{
  "docId": "019dd923-622c-750b-8b99-58801594b94c",
  "docSlug": "9551be67f14d",
  "documentTitle": "Perion Network Ltd. (PERI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-05-23 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 101,
  "pageCount": 127,
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  "nextPage": 102,
  "slideType": "preempt_rebuttal",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 48,
  "notes": "The slide highlights the lack of transparency regarding the breakdown of retention payments versus transaction costs.",
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  "slideHref": "/slides/019dd923-622c-750b-8b99-58801594b94c/101",
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      "kind": "callout",
      "text": "30% of adjustments are M&A-related",
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      "text": "Non-GAAP Adj. EPS: -10%",
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      "kind": "paragraph",
      "text": "Perion's Non-GAAP EPS and EBITDA ignores M&A and retention costs. The Company implicitly tells investors that it should receive all the benefits from its acquisitions, but should ignore all the costs associated with them. The most egregious add-back is the retention payments, which are cash costs associated with regular employment of workers. Perion does not disclose the break-down between retention payments and actual M&A transaction costs.",
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      "kind": "source-note",
      "text": "Source: Perion 2021 and 2022 Earnings Announcements",
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      "kind": "table",
      "text": "Spruce Point vs. Perion Adjusted Results Involving M&A Retention Costs And Expenses",
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      "kind": "title",
      "text": "We Believe Earnings And EBITDA Are Much Lower When Factoring In Abnormally High M&A Costs",
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      "evidence": "Exposing misleading accounting practices (add-backs) to reveal lower actual earnings.",
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      "arcName": "Overcoming the Monster",
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      "beatName": "Expose Contradiction",
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      "evidence": "The deck spends most of its pages exposing contradictions and inconsistencies in PERI's financials, partnerships, and growth story.",
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      "name": "Logic Chain",
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      "evidence": "The deck presents a series of logical and coherent arguments to build a case against PERI.",
      "position": 0,
      "objective": "To present a logical chain of evidence and reasoning to support the conclusion of significant downside risk to PERI's share price.",
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