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  "documentTitle": "Lightspeed Commerce, Inc. (LSPD)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-09-29 00:00:00",
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  "notes": "The slide uses red callouts and circles to highlight specific aggressive assumptions in the company's financial disclosures.",
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      "kind": "callout",
      "text": "Based on our research, including the expert employee interviews previously presented, we believe some of LSPD’s acquisitions didn't work out, were sunsetted, or failed to meet expectations. Yet, the Company has never taken a goodwill impairment charge. When we reviewed its testing policy, we believe we found unrealistic assumptions that would make it difficult to impair goodwill. For example, LSPD claims its \"perpetual growth rate\" is 35%, and that its growth rate actually increased during peak COVID-19 cases (March 2020 - March 2021). In our experience, we have never seen a company that can grow indefinitely at such a high rate of 30%+. In addition, its terminal multiple materially expanded from 4x to 14x.",
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      "text": "\"No reasonably possible change in key assumptions would result in goodwill impairment\" Really? What if LSPD's true organic growth rate were mid single digits?",
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      "text": "In our experience, we have never seen a company that can grow indefinitely at such a high rate of 30%+. In addition, its terminal multiple materially expanded from 4x to 14x.",
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      "text": "Perpetual Growth Rate: 35%",
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      "text": "No reasonably possible change in key assumptions would result in goodwill impairment — Lightspeed Commerce, Inc. FY 2021 Annual Report",
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      "text": "Source: FY 2021 Annual Report, p. 33 and FY 2020 Annual Report, p. 73",
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      "text": "Pre-tax discount rate 30%, Terminal Value Multiple 14, Perpetual Growth Rate 35%",
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      "text": "Pre-tax discount rate 28%, Terminal Value Multiple 4, Perpetual Growth Rate 30%",
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      "text": "Gaming The Impairment Testing?",
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