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  "documentTitle": "Rollins Inc. (ROL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-10-04 00:00:00",
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  "notes": "The slide uses a table to contrast historical customer growth with the lack of churn reporting, juxtaposed against recent management quotes acknowledging churn as a focus area.",
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      "kind": "callout",
      "text": "Pest Industry Expert: \"Rollins has about 25% drop off and retains 75-78% on an annual basis.\"",
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      "text": "Rollins frequently cites the recurring nature of its revenues, but fails to provide regular updates about gross, net, or acquired customers.",
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      "text": "customer churn: 25%",
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      "text": "Rollins frequently cites the recurring nature of its revenues, but fails to provide regular updates about gross, net, or acquired customers. For subscription businesses, churn is an important metric.",
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      "text": "\"Rollins has about 25% drop off and retains 75-78% on an annual basis. 10-15% drop off in the first year. Door-to-door has a bigger drop off in year one. Rollins doesn't have as big of a drop off in year one, but does in year two and three.\" — Pest Industry Expert. \"So you can see that we certainly are successful at gaining share, and we're gaining share across our market. But also in addition to gaining share, our focus is reducing churn, reducing the churn we have in our business. And so we're focused on reducing churn because the less customers we lose, the less customers we need to add. And so that's certainly a focus for us.\" — Stifel Conf, June 2023. \"So churn and cross-sell are 2 really big important areas for us as we think about growing our business.\" — Wells Fargo Conf, June 2023.",
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      "kind": "source-note",
      "text": "1) An industry source that supplies software to pest control companies cites 22% annual attrition",
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      "text": "Table showing customer counts and churn discussion status across three time periods (2008-2018, 2019-June 2022, July 2022-Present).",
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      "text": "Rollins Doesn't Regularly Report Customers Or Churn. We Learned Its Churn Is Astronomical At 25%",
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