{
  "docId": "019dd923-622c-750b-8b99-2f79335352dd",
  "docSlug": "81a891429a42",
  "documentTitle": "Super Micro Computer, Inc. (SMCI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-01-10 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 15,
  "pageCount": 36,
  "prevPage": 14,
  "nextPage": 16,
  "slideType": "comparison_table",
  "function": "analyze_data",
  "density": "overcrowded",
  "nDataPoints": 99,
  "notes": "The table highlights the discrepancy between GAAP/Non-GAAP income and actual cash flow, specifically calling out 'Advancement' as a pull-forward of cash.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-2f79335352dd/15",
  "deckHref": "/decks/019dd923-622c-750b-8b99-2f79335352dd",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-2f79335352dd.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-2f79335352dd#slide-15",
  "components": [
    {
      "bbox": {
        "h": 0.55,
        "w": 0.09,
        "x": 0.9,
        "y": 0.35
      },
      "kind": "callout",
      "text": "$27.4bn of sales, $1.0bn of Net Income, Warning New Pull Forward of Cash, $164m of Adj CFO, -$142m of Free Cash Flow",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a407f629-a598-4970-bae2-5873aa8d8db9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point doesn't believe that SMCI is a high-quality company and that investors should not chase its revenue growth.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-14d8-75c0-8c89-f94cd11f4906",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Adjusted Free Cash Flow: -$142m",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-14d8-75c0-8c8a-00ff59f93590",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Spruce Point doesn't believe that SMCI is a high-quality company and that investors should not chase its revenue growth. Its cash flows are irregular and lumpy, and conversion from net income is terrible. Debt dependency is also rising.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "29a943d4-6cfa-4c20-adf7-7b1ac1e5bd5e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“$69.6 million was due to the increase in non-cancellable non-refundable advance consideration or cash consideration received from customers which preceded the Company's satisfaction of the associated performance obligations relating to product sales expected to be fulfilled in the next 12 months.” — SMCI 10-Q",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-14d8-75c0-8c89-fdb400a4f6dc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.96,
        "x": 0.02,
        "y": 0.92
      },
      "kind": "source-note",
      "text": "Source: SMCI SEC filings and Spruce Point Analysis (1) Per the recent 10-Q, p. 9 “$69.6 million was due to the increase in non-cancellable non-refundable advance consideration...",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a8a3f60b-a51d-4ed9-8e2b-ed5a86b4a67a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.88,
        "x": 0.02,
        "y": 0.35
      },
      "kind": "table",
      "text": "Financial performance table from 2015 to Q1'23",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "740ccbd3-4248-45d6-9816-b1936e2aa2fc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.45,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "In The Long Run.... Revenue Growth = No Free Cash Flow",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a016ff2a-334e-4cc4-9150-e5185b7f1ac0",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "ac741572-155f-4ad2-854d-b2a027449c4b",
      "evidence": "Highlighting cash flow manipulation and revenue quality issues",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 6,
      "beatId": "fb4f2331-b59b-4508-9091-4407fae41e4d",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "Detailed critique of SMCI's financials and business practices",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}