Our business, financial condition and operating results could be materially and adversely affected by the factors discussed below.
We face significant competition in each of the markets in which we operate
Our business depends on the continued adoption of recruiting services in Japan, including online recruiting solutions
We may be unable to continue to attract and retain high-quality direct employers, third-party recruiters and job seekers to our online recruiting platforms
Our strategy to expand our business beyond online recruiting may not be successful and may negatively affect our profitability and expose us to new risks
Our past and future acquisitions, minority investments, joint ventures and strategic alliances could fail to deliver the anticipated benefits or otherwise have an adverse effect on our businesses and results of operations
Our results of operations could be adversely affected by negative economic conditions in Japan
Our historical track record of growth may not be indicative of our future growth prospects
Any impairment of intangible fixed assets could adversely affect our financial condition or results of operations
We may not be able to offer pricing models that will attract and retain customers at acceptable margins
Security breaches or unauthorized access or use of our or our customers’ data could adversely affect our reputation and expose us to claims from customers and penalties from authorities
We rely on third-party service providers, such as search engine platforms, cloud infrastructure providers and internet and mobile service providers in various areas of our business
We have experienced significant and rapid growth in our operations, and we cannot ensure that we will continue to effectively manage our growth
Performance problems, including real or perceived errors or defects, and service interruptions could impair our ability to deliver our products and solutions to our customers and result in damage to our reputation, loss of customers and reduced revenue
We rely on AWS and GCP to provide the infrastructure for our cloud-based offerings, and any disruption or interference with our use of AWS or GCP would adversely affect our business, financial condition and results of operations
Our business depends on establishing and maintaining a strong and trusted brand, and any failure to protect our brands would hurt our business
The number of scoutable job seekers on our BizReach platform is higher than the number of active users seeking employment, and job seekers profiles may be out-of-date or inaccurate, which may adversely affect the platform’s usefulness to direct employers and third-party recruiters
Our quarterly results of operations may fluctuate significantly, which could cause the trading price of our shares to decline or be difficult to predict
The laws and regulations concerning data privacy and data security are continually evolving, and our actual or perceived failure to comply with these laws and regulations could harm our business
We are subject to a number of laws and regulations, and unfavorable changes or failure to comply with these regulations could substantially harm our business and results of operations
Our loss of key senior management personnel, including Mr. Soichiro Minami in particular, or other key employees could negatively affect our business
We may have difficulties or incur significant costs in recruiting and retaining talented employees
Certain of our key performance metrics, our estimates of our addressable market and internal financial targets are subject to various uncertainties
We may be unable to protect our intellectual property adequately
We may be subject to intellectual property claims, which could be costly to defend and require us to pay significant damages and limit our ability to use certain technologies in the future
We use open source software in our products, which could subject us to litigation or other actions
We may be involved in other litigation matters that are expensive and time consuming
Failure to maintain effective internal controls could have a material adverse effect on our business and stock price
Our business may be affected by natural disasters, geopolitical crises, pandemics or other unexpected events
We may require additional capital to support our operations and the growth of our business, and we cannot be certain that financing will be available on reasonable terms when required, or at all
There can be no assurance that we will not be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for any taxable year, which could subject U.S. investors in our shares to significant adverse U.S. income tax consequences
Investors holding less than one “unit” of shares of our common stock will have limited rights as shareholders
Future sales of shares by our existing shareholders, the exercise of stock acquisition rights or our issuance of additional shares could lower the market price of our shares and result in substantial dilution
Market price for shares of our common stock may fluctuate greatly. There can be no assurance that a liquid trading market for shares of our common stock will develop or be sustained
Rights of shareholders under Japanese law may be different from rights of shareholders in other jurisdictions
We have not made, and have no plans to make, any dividend payments, and even if we forecast dividend payments in the future, our shareholders of record on a record date may not receive the dividend they anticipate
Daily price range limitations imposed by the Tokyo Stock Exchange or system outages due to malfunctions or other reasons may prevent you from selling our shares at a particular price on a particular trading day, or at all
Prior notification under the Foreign Exchange and Foreign Trade Act of Japan may be required in the case of acquisition by foreign investors of a certain portion of our shares
