{ "docId": "019dd923-622c-750b-8b9a-2a2468219173", "docSlug": "ce565b841c40", "documentTitle": "Nevro Corp. (NVRO)", "authorId": "58_Scorpion_Capital", "authorName": "Kir Kahlon", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-01-07 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 174, "pageCount": 239, "prevPage": 173, "nextPage": 175, "slideType": "villain_critique", "function": "name_villain", "density": "overcrowded", "nDataPoints": 7, "notes": "Features highlighted text blocks in yellow to emphasize critical quotes from former executives.", "elementsJson": [ "headline_text", "paragraph", "bullet_list", "quote_block", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-2a2468219173/174", "deckHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-2a2468219173#slide-174", "components": [ { "bbox": null, "kind": "callout", "text": "They move some people in, move some people out, but at the end of the day, they really control cost. They don't really add true value and that's kind of how I see Grossman.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3d-76db-b346-436f509c182d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.88, "x": 0.06, "y": 0.77 }, "kind": "list", "text": "He believes that there’s “no long term plan there” and that Grossman was looking for a quick flip", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "03b27f2b-9a3f-4cea-ad9c-8e0bd79a7386", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.88, "x": 0.06, "y": 0.38 }, "kind": "list", "text": "The former executive believes that Grossman doesn't understand the SCS market; that the lack of growth under his tenure is underwhelming and \"crazy\" given the massive salesforce expansion; and that Grossman has a superficial playbook focused on cutting costs", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1531adc4-2f25-4b15-8202-559c103cbfa7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.21, "w": 0.88, "x": 0.06, "y": 0.13 }, "kind": "paragraph", "text": "Nevro’s stock was at $45 and jumped 35% the day Keith Grossman was announced as CEO. A herd of sell-side analysts tripped over each other to upgrade and double-upgrade the stock in hours. Given the stock is 4X higher since his hiring while sales are still stuck at the same level as 2018, Nevro is little more than a bet on Keith Grossman’s God-like turnaround and quick-flip powers.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8b2c0d04-52fa-49b4-9f8b-adc45782cae1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.23, "w": 0.82, "x": 0.1, "y": 0.51 }, "kind": "quote", "text": "“Grossman has a history of working with Bess Weatherman of Warburg Pincus who’s on the board, and I think they look for companies that are really ground down. They move some people in, move some people out, but at the end of the day, they really control cost. They don’t really add true value and that’s kind of how I see Grossman... I’m very underwhelmed because when I look at sales capacity, there’s 150 more field team now, for about the same amount of revenue. It’s crazy.” – Former Nevro executive", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "05ba1b85-3b3a-4885-94ed-647c7df9512b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.82, "x": 0.1, "y": 0.82 }, "kind": "quote", "text": "“The other side of Grossman is that when that stock hit $90, you saw 3X acceleration according to the public record to his stock, so he’s all about flipping the company and making as much money as possible in the shortest amount of time. I don’t think there’s a long-term plan there.” – Former Nevro executive", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4dacc75d-1fe6-41ae-99d9-956d014acd09", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Grossman has a history of working with Bess Weatherman of Warburg Pincus who's on the board, and I think they look for companies that are really ground down. They move some people in, move some people out, but at the end of the day, they really control cost. They don't really add true value and that's kind of how I see Grossman. I don't see Grossman adding value to spinal cord stimulation. I don't think he really understands the market. He'll reformat all those guarantees that the reps have. From a revenue point of view, the company should be a lot bigger than it is, but I'm very underwhelmed because when I look at sales capacity, there's 150 more field team now, for about the same amount of revenue. It's crazy. — Former Nevro executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3d-76db-b346-46e6996e740e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.06, "y": 0.96 }, "kind": "source-note", "text": "Source: Consultation calls with experts", "attrs": null, "subkind": "source-note", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f58c302-914c-4713-9ef9-ed39065f01ec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.68, "x": 0.06, "y": 0.1 }, "kind": "title", "text": "12. Investors betting on a Keith Grossman-driven turnaround will shortly face a rude awakening", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ec29b1dd-8e0d-41e2-a9ff-e16dcedbf7b1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.45, "x": 0.06, "y": 0.04 }, "kind": "title", "text": "Scorpion Capital | Nevro (NYSE: NVRO)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6a20e26f-770a-4134-8a88-466f679cc6a7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Authority citation", "slug": "authority-citation", "agent": null, "layer": "slide", "matchId": "feacb666-db5d-4860-a5b5-69bd2e20ddd6", "evidence": "The use of quotes from experts and KOLs to support the allegations about Nevro's practices.", "confidence": 0.7 } ], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "726ecacc-fe3a-42a9-aabb-bed22bdc9e1a", "evidence": "Focuses heavily on criticizing the newly appointed CEO Keith Grossman using ex-executive quotes.", "confidence": 0.85 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }