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  "docSlug": "abcba68b252f",
  "documentTitle": "Magnite, Inc. (MGNI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
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  "nDataPoints": 12,
  "notes": "Uses side-by-side comparison of earnings releases and presentation tables to show manipulation of 'Cash Flow' definition.",
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      "text": "Under the old method, Free Cash Flow in Q4'18 would have been -$8.0m instead of +$2.1m as depicted.",
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      "text": "Rubicon Project Reports Fourth Quarter 2018 Results",
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      "text": "Rubicon Project Reports Fourth Quarter 2019 Results",
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      "text": "Free Cash Flow: -$8.0m",
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      "text": "Spruce Point always warns investors to be careful when key disclosures disappear, and when definitions to key metrics change. We observe that Rubicon ceased disclosing quarterly “Advertising Spend” and its “Take Rate”, both key drivers of revenue. In addition, it changed the definition of “Cash Flow” to substitute CFO with Adjusted EBITDA. Naturally, in the following quarter “Cash Flow (ex: working capital charges) appeared positive. Under the old method, Free Cash Flow in Q4’18 would have been -$8.0m instead of +$2.1m as depicted.",
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      "text": "Source: Q4 2018 presentation",
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      "text": "Source: 2019 earnings release",
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      "kind": "source-note",
      "text": "Source: Q3 2018 presentation",
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      "text": "Source: 2018 earnings release",
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      "kind": "title",
      "text": "Evidence Rubicon's Business Has Been Under Pressure Pre-Merger",
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      "evidence": "Highlights manipulation of financial metrics and definitions to mislead investors.",
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      "to": 30,
      "from": 11,
      "beatId": "d95c99d7-6427-4986-9ca7-45de5267cebb",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
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      "evidence": "Slides 11-30 present evidence of Magnite's struggles with financial reporting, business performance, and management concerns.",
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