Monthly Update                                      September 2012                                      Mark L. McNay     ...
William Blair & CompanyTable of ContentsSummary .............................................................................
William Blair & CompanySummarySaaS Mergers & AcquisitionsM&A activity was down slightly in terms of the number of transact...
William Blair & CompanySaaS Venture CapitalAugust 2012 venture investment activity consisted of 25 transactions totaling $...
William Blair & CompanyPublic Company Analysis•     The SaaS index was up 8.8% in August, outperforming the Nasdaq, which ...
William Blair & CompanyComparable Company Analysis – Market Cap Groupings Based on December 31, 2011 Stock Price          ...
William Blair & CompanyStock Price & Revenue Multiple Over Time – Market Cap Groupings Based on December 31, 2011 Stock Pr...
William Blair & CompanyWilliam Blair & Company Selected Cloud TransactionsSelected M&A Transactions      Not Disclosed    ...
William Blair & CompanySaaS Professional BiographiesMark L. McNay | Partner & Group Head, San Francisco and Software, Inte...
William Blair & CompanyWilliam Blair & Company SaaS Equity Research CoverageSaaS Equity ResearchCompany                   ...
William Blair & CompanyDisclosuresWilliam Blair is a trade name for William Blair & Company, L.L.C. and William Blair Inte...
International                          London                          William Blair International, Limited               ...
William Blair & Company is a global investment banking andasset management firm. We are committed to building enduring    ...
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Cloud Insights 2012

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Cloud Insights 2012

  1. 1. Monthly Update September 2012 Mark L. McNay Partner and Managing Director mmcnay@williamblair.com +1 415 248 5902 Andrew H. Arno Director aarno@williamblair.com +1 415 248 5905Cloud InsightsM&A and Capital Markets Perspectiveon the Cloud Computing Industries:• Software-as-a-service• Platform-as-a-service• Infrastructure-as-a-service
  2. 2. William Blair & CompanyTable of ContentsSummary .................................................................................................................................................................................................................................................... 1Public Company Analysis..................................................................................................................................................................................................................... 3William Blair & Company Selected Cloud Transactions ......................................................................................................................................................... 6SaaS Professional Biographies .......................................................................................................................................................................................................... 7William Blair & Company SaaS Equity Research Coverage ................................................................................................................................................... 8Disclosures................................................................................................................................................................................................................................................. 9 Cloud Insights Table of Contents
  3. 3. William Blair & CompanySummarySaaS Mergers & AcquisitionsM&A activity was down slightly in terms of the number of transactions announced in August, with 13 SaaS M&A transactions totaling$1.48 billion in disclosed transaction value (including IBM’s acquisition of Kenexa for $1.4 billion), compared with 19 transactionstotaling $173 million in disclosed transaction value in August 2011. Since the beginning of 2012, 112 M&A transactions have beenannounced with $12.6 billion in disclosed transaction volume. At the same time last year, 123 M&A transactions with $5.3 billion intransaction volume had been announced. Notable M&A transactions in August included:August 2012 – Selected SaaS Mergers & Acquisitions Date Trans. Value Implied Enterprise Enterprise ValueAnnounced Completed ($ MM) Value ($ MM) Target Company Acquirer Company LTM Revenue LTM EBITDA08/27/12 - $1,396.8 $1,307.1 Kenexa Corporation IBM 4.1x 49.0x08/08/12 08/08/12 $44.0 - Symphony Teleca Corporation, Telecommunications Tangoe - - Expense Management Business08/07/12 08/07/12 $38.1 $37.4 Edifice Information Management Systems SPS Commerce 3.3x 25.5xSources: CapitalIQ, public news sources, and third-party estimatesSaaS Equity PerformanceFor August, the broad SaaS group increased 8.8%, outperforming the Nasdaq, which was up 4.2%. The large-cap and small-cap SaaSgroups were up substantially, increasing 10.0% and 6.8%, respectively. The midcap SaaS group increased slightly, up 4.1%. Thebroader SaaS index has significantly outperformed the market indices year to date.Indexed Stock Price PerformanceIndex 2012 YTD August 2012Large-cap SaaS 36.0% 10.0%Midcap SaaS 14.1% 4.1%Small-cap SaaS 23.3% 6.8%All SaaS 31.9% 8.8%NASDAQ 16.8% 4.2%S&P 500 11.8% 2.0%SaaS Capital MarketsAugust 2012 witnessed one SaaS public equity offering and two filings:• Eloqua, a provider of on-demand revenue performance management (RPM) software solutions, completed its initial public offering of $106 million (including the overallotment). Eloqua traded up 21% on its first day of trading.• Workday, a provider of enterprise cloud-based applications for human capital management (HCM), filed an S-1 with the SEC to raise $400 million in an initial public offering.• ExactTarget, a provider of cross-channel, interactive marketing solutions, filed an S-1 with the SEC in connection with a $100 million follow-on offering. Cloud Insights Summary 1
  4. 4. William Blair & CompanySaaS Venture CapitalAugust 2012 venture investment activity consisted of 25 transactions totaling $143 million in disclosed transaction value, comparedwith just 14 transactions totaling $190 million in August 2011. Notable SaaS venture investments in August included:• Zscaler, a cloud security company, raised a $38 million series A round from Lightspeed Venture Partners.• YottaMark, a provider of fresh-food traceability solutions, raised a $24 million series D round led by Westbury Partners, with participation from ATA Ventures, Fairhaven Capital Partners, Thomvest Ventures, and Granite Ventures.• AtTask, a provider of collaborative work management solutions, raised a $16 million round of funding from undisclosed investors.• Vital Insights, a provider of customer experience management (CEM) solutions to the automotive industry, raised a $20 million round of funding from Bregal Sagemount.PaaS and IaaS ActivityNotable events in the PaaS and IaaS sectors in August included:• Nutanix, a provider of a SAN-less virtualized data center platform, raised a $33 million series C round led by Lightspeed Venture Partners and Khosla Ventures, with participation from Battery Ventures and Goldman Sachs.• Magnet Systems, a provider of a platform for next-generation enterprise applications, raised a $47 million series B round from HTC Corporation.As always, we encourage you to contact us if we may be of assistance.Best regards,Mark McNay Andrew ArnoPartner & Managing Director Directormmcnay@williamblair.com aarno@williamblair.com Cloud Insights 2 Summary
  5. 5. William Blair & CompanyPublic Company Analysis• The SaaS index was up 8.8% in August, outperforming the Nasdaq, which was up 4.2%.• For August, the large-cap and small-cap SaaS groups were up considerably, increasing 10.0% and 6.8%, respectively, while the midcap SaaS group was up a more moderate 4.1%.SaaS Indexed Stock Price Performance (2012 YTD) Large-cap (+36.0%) Midcap (+14.1%) Small-cap (+23.3%) NASDAQ (+16.8%) 140 130 120 110 100 90Note: Market cap groupings based on December 31, 2011; market capitalizations at pricing are used for 2012 IPOsMkt. Cap > $1 B consists of: ATHN, CNQR, TRAK, ET, N, RP, CRM, NOW, SREV, SNCR, ULTIMkt. Cap $500 MM to $1B consists of: BV, CTCT, CSOD, JIVE, KNXA, LPSN, LOGM, MDSO, TNGOMkt. Cap < $500 MM consists of: ELLI, ELOQ, EOPN, DWRE, IL, MKTG, SQI, SDBT, SPSC, VOCSSource: FactSet as of August 31, 2012Valuation Overview Large-cap Midcap Small-cap 41.0x 33.3x 26.0x 28.0x 24.0x 6.6x 4.3x 15.0x 4.0x EV / 2012E Revenue EV / 2012E EBITDA EV / 2012E FCFNote: Market cap groupings based on December 31, 2011, stock price; data points represent median multiplesNote: Median multiples exclude Kenexa and SoundBite CommunicationsSource: FactSet as of August 31, 2012 Cloud Insights Public Company Analysis 3
  6. 6. William Blair & CompanyComparable Company Analysis – Market Cap Groupings Based on December 31, 2011 Stock Price Market Market Enterprise Enterprise Value / Revenue Enterprise Value / EBITDA Enterprise Value / FCF 11 - 12 2012 Close Cap ($MM) Cap ($MM) Value Revenue EBITDA 08/31/12 12/31/11 08/31/12 ($MM) LTM 2012E 2013E LTM 2012E 2013E LTM 2012E 2013E Growth MarginLarge-capathenahealth $88.37 $1,735.3 $3,181.2 $3,025.9 8.04x 7.05x 5.44x 55.3x 34.6x 27.2x nmf nmf 63.0x 32.5% 20.4%Concur Technologies $72.40 $2,747.2 $3,980.9 $3,749.0 8.99x 8.00x 6.40x nmf 32.0x 25.6x 60.7x 69.7x 44.2x 26.8% 25.0%DealerTrack Holdings $27.69 $1,107.8 $1,181.0 $1,085.7 2.89x 2.83x 2.49x 16.1x 11.4x 9.6x 21.2x 26.7x 18.1x 8.8% 24.7%ExactTarget $21.17 $1,225.1 $1,398.2 $1,186.6 4.78x 4.25x 3.49x nmf nmf nmf nmf nmf nmf 34.7% 3.6%NetSuite $56.88 $2,752.6 $4,033.6 $3,871.9 14.39x 12.74x 10.29 nmf nmf nmf nmf nmf nmf 28.6% 10.9% xRealPage $25.51 $1,814.8 $1,879.1 $1,868.3 6.40x 5.71x 4.74x 59.2x 25.3x 19.3x 44.7x 41.0x 29.3x 26.8% 22.6%Salesforce.com $145.18 $13,798.6 $20,034.8 $19,485.5 7.37x 6.56x 5.18x nmf 38.3x 29.9x 34.5x 36.3x 28.6x 31.0% 17.1%ServiceNow $31.10 $2,165.2 $3,831.6 $3,811.8 22.55x 16.20x 10.52 nmf nmf nmf nmf nmf nmf 60.3% -4.7% xServiceSource International $9.26 $1,114.1 $693.6 $580.9 2.55x 2.34x 1.94x nmf 35.0x 20.9x nmf nmf 50.4x 20.9% 6.7%Synchronoss Technologies $23.01 $1,134.7 $880.0 $789.0 3.12x 2.88x 2.31x 16.0x 9.0x 7.6x 45.6x 48.4x 18.4x 19.7% 31.8%Ultimate Software Group $99.19 $1,695.0 $2,655.2 $2,594.2 8.71x 7.81x 6.42x nmf 47.0x 33.8x nmf nmf nmf 23.4% 16.6%Mean 8.16x 6.94x 5.38x 36.7x 29.1x 21.7x 41.3x 44.4 x 36.0 x 28.5% 15.9%Median 7.37x 6.56x 5.18x 35.7x 33.3x 23.3x 44.7x 41.0 x 29.3 x 26.8% 17.1%MidcapBazaarvoice $14.84 $682.3 $1,023.9 $898.7 8.47x 6.84x 5.35x nmf nmf nmf nmf nmf nmf 45.2% -16.9%Constant Contact $19.55 $690.3 $596.2 $515.1 2.20x 2.03x 1.70x 19.6x 14.1x 10.3x 24.3x 24.0x 17.1x 18.4% 14.4%Cornerstone OnDemand $26.81 $884.1 $1,344.7 $1,282.7 13.77x 10.96x 7.72x nmf nmf nmf nmf nmf nmf 60.2% -7.0%Jive Software $15.09 $945.1 $939.8 $794.6 8.31x 7.06x 5.16x nmf nmf nmf nmf nmf nmf 45.6% -13.5%Kenexa(1) $45.84 $722.5 $1,262.9 $1,206.3 3.79x 3.32x 2.86x 30.8x 19.6x 15.6x 45.2x 32.0x 25.4x 28.3% 17.0%LivePerson $16.50 $668.4 $918.3 $817.7 5.60x 5.08x 4.19x 34.5x 25.9x 18.5x 31.8x 33.4x 28.0x 21.0% 19.6%LogMeIn $21.98 $937.2 $543.9 $345.5 2.66x 2.50x 2.09x 24.0x 11.1x 9.0x 10.9x 11.4x 8.7x 15.8% 22.6%Medidata Solutions $35.08 $539.0 $900.9 $787.2 3.99x 3.60x 3.13x 22.1x 15.0x 11.4x 35.1x 19.4x 12.6x 18.4% 24.0%Tangoe $16.20 $507.6 $605.0 $544.2 4.29x 3.60x 2.91x 55.0x 25.1x 17.4x 42.1x 33.2x 20.9x 43.9% 14.4%Mean 6.16x 5.21x 4.03x 31.0x 18.2x 13.3x 28.8x 24.3 x 17.5 x 33.6% 7.2%Median 4.94x 4.34x 3.66x 24.0x 15.0x 11.4x 31.8x 24.0 x 17.1 x 32.4% 14.4%Small-capDemandware $26.00 $448.0 $756.3 $653.4 9.82x 8.64x 6.50x nmf nmf nmf nmf nmf nmf 33.8% -10.9%E2open $12.76 $373.9 $318.1 $257.7 4.32x 3.71x 3.01x nmf nmf nmf nmf nmf nmf 15.1% 3.6%Eloqua $13.99 $368.4 $448.2 $363.5 4.29x 4.01x 3.23x nmf nmf nmf na nmf nmf 27.0% -6.0%Ellie Mae $25.77 $117.2 $649.2 $615.3 7.90x 6.78x 5.86x 38.3x 29.1x 22.8x nmf nmf nmf 63.5% 23.3%IntraLinks Holdings $5.42 $337.3 $294.6 $301.8 1.42x 1.46x 1.40x 7.2x 9.5x 8.1x 12.8x 37.3x 21.6x -3.3% 15.3%Responsys $9.59 $421.8 $465.2 $366.6 2.46x 2.23x 1.87x 18.4x 13.6x 10.3x 24.9x 27.5x 18.8x 21.7% 16.4%SciQuest $16.85 $314.7 $375.5 $312.1 5.42x 4.65x 3.47x 43.2x 29.3x 18.1x 24.0x 19.1x 15.2x 25.5% 15.9%SoundBite Communications(2) $2.29 $37.0 $37.3 $13.1 0.29x na na 13.0x na na na na na na naSPS Commerce $34.95 $313.3 $433.4 $397.9 6.05x 5.26x 4.12x nmf 48.9x 31.5x nmf nmf 41.3x 30.6% 10.7%Vocus $19.42 $442.0 $402.0 $453.6 3.29x 2.63x 2.18x nmf 22.9x 16.3x 33.6x 28.4x 21.5x 50.2% 11.5%Mean 5.00x 4.37x 3.52x 26.8x 25.6x 17.9x 23.9x 28.1 x 23.7 x 29.3% 8.9%Median 4.32x 4.01x 3.23x 28.3x 26.0x 17.2x 24.5x 28.0 x 21.5 x 27.0% 11.5%OverallMean 6.58x 5.62x 4.40x 31.5x 25.1x 18.3x 31.9x 32.6 x 26.9 x 30.2% 11.1%Median 5.51x 4.86x 3.80x 24.0x 25.3x 18.1x 32.7x 30.8 x 21.5 x 26.9% 14.9%(1) Indicates excluded from mean and median calculation due to acquisition(2) Indicates excluded from mean and median calculation due to enterprise valueSource: FactSet as of August 31, 2012 Cloud Insights 4 Public Company Analysis
  7. 7. William Blair & CompanyStock Price & Revenue Multiple Over Time – Market Cap Groupings Based on December 31, 2011 Stock Price Market Market 12/31/11 Low Point High Point 08/31/12 % Change in Stock Price Cap ($MM) Cap ($MM) Stock EV/LTM Stock EV/LTM Stock EV/LTM Stock EV/LTM 12/31/11 to Low Point to High Point to 12/31/11 08/31/12 Price Rev Price Rev Price Rev Price Rev 08/31/12 08/31/12 08/31/12Large-capathenahealth $1,735.3 $3,181.2 $49.12 5.37x $49.12 5.37x $96.64 8.83x $88.37 8.04x 79.9% 79.9% -8.6%Concur Technologies $2,747.2 $3,980.9 $50.79 6.96x $47.89 6.51x $72.67 9.03x $72.40 8.99x 42.5% 51.2% -0.4%DealerTrack Holdings $1,107.8 $1,181.0 $27.26 3.22x $25.54 2.59x $31.64 3.70x $27.69 2.89x 1.6% 8.4% -12.5%ExactTarget $1,225.1 $1,398.2 na na $19.30 4.55x $27.35 8.27x $21.17 4.78x na 9.7% -22.6%NetSuite $2,752.6 $4,033.6 $40.55 11.73x $38.51 11.05x $57.95 14.76x $56.88 14.39x 40.3% 47.7% -1.8%RealPage $1,814.8 $1,879.1 $25.27 7.58x $16.92 4.50x $28.66 8.59x $25.51 6.40x 0.9% 50.8% -11.0%Salesforce.com $13,798.6 $20,180.0 $101.46 6.55x $97.48 6.29x $159.57 9.55x $145.18 7.37x 43.1% 48.9% -9.0%ServiceNow $2,165.2 $3,831.6 na na $23.74 16.74x $32.43 20.26x $31.10 22.55x na 31.0% -4.1%ServiceSource $1,114.1 $693.6 $15.69 5.35x $7.76 2.05x $17.71 6.07x $9.26 2.55x -41.0% 19.3% -47.7%InternationalSynchronoss $1,134.7 $880.0 $30.21 4.52x $17.13 2.22x $35.69 5.47x $23.01 3.12x -23.8% 34.3% -35.5%TechnologiesUltimate Software $1,695.0 $2,655.2 $65.12 6.42x $64.20 6.20x $99.19 8.71x $99.19 8.71x 52.3% 54.5% 0.0%GroupMidcapBazaarvoice $682.3 $1,023.9 na na $13.59 6.62x $20.30 12.40x $14.84 8.47x na 9.2% -26.9%Constant Contact $690.3 $596.2 $23.21 2.75x $16.00 1.50x $31.31 3.76x $19.55 2.20x -15.8% 22.2% -37.6%Cornerstone $884.1 $1,344.7 $18.24 13.05x $17.58 10.17x $27.47 14.90x $26.81 13.77x 47.0% 52.5% -2.4%OnDemandJive Software $945.1 $939.8 $16.00 13.04x $14.34 8.23x $27.52 19.72x $15.09 8.31x -5.7% 5.2% -45.2%Kenexa $722.5 $1,262.9 $26.70 2.56x $22.79 1.91x $45.84 3.79x $45.84 3.79x 71.7% 101.1% 0.0%LivePerson $668.4 $918.3 $12.55 4.64x $11.84 4.34x $19.49 6.92x $16.50 5.60x 31.5% 39.4% -15.3%LogMeIn $937.2 $543.9 $38.55 6.37x $18.95 2.08x $42.50 7.18x $21.98 2.66x -43.0% 16.0% -48.3%Medidata Solutions $539.0 $900.9 $21.75 2.36x $18.61 1.94x $36.11 4.12x $35.08 3.99x 61.3% 88.5% -2.9%Tangoe $507.6 $605.0 $15.40 4.90x $14.47 4.22x $22.72 7.30x $16.20 4.29x 5.2% 12.0% -28.7%Small-capDemandware $448.0 $756.3 na na $22.52 8.98x $31.45 16.95x $26.00 9.82x na 15.5% -17.3%E2open $373.9 $318.1 na na $11.90 4.32x $13.60 4.98x $12.76 4.32x na 7.2% -6.2%Eloqua $368.4 $448.2 na na $12.89 4.29x $15.30 5.19x $13.99 4.29x na 8.5% -8.6%Ellie Mae $117.2 $649.2 $5.65 1.95x $5.40 1.85x $28.58 8.81x $25.77 7.90x 356.1% 377.2% -9.8%IntraLinks Holdings $337.3 $294.6 $6.24 1.71x $3.84 1.06x $7.25 1.97x $5.42 1.42x -13.1% 41.1% -25.2%Responsys $421.8 $465.2 $8.89 2.61x $8.89 2.34x $12.78 3.86x $9.59 2.46x 7.9% 7.9% -25.0%SciQuest $314.7 $375.5 $14.27 5.16x $13.75 4.59x $18.28 6.23x $16.85 5.42x 18.1% 22.5% -7.8%SoundBite $37.0 $37.3 $2.25 0.23x $2.10 0.19x $3.14 0.55x $2.29 0.29x 1.8% 9.0% -27.1%CommunicationsSPS Commerce $313.3 $433.4 $25.95 5.21x $23.25 4.33x $34.95 6.05x $34.95 6.05x 34.7% 50.3% 0.0%Vocus $442.0 $402.0 $22.09 3.05x $12.32 1.24x $24.19 4.08x $19.42 3.29x -12.1% 57.6% -19.7%Source: FactSet as of August 31, 2012 Cloud Insights Public Company Analysis 5
  8. 8. William Blair & CompanyWilliam Blair & Company Selected Cloud TransactionsSelected M&A Transactions Not Disclosed Not Disclosed $115,000,000 Not Disclosed Not Disclosed has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by Not Disclosed Not Disclosed Not Disclosed Not Disclosed Not Disclosed has been acquired by has been acquired by has acquired has been acquired by has been acquired bySelected Public Equity Transactions $70,312,500 $111,298,395 $101,200,000 $71,875,000 $91,351,224 Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering & Follow-On Offering $318,436,530 $156,975,000 $142,866,254 $266,512,000 $53,124,000 Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering & Follow-On Offering & Follow-On Offering & Follow-On Offering $91,707,066 $206,816,000 $66,000,000 $708,860,000 $126,500,000 Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering Initial Public Offering & Follow-On Offering & Follow-On Offering & Follow-On OfferingsSelected Private Equity Transactions Not Disclosed Not Disclosed Not Disclosed $54,000,000 $50,000,000 TM received a significant investment from Private Equity Series E Convertible Preferred Stock Preferred Stock Preferred Stock Preferred Stock Cloud Insights 6 William Blair & Company Selected Cloud Transactions
  9. 9. William Blair & CompanySaaS Professional BiographiesMark L. McNay | Partner & Group Head, San Francisco and Software, Internet & ServicesMark McNay joined William Blair & Company in 2000 as a partner and group head of the West Coast investment banking team basedin San Francisco. Previously, he was a managing director and head of the Internet banking group at Volpe Brown Whelan & Companyand a managing director at Smith Barney, where at various times he headed the consumer/retailing group and the Los Angelescorporate finance office. He is a graduate of Georgetown University (B.S.) and Columbia University (M.B.A.).Andrew H. Arno | Director, San FranciscoAndrew Arno is a director in William Blair & Company’s West Coast investment banking team based in San Francisco. He joinedWilliam Blair & Company in 2004. From 2000 to 2002, he was an investment banking associate at WR Hambrecht+Co. in thetechnology group. From 1997 to 2000, he worked at The Shattan Group LLC, a boutique investment bank focused on private equityplacements. He is a graduate of Columbia University (B.A.) and the Haas School of Business at University of California, Berkeley(M.B.A.). Cloud Insights SaaS Professional Biographies 7
  10. 10. William Blair & CompanyWilliam Blair & Company SaaS Equity Research CoverageSaaS Equity ResearchCompany Ticker AnalystAthenahealth ATHN Ryan DanielsConcur Technologies CNQR Laura LedermanConstant Contact CTCT Laura LedermanCornerstone OnDemand CSOD Laura LedermanDemandware DWRE Laura LedermanE2open EOPN Laura LedermanEllie Mae ELLI Brandon DobellKenexa KNXA Laura LedermanNetSuite N Laura LedermanRealPage RP Laura LedermanResponsys MKTG Laura Ledermansalesforce.com CRM Laura LedermanSciQuest SQI Laura LedermanServiceSource SREV Laura LedermanSPS Commerce SPSC Laura LedermanUltimate Software Group ULTI Laura LedermanVocus VOCS Laura Lederman Cloud Insights 8 William Blair & Company SaaS Equity Research Coverage
  11. 11. William Blair & CompanyDisclosuresWilliam Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair Company, L.L.C. is a Delaware Company and is regulated by the Securities andExchange Commission, the financial industry regulatory authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Services Authority("FSA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons orinstitutions situated within the United States and are not offered to persons or institutions outside of the United States.This material has been approved for distribution in the United Kingdom by William Blair International Limited, and is directed only at, professional clients and eligible counterparties (as defined incobs 3.5 and 3.6 of the FDA handbook). This advertisement is not intended to be investment advice.William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com September 7, 2012 Cloud Insights Disclosures 9
  12. 12. International London William Blair International, Limited 3 St. Helen’s Place London EC3A 6AB United KingdomChicago Equity Sales: +44 20 7868 4400Headquarters222 West Adams Street Equity Sales: +44 20 7868 4420 (fax)Chicago, IL 60606 Corporate Finance: +44 20 7868 4444+1 312 236 1600 Corporate Finance: +44 20 7868 4488 (fax)+1 800 621 0687info@williamblair.com 40 Bruton Streetwww.williamblair.com London W1J 6QZ United Kingdom Investment Management: +44 20 7297 4700 Investment Management: +44 20 7297 4777 (fax)United StatesBoston São Paulo125 High Street William Blair Do Brasil Assessoria Financeira Ltda.Oliver Street Tower Av. Brigadeiro Faria Lima 3729, room 511Suite 1901 São Paulo, SPBoston, MA 02110 Brazil+1 617 235 7500 04538-905 +55 11 3443 6472Hartford +55 11 3443 6201 (fax)Putnam Place100 Great Meadow Road ShanghaiSuite 606 William Blair & Company, L.L.C.Wethers�ield, CT 06109 Shanghai Representative Of�ice+1 800 596 2028 Unit 16-18, 11th Floor Building One, Corporate AvenueNew York 222 Hubin Road666 Fifth Avenue Shanghai 20002114th Floor P.R. ChinaNew York, NY 10103 +86 21 2327 2222+ 1 212 237 2700 ZurichSan Francisco Stockerstrasse 46343 Sansome Street 8002 Zurich12th Floor SwitzerlandSan Francisco, CA 94104 +41 44 287 9020+1 415 986 5596 +41 44 201 0511 (fax)+1 415 986 1719 (fax)Wilmington500 Delaware AvenueSuite 720Wilmington, DE 19801+1 302 573 5000+1 302 573 5168 (fax)
  13. 13. William Blair & Company is a global investment banking andasset management firm. We are committed to building enduring December 2011relationships with our clients and providing expertise and Monthly Updatesolutions to meet their evolving needs. An independent andemployee-owned firm, William Blair is based in Chicago, with10 office locations including London, New York, Shanghai, andZurich. For more information, please visit williamblair.com. Mark McNay Partner & Managing Director mmcnay@williamblair.com +1 415 248 5902 Andrew Arno Director aarno@williamblair.com +1 415 248 5905 Cloud Insights Patrick Vihtelic Associate pvihtelic@williamblair.com M&A and Capital Markets Perspective + 1 415 248 5911 on the Cloud Computing Industries: Paul Huber Senior Analyst phuber@williamblair.com • Software-as-a-service +1 415 248 5901 • Platform-as-a-service • Infrastructure as-a-service

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