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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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  "pageNumber": 55,
  "pageCount": 108,
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  "notes": "The slide uses a comparison table to expose management's inconsistent reporting practices.",
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      "text": "We find it concerning that management’s definition of “cloud revenue” is not consistent between its press releases and financial statements, with its SEC filings noting that cloud revenue includes “term-based licenses, which are recognized at a point in time.”",
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      "text": "In SEC filings and press releases, management has begun to provide a number of proprietary metrics which it uses to measure cloud-related revenue – specifically, “cloud revenue,” “recurring revenue,” “cloud annualized recurring revenue (ARR),” and, most recently, “SaaS revenue.” We find it concerning that management’s definition of “cloud revenue” is not consistent between its press releases and financial statements, with its SEC filings noting that cloud revenue includes “term-based licenses, which are recognized at a point in time.” Why is this not disclosed in press releases? Further, management makes no mention in its SEC filings of the “cloud ARR” metric discussed in press releases. Is this a more liberal or aggressive proprietary metric which management wants to keep from closer SEC scrutiny?",
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      "text": "“Recurring revenue, on both a GAAP and non-GAAP basis, is the portion of our revenue that we believe is likely to be renewed in the future, and primarily consists of initial and renewal PCS, SaaS, term-based licenses, and managed services, which are recognized over time.” — VRNT Q4 FY19 Earnings Press Release",
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      "text": "Comparison table of definitions between VRNT Q4 FY19 Earnings Press Release and VRNT FY19 10-K",
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      "kind": "title",
      "text": "What Exactly Is “Cloud Revenue”?",
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