Callouts & quotes from 2,092+ activist slides

"Something doesn't appear to be adding up with DV's social media revenue reporting. Spruce Point finds evidence that DV is losing revenue from Facebook and YouTube, two of its largest revenue sources."

"Let us be clear – this means that Flexopt (which has zero third-party revenues to fund its expenses) took INS’s loan and then used to it pay for services from another company owned by INS’s employee."

"Contributing to the increase (in software and payments) were higher payments revenue from continued adoption of Lightspeed Payments and payment referral fees earned through our partners. — Lightspeed"

"Given our observations and concerns about revenue reporting and quality, we observe that DY has been increasing its audit-related fees for audit review and internal control over financial reporting."

"If losses accelerate from increasing capacity through increased capital spending with no revenues, at 0.5x to 1.0x tangible book value, IPX's share price could see 70% – 95% potential downside risk."

"Management touts the international expansion potential as a significant portion of its growth opportunity, yet the international business hasn’t grown as a percentage of revenue since at least 2019."

"We have to. This is just the same as Taobao fake sales. Everyone does it. Each month about 10-20% of our revenue is us spending money on broadcasters. We share the loss equally with the broadcaster."

"We note that Internal Revenue Code §6713 imposes a civil penalty on any tax preparer who uses tax return information for "any purpose other than to prepare, or assist in preparing, any such return.""

"We estimate that the company will fall short of 2022E revenue and EBITDA by 35%, while we estimate that Levered Free Cash Flow in 2022E will be $74.3 million, or 80% lower than what forecasts imply."

"After all, isn’t the point of artificial intelligence to reduce human workload? INOD only generates $18.8k in annual revenue per an employee—a number we believe is exceedingly low for an AI company."

"Based on our application of a generous 1.5x - 2.0x 2022E revenue multiple, we estimate a price target of $4.40 – $6.05 per share price target for FIGS, representing 45% - 60% downside from current."

"Only ~7% of Valeant's revenue (~1/2 of the total patent cliff revenue) will face new generic competition by 2016, and thereafter a relatively small percentage of the business is at risk in any year"

"With the estimated impact of Actix and Celcite backed out of total sales, Amdocs’ revenue appears to have grown only between 1-2% on an annual basis through the quarters following the acquisitions."

"We are short BEKE because we conclude the Company is engaged in systemic fraud, by our estimate, inflating its new home sales GTV by over ~126% and its commission revenues by approximately ~77–96%."

"From 2009 to 2011, AOL's revenue declined nearly twice as fast as total operating expenses, causing EBITDA and free cash flow to decline by a staggering $700 million and $575 million, respectively."

"Even at AOL's target revenue model of selling 80% of ad slots to local advertisers near rate card pricing, we estimate that Patch would still lose approximately $20 million to $60 million per year."

"In contracts that contain prescription products issued as the result of a consultation, revenue also includes medical consultation services provided by Affiliated Medical Groups. — HIMS 10-K (2022)"

"It should be an additional red flag that the company is dodging a discussion of the discrepancies in its export revenue – particularly on the back of a nonsensical excuse related U.S. import data."

"TWX led the US Magazine Publishing market in 2004 with about twice the revenues of its closest competitor, as illustrated below in the Top 25 Magazine Companies by US Magazine Net Revenue in 2004."

"Despite 32% of revenues reported in the United States, only 9.2% of earnings before tax are attributable to the United States. We believe this suggests an aggressive tax structure used by Mettler."

"We conservatively estimate Porch booked $8.1m of revenue in 2019 with zero cost associated with it. As a result, we estimate Gross Margin % to be inflated by approximately 2.3% (230 basis points)."

"We conservatively estimate Porch booked $8.1m of revenue in 2019 with zero cost associated with it. As a result, we estimate Gross Margin % to be inflated by approximately 2.3% (230 basis points)."

"We believe that RINO's SAIC financial statements are largely reliable. The SAIC income statement (below) shows consolidated 2009 revenue of $11.1 million, versus $192.6 million in its SEC filings."

"We estimate the cumulative in situ value of Secondary Magnetic REOs at less than $0.60 per tonne; after factoring in aggressive recovery and payability ratios, REE *(revenue) would be <$0.25/tonne"

"Remitly no longer shares its “Revenue Contribution By Cohorts” slide which is a powerful analysis for investors to gauge its ability to harvest revenues from new and existing customers over time."

"Applying that fraction to the 379 million Rmb in prepayments from before gets us to about 223 million Rmb of deferred revenue, or $34 million. Uh-oh: that is 25% below the $45 million TAL booked."

"RTC Plan calls for Crown Castle to achieve a capex revenue ROI in excess of 40% on annual fiber discretionary capex of $600M (versus $1.4B), which turns fiber into a cash flow generative business"

"Momo's revenue has exploded as Live Video resuscitated MAU growth and dramatically increased ARPPU. Live Video has grown its total share of Momo revenue consistently and currently represents 85%."

"Our analysis indicates that First Alert revenue may be challenged in the near term by abnormal retail performance and reliance on one product introduction, which may create difficult comparisons."

"As we think the company’s revenue is fictitious – accounting hocus-pocus where investments in related-parties are round-tripped back as “revenue” - the actual price to sales multiple is infinity."

"Lasertec’s inventory balance has no plausible explanation when compared to the five largest semicap equipment players – it is triple or quadruple as a percent of revenue in the last 2 to 3 years."

"We said to our investors, in return for the privilege of having slightly lower but stable margins, you should expect some very strong, industry-leading revenue growth. — Cognizant, September 2015"

"We experience seasonality in our business. Our revenues are typically lower during the holidays in China, particularly during the Chinese New Year, which occurs in the first quarter. — 20-F, WUBA"

"Our price target is based on the nature of a business unlikely to meet the market's overly optimistic expectations of captured market share, GGR revenue share and inflated target EBITDA margins."

"From the beginning, the SEC challenged Generac to give more disclosures about net sales, and to quantify price and volume effects. The SEC called Generac's revenue reporting "general and vague.""

"Anchoring Carvana’s valuation closer to the reality that traditional (money-making) auto dealers receive at best 1x and generally 0.50x revenue multiples would result in 50% - 70% downside risk."

"Dycom does not regularly report wireless revenue but is often asked by analysts. Based on our analysis, we estimate annual revenues have fallen from ~$300 million (2020) to ~$185 million (2024)."

"Once we calculate the incremental operating profit from the Mexico turnkey contract, we divide it by the incremental revenue from the contract. The result is an operating profit margin of 31.9%."

"However, State Street's shareholders paid a high price subsidizing growth in revenue and assets at the expense of profitability, return on invested capital ("ROIC") and total shareholder returns"

"IQ's barter sublicensing revenues are so inflated that they wouldn't come close to being believable even if IQ bartered every single TV episode produced in China in each of the last three years."

"Our suspicion is that like Zhonghuan, BEKE grossly overpaid for a questionable business in order to hide fake cash, a balance sheet problem created by BEKE’s gross overstatement of its revenues."

"Part 3. Revenue is dependent on a handful of transplant surgeons/centers - "prostitutes" who are "completely owned and operated by TransMedics" - who allegedly receive kickbacks and inducements."

"OPO’s and transplant centers are standardizing around an inexpensive, alternative technique which has long been the standard of care in Europe, with TransMedics 2025 revenue at risk of collapse."

"For the three months ended June 30, 2021, three customers accounted for 27%, 18% and 11% of revenue...four customers comprised 28%, 18%, 17% and 10% of accounts receivable. — Berkeley Lights 10Q"

"Net revenue for the New Age segment decreased by 13% from $11.6 million for the three months ended March 31, 2018 to $10.1 million for the three months ended March 31, 2019. — 2019 Q1 SEC filing"

"Spruce Point estimates that for the first time since coming public, Remitly's transaction margin, or the difference of revenue per send volume and transaction expense per send volume, declined."

"Positive sales momentum has culminated in rising consensus revenue estimates for mall-based retailers. Wall Street is now forecasting 2.6% and 3.5% revenue growth in 2010 and 2011, respectively"

"The company forecasts revenue will grow to $1.4 billion by 2024E, with half of that coming from full-EV and heavy-duty vehicles upfits that don't exist yet, which we view as typical XL bluster."

"Spruce Point believes that increased competition amongst platforms and consolidation amongst agencies will force Momo to lower virtual gift retention and increase cost of revenues going forward"

"BLI 2021 guidance of $90-100MM requires all-time record revenue in Q3 and Q4 – an implausibly sharp spike from a flat trend. "Back half weighted" is the usual canard of companies about to miss."

"This factor, along with REZI now signaling that third party services are being used to develop products, suggests to us that any revenue uplift from new product introductions is likely to slow."

"As AMT has not hedged its currency risk we believe that this could cause further devaluation of revenue and assets in the future and will most likely lead to AMT performing below expectations."

"Monster does not say what the revenue contribution from these purchased customer relationships is which suggests that its organic revenue growth could potentially be challenged and overstated."

"If that number he cited was inclusive of the franchises, which constitute 55% of Firstleap's centers but generate little revenue, then the deferred revenue overstatement is even more hideous."

"There are numerous examples of accounting errors and scandals tied to misestimating revenues and costs with long-term projects, especially in the Communications, Aerospace and Defense sector."

"The lack of clarity about which entities contribute what revenue and operating profits to each product group gives rise to our suspicions that Nidec manipulates its product group disclosures."

"By comparing the public filings of IQ and Wuhan DDMC (Xin’ai’s parent company) we conclude that the deferred revenue recorded by IQ is fraudulent and no non-cash contribution actually exists."

"BR has long touted its recurring revenue retention rate. However, we observe it last referenced this figure in its SEC filings in October 2020 and in an Investor Day slide from December 2020."

"The Medtronic regional manager stated that Nevro “lost all of that revenue” from their launch and that “all of [the doctors they poached] are done with Nevro. They won’t even listen to them.”"

"These numbers are beyond belief when compared to the $35 million to $40 million in digital advertising annual revenue that AMCN generates at Beijing Capital Airport for the following reasons:"