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  "docSlug": "c54d9b8bb206",
  "documentTitle": "Verint Systems, Inc. (VRNT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-05-23 00:00:00",
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  "notes": "Uses a contrast-principle framework to highlight the discrepancy between growth and valuation.",
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      "kind": "callout",
      "text": "Why does Verint – whose sales, per our estimates, contracted in FY19 – trade at a sales multiple similar to that for which BroadSoft sold?",
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      "text": "BSFT - Sales Growth",
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      "text": "VRNT - Organic Sales Growth (Est.)",
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      "text": "EV / Sales: 3.9x",
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      "text": "Verint also currently trades in a EV/Sales range similar to that at which Cisco acquired cloud-based communications software provider BroadSoft in 2017-18. At the time, BroadSoft sales had been growing at a rate of 20-30% per year for three years running. Why does Verint – whose sales, per our estimates, contracted in FY19 – trade at a sales multiple similar to that for which BroadSoft sold?",
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      "kind": "source-note",
      "text": "1. TTM Revenue as of deal date for BroadSoft (source: Bloomberg). TTM Revenue as of today for VRNT.",
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      "kind": "source-note",
      "text": "Source: 2016 BroadSoft 10-K",
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      "text": "Valuation: BroadSoft vs. VRNT",
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      "kind": "title",
      "text": "Why Does Struggling Verint Trade Comparably To Strong Cloud Businesses?",
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