{ "docId": "019dd923-622c-750b-8b99-20e88bb14fbb", "docSlug": "f2d2846f5efe", "documentTitle": "Lightspeed Commerce, Inc. (LSPD)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-09-29 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 110, "pageCount": 125, "prevPage": 109, "nextPage": 111, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 3, "notes": "Uses a red flag icon to signal the contradiction.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "paragraph", "screenshot" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-20e88bb14fbb/110", "deckHref": "/decks/019dd923-622c-750b-8b99-20e88bb14fbb", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-20e88bb14fbb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-20e88bb14fbb#slide-110", "components": [ { "bbox": { "h": 0.12, "w": 0.91, "x": 0.07, "y": 0.16 }, "kind": "callout", "text": "CFO Nussey doesn't give a transparent answer when pressed for reasons why LSPD got better economics, and instead just says “benefits of scale”. Subsequent disclosures show that payment processors received a four year guaranteed minimum fee commitment. This creates a financial obligation and exposes LSPD if the business falls short of expectations. According to ShopKeep’s financials, prior contracts were structured annually.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b04b9713-a0fc-4c6d-b008-3eb92f42425f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "CFO Nussey doesn't give a transparent answer when pressed for reasons why LSPD got better economics, and instead just says \"benefits of scale\".", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64cf-7128-a320-209b070d0fb7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.84, "x": 0.14, "y": 0.29 }, "kind": "list", "text": "Analyst Tse Q4 2021 Conf Call: “On the ShopKeep and Upserve payment amendments, I just wanted to clarify, is it sort of largely the scale now of Lightspeed that allows you to sort of kind of get that bargaining power? Or is it kind of your relative operating prowess to sort of recognize that opportunity post those acquisitions that led to those amendments?”", "attrs": null, "subkind": "comparison", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d7b9feb-2249-4ee0-86e2-d56637086664", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.84, "x": 0.14, "y": 0.39 }, "kind": "list", "text": "CFO Nussey Q4 2021 Conf Call: “I think it is all of those things. If you think about how this naturally would play out, you’ve got a partner of those businesses who now gets the deal with a much larger entity where the greater opportunity is aggregating all these things together. So that creates opportunity for them/leverage for us, and then the conversation then into what's important to Lightspeed, what's important to our customers?”", "attrs": null, "subkind": "comparison", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de5d3d0c-d839-487a-86ad-8e752716592a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.84, "x": 0.14, "y": 0.5 }, "kind": "paragraph", "text": "ShopKeep Financials Disclose “Annual” Contracts: Processing revenue — primarily consists of referral fee arrangements with third-party payment processors, which are generally annual contracts.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "adfc758e-1922-4c0c-a2d6-91b7b21e5331", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.84, "x": 0.14, "y": 0.71 }, "kind": "paragraph", "text": "Details Disclosed Next Quarter Show a Four Year Minimum Fee Contract: We renegotiated certain contracts with payments processors which include minimum fee commitments of $41.8 million over the next four fiscal years to secure improved economics for the Company’s payments offerings.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c4298913-43f6-4b6c-a63f-462fcbdef2ee", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"On the ShopKeep and Upserve payment amendments, I just wanted to clarify, is it sort of largely the scale now of Lightspeed that allows you to sort of kind of get that bargaining power? Or is it kind of your relative operating prowess to sort of recognize that opportunity post those acquisitions that led to those amendments?\" — Analyst Tse, Q4 2021 Conf Call; \"I think it is all of those things. If you think about how this naturally would play out, you've got a partner of those businesses who now gets the deal with a much larger entity where the greater opportunity is aggregating all these things together. So that creates opportunity for them/leverage for us, and then the conversation then into what's important to Lightspeed, what's important to our customers?\" — CFO Nussey, Q4 2021 Conf Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64cf-7128-a320-2498d68760b8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.31, "y": 0.04 }, "kind": "title", "text": "CFO Gives Vague And Potentially Misleading Answers To Contract Amendments", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "58bb08e8-4aec-471a-9455-4a22fb051dbf", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "78c851a3-b867-4fe7-b8d9-cb2844294ea9", "evidence": "Contrasts CFO verbal response with written financial disclosures.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }