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  "documentTitle": "Magnite, Inc. (MGNI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
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  "pageNumber": 53,
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  "notes": "The table highlights Magnite's 23.9% sales growth and 13.6x forward sales multiple compared to peer averages.",
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      "text": "Yet, MGNI trades at a lofty 13.6x forward sales vs. 8.0x peers.",
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      "text": "forward sales multiple: 13.6x",
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      "text": "Despite all of our concerns, including evidence that Magnite exaggerates its opportunities, and has failed to deliver on any of its sustainable growth goals, and has financial control issues, Magnite’s share trade at a premium to its technology service peers. We believe MGNI’s 2021E sales growth expectation of 23.9% is illusory, as it masks inorganic contribution from an inaccurate 2020 apples-to-apples sales base. Yet, MGNI trades at a lofty 13.6x forward sales vs. 8.0x peers. MGNI has also not demonstrated an ability to generate cash flow.",
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      "kind": "source-note",
      "text": "Source: Company financials, Bloomberg consensus estimates",
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      "kind": "title",
      "text": "Expensive To Peers With No Added Growth Or Demonstrated Cash Flow",
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      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
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      "evidence": "Slides 31-54 present the 'victory' of Spruce Point's thesis, with a clear conclusion of significant downside risk for Magnite (MGNI).",
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