{
  "docId": "019dd923-622c-750b-8b98-b531f2b0553d",
  "docSlug": "c54d9b8bb206",
  "documentTitle": "Verint Systems, Inc. (VRNT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-05-23 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 12,
  "pageCount": 108,
  "prevPage": 11,
  "nextPage": 13,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 18,
  "notes": "The slide uses a red arrow callout to explain a specific accounting change (ASC 606) in 2019.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bar_chart_grouped",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-b531f2b0553d/12",
  "deckHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d#slide-12",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.35,
        "x": 0.6,
        "y": 0.78
      },
      "kind": "callout",
      "text": "Verint's adoption of ASC 606 was a $51.5M benefit to net income in FY19. The recent increase in Non-GAAP Net Income does not reflect organic profit growth.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "840db34a-8a88-4bfa-8ce7-78fddf23c336",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.41,
        "w": 0.84,
        "x": 0.08,
        "y": 0.37
      },
      "kind": "chart",
      "text": "Net Income: GAAP vs. Non-GAAP",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "78594713-ab09-4e9f-96ba-d22532204fe0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Net Income: $150M",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a96e-5c0689c951bf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "As is the case with many companies investigated by Spruce Point, Verint shows an increasingly large spread between GAAP and Non-GAAP income. In fact, in FY17 and FY18, Non-GAAP adjustments were responsible for over 100% of Non-GAAP net income. We believe that GAAP income is a far better measure of Verint's economic reality than a Non-GAAP measure of income with ~$150M worth of management add-backs.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bd692313-157e-46e4-98a5-09c0568d3870",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.08,
        "y": 0.77
      },
      "kind": "source-note",
      "text": "Sources: VRNT SEC Filings, Earnings Press Releases",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9566c09b-d151-4e70-8e35-4dd3c8a2211f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.55,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Widening Spread Between GAAP And Non-GAAP Net Income",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e46a08c5-77ae-43e0-9ca6-b71ea9607f15",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "5822db17-8996-4aee-929d-a7dacff84479",
      "evidence": "Highlighting aggressive non-GAAP adjustments to mask poor GAAP performance.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 5,
      "beatId": "3fae4749-56a0-4b8d-b073-48e5c048e27b",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster (Accounting Irregularities)",
      "beatSlug": null,
      "evidence": "The document highlights various accounting irregularities and aggressive practices.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 16,
      "from": 6,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "f2a8a489-f6c4-4e1a-b447-e5e36f452db6",
      "evidence": "The document presents a series of contradictions and exposes management's questionable practices.",
      "position": 0,
      "objective": "What are the implications of Verint's accounting irregularities?",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.8,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}