{
  "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": 65,
  "pageCount": 108,
  "prevPage": 64,
  "nextPage": 66,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 12,
  "notes": "Uses red arrows and callouts to emphasize the divergence in revenue and earnings impact between the two companies.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-b531f2b0553d/65",
  "deckHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d#slide-65",
  "components": [
    {
      "bbox": {
        "h": 0.05,
        "w": 0.2,
        "x": 0.78,
        "y": 0.48
      },
      "kind": "callout",
      "text": "$3.9M earnings benefit (2% change)",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5b21791f-ac53-4d28-9722-bf0f9ec9335d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.2,
        "x": 0.78,
        "y": 0.75
      },
      "kind": "callout",
      "text": "$47.8M revenue benefit (4% change)",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9f405af2-6d82-4c3c-afd0-c10d17bdf9b8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.2,
        "x": 0.78,
        "y": 0.42
      },
      "kind": "callout",
      "text": "$9.2M revenue penalty (1% change)",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b220c956-4a79-411f-8992-2803f50f3501",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.2,
        "x": 0.78,
        "y": 0.92
      },
      "kind": "callout",
      "text": "$51.5M earnings benefit (73% change!!!)",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e6ff5812-4523-4f65-bb5a-a58d2f756328",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Why did the adoption of ASC 606 have such a significant positive impact on Verint, whose accounting should be extremely similar to NICE’s accounting?",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a973-b9027e551c67",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "earnings impact: 73%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a973-c28cf9a44ce9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "NICE, Verint's most direct comp and competitor, also suggested that adoption of ASC 606 would not materially impact stated results. However, unlike Verint, Nice issued FY18 guidance under ASC 605 standards to provide “better transparency and comparability to 2017 financial data,” and its FY18 results confirm that its adoption of ASC 606 had little effect on its financials. Furthermore – and importantly – NICE took a revenue penalty from the change, and saw earnings grow by just 2% (versus 73% for Verint!). Why did the adoption of ASC 606 have such a significant positive impact on Verint, whose accounting should be extremely similar to NICE’s accounting?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bd876d28-1693-42e6-8370-bbba4504d992",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "NICE, Verint’s most direct comp and competitor, also suggested that adoption of ASC 606 would not materially impact stated results. However, unlike Verint, Nice issued FY18 guidance under ASC 605 standards to provide “better transparency and comparability to 2017 financial data,” and its FY18 results confirm that its adoption of ASC 606 had little effect on its financials.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a973-bc38537a6da0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.65,
        "x": 0.1,
        "y": 0.32
      },
      "kind": "table",
      "text": "NICE FY18 20-F financial table showing revenue and earnings impact of ASC 606.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "859b14c1-5488-48be-acf1-d624901ae5db",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.32,
        "w": 0.65,
        "x": 0.1,
        "y": 0.62
      },
      "kind": "table",
      "text": "VRNT FY19 10-K financial table showing revenue and earnings impact of ASC 606.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ffc3fcff-ea40-4f31-89be-a0f8b5196bfb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.3,
        "y": 0.02
      },
      "kind": "title",
      "text": "ASC 606 Reporting Standards, And Impact On Financial Results, Not In Line With Peers",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7804be99-22f7-429e-ad5b-efe080e3f090",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "e7b7f757-0cad-47c7-99cc-c002429bfa5c",
      "evidence": "Contrasting accounting impacts between competitors to suggest manipulation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}