{
  "docId": "019dd923-622c-750b-8b99-4706c419301b",
  "docSlug": "a2803989ab19",
  "documentTitle": "Broadridge Financial Solutions, Inc. (BR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-28 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 52,
  "pageCount": 81,
  "prevPage": 51,
  "nextPage": 53,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "Uses a red box and arrow to highlight the specific contradiction between the 100% recurring revenue claim and the analyst's report.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "comparison_table",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-4706c419301b/52",
  "deckHref": "/decks/019dd923-622c-750b-8b99-4706c419301b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-4706c419301b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-4706c419301b#slide-52",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "BR paid €2.14 (~$2.58 billion) for Itiviti, placing a 10x multiple on its €210 million of sales and increasing debt by $2.1 billion while pushing its leverage ratio from approximately 1.5x to 3.6x.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2040-777a-854e-6e28164a3015",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Recurring Revenue Mix: 100%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2040-777a-854e-74165166c448",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.84,
        "x": 0.08,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "BR paid €2.14 (~$2.58 billion) for Itiviti, placing a 10x multiple on its €210 million of sales and increasing debt by $2.1 billion while pushing its leverage ratio from approximately 1.5x to 3.6x.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "96a38068-e9d9-47b8-bf26-711583013a41",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"And so first of all, on the subscription model, these contracts are relatively short-term. They're not pure evergreen, but they're generally 1 to 2 years. So they roll over pretty frequently, and that's actually helpful to us in terms of some of the accounting issues.\" — CEO on Itiviti. \"Over 90% of the group's revenue is derived from software subscriptions (recurring revenue base). These typically auto-renew, but often do not exceed 12 months (except for the connectivity segment), exposing the group to the risk of nonrenewal on an annual basis, while notice periods can be as short as one month in the network segment.\" — Moody's Credit Analyst Opinion, April 9, 2021.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-2040-777a-854e-702272ed91b1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.2,
        "x": 0.08,
        "y": 0.93
      },
      "kind": "source-note",
      "text": "Source: BR Presentation, March 29, 2021",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6f3fe5cb-956a-4553-8cd2-bfc73d88a520",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.44,
        "x": 0.48,
        "y": 0.35
      },
      "kind": "table",
      "text": "CEO vs Moody's Credit Analyst opinion comparison.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "12760f89-c1ae-41ea-89ef-df8676c625a8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.36,
        "x": 0.08,
        "y": 0.45
      },
      "kind": "table",
      "text": "Broadridge vs Itiviti metrics table showing Recurring Revenue Mix, Organic Growth, and Operating Margin.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f444a13f-78fc-4699-997b-7e42612dad8e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.4,
        "x": 0.31,
        "y": 0.05
      },
      "kind": "title",
      "text": "Evidence BR Is Exaggerating Itiviti",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0f85c510-d9d9-48dd-841f-2a10c836b6ab",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "e77b6f2c-f18e-44e5-a3b4-49d815de6548",
      "evidence": "Direct juxtaposition of CEO claim vs analyst report",
      "confidence": 1
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}