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  "docSlug": "0a0319cd79cc",
  "documentTitle": "FIGS, Inc. (FIGS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-07 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 82,
  "pageCount": 113,
  "prevPage": 81,
  "nextPage": 83,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 3,
  "notes": "The slide uses a 'red flag' visual metaphor to signal a warning about the company's financial disclosures.",
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      "kind": "callout",
      "text": "FIGS has repeatedly touted its declining customer acquisition cost (CAC). FIGS' stated definitions of Marketing expense and its calculation of CAC both account for the major components of Marketing expense: performance marketing and brand marketing. However, FIGS clearly excludes some Marketing expense from its CAC calculation.",
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      "kind": "callout",
      "text": "Why hasn't FIGS provided an update of this chart/data, even for FY 2021, in either its SEC filings or investor presentation.",
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      "kind": "chart",
      "text": "Customer Acquisition Cost chart showing decline from $101 (2018) to $73 (2019) to $39 (2020)",
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      "kind": "disclaimer",
      "text": "As we see on the following page, the marketing expense included in the FIGS CAC metric does not equal the reported line item. We are unable to find a clear definition, but we suspect the FIGS metric may exclude payroll expense.",
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      "kind": "paragraph",
      "text": "We define customer acquisition cost, or CAC, as performance and brand marketing expense attributable to both new customer acquisition and repeat customer retention in a period divided by the customers acquired during that same period.",
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      "kind": "paragraph",
      "text": "Marketing expenses consist primarily of online performance marketing costs... Marketing expenses also include our spend on brand marketing channels...",
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      "kind": "title",
      "text": "We Believe FIGS Has Touted Its Declining CAC Based On A Non-Transparent Definition Of Marketing Expenses",
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      "evidence": "The slide explicitly frames a discrepancy in financial reporting as a potential deception or lack of transparency.",
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