{
  "docId": "019dd923-622c-750b-8b99-856ed0788e9a",
  "docSlug": "40e9e62f0249",
  "documentTitle": "PowerSchool Holdings, Inc. (PWSC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-04-17 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 47,
  "pageCount": 117,
  "prevPage": 46,
  "nextPage": 48,
  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "overcrowded",
  "nDataPoints": 48,
  "notes": "Includes a bar chart of per-student expenditure and a table of expenditure distribution by functional area.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bar_chart_grouped",
    "data_table",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-856ed0788e9a/47",
  "deckHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a#slide-47",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.13,
        "x": 0.37,
        "y": 0.82
      },
      "kind": "callout",
      "text": "We have doubts India can support these economics.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c41280e1-4a3b-41a9-b043-0571602e36af",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe any significant expansion into India would present a meaningful risk to margin.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-fb92-756a-9da6-1412b3480fe9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.48,
        "x": 0.02,
        "y": 0.31
      },
      "kind": "chart",
      "text": "Figure 3.4: Per-student expenditure (₹) on school education by states",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0c473d48-16d4-4aa4-ac81-cf691e1d950d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.35,
        "x": 0.02,
        "y": 0.82
      },
      "kind": "list",
      "text": "Average recurring revenue per customer: ~$40k\nPricing based on student headcount; Average recurring revenue per student: ~$12",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "010ab503-a3ea-489d-a0dc-69c2daa878f6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "per-pupil education spending: $720",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-fb92-756a-9da6-1e8dc807a69f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "India has been one of the biggest targets for the Company. It recently expanded its selling operations in the country with a new office. Additionally, in Sept. 2023 PowerSchool announced the acquisition of Neverskip, an India-based school management system. The Company stated the acquisition was part of its “robust growth strategy” for India. We question the financial viability of meaningfully expanding in India due to its extremely low-level per-pupil education spending relative to the U.S.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d3195cc6-73aa-439b-bac6-82f651397711",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.48,
        "x": 0.51,
        "y": 0.65
      },
      "kind": "paragraph",
      "text": "Expenditures toward modernization, including spending on the establishment of information and communication technologies, are included in the ‘Quality’ spending category. Quality represents just 1-3% of education spending for most Indian states. The state of Himachal Pradesh, which has amongst the highest per student expenditures in India, was only able to support roughly US$ 7 for its entire technology spend per student in 2017-18. Currently, PWSC boasts an average revenue per student of $12, which is 171% more than Himachal Pradesh’s entire technology spend per student. We believe any significant expansion into India would present a meaningful risk to margin.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e9a81068-d748-4db0-bc8c-48aea7bf7af7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.48,
        "x": 0.02,
        "y": 0.65
      },
      "kind": "paragraph",
      "text": "Data from Accountability India shows that despite being amongst the highest spending states in India, at current FX rates, the 60k rupees per student that Himachal Pradesh spent in 2017-2018 only amounts to roughly US$ $720, a fraction of U.S. spending. On the low end of the spectrum, the state of Bihar spent roughly 10k rupees per student in 2017-2018, which amounts to just US$ 120.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fbfffa7d-2c07-49f7-8aa1-0281089fa32f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Data from Accountability India shows that despite being amongst the highest spending states in India, at current FX rates, the 60k rupees per student that Himachal Pradesh spent in 2017-2018 only amounts to roughly US$ $720, a fraction of U.S. spending.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-fb92-756a-9da6-1bc38fa2288f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.6,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: PowerSchool Investor Presentation (May 2023), Accountability India report, red box Spruce Point emphasis",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "85905987-d7c3-44c3-b2ce-0025b9565bd3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.48,
        "x": 0.51,
        "y": 0.31
      },
      "kind": "table",
      "text": "Table 6.2: Distribution of total school education expenditure across functional areas in 6 states",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bccd7768-973c-48cb-b5c5-2eacdde28916",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.6,
        "x": 0.33,
        "y": 0.03
      },
      "kind": "title",
      "text": "Education Spending In India Is Not Conducive To Profitable Growth",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8012d338-af56-45bd-b4f0-2a0d39eac090",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Table data",
      "slug": "table-data",
      "agent": null,
      "layer": "slide",
      "matchId": "7f49e113-fff8-42ab-9fea-1113f0908120",
      "evidence": "table/data: Table 6.2: Distribution of total school education expenditure across functional areas in 6 states",
      "confidence": 0.9
    }
  ],
  "frameworks": [],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}