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  "docSlug": "cce862680d4f",
  "documentTitle": "Heska Corporation (HSKA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-10-25 00:00:00",
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  "pageNumber": 62,
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  "notes": "Uses a red flag icon to highlight the contradiction in data. Includes a detailed cohort analysis table and a summary comparison table.",
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      "kind": "callout",
      "text": "Conflicting Analysis: By calculating predicted subscription months assuming 0% and 100% cohort renewals versus actuals, we estimate that Heska retention rates were materially lower than the \">95%\" the Company quotes.",
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      "kind": "callout",
      "text": "Heska has repeatedly stated that subscription renewal rates are greater than 95%. However, based on our analysis of predicted subscription month growth under 0% and 100% renewal scenarios for cohorts rolling off existing plans, we believe Heska subscription retention is materially lower than Company guidance.",
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      "kind": "callout",
      "text": "By calculating predicted subscription months assuming 0% and 100% cohort renewals versus actuals, we estimate that Heska retention rates were materially lower than the “>95%” the Company quotes.",
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      "kind": "metric",
      "text": "retention rate: 77%",
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      "kind": "paragraph",
      "text": "Since Heska does not disclose subscription retention by year, we attempted to infer renewal rates by analyzing predicted subscription months under 0% and 100% renewal scenarios.",
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      "kind": "source-note",
      "text": "Source: Heska press releases dated 2/23/21",
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      "text": "Comparison table of predicted vs actual subscription months and implied renewal rates.",
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      "text": "Cohort analysis table showing active subs, growth, and subscription months by year.",
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      "kind": "title",
      "text": "Heska's Subscription Data Suggests Retention Rates Materially Lower Than Guidance",
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      "name": "Cost Of Inaction",
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