{
  "docId": "019dd923-622c-750b-8b98-75b90dee081f",
  "docSlug": "664272f4012c",
  "documentTitle": "2U, Inc. (TWOU)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-07-19 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 12,
  "pageCount": 50,
  "prevPage": 11,
  "nextPage": 13,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "Uses a side-by-side comparison of a corporate presentation slide and a legal contract to expose a discrepancy.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "kpi_table",
    "screenshot"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-75b90dee081f/12",
  "deckHref": "/decks/019dd923-622c-750b-8b98-75b90dee081f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-75b90dee081f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-75b90dee081f#slide-12",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "This illustrates the fallacy of assuming that 2U’s historical performance will continue going forward in a period of margin compression.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0934-771a-b7b0-1fb7a787df7a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.47,
        "x": 0.02,
        "y": 0.39
      },
      "kind": "image",
      "text": "2U presentation slide showing 60% revenue share",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "02ecd6f7-a042-411d-a669-a87f6fd75c73",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.5,
        "x": 0.48,
        "y": 0.39
      },
      "kind": "image",
      "text": "Coursera contract snippet showing 40% revenue share",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "92923728-ca38-4406-80fa-a031e5856adb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "take-rate: 40%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0934-771a-b7b0-26f28d6f7100",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.96,
        "x": 0.02,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "2U claims it gets 60% revenue shares with universities known in the industry as its “take-rate”. Competitors are significantly pressuring the historical industry take-rate. We obtained the University of Illinois MBA Contract with Coursera (a 2U Competitor) that was signed in March of 2017. Coursera’s take-rate is 40%. This illustrates the fallacy of assuming that 2U’s historical performance will continue going forward in a period of margin compression.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2f597efc-418a-4518-abcd-f9942c82214a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Revenue Sharing. Tuition (less any Tuition Waivers as permitted under Section 2(c)) will be collected by Illinois for all Degree Courses and Degree Programs, and shall be shared with Coursera in the percentages set forth below. i. iMBA Degree Program. Contingent on the Roadmap being completed as set forth in Attachment C, tuition revenue share for the iMBA Degree Program will be [redacted] to Illinois and [redacted] to Coursera from Degree Launch through Spring Semester 2018; and 60% to Illinois and 40% to Coursera beginning Summer 2018, and continuing for the duration of the iMBA Degree Program.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0934-771a-b7b0-21c7cc85fd3e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.38,
        "x": 0.02,
        "y": 0.79
      },
      "kind": "source-note",
      "text": "Source: 2U Baird Consumer, Tech and Services Conference, June 2018",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "43fe0609-d16c-4315-b0f1-ccab323c65ce",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.48,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: University of Illinois FOIA request",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "44322684-b526-4ce8-8c93-b83bbadc3626",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.32,
        "y": 0.03
      },
      "kind": "title",
      "text": "The Fallacy of Steady State Revenues: Lower Take-Rates Have Arrived!",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7e91fba6-47c4-4c51-867c-169d2c678daf",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "8ddc2599-58c9-4654-bbed-b5bebdca5430",
      "evidence": "Contrasts company claim with external evidence (contract)",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 25,
      "from": 7,
      "beatId": "bb1cafab-e197-45e0-897b-61d037bc2665",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate (Make it worse)",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The document highlights several issues with 2U's financials, competitive position, and business model, making the problem worse",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 25,
      "from": 7,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "453b9acd-74b2-49dd-8a56-3d4a3818ce30",
      "evidence": "The document provides a detailed breakdown of 2U's financials and competitive position, highlighting several issues",
      "position": 1,
      "objective": "to break down 2U's financials and competitive position",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.7,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}