 2012 2012 2018
(unauditod)
Expoctod d|v|dond y|o|d - - - - -
l|sk-troo |ntorost rato 2.20%-8.88% 1.00%-8.04% 1.22%-1.88% 1.40%-1.b7% 1.82%-1.b0%
Expoctod vo|at|||ty b8.00%-0b.00% 44.04%-40.88% b4.44%-b4.80% b8.24%-b8.80% b1.02%-b2.00%
Expoctod torm (|n yoars) 8.18-10.01 7.08-0.48 7.71-8.02 8.21-8.b2 7.21-7.70
As ot 1uno 80, 2018, thoro was $24.0 m||||on ot unamort|zod stock-basod componsat|on oxponso ro|atod to unvostod stock opt|ons grantod to omp|oyoos and
non-omp|oyoo sorv|co prov|dors wh|ch |s oxpoctod to bo rocogn|zod ovor a wo|ghtod-avorago por|od ot 2.00 yoars. 1ho unamort|zod stock-basod componsat|on oxponso
ro|atod to lost-2018 l3Us ot $218.0 m||||on as ot 1uno 80, 2018 |s oxpoctod to bo rocogn|zod ovor a wo|ghtod-avorago por|od ot 8.78 yoars.
As ot 1uno 80, 2018, no stock-basod componsat|on oxponso had boon rocogn|zod tor lro-2018 l3Us bocauso a qua||ty|ng ovont tor tho awards' vost|ng was
not probab|o. ln tho quartor |n wh|ch tho Company's |n|t|a| pub||c ottor|ng |s comp|otod, tho Company w||| bog|n rocord|ng stock-basod componsat|on oxponso us|ng tho
acco|oratod attr|but|on mothod, not ot ost|matod torto|turo, basod on tho grant-dato ta|r va|uo ot tho l3Us. 1ho to||ow|ng tab|o summar|zos, on an unaud|tod pro torma
bas|s, tho stock-basod componsat|on oxponso ro|atod to tho lro-2018 l3Us that tho Company wou|d havo |ncurrod, assum|ng an |n|t|a| pub||c ottor|ng had occurrod on
1uno 80, 2018 (|n thousands):

Aa ot Juno 80, 2018 From |ncotion to Juno 80, 2018
Voatod" Pro-2018 R5ua
Outatanding
unvoatod" Pro-2018 R5ua
Outatanding
Pro Forma 5tock-Baaod
Comonaation Exonao
8,848 8b,220 $ 820,082

|or purpososot th|stab|o, vostod' l3Usroprosont tho sharosundor|y|ng lro-2018 l3Ustor wh|ch tho sorv|co cond|t|on had boon sat|st|od asot 1uno 80, 2018.
|or purpososot th|stab|o, Unvostod' l3Usroprosont tho sharosundor|y|ng lro-2018 l3Ustor wh|ch tho sorv|co cond|t|on had not boon sat|st|od asot 1uno 80, 2018 and oxc|udo ost|matod torto|turos
ot l3Us.
1ho Company ost|matos that tho roma|n|ng unrocogn|zod stock-basod componsat|on oxponso ro|at|ng to tho lro-2018 l3Us wou|d bo approx|mato|y
$284.2 m||||on, attor g|v|ng ottoct to ost|matod torto|turos and wou|d bo rocogn|zod |n tho roma|ndor ot 2018 and thoroattor |t an |n|t|a| pub||c ottor|ng had occurrod on
1uno 80, 2018.
Noto 18. |ncomo 1axoa
1ho domost|c and toro|gn compononts ot pro-tax |oss tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012 aro as to||ows (|n thousands):

Yoar Endod Docombor 81,
2010 2011 2012
0omost|c $(07,00b) $ (40,b10) $ (b8,000)
|oro|gn 04 (88,280) (2b,471)

loss botoro |ncomo taxos $(07,b41) $ (120,740) $ (70,170)


|-40
(1) (2)
(1)
(2)
1abIo ot Contonta
1ho compononts ot tho prov|s|on (bonot|t) tor |ncomo taxos tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012 aro as to||ows (|n thousands):

Yoar Endod Docombor 81,
2010 2011 2012
Curront:
|odora| $ - $ - $ -
3tato 8 b80 (800)
|oro|gn - 272 1,027

1ota| curront prov|s|on tor |ncomo taxos 8 808 1,827

0otorrod:
|odora| (188) (1,801) (008)
3tato (82) (801) (80)
|oro|gn - - (401)

1ota| dotorrod bonot|t tor |ncomo taxos (220) (2,2b2) (1,008)

lrov|s|on (bonot|t) tor |ncomo taxos $ (217) $ (1,444) $ 220






1ho to||ow|ng |s a roconc|||at|on ot tho statutory todora| |ncomo tax rato to tho Company's ottoct|vo tax rato tor tho yoars ondod 0ocombor 81, 2010, 2011 and
2012:

Yoar Endod Docombor 81,
2010 2011 2012
1ax at todora| statutory rato 84.0% 8b.0% 8b.0%
3tato taxos, not ot todora| bonot|t 0.1 (0.1) 0.b
3tock-basod componsat|on (1.0) (0.0) (1.0)
losoarch and dovo|opmont crod|ts 1.0 8.0 -
va|uat|on A||owanco (80.7) 8.8 (10.1)
londoduct|b|o oxponsos (1.4) (2.0) (8.7)
|oro|gn rato d|ttoront|a| - (22.7) (12.7)
Chango |n tax pos|t|ons (0.8) (14.0) (2.8)
Othor (0.0) - 0.4

Ettoct|vo tax rato 0.8% 1.1% (0.8)%







|-41
1abIo ot Contonta
1ho tax ottocts ot tomporary d|ttoroncos and ro|atod dotorrod tax assots and ||ab|||t|os as ot 0ocombor 81, 2011 and 2012 aro as to||ows (|n thousands):

Yoar Endod Docombor 81,
2011 2012
0otorrod tax assots:
lot oporat|ng |ossos carrytorwards $ 40,001 $ 08,481
Accrua|s and rosorvos 1,8b1 0,008
3tock-basod componsat|on oxponso 8,000 b,870
losoarch and dovo|opmont crod|ts 7,802 10,0b2
Othor 1,788 010

1ota| dotorrod tax assots 02,122 01,107
va|uat|on a||owanco (24,80b) (42,17b)

1ota| dotorrod tax assots, not ot va|uat|on a||owanco 87,227 48,002

0otorrod tax ||ab|||t|os:
||xod assots and |ntang|b|o assots (21,b42) (8b,001)
Othor (2,071) (7b4)

1ota| dotorrod tax ||ab|||t|os (24,218) (80,74b)

lot dotorrod tax assots $ 18,014 $ 12,247




3asod on tho ava||ab|o objoct|vo ov|donco, managomont bo||ovos |t |s moro-||ko|y-than-not that tho not U.3. dotorrod tax assots was not tu||y roa||zab|o as ot tho
yoar ondod 0ocombor 81, 2012. Accord|ng|y, tho Company has ostab||shod a tu|| va|uat|on a||owanco aga|nst |ts U.3. dotorrod tax assots to tho oxtont not ottsot by
||ab|||t|os trom uncorta|n tax pos|t|ons.
|or tho yoar ondod 0ocombor 81, 2012, tho Company has not prov|dod tor |ncomo taxos on $2.b m||||on ot |ts und|str|butod oarn|ngs tor corta|n toro|gn
subs|d|ar|os bocauso thoso oarn|ngs aro |ntondod to bo pormanont|y ro|nvostod |n oporat|ons outs|do tho U.3. 0otorm|n|ng tho unrocogn|zod dotorrod tax ||ab|||t|os
assoc|atod w|th thoso oarn|ngs |s not pract|cab|o.
At 0ocombor 81, 2012, tho Company had $208.8 m||||on ot todora| and $210.7 m||||on ot stato not oporat|ng |oss carrytorwards ava||ab|o to roduco tuturo taxab|o
|ncomo, wh|ch w||| bog|n to oxp|ro |n 2027 tor todora| and 2017 tor stato tax purposos, and $100.0 m||||on ot not oporat|ng |oss carrytorwards tor both todora| and stato
|ncomo tax purposos aro attr|butab|o to omp|oyoo stock opt|on doduct|ons, tho bonot|t trom wh|ch w||| bo a||ocatod to add|t|ona| pa|d-|n cap|ta| rathor than curront
|ncomo whon rocogn|zod.
1ho Company a|so has rosoarch crod|t carrytorwards ot $0.0 m||||on and $10.b m||||on tor todora| and stato |ncomo tax purposos, rospoct|vo|y. 1ho todora| crod|t
carrytorward w||| bog|n to oxp|ro |n 2027. 1ho stato tax crod|ts havo no oxp|rat|on dato. On 1anuary 2, 2018, tho Amor|can 1axpayor lo||ot Act (Act') ot 2012 was
onactod, wh|ch |nc|udos a ro|nstatomont ot tho todora| rosoarch and dovo|opmont crod|t tor tho tax yoar ondod 0ocombor 81, 2012. lursuant to tho gu|danco ot A3C
1op|c 740 locomo 7oxos, tho conso||datod t|nanc|a| statomonts rot|oct tho ottoct ot tho Act |n tho t|rst quartor ot 2018, tho roport|ng por|od ot onactmont. 1ho Act had no
mator|a| ottoct on tho conso||datod t|nanc|a| statomonts |n tho s|x months ondod 1uno 80, 2018 duo to tho Company's U.3. va|uat|on a||owanco pos|t|on.
Ut|||zat|on ot tho not oporat|ng |oss carrytorwards and crod|ts may bo subjoct to an annua| ||m|tat|on duo to tho ownorsh|p chango ||m|tat|ons prov|dod by tho
lntorna| lovonuo Codo ot 1080, as amondod (tho Codo'), and s|m||ar stato prov|s|ons. Any annua| ||m|tat|on may rosu|t |n tho oxp|rat|on ot not oporat|ng |ossos and
crod|ts botoro ut|||zat|on.

|-42
1abIo ot Contonta
As ot 0ocombor 81, 2012, tho unrocogn|zod tax bonot|t was $28.4 m||||on, a|| ot wh|ch wou|d rosu|t |n corrospond|ng adjustmonts to va|uat|on a||owanco. A
roconc|||at|on ot tho bog|nn|ng and ond|ng amount ot unrocogn|zod tax bonot|t |s as to||ows (|n thousands):

Yoar Endod Docombor 81,
2010 2011 2012
3a|anco at tho bog|nn|ng ot tho yoar $ 804 $ 1,27b $ 2b,84b
loduct|ons ro|atod to pr|or yoar tax pos|t|ons - (844) (8,012)
Add|t|ons ro|atod to curront yoar tax pos|t|ons 881 24,014 1,110

3a|anco at tho ond ot tho yoar $ 1,27b $ 2b,84b $ 28,8b2






1ota| unrocogn|zod tax bonot|ts |ncroasod by $8.8 m||||on |n tho por|od trom 0ocombor 81, 2012 to 1uno 80, 2018. 1ho tota| unrocogn|zod tax bonot|ts as ot
0ocombor 81, 2011 and 2012 |nc|udos $12.2 m||||on and $11.2 m||||on, rospoct|vo|y, ot unrocogn|zod tax bonot|t that havo boon nottod aga|nst tho ro|atod dotorrod tax
assots. 1ho roma|n|ng ba|ancos aro rocordod on tho Company's conso||datod ba|anco shoots as to||ows (|n thousands):

Yoar Endod Docombor 81,
2011 2012
1ota| unrocogn|zod tax bonot|ts ba|anco $ 2b,84b $ 28,8b2
Amounts nottod aga|nst ro|atod dotorrod tax assots (12,228) (11,100)

Unrocogn|zod tax bonot|ts rocordod on conso||datod ba|anco shoots $ 18,017 $ 12,1b0




1ho not unrocogn|zod tax bonot|t ot $18.0 m||||on and $12.2 m||||on as ot 0ocombor 81, 2011 and 2012, rospoct|vo|y, was |nc|udod |n tho othor |ong-torm
||ab|||t|os on tho Company's conso||datod ba|anco shoots. 1ho Company doos not bo||ovo that |ts unrocogn|zod tax bonot|ts w||| s|gn|t|cant|y chango w|th|n tho noxt 12
months.
1ho Company rocogn|zos |ntorost and/or pona|t|os ro|atod to |ncomo tax mattors as a componont ot |ncomo tax oxponso. As ot 0ocombor 81, 2012 thoro woro
no s|gn|t|cant accruod |ntorost and pona|t|os ro|atod to uncorta|n tax pos|t|ons.
1ho Company |s subjoct to taxat|on |n tho Un|tod 3tatos and var|ous stato and toro|gn jur|sd|ct|ons. 1ho mator|a| jur|sd|ct|ons |n wh|ch tho Company |s subjoct
to potont|a| oxam|nat|on by tax|ng author|t|os |nc|udo tho Un|tod 3tatos, Ca||torn|a and lro|and. 1ho Company bo||ovos that adoquato amounts havo boon rosorvod |n
thoso jur|sd|ct|ons. 1ho Company's 2007 to 2012 tax yoars roma|n subjoct to oxam|nat|on by tho Un|tod 3tatos and Ca||torn|a, and |ts 2011 to 2012 tax yoars roma|n
subjoct to oxam|nat|on |n lro|and. 1ho Company roma|ns subjoct to poss|b|o oxam|nat|on |n var|ous othor jur|sd|ct|ons that aro not oxpoctod to rosu|t |n mator|a| tax
adjustmonts.
Noto 14. RoIatod Party 1ranaactiona
Ono ot tho Company's d|roctors has a d|roct ownorsh|p |ntorost |n a vondor that prov|dos markot|ng and commun|cat|on sorv|cos to tho Company. |or tho yoars
ondod 0ocombor 81, 2010, 2011 and 2012, tho Company |ncurrod zoro, $0.8 m||||on and $1.0 m||||on, rospoct|vo|y, ot oxponso tor sorv|cos rondorod, and dur|ng tho s|x
months ondod 1uno 80, 2012, tho Company |ncurrod $0.0 m||||on. lo oxponso was |ncurrod |n ro|at|on to th|s arrangomont dur|ng tho s|x months ondod 1uno 80, 2018.
1horo was no outstand|ng payab|o ba|anco assoc|atod w|th tho vondor as ot 1uno 80, 2018.
Noto 15. EmIoyoo Bonotit PIan
1ho Company adoptod a 401(k) l|an that qua||t|os as a dotorrod componsat|on arrangomont undor 3oct|on 401 ot tho Codo. Undor tho 401(k) l|an, part|c|pat|ng
omp|oyoos may dotor a port|on ot

|-48
1abIo ot Contonta
tho|r protax oarn|ngs not to oxcood tho max|mum amount a||owab|o. 1ho Company has not mado any match|ng contr|but|ons to dato.
Noto 10. Commitmonta and Contingoncioa
OperatIng and CapItal Leases
1ho Company has ontorod |nto var|ous non-canco|ab|o oporat|ng |oaso agroomonts tor corta|n ott|cos and data contor tac|||t|os |n tho U.3. w|th contractua| |oaso
por|ods oxp|r|ng botwoon 2012 and 2021. ln part|cu|ar, |n 2011, tho Company ontorod |nto an ott|co spaco |oaso tor |ts hoadquartors |n 3an |ranc|sco w|th a 0-yoar torm,
ronowab|o tor an add|t|ona| por|od ot b yoars. ln 2012, tho Company ontorod |nto a |oaso amondmont tor add|t|ona| ott|co spaco |n |ts hoadquartors w|th an 8-yoar torm.
1ota| |oaso comm|tmonts undor tho |oaso, as amondod, amount to $07.7 m||||on. Undor tho torms ot tho |oaso, as amondod, tho Company |s rospons|b|o tor corta|n
taxos, |nsuranco, ma|ntonanco and managomont oxponsos.
A summary ot gross and not |oaso comm|tmonts as ot 0ocombor 81, 2012 |s as to||ows (unaud|tod, |n thousands):

Oorating Loaaoa CaitaI Loaaoa
Yoars ond|ng 0ocombor 81,
2018 $ 20,000 $ b2,801
2014 20,201 42,480
201b 20,208 28,4b4
2010 28,070 2,012
2017 22,021 -
0uo attor b yoars 24,b70 -

$ 100,001 121,800



loss: Amounts roprosont|ng |ntorost 0,708

1ota| cap|ta| |oaso ob||gat|on 114,b08
loss: 3hort-torm port|on 48,880

long-torm port|on $ 0b,782


A summary ot gross and not |oaso comm|tmonts as ot 1uno 80, 2018 |s as to||ows (unaud|tod, |n thousands):

Oorating Loaaoa CaitaI Loaaoa
loma|n|ng s|x months ond|ng 0ocombor 81, 2018 $ 18,280 $ 84,740
Yoars ond|ng 0ocombor 81,
2014 41,080 02,102
201b 48,002 48,170
2010 40,088 0,b04
2017 8b,b01 010
0uo attor b yoars 42,800 -

$ 221,824 1b0,bb8



loss: Amounts roprosont|ng |ntorost 8,880

1ota| cap|ta| |oaso ob||gat|on 141,000
loss: 3hort-torm port|on 01,b88

long-torm port|on $ 80,181



|-44
20,000
20,201
,
1abIo ot Contonta
lont oxponso undor tho Company's oporat|ng |oasos, |nc|ud|ng co-|ocat|on arrangomonts tor tho Company's data contors, was $2.2 m||||on, $8.0 m||||on and
$10.4 m||||on tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012, rospoct|vo|y, and $8.0 m||||on and $18.2 m||||on tor tho s|x months ondod 1uno 80, 2012 and 2018,
rospoct|vo|y. 1ho Company a|so had $18.b m||||on ot non-canco|ab|o contractua| comm|tmonts as ot 0ocombor 81, 2012, pr|mar||y ro|atod to our bandw|dth and othor
sorv|cos arrangomonts. 1hoso comm|tmonts aro gonora||y duo w|th|n ono to throo yoars.
Legal ProceedIngs
1ho Company |s curront|y |nvo|vod |n, and may |n tho tuturo bo |nvo|vod |n, |oga| procood|ngs, c|a|ms and govornmonta| |nvost|gat|ons |n tho norma| courso ot
bus|noss. loga| toos and othor costs assoc|atod w|th such act|ons aro oxponsod as |ncurrod. 1ho Company assossos, |n conjunct|on w|th |ts |oga| counso|, tho nood
to rocord a ||ab|||ty tor ||t|gat|on and cont|ngonc|os. l|t|gat|on accrua|s aro rocordod whon and |t |t |s dotorm|nod that a |oss ro|atod mattor |s both probab|o and
roasonab|y ost|mab|o. Vator|a| |oss cont|ngonc|os that aro roasonab|y poss|b|o ot occurronco, |t any, aro subjoct to d|sc|osuros. As ot 0ocombor 81, 2012 and 1uno 80,
2018, thoro was no ||t|gat|on or cont|ngoncy w|th at |oast a roasonab|o poss|b|||ty ot a mator|a| |oss. lo |ossos havo boon rocordod dur|ng yoars ondod 0ocombor 81,
2010, 2011 and 2012 and tho s|x months ondod 1uno 80, 2018 w|th rospoct to ||t|gat|on or |oss cont|ngonc|os.
lndemnI|IcatIon
ln tho ord|nary courso ot bus|noss, tho Company otton |nc|udos standard |ndomn|t|cat|on prov|s|ons |n |ts arrangomonts w|th |ts customors, partnors, supp||ors
and vondors. lursuant to thoso prov|s|ons, tho Company may bo ob||gatod to |ndomn|ty such part|os tor |ossos or c|a|ms suttorod or |ncurrod |n connoct|on w|th |ts
sorv|co, broach ot roprosontat|ons or covonants, |nto||octua| proporty |ntr|ngomont or othor c|a|ms mado aga|nst such part|os. 1hoso prov|s|ons may ||m|t tho t|mo w|th|n
wh|ch an |ndomn|t|cat|on c|a|m can bo mado. lt |s not poss|b|o to dotorm|no tho max|mum potont|a| amount undor thoso |ndomn|t|cat|on ob||gat|ons duo to tho ||m|tod
h|story ot pr|or |ndomn|t|cat|on c|a|ms and tho un|quo tacts and c|rcumstancos |nvo|vod |n oach part|cu|ar agroomont. 1ho Company has novor |ncurrod s|gn|t|cant
oxponso dotond|ng |ts ||consoos aga|nst th|rd party c|a|ms, nor has |t ovor |ncurrod s|gn|t|cant oxponso undor |ts standard sorv|co warrant|os or arrangomonts w|th |ts
customors, partnors, supp||ors and vondors. Accord|ng|y, tho Company had no ||ab|||t|os rocordod tor thoso prov|s|ons as ot 0ocombor 81, 2011 and 2012, and 1uno 80,
2018.
Noto 17. 5ogmont |ntormation and Oorationa by Coograhic Aroa
1ho Company has a s|ng|o oporat|ng sogmont and roport|ng un|t structuro. 1ho Company's ch|ot oporat|ng doc|s|on-makor |s tho ch|ot oxocut|vo ott|cor who
rov|ows t|nanc|a| |ntormat|on prosontod on a conso||datod bas|s, accompan|od by d|saggrogatod |ntormat|on about rovonuo by goograph|c rog|on tor purposos ot
a||ocat|ng rosourcos and ova|uat|ng t|nanc|a| portormanco.

|-4b
1abIo ot Contonta
Revenue
lovonuo by goography |s basod on tho b||||ng addrossos ot tho customors. 1ho to||ow|ng tab|o sots torth rovonuo by goograph|c aroa (|n thousands):


Yoar Endod
Docombor 81,
5ix Nontha Endod
Juno 80,
2010 2011 2012 2012 2018
(unauditod)
lovonuo:
Un|tod 3tatos $ 20,840 $ 102,22b $ 208,017 $ 100,087 $ 100,700
lntornat|ona| 1,082 4,088 b8,010 1b,072 02,880

1ota| lovonuo $ 28,278 $ 100,818 $ 810,088 $ 122,8b0 $ 2b8,08b










lo |nd|v|dua| country trom tho |ntornat|ona| markots contr|butod |n oxcoss ot 10% ot tho tota| rovonuo tor tho yoars ondod 0ocombor 81, 2010, 2011 and 2012
and tho s|x months ondod 1uno 80, 2012 and 2018.
Long-LIved Assets
1ho to||ow|ng tab|o sots torth |ong-||vod assots by goograph|c aroa (|n thousands):

Aa ot Docombor 81, Juno 80,
2011 2012 2018
(unauditod)
long-||vod assots:
Un|tod 3tatos $01,078 $ 188,810 $ 288,b28
lntornat|ona| b 2,2bb 4,080

1ota| |ong-||vod assots $01,088 $ 18b,b74 $ 242,bb8






Noto 18. 5ubaoquont Evonta
1ho Company has ova|uatod subsoquont ovonts through 1u|y 12, 2018, tho dato tho conso||datod t|nanc|a| statomonts woro ava||ab|o tor |ssuanco.
|rom 1anuary 1, 2018 through 1u|y 12, 2018, tho Company grantod 10.0 m||||on l3Us to |ts omp|oyoos, and tho unrocogn|zod stock-basod componsat|on
oxponso ro|at|ng to thoso l3Us as ot tho|r grant dato was $274.4 m||||on, attor g|v|ng ottoct to ost|matod torto|turos.
Noto 10. 5ubaoquont Evonta (unauditod)
1ho Company has ova|uatod subsoquont ovonts through August 20, 2018, tho dato tho unaud|tod |ntor|m conso||datod t|nanc|a| statomonts woro ava||ab|o tor
|ssuanco.
3ubsoquont to 1u|y 12, 2018, tho Company grantod 27.0 m||||on l3Us to |ts omp|oyoos, and tho unrocogn|zod stock-basod componsat|on oxponso ro|at|ng to
thoso l3Us as ot tho|r grant dato was $4b2.0 m||||on, attor g|v|ng ottoct to ost|matod torto|turos.
ln August 2018, tho Cort|t|cato ot lncorporat|on was amondod to |ncroaso tho numbor ot sharos ot common stock author|zod to bo |ssuod by 100.0 m||||on
sharos to 700.0 m||||on sharos.
ln August 2018, tho 2007 Equ|ty lncont|vo l|an was amondod to |ncroaso tho numbor ot sharos ot common stock rosorvod tor |ssuanco by 20.0 m||||on sharos
to 170.4 m||||on sharos.

|-40
100,700
1abIo ot Contonta
On 3optombor 0, 2018, tho Company ontorod |nto a dot|n|t|vo agroomont to acqu|ro pr|vato|y ho|d Volub lnc., a mob||o-tocusod advort|s|ng oxchango. Upon
c|os|ng ot tho proposod transact|on a|| ot tho |ssuod and outstand|ng sharos ot cap|ta| stock ot Volub, and a|| oqu|ty awards to purchaso sharos ot Volub common
stock ho|d by |nd|v|dua|s who w||| cont|nuo to prov|do sorv|co to tho Company, w||| bo convortod |nto tho r|ght to roco|vo an aggrogato ot 14.8 m||||on sharos ot tho
Company's common stock. 1ho dot|n|t|vo agroomont conta|ns corta|n torm|nat|on r|ghts tor both Volub and tho Company, |nc|ud|ng tor tho ta||uro to consummato tho
transact|on by 0ocombor 20, 2018.

|-47
1abIo ot Contonta
5CEEDuLE ||
VALuA1|ON AND OuAL|FY|NC ACCOuN15
FOR 1EE YEAR5 ENDED DECENBER 81, 2010, 2011 AND 2012


BaIanco
at
Boginning
ot
Yoar
Changoa
to
Exonaoa
Chargod/
Croditod
to Othor
Accounta
BaIanco at
End ot Yoar
(|n thouaanda)
AIIowanco tor Dotorrod 1ax Aaaota:
Yoar ondod 0ocombor 81, 2010 $12,820 $28,02b $ - $ 80,2b4
Yoar ondod 0ocombor 81, 2011 $80,2b4 $(11,878) $ b10 $ 24,80b
Yoar ondod 0ocombor 81, 2012 $24,80b $1b,2b0 $ 2,080 $ 42,17b


BaIanco
at
Boginning
ot
Yoar
Additiona
(Roductiona)
Writo-ott/
Ad[ uatmonta
BaIanco at
End ot Yoar
(|n thouaanda)
AIIowanco tor DoubttuI Accounta:
Yoar ondod 0ocombor 81, 2010 $ - $ - $ - $ -
Yoar ondod 0ocombor 81, 2011 $ - $ 1,828 $ - $ 1,828
Yoar ondod 0ocombor 81, 2012 $ 1,828 $ 1,844 $ (2,802) $ 1,280

|-48
1abIo ot Contonta
1abIo ot Contonta





1abIo ot Contonta
PAR1 ||
|NFORNA1|ON NO1 REOu|RED |N PRO5PEC1u5
|1EN 18. O1EER EXPEN5E5 OF |55uANCE AND D|51R|Bu1|ON.
1ho to||ow|ng tab|o sots torth a|| oxponsos to bo pa|d by us, othor than undorwr|t|ng d|scounts and comm|ss|ons, upon comp|ot|on ot th|s ottor|ng. A|| amounts
shown aro ost|matos oxcopt tor tho 3EC rog|strat|on too and tho |lllA t|||ng too.

3EC rog|strat|on too $ 128,800
|lllA t|||ng too 1b0,b00
Exchango ||st|ng too
lr|nt|ng and ongrav|ng oxponsos
loga| toos and oxponsos
Account|ng toos and oxponsos
3|uo sky toos and oxponsos
1ranstor agont and rog|strar toos
V|sco||anoous oxponsos

1ota| $



1o bo t||od by amondmont.
|1EN 14. |NDENN|F|CA1|ON OF D|REC1OR5 AND OFF|CER5.
3oct|on 14b ot tho 0o|awaro Gonora| Corporat|on law author|zos a corporat|on's board ot d|roctors to grant, and author|zos a court to award, |ndomn|ty to
ott|cors, d|roctors and othor corporato agonts.
Wo oxpoct to adopt an amondod and rostatod cort|t|cato ot |ncorporat|on, wh|ch w||| bocomo ottoct|vo |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, and
wh|ch w||| conta|n prov|s|ons that ||m|t tho ||ab|||ty ot our d|roctors tor monotary damagos to tho tu||ost oxtont porm|ttod by 0o|awaro |aw. Consoquont|y, our d|roctors w|||
not bo porsona||y ||ab|o to us or our stockho|dors tor monotary damagos tor any broach ot t|duc|ary dut|os as d|roctors, oxcopt ||ab|||ty tor tho to||ow|ng:



any broach ot tho|r duty ot |oya|ty to our company or our stockho|dors,



any act or om|ss|on not |n good ta|th or that |nvo|vos |ntont|ona| m|sconduct or a know|ng v|o|at|on ot |aw,



un|awtu| paymonts ot d|v|donds or un|awtu| stock ropurchasos or rodompt|ons as prov|dod |n 3oct|on 174 ot tho 0o|awaro Gonora| Corporat|on law, or



any transact|on trom wh|ch thoy dor|vod an |mpropor porsona| bonot|t.
Any amondmont to, or ropoa| ot, thoso prov|s|ons w||| not o||m|nato or roduco tho ottoct ot thoso prov|s|ons |n rospoct ot any act, om|ss|on or c|a|m that
occurrod or aroso pr|or to that amondmont or ropoa|. lt tho 0o|awaro Gonora| Corporat|on law |s amondod to prov|do tor turthor ||m|tat|ons on tho porsona| ||ab|||ty ot
d|roctors ot corporat|ons, thon tho porsona| ||ab|||ty ot our d|roctors w||| bo turthor ||m|tod to tho groatost oxtont porm|ttod by tho 0o|awaro Gonora| Corporat|on law.
ln add|t|on, wo oxpoct to adopt amondod and rostatod by|aws, wh|ch w||| bocomo ottoct|vo |mmod|ato|y pr|or to tho comp|ot|on ot th|s ottor|ng, and wh|ch w|||
prov|do that wo w||| |ndomn|ty, to tho tu||ost oxtont porm|ttod by |aw, any porson who |s or was a party or |s throatonod to bo mado a party to any act|on, su|t or
procood|ng by roason ot tho tact that ho or sho |s or was ono ot our d|roctors or

ll-1
1abIo ot Contonta
ott|cors or |s or was sorv|ng at our roquost as a d|roctor or ott|cor ot anothor corporat|on, partnorsh|p, jo|nt vonturo, trust or othor ontorpr|so. Our amondod and rostatod
by|aws aro oxpoctod to prov|do that wo may |ndomn|ty to tho tu||ost oxtont porm|ttod by |aw any porson who |s or was a party or |s throatonod to bo mado a party to any
act|on, su|t or procood|ng by roason ot tho tact that ho or sho |s or was ono ot our omp|oyoos or agonts or |s or was sorv|ng at our roquost as an omp|oyoo or agont ot
anothor corporat|on, partnorsh|p, jo|nt vonturo, trust or othor ontorpr|so. Our amondod and rostatod by|aws w||| a|so prov|do that wo must advanco oxponsos |ncurrod by
or on boha|t ot a d|roctor or ott|cor |n advanco ot tho t|na| d|spos|t|on ot any act|on or procood|ng, subjoct to vory ||m|tod oxcopt|ons.
|urthor, pr|or to tho comp|ot|on ot th|s ottor|ng, wo oxpoct to ontor |nto |ndomn|t|cat|on agroomonts w|th oach ot our d|roctors and oxocut|vo ott|cors that may bo
broador than tho spoc|t|c |ndomn|t|cat|on prov|s|ons conta|nod |n tho 0o|awaro Gonora| Corporat|on law. 1hoso |ndomn|t|cat|on agroomonts w||| roqu|ro us, among othor
th|ngs, to |ndomn|ty our d|roctors and oxocut|vo ott|cors aga|nst ||ab|||t|os that may ar|so by roason ot tho|r status or sorv|co. 1hoso |ndomn|t|cat|on agroomonts w||| a|so
roqu|ro us to advanco a|| oxponsos |ncurrod by tho d|roctors and oxocut|vo ott|cors |n |nvost|gat|ng or dotond|ng any such act|on, su|t or procood|ng. Wo bo||ovo that
thoso agroomonts aro nocossary to attract and rota|n qua||t|od |nd|v|dua|s to sorvo as d|roctors and oxocut|vo ott|cors.
1ho ||m|tat|on ot ||ab|||ty and |ndomn|t|cat|on prov|s|ons that aro oxpoctod to bo |nc|udod |n our amondod and rostatod cort|t|cato ot |ncorporat|on, amondod and
rostatod by|aws and tho |ndomn|t|cat|on agroomonts that wo ontor |nto w|th our d|roctors and oxocut|vo ott|cors may d|scourago stockho|dors trom br|ng|ng a |awsu|t
aga|nst our d|roctors and oxocut|vo ott|cors tor broach ot tho|r t|duc|ary dut|os. 1hoy may a|so roduco tho ||ko||hood ot dor|vat|vo ||t|gat|on aga|nst our d|roctors and
oxocut|vo ott|cors, ovon though an act|on, |t succosstu|, m|ght bonot|t us and othor stockho|dors. |urthor, a stockho|dor's |nvostmont may bo advorso|y attoctod to tho
oxtont that wo pay tho costs ot sott|omont and damago awards aga|nst d|roctors and oxocut|vo ott|cors as roqu|rod by thoso |ndomn|t|cat|on prov|s|ons. At prosont, wo
aro not awaro ot any pond|ng ||t|gat|on or procood|ng |nvo|v|ng any porson who |s or was ono ot our d|roctors, ott|cors, omp|oyoos or othor agonts or |s or was sorv|ng at
our roquost as a d|roctor, ott|cor, omp|oyoo or agont ot anothor corporat|on, partnorsh|p, jo|nt vonturo, trust or othor ontorpr|so, tor wh|ch |ndomn|t|cat|on |s sought, and
wo aro not awaro ot any throatonod ||t|gat|on that may rosu|t |n c|a|ms tor |ndomn|t|cat|on.
Wo havo obta|nod |nsuranco po||c|os undor wh|ch, subjoct to tho ||m|tat|ons ot tho po||c|os, covorago |s prov|dod to our d|roctors and oxocut|vo ott|cors aga|nst
|oss ar|s|ng trom c|a|ms mado by roason ot broach ot t|duc|ary duty or othor wrongtu| acts as a d|roctor or oxocut|vo ott|cor, |nc|ud|ng c|a|ms ro|at|ng to pub||c socur|t|os
mattors, and to us w|th rospoct to paymonts that may bo mado by us to thoso d|roctors and oxocut|vo ott|cors pursuant to our |ndomn|t|cat|on ob||gat|ons or othorw|so
as a mattor ot |aw.
1ho undorwr|t|ng agroomont to bo t||od as Exh|b|t 1.1 to th|s rog|strat|on statomont prov|dos tor |ndomn|t|cat|on by tho undorwr|tors ot us and our ott|cors and
d|roctors tor corta|n ||ab|||t|os ar|s|ng undor tho 3ocur|t|os Act and othorw|so.
|1EN 15. RECEN1 5ALE5 OF uNREC|51ERED 5ECuR|1|E5.
3|nco 1u|y 1, 2010, wo |ssuod tho to||ow|ng unrog|storod socur|t|os (attor g|v|ng ottoct to a two-tor-ono stock sp||t ottoctod |n Vay 2011):
Pre|erred 8tock lssuances
|rom 0ocombor 2010 through 1anuary 2011, wo so|d an aggrogato ot 20,107,800 sharos ot our 3or|os | convort|b|o protorrod stock to n|no accrod|tod |nvostors
at a purchaso pr|co ot approx|mato|y $7.08 por sharo, tor an aggrogato purchaso pr|co ot $100,000,078.

ll-2
1abIo ot Contonta
0ur|ng 1u|y 2011, wo so|d an aggrogato ot 10,007,1b0 sharos ot our 3or|os G-1 convort|b|o protorrod stock to two accrod|tod |nvostors at a purchaso pr|co ot
approx|mato|y $10.00 por sharo, tor an aggrogato purchaso pr|co ot $102,400,087.
0ur|ng 1u|y 2011, wo so|d an aggrogato ot 14,7b7,880 sharos ot our 3or|os G-2 convort|b|o protorrod stock to 21 accrod|tod |nvostors at a purchaso pr|co ot
approx|mato|y $10.00 por sharo, tor an aggrogato purchaso pr|co ot $287,400,078.
OptIon and R8U lssuances
3|nco 1u|y 1, 2010, wo grantod to our d|roctors, ott|cors, omp|oyoos, consu|tants and othor sorv|co prov|dors opt|ons to purchaso an aggrogato ot 82,0b1,200
sharos ot our common stock undor our oqu|ty componsat|on p|ans at oxorc|so pr|cos rang|ng trom approx|mato|y $0.0b to $14.42 por sharo.
3|nco 1u|y 1, 2010, wo assumod opt|ons to purchaso an aggrogato ot 822,000 sharos ot our common stock undor tho oqu|ty componsat|on p|ans wo assumod
|n connoct|on w|th corta|n ot our acqu|s|t|ons at oxorc|so pr|cos rang|ng trom approx|mato|y $0.24 to $8.02 por sharo.
3|nco 1u|y 1, 2010, wo grantod to our d|roctors, ott|cors, omp|oyoos, consu|tants and othor sorv|co prov|dors an aggrogato ot 02,720,087 l3Us to bo sott|od |n
sharos ot our common stock undor our oqu|ty componsat|on p|ans.
8hares lssued In ConnectIon wIth AcquIsItIons
3|nco 1u|y 1, 2010, wo |ssuod an aggrogato ot 17,b41,000 sharos ot our common stock, 2,088,0b0 sharos ot our 3or|os C convort|b|o protorrod stock and
8,b00,048 sharos ot our C|ass A 1un|or protorrod stock |n connoct|on w|th our acqu|s|t|ons ot corta|n compan|os or tho|r assots and as cons|dorat|on to |nd|v|dua|s and
ont|t|os who woro tormor sorv|co prov|dors and/or stockho|dors ot such compan|os.
lono ot tho torogo|ng transact|ons |nvo|vod any undorwr|tors, undorwr|t|ng d|scounts or comm|ss|ons, or any pub||c ottor|ng. Wo bo||ovo tho ottors, sa|os and
|ssuancos ot tho abovo socur|t|os woro oxompt trom rog|strat|on undor tho 3ocur|t|os Act by v|rtuo ot 3oct|on 4(2) ot tho 3ocur|t|os Act bocauso tho |ssuanco ot
socur|t|os to tho roc|p|onts d|d not |nvo|vo a pub||c ottor|ng, or |n ro||anco on lu|o 701 bocauso tho transact|ons woro pursuant to componsatory bonot|t p|ans or
contracts ro|at|ng to componsat|on as prov|dod undor such ru|o. 1ho roc|p|onts ot tho socur|t|os |n oach ot thoso transact|ons roprosontod tho|r |ntont|ons to acqu|ro tho
socur|t|os tor |nvostmont on|y and not w|th a v|ow to or tor sa|o |n connoct|on w|th any d|str|but|on thoroot, and appropr|ato |ogonds woro p|acod upon tho stock
cort|t|catos |ssuod |n thoso transact|ons. A|| roc|p|onts had adoquato accoss, through tho|r ro|at|onsh|ps w|th us, to |ntormat|on about us. 1ho sa|os ot thoso socur|t|os
woro mado w|thout any gonora| so||c|tat|on or advort|s|ng.

ll-8
1abIo ot Contonta
|1EN 10. EXE|B|15 AND F|NANC|AL 51A1ENEN1 5CEEDuLE5.


(a) Exblblts.

Exhibit Numbor Doacrition
1.1 |orm ot Undorwr|t|ng Agroomont.
2.1

Agroomont and l|an ot loorgan|zat|on among tho log|strant, laptor Vorgor lnc., Volub lnc. and |ort|s Adv|sors llC, as 3tockho|dors'
Agont, datod as ot 3optombor 0, 2018.
8.1 lostatod Cort|t|cato ot lncorporat|on ot tho log|strant, as curront|y |n ottoct.
8.2 |orm ot Amondod and lostatod Cort|t|cato ot lncorporat|on ot tho log|strant, to bo |n ottoct upon tho comp|ot|on ot th|s ottor|ng.
8.8 3y|aws ot tho log|strant, as curront|y |n ottoct.
8.4 |orm ot Amondod and lostatod 3y|aws ot tho log|strant, to bo |n ottoct upon tho comp|ot|on ot th|s ottor|ng.
4.1 |orm ot common stock cort|t|cato ot tho log|strant.
4.2

Amondod and lostatod lnvostors' l|ghts Agroomont among tho log|strant and corta|n ho|dors ot |ts cap|ta| stock, datod as ot lovombor
14, 2011.
4.8 Warrant to purchaso sharos ot 3or|os C convort|b|o protorrod stock |ssuod to 3|||con va||oy 3ank, datod as ot 0ocombor 10, 2008.
4.4 |o|dor vot|ng Agroomont botwoon tho log|strant and Comp||anco Vattor 3orv|cos, llC, datod as ot 1u|y 28, 2011.
4.b |o|dor vot|ng Agroomont among tho log|strant, l1lC ll, llC and 1.l. Vorgan 0|g|ta| Growth |und l.l., datod as ot 1u|y 28, 2011.
4.0

3|do lottor Agroomont among tho log|strant, l1lC, llC, l1lC ll, llC, Comp||anco Vattor 3orv|cos, llC and 1.l. Vorgan 0|g|ta| Growth
|und l.l., datod as ot 1u|y 28, 2011.
b.1 Op|n|on ot W||son 3ons|n| Goodr|ch 8 losat|, l.C.
10.1+ |orm ot lndomn|t|cat|on Agroomont botwoon tho log|strant and oach ot |ts d|roctors and oxocut|vo ott|cors.
10.2+ 1w|ttor, lnc. 2018 Equ|ty lncont|vo l|an and ro|atod torm agroomonts.
10.8+ 1w|ttor, lnc. 2018 Emp|oyoo 3tock lurchaso l|an and ro|atod torm agroomonts.
10.4+ 1w|ttor, lnc. 2007 Equ|ty lncont|vo l|an and ro|atod torm agroomonts.
10.b+ 1w|ttor, lnc. 2011 Acqu|s|t|on Opt|on l|an.
10.0+ 3|uot|n labs, lnc. 2008 3tock l|an.
10.7+ Crash|yt|cs, lnc. 2011 3tock l|an.
10.8+ V|xor labs, lnc. 2008 3tock l|an.
10.0+ 1w|ttor, lnc. Exocut|vo lncont|vo Componsat|on l|an.
10.10+ 1w|ttor, lnc. Chango ot Contro| 3ovoranco lo||cy.
10.11+ Ottor lottor botwoon tho log|strant and l|chard Costo|o.
10.12+ Ottor lottor botwoon tho log|strant and A|| lowghan|.
10.18+ Ottor lottor botwoon tho log|strant and V|ko Gupta.
10.14+ Ottor lottor botwoon tho log|strant and Adam 3a|n.

ll-4
1abIo ot Contonta
Exhibit Numbor Doacrition
10.1b+ Ottor lottor botwoon tho log|strant and Chr|stophor |ry.
10.10+ Ottor lottor botwoon tho log|strant and v|jaya Gaddo.
10.17+ Ottor lottor botwoon tho log|strant and lotor Chorn|n, datod as ot Octobor 10, 2012.
10.18

Ott|co loaso botwoon tho log|strant and 3r| l|no Varkot 3quaro llC, datod as ot Apr|| 20, 2011, as amondod on Vay 10, 2011,
3optombor 80, 2011 and 1uno 1, 2012.
10.10 |orm ot lnnovator's latont Agroomont.
21.1 l|st ot subs|d|ar|os ot tho log|strant.
28.1 Consont ot lr|cowatorhousoCoopors lll, lndopondont log|storod lub||c Account|ng ||rm.
28.2 Consont ot W||son 3ons|n| Goodr|ch 8 losat|, l.C. (|nc|udod |n Exh|b|t b.1).
24.1 lowor ot Attornoy (soo pago ll-7 to th|s log|strat|on 3tatomont on |orm 3-1).
00.1 Consont ot 1ho l|o|son Company.

1o bo t||od by amondmont.
+ lnd|catosmanagomont contract or componsatory p|an.


(b) lloooclo| 5totomoot 5cbooo|os.
A|| t|nanc|a| statomont schodu|os aro om|ttod bocauso tho |ntormat|on ca||od tor |s not roqu|rod or |s shown o|thor |n tho conso||datod t|nanc|a| statomonts or |n
tho notos thoroto.
|1EN 17. uNDER1AK|NC5.
1ho undors|gnod log|strant horoby undortakos to prov|do to tho undorwr|tors at tho c|os|ng spoc|t|od |n tho undorwr|t|ng agroomont cort|t|catos |n such
donom|nat|ons and rog|storod |n such namos as roqu|rod by tho undorwr|tors to porm|t prompt do||vory to oach purchasor.
lnsotar as |ndomn|t|cat|on tor ||ab|||t|os ar|s|ng undor tho 3ocur|t|os Act ot 1088 may bo porm|ttod to d|roctors, ott|cors and contro|||ng porsons ot tho rog|strant
pursuant to tho torogo|ng prov|s|ons, or othorw|so, tho rog|strant has boon adv|sod that |n tho op|n|on ot tho 3ocur|t|os and Exchango Comm|ss|on such |ndomn|t|cat|on
|s aga|nst pub||c po||cy as oxprossod |n tho Act and |s, thorotoro, unontorcoab|o. ln tho ovont that a c|a|m tor |ndomn|t|cat|on aga|nst such ||ab|||t|os (othor than tho
paymont by tho rog|strant ot oxponsos |ncurrod or pa|d by a d|roctor, ott|cor or contro|||ng porson ot tho rog|strant |n tho succosstu| dotonso ot any act|on, su|t or
procood|ng) |s assortod by such d|roctor, ott|cor or contro|||ng porson |n connoct|on w|th tho socur|t|os bo|ng rog|storod, tho rog|strant w|||, un|oss |n tho op|n|on ot |ts
counso| tho mattor has boon sott|od by contro|||ng procodont, subm|t to a court ot appropr|ato jur|sd|ct|on tho quost|on whothor such |ndomn|t|cat|on by |t |s aga|nst
pub||c po||cy as oxprossod |n tho Act and w||| bo govornod by tho t|na| adjud|cat|on ot such |ssuo.
1ho undors|gnod log|strant horoby undortakos that:


(1) |or purposos ot dotorm|n|ng any ||ab|||ty undor tho 3ocur|t|os Act ot 1088, tho |ntormat|on om|ttod trom tho torm ot prospoctus t||od as part ot th|s
rog|strat|on statomont |n ro||anco upon lu|o 480A and conta|nod |n a torm ot prospoctus t||od by tho log|strant pursuant to lu|o 424(b)(1) or (4) or
407(h) undor tho 3ocur|t|os Act sha|| bo doomod to bo part ot th|s rog|strat|on statomont as ot tho t|mo |t was doc|arod ottoct|vo.

ll-b
1abIo ot Contonta

(2) |or tho purposo ot dotorm|n|ng any ||ab|||ty undor tho 3ocur|t|os Act ot 1088, oach post-ottoct|vo amondmont that conta|ns a torm ot prospoctus sha|| bo
doomod to bo a now rog|strat|on statomont ro|at|ng to tho socur|t|os ottorod thoro|n, and tho ottor|ng ot such socur|t|os at that t|mo sha|| bo doomod to
bo tho |n|t|a| bona t|do ottor|ng thoroot.

ll-0
1abIo ot Contonta
5|CNA1uRE5
lursuant to tho roqu|romonts ot tho 3ocur|t|os Act ot 1088, tho log|strant has du|y causod th|s rog|strat|on statomont on |orm 3-1 to bo s|gnod on |ts boha|t
by tho undors|gnod, thorounto du|y author|zod, |n 3an |ranc|sco, Ca||torn|a, on tho 8rd day ot Octobor, 2018.

1W|11ER, |NC.
3y:
/s/ l|chard Costo|o
l|chard Costo|o
Ch|ot Exocut|vo Ott|cor
POWER OF A11ORNEY
KNO ALL PER5ON5 BY 7lE5E PRE5EN75, that oach porson whoso s|gnaturo appoars bo|ow horoby const|tutos and appo|nts l|chard Costo|o and V|ko
Gupta, and oach ot thom, as h|s truo and |awtu| attornoy-|n-tact and agont w|th tu|| powor ot subst|tut|on, tor h|m |n any and a|| capac|t|os, to s|gn any and a||
amondmonts to th|s rog|strat|on statomont (|nc|ud|ng post-ottoct|vo amondmonts or any abbrov|atod rog|strat|on statomont and any amondmonts thoroto t||od pursuant
to lu|o 402(b) undor tho 3ocur|t|os Act ot 1088 |ncroas|ng tho numbor ot socur|t|os tor wh|ch rog|strat|on |s sought), and to t||o tho samo, w|th a|| oxh|b|ts thoroto and
othor documonts |n connoct|on thorow|th, w|th tho 3ocur|t|os and Exchango Comm|ss|on, grant|ng unto sa|d attornoy-|n-tact, proxy and agont tu|| powor and author|ty to
do and portorm oach and ovory act and th|ng roqu|s|to and nocossary to bo dono |n connoct|on thorow|th, as tu||y tor a|| |ntonts and purposos as ho m|ght or cou|d do |n
porson, horoby rat|ty|ng and cont|rm|ng a|| that sa|d attornoy-|n-tact, proxy and agont, or h|s subst|tuto, may |awtu||y do or causo to bo dono by v|rtuo horoot.
lursuant to tho roqu|romonts ot tho 3ocur|t|os Act ot 1088, th|s rog|strat|on statomont on |orm 3-1 has boon s|gnod by tho to||ow|ng porsons |n tho capac|t|os
and on tho datos |nd|catod.

5ignaturo 1itIo Dato
/s/ l|chard Costo|o
l|chard Costo|o
Ch|ot Exocut|vo Ott|cor and 0|roctor
(Prloclpo| Exocotlvo Olcor)

Octobor 8, 2018
/s/ V|ko Gupta
V|ko Gupta
Ch|ot ||nanc|a| Ott|cor
(Prloclpo| lloooclo| Olcor)

Octobor 8, 2018
/s/ luca 3aratta
luca 3aratta
v|co lros|dont, ||nanco
(Prloclpo| Accoootlog Olcor)

Octobor 8, 2018
/s/ 1ack 0orsoy
1ack 0orsoy
Cha|rman and 0|roctor

Octobor 8, 2018
/s/ lotor Chorn|n
lotor Chorn|n
0|roctor

Octobor 8, 2018
/s/ lotor Curr|o
lotor Curr|o
0|roctor

Octobor 8, 2018

ll-7
1abIo ot Contonta
5ignaturo 1itIo Dato
/s/ lotor |onton
lotor |onton
0|roctor

Octobor 8, 2018
/s/ 0av|d losonb|att
0av|d losonb|att
0|roctor

Octobor 8, 2018
/s/ Evan W||||ams
Evan W||||ams
0|roctor

Octobor 8, 2018

ll-8
1abIo ot Contonta
EXE|B|1 |NDEX

Exhibit Numbor Doacrition
1.1 |orm ot Undorwr|t|ng Agroomont.
2.1

Agroomont and l|an ot loorgan|zat|on among tho log|strant, laptor Vorgor lnc., Volub lnc. and |ort|s Adv|sors llC, as 3tockho|dors'
Agont, datod as ot 3optombor 0, 2018.
8.1 lostatod Cort|t|cato ot lncorporat|on ot tho log|strant, as curront|y |n ottoct.
8.2 |orm ot Amondod and lostatod Cort|t|cato ot lncorporat|on ot tho log|strant, to bo |n ottoct upon tho comp|ot|on ot th|s ottor|ng.
8.8 3y|aws ot tho log|strant, as curront|y |n ottoct.
8.4 |orm ot Amondod and lostatod 3y|aws ot tho log|strant, to bo |n ottoct upon tho comp|ot|on ot th|s ottor|ng.
4.1 |orm ot common stock cort|t|cato ot tho log|strant.
4.2

Amondod and lostatod lnvostors' l|ghts Agroomont among tho log|strant and corta|n ho|dors ot |ts cap|ta| stock, datod as ot lovombor 14,
2011.
4.8 Warrant to purchaso sharos ot 3or|os C convort|b|o protorrod stock |ssuod to 3|||con va||oy 3ank, datod as ot 0ocombor 10, 2008.
4.4 |o|dor vot|ng Agroomont botwoon tho log|strant and Comp||anco Vattor 3orv|cos, llC, datod as ot 1u|y 28, 2011.
4.b |o|dor vot|ng Agroomont among tho log|strant, l1lC ll, llC and 1.l. Vorgan 0|g|ta| Growth |und l.l., datod as ot 1u|y 28, 2011.
4.0

3|do lottor Agroomont among tho log|strant, l1lC, llC, l1lC ll, llC, Comp||anco Vattor 3orv|cos, llC and 1.l. Vorgan 0|g|ta| Growth
|und l.l., datod as ot 1u|y 28, 2011.
b.1 Op|n|on ot W||son 3ons|n| Goodr|ch 8 losat|, l.C.
10.1+ |orm ot lndomn|t|cat|on Agroomont botwoon tho log|strant and oach ot |ts d|roctors and oxocut|vo ott|cors.
10.2+ 1w|ttor, lnc. 2018 Equ|ty lncont|vo l|an and ro|atod torm agroomonts.
10.8+ 1w|ttor, lnc. 2018 Emp|oyoo 3tock lurchaso l|an and ro|atod torm agroomonts.
10.4+ 1w|ttor, lnc. 2007 Equ|ty lncont|vo l|an and ro|atod torm agroomonts.
10.b+ 1w|ttor, lnc. 2011 Acqu|s|t|on Opt|on l|an.
10.0+ 3|uot|n labs, lnc. 2008 3tock l|an.
10.7+ Crash|yt|cs, lnc. 2011 3tock l|an.
10.8+ V|xor labs, lnc. 2008 3tock l|an.
10.0+ 1w|ttor, lnc. Exocut|vo lncont|vo Componsat|on l|an.
10.10+ 1w|ttor, lnc. Chango ot Contro| 3ovoranco lo||cy.
10.11+ Ottor lottor botwoon tho log|strant and l|chard Costo|o.
10.12+ Ottor lottor botwoon tho log|strant and A|| lowghan|.
10.18+ Ottor lottor botwoon tho log|strant and V|ko Gupta.
10.14+ Ottor lottor botwoon tho log|strant and Adam 3a|n.
10.1b+ Ottor lottor botwoon tho log|strant and Chr|stophor |ry.
10.10+ Ottor lottor botwoon tho log|strant and v|jaya Gaddo.
1abIo ot Contonta
Exhibit Numbor Doacrition
10.17+ Ottor lottor botwoon tho log|strant and lotor Chorn|n, datod as ot Octobor 10, 2012.
10.18

Ott|co loaso botwoon tho log|strant and 3r| l|no Varkot 3quaro llC, datod as ot Apr|| 20, 2011, as amondod on Vay 10, 2011, 3optombor
80, 2011 and 1uno 1, 2012.
10.10 |orm ot lnnovator's latont Agroomont.
21.1 l|st ot subs|d|ar|os ot tho log|strant.
28.1 Consont ot lr|cowatorhousoCoopors lll, lndopondont log|storod lub||c Account|ng ||rm.
28.2 Consont ot W||son 3ons|n| Goodr|ch 8 losat|, l.C. (|nc|udod |n Exh|b|t b.1).
24.1 lowor ot Attornoy (soo pago ll-7 to th|s log|strat|on 3tatomont on |orm 3-1).
00.1 Consont ot 1ho l|o|son Company.

1o bo t||od by amondmont.
+ lnd|catosmanagomont contract or componsatory p|an.