{
  "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": 49,
  "pageCount": 54,
  "prevPage": 48,
  "nextPage": 50,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 32,
  "notes": "Uses visual metaphors (golden goose vs. dog) to contrast company performance.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-01417feb6214/49",
  "deckHref": "/decks/019dd923-622c-750b-8b99-01417feb6214",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-01417feb6214.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-01417feb6214#slide-49",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.9,
        "x": 0.05,
        "y": 0.16
      },
      "kind": "callout",
      "text": "Both Needham and management try to perpetuate a connection to The Trade Desk, but their financial performance is diverging, not converging.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4117d44a-4d67-4183-9e6e-e703da71efc2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "While TTD is the golden goose, MGNI is a dog.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b3-7229-beee-e0384cc4afc7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "YoY Growth YTD: -127%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b3-7229-beee-ea7998bd5637",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.79,
        "x": 0.16,
        "y": 0.38
      },
      "kind": "paragraph",
      "text": "Given its resounding success and commanding 33x EV/NTM revenue valuation, Magnite's CEO would like investors to believe it will be the next Trade Desk (TTD). However, the financials speak differently. Our analysis shows that TTD revenues and CFO are +16% and +169% YTD, respectively. Conversely, Magnite's revenues and Adjusted CFO are -1% and -127% YTD. While TTD is the golden goose, MGNI is a dog.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a9c1b276-a799-4672-b049-7b30c74b7264",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.79,
        "x": 0.16,
        "y": 0.25
      },
      "kind": "quote",
      "text": "But we think the combination of the 2 companies, plus our road map, plus our product strategy, will allow us to break through the pack much like Trade Desk did, and put us in a position to be the dominant independent scaled player on the SSP side.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "299033bb-b9a8-4db8-9ba3-cf0520a1f0d3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "But we think the combination of the 2 companies, plus our road map, plus our product strategy, will allow us to break through the pack much like Trade Desk did, and put us in a position to be the dominant independent scaled player on the SSP side. — Magnite CEO, Needham Conf May 19, 2020",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b3-7229-beee-e504f30472b7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.3,
        "x": 0.05,
        "y": 0.87
      },
      "kind": "source-note",
      "text": "Source: Company financials and Spruce Point Analysis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e78ba125-4f12-45a5-8660-8392648d0b20",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.28,
        "w": 0.9,
        "x": 0.05,
        "y": 0.55
      },
      "kind": "table",
      "text": "YTD Comparison of Trade Desk and Magnite",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5c6c4421-d74a-4b87-bc35-ddd404924b85",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.38,
        "x": 0.31,
        "y": 0.04
      },
      "kind": "title",
      "text": "TradeDesk vs. Magnite",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1a054ff9-8ade-4a94-b5c5-c224b83e9512",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "a61754bd-cab4-4482-9eed-3dc36436a2c7",
      "evidence": "Contrasts CEO quote with actual financial data",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 54,
      "from": 31,
      "beatId": "00fa8797-fade-47ec-8b08-4ad6f6b79f6f",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "Slides 31-54 present the 'victory' of Spruce Point's thesis, with a clear conclusion of significant downside risk for Magnite (MGNI).",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 50,
      "from": 45,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "1b6fdb3a-5f18-4c06-850e-422cbd523fb3",
      "evidence": "Slides 45-50 present evidence of poor risk/reward and the need for investors to take action.",
      "position": 1,
      "objective": "Highlight the cost of inaction for investors, emphasizing the need for a decision.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}