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  "documentTitle": "Legion One Span Presentation May 2021",
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  "presentationDate": "2021-05-01 00:00:00",
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  "pageNumber": 71,
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  "notes": "Uses a narrative of management incompetence regarding software-as-a-service (SaaS) valuation metrics.",
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      "text": "Instead of providing guidance for Hardware and Software independently, the Company's action of pulling consolidated guidance primarily due to Hardware weakness sent the stock tumbling 40% the following day.",
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      "text": "The Company began disclosing ARR in Q2 2020, but buried it in the appendix of a Company presentation.",
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      "text": "OSPN's 2020 full year guidance format was based on consolidated Revenue and total Adj. EBITDA. Did not break out Hardware and Software expectations despite their vastly differing operating profiles.",
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      "text": "During Q2 2020 earnings, OSPN pulled full year guidance due to a massive revision in Hardware revenue expectations, though expectations for recurring Software growth were unchanged and ARR growth accelerated.",
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      "text": "But what was most troubling to OSPN stockholders is that the Company reinstated full year guidance in the Q3 2020 earnings release with an even lower projection for Hardware revenue but still did not provide formal ARR guidance in the earnings despite ARR clearly on track to finish in the long-term target range of 25-30%. This sent the stock crashing 19% the following day.",
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      "text": "Source: SEC Filings, Capital IQ, OSPN Q2 2020 Earnings Call Transcript (8/11/20), Legion Partners' Estimates",
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      "text": "We also expect hardware revenue will decline at a 20% to 25% rate this year rather than our initial estimate of a mid-teens decline as banks worked on inventory they accumulated last year in anticipation of PSD2 and delays to hardware upgrade projects in favor of mobile security.",
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      "text": "We believe outdated metrics and confusing consolidated guidance led to a 40% crash in the stock price in a single day",
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      "text": "Board Seems to Lack Basic Understanding of Software Metrics",
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