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  "docSlug": "9c995cfa26e4",
  "documentTitle": "Porch Group Inc (PRCH)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-04-08 00:00:00",
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      "kind": "callout",
      "text": "We believe the best valuation comparable to Porch is The Active Network, which was acquired by Vista Equity in 2013 for $1.05bn, or approximately 2x EV/Revenues. Porch's CEO Matt Ehrlichman was the Chief Strategy Officer at the Company. We believe he's implemented a nearly identical business strategy at Porch. Porch does not generate any positive operating cash flow and has negative EBITDA, whereas Active had positive EBITDA and projected free cash flow. As a result, we fail to see why any strategic or financial buyer would pay more than 2x projected revenues for Porch.",
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      "kind": "callout",
      "text": "We believe the best valuation comparable to Porch is The Active Network, which was acquired by Vista Equity in 2013 for $1.05bn, or approximately 2x EV/Revenues.",
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      "text": "EV / Revenue: 2x",
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      "text": "Source: Active Fairness Opinion and Deal Announcement",
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      "kind": "table",
      "text": "The Active Network Deal Valuation From Management Projections",
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      "kind": "title",
      "text": "What's Porch Really Worth? Not Much If You Believe The CEO Has Created ACTV 2.0",
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      "evidence": "Compares Porch to Active Network to establish a valuation ceiling.",
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      "name": "Cost Of Inaction",
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      "evidence": "The deck presents a clear and detailed valuation and downside case for Porch",
      "position": 2,
      "objective": "to present a valuation and downside case",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.8,
      "description": "Quantify what happens if the audience does nothing"
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