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  "documentTitle": "Verint Systems, Inc. (VRNT)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-05-23 00:00:00",
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  "notes": "Uses a before-after comparison of reported vs. adjusted metrics to expose accounting manipulation.",
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      "text": "17.5% reported growth / -0.3% adjusted growth",
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      "text": "15.6% reported growth / 1.5% adjusted growth",
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      "text": "When capitalized commissions are deducted from both Adj. EBITDA and Non-GAAP Net Income in FY19, growth in both metrics is cut from mid-teens levels to close to (or below) zero.",
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      "text": "Adj. EBITDA Growth Almost Entirely Attributable To Commission Capitalization",
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      "text": "Non-GAAP Net Income Growth Almost Entirely Attributable To Commission Capitalization",
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      "text": "Non-GAAP Net Income: -0.3%",
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      "text": "As discussed, effectively all growth in Adj. EBITDA and Non-GAAP Net Income in FY19 can be attributed to management's decision to capitalize commissions starting last year. When capitalized commissions are deducted from both Adj. EBITDA and Non-GAAP Net Income in FY19, growth in both metrics is cut from mid-teens levels to close to (or below) zero.",
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      "text": "We capitalize commissions paid to internal sales personnel and agent commissions that are incremental to obtaining customer contracts. We have determined that these commissions are in fact incremental and would not have occurred absent the customer contract. — VRNT FY19 10-K",
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      "text": "Sources: VRNT SEC Filings",
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      "kind": "title",
      "text": "Non-GAAP Earnings Growth Driven Entirely By Cost Capitalization?",
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