{ "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": 64, "pageCount": 117, "prevPage": 63, "nextPage": 65, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "Uses a direct quote from the company's 10-K to highlight the discrepancy in risk disclosure.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-856ed0788e9a/64", "deckHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a#slide-64", "components": [ { "bbox": { "h": 0.072, "w": 0.984, "x": 0.008, "y": 0.303 }, "kind": "callout", "text": "PowerSchool’s risk section fails to mention SOPIPA’s prohibitions on building profiles on students and using a student's own data to target them with ads. We count 26 states with these prohibitions on the books.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2bcac919-5a0a-4594-b6f0-b9f3843f755f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "PowerSchool’s risk section fails to mention SOPIPA’s prohibitions on building profiles on students and using a student's own data to target them with ads.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-fb92-756a-9da7-e00569cdb245", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.092, "w": 0.964, "x": 0.018, "y": 0.175 }, "kind": "paragraph", "text": "PowerSchool mentions SOPIPA just once in its entire 10-K. Curiously, PowerSchool only mentions two states with data privacy laws aimed at K-12 students, California and Colorado. In reality, Spruce Point counts nearly 30 states with student data privacy laws on the books, including 26 states that specifically prohibit targeted advertising. We believe the Company’s disclosures understates the broader risk that SOPIPA presents to its business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6abb3aaf-e3d7-49c9-803b-ef08b2be66c8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Government regulation of education and student information is evolving, and unfavorable developments could have an adverse effect on our results of operations. For example, California adopted the Student Online Personal Information Protection Act which prohibits operators of online services used for K-12 school purposes from using or sharing student personal information and Colorado adopted House Bill 16-1423 designed to protect the use of student personal data in elementary and secondary school. These acts do not apply to general audience Internet websites but it is not clear how these acts will be interpreted and the breadth of services that will be restricted by them. Other states may adopt similar statutes. — PowerSchool FY23 10-K", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-fb92-756a-9da7-e60495860036", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.204, "x": 0.008, "y": 0.977 }, "kind": "source-note", "text": "Source: PowerSchool FY23 10-K", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aaa7f7b1-e846-4e14-bace-212e4863eadb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.312, "w": 0.984, "x": 0.008, "y": 0.387 }, "kind": "table", "text": "PowerSchool SOPIPA Disclosure Under Risks Related To Laws and Regulation FY23 10-K: Government regulation of education and student information is evolving, and unfavorable developments could have an adverse effect on our results of operations. “For example, California adopted the Student Online Personal Information Protection Act which prohibits operators of online services used for K-12 school purposes from using or sharing student personal information and Colorado adopted House Bill 16-1423 designed to protect the use of student personal data in elementary and secondary school. These acts do not apply to general audience Internet websites but it is not clear how these acts will be interpreted and the breadth of services that will be restricted by them. Other states may adopt similar statutes.”", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "35dd21a2-80f8-49b6-ab99-b4baf628c8e2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.056, "w": 0.633, "x": 0.333, "y": 0.033 }, "kind": "title", "text": "We Believe PowerSchool Understates Potential SOPIPA Risks", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eb164719-f45f-40f7-b1a5-0485c1c37882", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "c5f663fe-598f-48b8-ad45-815d5ce81169", "evidence": "Contrasts company disclosure text with external data points to expose risk underestimation.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }