{
  "docId": "019dd923-622b-71dc-a6d9-674180b37344",
  "docSlug": "3743163daebf",
  "documentTitle": "athenahealth, Inc. (ATHN)",
  "authorId": "02_Elliott_Management",
  "authorName": "Jesse Cohn",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-05-07 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 2,
  "pageCount": 7,
  "prevPage": 1,
  "nextPage": 3,
  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "This is a text-heavy slide from an activist investor letter (Elliott Management) framing the case for change at athenahealth.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-674180b37344/2",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-674180b37344",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-674180b37344.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-674180b37344#slide-2",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Unfortunately, we are faced now with the stark reality that athenahealth as a public-company investment, despite all of its promise, has not worked for many years, is not working today and will not work in the future.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-f5d4-752d-aad9-a485cc1e6142",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.135,
        "w": 0.766,
        "x": 0.117,
        "y": 0.438
      },
      "kind": "paragraph",
      "text": "However, it is clear to us... that athenahealth’s potential will never be realized without the kind of operational change that the Company seems unable to deliver... Last November, we approached athenahealth about the possibility of a take-private transaction...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "258503a3-35aa-4d4a-bdfc-c6084cd24853",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.135,
        "w": 0.766,
        "x": 0.117,
        "y": 0.147
      },
      "kind": "paragraph",
      "text": "Elliott has done an extensive amount of work to understand athenahealth’s business... We believe that athenahealth has great potential... Unfortunately, we are faced now with the stark reality that athenahealth as a public-company investment... has not worked.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "45ef018a-87ed-404e-9fe3-03b8fb6f6681",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.118,
        "w": 0.766,
        "x": 0.117,
        "y": 0.301
      },
      "kind": "paragraph",
      "text": "We have spent considerable time with many of the Company’s shareholders... The hope was that, with these problems behind it, athenahealth could capitalize on the substantial opportunities in front of it.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8b7caca7-c65d-49c8-b22b-9f0a3f30cafe",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.101,
        "w": 0.766,
        "x": 0.117,
        "y": 0.697
      },
      "kind": "paragraph",
      "text": "The stock price tells the story: From a shareholder standpoint, owning athenahealth has been a disappointing experience. The Company’s stock price has deeply underperformed all relevant benchmarks for more than five years.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "96833e73-f3f8-4f29-a548-465d3a7ba960",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.051,
        "w": 0.766,
        "x": 0.117,
        "y": 0.628
      },
      "kind": "paragraph",
      "text": "For many years, despite all of its advantages, athenahealth’s stock price has underperformed because the Company has failed to correct a host of identifiable operational issues.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a615315c-ea69-4520-b228-e10c6d9319fa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.016,
        "w": 0.255,
        "x": 0.117,
        "y": 0.111
      },
      "kind": "title",
      "text": "Background to the Proposal",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4b743384-f3e7-4e59-8be3-dad8fdbfaa44",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.016,
        "w": 0.215,
        "x": 0.117,
        "y": 0.592
      },
      "kind": "title",
      "text": "Stock-price underperformance",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f8526105-d980-4daa-8524-bd7d001f3b5d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "8be63ecb-94d2-4717-bb37-6cd58d8c0ea8",
      "evidence": "The slide frames the company management as the obstacle to value realization.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [
    {
      "to": 2,
      "from": 2,
      "beatId": "7b4e25f7-4fb8-46c5-9caa-89468faf78c5",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem (Identify pain)",
      "beatSlug": "problem-agitate-solution-problem-identify-pain",
      "evidence": "Background to the Proposal",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}