Callouts & quotes from 1,508+ activist slides

"Our review of peer company gross margin expansion during their approximate growth from $200 to $400 million of revenue showed that none achieved such expansion, and the median was a gain of just 85 bps."

"Dycom's revenue from Frontier has grown by ~335% since 2020 and now constitutes 5.4% of total contract revenue. Dycom has booked approximately $1 billion of cumulative revenues from Frontier since 2020."

"The reason NQ’s SAIC financials show this revenue shift is because the Company pays minimal PRC taxes because it has far less profit than it claims. The Company’s SAIC and SEC financials are fraudulent."

"Axon would now like investors to believe that it is at the precipice of leveraging their video and emerging AI capabilities alongside a subscription model to drive both revenue and margin for investors."

"Mettler has a history of revenue recognition issues, but has never called out the problem. Here is one example we identified. How can it confuse the difference between the sale of a product and service?"

"Given Verint's demonstrated financial misconduct under Bodner and his business partners, we find the Company's more recent evasiveness regarding organic growth and cloud-based revenue highly concerning."

"Today's announcement marks the eighth guidance reduction at Southwest Airlines in the last 18 months with RASM (revenue per available seat mile) now expected to decline 4% to 4.5% in the second quarter."

"iRhythm trades at a $5.4 billion market capitalization and mid-to-high-single-digit revenue multiples despite an anticipated deterioration in revenue growth, which we believe may even prove optimistic."

"Zebra shareholders have absorbed almost $100 million in deal costs to acquire $243 million of revenue (40.7% of revenue). When evaluated as a percentage of deal value, the costs are approximately 4.5%."

"WD-40 lists China as its biggest opportunity and the CEO has made claims of $100m in potential revenue in 2016. Fast forward to Q1 2020, the Company produced $2.3m of sales, or a run rate of just $9.2m"

"DV's first Critical Audit Matter is specific to the Measurement segment revenue where International Revenues are booked. In light of our prior analysis and observations, we find this highly concerning."

"In its revenue projections, which we view as extremely aggressive, XL has stated it intends to create hybrid and EV upfits for vehicles that are much heavier than the ones it has historically serviced."

"This does not suggest that Vocera achieved another one of its objectives “to penetrate its existing installed base” otherwise revenue per customer and facility should have been driven higher over time."

"The crux of EHTH's application of ASC 606 is that EHTH books multiple years of commission revenue by claiming that no further performance on its part is necessary in order to collect these commissions."

"We find significant stress in REZI's inventory accounts from the Snap deal. Finished goods now make up almost 87% of inventory and the ratio of inventory to projected revenue is at a multi-period high."

"Juniper's LTM R&D as a % of revenue is 9+ points higher than the peer average. The recommended target of $200M of opex savings is conservative relative to total potential savings of ~$420M in R&D alone"

"Bristol-Myers is estimating Celgene’s five near-term product launch opportunities will generate base case 2028 revenues that are 59% higher than the median of Wall Street analysts’ research estimates."

"Is Amdocs minimizing the immediate revenue contribution of acquired businesses only to realize greater acquisition-driven revenue later in an attempt to make the resulting sales growth appear organic?"

"Spruce Point is concerned by the potential for heightened risk of fraud at Dairy Crest (U.K.), Saputo's largest acquisition in recent history which accounts for approximately C$785 million of revenue."

"The rapid growth in unbilled receivables, which have now ceased to be defined by management, suggest that it has been booking revenues at a much faster rate than billing and collection of receivables."

"Tessera has repeatedly licensed outsourced semiconductor assembly and test companies (OSATs) instead of higher value OEM and manufacturer licensees despite OSATs having far lower revenue and margins."

"Kornit's valuation is rich for a commodity-type digital printing company, and analysts are overly optimistic that it can sustain 20%+ revenue growth while expanding EBITDA margins from 7.6% to 17.8%."

"Spruce Point is concerned that Stryker has never cleanly broken out Mako’s revenues, but historically the three revenue buckets were within the Reconstructive (renamed: Orthopaedics segment in 2014)."

"Revenue and GTV are a function of agent count, so to justify its fabricated GTV and revenue figures, BEKE has also significantly inflated the number of agents on its platform to pump its stock price."

"AOS's revenue reporting concerns do not just extend to China. We find evidence it has misreported revenues domestically in its North American water treatment segment. Again, revising revenues higher."

"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."

"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."

"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."

"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."

"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."