{
  "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": 8,
  "pageCount": 55,
  "prevPage": 7,
  "nextPage": 9,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 4,
  "notes": "The slide uses a red box to highlight the 'Actual Q1 Results' column and a red box around the quote from the 10-Q to emphasize the contradiction.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-f1acfdee233e/8",
  "deckHref": "/decks/019dd923-622c-750b-8b98-f1acfdee233e",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-f1acfdee233e.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-f1acfdee233e#slide-8",
  "components": [
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      "kind": "callout",
      "text": "From Forescout's 10-Q: “The decrease in license revenue primarily resulted from the economic slowdown caused by the global impact of the COVID-19 pandemic, as well as customer uncertainty related to the Merger.”",
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    {
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      "kind": "paragraph",
      "text": "Spruce Point observes that Forescout's revenues declined materially more than “Illustrative Guidance” that was formulated in late January 2020, a time period before the deal was announced on February 6th, 2020 and the WHO declared a pandemic on March 11th, 2020. As a result, we express extreme skepticism with management's explanation for its poor performance.",
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        "x": 0.06,
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      "kind": "source-note",
      "text": "Source: Forescout 10-Q, proxy and Bloomberg consensus",
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      "kind": "table",
      "text": "Total Revenue $78.1 / 3.4% vs $62.0 / -18.0% vs $57.2 / -24.3%",
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      "kind": "title",
      "text": "Revenues Decline Way Worse Than Expected; Explanation Is Unsatisfactory",
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      "evidence": "Contrasts management's stated reason for revenue decline with actual performance data.",
      "confidence": 0.95
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      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster",
      "beatSlug": "overcoming-monster-the-monster",
      "evidence": "Spruce Point exposes contradictions in Forescout management's statements and actions.",
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      "bestFor": "Product launches, strategic pivots, unexpected findings",
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      "evidence": "The deck presents a series of revelations about Forescout management's actions and statements.",
      "position": 0,
      "objective": "Reveal management's alleged inconsistencies and flaws",
      "structure": "Setup the Question -> Build Suspense -> The Big Reveal",
      "confidence": 0.8,
      "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion"
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