Starboard Value Wix Presentation October 2022

starboard-value-wix-presentation-october-2022 · 2022-10
arc beats above · slides in the middle · loops below · scroll → 3 LOOPS
SETUP TENSION ANALYSIS EVIDENCE RESOLUTION APPENDIX
HOVER FOR DETAILS · CLICK A SLIDE FOR FULLSCREEN · STEP 5
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Deck intelligence map

3
coverage by narrative range · generated from this deck JSON

Slide inventory

65
every slide · same image gating as the playbook
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Slide 1
front_matter
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front_matter
03
The chart illustrates the valuation premium commanded by high-growth software companies compared to mid and low-growth peers.compare_peers
Open slide detailBeat · Situation & Context
04
The slide uses a red dashed line to highlight the 685bps drop in growth.diagnose_problem
Open slide detailBeat · Situation & Context
05
The chart highlights a clear divergence and subsequent convergence of valuation multiples across growth cohorts, with a vertical red dashed line marking the infcompare_peers
Open slide detailBeat · Situation & Context
06
The slide uses a simple additive diagram to build a thesis.quantify_opportunity
Open slide detailBeat · Problem & Complication
07
The slide uses a placeholder layout with three dark blue boxes, likely intended for company logos or names.transition
Open slide detailBeat · Problem & Complication
08
The slide uses a placeholder structure for three companies, with only Wix currently revealed.transition
Open slide detailBeat · Problem & Complication
09
Includes a standard enterprise value bridge calculation.establish_context
Open slide detailBeat · Problem & Complication
10
The slide juxtaposes artistic branding with code snippets, likely intended to frame Wix as a 'lifestyle' or 'design-first' company rather than a disciplined busestablish_context
Open slide detailBeat · Problem & Complication
11
The chart illustrates the 'cohort effect' where newer cohorts show steeper growth curves than older ones.analyze_data
Open slide detailBeat · Problem & Complication
12
The chart highlights a specific period of investment (Q2'20-Q4'21) where revenue growth peaked while FCF margins declined.analyze_data
Open slide detailBeat · Problem & Complication
13
The chart uses a trend line to emphasize the growth trajectory.analyze_data
Open slide detailBeat · Problem & Complication
14
The slide uses a dual-bar chart to contrast revenue growth (dark blue) against FCF margin (light blue) across 16 quarters, with annotations highlighting the manexpose_contradiction
Open slide detailBeat · Problem & ComplicationLoop · Cost Of Inaction
15
The chart highlights a 76% decline using a trend line.diagnose_problem
Open slide detailBeat · Problem & ComplicationLoop · Cost Of Inaction
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The chart includes a median line and revenue growth metrics for each company.compare_peers
Open slide detailBeat · Problem & ComplicationLoop · Cost Of Inaction
17
The chart uses the 'Rule of 40' metric (Growth + Profit Margin).compare_peers
Open slide detailBeat · Problem & Complication
18
Includes a historical 2019 data point for Wix for context.compare_peers
Open slide detailBeat · Problem & Complication
19
The chart uses a break in the x-axis between CY2022E and CY2025E to indicate a multi-year gap.quantify_opportunity
Open slide detailBeat · Problem & Complication
20
The slide uses a combination of a time-series bar chart for expenses and a peer-comparison bar chart for headcount.compare_peers
Open slide detailBeat · Problem & Complication
21
The slide uses a callout box to highlight the discrepancy between headcount growth and revenue growth.expose_contradiction
Open slide detailBeat · Problem & Complication
22
The slide uses a red/blue color scheme to contrast the two companies, with a callout box emphasizing the discrepancy.compare_peers
Open slide detailBeat · Problem & Complication
23
The slide uses a callout box with a red dashed border to emphasize the discrepancy between headcount growth (3.5x) and revenue growth (2.1x).diagnose_problem
Open slide detailBeat · Problem & Complication
24
The slide uses a bar chart to show stock price reaction, framing the cost-cutting as a positive shift in approach.illustrate_case
Open slide detailBeat · Solution & Approach
25
The slide uses a trend line over a bar chart to emphasize the growth trajectory.quantify_opportunity
Open slide detailBeat · Solution & Approach
26
The chart uses a dashed vertical line to separate management's projections from the activist's pro-forma estimate.quantify_opportunity
Open slide detailBeat · Solution & Approach
27
The chart uses a 'Rule of 40' style metric (Growth + FCF Margin).compare_peers
Open slide detailBeat · Solution & Approach
28
Uses two green dashed-border callout boxes to highlight key financial projections.quantify_opportunity
Open slide detailBeat · Solution & Approach
29
The slide uses placeholders for two additional companies. The bottom callout box summarizes the investment thesis for all three.frame_situation
Open slide detailBeat · Solution & Approach
30
The third opportunity is redacted (dark blue box).transition
Open slide detailBeat · Solution & Approach
31
Includes valuation bridge (EV calculation) and two pie charts for segment analysis.establish_context
Open slide detailBeat · Solution & Approach
32
The slide uses a layered visual metaphor to show data ingestion (bottom), platform processing (middle), and application layers (top).establish_context
Open slide detailBeat · Solution & Approach
33
establish_context
Open slide detailBeat · Solution & Approach
34
The slide uses a logo grid to establish credibility and market reach.establish_context
Open slide detailBeat · Solution & Approach
35
The chart illustrates a dip in growth during the transition period (CY2020).frame_problem
Open slide detailBeat · Solution & Approach
36
The slide highlights a 'FCF transition period' between 2019 and 2021.frame_situation
Open slide detailBeat · Solution & Approach
37
Uses a combination of a growth chart and a direct quote from the former CFO to establish the baseline expectations.expose_contradiction
Open slide detailBeat · Solution & Approach
38
The slide uses a 'before-after' framing to highlight management's failure to meet guidance.expose_contradiction
Open slide detailBeat · Solution & Approach
39
The slide uses a table to list negative earnings reactions and a line chart to show the long-term share price decline.expose_contradiction
Open slide detailBeat · Solution & Approach
40
The slide uses two bar charts to compare Splunk (red) against high-growth (dark blue) and moderate-growth (light blue) peers.compare_peers
Open slide detailBeat · Solution & Approach
41
introduce_nominees
Open slide detailBeat · Solution & Approach
42
The chart highlights the sale of Proofpoint to Thoma Bravo as a key value-creation event.introduce_nominees
Open slide detailBeat · Solution & Approach
43
The chart highlights Splunk in red at the far right, significantly below the peer median of 47%.compare_peers
Open slide detailBeat · Solution & Approach
44
The chart uses a red bar for Splunk to emphasize its underperformance relative to the peer median.compare_peers
Open slide detailBeat · Solution & ApproachLoop · Mece Breakdown
45
The slide uses a 'move up and to the right' narrative to justify a valuation re-rating for Splunk.show_valuation_bridge
Open slide detailBeat · Solution & ApproachLoop · Mece Breakdown
46
The slide uses a 'before-after' framing to illustrate the potential value creation.quantify_opportunity
Open slide detailBeat · Solution & ApproachLoop · Mece Breakdown
47
Uses a before-after-bridge visual structure to contrast current vs future state.quantify_opportunity
Open slide detailBeat · Solution & Approach
48
The slide serves as evidence of M&A interest in the target company.cite_precedent
Open slide detailBeat · Solution & Approach
49
The third opportunity is redacted (dark blue box).transition
Open slide detailBeat · Solution & Approach
50
The slide uses a visual hierarchy where Salesforce is highlighted with a blue border, while Wix and Splunk are in grey dashed boxes.transition
Open slide detailBeat · Solution & Approach
51
Includes a valuation bridge (Enterprise Value calculation) and a historical revenue bar chart.establish_context
Open slide detailBeat · Solution & Approach
52
establish_context
Open slide detailBeat · Solution & Approach
53
establish_context
Open slide detailBeat · Solution & Approach
54
The slide uses a bar chart to visualize market size in billions, with growth rates and CRM position rankings listed below each category.size_opportunity
Open slide detailBeat · Solution & Approach
55
The chart highlights the underperformance of CRM relative to benchmarks and peers.compare_peers
Open slide detailBeat · Solution & Approach
56
The slide uses two bar charts to demonstrate valuation gaps across two key financial metrics.compare_peers
Open slide detailBeat · Solution & Approach
57
Uses the 'Rule of 40' framework (here referred to as 'Rule of 50' for the peer group).compare_peers
Open slide detailBeat · Solution & Approach
58
The chart highlights that CRM has the lowest incremental margin (20.1%) compared to peers like ORCL (105.0%).compare_peers
Open slide detailBeat · Solution & Approach
59
The slide uses a combination of headshots and a pull-quote to establish credibility for the management team's strategic pivot.summarize
Open slide detailBeat · Solution & ApproachLoop · Quick Win Big Bet
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Uses callouts to frame company milestones (first margin target, first share repurchase) as positive but insufficient compared to peer performance.preempt_rebuttal
Open slide detailBeat · Solution & ApproachLoop · Quick Win Big Bet
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The slide uses a 'Growth + Margin' metric (Rule of 40 variant) to demonstrate underperformance.compare_peers
Open slide detailBeat · Solution & ApproachLoop · Quick Win Big Bet
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The slide uses a bridge diagram to compare a baseline FY2023 margin against three potential FY2026 scenarios based on varying incremental margin assumptions.quantify_opportunity
Open slide detailBeat · Solution & ApproachLoop · Quick Win Big Bet
63
Uses a causal chain to link margin expansion to FCF/share and capital deployment capacity.quantify_opportunity
Open slide detailBeat · Solution & Approach
64
The slide uses a visual grouping of three company logos above a summary statement, typical of an activist investor's thesis summary.summarize
Open slide detailBeat · Solution & Approach