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  "documentTitle": "PowerSchool Holdings, Inc. (PWSC)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-04-17 00:00:00",
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  "notes": "The slide argues that PowerSchool's capitalization practices inflate Adj. EBITDA and suggests a more conservative approach for comparability.",
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      "text": "If PowerSchool capitalized software development costs at the industry average of 3.7%, that would lead to a $23 million difference in Adj. EBITDA.",
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      "text": "Adj. EBITDA: $231,938",
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      "text": "If PowerSchool capitalized software development costs at the industry average of 3.7%, that would lead to a $23 million difference in Adj. EBITDA. To address this, Spruce Point believes investors should take an even more conservative approach when evaluating the Company's financials and subtract all capitalized software development expenses from Adj. EBITDA to give it a higher level of comparability across companies.",
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      "text": "Source: Spruce Point Research\nNote: 2023 amortization of capitalized product development costs was $30.4M",
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