{ "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": 63, "pageCount": 125, "prevPage": 62, "nextPage": 64, "slideType": "testimonial", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a red flag icon to signal a warning or red flag regarding the company's financial reporting (impairment charges).", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-20e88bb14fbb/63", "deckHref": "/decks/019dd923-622c-750b-8b99-20e88bb14fbb", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-20e88bb14fbb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-20e88bb14fbb#slide-63", "components": [ { "bbox": { "h": 0.12, "w": 0.89, "x": 0.08, "y": 0.19 }, "kind": "callout", "text": "Spruce Point spoke with a front-line former employee who had been with the company for over 5 years and was at the Company through approximately 7 of the earlier acquisitions. He offered his insights that some of the early acquisitions had challenges and are being replaced with new acquisitions. We believe this is evidence that some acquisitions should have their goodwill and intangibles impaired. However, LSPD has failed do take any impairment charges.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "45a306d3-c87e-4b1a-8011-9ae794ceddc7", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "We believe this is evidence that some acquisitions should have their goodwill and intangibles impaired. However, LSPD has failed do take any impairment charges.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64cf-7128-a31b-ca7164001b10", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.85, "x": 0.12, "y": 0.77 }, "kind": "quote", "text": "My biggest fears about their very aggressive M&A strategy is integrating these companies, not only the financials but integrating systems and how they are going to support all these different products. It is just too much. With all the acquisitions they probably have 6 restaurant POS offerings. It's just not scalable.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4af891aa-0e6b-4f4d-a0bf-8471cafedbd3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.85, "x": 0.12, "y": 0.35 }, "kind": "quote", "text": "From a product and tech perspective, I was very concerned with a few of the earlier acquisitions. Lightspeed e-commerce was a very challenging product and very difficult to onboard. Shopify's claim to fame is to have your e-commerce shop up and running within minutes, for Lightspeed its not the same. I have been trying to understand strategically how all their acquisition fit together, especially the more recent ones. Ecwid rang one of the biggest bells for me and I would be willing to bet Ecwid is to become their new e-commerce solution and they will probably write off the SEOshop acquisition. SEOshop was a great option at the time but it was a European solution and not optimized for an American option... They have made it clear they are going after Shopify in a big way and its clear SEOshop is not going to be the solution.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "59a6a04d-5b6b-4cb4-9f4e-b653ffdd8a1b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.85, "x": 0.12, "y": 0.61 }, "kind": "quote", "text": "ReUp acquisition has very similar challenges to SEOshop. The biggest challenge was ReUp was a loyalty program for the hospitality space. The most attractive thing about ReUp was being able to sell loyalty plans to retailers. The challenges are in retail the types of loyalty programs they use are very different from what you would see in a café for example. What was more difficult than people thought was taking a platform that already existed and having to rebuild it.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ec30f39d-949e-499f-a1cc-6fd9d9d802f4", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "From a product and tech perspective, I was very concerned with a few of the earlier acquisitions. Lightspeed e-commerce was a very challenging product and very difficult to onboard. ... Ecwid is to become their new e-commerce solution and they will probably write off the SEOshop acquisition. ... ReUp acquisition has very similar challenges to SEOshop. ... My biggest fears about their very aggressive M&A strategy is integrating these companies, not only the financials but integrating systems and how they are going to support all these different products. It is just too much. With all the acquisitions they probably have 6 restaurant POS offerings. It’s just not scalable. — Former Employee >5yrs With Lightspeed", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64cf-7128-a31b-cec48eaca5d4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.28, "y": 0.04 }, "kind": "title", "text": "Insights From A Former Employee #1 About Acquisitions", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4011cd79-cad2-4346-8477-fc2f33ed08f8", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "a1432fec-47ef-4496-93d7-e7aba01a29f7", "evidence": "The slide explicitly links employee testimony to the failure to take impairment charges, suggesting financial misrepresentation.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }