{
  "docId": "019dd923-622c-750b-8b98-b3c9cb9378c3",
  "docSlug": "8ac2fd285d6b",
  "documentTitle": "Axon Enterprise (formerly TASER) (AAXN)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-06-19 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 30,
  "pageCount": 72,
  "prevPage": 29,
  "nextPage": 31,
  "slideType": "cite_precedent",
  "function": "cite_precedent",
  "density": "dense",
  "nDataPoints": 45,
  "notes": "The slide uses red bars to highlight the final data point in each series, coinciding with the timing of the Spruce Point short call (marked by a star).",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "bar_chart_vertical",
    "logo_grid",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-b3c9cb9378c3/30",
  "deckHref": "/decks/019dd923-622c-750b-8b98-b3c9cb9378c3",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-b3c9cb9378c3.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-b3c9cb9378c3#slide-30",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point has based prior successful short calls on companies we found had abnormal and poor capex guidance and inventory practices, notably Gentex (GNTX), Caesarstone (CSTE), and A.O. Smith (AOS).",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-1ac2-71b6-bf45-8b7eefb46445",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.3,
        "x": 0.68,
        "y": 0.4
      },
      "kind": "chart",
      "text": "A.O. Smith Gross Margin Trend",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d8348f3f-0114-4f1e-b5a2-e4f4ff1979d1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.3,
        "x": 0.02,
        "y": 0.4
      },
      "kind": "chart",
      "text": "Gentex Gross Margin Trend",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f65112e4-6442-4a8b-8331-90147cae2ea5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.3,
        "x": 0.35,
        "y": 0.4
      },
      "kind": "chart",
      "text": "Caesarstone Gross Margin Trend",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f882a310-b10f-4ed3-82ad-12b456f0148c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "legend",
      "text": "Timing of Spruce Point call",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fa1d3315-22df-4c78-ba94-da7565afaf1f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "gross margin",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-1ac2-71b6-bf45-8f5796ab9b06",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.96,
        "x": 0.02,
        "y": 0.2
      },
      "kind": "paragraph",
      "text": "Spruce Point has based prior successful short calls on companies we found had abnormal and poor capex guidance and inventory practices, notably Gentex (GNTX), Caesarstone (CSTE), and A.O. Smith (AOS). In each of these examples, these practices were a strong leading indicator of future gross margin and earnings contraction. We will illustrate that Axon fits the mold and exhibits poor inventory and capex accounting practices. In addition, we will illustrate why we believe Axon also has aggressive revenue recognition practices.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bfa552e5-0a58-46f0-9e74-50499a1ded12",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Gross Margin + Capex Irregularities + Earnings Disappointment Usually Linked",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f4852655-012b-4885-841a-081e26dcceb3",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "cite_precedent",
      "slug": null,
      "matchId": "1943a862-ecc3-4bd3-8211-85592a6dfdd1",
      "evidence": "Uses historical examples (Gentex, Caesarstone, AOS) to validate current thesis on Axon.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 21,
      "beatId": "ea2ca066-8305-4a4e-90dd-d5c3eaba328f",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": null,
      "evidence": "The report details the struggles facing Axon Enterprises, including poor accounting practices, dependence on China, and allegations of police briberies",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}