{
  "docId": "019dd923-622c-750b-8b99-01417feb6214",
  "docSlug": "abcba68b252f",
  "documentTitle": "Magnite, Inc. (MGNI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 29,
  "pageCount": 54,
  "prevPage": 28,
  "nextPage": 30,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 24,
  "notes": "Uses red boxes to highlight declining growth rates and quotes from 10-K filings to emphasize the contradiction between seasonal expectations and actual performance.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-01417feb6214/29",
  "deckHref": "/decks/019dd923-622c-750b-8b99-01417feb6214",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-01417feb6214.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-01417feb6214#slide-29",
  "components": [
    {
      "bbox": {
        "h": 0.05,
        "w": 0.74,
        "x": 0.13,
        "y": 0.65
      },
      "kind": "callout",
      "text": "Continued revenue growth decline, notably in Q4 which has historically been the strongest quarter",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f50716b7-ca25-448f-b791-e809a7bfdecc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "YoY Growth: 5.7% - 10.1%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b3-7229-beed-29f2c32f2212",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "Investors should have little to cheer about in Magnite's recent guidance. If we pro forma historical results, we see that its recent Q4 revenue guidance is the lowest growth rate in three years. This is worrisome given that Q4 is typically the strongest quarter of the year for advertising spending. There is no evidence of accelerated pro forma growth.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fff01115-d6c1-4f5f-92ae-0622515e5642",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.4,
        "x": 0.55,
        "y": 0.75
      },
      "kind": "quote",
      "text": "Telaria: \"During the first quarter, advertisers generally devote less of their budgets to ad spending, with the fourth quarter generally representing the largest quarter of ad spending.\"",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "88b0c289-99f9-4f87-9535-426cee95d734",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.45,
        "x": 0.05,
        "y": 0.75
      },
      "kind": "quote",
      "text": "Rubicon: \"Our advertising spend, revenue, cash flow from operations... many buyers devote a disproportionate amount of their advertising budgets to the fourth quarter...\"",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e018d9d6-fb1e-4566-a40f-dc0d4400e227",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Rubicon: \"Our advertising spend, revenue, cash flow from operations, Adjusted EBITDA, operating results, and other key operating and financial measures may vary from quarter to quarter due to the seasonal nature of buyer spending. For example, many buyers devote a disproportionate amount of their advertising budgets to the fourth quarter of the calendar year to coincide with increased holiday purchasing.\" — Rubicon 10-K, p.14; Telaria: \"During the first quarter, advertisers generally devote less of their budgets to ad spending, with the fourth quarter generally representing the largest quarter of ad spending.\" — Telaria 10-K, p.21",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b3-7229-beed-25fbdd5cbe75",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.9,
        "x": 0.05,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: Telaria and Magnite filings, Spruce Point Analysis; Source: 10-K, p.14; Source: 10-K, p.21",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9156cb4f-4f26-4f1e-90ec-7cbeeee9ddf0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.9,
        "x": 0.05,
        "y": 0.33
      },
      "kind": "table",
      "text": "Historical and Projected Pro Forma Revenue Growth table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "72be51d0-20b4-4f29-a3ec-c15df190f329",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Pro Forma Combined Growth Continues To Decline...",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c814985b-3895-4f4f-95af-3f55953c1c8b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "6518fc51-d338-4092-ae3c-73c53635f60c",
      "evidence": "Contrasting company guidance with historical seasonal norms to expose performance decline.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 30,
      "from": 11,
      "beatId": "d95c99d7-6427-4986-9ca7-45de5267cebb",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "Slides 11-30 present evidence of Magnite's struggles with financial reporting, business performance, and management concerns.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}