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  "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",
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  "pageNumber": 67,
  "pageCount": 127,
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  "density": "dense",
  "nDataPoints": 12,
  "notes": "Uses a dual-axis chart to show the divergence between absolute deferred revenue and its percentage of total search revenue.",
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  "slideHref": "/slides/019dd923-622c-750b-8b99-58801594b94c/67",
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      "kind": "callout",
      "text": "Revenue disclosure change",
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      "text": "We view this as a negative for its business.",
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      "kind": "chart",
      "text": "Deferred Revenue As A % of Search Revenue",
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      "text": "Deferred Revenue: 0.7%",
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      "kind": "paragraph",
      "text": "On November 2, 2020 Perion announced it renewed its strategic partnership with Microsoft for four years.(1) In 2022, 35% of revenues came from the Bing/Microsoft agreement. Deferred revenues are recorded when payments are received from customers in advance of PERI rendering its services. Receiving cash upfront is generally a positive for working capital. However, we observe that PERI's deferred revenue has been shrinking as a function of its growing search revenue. We view this as a negative for its business.",
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      "text": "Source: 6-K and 2022 20-F",
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      "text": "Search Revenue Recognition Disclosure comparing 2020 and 2023 disclosures.",
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      "kind": "title",
      "text": "Deferred Revenue Is Declining....",
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      "evidence": "Highlighting a change in revenue recognition disclosure to imply negative business health.",
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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.",
      "structure": "Premise 1 (Accepted truth) -> Premise 2 (Observed fact) -> Therefore... (Inevitable conclusion)",
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