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  "docSlug": "69cc18cfe079",
  "documentTitle": "NQ Mobile (NQ)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-10-24 00:00:00",
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  "notes": "The slide uses data to cast doubt on NQ's reported revenue and market strength, specifically contrasting US retail presence with reported ARPU.",
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      "text": "NQ has its co-headquarters in the US, spends significant sums of money on PR, and yet does not generate meaningful revenue in this market.",
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      "text": "NQ has its co-headquarters in the US, spends significant sums of money on PR, and yet does not generate meaningful revenue in this market. (It is not a coincidence that revenue from the US would be much easier to audit than that from developing countries.) Our site visits to 84 retail locations in the US that are supposed to sell NQ products, and conversations with management of some of NQ's US distribution partners yields attachment rates generally of only 2% to 3%. The average ARPU in the US is $46.50.",
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      "kind": "paragraph",
      "text": "The graph below from Distimo data compares the average daily revenue of Lookout, Kaspersky, and NQ, across all mobile security products. We understand that Lookout's worldwide mobile security app revenue is less than $10 million annually.",
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      "text": "NQ tells investors that its strongest markets are in Southeast Asia and the Middle East – particularly Malaysia, Thailand, Indonesia, and Dubai. It claims an annual ARPU in these markets of $15. The monthly blended ARPU in Thailand is $7.13, with 60% of Thais using a mobile device to access the Internet.",
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      "kind": "source-note",
      "text": "56 http://www.slideshare.net/yozzo1/2013-thailand-mobile-market-information\n57 http://www.totaltele.com/view.aspx?ID=472089",
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