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  "docSlug": "0a0319cd79cc",
  "documentTitle": "FIGS, Inc. (FIGS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-07 00:00:00",
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  "pageNumber": 9,
  "pageCount": 113,
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  "slideType": "villain_critique",
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  "nDataPoints": 3,
  "notes": "The slide uses anecdotal evidence from former employees and LinkedIn analysis to build a case against the company's leadership.",
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      "kind": "callout",
      "text": "We believe this creates material execution risks as the Company seeks to grow beyond its core market and geography.",
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      "text": "We are troubled that former employees have described the co-founders Hasson and Spear as \"unethical\" and \"distrustful\", and the culture as \"toxic\". Many former employees describe a culture of fear that lacked transparency.",
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      "text": "Finance function understaffed; no formal CFO/controller from early 2019 to Dec 2020 despite revenue scaling from $55M to $260M. Jeff Lawrence (CFO) departed after <1 year, forfeiting $6.6M. Replacement lacks public company CFO experience.",
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      "kind": "paragraph",
      "text": "Viewed in the context of exaggerated claims of financial performance, commentary indicating a low regard for the truth, and excessive employee turnover, we are particularly troubled by the history of turnover in the finance function at FIGS.",
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      "text": "In stark contrast to FIGS' carefully nurtured media image, feedback from former employees suggests FIGS' co-founders have created a dysfunctional culture that has resulted in high employee turnover.",
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      "text": "We are troubled that former employees have described the co-founders Hasson and Spear as \"unethical\" and \"distrustful\", and the culture as \"toxic\". — Former employees",
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      "kind": "title",
      "text": "Unusually High Turnover At FIGS, Notably In Its Finance Function",
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