{
  "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": 87,
  "pageCount": 117,
  "prevPage": 86,
  "nextPage": 88,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "The slide uses a comparison table to show how the company changed its reporting methodology, implying potential pressure from investors.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-856ed0788e9a/87",
  "deckHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-856ed0788e9a#slide-87",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We wonder if the Company was pressured by an investor to provide more details.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-64d2-7657-bbe9-9350ddce5844",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "capital expenditures: $45 million to $52 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-64d2-7657-bbe9-9a1cf267fc07",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Perhaps Spruce Point isn't the only one concerned with PowerSchool aggressive use and treatment of capitalized software development costs. The Company previously completely ignored these costs in its guidance for capital expenditures. It wasn't until recently that it started providing full year capital expenditure guidance including capitalized software. We wonder if the Company was pressured by an investor to provide more details.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "74ae9fa3-ba53-47ad-92f1-ee2d536c6d31",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "For modeling purposes, we expect capital expenditures, excluding capitalized software of approximately $5 million to $8 million and share-based compensation expense of approximately $70 million for the full year. Fully diluted shares by the end of the year are expected to be in the range of 200 million to 205 million shares.. — PowerSchool 2021-2022 Guidance",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-64d2-7657-bbe9-97aadb292700",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Q4'22 and Q1'23 Conference Calls",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ffdca66e-e958-42b2-8d43-07502ff6b155",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.6,
        "w": 0.96,
        "x": 0.02,
        "y": 0.31
      },
      "kind": "table",
      "text": "2021 - 2022: we expect capital expenditures, excluding capitalized software of approximately $5 million to $8 million... Starting Q1 2023: we expect full year capital expenditures, including capitalized software, of approximately $45 million to $52 million",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8e9220e1-4e7a-43d7-a521-a4e4efd0927a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "PowerSchool Recently Changed Its Guidance Practice Around Capitalized Development Costs",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6f26593f-563c-4757-83b2-c528b4d83d86",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "expose_contradiction",
      "slug": null,
      "matchId": "52a10907-9095-46c3-b3b3-ac747a76241a",
      "evidence": "The slide explicitly contrasts two different guidance methodologies to suggest a change in behavior.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}