Callouts & quotes from 2,092+ activist slides

"Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. — PowerSchool Revenue Recognition Policy"

"“Approximately, 94% of our GAAP revenue was recurring subscription revenue...Hims & Hers brings together the best of high-growth consumer Internet coupled with the fundamental economics of enterprise SaaS.” — CEO Dudum on Q3 2021 Earnings Call"

"The Amdocs deal reports, in which it reported a 16% drop in billing revenue, to $251 million. Comverse does not fill any gaps in Amdocs' technology portfolio, nor was it a competitive threat to Amdocs. — Sheryl Kingstone, 451 Research director"

"The balance as of December 31, 2018 mainly represents deferred revenue in relation to content distribution, licenses of intellectual property and traffic support services to be provided to one of the Group’s equity investees. — iQIYI 2018 20-F"

"Absent the contribution of Itiviti, BR’s recurring revenue capital markets business just barely hit the low end of its 5% to 7% organic revenue guidance range in 2022. Also BR did not explain an unusual increase in revenue from Itiviti in Q3."

"the continuing shift in sales mix within food grade alcohol from lower margin industrial alcohol products to higher margin premium beverage alcohol products, a decline in input costs, and an increase in warehouse revenue. — MGPI Press Release"

"With GTT's poor trailing twelve-month cash conversion rate of 5.1%, and management's guidance for capex of 7% of revenue, it is mathematically impossible for GTT to generate free cash flow unless it can significantly improve cash conversion."

"Through swaps of advertising purchases, other services and commissions for membership revenues with related parties and other partners, IQ can easily inflate membership revenues while simultaneously providing a channel to burn off fake cash."

"In fact, when we compare the realized revenue with prior year backlog, we see that LSP's conversion has been declining sharply for three consecutive years. Therefore, we believe investors should heavily discount the quality of LSP's backlog."

""We are still expecting Clean Energy revenue growth well above 50% for the full year, with continued strength in PWRcell energy storage systems along with contributions from the initial rollout of new products." — CFO York, Q1 2022 Conf Call"

"He was allegedly the source of the “percentage of completion accounting techniques learned from the ‘Andersen school of accounting’ that allowed Titan to either overstate or prematurely state revenues at the company” — Shareholder litigation"

"Qwest fraudulently recognized over $3.8 billion in revenue and excluded $231 million in expenses as part of a multi-faceted fraudulent scheme to meet optimistic and unsupportable revenue and earnings projections. — SEC Press Release 2004-148"

"Booms and busts in stock prices are often greatest in speculative mining and technology plays that tantalize investors with optimistic revenue and profit outlooks, yet often come from unproven claims and companies with a history of failure."

"Twist is essentially locked out of larger customers like big pharma, who revealed a critical reason why they can't use Twist in the clinic, where the real volumes and revenue are, and why its claim of a "high-throughput" platform is absurd."

"Kratos is trading at peak valuation on the inflated belief that “this time is different” and that its aspirations in the heavily promoted unmanned systems (aka: Drones) will drive nearly $800m of revenues and near record 10% EBITDA margins."

"Spruce Point views the pending legal battle as a sign of PBH's poor business practices to not uphold its end of the obligation and worst-case scenario is part of a last-ditch effort to preserve cash as revenue and cost pressure intensifies."

"Spruce Point does not believe that CLEAR should be valued like a technology company with a strong subscription based recurring revenue model simply for the fact that it is mostly comprised of low-paid "brand ambassadors" and field managers."

"The UK businesses (£3.92bn revenue) are much larger than Greyhound (£0.65bn revenue), and we believe the operational benefits of a UK turnaround are far greater than the potential upside from Greyhound that may be foregone from a sale today"

"Since launch of PS4, Sony's gaming business has deviated from the historical cyclical pattern (i.e. revenue declines starting in years #4 and #5 of the cycle); in the PS4 cycle, Sony's revenue growth has actually accelerated in year #4 / #5"

"Variable information printing is what you would see on a UPS or Amazon box. Specifically, in North America it became very price sensitive. It became very difficult to build this business. — Former Avery Global Pricing and Revenue Specialist"

""Revenue expected to come from backlog within the next twelve months that's an important leading indicator that we've put in all of our filings has been coming up over the last couple of quarters" — CFO At Jefferies Conference (Aug 8, 2018)"

"Housing is in dollar term wise the biggest revenue category and we have Incredible who have very big market share in the market already. However, the housing policy environment has been — 58.com Management (Q4 2018 earnings conference call)"

"It is noteworthy that AAPL has been attacked for engineering its tax rate lower through transfer pricing arrangements, and yet MWH, which generates approximately 85% of its revenue in the U.S. and China, has a much lower reported tax rate."

"The strong correlation and recent spike of both Helly Hansen Canada Revenue and CTC's Intersegment Revenue suggests Canadian Tire is pushing inventory to CTC retail stores in order to show strong growth in its struggling Helly Hansen brand"

"Twist is a ticking time bomb, a commodity DNA manufacturer with a low quality, inferior product, operating an unsustainable Ponzi-like scheme based on price dumping and customer subsidies to buy revenue and create the illusion of “growth.”"

"TWC should, on a fully distributed basis, trade at a premium to Comcast (TWC's most comparable peer given its scale and competitive positioning) due primarily to the higher projected revenue and OIBDA growth at TWC over the next few years."

"Given our concerns about the reliability of Kornit's financials, we believe the most conservative way to value the Company is on its revenues and cash flow, both of which we believe will normalize for the large Amazon contribution in 2018."

"Square's current international revenues account for approximately 3%. The company has stated it has international expansion plans and recently announced a further push into LSPD's home turf of Canada with an integrated POS hardware system."

"Your cost per lead over the past 5 years has probably quadrupled. D2D would cost you 55%-70% of first year revenue, but a Google lead would cost 25%. But now Google is starting to get to 50%-60% so now there’s almost an indifference point."

"Part I: Twist is a ticking time bomb, a commodity synthetic DNA manufacturer and glorified CMO, operating an unsustainable Ponzi-like scheme based on price dumping and customer subsidies to buy revenue and create the illusion of “growth.”"

"Samsung stated they pay about $40MM for each Lasertec machine, which implies $80-120MM of revenue at most - insufficient to maintain Lasertec's growth and valuation as Samsung is one of the three legs of the customer stool they depend on."

"Given our concerns about the reliability of Aerojet’s Adjusted EBITDAP, we believe the most conservative way to value the Company is on its revenues, which we can estimate with insights from the defense budget and current rocket programs."

"Because the government is Capella's main customer, IONQ could also conflate Capella's meaningless satellite revenue numbers with the unannounced missing Pentagon quantum computing and networking revenues, effectively covering up the hole."

"Samsung stated they pay about $40MM for each Lasertec machine, which implies $80-120MM of revenue at most – insufficient to maintain Lasertec’s growth and valuation as Samsung is one of the three legs of the customer stool they depend on."

"I will say growing margin is very hard to do. I specifically have a lot of experience in that area given I was on the pricing side. I really considered myself more in margin management. — Former Avery Global Pricing and Revenue Specialist"

""I think you have to be careful with the digital story. All digital business are not created equal... That's $300-$400m million of revenue that doesn't make money and I don't see how it will in the current model." — Former Xylem Executive"

"This stark and recent case study brings up several questions: How can a $2bn revenue segment of ADP have margins which are >80% below optimal levels? What does this say about ADP's corporate operating efficiency, culture, and governance?"

"In December 2019, we reviewed the 96,432 YY Live PUs that XHL tracks. Our analysis found that 24.9% of these PUs were controlled by YY. We further found that their gift contributions accounted for 48.0% of the gift revenue in our sample."

"The model is simple – Twist investors on one side, customers on the other, and Twist as the middleman flipping cash from capital raises to customers to create “revenue,” with insiders pocketing a vig for the trouble via stock-based comp."

"We believe there are numerous reasons why HIMS revenue multiple is likely to contract closer to its e-commerce peer group and see potential for 25% - 40% downside risk, and more if regulators were to take issue with HIMS operating model."

"We believe this is a strong indicator that UFPT’s drape sales to ISRG have peaked. In our opinion, this is a significant problem for UFPT as their main source of revenue growth has disappeared with the company now facing declining sales."

"To calculate the annual utilization figure for already installed systems, we made a simple assumption that no reagent revenues are generated from the systems that have been contracted in the current quarter and up to two quarters before."

"Specifically, during the year ended December 31, 2016, we identified material weaknesses in our internal controls over revenue recognition, cost of goods sold and services delivered and the reporting of deferred revenue. — Axon 2016 10-K"

"Pure was seeing declining revenue growth rates, particularly in its product segment, before receiving a solid boost from COVID. Yet, as enterprise IT spending has normalized, Pure's revenue growth rates have resumed a troubling decline."

"To better understand the materiality of this issue, PGNY completed 28,413 ART cycles in 2021. Assuming they all involved PGT at $5,000 per cycle, that represents $142 million of revenue, or about 40% of PGNY’s medical revenue that year."

"Generac's multiple is still elevated from its Pre-COVID expansion. Based on aggressive consensus estimates, clean energy will comprise just 7% of 2022E total revenues, not material enough to cause a wholesale re-rating of its multiple."

"Legacy MDA missed its own revenue and EBITDA estimate by a staggering $115m and $19m, respectively. MAXR also made an accounting change to boost DigitalGlobe’s sales and EBITDA, so the disappointment was even worse than we illustrated."

"Spruce Point believes all of Rubicon Project's growth opportunities have petered out or failed to materialize. This explains why we believe it needed to seek a merger partner in Telaria, which had at least one revenue driver being CTV."

"It is self-evident that Huue could only “leverage Ginkgo’s platform” if it’s plied with cash that will be recycled back as fictitious revenue, and we question whether it’s even an active startup or a carcass being exploited as a front."

"How convenient that management writes down contingent consideration liabilities as though it overestimated the performance of its acquisitions, while at the same time demonstrably underrepresenting their likely revenue contributions..."

"As we’ve demonstrated, Nuvei’s revenue is low quality (already being restated) and growth has come from inorganic acquisitions and higher risk (and margin) business which will we believe will revert towards lower margin in the future."

"Our indicative analysis suggests FIGS' SOM could be more than 50% smaller than our calculation of its oft-quoted TAM. Thus, FIGS' 2025 revenue objective of $1 billion could imply as high as 50% market share, which we find unrealistic."

"Management has made numerous excuses for challenges in Argentina over the past decade. However, now that Bunge is extremely optimistic about improvements there from the Viterra acquisition, they won't be providing revenue attribution."

"We expect a substantial re-rating lower in the share price once investors see that revenue programs are disappearing, and critically analyze the quality of the Company’s earnings and its valuation adjusted for significant liabilities."

"Sony is the largest gaming platform in the world by revenue (roughly 2x the size of closest console competitors Nintendo and Microsoft) and well-positioned to benefit from rapid growth in consumer engagement and spending going forward"

"As a result of the acquisition, Americas revenue segment jumped from roughly 37% of total revenues to 53% of total revenues immediately after the Inteliquent acquisition and has continued to grow to over 62% of Sinch's total revenues."

"Ginkgo’s business model is built upon selling R&D services (“Foundry revenue” or “Foundry usage fees”) and also taking royalties or equity stakes in customer programs (“Downstream value”). — Ginkgo corporate presentation, Aug 18, 2021"

"Nuvei does not draw attention in its press releases to organic growth by region. However, by taking a close look at Nuvei's geographic revenue reporting, we find evidence of single digit organic growth decline in the U.S. and Canada."

"In addition, the Company improperly accounted for other items that overstated net income, including the estimation and recording of self-insurance reserves, its recognition of equipment rental revenues, and its income tax accounting."

"The allegations from a former Revenue Analyst at Dropbox are so specific, it’s hard to believe they aren’t true. Notably, data quality issues, broken systems, and key human capital defections will compound Dropbox’s transition plans."