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  "documentTitle": "Zebra Technologies Corp. (ZBRA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-08-08 00:00:00",
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      "text": "Management touted Antuit as a \"high-margin SaaS business\" with revenue growth that doubled over a 3-year period. However, after obtaining Antuit's financial statements, we observe that revenue growth flat-lined in the year leading up to the acquisition, and its gross margin at 46.7% is wildly below the 70%-80% margins of typical SaaS companies.",
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      "text": "Revenue: Growth flat-lined from 2020 to 2021 leading into the acquisition. Gross Margin: While margins expanded from 41.1% to 46.7%, for mature SaaS companies margins range from 70%-80%. Operating Margin: 6.5% and 11.7% EBIT and EBITDA margin are below Zebra's 17.4% and 23% consolidated margins.",
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      "text": "gross margin: 46.7%",
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      "kind": "paragraph",
      "text": "On October 7, 2021, Zebra acquired Antuit Holdings Pte. Ltd... Zebra paid 5.3x and 26x revenues and EBITDA, respectively for Antuit.",
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      "kind": "quote",
      "text": "In October, we acquired Antuit for approximately $145 million... This high-margin Software as a Service business generated sales of approximately $27 million in 2020, nearly doubling over a 3-year period.",
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      "kind": "quote",
      "text": "\"In October, we acquired Antuit for approximately $145 million to further advance our Enterprise Asset Intelligence vision. This high-margin Software as a Service business generated sales of approximately $27 million in 2020, nearly doubling over a 3-year period.\" — CEO Gustafsson, Q3'21 Conf. Call, November 2, 2021",
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      "kind": "source-note",
      "text": "Source: Singapore corporate registry, Q3'21 Conf Call, Antuit Raises $65m Led by Goldman Sachs, SaaS Gross Margin Benchmark, Spruce Point Research",
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      "kind": "table",
      "text": "Antuit Holdings Pte. Ltd. Financials",
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      "kind": "title",
      "text": "Antuit Acquisition Also Looks Troubled",
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