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  "documentTitle": "MSCI Inc. (MSCI)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-01-17 00:00:00",
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  "notes": "The slide uses a red callout box to highlight the specific data point (Q2 2023 Non-Recurring revenue) and its impact on margins.",
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      "kind": "callout",
      "text": "Abnormally large \"Non-Recurring\" fees that suspiciously boosted index margins when they have struggled to increase",
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      "kind": "callout",
      "text": "Operating revenues from non-recurring revenues increased 48.7% for the six months ended June 30, 2023, primarily driven by one-time license fees related to prior periods, as well as non-recurring licensed data products.",
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      "text": "Index Adj. EBITDA margin: 159.8%",
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      "kind": "paragraph",
      "text": "Spruce Point is incredibly alarmed to see that MSCI could be playing with revenue recognition within its Index segment. For example, in Q2'23 the Company reported a 160% increase in non-recurring revenue.",
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      "text": "Operating revenues from non-recurring revenues increased 48.7% for the six months ended June 30, 2023, primarily driven by one-time license fees related to prior periods, as well as non-recurring licensed data products. — MSCI Q2 2023 Financial Disclosure",
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      "kind": "source-note",
      "text": "Source: MSCI financials and Spruce Point analysis",
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      "text": "MSCI Index Segment Reporting table showing revenue breakdown and margins from 2020 to Q3 2023.",
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      "text": "Strong Evidence of Revenue Quality Deteriorating",
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