{
  "docId": "019dd923-622c-750b-8b99-daa7bab7aec2",
  "docSlug": "f687a225f056",
  "documentTitle": "Enfusion, Inc. (ENFN)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-03-14 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 20,
  "pageCount": 30,
  "prevPage": 19,
  "nextPage": 21,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 20,
  "notes": "The slide uses a table to perform a forensic accounting reconciliation to expose a gap in the company's reported figures.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-daa7bab7aec2/20",
  "deckHref": "/decks/019dd923-622c-750b-8b99-daa7bab7aec2",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-daa7bab7aec2.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-daa7bab7aec2#slide-20",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "ENFN claims that managed service revenue increased by $1.6 million from new clients and $2.7 million from existing clients, offset by churn (which is not quantified) for a total of $4.3 million. However, total segment revenue only increased by $2.7 million. Therefore, we estimate revenue lost from churn to be ~$1.6 million.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-78b5-7512-b5b6-f1c37e8ced9a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Managed Service Revenue: $1.6 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-78b5-7512-b5b6-f518a7f4e531",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.96,
        "x": 0.02,
        "y": 0.87
      },
      "kind": "paragraph",
      "text": "ENFN claims that managed service revenue increased by $1.6 million from new clients and $2.7 million from existing clients, offset by churn (which is not quantified) for a total of $4.3 million. However, total segment revenue only increased by $2.7 million. Therefore, we estimate revenue lost from churn to be ~$1.6 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "538a5dc7-d7eb-4087-8c87-8414be62cff6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Enfusion's discussion of Managed Service revenue drivers in 2022 is concerning. Enfusion did not quantify revenue lost from churn, but we estimate it to be at least $1.6 million or the same amount it gained from new clients.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ff0d7a3c-8478-4b27-a790-1bd50709dcc7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.35,
        "x": 0.02,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: ENFN SEC filings for each quarterly MD&A discussion",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "efa9b233-32d7-4e4c-b3ff-5e895e80d988",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.96,
        "x": 0.02,
        "y": 0.29
      },
      "kind": "table",
      "text": "Quarterly breakdown of net new clients and revenue drivers vs total revenue increase.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "70747b97-4cba-49cd-a952-d30d2d8003e0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.68,
        "x": 0.28,
        "y": 0.02
      },
      "kind": "title",
      "text": "Drivers of Managed Service Revenue In 2022 Also Don't Add Up",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "640bc0e9-6e88-4dcb-8364-9aa93b5d24d9",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "c457749d-c98f-4bba-877c-cc6a0560f3a6",
      "evidence": "The slide explicitly calculates a discrepancy in reported revenue to imply unquantified churn.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 24,
      "from": 6,
      "beatId": "ff173595-a0f2-4fdc-9ee5-0a9599b29cac",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document highlights multiple contradictions and concerns over Enfusion's financials and growth strategy",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}