{
  "docId": "019f6b8f-2c96-7579-a769-2e509f3e13c4",
  "docSlug": "jarvis-legion-one-span-presentation-may-2021",
  "documentTitle": "Legion One Span Presentation May 2021",
  "authorId": "legion-one-span-presentation-may-2021",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-05-01 00:00:00",
  "orientation": null,
  "aspectRatio": null,
  "pageNumber": 53,
  "pageCount": 154,
  "prevPage": 52,
  "nextPage": 54,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "The slide highlights a lack of transparency regarding the shift from hardware/perpetual licenses to SaaS/recurring revenue.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019f6b8f-2c96-7579-a769-2e509f3e13c4/53",
  "deckHref": "/decks/019f6b8f-2c96-7579-a769-2e509f3e13c4",
  "deckJsonHref": "/decks/019f6b8f-2c96-7579-a769-2e509f3e13c4.json",
  "deckAnchorHref": "/decks/019f6b8f-2c96-7579-a769-2e509f3e13c4#slide-53",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.82,
        "x": 0.09,
        "y": 0.78
      },
      "kind": "callout",
      "text": "Many sellside and buyside analysts appear unable or unwilling to invest the time needed to properly understand OneSpan's confusing financials, which we believe has led to a severely discounted valuation vs. peers",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9e77cdb8-335c-4312-95b8-7d92c1973e0e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.09,
        "y": 0.27
      },
      "kind": "list",
      "text": "OneSpan is a transition story that contains two distinct transitions: legacy hardware decline and shift to software recurring revenue.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "25e1093e-d4a8-4d7a-8964-4a6fcec4f3c5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.8,
        "x": 0.09,
        "y": 0.43
      },
      "kind": "list",
      "text": "Transitions have been underway for 5+ years, but the Board kept investors in the dark due to lack of software-oriented disclosures.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "35b75df5-ed31-4e85-a950-16cb744bc5b9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.09,
        "y": 0.68
      },
      "kind": "list",
      "text": "OneSpan continues to mix Hardware and Software revenue and profits on its GAAP income statement, creating significant confusion.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6ba5ca12-f623-4173-a728-b2b20cba1e6b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.3,
        "x": 0.09,
        "y": 0.92
      },
      "kind": "other",
      "text": "Source: SEC Filings, Capital IQ, Legion Partners' Estimates",
      "attrs": null,
      "subkind": "source-note",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e7af873c-a96f-4ef7-8fc6-220ed93ea78b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.09,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "We believe OneSpan has failed to clearly communicate its results, guidance, the overall business model and the transition story",
      "attrs": null,
      "subkind": "description",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "25aaa801-d6ab-42aa-aac9-780abe4f851c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.6,
        "x": 0.09,
        "y": 0.12
      },
      "kind": "title",
      "text": "Two Transitions Both Poorly Communicated",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a14c9bb9-6fe2-4f03-906e-a5f1b180e18a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "d8cc8507-6a42-41a4-8f0e-a427b7a846cd",
      "evidence": "The slide frames the company's lack of disclosure as a deliberate act to keep investors in the dark.",
      "confidence": 0.7
    }
  ],
  "arcBeats": [
    {
      "to": 60,
      "from": 31,
      "beatId": "949d87d3-4d2d-49c1-8245-156aae134348",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle for Change",
      "beatSlug": null,
      "evidence": "Legion presents its efforts to engage with the board and push for change",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 55,
      "from": 47,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "6e5236e4-bdf4-45fd-9dda-e4dd2b1e57d8",
      "evidence": "Legion highlights the consequences of inaction",
      "position": 1,
      "objective": "The cost of not taking action",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}