Callouts & quotes from 1,508+ activist slides

"Similarly, FirstGroup's UK Bus business grew substantially prior to 2007, with stagnant revenue growth since 2008 and significant margin deterioration since 2012, while Stagecoach grew its UK Regional Bus revenues and margins during the same period"

"We are short IONQ because our investigation reveals IONQ lost its funding for vital Pentagon contracts that provided up to 86% percent of IONQ’s revenues from 2022-2024, leaving a $54.6 million black hole in its expected quantum computing revenues."

"DV ceased a key disclosure about revenue facilitated through programmatic partnerships. It appears they've become increasingly dependent on two partnerships, which we believe is adding greater business risk and financial pressures to its business."

"There are many data points to cast doubt on the accuracy of Axon's margins beyond it having recently reported a material weakness tied to revenue recognition and cost of sales, fail to promptly address SEC comment letters, and have its CFO resign."

"The relationship between IQ’s deferred revenues and realized revenues is the opposite of what we would expect based on their claims – the realized revenue curve consistently leads the deferred revenue curve and the gap between the two is widening."

"The application of fair value accounting for the SanReno JV is a convenient mechanism by which Chinook can inflate its revenues and decrease its expenses, minimizing its near-term losses and setting itself up for potential future profit inflation."

"Genius has secured partnerships with a large number of sports leagues in 2020, including 20 new partnerships since the beginning of October. Our conversions with experts reveal these partners are unlikely to pay meaningful cash revenue to Genius."

"Based on our significant number of live stream related interviews, we believe that the Street's base case is materially overstating Live Video and Mobile Marketing revenues while understating costs of revenues associated with Live Video services."

"10. Aside from its “customers” being related parties and effectively fake, we believe that Ginkgo takes the scam into even more aggressive territory by booking revenue from them that is simply fictitious, overstated, and/or based on overcharging."

"ROAD infrequently provides guidance as to how much of its revenue growth it expects to be organic. However, in the recent instances that it has commented on organic growth goals, we find that the Company has been falling short of its projections."

"Based on our belief that Procept is likely to face growth challenges, we believe the Company should trade at 5x to 9x 2025E revenue, implying a price target range of $29 to $54 per share, or approximately 30% to 60% downside from current levels."

"TASK claimed it booked $15 million of revenue in 2014. Another version claims that at a revenue run-rate of $35m million in June 2015, that it doubled revenue (implying $17.5m). One former executive told us revenue in 2014 was just $8.0 million."

"The SEC's order finds that MagnaChip Semiconductor Corp. overstated revenues for nearly two years in response to immense pressure placed on employees each quarter to meet revenue and gross margin targets that had been communicated to the public."

"Sector leader IDEXX actually innovated the subscription model and offers a range of similar purchase options, as well as a much broader range of products and services. Moreover, IDEXX lab diagnostics consumables account for 78% of total revenue."

"SafeCharge contributed revenues of $55,853 and net income of $11,643 to the Company for the period from the acquisition date to December 31, 2019. The net income contribution includes the amortization of identifiable intangible assets acquired."

"To drive home the absurdity of Procept’s valuation, we project the Company’s total ten-year Aquablation opportunity making highly generous assumptions... we still calculate a revenue opportunity less than one-half of Procept’s enterprise value."

"Analysts model revenues beginning in FY 2026 and accelerating in the out years. We believe these assumptions are aggressive. Given the large current discount to the consensus analyst price target, the market appears to be expressing skepticism."

"Porch trades at a lofty 2021E 9.0x revenue and 11.7x gross profit multiple on the assumption its recent revenue growth is sustainable, but we believe recent results are distorted due to low-quality acquisitions, which inflates inorganic growth."

"Based on the problematic Site Sharing portfolio, we believe that the above market rent that AMT is currently receiving, which amounts to 43% of operating revenue, is unsustainable and any average rent metrics based off this will be overstated."

"The relationship between Shujia's year-end deferred revenue and subsequent-year recognized revenue is inconsistent with our understanding of how GZ 1-1 operates, supporting our view that Shujia was not consolidating all of the GZ 1-1 business."

"Spruce Point believes it is a huge red flag that Bunge failed to provide revenue projections for Viterra in its proxy statement which it likely had formulated if it were able to provide Adj. EBIT, EBITDA and Unlevered Free Cash Flow estimates."

"PLUG likely would not have been able to secure these deals without offering warrants to Walmart and Amazon. Yet management believes that it should get full credit for this as revenue, AND that the warrants should not count against gross profit"

"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."

"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."

"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"

"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."

"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."

"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."