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  "documentTitle": "MSCI Inc. (MSCI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-01-17 00:00:00",
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  "notes": "Uses a table to contrast actual performance against qualitative claims from Barclays and RCA deal calls.",
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      "text": "MSCI and analysts talked up RCA's mid-to-high teens revenue growth and high and improving renewal rates. However, within a year after the acquisition, the evidence points to substantially lower revenue growth and MSCI stopped reporting RCA's Run-Rate revenue.",
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      "text": "RCA Run-Rate Revenue: -6.6%",
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      "text": "MSCI and analysts talked up RCA's mid-to-high teens revenue growth and high and improving renewal rates. However, within a year after the acquisition, the evidence points to substantially lower revenue growth and MSCI stopped reporting RCA's Run-Rate revenue.",
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      "kind": "quote",
      "text": "The pros of acquiring RCA are exemplified by its revenue primarily being subscription based, with 90%+ renewal rates (and improving). Additionally, we believe its mid-to-high teens revenue growth has accelerated over the last two years",
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      "kind": "quote",
      "text": "We have a strong conviction in our ability to create incremental value from this combination and are raising our long-term target for real state revenue growth to the high-teens from the mid-teens percentage range.",
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      "text": "\"The pros of acquiring RCA are exemplified by its revenue primarily being subscription based, with 90%+ renewal rates (and improving). Additionally, we believe its mid-to-high teens revenue growth has accelerated over the last two years - despite the pandemic and challenges facing the CRE industry\" — Barclays Capital, Aug 2, 2021; \"We have a strong conviction in our ability to create incremental value from this combination and are raising our long-term target for real state revenue growth to the high-teens from the mid-teens percentage range.\" — RCA Deal Call, Aug 2, 2021",
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      "kind": "source-note",
      "text": "Source: MSCI SEC filings and investor presentations. 1) Estimated quarterly revenue grossed-up based on $3.4m of disclosed RCA revenue from 9/13/21 – 9/30/21 or ~20% of the quarter",
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      "kind": "table",
      "text": "RCA Revenue Growth table showing quarterly metrics from 2021 Q1 to 2022 Q4",
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      "kind": "title",
      "text": "RCA's Growth Appears To Be Missing Its Target",
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