{
  "docId": "019dd923-622c-750b-8b98-f1acfdee233e",
  "docSlug": "a458f84d7f69",
  "documentTitle": "Forescout Technologies (FSCT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-05-13 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 39,
  "pageCount": 55,
  "prevPage": 38,
  "nextPage": 40,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "overcrowded",
  "nDataPoints": 9,
  "notes": "Uses expert quotes and employee growth charts to support the thesis of competitive disadvantage.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "line_chart",
    "logo_grid",
    "quote_block",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-f1acfdee233e/39",
  "deckHref": "/decks/019dd923-622c-750b-8b98-f1acfdee233e",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-f1acfdee233e.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-f1acfdee233e#slide-39",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.47,
        "x": 0.51,
        "y": 0.76
      },
      "kind": "callout",
      "text": "Spruce Point believes that Forescout will have trouble reaccelerating its top-line growth rate as it attempts to win smaller, more price-sensitive mid-level customers.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5a9140ab-b6e3-4802-898f-270ecdbc72f5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point believes that Forescout will have trouble reaccelerating its top-line growth rate as it attempts to win smaller, more price-sensitive mid-level customers with less comprehensive cybersecurity needs – particularly as the ongoing pandemic pressures budgets across the global economy.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2041-7259-a85f-aba54e49e9ac",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.43,
        "x": 0.06,
        "y": 0.76
      },
      "kind": "chart",
      "text": "Dragos employee growth chart",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "52a78a3a-bd02-405f-bf9c-222ed34cfcff",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.43,
        "x": 0.06,
        "y": 0.55
      },
      "kind": "chart",
      "text": "Claroty employee growth chart",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5749a74d-71dd-4bf3-b034-32de83bb5d6b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.43,
        "x": 0.06,
        "y": 0.34
      },
      "kind": "chart",
      "text": "Armis employee growth chart",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "90386ac4-1772-4689-93de-5d2ba3c1b131",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "employee growth",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2041-7259-a85f-b163ea4118ec",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.96,
        "x": 0.02,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Industry experts indicate that the 30%+ annual growth that Forescout enjoyed from 2016-18 was driven largely by its success among government agencies and large corporate customers. This market, they report, is now largely saturated...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c7777d36-f48d-433e-9777-411e4e3131b9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.47,
        "x": 0.51,
        "y": 0.34
      },
      "kind": "quote",
      "text": "Forescout did a good job of winning contracts... But most of the runway with government customers and Fortune 500 companies is now saturated.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0e165ea4-566e-4818-a36a-75063621a51b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.47,
        "x": 0.51,
        "y": 0.55
      },
      "kind": "quote",
      "text": "There is a lot of reverse engineering going on among competitors and startups... they are cheaper and can be enough to meet down-market customers' needs.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "10566bbc-5238-4ea3-b7dd-febeed4f087c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Forescout did a good job of winning contracts with government agencies and large civilian enterprises... But most of the runway with government customers and Fortune 500 companies is now saturated. Forescout has to figure out international to get its growth rate back up, and it is going to have to go down market for new customers. It has to simplify its sales pitch for smaller customers with less comprehensive needs.\" — Cybersecurity Expert, Former Forescout Employee (paraphrased); \"There is a lot of reverse engineering going on among competitors and startups. They might not all offer as complete of a solution as Forescout, but they are cheaper and can be enough to meet down-market customers' needs.\" — Cybersecurity Expert, Former Forescout Employee (paraphrased)",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-2041-7259-a85f-acb2e56833c3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.1,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: LinkedIn",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "00473e7a-b023-4bc1-9371-bf54fadbc42d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.305,
        "y": 0.02
      },
      "kind": "title",
      "text": "Field Research Indicates Faster Growing Upstarts Are Winning Business, Gaining Share",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1aea54fd-fb09-4993-aa27-f2b98fe600b5",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "8e03c978-e831-49c4-acf5-2fac49f85193",
      "evidence": "Identifies specific competitors (Armis, Claroty, Dragos) as the cause of the company's decline.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 55,
      "from": 31,
      "beatId": "5586a53a-4b3e-41e9-8cf0-76a89517f36e",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "Spruce Point concludes that Advent should renegotiate or walk away from the deal.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 40,
      "from": 34,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "e531321d-3f70-421e-9615-2e89f4391164",
      "evidence": "Spruce Point emphasizes the potential consequences of not taking action.",
      "position": 1,
      "objective": "Highlight the risks of not renegotiating the deal",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}