{
  "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": 56,
  "pageCount": 60,
  "prevPage": 55,
  "nextPage": 57,
  "slideType": "comparison_table",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 14,
  "notes": "The slide highlights specific financial metrics where Spruce Point expects underperformance due to churn and rising costs.",
  "elementsJson": [
    "headline_text",
    "comparison_table",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-df3d01a8b7bd/56",
  "deckHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-df3d01a8b7bd#slide-56",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes the market is under-estimating the likelihood of rising churn from recent price increases, sales and marketing costs to acquire new customers, and increasing deferred capex / lease repayment costs in the coming year.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a88a-4f365b242ee4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Adj Free Cash Flow: $105",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0397-72dc-a88a-5035bd4635c6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "Spruce Point believes the market is under-estimating the likelihood of rising churn from recent price increases, sales and marketing costs to acquire new customers, and increasing deferred capex / lease repayment costs in the coming year. As a result, we see above average risk that Dropbox misses its revenue and cash flow objectives.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8fdd73c7-c8fa-4a4e-a49e-230cf340ef67",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.84,
        "x": 0.08,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "1) We adjust for expensing of sales commissions and model higher sales and marketing costs than the Street as a result of our findings that customer acquisitions are rising Spruce Point's Adjusted Free Cash Flow calculated as CFO – Capex – Finance Lease Repayments – Cash Cost of Stock Compensation. We assume 50% of 2020E $308m stock compensation is used to repurchase stock for tax withholdings, which is in-line with the historical ratio",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4026597b-1ff1-45f7-8f37-ace7d4253f4f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.52,
        "w": 0.84,
        "x": 0.08,
        "y": 0.31
      },
      "kind": "table",
      "text": "Comparison table of 2020E metrics between Street and Spruce Point",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4ca20b9b-ada8-4906-ba9b-8f24d151847a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.38,
        "x": 0.31,
        "y": 0.05
      },
      "kind": "title",
      "text": "Spruce Point vs. Bullish Upside Case",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "92ab52df-435f-4c2d-a1b6-0d1ffaaeba46",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "4be0e3e8-768a-484f-a2ad-107c6e6601c1",
      "evidence": "Direct side-by-side comparison of financial projections to highlight discrepancies.",
      "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
}