{
  "docId": "019dd923-622c-750b-8b98-df3d01a8b7bd",
  "docSlug": "5138ae8c47fe",
  "documentTitle": "Dropbox, Inc. (DBX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-06 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 23,
  "pageCount": 60,
  "prevPage": 22,
  "nextPage": 24,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "Uses a direct quote from a Dropbox CFO to contrast with survey findings.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bar_chart_vertical",
    "callout_box",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-df3d01a8b7bd/23",
  "deckHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd#slide-23",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "In fact, while Dropbox reports churn rates in the \"mid-teens,\" our survey suggests that close to 30% of users are either moderately or very likely to switch to a competing platform due to its recent price hikes.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a887-cc2eae1e42bf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.45,
        "x": 0.52,
        "y": 0.29
      },
      "kind": "chart",
      "text": "How likely are you or your business to switch to a Dropbox alternative given these recent changes?",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1aaf1438-44c8-4229-9282-e35e8686a10d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.45,
        "x": 0.05,
        "y": 0.29
      },
      "kind": "chart",
      "text": "Do you believe that Dropbox's added features justify its recent price increase?",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "839f5018-4a4f-481a-bda5-caea709f15d8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "user churn intent: 30%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a887-d6d1a99f30e2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Spruce Point believes that Dropbox users' unexpectedly high propensity to switch poses significant and underappreciated near-term risks to the Company's continued growth.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "026cdb3f-8369-4f57-ad8d-79d4dc088661",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.84
      },
      "kind": "paragraph",
      "text": "With Dropbox users far more open to switching than the Street believes, and with recent price hikes now giving them good reason to seek out alternatives, Spruce Point believes that recent changes to Dropbox's platform and pricing scheme could trigger accelerated churn in the coming quarters.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b7e82783-0ca3-4e83-8c6d-38b7675d2037",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.44,
        "x": 0.53,
        "y": 0.73
      },
      "kind": "quote",
      "text": "Because we're such an important part of how our users get work done and we're mission critical to so many business workflows, our churn rates have remained very stable, in the mid-teens, since our IPO.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "40311275-0b48-4acf-8548-6f2b6fd44c0a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Because we're such an important part of how our users get work done and we're mission critical to so many business workflows, our churn rates have remained very stable, in the mid-teens, since our IPO.\" — Ajay Vashee – Chief Financial Officer, Dropbox",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a887-d15aed38302a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.3,
        "x": 0.01,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Spruce Point proprietary survey. See appendix for details.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a6662acc-a502-4b8d-94d6-d5f37b37aed0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Recent Changes To Dropbox Platform Could Be The Straw That Triggers Switching",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2cb9eadf-8693-40b2-be16-6c7a8bb2a937",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "4e6093a9-8a98-4211-b640-69bf33ff1c80",
      "evidence": "Contrasting CFO quote with survey data",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 21,
      "beatId": "6db474f4-2b42-453b-a40c-bd1089765b08",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The document highlights several challenges and issues faced by Dropbox, including slowing growth and poor user conversion.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}