{
  "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": 42,
  "pageCount": 60,
  "prevPage": 41,
  "nextPage": 43,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 12,
  "notes": "The slide uses a red box to highlight specific text and table rows to draw attention to the capital lease payments.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-df3d01a8b7bd/42",
  "deckHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd#slide-42",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.94,
        "x": 0.03,
        "y": 0.31
      },
      "kind": "callout",
      "text": "Liquidity And Capital Resources: \"Since our inception, we have financed our operations primarily through equity issuances, cash generated from our operations, and capital leases to finance infrastructure-related assets in co-location facilities that we directly lease and operate. We enter into capital leases in part to better match the timing of payments for infrastructure-related assets with that of cash received from our paying users. In our business model, some of our registered users convert to paying users over time, and consequently there is a lag between initial investment in infrastructure assets and cash received from some of our users..\"",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3531c98a-4065-4972-9428-fa18fb4a88a2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "Capital leases are essentially deferred Capex arrangements that Dropbox would like investors to ignore. Similarly, capital used to offset employee compensation programs are operating in nature. These real cash costs are not being captured by financial data providers and quant models used to value the Company.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b1df778e-c8f3-49c5-b6fe-02c7310bf54b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.2,
        "x": 0.03,
        "y": 0.84
      },
      "kind": "source-note",
      "text": "Source: Bloomberg and Dropbox",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "52cba919-0aa1-46d4-9fd3-e38f7ad20400",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.94,
        "x": 0.03,
        "y": 0.58
      },
      "kind": "table",
      "text": "Cash flow from financing activities table showing 2018, 2017, 2016 data for IPO proceeds, deferred costs, stock repurchases, and capital lease payments.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3e4ac37d-dc89-46ad-87b1-fcbe32cbed01",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.36,
        "x": 0.32,
        "y": 0.05
      },
      "kind": "title",
      "text": "Capital Lease = Deferred Capex",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "22985b96-ffde-47c2-8a63-8cbd74151347",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "d7a20386-6f35-4ebe-8dcf-cdef43b7a1bd",
      "evidence": "The slide explicitly frames accounting choices as things the company 'would like investors to ignore' to misrepresent valuation.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 60,
      "from": 41,
      "beatId": "b711da7a-7fa5-45ad-9659-a8262f94af22",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The document concludes with a detailed analysis of Dropbox's financials and a call to action for investors.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}