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Our complimentary June 2013 Flash Report assesses the financial and market performance of more than 250 publicly traded on-premise software, SaaS, and Internet companies, sorted by product category. ...

Our complimentary June 2013 Flash Report assesses the financial and market performance of more than 250 publicly traded on-premise software, SaaS, and Internet companies, sorted by product category. The Report also highlights a selection of the most recent software M&A transactions. Our goal is to provide timely information and insight about the financial health, market performance, and acquisition activity of the software industry's key players and product sectors. Given the software industry's ever-changing landscape, we suggest you download our June 2013 Flash Report to ensure you have your finger on the pulse of our industry.

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- 1. June2013 Software Equity GroupFlash ReportSelect M&A Transactions and ValuationsandFinancial and Valuation Performance of 250+Publicly Traded Software, SaaS and InternetCompanies by Product Category
- 2. • Industry leading boutique investment bank founded inLEADERS IN SOFTWARE M&AIndustry leading boutique investment bank, founded in1992, representing public and private software andinternet companies seeking:• Strategic exit• Growth capitalWe Do Deals.Growth capital• Buyout• Inorganic growth via acquisition• Buy and sell-side mentoring• Fairness opinions and valuationsFairness opinions and valuations• Sell-side client revenue range: $5 - 75 million• Buy-side clients include private equity firms andNASDAQ, NYSE and foreign exchange listed companies• Clients span virtually every software technology, productcategory, delivery model and vertical market• Global presence providing advice and guidance to moreth 2 000 i t d bli i th h t USthan 2,000 private and public companies throughout US,Canada, Europe, Asia-Pacific, Africa and Israel• Strong cross-functional team leveraging transaction,operating, legal and engineering experience• Unparalleled software industry reputation and trackrecord.• Highly referenceable base of past clientsCopyright © 2013 by Software Equity Group, LLC
- 3. EXTENSIVE GLOBAL REACHCurrent Sell-side Representation• SEG currently represents software companiesin the United States, Canada, France,Recent Sell-side RepresentationGermany, Australia & Saudi Arabia• In addition to the countries listed above, SEGhas recently represented software companiesin the United Kingdom, France, Netherlands,Israel, and South AfricaSEG Research Distribution• SEG’s Quarterly and Annual Software IndustryEquity Reports and Monthly Flash Reports areq y p y pdistributed to an opt-in list of 50,000 publicsoftware company CEOs, softwareentrepreneurs, private equity managingdirectors, VCs, high tech corporate lawyers,public accountants, etc. in 76 countries.Copyright © 2013 by Software Equity Group, LLCp ,
- 4. Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided andABOUT SOFTWARE EQUITY GROUPq y p y g gy , gadvised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africaand Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software EquityGroup also advises several of the worlds leading private equity firms. We are ranked among the top ten investment banks worldwide for application softwaremergers and acquisitions.Our value proposition is unique and compelling We are skilled and accomplished investment bankers with extraordinary software internet and technologyOur value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technologydomain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, includingSoftware-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations andvaluation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact thesedeals. Were formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.P h t i t t th l ti hi b ilt d th i d t t ti j S ft E it G i k d t d b bli lPerhaps most important are the relationships weve built and the industry reputation we enjoy. Software Equity Group is known and respected by publiclytraded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry EquityReports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have beenquoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report,Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEOOnline and Software Business Magazine.gTo keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation,.kbeible@softwareequity.com,2800-509)858Beible, Director, Business Development (Krisplease contactCONTACT INFORMATION:Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www softwareequity comwww.softwareequity.comp: (858) 509-2800The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing inthis Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest inone or more of the securities or companies discussed herein.Financial data provided by Capital IQ.Copyright © 2013 by Software Equity Group, LLCThis Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.
- 5. CRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationERP Enterprise Resource PlanningEV Enterprise ValueFCF Free Cash FlowFORWARD Current EV / Next Four Quarters Consensus Financial EstimatesNASDAQ National Association of Securities Dealers Automated Quotation SystemList of Commonly Used AcronymsNASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & PoorsSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-dateCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 6. Software Industry M&A TransactionsMay 2013Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 7. Select May 2013 Software Industry M&A TransactionsDateAnnounced TargetTarget TTMRevenue($mm)EnterpriseValue($mm)EV/RevenueEV/EBITDAMay-31-2013 Repunomics RemoveMyMu - - - -May-31-2013 Star MediaWorks Sdn Bhd; Star Commercial Publications Ocision Sdn - - - -May-30-2013 Uscom Limited (ASX:UCM) Pulsecor - $4.8 - -May-30-2013 Digital Publishing Initiatives Japan Co., Ltd. Bitway Co., - $1.0 - -May-30-2013 I Dream Of Space Limited Cozy Dark - - - -May-30-2013 Nuance Communications, Inc. (NasdaqGS:NUAN) Tweddle - - - -May-30-2013 SMS Signature Cars and Saleen Automotive, Inc W270, Inc. - $80.0 - -May-30-2013 Access UK Limited PeoplePlanne - - - -May-30-2013 Deloitte & Touche LLP Vigilant, LLC - - - -May-30-2013 BloomReach, Inc. ShopLogic, Inc. - - - -May-30-2013 GFT Holding Italy S.r.l. Sempla Srl $57.4 - - -May-29-2013 Dassault Systemes SA (ENXTPA:DSY) Apriso Corporation - - - -May-29-2013 Cigniti Technologies Ltd. (BSE:534758) Gallop Solutions, Inc $9.5 $205.0 - -May-29-2013 YottaMark, Inc. ShopWell Solutions, Inc. - - - -May-29-2013 WinSun Technologies Bhd (KLSE:WINSUN) Planet Wireless Holdings Limited $2.6 - 1.5x -May-29-2013 Cisco Systems, Inc. (NasdaqGS:CSCO) JouleX, Inc. - $3.8 - -May-29-2013 Endexx Corp. (OTCPK:EDXC) Dispense Labs, LLC - $107.0 - -May-29-2013 Jobindex A/S (CPSE:JOBNDX) IDG Danmark A/S - - - -May-28-2013 ReelTime Media Limited Brilliant Company - - - -May-28-2013 ServiceLink, L.P. Lender Processing Services, Inc. (NYSE:LPS) $1,983.5 - 1.9x 11.4xMay-28-2013 Winterhawk Consulting LLC Winterhawk Consulting Asia, Inc. - $3,849.7 - -May-28-2013 Refinery29, Inc. Socialbomb, Inc. - - - -May-28-2013 Neohydro Technologies Corp. (OTCPK:NHYT) Epoxy, Inc. - - - -May-28-2013 Answers Corporation WebCollage, Inc. - - - -May-28-2013 Synergon Information Systems plc (BUSE:SYNERGON) NAVIGATOR Informatika Zrt. - - - -May-28-2013 AS Delfi SIA Calis.lv - $2.3 - -May-28-2013 Adobe Systems Inc. (NasdaqGS:ADBE) Ideacodes LLC - - - -May-27-2013 CAD-Quality AB Basepoint Oy $1.5 - - -May-27-2013 China 3D Internet Distribution Limited Century On Industrial Limited - - - -May-27-2013 Infopro Digital SAS DISTREE Events SARL - - - -May-24-2013 1Spatial Plc (AIM:SPA) STAR-APIC SA $10.3 - 0.7x 57.9xMay-24-2013 Quebecor Inc. (TSX:QBR.B) Gestev Inc. - $7.5 - -May-24-2013 HidroCo Limited E-tivity Corporation (APAC) Pty Ltd and E-tivity International Private Limited - - - -May-23-2013 Terago Inc. (TSX:TGO) Data Centers Canada Inc. - - - -May-23-2013 Yahoo! Inc. (NasdaqGS:YHOO) PlayerScale, Inc. - $9.2 - -May-23-2013 Conveyor Networks Ltd. Capley Marker Systems Limited - - - -May-23-2013 BrightBox Solutions, Inc. Help Desk Software, LLC - - - -May-23-2013 Concert Care Healthcare Solutions Novel Infosolutions Pvt Ltd - - - -May-23-2013 Kenyon Fraser Ltd. Concept PR and Edian - - - -May-22-2013 Genscape, Inc. vesseltracker.com GmbH - - - -May-22-2013 Silverlake Axis Ltd. (SGX:5CP) Cyber Village Sdn. Bhd. - - - -May-22-2013 Recargo, Inc. Xatori, Inc. - $14.0 - -May-22-2013 FreshNeck, LLC TieTry LLC - - - -May-22-2013 The Rimm-Kaufman Group, LLC Nine by Blue Inc. - - - -May-22-2013 TOT Group, Inc. Aptito.com, Inc. - - - -May-22-2013 Blue Coat Systems Inc. Solera Networks, Inc. - $41.1 - -May-22-2013 Persephone Capital Partners Global Relief Technologies LLC - - - -May-22-2013 Network-1 Security Solutions Inc. (OTCBB:NSSI) Mirror Worlds, LLC, Patent Portfolio - - - -May-22-2013 Aegis Media Nederland B.V. Social Embassy B.V. - $3.0 - -May-22-2013 Behance, Inc. Thumb Labs, LLC - - - -May-22-2013 Adrenaline Amusements Inc Sarbakan Inc. - - - -AcquirerCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 8. Select May 2013 Software Industry M&A TransactionsDateAnnounced TargetTarget TTMRevenue($mm)EnterpriseValue($mm)EV/RevenueEV/EBITDAMay-21-2013 Fahrenheit IT, Inc. Indecon Solutions, LLC - - - -May-21-2013 VTC, L.L.C arvato digital services LLC, Data Center Integration Services Business - - - -May-21-2013 AVG Technologies N.V. (NYSE:AVG) PrivacyChoice LLC - $1.5 - -May-21-2013 Healthland, Inc. American HealthTech, Inc. - - - -May-21-2013 SolarWinds Worldwide, LLC N-able Technologies International, Inc. - - - -May-21-2013 Whodini, Inc. Grappple, Inc. - $120.0 - -May-21-2013 108 Agency, s.r.o. Skladuj.cz - - - -May-21-2013 Mobivity Holdings Corp. (OTCPK:MFON) Front Door Insights LLC - - - -May-21-2013 Drukkerij Buroform nv CROZZ NV - $2.7 - -May-21-2013 EarthBend LLC Tonka-Tek, Inc. - - - -May-21-2013 Center for Computer Resources Power IT, LLC - - - -May-20-2013 Radius Global Market Research L.L.C. Profile Marketing Research, Inc. - - - -May-20-2013 Foodpanda Singapore Pte. Ltd. Singapore Dine Pte Ltd - - - -May-20-2013 E.M.T. Computarized Veracity Ltd - - - -May-20-2013 Oodrive Group CommonIT SAS - $3.5 - -May-17-2013 Highstreet IT Solutions, LLC MIS, Inc. - - - -May-16-2013 St Ives plc (LSE:SIV) Branded3 Search Limited Company $6.3 - 6.1x 14.7xMay-16-2013 Guangzhou Jingyou Computer Technology Co. Ltd. IFCA - Guangzhou Jingyou Computer Technology Co. Ltd - $38.3 - -May-16-2013 Upland Software, Inc. Marex Group, Inc. - - - -May-16-2013 TELUS Corporation (TSX:T) Mobilicity - - - -May-16-2013 Tactex Asset Management Inc. Tick Data Inc. - $374.1 - -May-16-2013 Aditi Technologies Pvt. Ltd. Get Cloud Ready Technology Consulting (India) Private Limited - - - -May-16-2013 Market Strategies, Inc. Cogent Research LLC - - - -May-16-2013 Aruba Networks, Inc. (NasdaqGS:ARUN) Meridian Apps, Inc. - - - -May-16-2013 Legend Pictures, LLC FIVE33 Entertainment LLC - - - -May-16-2013 Volume Limited Inovare Ltd - - - -May-15-2013 Aly Energy Services, Inc. (OTCPK:ALYE) Preferred - - - -May-15-2013 DocuSign, Inc. Cartavi, Inc. - - - -May-15-2013 IntegriCell, LLC SyncDog, Inc. - - - -May-15-2013 iTalk Inc. (OTCBB:TALK) Global - - - -May-15-2013 Bay Communications, Inc. Milwaukee 2- - - - -May-15-2013 Chime Sports Marketing LLP People - $16.5 - -May-15-2013 Alternative Energy Partners, Inc. (OTCBB:AEGY) Simple Prepay - - - -May-15-2013 Niel Telecom Telecel Globe $91.0 - - -May-15-2013 NutraBev Holdings International, Inc. Microlog Corporation (OTCPK:MLOG) - - - -May-15-2013 NBS SP Quê Comunicação - - - -May-15-2013 Private Investor KOLON BENIT Co., Ltd. - $60.8 - -May-14-2013 MYOB Finance NZ Limited BankLink Limited - $111.7 - -May-14-2013 Barracuda Networks, Inc. SignNow, Inc. - - - -May-14-2013 RelayRides, Inc. Wheelz, Inc. $0.0 - - -May-14-2013 CM Telecom B.V. Paratel NV - - - -May-14-2013 Scott Ford, Director of Ten Alps Communications Ten Alps Creative & Media Ltd. $7.6 $0.2 0.0x 7.2xMay-14-2013 petroWEB, Inc. Neuralog Inc., NeuraDB - - - -May-14-2013 8K Miles Software Services Ltd (BSE:512161) FuGen Solutions, Inc. - $7.5 - -May-14-2013 DDC Europe BV Didoc Data Services B.V. - - - -May-14-2013 Havas Media UK Limited ElisaDBI - - - -May-14-2013 Alternative Energy Partners, Inc. (OTCBB:AEGY) PharmaJanes - - - -May-14-2013 FreeButton, Inc. (OTCPK:FBTN) Media Rhythm Group Inc. - - - -May-14-2013 OMT Inc. (TSXV:OMT) AnalytixInsight Inc. - $2.1 - -May-14-2013 Tech Hollywood Studios Corp. Bitzio, Inc. (OTCPK:BTZO) $0.4 - - -May-14-2013 Next Net Media, LLC The Hoth Corp. - - - -AcquirerCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 9. Select May 2013 Software Industry M&A TransactionsDateAnnounced TargetTarget TTMRevenue($mm)EnterpriseValue($mm)EV/RevenueEV/EBITDAMay-14-2013 @WalmartLabs OneOps Inc. - - - -May-14-2013 29 Prime, Inc. Xsell Business Consulting, LLC - - - -May-14-2013 MinoMonsters Inc. Playcraft Labs Inc. - - - -May-14-2013 24/7 Inc. Shopalize, Inc. - - - -May-14-2013 Achieve IT Solutions, Inc. Munics Information Systems, Inc. - - - -May-13-2013 RichRelevance, Inc. Avail Intelligence AB - - - -May-13-2013 Taylor Nelson Sofres plc Sinotrust Market Research Co., Ltd. $41.5 - - -May-13-2013 Dyn Inc. Trendslide LLC - - - -May-13-2013 Best Rank, Inc. Engine Ready, Inc. - - - -May-13-2013 Guidewire Software, Inc. (NYSE:GWRE) Millbrook, Inc. - - - -May-13-2013 Unruly Group Limited Shareifyoulike GmbH - - - -May-13-2013 Twitter, Inc. Lucky Sort Inc. - - - -May-13-2013 Change SAS Wizee SAS $1.3 - - -May-13-2013 Platypus Advertising + Design, Inc. NOISE Inc., Milwaukee Office - - - -May-13-2013 Shanghai Great Wisdom Co., Ltd. (SHSE:601519) Singapore Nextview Pte Ltd. $3.4 $5.3 1.6x -May-13-2013 Incubeta Holdings Net Media Planet Limited - - - -May-10-2013 Dimension Data Holdings plc Earthwave Corporation Pty. Limited - - - -May-10-2013 Intelligent Living Inc. Mind360 - $1.0 - -May-10-2013 CellarStone Inc. webKPI LLC - - - -May-10-2013 Yahoo! Inc. (NasdaqGS:YHOO) Loki Studios, Inc. - - - -May-10-2013 Core Media Group Shanley Media Solutions Limited - - - -May-10-2013 MOCA Systems Inc. L-3 National Security Solutions Inc., Cost Engineering Services Group - - - -May-09-2013 Cloud Nation LLC Early Impact, Inc., Subscription Bridge - - - -May-09-2013 Creatine Marketing MXSweb - - - -May-09-2013 Nielsen Holdings N.V. (NYSE:NLSN) MediaXim NV/SA - - - -May-09-2013 MobileBits Holdings Corp. (OTCPK:MBIT) ValuText, LLC - - - -May-09-2013 Crown Partners LLC Intersect Inc. - - - -May-09-2013 Egnyte, Inc. Bema Sp. z oo - - - -May-09-2013 Yahoo! Inc. (NasdaqGS:YHOO) Go Poll Go, Inc. - - - -May-09-2013 Box, Inc. crocodoc - - - -May-09-2013 A & F Conveyors Limited Pacific Software, Inc. (OTCBB:PFSF) - - - -May-09-2013 Servion Global Solutions Ltd. JAM IP Limited - - - -May-09-2013 Twitter, Inc. Ubalo, Inc. - - - -May-09-2013 Legacy.com, Inc. Web Announcements Limited - - - -May-09-2013 Cognicase Management Consulting, S.L. Ártica Telemedicina S.L. - - - -May-08-2013 OMERS Private Equity Civica plc $314.8 $607.8 1.9x 10.3xMay-08-2013 Trulia, Inc. (NYSE:TRLA) Market Leader, Inc. (NasdaqGS:LEDR) $47.7 $314.3 6.6x -May-08-2013 NetSuite Inc. (NYSE:N) OrderMotion, Inc. - - - -May-08-2013 PlattForm Advertising, Inc. MJD Media Limited - - - -May-08-2013 Sylogist Ltd. (TSXV:SYZ) Epic Data International Inc. (TSXV:EKD) $4.5 $6.9 1.5x -May-08-2013 Plaut IT (Australia) Pty Limited Baseliner Consulting Sdn Bhd - - - -May-08-2013 Fortified Management Group, LLC Instilend Technologies Inc. - $2.4 - -May-08-2013 Aegis Media Limited NewWorld Group - - - -May-08-2013 St. John & Partners Advertising and Public Relations, Inc. SBS Studios, LLC - - - -May-08-2013 Electronics for Imaging, Inc. (NasdaqGS:EFII) printLEADER Software, Inc. - - - -May-08-2013 Verlagsgruppe Handelsblatt GmbH & Co. KG MEEDIA GmbH & Co. KG - - - -May-07-2013 Telecity Group plc (LSE:TCY) Hosting Internet Hizmetleri San. Tic. Ltd. Sti. - $44.8 - -May-07-2013 Lucent Mobile, Inc. Proxomo Software, Inc. - - - -May-07-2013 Tomizone Limited Jimojo Pty Ltd - - - -May-07-2013 ReadSoft AB (OM:RSOF B) Expert Systems Development Svenska AB $2.0 $9.2 4.6x -May-07-2013 ISIS Equity Partners LLP Red Box Recorders Ltd. - - - -AcquirerCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 10. Select May 2013 Software Industry M&A TransactionsDateAnnounced TargetTarget TTMRevenue($mm)EnterpriseValue($mm)EV/RevenueEV/EBITDAMay-07-2013 ECM Equity Capital Management GmbH MediFox GmbH - - - -May-07-2013 Telecity Group plc (LSE:TCY) Hosting Internet Hizmetleri San. Tic. Ltd. Sti. - $44.8 - -May-07-2013 Lucent Mobile, Inc. Proxomo Software, Inc. - - - -May-07-2013 Tomizone Limited Jimojo Pty Ltd - - - -May-07-2013 ReadSoft AB (OM:RSOF B) Expert Systems Development Svenska AB $2.0 $9.2 4.6x -May-07-2013 ISIS Equity Partners LLP Red Box Recorders Ltd. - - - -May-07-2013 ECM Equity Capital Management GmbH MediFox GmbH - - - -May-07-2013 Accenture plc (NYSE:ACN) Fjordnet Limited - - - -May-07-2013 E-drive Group Universal Graphics Ltd - - - -May-07-2013 TripAdvisor Inc. (NasdaqGS:TRIP) Guía de Apartamentos Niumba, S.L. - - - -May-07-2013 Nest Labs, Inc. MyEnergy, Inc. - - - -May-07-2013 All Property Management, LLC Seamus Co., LLC - - - -May-07-2013 Haystax Technology, Inc. FlexPoint Technology, A Haystax Company - - - -May-07-2013 Command Alkon Incorporated 323 Solutions, Inc. - - - -May-07-2013 Global Edge Software Ltd. Dearborn Electronics (India) Pvt Ltd - - - -May-07-2013 Matricis Informatique Inc. para9 inc. - - - -May-07-2013 Mimvi, Inc. (OTCBB:MIMV) AndroidRays - - - -May-07-2013 Get Found First, LLC Qualityscores.com And 15 Additional Online Marketing Websites - - - -May-07-2013 3Q Holdings Limited Intelligent Retail Ltd. - $5.8 - -May-07-2013 Swisscom AG (SWX:SCMN) Tweasy SA - - - -May-07-2013 About.me LLC Jeff Hodsdon, LLC - - - -May-07-2013 Ten Six Consulting, LLC Ten Six Consulting Ltd. - - - -May-07-2013 Bytes Technology Group South Africa (Proprietary) Ltd. Brand New Technologies Proprietary Limited - $7.0 - -May-06-2013 McAfee, Inc. Stonesoft Oyj (HLSE:SFT1V) $52.7 $376.2 7.0x -May-06-2013 Dimension Data Holdings plc AccessKenya Group Limited $22.1 $43.6 1.9x 5.4xMay-06-2013 Insight Venture Partners; GIC Special Investments Pte. Ltd.; Bain Capital PBMC Software Inc. (NasdaqGS:BMC) $2,201.4 $6,866.4 3.1x 11.2xMay-06-2013 Qlik Technologies, Inc. (NasdaqGS:QLIK) NComVA AB - $10.8 - -May-06-2013 Dell Inc. (NasdaqGS:DELL) enstratius, Inc. - - - -May-06-2013 LoanLogics, Inc. NYLX, Inc. - - - -May-06-2013 Employer Flexible HR, Inc. EmpactIT - - - -May-06-2013 ePrize, Inc. Promotions.com LLC - - - -May-06-2013 Vencor International, Inc. (OTCPK:VCOR) Link My Fan Inc. - - - -May-06-2013 Oniva Online Group Europe AB (publ) (OM:ONG) Space2u Webhosting AB - - - -May-06-2013 iQIYI.com, Inc. PPStream, Inc. - $370.0 - -May-06-2013 Xiamen 35.Com Technology Co., Ltd. (SZSE:300051) CNFOL.COM Company Limited - $34.0 - -May-06-2013 VinSolutions, Inc. Haystak Digital Marketing LLC - - - -May-06-2013 Search2Go Inc. RentSJ.ca - - - -May-06-2013 EPiServer AB Euroling AB - - - -May-06-2013 Bestv New Media Co., Ltd. (SHSE:600637) SVA Communications Co., Ltd. - $4.9 - -May-06-2013 Daniel J. Edelman, Inc. Bairds Renaissance Pty. Ltd. - - - -May-05-2013 Darby Overseas Investments, Ltd. ALL Rail Technology - $14.9 - -May-03-2013 Quindell Portfolio Plc (AIM:QPP) Quindell Property Services Limited - $54.3 - -May-03-2013 Constellation HomeBuilder Systems, Inc. Quantitative Medical Systems, Inc. - - - -May-03-2013 Spotify Limited Tunigo AB - - - -May-03-2013 Webdesigner Depot CodeVisually.com - - - -May-03-2013 Highstreet IT Solutions, LLC Highstreet ESG, Inc. $25.0 - - -May-03-2013 LX Ventures Inc. (TSXV:LXV) Sosido Networks Inc. - $0.4 - -May-02-2013 Yahoo! Inc. (NasdaqGS:YHOO) Todoroo, Inc. - - - -May-02-2013 Move, Inc. (NasdaqGS:MOVE) ABC Holdings, LLC - $2.3 - -May-02-2013 PostNord AB Aditro Financial Management AB and Aditro Financial Processes AB - - - -May-02-2013 Morningstar Europe BV Morningstar Sweden AB - $17.1 - -AcquirerCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 11. Select May 2013 Software Industry M&A TransactionsDateAnnounced TargetTarget TTMRevenue($mm)EnterpriseValue($mm)EV/RevenueEV/EBITDAMay-02-2013 LearnCentral GreenStack, Inc. - - - -May-02-2013 MyrtleBeachSC.com Broadway Technology, Inc. - - - -May-02-2013 Perficient Inc. (NasdaqGS:PRFT) TriTek Solutions, Inc. $19.0 $18.5 1.0x -May-02-2013 Ubiquitous Systems Ltd. Anoto UK $2.6 $3.0 1.1x -May-02-2013 GemTalk Systems LLC GemStone/S - - - -May-02-2013 The Descartes Systems Group Inc (TSX:DSG) KSD Software Norway AS $9.6 $30.8 3.2x -May-02-2013 PCCW Solutions Limited Compass Solutions Holdings Limited - - - -May-02-2013 Rhino Print Solutions Inc. Marcam Cross Media Ltd. - - - -May-02-2013 Alan B Chaveleh and Marteza Baharloo TimeGate Studios Inc. - $0.7 - -May-02-2013 5Touch Solutions, Inc. NK Labs Inc. - - - -May-02-2013 Backstop Solutions Group, LLC PerTrac Financial Solutions, LLC, PerTrac CMS - - - -May-02-2013 Lighthouse Publications, LLC Aucoot Media, Inc. - - - -May-01-2013 NXP Semiconductors NV (NasdaqGS:NXPI) Code Red Technologies, Ltd. - - - -May-01-2013 SKU Logistics Dawson Marketing Services Ltd. - $0.3 - -May-01-2013 DreamWorks Animation SKG Inc. (NasdaqGS:DWA) AwesomenessTV, Inc. - $150.5 - -May-01-2013 Pramati Technologies Private Limited WaveMaker Software, Inc. - - - -May-01-2013 Rennes Foundation; Robin Raina Foundation, Inc., Endowment Arm; ExchEbix Inc. (NasdaqGS:EBIX) $208.1 $811.6 3.9x 9.3xMay-01-2013 ALLMYFUNDS Technology Pty Ltd InvestmentLink Pty Ltd. - - - -May-01-2013 iProspect.com, Inc. NVI Solutions - - - -May-01-2013 Fronde Systems Group Limited OnlineOne - - - -May-01-2013 Everest Group LLC JangoMail, Inc. - - - -May-01-2013 Big Red Rooster, LLC Big Red Rooster NetPoint, LLC - - - -May-01-2013 Intermark Group, Inc. Buzz12 Marketing - - - -May-01-2013 Datum Corporation BreakFree IT Solutions, LLC - - - -May-01-2013 Junior Advertising Pty Limited Cru Group Pty Ltd - - - -May-01-2013 Infinx Services Private Limited Critical Entry Data Systems, LLC - - - -May-01-2013 Atlantic DataSystems Inc. THINQ Business Solutions Inc. - - - -May-01-2013 NetWeave Social Networking LLC ELEVATE Social Limited - - - -AcquirerCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 12. SEG Software IndexCategory PerformanceCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 13. SEG Software Index: All CategoriesMarket Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDSEG Software Index $2,155.5 $2,160.7 $586.3 69.4% 19.2% 9.7% 2.8x 12.4x 2.6x 9.6x 7.1%Billing & Service Management $766.0 $667.7 $427.3 58.4% 18.7% 8.9% 1.9x 8.4x 1.4x 7.5x 11.2%Business Intelligence $1,226.5 $974.9 $405.9 73.9% 12.2% 9.7% 2.9x 17.3x 2.8x 12.7x 15.5%Development Platforms $2,682.1 $2,606.8 $1,124.2 77.8% 21.8% 2.0% 2.7x 10.3x 2.8x 8.7x 6.8%Engineering & PLM $3,765.9 $3,466.5 $1,168.7 84.6% 20.1% 7.5% 2.7x 12.5x 2.5x 9.4x 6.8%Enterprise Resource Planning $3,738.9 $3,998.1 $1,353.8 76.0% 22.8% 3.1% 2.6x 11.8x 2.7x 7.6x 4.0%Financial & Accounting $1,807.0 $2,272.4 $703.4 57.7% 23.7% 11.7% 3.4x 11.4x 3.1x 8.5x 5.7%Gaming $2,470.3 $2,294.8 $2,004.4 65.3% 11.9% 15.1% 1.4x 10.4x 1.4x 7.9x 32.9%IT Conglomerates $159,126.0 $145,913.0 $76,012.0 71.6% 33.8% 0.5% 3.1x 8.4x 2.8x 7.6x 6.8%Mobile Solutions/Content $556.3 $494.1 $231.1 54.2% 7.9% 19.4% 2.8x 13.6x 1.7x 18.1x 13.6%Networking & Network Performance Managemen $2,409.7 $2,324.9 $944.5 64.7% 15.0% 5.2% 2.1x 13.0x 2.0x 9.6x -13.0%Security $980.9 $948.1 $359.4 79.6% 15.6% 15.8% 2.8x 11.1x 2.5x 14.7x 5.3%Storage, Data Mgmt & Integration $12,396.0 $8,825.9 $4,643.0 72.3% 21.9% 4.1% 2.4x 9.2x 2.6x 7.5x 6.8%Supply Chain Management & Logistics $1,046.0 $1,215.6 $292.1 67.7% 16.0% 9.3% 3.5x 15.4x 3.7x 14.3x 13.5%Systems Management $9,144.4 $8,264.9 $2,201.4 84.9% 24.7% 15.8% 4.3x 19.0x 3.7x 11.8x -9.8%Vertical - Finance $2,968.3 $3,588.8 $802.2 43.3% 27.3% 7.6% 4.0x 11.2x 4.2x 10.9x 19.6%Vertical - Other $968.7 $827.8 $364.8 54.1% 13.5% 21.7% 3.3x 19.4x 2.5x 14.9x 28.5%Category NameTTM Revenue Growth 8.9%TTM EBITDA Growth -16.3%TTM Earnings Growth -30.3%Gross Profit Margin 58.4%EBITDA Margin 18.7%Net Income Margin 0.0%SG&A Expenses as a % of Total Revenue 53.9%R&D Expenses as a % of Total Revenue 16.3%Current Ratio 1.8Quick Ratio 1.6Cash as Percent of Market Cap 9.7%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 28Working Capital to TTM Operating Expense Ratio 0.3xLevered FCF Margin 8.8%Cash from Operations Growth (YoY) 22.9%Cash from Investing Growth (YoY) -171.9%Cash from Financing Growth (YoY) 56.1%Levered FCF Growth (YoY) 6.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%20%SEG SW Index Software Stock Market Return: January - April 2013DOW S&P NASDAQ SEG SW Index
- 14. SEG Software Index Category: Billing and Service ManagementCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAmdocs Limited DOX $5,746.7 $4,768.5 $3,290.3 35.4% 18.6% 1.9% 1.4x 7.8x 1.4x 7.0x 5.6%AsiaInfo Holdings, Inc. ASIA $843.7 $546.7 $567.2 38.0% 11.7% 15.7% 1.0x 8.3x 0.9x 7.4x 4.8%CSG Systems International, Inc. CSGS $688.4 $788.8 $752.5 48.5% 18.6% 2.2% 1.0x 5.6x 1.0x 4.9x 15.8%Evolving Systems, Inc. EVOL $74.5 $63.1 $27.0 70.7% 27.5% 38.2% 2.3x 8.5x 2.2x 7.7x 13.2%MIND C.T.I. Ltd. MNDO $34.7 $14.1 $19.4 58.2% 18.8% -1.6% 0.7x 3.9x n/a n/a 3.9%NeuStar, Inc NSR $3,188.7 $3,434.2 $848.2 77.6% 44.6% 25.9% 4.0x 9.1x 3.7x 7.5x 9.2%Redknee Solutions TSX:RKN $235.7 $220.5 $55.4 66.5% 4.7% -1.4% 4.0x 85.0x 0.9x 10.9x 37.8%Synchronoss Technologies, Inc. SNCR $1,203.1 $1,145.9 $287.4 58.5% 21.8% 19.4% 4.0x 18.3x 3.2x 9.3x 44.8%Median: $766.0 $667.7 $427.3 58.4% 18.7% 8.9% 1.9x 8.4x 1.4x 7.5x 11.2%TTM Revenue Growth 8.9%TTM EBITDA Growth 14.9%TTM Earnings Growth 7.5%Gross Profit Margin 58.4%EBITDA Margin 18.7%Net Income Margin 9.9%SG&A Expenses as a % of Total Revenue 19.2%R&D Expenses as a % of Total Revenue 14.9%Current Ratio 2.7Quick Ratio 2.3Cash as Percent of Market Cap 16.2%Avg Days Outstanding: Accounts Receivable 98Avg Days Outstanding: Accounts Payable 25Working Capital to TTM Operating Expense Ratio 0.6xLevered FCF Margin 10.6%Cash from Operations Growth (YoY) 8.9%Cash from Investing Growth (YoY) -7.1%Cash from Financing Growth (YoY) 38.5%Levered FCF Growth (YoY) -1.9%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%Billing and Service Management Software Stock Market Return: January - April 2013Billing & Service Management S&P NASDAQ SEG SW Index
- 15. SEG Software Index Category: Business IntelligenceCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDActuate Corporation BIRT $319.4 $252.1 $138.9 84.1% 15.2% 0.9% 1.8x 12.0x 1.7x 8.1x 15.5%MicroStrategy Incorporated MSTR $1,033.8 $703.6 $586.5 73.9% 6.9% 1.4% 1.2x 17.3x 1.2x 12.4x -4.2%Pegasystems Inc. PEGA $1,226.5 $1,045.6 $466.8 67.1% 12.2% 9.7% 2.2x 18.3x 2.0x 12.7x 35.8%Progress Software Corporation PRGS $1,296.3 $974.9 $337.3 87.2% 23.2% 7.5% 2.9x 12.4x 2.8x 8.7x 9.9%PROS Holdings PRO $807.6 $725.1 $124.4 70.7% 7.6% 21.7% 5.8x 76.6x 4.8x 29.2x 46.8%Qlik Technologies QLIK $2,676.7 $2,462.1 $405.9 88.1% 2.8% 20.5% 6.1x 213.6x 5.0x 35.7x 34.5%Verisk VRSK $9,905.0 $11,083.0 $1,591.1 59.9% 44.5% 16.5% 7.0x 15.7x 6.3x 13.8x 11.9%Median: $1,226.5 $974.9 $405.9 73.9% 12.2% 9.7% 2.9x 17.3x 2.8x 12.7x 15.5%TTM Revenue Growth 9.7%TTM EBITDA Growth -16.5%TTM Earnings Growth 14.9%Gross Profit Margin 73.9%EBITDA Margin 12.2%Net Income Margin 6.8%SG&A Expenses as a % of Total Revenue 53.7%R&D Expenses as a % of Total Revenue 16.8%Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 14.7%Avg Days Outstanding: Accounts Receivable 92Avg Days Outstanding: Accounts Payable 52Working Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 10.1%Cash from Operations Growth (YoY) 11.9%Cash from Investing Growth (YoY) 2.5%Cash from Financing Growth (YoY) -32.1%Levered FCF Growth (YoY) 33.7%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%5%10%15%20%25%Business Intelligence Software Stock Market Return: January - April 2013Business Intelligence S&P NASDAQ SEG SW Index
- 16. SEG Software Index Category: Development PlatformsCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDActuate Corporation BIRT $319.4 $252.1 $138.9 84.1% 15.2% 0.9% 1.8x 12.0x 1.7x 8.1x 15.5%Adobe Systems Incorporated ADBE $21,538.1 $19,408.8 $4,366.3 87.8% 29.7% 3.1% 4.4x 15.0x 4.7x 15.7x 11.1%BSQUARE Corporation BSQR $32.0 $12.6 $96.7 18.2% 1.5% 0.3% 0.1x 8.5x n/a n/a -5.6%Compuware Corporation CPWR $2,396.8 $2,324.9 $944.5 64.7% 14.9% -6.5% 2.5x 16.5x 2.3x 11.4x 3.8%Magic Software Enterprises Ltd. MGIC $197.8 $162.9 $129.8 41.1% 19.2% 10.1% 1.3x 6.5x n/a n/a 11.0%Microsoft Corporation MSFT $291,453.6 $232,430.6 $76,012.0 75.3% 40.1% 4.1% 3.1x 7.6x 2.8x 6.8x 28.2%Oracle Corporation ORCL $159,126.0 $145,913.0 $37,149.0 80.4% 46.5% 0.5% 3.9x 8.4x 3.8x 7.6x -0.8%Progress Software Corporation PRGS $1,296.3 $974.9 $337.3 87.2% 23.2% 7.5% 2.9x 12.4x 2.8x 8.7x 9.9%Red Hat, Inc. RHT $9,144.4 $8,264.9 $1,328.8 84.9% 20.4% 17.3% 6.2x 30.5x 5.4x 19.5x -11.8%Software AG XTRA:SOW $2,967.4 $2,888.6 $1,303.9 65.4% 26.2% -5.8% 2.2x 8.5x n/a n/a -15.8%Median: $2,682.1 $2,606.8 $1,124.2 77.8% 21.8% 2.0% 2.7x 10.3x 2.8x 8.7x 6.8%TTM Revenue Growth 2.0%TTM EBITDA Growth -5.1%TTM Earnings Growth -6.5%Gross Profit Margin 77.8%EBITDA Margin 21.8%Net Income Margin 13.6%SG&A Expenses as a % of Total Revenue 38.6%R&D Expenses as a % of Total Revenue 13.2%Current Ratio 2.4Quick Ratio 2.4Cash as Percent of Market Cap 20.0%Avg Days Outstanding: Accounts Receivable 77Avg Days Outstanding: Accounts Payable 26Working Capital to TTM Operating Expense Ratio 0.6xLevered FCF Margin 17.1%Cash from Operations Growth (YoY) 2.1%Cash from Investing Growth (YoY) 28.4%Cash from Financing Growth (YoY) 5.5%Levered FCF Growth (YoY) -5.5%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%Development Platforms Software Stock Market Return: January - April 2013Development Platforms S&P NASDAQ SEG SW Index
- 17. SEG Software Index Category: Engineering & PLMCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDANSYS, Inc. ANSS $6,943.9 $6,319.0 $810.4 87.6% 47.1% 12.8% 7.8x 16.6x 7.1x 14.3x 6.4%Autodesk, Inc. ADSK $8,463.7 $7,121.6 $2,294.0 89.2% 20.5% 0.8% 3.1x 15.2x 2.9x 10.2x 0.4%Cadence Design Systems, Inc CDNS $4,281.7 $3,823.1 $1,364.9 85.9% 23.0% 13.8% 2.8x 12.2x 2.6x 8.3x 6.2%Cimatron Ltd. CIMT $61.2 $57.6 $42.6 87.3% 14.7% 2.1% 1.4x 9.2x n/a n/a 61.8%Dassault Systèmes DSY $15,624.7 $13,747.8 $2,628.3 87.1% 31.0% 11.7% 5.2x 16.9x n/a n/a 7.5%GSE Systems Inc. GVP $29.9 $11.2 $51.2 33.0% 3.3% -1.8% 0.2x 6.6x 0.2x n/a -26.9%Mentor Graphics Corp MENT $2,136.9 $2,163.3 $1,067.3 83.4% 17.6% 3.4% 2.0x 11.5x 1.8x 7.4x 7.1%Parametric Technology Corporation PMTC $3,000.2 $3,067.5 $1,270.0 70.8% 18.8% 1.5% 2.4x 12.8x 2.3x 9.4x 6.3%Stratasys, Inc. SSYS $3,250.1 $3,109.9 $267.5 46.5% 19.8% 60.9% 11.6x 58.7x 6.8x 25.1x 7.2%Synopsys Inc SNPS $5,597.4 $5,036.3 $1,872.4 82.7% 22.2% 14.5% 2.7x 12.1x 2.5x 8.3x 11.5%Median: $3,765.9 $3,466.5 $1,168.7 84.6% 20.1% 7.5% 2.7x 12.5x 2.5x 9.4x 6.8%TTM Revenue Growth 7.5%TTM EBITDA Growth 10.9%TTM Earnings Growth 8.7%Gross Profit Margin 84.6%EBITDA Margin 20.1%Net Income Margin 10.4%SG&A Expenses as a % of Total Revenue 33.9%R&D Expenses as a % of Total Revenue 17.8%Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 12.2%Avg Days Outstanding: Accounts Receivable 86Avg Days Outstanding: Accounts Payable 45Working Capital to TTM Operating Expense Ratio 0.6xLevered FCF Margin 13.8%Cash from Operations Growth (YoY) 15.7%Cash from Investing Growth (YoY) 8.7%Cash from Financing Growth (YoY) -8.5%Levered FCF Growth (YoY) -9.7%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%20%Engineering & PLM Software Stock Market Return: January - April 2013Engineering & PLM S&P NASDAQ SEG SW Index
- 18. SEG Software Index Category: Enterprise Resource PlanningCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAmerican Software, Inc. AMSW.A $231.5 $179.4 $103.2 54.5% 16.0% 3.3% 1.7x 10.9x 1.6x n/a 8.8%Oracle Corporation ORCL $159,126.0 $145,913.0 $37,149.0 80.4% 46.5% 0.5% 3.9x 8.4x 3.8x 7.6x -0.8%QAD Inc. QADA $188.8 $130.7 $250.4 56.2% 4.1% -0.5% 0.5x 12.8x 0.5x 5.3x -8.2%Sage Group plc LSE:SGE $6,431.7 $6,780.5 $2,088.2 93.9% 29.6% 2.9% 3.2x 11.0x n/a n/a 14.7%SAP SAP $89,687.9 $90,264.8 $21,108.3 71.6% 33.8% 13.2% 4.3x 12.6x 3.8x 10.5x -6.8%Unit 4 ENXTAM:UN $1,046.0 $1,215.6 $619.4 92.4% 14.3% 5.4% 2.0x 13.7x n/a n/a 15.4%Median: $3,738.9 $3,998.1 $1,353.8 76.0% 22.8% 3.1% 2.6x 11.8x 2.7x 7.6x 4.0%TTM Revenue Growth 3.1%TTM EBITDA Growth -1.5%TTM Earnings Growth -13.2%Gross Profit Margin 76.0%EBITDA Margin 22.8%Net Income Margin 7.8%SG&A Expenses as a % of Total Revenue 34.4%R&D Expenses as a % of Total Revenue 13.4%Current Ratio 1.1Quick Ratio 1.0Cash as Percent of Market Cap 13.8%Avg Days Outstanding: Accounts Receivable 70Avg Days Outstanding: Accounts Payable 65Working Capital to TTM Operating Expense Ratio 0.1xLevered FCF Margin 12.2%Cash from Operations Growth (YoY) 4.8%Cash from Investing Growth (YoY) -96.5%Cash from Financing Growth (YoY) -58.8%Levered FCF Growth (YoY) 0.9%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-5%0%5%10%15%20%Enterprise Resource Planning Software Stock Market Return: January - April 2013Enterprise Resource Planning S&P NASDAQ SEG SW Index
- 19. SEG Software Index Category: Financial & AccountingCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDACI Worldwide, Inc. ACIW $1,853.4 $2,411.4 $691.0 64.2% 21.1% 38.7% 3.5x 16.5x 2.6x 8.6x 3.4%Bottomline Technologies EPAY $993.8 $845.9 $251.1 53.6% 8.8% 15.7% 3.4x 38.1x 3.1x 15.6x 0.2%DST Systems, Inc. DST $2,993.5 $3,577.7 $2,605.8 15.8% 14.7% 6.4% 1.4x 9.4x 1.8x 7.8x 11.7%Fair Isaac Corporation FICO $1,760.6 $2,133.4 $715.9 69.5% 26.2% 11.7% 3.0x 11.4x 2.7x 8.3x 14.7%Fiserv FISV $11,606.5 $15,299.5 $4,537.0 42.1% 29.7% 3.4% 3.4x 11.3x 3.1x 9.5x 8.0%Intuit Inc INTU $17,352.3 $15,856.3 $4,444.0 83.2% 33.7% 10.7% 3.6x 10.6x 3.3x 8.4x -3.8%Model N, Inc MODN $460.8 $356.2 $92.9 55.7% 4.7% n/a 3.8x 82.1x 3.2x n/a 0.0%NetSol Technologies Inc. KASE:NETS $21.9 $25.3 $31.6 59.7% 52.6% 61.5% 0.8x 1.5x n/a n/a 43.0%Sage Group plc LSE:SGE $6,431.7 $6,780.5 $2,088.2 93.9% 29.6% 2.9% 3.2x 11.0x n/a n/a 14.7%Median: $1,807.0 $2,272.4 $703.4 57.7% 23.7% 11.7% 3.4x 11.4x 3.1x 8.5x 5.7%TTM Revenue Growth 11.7%TTM EBITDA Growth 3.9%TTM Earnings Growth 14.4%Gross Profit Margin 57.7%EBITDA Margin 23.7%Net Income Margin 11.7%SG&A Expenses as a % of Total Revenue 34.3%R&D Expenses as a % of Total Revenue 16.0%Current Ratio 1.5Quick Ratio 1.4Cash as Percent of Market Cap 11.5%Avg Days Outstanding: Accounts Receivable 71Avg Days Outstanding: Accounts Payable 37Working Capital to TTM Operating Expense Ratio 0.2xLevered FCF Margin 13.7%Cash from Operations Growth (YoY) 0.2%Cash from Investing Growth (YoY) -15.6%Cash from Financing Growth (YoY) 76.1%Levered FCF Growth (YoY) 5.6%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%Financial & Accounting Software Stock Market Return: January - April 2013Financial & Accounting S&P NASDAQ SEG SW Index
- 20. SEG Software Index Category: GamingCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDActivision Blizzard ATVI $16,126.1 $11,508.1 $5,008.0 66.3% 33.3% 11.8% 2.3x 6.9x 2.8x 8.5x 41.4%Electronic Arts Inc. EA $6,957.6 $5,836.6 $3,797.0 64.3% 8.6% -8.4% 1.5x 18.0x 1.5x 8.2x 59.2%GameLoft SA ENXTPA:GF $570.1 $498.0 $274.7 84.6% 15.6% 26.7% 1.8x 11.6x n/a n/a 4.3%Konami Corporation TSE: 9766 $3,412.0 $3,128.2 $2,399.2 32.4% 14.3% -15.0% 1.3x 9.1x 1.3x 7.6x 16.0%Take-Two Interactive TTWO $1,528.7 $1,461.4 $1,214.5 41.1% 1.9% 47.1% 1.2x 63.9x 0.8x 4.6x 43.3%Ubisoft Entertainment ENXTPA:UB $1,253.2 $1,108.9 $1,609.5 72.7% 9.4% 18.4% 0.7x 7.3x n/a n/a 24.4%Median: $2,470.3 $2,294.8 $2,004.4 65.3% 11.9% 15.1% 1.4x 10.4x 1.4x 7.9x 32.9%TTM Revenue Growth 15.1%TTM EBITDA Growth 18.9%TTM Earnings Growth 27.7%Gross Profit Margin 65.3%EBITDA Margin 11.9%Net Income Margin 4.8%SG&A Expenses as a % of Total Revenue 27.8%R&D Expenses as a % of Total Revenue 30.4%Current Ratio 2.6Quick Ratio 1.7Cash as Percent of Market Cap 24.6%Avg Days Outstanding: Accounts Receivable 43Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 6.7%Cash from Operations Growth (YoY) 12.5%Cash from Investing Growth (YoY) -9.4%Cash from Financing Growth (YoY) 68.2%Levered FCF Growth (YoY) 36.6%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-10%-5%0%5%10%15%20%25%30%35%40%Gaming Software Stock Market Return: January - April 2013Gaming S&P NASDAQ SEG SW Index
- 21. SEG Software Index Category: HealthcareCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAccretive Health AH $1,106.9 $910.5 $973.6 20.7% 2.9% 32.2% 0.9x 31.8x 0.9x 11.8x -3.7%Allscripts Healthcare Solutions Inc. MDRX $2,446.8 $2,922.1 $1,428.7 41.3% 7.4% -3.0% 2.0x 27.6x 2.0x 10.5x 45.0%Cerner Corporation CERN $16,871.6 $16,048.9 $2,645.9 80.4% 28.2% 14.7% 6.1x 21.5x 5.2x 16.3x 20.8%Computer Programs and Sys, Inc. CPSI $554.9 $537.4 $188.4 44.3% 24.2% 6.1% 2.9x 11.8x 2.7x 10.1x -0.2%Greenway Medical Technologies, Inc GWAY $357.0 $343.7 $135.7 54.5% 1.4% 15.9% 2.5x 180.8x 2.4x 75.8x -26.0%MedAssets MDAS $999.1 $1,865.9 $663.1 78.6% 31.7% 11.0% 2.8x 8.9x 2.7x 8.5x -4.3%Merge Healthcare MRGE $308.4 $513.8 $251.6 59.3% 11.5% 4.5% 2.0x 17.7x 1.9x 9.4x 18.3%Quality Systems, Inc. QSII $1,064.8 $946.8 $460.2 58.8% 21.9% 7.1% 2.1x 9.4x 2.0x 8.2x 0.9%Median: $1,032.0 $928.7 $561.6 56.6% 16.7% 9.0% 2.3x 19.6x 2.2x 10.3x 0.3%TTM Revenue Growth 9.0%TTM EBITDA Growth -19.8%TTM Earnings Growth -43.5%Gross Profit Margin 56.6%EBITDA Margin 16.7%Net Income Margin 1.7%SG&A Expenses as a % of Total Revenue 34.5%R&D Expenses as a % of Total Revenue 11.8%Current Ratio 2.2Quick Ratio 1.6Cash as Percent of Market Cap 6.0%Avg Days Outstanding: Accounts Receivable 69Avg Days Outstanding: Accounts Payable 38Working Capital to TTM Operating Expense Ratio 0.2xLevered FCF Margin 9.0%Cash from Operations Growth (YoY) 3.8%Cash from Investing Growth (YoY) -40.5%Cash from Financing Growth (YoY) -68.9%Levered FCF Growth (YoY) 3.2%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%Healthcare Software Stock Market Return: January - April 2013Healthcare S&P NASDAQ SEG SW Index
- 22. SEG Software Index Category: IT ConglomeratesCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDHewlett Packard HPQ $47,472.9 $61,422.9 $115,569.0 23.6% 12.0% -6.8% 0.5x 4.4x 0.6x 4.3x 69.1%IBM IBM $230,651.3 $252,112.3 $103,242.0 48.3% 25.6% -3.5% 2.4x 9.6x 2.4x 8.7x 6.8%Microsoft Corporation MSFT $291,453.6 $232,430.6 $76,012.0 75.3% 40.1% 4.1% 3.1x 7.6x 2.8x 6.8x 28.2%Oracle Corporation ORCL $159,126.0 $145,913.0 $37,149.0 80.4% 46.5% 0.5% 3.9x 8.4x 3.8x 7.6x -0.8%SAP AG SAP $89,687.9 $90,264.8 $21,108.3 71.6% 33.8% 13.2% 4.3x 12.6x 3.8x 10.5x -6.8%Median: $159,126.0 $145,913.0 $76,012.0 71.6% 33.8% 0.5% 3.1x 8.4x 2.8x 7.6x 6.8%TTM Revenue Growth 0.5%TTM EBITDA Growth -0.2%TTM Earnings Growth -19.9%Gross Profit Margin 71.6%EBITDA Margin 33.8%Net Income Margin 17.6%SG&A Expenses as a % of Total Revenue 22.3%R&D Expenses as a % of Total Revenue 13.0%Current Ratio 1.2Quick Ratio 1.1Cash as Percent of Market Cap 21.0%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 53Working Capital to TTM Operating Expense Ratio 0.1xLevered FCF Margin 27.0%Cash from Operations Growth (YoY) 1.9%Cash from Investing Growth (YoY) 15.3%Cash from Financing Growth (YoY) 3.3%Levered FCF Growth (YoY) 27.2%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-5%0%5%10%15%20%IT Conglomerates Software Stock Market Return: January - April 2013IT Conglomerates S&P NASDAQ SEG SW Index
- 23. SEG Software Index Category: Mobile Solutions/ContentCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDBango PLC BGO $135.6 $132.3 $17.6 19.1% -22.1% -34.4% 7.5x n/a n/a n/a -1.0%Glu Mobile, Inc. GLUU $185.6 $164.3 $85.1 90.2% -10.4% 19.3% 1.9x n/a 1.8x n/a 13.6%Gree TSE:3632 $2,322.9 $2,174.5 $1,648.9 85.7% 40.4% 11.5% 1.3x 3.3x n/a n/a -36.6%Millennial Media Inc MM $627.5 $494.1 $194.2 40.9% -0.9% 68.7% 2.5x n/a 1.7x 24.5x -39.0%Myriad Group AG MYRN $159.6 $162.1 $56.3 19.1% -18.6% -7.8% 2.9x n/a n/a n/a -5.0%NQ Mobile Inc. NQ $421.1 $306.4 $109.0 69.9% 5.5% 122.4% 2.8x 51.5x 1.6x 4.8x 32.7%Opera OB:OPERA $909.9 $856.6 $231.1 43.9% 27.2% 35.9% 3.7x 13.6x n/a n/a 26.4%Qihoo 360 Technology Co. Ltd QIHU $5,378.6 $5,077.7 $369.6 89.4% 17.9% 72.6% 13.7x 76.7x 7.7x 28.0x 47.7%Pandora Media P $2,975.1 $2,899.7 $471.9 32.0% -8.2% 55.2% 6.1x n/a 4.3x 118.3x 78.8%Synchronoss Technologies, Inc. SNCR $1,203.1 $1,145.9 $287.4 58.5% 21.8% 19.4% 4.0x 18.3x 3.2x 9.3x 44.8%Tangoe, Inc. TNGO $556.3 $525.9 $165.2 54.2% 8.7% 41.5% 3.2x 36.8x 2.6x 15.8x 15.8%TeleCommunication Systems TSYS $138.3 $239.0 $482.1 33.5% 7.9% 10.8% 0.5x 6.3x 0.5x 5.0x -12.0%TeleNav TNAV $202.0 $14.4 $209.2 68.9% 11.3% 0.4% 0.1x 0.6x 0.1x 3.7x -36.5%Velti Plc VELT $155.6 $186.5 $259.6 51.6% -1.8% 22.8% 0.7x n/a 0.8x 20.3x -62.5%Zynga, Inc ZNGA $2,699.2 $1,530.5 $1,223.9 72.9% 11.7% 0.5% 1.3x 10.6x 1.6x 24.5x 43.1%Median: $556.3 $494.1 $231.1 54.2% 7.9% 19.4% 2.8x 13.6x 1.7x 18.1x 13.6%TTM Revenue Growth 19.4%TTM EBITDA Growth 10.9%TTM Earnings Growth -25.6%Gross Profit Margin 54.2%EBITDA Margin 7.9%Net Income Margin -2.7%SG&A Expenses as a % of Total Revenue 35.6%R&D Expenses as a % of Total Revenue 15.2%Current Ratio 2.1Quick Ratio 1.9Cash as Percent of Market Cap 10.5%Avg Days Outstanding: Accounts Receivable 73Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.0xLevered FCF Margin 6.5%Cash from Operations Growth (YoY) 3.1%Cash from Investing Growth (YoY) -10.0%Cash from Financing Growth (YoY) -4.7%Levered FCF Growth (YoY) -1.3%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-5%0%5%10%15%20%25%Mobile Solutions/Content Software Stock Market Return: January - April 2013Mobile Solutions/Content S&P NASDAQ SEG SW Index
- 24. SEG Software Index Category: Networking/Network Performance MgmtCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAllot Communications Ltd. ALLT $402.5 $267.8 $104.6 70.5% 7.5% 23.4% 2.6x 33.9x 2.3x 10.7x -34.9%Aruba Networks, Inc. ARUN $1,701.2 $1,260.3 $586.2 70.9% 6.1% 19.3% 2.1x 35.3x 2.0x 10.0x -32.8%Brocade Communications Systems, BRCD $2,409.7 $2,244.7 $2,261.2 62.3% 21.9% 4.8% 1.0x 4.5x 1.0x 4.1x -6.8%Cisco Systems, Inc. CSCO $128,878.7 $97,748.7 $47,880.0 60.9% 27.6% 5.1% 2.0x 7.4x 1.9x 6.1x 19.5%Compuware Corporation CPWR $2,396.8 $2,324.9 $944.5 64.7% 14.9% -6.5% 2.5x 16.5x 2.3x 11.4x 3.8%F5 Networks, Inc. FFIV $6,556.9 $6,034.0 $1,430.9 82.9% 32.4% 12.9% 4.2x 13.0x 3.9x 10.3x -17.6%Juniper Networks, Inc. JNPR $8,975.9 $7,318.8 $4,392.1 63.7% 15.0% 0.3% 1.7x 11.1x 1.6x 6.2x -12.5%Keynote Systems, Inc. KEYN $232.5 $174.5 $123.9 46.9% 11.9% 5.2% 1.4x 11.8x 1.4x 9.6x -13.0%Riverbed Technology, Inc. RVBD $2,526.5 $2,642.1 $900.6 74.8% 15.3% 20.8% 2.9x 19.2x 2.4x 8.6x -27.4%Median: $2,409.7 $2,324.9 $944.5 64.7% 15.0% 5.2% 2.1x 13.0x 2.0x 9.6x -13.0%TTM Revenue Growth 5.2%TTM EBITDA Growth 6.5%TTM Earnings Growth -23.8%Gross Profit Margin 64.7%EBITDA Margin 15.0%Net Income Margin 4.9%SG&A Expenses as a % of Total Revenue 42.6%R&D Expenses as a % of Total Revenue 17.7%Current Ratio 2.3Quick Ratio 2.0Cash as Percent of Market Cap 25.4%Avg Days Outstanding: Accounts Receivable 47Avg Days Outstanding: Accounts Payable 49Working Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 16.8%Cash from Operations Growth (YoY) 6.9%Cash from Investing Growth (YoY) -33.4%Cash from Financing Growth (YoY) -97.4%Levered FCF Growth (YoY) 5.3%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)June 2013 Monthly Flash Report-25%-20%-15%-10%-5%0%5%10%15%20%Networking/Network Performance Mgmt Software Stock Market Return: January - April 2013Networking & Network Performance Management S&P NASDAQ SEG SW Index
- 25. SEG Software Index Category: SecurityCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAVG Technologies N.V. AVG $985.3 $999.6 $377.7 84.7% 31.4% 28.2% 2.6x 8.4x 2.3x 7.1x 12.0%Check Point Software Tech Ltd. CHKP $9,837.5 $8,452.4 $1,352.3 88.4% 56.4% 5.7% 6.3x 11.1x 6.0x 10.2x 1.4%Commtouch Software Ltd. CTCH $74.5 $69.6 $25.9 80.4% 1.5% 10.9% 2.7x 178.0x 1.9x n/a -11.0%Fortinet Inc. FTNT $3,124.5 $2,664.1 $552.2 71.8% 19.8% 20.7% 4.8x 24.3x 4.3x 19.3x -10.7%Guidance Software, Inc. GUID $259.7 $234.1 $130.4 70.7% 1.6% 21.8% 1.8x 109.3x 1.7x 50.9x -25.8%Imperva IMPV $976.6 $865.5 $111.3 78.8% -7.1% 33.5% 7.8x n/a 6.1x 123.3x 21.6%Palo Alto Networks, Inc PANW $3,354.3 $2,992.6 $359.4 71.9% -1.9% 63.6% 8.3x n/a 6.0x 51.9x 6.9%Proofpoint, Inc. PFPT $688.3 $601.6 $112.4 69.9% -12.4% 28.2% 5.4x n/a 4.5x n/a 55.4%Symantec Corporation SYMC $15,597.7 $13,941.7 $6,906.0 84.0% 27.3% 2.6% 2.0x 7.4x 2.0x 5.8x 17.4%Trend Micro TSE:4704 $4,087.0 $2,906.8 $1,029.7 80.9% 32.8% 2.1% 2.8x 8.6x n/a n/a 3.1%VASCO Data Security International VDSI $324.0 $219.3 $157.1 64.1% 16.0% -4.3% 1.4x 8.7x 1.3x 8.1x 3.7%Websense, Inc. WBSN $910.6 $896.6 $359.4 83.5% 15.1% -1.5% 2.5x 16.5x 2.5x 14.7x 61.0%Median: $980.9 $948.1 $359.4 79.6% 15.6% 15.8% 2.8x 11.1x 2.5x 14.7x 5.3%TTM Revenue Growth 15.8%TTM EBITDA Growth -6.0%TTM Earnings Growth -13.0%Gross Profit Margin 79.6%EBITDA Margin 15.6%Net Income Margin 4.3%SG&A Expenses as a % of Total Revenue 50.4%R&D Expenses as a % of Total Revenue 16.9%Current Ratio 1.6Quick Ratio 1.5Cash as Percent of Market Cap 11.5%Avg Days Outstanding: Accounts Receivable 69Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 9.3%Cash from Operations Growth (YoY) 19.6%Cash from Investing Growth (YoY) -4.9%Cash from Financing Growth (YoY) -17.6%Levered FCF Growth (YoY) -18.8%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-10%-5%0%5%10%15%20%Security Software Stock Market Return: January - April 2013Security S&P NASDAQ SEG SW Index
- 26. SEG Software Index Category: Storage, Data Management & IntegrationCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDBrocade Communications Systems, BRCD $2,409.7 $2,244.7 $2,261.2 62.3% 21.9% 4.8% 1.0x 4.5x 1.0x 4.1x -6.8%CA, Inc. CA $12,396.0 $11,035.0 $4,643.0 86.3% 36.1% -3.6% 2.4x 6.6x 2.5x 7.0x 21.9%Cisco Systems, Inc. CSCO $128,878.7 $97,748.7 $47,880.0 60.9% 27.6% 5.1% 2.0x n/a 1.9x 6.1x 19.5%CommVault Systems, Inc. CVLT $3,256.2 $2,820.3 $495.9 86.9% 17.3% 21.9% 5.7x 32.9x 4.9x 20.5x -3.1%EMC EMC $52,016.8 $48,362.3 $22,006.9 62.7% 23.8% 7.4% 2.2x 9.2x 2.0x 7.5x -4.8%FalconStor Software, Inc. FALC $64.3 $36.9 $71.3 72.3% -15.1% -14.4% 0.5x n/a n/a n/a -39.4%IBM IBM $230,651.3 $252,112.3 $103,242.0 48.3% 25.6% -3.5% 2.4x 9.6x 2.4x 8.7x 6.8%Informatica Corporation INFA $3,929.7 $3,338.7 $829.9 83.5% 20.4% 2.2% 4.0x 19.7x 3.6x 13.5x 17.5%Microsoft Corporation MSFT $291,453.6 $232,430.6 $76,012.0 75.3% 40.1% 4.1% 3.1x 7.6x 2.8x 6.8x 28.2%NetApp, Inc. NTAP $13,526.1 $8,825.9 $6,332.4 59.4% 15.1% 1.6% 1.4x 9.3x 1.3x 6.1x 10.0%Oracle Corporation ORCL $159,126.0 $145,913.0 $37,149.0 80.4% 46.5% 0.5% 3.9x 8.4x 3.8x 7.6x -0.8%Splunk, Inc. SPLK $4,816.8 $4,485.5 $219.0 89.1% -12.0% 59.2% 20.5x n/a 15.4x n/a 56.8%TIBCO Software Inc. TIBX $3,500.1 $3,257.8 $1,036.7 72.0% 20.3% 7.9% 3.1x 15.5x 3.0x 11.2x -3.8%Median: $12,396.0 $8,825.9 $4,643.0 72.3% 21.9% 4.1% 2.4x 9.2x 2.6x 7.5x 6.8%TTM Revenue Growth 4.1%TTM EBITDA Growth 1.5%TTM Earnings Growth 3.2%Gross Profit Margin 72.3%EBITDA Margin 21.9%Net Income Margin 10.7%SG&A Expenses as a % of Total Revenue 35.5%R&D Expenses as a % of Total Revenue 13.4%Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 22.5%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 39Working Capital to TTM Operating Expense Ratio 0.7xLevered FCF Margin 17.7%Cash from Operations Growth (YoY) 3.1%Cash from Investing Growth (YoY) -7.4%Cash from Financing Growth (YoY) 29.5%Levered FCF Growth (YoY) 6.3%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)June 2013 Monthly Flash Report-2%0%2%4%6%8%10%12%14%16%18%Storage, Data Management & Integration Software Stock Market Return: January - April 2013Storage, Data Management & Integration S&P NASDAQ SEG SW Index
- 27. SEG Software Index Category: Supply Chain Management & LogisticsCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAmerican Software, Inc. AMSW.A $231.5 $179.4 $103.2 54.5% 16.0% 3.3% 1.7x 10.9x 1.6x n/a 8.8%Aspen Technology, Inc. AZPN $2,869.4 $2,699.8 $292.1 82.7% 13.8% 26.1% 9.2x 67.1x 7.8x 30.8x 10.2%Manhattan Associates, Inc. MANH $1,460.2 $1,351.7 $381.4 56.3% 23.0% 9.3% 3.5x 15.4x 3.2x 12.4x 17.8%The Descartes Systems Group Inc. TSX:DSG $697.1 $653.5 $131.1 67.7% 29.1% 12.2% 5.0x 17.2x 4.2x 14.3x 13.5%Unit 4 ENXTAM:UN $1,046.0 $1,215.6 $619.4 92.4% 14.3% 5.4% 2.0x 13.7x n/a n/a 15.4%Median: $1,046.0 $1,215.6 $292.1 67.7% 16.0% 9.3% 3.5x 15.4x 3.7x 14.3x 13.5%TTM Revenue Growth 9.3%TTM EBITDA Growth 15.4%TTM Earnings Growth -4.7%Gross Profit Margin 67.7%EBITDA Margin 16.0%Net Income Margin 10.5%SG&A Expenses as a % of Total Revenue 31.0%R&D Expenses as a % of Total Revenue 14.2%Current Ratio 2.0Quick Ratio 1.9Cash as Percent of Market Cap 7.4%Avg Days Outstanding: Accounts Receivable 58Avg Days Outstanding: Accounts Payable 14Working Capital to TTM Operating Expense Ratio 0.3xLevered FCF Margin 17.2%Cash from Operations Growth (YoY) 43.8%Cash from Investing Growth (YoY) -181.0%Cash from Financing Growth (YoY) 16.8%Levered FCF Growth (YoY) 21.2%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%2%4%6%8%10%12%14%16%18%Supply Chain Management & Logistics Software Stock Market Return: January - April 2013Supply Chain Management & Logistics S&P NASDAQ SEG SW Index
- 28. SEG Software Index Category: Systems ManagementCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDBMC Software Inc. BMC $6,461.5 $6,292.1 $2,201.4 73.1% 27.8% 1.4% 2.9x 10.3x 2.7x 7.5x 10.2%CA Technologies CA $12,396.0 $11,035.0 $4,643.0 86.3% 36.1% -3.6% 2.4x 6.6x 2.5x 7.0x 21.9%Citrix Systems, Inc. CTXS $12,047.0 $11,389.1 $2,669.5 87.1% 22.5% 15.8% 4.3x 19.0x 3.7x 11.8x -5.8%Netscout Systems, Inc. NTCT $1,007.7 $870.5 $350.6 79.0% 24.2% 13.6% 2.5x 10.3x 2.2x 7.9x -9.8%Red Hat, Inc. RHT $9,144.4 $8,264.9 $1,328.8 84.9% 20.4% 17.3% 6.2x 30.5x 5.4x 19.5x -11.8%SolarWinds, Inc. SWI $3,169.6 $2,903.8 $282.2 93.0% 49.3% 31.2% 10.3x 20.9x 8.1x 15.9x -22.9%VMWare, Inc. VMW $30,452.0 $25,965.3 $4,741.3 84.6% 24.7% 19.2% 5.5x 22.2x 4.8x 11.9x -23.7%Median: $9,144.4 $8,264.9 $2,201.4 84.9% 24.7% 15.8% 4.3x 19.0x 3.7x 11.8x -9.8%TTM Revenue Growth 15.8%TTM EBITDA Growth 3.5%TTM Earnings Growth -0.9%Gross Profit Margin 84.9%EBITDA Margin 24.7%Net Income Margin 15.0%SG&A Expenses as a % of Total Revenue 43.0%R&D Expenses as a % of Total Revenue 15.9%Current Ratio 1.5Quick Ratio 1.3Cash as Percent of Market Cap 13.6%Avg Days Outstanding: Accounts Receivable 75Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.3xLevered FCF Margin 19.2%Cash from Operations Growth (YoY) 8.1%Cash from Investing Growth (YoY) -4.9%Cash from Financing Growth (YoY) 12.5%Levered FCF Growth (YoY) -6.6%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-15%-10%-5%0%5%10%15%20%Systems Management Software Stock Market Return: January - April 2013Systems Management S&P NASDAQ SEG SW Index
- 29. SEG Software Index Category: Vertical - FinanceCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAdvent Software, Inc. ADVS $1,705.2 $1,612.1 $364.4 69.3% 22.7% 7.9% 4.4x 19.5x 4.2x 14.9x 48.9%Broadridge Financial BR $3,290.0 $3,632.3 $2,366.0 26.9% 15.4% 3.8% 1.5x 10.0x 1.5x 7.9x 17.1%Fidessa LSE:FDSA $1,097.5 $988.2 $452.9 21.3% 20.4% 0.1% 2.2x 10.7x n/a n/a 22.0%Jack Henry & Associates, Inc. JKHY $4,041.2 $3,991.8 $1,097.8 42.0% 31.9% 8.7% 3.6x 11.4x 3.4x 10.1x 14.6%MSCI, Inc. MSCI $4,254.2 $4,820.1 $973.0 69.6% 45.0% 7.3% 5.0x 11.0x 4.7x 10.9x 9.6%SS&C Corporation SSNC $2,646.6 $3,545.3 $631.4 44.5% 38.5% 68.1% 5.6x 14.6x 4.8x 11.9x 36.6%Median: $2,968.3 $3,588.8 $802.2 43.3% 27.3% 7.6% 4.0x 11.2x 4.2x 10.9x 19.6%TTM Revenue Growth 7.6%TTM EBITDA Growth 7.0%TTM Earnings Growth 5.6%Gross Profit Margin 43.3%EBITDA Margin 27.3%Net Income Margin 10.3%SG&A Expenses as a % of Total Revenue 13.5%R&D Expenses as a % of Total Revenue 8.1%Current Ratio 1.5Quick Ratio 1.2Cash as Percent of Market Cap 5.9%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 9Working Capital to TTM Operating Expense Ratio 0.2xLevered FCF Margin 17.6%Cash from Operations Growth (YoY) 3.4%Cash from Investing Growth (YoY) -7.0%Cash from Financing Growth (YoY) 5.7%Levered FCF Growth (YoY) 8.8%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedCash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)0%5%10%15%20%25%Vertical - Finance Software Stock Market Return:January - April 2013Vertical - Finance S&P NASDAQ SEG SW Index
- 30. SEG Software Index Category: Vertical - OtherCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDBlackbaud, Inc. BLKB $1,384.8 $1,588.5 $468.3 54.1% 15.3% 23.6% 3.4x 22.1x 3.1x 15.0x 28.5%Constellation TSX:CSU $3,114.3 $3,175.8 $952.4 32.5% 19.9% 20.4% 3.3x 16.8x 2.8x 14.8x 16.2%EPIQ Systems, Inc. EPIQ $439.8 $664.4 $364.8 54.5% 20.5% 25.9% 1.8x 8.9x 1.7x 6.7x -6.5%Guidewire Software, Inc. GWRE $2,312.2 $2,158.1 $271.3 55.0% 3.6% 25.9% 8.0x 218.5x 6.6x 56.1x 34.6%Micros Systems MCRS $3,319.4 $2,657.2 $1,242.0 52.8% 21.4% 15.1% 2.1x 10.0x 2.0x 9.1x -2.9%PROS Holdings PRO $807.6 $725.1 $124.4 70.7% 7.6% 21.7% 5.8x 76.6x 4.8x 29.2x 46.8%Sapiens International SPNS $200.4 $174.8 $119.4 40.8% 13.5% 44.6% 1.5x 10.8x n/a n/a 36.1%Silver Spring Networks, Inc. SSNI $968.7 $827.8 $195.0 16.3% -51.1% -20.7% 4.2x n/a 2.1x 24.3x -5.7%The Active Network, Inc. ACTV $412.7 $310.1 $430.5 54.7% 2.6% 19.9% 0.7x 28.1x 0.7x 6.3x 29.5%Median: $968.7 $827.8 $364.8 54.1% 13.5% 21.7% 3.3x 19.4x 2.5x 14.9x 28.5%TTM Revenue Growth 21.7%TTM EBITDA Growth 8.4%TTM Earnings Growth -18.3%Gross Profit Margin 54.1%EBITDA Margin 13.5%Net Income Margin 5.5%SG&A Expenses as a % of Total Revenue 30.9%R&D Expenses as a % of Total Revenue 16.7%Current Ratio 1.4Quick Ratio 1.1Cash as Percent of Market Cap 8.4%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 31Working Capital to TTM Operating Expense Ratio 0.2xLevered FCF Margin 11.7%Cash from Operations Growth (YoY) 7.9%Cash from Investing Growth (YoY) -244.7%Cash from Financing Growth (YoY) -43.4%Levered FCF Growth (YoY) 17.9%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportBalance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)Income Statement Analysis (Median)0%5%10%15%20%25%30%35%40%Vertical - Other Software Stock Market Return: January - April 2013Vertical - Other S&P NASDAQ SEG SW Index
- 31. SEG SaaS IndexCategory PerformanceCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 32. SEG SaaS Index: All CategoriesMarket Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDSEG SaaS Index $866.8 $796.2 $170.5 70.0% 7.5% 25.5% 4.8x 35.3x 4.4x 21.6x 12.5%CRM & Marketing $482.8 $377.4 $182.2 70.9% 2.2% 26.7% 2.5x 29.1x 2.3x 22.2x -2.0%ERP & Supply Chain $810.3 $737.7 $84.3 68.9% 3.9% 31.5% 6.9x 132.5x 5.4x 38.4x 24.6%Vertically Focused $1,430.3 $1,415.6 $284.0 66.1% 16.0% 21.5% 4.5x 25.8x 3.7x 15.0x 8.5%Workforce Management $2,074.0 $2,004.7 $131.6 58.5% -15.4% 43.1% 8.5x 62.0x 8.5x 28.1x 17.0%Category NameTTM Revenue Growth 25.5%TTM EBITDA Growth -16.3%TTM Earnings Growth -30.3%Gross Profit Margin 70.0%EBITDA Margin 7.5%Net Income Margin 0.0%SG&A Expenses as a % of Total Revenue 53.9%R&D Expenses as a % of Total Revenue 16.3%Current Ratio 1.8Quick Ratio 1.6Cash as Percent of Market Cap 9.7%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 28Working Capital to TTM Operating Expense Ratio 0.3xLevered FCF Margin 8.8%Cash from Operations Growth (YoY) 22.9%Cash from Investing Growth (YoY) -171.9%Cash from Financing Growth (YoY) 56.1%Levered FCF Growth (YoY) 6.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-5%0%5%10%15%20%SEG SaaS Index Stock Market Return: January - April 2013DOW S&P NASDAQ SEG SaaS
- 33. SEG SaaS Index Category: CRM & MarketingCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDBazaarvoice, Inc BV $545.2 $439.7 $148.4 65.4% -18.2% 57.9% 3.0x n/a 2.4x n/a -24.8%Constant Contact CTCT $458.2 $360.9 $260.4 70.9% 7.3% 16.1% 1.4x 19.0x 1.2x 7.8x 1.3%ExactTarget, Inc. ET $1,594.1 $1,493.1 $317.1 64.7% -0.2% 39.4% 4.7x n/a 3.8x 235.7x 9.6%LivePerson LPSN $508.9 $414.1 $163.1 76.8% 8.7% 17.0% 2.5x 29.1x 2.3x 19.7x -31.9%Marin Software MRIN $390.7 $281.2 $63.7 57.8% -39.9% n/a 4.4x n/a 3.5x n/a -25.3%Responsys MKTG $482.8 $377.4 $173.3 54.1% 11.2% 21.3% 2.2x 19.4x 1.9x 13.2x 51.8%Salesforce.com CRM $24,971.9 $24,566.5 $3,247.4 77.2% 2.2% 32.1% 7.6x 339.1x 6.0x 32.7x -2.0%Vocus VOCS $184.4 $221.8 $182.2 80.2% 1.4% 48.4% 1.2x 86.8x 1.2x 24.8x -53.0%Median: $482.8 $377.4 $182.2 70.9% 2.2% 26.7% 2.5x 29.1x 2.3x 22.2x -2.0%TTM Revenue Growth 26.7%TTM EBITDA Growth -22.2%TTM Earnings Growth -53.3%Gross Profit Margin 70.9%EBITDA Margin 2.2%Net Income Margin -8.8%SG&A Expenses as a % of Total Revenue 54.7%R&D Expenses as a % of Total Revenue 15.2%Current Ratio 1.9Quick Ratio 1.7Cash as Percent of Market Cap 21.2%Avg Days Outstanding: Accounts Receivable 57Avg Days Outstanding: Accounts Payable 28Working Capital to TTM Operating Expense Ratio 0.2xLevered FCF Margin 5.6%Cash from Operations Growth (YoY) 7.5%Cash from Investing Growth (YoY) -115.3%Cash from Financing Growth (YoY) -79.6%Levered FCF Growth (YoY) -7.8%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedCash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)-40%-30%-20%-10%0%10%20%CRM & Marketing SaaS Stock Market Return: January - April 2013CRM & Marketing S&P NASDAQ SEG SaaS
- 34. SEG SaaS Index Category: ERP & Supply ChainCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDE2open, Inc EOPN $371.7 $337.6 $74.9 68.9% 0.8% 25.6% 4.5x 580.0x 4.4x n/a 1.9%Fleetmatics FLTX $1,030.5 $952.5 $138.0 73.2% 20.4% 39.6% 6.9x 33.8x 5.4x 19.0x 20.0%Netsuite N $6,463.3 $6,286.6 $331.1 68.5% -6.3% 31.3% 19.0x n/a 14.5x 148.2x 24.6%SciQuest SQI $521.3 $475.2 $72.7 68.8% 3.9% 31.5% 6.5x 166.3x 4.9x 23.4x 43.1%SPS Commerce SPSC $810.3 $737.7 $84.3 70.8% 8.9% 36.3% 8.7x 98.7x 7.0x 53.4x 34.8%Median: $810.3 $737.7 $84.3 68.9% 3.9% 31.5% 6.9x 132.5x 5.4x 38.4x 24.6%TTM Revenue Growth 31.5%TTM EBITDA Growth -22.9%TTM Earnings Growth -52.1%Gross Profit Margin 68.9%EBITDA Margin 3.9%Net Income Margin -0.9%SG&A Expenses as a % of Total Revenue 55.7%R&D Expenses as a % of Total Revenue 17.6%Current Ratio 1.4Quick Ratio 1.2Cash as Percent of Market Cap 9.0%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 24Working Capital to TTM Operating Expense Ratio 0.2xLevered FCF Margin 15.2%Cash from Operations Growth (YoY) 79.3%Cash from Investing Growth (YoY) -141.1%Cash from Financing Growth (YoY) 1009.3%Levered FCF Growth (YoY) 62.7%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedCash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)-5%0%5%10%15%20%25%30%ERP & Supply Chain SaaS Stock Market Return: January - April 2013ERP & Supply Chain S&P NASDAQ SEG SaaS
- 35. SEG SaaS Index Category: Vertically FocusedCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAthenahealth, Inc ATHN $3,106.5 $3,163.6 $451.3 59.8% 9.6% 28.7% 7.0x 72.7x 4.9x 26.0x 12.8%DealerTrack TRAK $1,402.1 $1,395.5 $406.3 43.2% 13.8% 10.5% 3.4x 25.0x 3.0x 11.6x 4.2%Ebix Inc. EBIX $737.5 $771.2 $208.1 81.3% 41.8% 20.5% 3.7x 8.9x 3.5x n/a 21.5%Ellie Mae ELLI $589.1 $528.6 $111.8 77.2% 24.8% 69.9% 4.7x 19.0x 3.8x 11.1x -20.5%Medidata Solutions MDSO $1,835.2 $1,714.9 $231.2 71.8% 16.0% 19.2% 7.4x 46.4x 6.0x 26.1x 64.1%RealPage RP $1,458.4 $1,435.7 $336.7 60.4% 16.0% 22.5% 4.3x 26.7x 3.6x 15.0x -12.1%Median: $1,430.3 $1,415.6 $284.0 66.1% 16.0% 21.5% 4.5x 25.8x 3.7x 15.0x 8.5%TTM Revenue Growth 21.5%TTM EBITDA Growth 6.9%TTM Earnings Growth -3.1%Gross Profit Margin 66.1%EBITDA Margin 16.0%Net Income Margin 6.2%SG&A Expenses as a % of Total Revenue 39.4%R&D Expenses as a % of Total Revenue 13.9%Current Ratio 2.1Quick Ratio 1.9Cash as Percent of Market Cap 6.2%Avg Days Outstanding: Accounts Receivable 51Avg Days Outstanding: Accounts Payable 20Working Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 11.7%Cash from Operations Growth (YoY) 6.8%Cash from Investing Growth (YoY) -247.9%Cash from Financing Growth (YoY) 55.8%Levered FCF Growth (YoY) 25.7%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedCash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)-5%0%5%10%15%20%Vertically Focused SaaS Stock Market Return: January - April 2013Vertically Focused S&P NASDAQ SEG SaaS
- 36. SEG SaaS Index Category: Workforce ManagementCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDCallidus Software Inc. CALD $225.7 $265.3 $98.5 48.1% -15.4% 14.5% 2.7x n/a 2.4x 23.6x 17.0%Cornerstone OnDemand CSOD $2,074.0 $2,004.7 $131.6 70.4% -21.5% 61.9% 15.2x n/a 10.0x n/a 33.0%Halogen Software, Inc. TSX:HGN $267.5 $306.1 $40.8 73.4% -9.6% n/a 7.5x n/a n/a n/a -2.1%The Ultimate Software Group, Inc. ULTI $3,077.0 $3,008.6 $351.9 57.3% 13.8% 24.4% 8.5x 62.0x 7.0x 32.6x 12.8%Workday, Inc. WDAY $10,699.7 $9,915.3 $308.5 58.5% -31.9% 88.3% 32.1x n/a 20.3x n/a 23.0%Median: $2,074.0 $2,004.7 $131.6 58.5% -15.4% 43.1% 8.5x 62.0x 8.5x 28.1x 17.0%TTM Revenue Growth 43.1%TTM EBITDA Growth -36.5%TTM Earnings Growth -36.0%Gross Profit Margin 58.5%EBITDA Margin -15.4%Net Income Margin -27.7%SG&A Expenses as a % of Total Revenue 58.8%R&D Expenses as a % of Total Revenue 17.4%Current Ratio 1.1Quick Ratio 0.9Cash as Percent of Market Cap 3.7%Avg Days Outstanding: Accounts Receivable 82Avg Days Outstanding: Accounts Payable 16Working Capital to TTM Operating Expense Ratio 0.1xLevered FCF Margin 8.4%Cash from Operations Growth (YoY) 78.0%Cash from Investing Growth (YoY) -271.4%Cash from Financing Growth (YoY) 216.7%Levered FCF Growth (YoY) 2610.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedCash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)-5%0%5%10%15%20%25%Workforce Management SaaS Stock Market Return: January - April 2013Workforce Management S&P NASDAQ SEG SaaS
- 37. SEG SaaS Index Category: Other Public SaaS CompaniesCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDConcur CNQR $4,507.2 $4,299.0 $481.2 71.7% 7.7% 22.3% 8.9x 116.5x 7.1x 31.6x 13.1%Demandware, Inc. DWRE $923.3 $821.2 $83.9 69.7% -10.7% 37.5% 9.8x n/a 7.7x n/a 13.1%inContact, Inc. SAAS $387.4 $346.5 $116.4 46.8% 1.4% 25.5% 3.0x 218.5x 2.4x 75.3x 31.3%IntraLinks Holdings IL $337.6 $338.8 $220.9 71.7% 2.3% 4.6% 1.5x 66.1x 1.5x 9.4x -4.7%J2 Global JCOM $1,878.1 $1,828.8 $398.4 82.1% 46.1% 16.0% 4.6x 10.0x 3.4x 7.8x 27.3%Jive Software, Inc JIVE $1,126.2 $992.6 $122.2 61.4% -35.4% 41.2% 8.1x n/a 6.2x n/a 12.5%OpenTable, Inc. OPEN $1,519.6 $1,423.1 $167.8 74.5% 29.2% 15.6% 8.5x 29.1x 7.3x 16.4x 30.1%Qualys, Inc. QLYS $443.4 $352.4 $95.1 78.9% 11.1% 19.3% 3.7x 33.3x 3.2x 19.3x -10.8%Service-now.com NOW $4,936.9 $4,598.0 $282.2 59.8% -9.4% 87.8% 16.3x n/a 10.5x 127.6x 21.6%Tangoe TNGO $556.3 $525.9 $165.2 54.2% 8.7% 41.5% 3.2x 36.8x 2.6x 15.8x 15.8%Zix Corporation ZIXI $246.9 $222.7 $44.8 82.8% 22.2% 14.4% 5.0x 22.3x 4.4x 14.9x 29.3%Median: $923.3 $821.2 $165.2 71.7% 7.7% 22.3% 5.0x 35.1x 4.4x 16.4x 15.8%TTM Revenue Growth 19.3%TTM EBITDA Growth -14.9%TTM Earnings Growth -20.1%Gross Profit Margin 78.9%EBITDA Margin 11.1%Net Income Margin -4.0%SG&A Expenses as a % of Total Revenue 54.5%R&D Expenses as a % of Total Revenue 10.9%Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 11.6%Avg Days Outstanding: Accounts Receivable 65Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.5xLevered FCF Margin 12.8%Cash from Operations Growth (YoY) 20.7%Cash from Investing Growth (YoY) -159.7%Cash from Financing Growth (YoY) 72.7%Levered FCF Growth (YoY) 5.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedCash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)-5%0%5%10%15%20%25%Other Public SaaS Companies SaaS Stock Market Return: January - April 2013Other SaaS S&P NASDAQ SEG SaaS
- 38. SEG Internet IndexCategory PerformanceCopyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved
- 39. SEG Internet Index: All CategoriesCategory Name Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDSEG Internet Index $1,363.1 $1,271.9 $430.6 67.0% 13.3% 19.6% 2.4x 15.1x 2.1x 11.3x 17.1%Ad Tech & Lead Generation $1,720.3 $1,748.2 $511.1 65.1% 14.3% 24.3% 2.0x 14.7x 1.8x 10.8x 13.2%Commerce $588.9 $422.0 $414.0 41.4% 9.0% 17.4% 1.0x 15.2x 1.2x 11.4x 18.8%Content & Media $2,135.7 $1,906.0 $473.8 54.2% 16.0% 7.3% 2.1x 14.1x 2.6x 13.6x 22.8%Gaming $2,576.78 $1,826.1 $932.4 71.3% 38.6% 21.9% 2.7x 6.8x 1.8x 6.4x 36.3%Infrastructure $606.36 $434.7 $255.5 61.2% 7.5% 8.8% 1.5x 13.3x 1.4x 9.9x 8.1%Services $1,363.11 $1,315.1 $300.9 67.7% 7.1% 40.4% 2.5x 27.7x 2.1x 12.7x 27.2%Social $1,921.00 $1,826.5 $305.8 67.0% 20.0% 47.2% 8.2x 39.4x 7.3x 32.0x -9.5%TTM Revenue Growth 19.6%TTM EBITDA Growth 10.4%TTM Earnings Growth 3.2%Gross Profit Margin 67.0%EBITDA Margin 13.3%Net Income Margin 3.1%SG&A Expenses as a % of Total Revenue 37.9%R&D Expenses as a % of Total Revenue 13.8%Current Ratio 2.4Quick Ratio 2.0Cash as Percent of Market Cap 17.4%Avg Days Outstanding: Accounts Receivable 37Avg Days Outstanding: Accounts Payable 54Working Capital to TTM Operating Expense Ratio 0.5Levered FCF Margin 10.9%Cash from Operations Growth (YoY) 18.5%Cash from Investing Growth (YoY) 3.4%Cash from Financing Growth (YoY) -76.2%Levered FCF Growth (YoY) 21.3%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%5%10%15%20%25%30%SEG Internet Index Stock Market Return: January - April 2013DOW S&P NASDAQ SEG Internet Index
- 40. SEG Internet Index Category: Ad Tech and Lead GenerationCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAngies List, Inc. ANGI $1,363.1 $1,315.1 $176.9 72.3% -24.3% 70.9% 7.4x n/a 4.9x n/a 94.6%Baidu.com, Inc. BIDU $33,796.0 $30,465.6 $3,863.1 76.7% 53.5% 47.1% 7.9x 14.7x 5.8x 12.5x -7.3%Bankrate, Inc. RATE $1,431.7 $1,536.5 $440.6 67.7% 23.8% -2.1% 3.5x 14.6x 3.3x 12.7x 2.8%Digital Generation, Inc. DGIT $194.1 $549.9 $385.7 64.3% 26.1% 9.1% 1.4x 5.5x 1.4x 4.9x -37.6%eHealth, Inc. EHTH $479.3 $365.7 $161.6 96.7% 13.1% 6.9% 2.3x 17.3x 2.1x 15.0x -12.2%Google Inc. GOOG $289,040.6 $246,318.6 $53,499.0 57.7% 31.4% 33.8% 4.6x 14.7x 3.9x 10.8x 20.1%Groupon GRPN $5,086.7 $3,918.7 $2,376.6 65.4% 6.0% 26.8% 1.6x 27.5x 1.5x 12.6x 49.4%InterActiveCorp IACI $4,058.8 $4,068.4 $2,902.6 64.7% 15.5% 29.6% 1.4x 9.0x 1.2x 6.2x 6.4%Marchex Inc. MCHX $217.2 $200.1 $139.0 41.1% 1.6% -9.2% 1.4x 87.9x 1.3x 12.0x 40.7%QuinStreet QNST $331.9 $315.4 $315.1 18.4% 12.1% -16.8% 1.0x 8.3x 1.0x 6.8x 15.4%ReachLocal, Inc. RLOC $394.4 $306.2 $473.2 50.0% 1.9% 19.7% 0.6x 33.3x 0.6x 9.5x 7.8%SINA Corporation SINA $3,851.7 $3,177.3 $549.1 54.1% 5.7% 12.3% 5.8x 101.3x 5.0x 40.3x 11.0%Sohu.com Inc. SOHU $2,454.4 $2,096.6 $1,148.2 67.0% 32.1% 27.0% 1.8x 5.7x 1.5x 6.6x 33.2%Tree.Com, Inc. TREE $221.8 $148.4 $92.3 94.7% 1.9% 71.1% 1.6x 83.8x 1.3x 8.3x 6.4%ValueClick, Inc. VCLK $2,009.0 $1,959.9 $679.9 62.2% 31.1% 21.7% 2.9x 9.3x 2.6x 7.7x 34.5%Yandex YNDX $8,935.1 $8,586.7 $995.0 75.2% 43.8% 40.3% 8.6x 19.7x 6.7x 14.6x 17.1%Median: $1,720.3 $1,748.2 $511.1 65.1% 14.3% 24.3% 2.0x 14.7x 1.8x 10.8x 13.2%TTM Revenue Growth 24.3%TTM EBITDA Growth 13.6%TTM Earnings Growth 10.3%Gross Profit Margin 65.1%EBITDA Margin 14.3%Net Income Margin 4.8%SG&A Expenses as a % of Total Revenue 33.4%R&D Expenses as a % of Total Revenue 11.1%Current Ratio 2.4xQuick Ratio 2.0xCash as Percent of Market Cap 17.3%Avg Days Outstanding: Accounts Receivable 40.1xAvg Days Outstanding: Accounts Payable 61.5xWorking Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 11.0%Cash from Operations Growth (YoY) 9.8%Cash from Investing Growth (YoY) 28.7%Cash from Financing Growth (YoY) -98.5%Levered FCF Growth (YoY) 10.7%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-10%-5%0%5%10%15%20%25%30%Internet Ad Tech and Lead Generation Stock Market Return: January - April 2013Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index
- 41. SEG Internet Index Category: CommerceCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTD1-800-FLOWERS.COM, Inc. FLWS $388.8 $389.8 $746.1 41.4% 6.0% 3.8% 0.5x 8.7x 0.5x 7.9x 65.1%Amazon.com, Inc. AMZN $122,551.4 $117,696.4 $63,978.0 25.4% 4.2% 24.5% 1.8x 43.4x 1.5x 22.4x 3.2%Bitauto Holdings Limited BITA $405.7 $318.8 $179.9 72.7% 17.0% 51.5% 1.8x 10.5x 1.3x 7.3x 37.0%BlueNile NILE $440.7 $400.8 $414.0 18.7% 3.5% 18.0% 1.0x 27.7x 0.9x 16.4x -8.8%DangDang DANG $514.7 $422.0 $875.9 14.7% -7.7% 35.6% 0.5x n/a 0.4x n/a 37.4%Digital River Inc. DRIV $616.1 $279.3 $397.5 81.6% 9.0% -1.2% 0.7x 7.8x 0.7x 6.0x 16.2%eBay Inc. EBAY $70,210.4 $65,324.4 $14,543.0 69.8% 29.6% 17.4% 4.5x 15.2x 3.9x 11.4x 2.7%Liquidity Services, Inc. LQDT $1,265.3 $1,208.1 $496.1 44.0% 19.3% 25.8% 2.4x 12.6x 2.2x 9.5x -5.8%Mecox Lane Limited MCOX $31.3 $9.8 $135.7 35.6% -14.2% -34.4% 0.1x n/a n/a n/a -5.0%Mercadolibre, Inc. MELI $5,060.8 $4,867.3 $392.6 78.8% 36.4% 22.2% 12.4x 34.1x 9.6x 26.7x 43.7%Overstock.com, Inc. OSTK $613.0 $531.1 $1,148.9 18.3% 2.8% 9.3% 0.5x 16.4x 0.4x 11.7x 78.4%PetMed Express, Inc. PETS $265.8 $232.1 $227.8 33.9% 12.3% -4.4% 1.0x 8.3x 1.0x 8.1x 18.8%Stamps.com STMP $588.9 $541.7 $119.5 76.4% 24.7% 11.6% 4.5x 18.4x 4.2x 15.5x 39.3%Median: $588.9 $422.0 $414.0 41.4% 9.0% 17.4% 1.0x 15.2x 1.2x 11.4x 18.8%TTM Revenue Growth 17.4%TTM EBITDA Growth -32.7%TTM Earnings Growth -61.6%Gross Profit Margin 41.4%EBITDA Margin 9.0%Net Income Margin 0.2%SG&A Expenses as a % of Total Revenue 42.0%R&D Expenses as a % of Total Revenue 18.1%Current Ratio 3.1xQuick Ratio 2.7xCash as Percent of Market Cap 26.6%Avg Days Outstanding: Accounts Receivable 66.4xAvg Days Outstanding: Accounts Payable 42.7xWorking Capital to TTM Operating Expense Ratio 0.6xLevered FCF Margin 8.3%Cash from Operations Growth (YoY) 1.1%Cash from Investing Growth (YoY) 10.9%Cash from Financing Growth (YoY) -93.1%Levered FCF Growth (YoY) 14.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-10%-5%0%5%10%15%20%25%30%Internet Commerce Internet Stock Market Return: January - April 2013Commerce S&P NASDAQ SEG Internet Index
- 42. SEG Internet Index Category: Content & MediaCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAOL, Inc. AOL $2,684.5 $2,332.1 $2,200.6 30.8% 21.9% 0.9% 1.1x 4.8x 1.0x 5.3x 12.7%DemandMedia DMD $742.3 $632.9 $395.0 52.4% 17.9% 19.1% 1.6x 8.9x 1.4x 5.4x -9.3%InterActiveCorp IACI $4,058.8 $4,068.4 $2,902.6 64.7% 15.5% 29.6% 1.4x 9.0x 1.2x 6.2x 6.4%Netflix NFLX $13,223.3 $12,897.5 $3,763.5 27.5% 3.5% 12.1% 3.4x 99.3x 2.8x 37.1x 134.0%Pandora P $2,975.1 $2,899.7 $471.9 32.0% -8.2% 55.2% 6.1x n/a 4.3x 118.3x 78.8%Shutterstock, Inc. SSTK $1,587.0 $1,480.0 $183.2 61.8% 21.0% 38.4% 8.1x 38.4x 6.3x 28.1x 80.0%TheStreet.com, Inc. TST $67.1 $20.2 $50.5 51.1% -2.6% -10.6% 0.4x n/a n/a n/a 17.2%WebMD Health Corp. WBMD $1,449.3 $1,250.0 $475.7 55.9% 8.5% -10.9% 2.6x 31.1x 2.6x 13.6x 93.6%XO Group XOXO $254.3 $179.3 $129.6 82.7% 16.5% 2.5% 1.4x 8.4x 1.3x 6.5x 7.5%Yahoo! Inc. YHOO $28,473.3 $25,542.2 $4,905.7 68.1% 27.1% -1.7% 5.2x 19.2x 5.6x 15.4x 28.5%Median: $2,135.7 $1,906.0 $473.8 54.2% 16.0% 7.3% 2.1x 14.1x 2.6x 13.6x 22.8%TTM Revenue Growth 7.3%TTM EBITDA Growth 22.7%TTM Earnings Growth -0.4%Gross Profit Margin 54.2%EBITDA Margin 16.0%Net Income Margin 2.2%SG&A Expenses as a % of Total Revenue 33.8%R&D Expenses as a % of Total Revenue 9.4%Current Ratio 1.8xQuick Ratio 1.7xCash as Percent of Market Cap 16.7%Avg Days Outstanding: Accounts Receivable 51.0xAvg Days Outstanding: Accounts Payable 21.3xWorking Capital to TTM Operating Expense Ratio 0.4xLevered FCF Margin 13.5%Cash from Operations Growth (YoY) 17.4%Cash from Investing Growth (YoY) 42.4%Cash from Financing Growth (YoY) -8.3%Levered FCF Growth (YoY) 30.9%Copyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)June 2013 Monthly Flash Report0%5%10%15%20%25%30%35%Internet Content & Media Stock Market Return: January - April 2013Content & Media S&P NASDAQ SEG Internet Index
- 43. SEG Internet Index Category: GamingCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDChangYou.com CYOU $1,630.2 $1,511.0 $664.2 83.0% 63.0% 28.6% 2.3x 3.6x 2.0x 3.6x 11.8%Giant Interactive GA $2,025.3 $1,555.6 $356.5 90.1% 64.4% 16.8% 4.4x 6.8x 3.8x 6.1x 46.6%Netease NTES $8,300.8 $5,827.9 $1,349.5 69.6% 47.4% 8.1% 4.3x 9.1x 3.8x 7.5x 51.3%NCSoft KOSE:A036 $2,758.7 $2,254.6 $716.6 69.5% n/a 34.1% 3.1x n/a n/a n/a -1.3%Perfect World PWRD $747.7 $496.8 $430.6 79.8% 24.6% -10.3% 1.2x 4.7x 1.1x 5.8x 39.5%Sohu.com Inc. SOHU $2,454.4 $2,096.6 $1,148.2 67.0% 32.1% 27.0% 1.8x 5.7x 1.5x 6.6x 33.2%Tencent Holdings SEHK:700 $72,649.0 $69,554.2 $7,689.4 57.5% 38.6% 50.3% 9.0x 23.5x n/a n/a 18.2%Zynga, Inc. ZNGA $2,699.2 $1,530.5 $1,223.9 72.9% 11.7% 0.5% 1.3x 10.6x 1.6x 24.5x 43.1%Median: $2,576.8 $1,826.1 $932.4 71.3% 38.6% 21.9% 2.7x 6.8x 1.8x 6.4x 36.3%TTM Revenue Growth 21.9%TTM EBITDA Growth 17.9%TTM Earnings Growth 14.5%Gross Profit Margin 71.3%EBITDA Margin 38.6%Net Income Margin 26.7%SG&A Expenses as a % of Total Revenue 24.8%R&D Expenses as a % of Total Revenue 14.9%Current Ratio 2.4xQuick Ratio 2.0xCash as Percent of Market Cap 30.0%Avg Days Outstanding: Accounts Receivable 17.9xAvg Days Outstanding: Accounts Payable 46.2xWorking Capital to TTM Operating Expense Ratio 0.8xLevered FCF Margin 9.5%Cash from Operations Growth (YoY) 0.6%Cash from Investing Growth (YoY) -28.1%Cash from Financing Growth (YoY) -184.6%Levered FCF Growth (YoY) -46.0%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%5%10%15%20%25%30%35%40%45%Internet Gaming Stock Market Return: January - April 2013Gaming S&P NASDAQ SEG Internet Index
- 44. SEG Internet Index Category: InfrastructureCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTD8x8, Inc. EGHT $596.6 $544.3 $107.6 68.4% 13.5% 25.4% 5.1x 37.4x 4.3x 24.1x 4.1%Akamai Technologies, Inc. AKAM $8,195.5 $7,682.5 $1,422.5 70.9% 36.6% 18.3% 5.4x 14.7x 4.8x 11.1x 10.0%Brightcove Inc. BCOV $210.4 $183.4 $92.8 68.3% -9.9% 31.7% 2.0x n/a 1.7x 47.6x -22.4%BroadSoft, Inc. BSFT $776.3 $697.5 $166.1 79.4% 13.8% 13.2% 4.2x 30.5x 3.6x 16.5x -24.0%Digital River Inc. DRIV $616.1 $279.3 $397.5 81.6% 9.0% -1.2% 0.7x 7.8x 0.7x 6.0x 16.2%Envivio, Inc. ENVI $45.8 -$4.0 $33.1 62.0% -50.1% -38.8% n/a 0.2x n/a n/a -6.6%Harmonic Inc HLIT $690.9 $462.6 $515.7 45.1% 5.9% -3.2% 0.9x 15.2x 1.0x 9.7x 17.8%Interactive Intelligence, Inc. ININ $996.9 $928.2 $257.8 65.8% 5.8% 20.2% 3.6x 62.5x 3.0x 43.3x 44.3%Limelight Networks, Inc. LLNW $227.9 $109.4 $181.7 53.1% -1.9% 4.3% 0.6x n/a 0.6x 8.4x -5.6%Mitel Networks Corp. MITL $192.7 $406.8 $583.6 55.4% 13.9% -3.8% 0.7x 5.0x 0.7x 4.2x 7.8%Polycom, Inc. PLCM $1,954.7 $1,271.9 $1,385.7 58.9% 8.0% -2.9% 0.9x 11.5x 0.9x 5.5x -0.6%Rovi Corporation ROVI $2,598.9 $3,247.1 $633.6 81.7% 34.1% -9.5% 5.1x 15.0x 4.9x 10.7x 59.3%SeaChange International Inc. SEAC $352.3 $239.5 $157.2 53.7% 8.1% -4.6% 1.5x 18.7x 1.4x 9.4x 8.4%ShoreTel, Inc. SHOR $237.8 $221.1 $306.4 60.4% -3.1% 36.4% 0.7x n/a 0.7x 12.4x -5.3%Sonus Networks, Inc SONS $906.0 $683.1 $253.1 54.8% -9.8% -1.4% 2.7x n/a 2.5x n/a 48.2%Synacor, Inc SYNC $102.9 $66.0 $120.5 45.5% 7.0% 16.9% 0.5x 7.8x 0.5x 7.6x -36.8%Tucows Inc. TCX $72.5 $76.3 $117.2 22.7% 5.5% 14.8% 0.7x 11.9x 0.6x 8.5x 24.1%VeriSign VRSN $7,091.0 $6,234.7 $904.3 80.8% 60.7% 13.6% 6.9x 11.4x 6.4x 10.1x 16.4%Median: $606.4 $434.7 $255.5 61.2% 7.5% 8.8% 1.5x 13.3x 1.4x 9.9x 8.1%TTM Revenue Growth 8.8%TTM EBITDA Growth -32.7%TTM Earnings Growth -61.6%Gross Profit Margin 61.2%EBITDA Margin 7.5%Net Income Margin 0.2%SG&A Expenses as a % of Total Revenue 42.0%R&D Expenses as a % of Total Revenue 18.1%Current Ratio 3.1xQuick Ratio 2.7xCash as Percent of Market Cap 26.6%Avg Days Outstanding: Accounts Receivable 66.4xAvg Days Outstanding: Accounts Payable 42.7xWorking Capital to TTM Operating Expense Ratio 0.6xLevered FCF Margin 8.3%Cash from Operations Growth (YoY) 1.1%Cash from Investing Growth (YoY) 10.9%Cash from Financing Growth (YoY) -93.1%Levered FCF Growth (YoY) 14.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)-5%0%5%10%15%20%25%30%Internet Infrastructure Stock Market Return: January - April 2013Infrastructure S&P NASDAQ SEG Internet Index
- 45. SEG Internet Index Category: ServicesCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDAngies List, Inc. ANGI $1,363.1 $1,315.1 $176.9 72.3% -24.3% 70.9% 7.4x n/a 4.9x n/a 94.6%Bankrate RATE $1,431.7 $1,536.5 $440.6 67.7% 23.8% -2.1% 3.5x 14.6x 3.3x 12.7x 2.8%Carbonite, Inc. CARB $274.5 $218.0 $90.0 65.4% -6.0% 35.9% 2.4x n/a 2.0x 62.0x 7.4%LifeLock, Inc. LOCK $897.2 $751.9 $300.9 71.8% 7.1% 44.9% 2.5x 35.3x 2.0x 17.2x 27.2%Monster Worldwide, Inc. MWW $644.5 $682.6 $868.6 54.7% 15.6% -10.1% 0.8x 5.0x 0.8x 4.3x -8.4%Qihoo QIHU $5,378.6 $5,077.7 $369.6 89.4% 17.9% 72.6% 13.7x 76.7x 7.7x 28.0x 47.7%Shutterfly SFLY $1,850.8 $1,686.3 $666.0 54.0% 12.5% 31.3% 2.5x 20.2x 2.1x 11.3x 55.4%Tree.Com, Inc. TREE $221.8 $148.4 $92.3 94.7% 1.9% 71.1% 1.6x 83.8x 1.3x 8.3x 6.4%VistaPrint VPRT $1,500.0 $1,687.2 $1,137.8 65.7% 9.5% 16.3% 1.5x 15.6x 1.3x 10.4x 35.3%Zillow Z $1,938.6 $1,759.6 $133.0 88.9% 6.1% 71.3% 13.2x 216.7x 8.8x 64.7x 93.8%Xoom XOOM $613.5 $502.9 $87.4 67.0% -2.3% n/a 5.8x n/a 4.4x n/a -26.8%Median: $1,363.1 $1,315.1 $300.9 67.7% 7.1% 40.4% 2.5x 27.7x 2.1x 12.7x 27.2%TTM Revenue Growth 40.4%TTM EBITDA Growth 23.0%TTM Earnings Growth -10.3%Gross Profit Margin 67.7%EBITDA Margin 7.1%Net Income Margin 0.3%SG&A Expenses as a % of Total Revenue 53.3%R&D Expenses as a % of Total Revenue 16.7%Current Ratio 2.5xQuick Ratio 2.1xCash as Percent of Market Cap 12.7%Avg Days Outstanding: Accounts Receivable 22.4xAvg Days Outstanding: Accounts Payable 63.9xWorking Capital to TTM Operating Expense Ratio 0.3xLevered FCF Margin 4.5%Cash from Operations Growth (YoY) 57.2%Cash from Investing Growth (YoY) -30.4%Cash from Financing Growth (YoY) -78.4%Levered FCF Growth (YoY) 7.4%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%5%10%15%20%25%30%35%40%45%50%Internet Services Stock Market Return: January - April 2013Services S&P NASDAQ SEG Internet Index
- 46. SEG Internet Index Category: SocialCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDFacebook FB $58,871.2 $51,660.2 $5,489.0 72.7% 23.9% 35.9% 9.4x 39.4x 7.3x 13.9x -16.7%FriendFinder Networks Inc FFN $11.1 $483.7 $305.8 67.0% 25.5% -6.8% 1.6x 6.2x n/a n/a -42.9%LinkedIn LNKD $18,489.3 $17,659.0 $1,108.6 87.1% 13.5% 79.8% 15.9x 118.1x 10.7x 44.1x 49.2%Mail.ru Group LSE:MAIL $5,838.2 $4,889.7 $680.8 55.1% 42.8% 40.2% 7.2x 16.8x n/a n/a -9.5%Renren Inc RENN $1,197.0 $342.5 $190.6 62.9% -42.3% 47.2% 1.8x n/a 1.3x n/a -13.2%Yelp, Inc. YELP $1,921.0 $1,826.5 $156.3 92.9% -2.8% 66.0% 11.7x n/a 7.6x 63.7x 52.7%YY, Inc. YY $1,558.0 $1,315.8 $160.6 53.6% 20.0% 151.5% 8.2x 40.9x 5.0x 19.8x 91.1%Median: $1,921.0 $1,826.5 $305.8 67.0% 20.0% 47.2% 8.2x 39.4x 7.3x 32.0x -9.5%TTM Revenue Growth 47.2%TTM EBITDA Growth 20.7%TTM Earnings Growth 40.6%Gross Profit Margin 67.0%EBITDA Margin 20.0%Net Income Margin 1.2%SG&A Expenses as a % of Total Revenue 37.3%R&D Expenses as a % of Total Revenue 22.0%Current Ratio 5.3xQuick Ratio 5.0xCash as Percent of Market Cap 16.1%Avg Days Outstanding: Accounts Receivable 45.5xAvg Days Outstanding: Accounts Payable 69.4xWorking Capital to TTM Operating Expense Ratio 1.5xLevered FCF Margin 15.6%Cash from Operations Growth (YoY) 24.8%Cash from Investing Growth (YoY) -25.5%Cash from Financing Growth (YoY) -76.2%Levered FCF Growth (YoY) n/aCopyright © 2013 by Software Equity Group, L.L.C., All Rights ReservedBalance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)June 2013 Monthly Flash ReportIncome Statement Analysis (Median)-15%-10%-5%0%5%10%15%20%25%30%Internet Social Stock Market Return: January - April 2013Social S&P NASDAQ SEG Internet Index
- 47. SEG Internet Index Category: TravelCompany Name Ticker Market Cap EVTTMRevenueTTMGrossMarginTTMEBITDAMarginTTMRevenueGrowth EV/ RevenueEV/EBITDAForwardEV/ RevenueForwardEV/EBITDA YTDCtrip CTRP $4,042.3 $3,454.4 $709.3 74.7% 16.7% 21.0% 4.9x 29.2x 4.0x 16.6x 37.3%Expedia EXPE $7,772.0 $7,398.4 $4,226.2 77.5% 15.2% 19.5% 1.8x 11.5x 1.5x 8.1x -8.8%HomeAway AWAY $2,597.4 $2,283.0 $295.8 83.7% 19.1% 22.0% 7.7x 40.4x 6.4x 22.1x 34.9%MakeMyTrip MMYT $475.3 $393.6 $228.8 23.4% -5.9% 16.4% 1.7x n/a 3.8x n/a -3.6%Orbitz OWW $796.2 $1,026.4 $791.9 80.7% 13.4% 2.6% 1.3x 9.6x 1.2x 7.0x 151.7%Priceline PCLN $41,466.7 $37,938.2 $5,525.7 78.7% 35.9% 20.6% 6.9x 19.1x 5.6x 14.9x 24.1%Travelzoo TZOO $441.5 $376.0 $154.0 89.8% 19.2% 2.2% 2.4x 12.7x 2.3x 11.7x 46.4%Median: $2,597.4 $2,283.0 $709.3 78.7% 16.7% 19.5% 2.4x 15.9x 3.8x 13.3x 34.9%TTM Revenue Growth 19.5%TTM EBITDA Growth 0.8%TTM Earnings Growth -20.5%Gross Profit Margin 78.7%EBITDA Margin 16.7%Net Income Margin 9.5%SG&A Expenses as a % of Total Revenue 52.0%R&D Expenses as a % of Total Revenue 13.8%Current Ratio 1.9xQuick Ratio 1.6xCash as Percent of Market Cap 16.2%Avg Days Outstanding: Accounts Receivable 35.5xAvg Days Outstanding: Accounts Payable 255.2xWorking Capital to TTM Operating Expense Ratio 0.5xLevered FCF Margin 23.9%Cash from Operations Growth (YoY) 30.2%Cash from Investing Growth (YoY) -44.0%Cash from Financing Growth (YoY) -31.5%Levered FCF Growth (YoY) 58.8%Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved June 2013 Monthly Flash ReportIncome Statement Analysis (Median)Balance Sheet Analysis (Median)Cash Flow Statement Analysis (Median)0%5%10%15%20%25%30%35%40%45%Internet Travel Stock Market Return: January - April 2013Travel S&P NASDAQ SEG Internet Index

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