{
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  "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",
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  "pageNumber": 8,
  "pageCount": 108,
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  "slideType": "expose_contradiction",
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  "density": "dense",
  "nDataPoints": 30,
  "notes": "Uses a table to calculate organic vs reported revenue beats and a bar chart to visualize the discrepancy.",
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      "kind": "callout",
      "text": "Without the assistance of revenue acquired in Q4, we estimate that Verint would have missed its Q4 revenue guidance for FY19 (as of Q3) by a significant $9.6M (-2.9%). Instead, it comfortably beat guidance by $5.1M (1.5%). Though this “beat” appears to be entirely manufactured by Q4 M&A, management gave no indication that the beat was aided by acquisitions. We believe that this “beat” was entirely superficial.",
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    {
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      "kind": "callout",
      "text": "Without the assistance of revenue acquired in Q4, we estimate that Verint would have missed its Q4 revenue guidance for FY19 (as of Q3) by a significant $9.6M (-2.9%)",
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      "subkind": null,
      "toolName": "Visual emphasis",
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      "kind": "chart",
      "text": "Actual Q4 Revenue Beat vs. Organic Q4 Revenue Beat (Est.)",
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      "text": "Q4 Revenue Beat/Miss: $9.6M",
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      "kind": "paragraph",
      "text": "Through the last three fiscal years, Verint has spent at least ~$65M on new acquisitions in fiscal Q4. As management does not break out inorganic revenue contributions of acquired businesses, this has created a revenue tailwind for Verint going into Q4 earnings. Is management purposely loading up on M&A in Q4 to ensure that it matches or beats Q4 and full-year revenue guidance?",
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      "kind": "table",
      "text": "Table comparing reported revenue guidance vs actuals and organic adjustments for FY17-FY19.",
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      "kind": "title",
      "text": "Q4 Acquisition Timing Creates Year-End Revenue Boost",
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      "evidence": "Exposing manufactured revenue beats via M&A timing",
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