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The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
The Road to OnDemand 2009 (1 of 4)
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The Road to OnDemand 2009 (1 of 4)

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  • 1. The Road to OnDemand 2009 (1 of 4) “Benchmarks for Growing and Exiting a Successful SaaS Company” Featured Speakers: Lauren Kelley, CEO Scott Prentice, Associate OPEXEngine TripleTree lauren@opexengine.com sprentice@triple-tree.com
  • 2. “The Road to OnDemand” Series “Creating and Sustaining Profitable SaaS Customer Relationships” Tuesday, 9/22/2009 - 12:30pm ET – 1:30pm ET “Marketing 2.0” Tuesday, 9/29/2009 - 12:30pm ET – 1:30pm ET “Hybrid SaaS Markets” Wednesday, 10/7/2009 - 12:30pm ET – 1:30pm ET To register, visit: http://bit.ly/ODwebinars
  • 3. Benchmarks for Growing a Successful SaaS Company Lauren Kelley www.opexengine.com
  • 4. SaaS Operating and Financial Model The subscription business is a numbers game…
  • 5. Its all about adding customers And decreasing the incremental cost of maintaining a customer
  • 6. Compare SaaS to On-Premise Business Model Metrics On-Premise SaaS % Spend on R&D 19-21% 33-35% % Spend on Sales 26% 39% % Spend on 6.5% 20% Marketing % Spend on G&A 15-18% 25-27% Gross Margin on 97% 65% Product Average Recognized $110,134,500 $70,719,442 Revenue 2007
  • 7. 1stH 2008 SaaS Cost & Expense Company CNQR N OMTR RNOW TLEO Average First Half First Half First Half First Half First Half Time Period 2008 2008 2008 2008 2008 ($000s) Total Cost of Revenue $33,810 $21,780 $57,625 $25,173 $23,929 $32,463 Total Cost of Revenue as a % of Recognized Revenue 32.8% 30.8% 42.7% 37.0% 32.5% 35.2% Total Operating Expense $57,122 $56,352 $104,665 $50,844 $50,968 $63,990 S&M Expense as a % of Recognized Revenue 26.3% 52.6% 47.0% 50.6% 30.5% 41.4% G&A Expense as a % of Recognized Revenue 14.7% 15.0% 16.8% 10.9% 18.7% 15.2% SG&A Expense as a % of Recognized Revenue 41.0% 67.7% 63.8% 61.4% 49.2% 56.6% R&D Expense as a % of Recognized Revenue 11.5% 12.1% 13.8% 13.2% 19.5% 14.0% Total Operating Expense as % of Recognized Revenue 55.5% 79.7% 77.6% 74.6% 69.1% 71.3%
  • 8. 1stH 2009 SaaS Cost & Expense Company CNQR N OMTR RNOW TLEO Average First Half First Half First Half First Half First Half Time Period 2009 2009 2009 2009 2009 ($000s) Total Cost of Revenue $36,812 $26,591 $72,480 $23,257 $32,787 $38,385 Total Cost of Revenue as a % of Recognized Revenue 30.5% 32.5% 41.5% 32.1% 33.7% 34.1% Total Operating Expense $64,774 $64,246 $112,448 $48,331 $67,702 $71,500 S&M Expense as a % of Recognized Revenue 29.3% 45.3% 40.6% 42.7% 33.8% 38.3% G&A Expense as a % of Recognized Revenue 11.6% 16.6% 13.4% 10.6% 17.9% 14.0% SG&A Expense as a % of Recognized Revenue 40.9% 61.9% 54.0% 53.2% 51.7% 52.4% R&D Expense as a % of Recognized Revenue 10.3% 16.6% 10.4% 13.5% 17.9% 13.7% Total Operating Expense as % of Recognized Revenue 53.7% 78.5% 64.4% 66.8% 69.7% 66.6%
  • 9. SaaS Sales and Marketing – Private Benchmarks 2007 Mid-sized < $20M Profit On- SaaS Leaders Premise Sales expense as % 38.4% 41.9% 22.2% 26.2% of revenue Marketing expense 19.9% 20.6% 8.4% 6.5% as % of revenue Average Recognized $70.7M $9.4M $101.5M $110M Revenue Source: OPEXEngine Confidential Software Operating Benchmarks 2008
  • 10. Add’l Break-Down of Go-to-Market expenses Sales expense 38.4% of revenues Total comp 72.2% of sales expense T&E 8.5% of sales expense Marketing expense 19.9% of revenues Web spending 7.8% of marketing expense, Lead generation 2% Travel expense 3.8% Travel expense 5.8% of revenues (up from 4.5% in 2006) Source: OPEXEngine Confidential Software Operating Benchmarks 2008 Source: OPEXEngine Confidential Software Operating Benchmarks 2008
  • 11. SaaS Revenue Growth 2007 vs. 2006 Profit On- SaaS Leaders Premise Total Recognized 26.0% 4.3% 70.9% Revenue Growth Total Recognized 22.0% 2.1% 70.7% Product Revenue Growth Total Recognized 23.6% 4.4% 43.8% Service Growth Average Recognized $101,476,187 $110,134,500 $70,719,442 Revenue 2007
  • 12. First Half 2008 – SaaS Revenues Company CNQR N OMTR RNOW TLEO Average First Half First Half First Half First Half First Half Time Period 2008 2008 2008 2008 2008 ($000s) Market Cap (priced as of the period end date) $1,470,186 $1,231,475 $1,331,840 $459,066 $503,620 $999,238 Recognized Revenue $103,015 $70,671 $134,833 $68,119 $73,731 $90,074 Recognized Revenue (Prior Period) $60,090 $48,742 $62,632 $52,167 $59,671 $56,660 Revenue Growth / Prior Period 71.4% 45.0% 115.3% 30.6% 23.6% 57.2% 3 Year Revenue CAGR 39.4% na na 20.3% 27.9% 29.2% Short-Term Deferred Revenue (This Period) $28,131 $68,919 $79,352 $76,693 $42,498 $59,119 Deferred Revenue as a % of Recognized Revenue 27.3% 97.5% 58.9% 112.6% 57.6% 70.8% Mean Analyst Revenue Estimate (Current Year) $291,064 $187,805 $399,718 $166,413 $225,539 $254,108
  • 13. First Half 2009 SaaS Revenues Company CNQR N OMTR RNOW TLEO Average First Half First Half First Half First Half First Half Time Period 2009 2009 2009 2009 2009 ($000s) Market Cap (priced as of the period end date) $982,029 $730,484 $958,152 $379,488 $595,803 $729,191 Recognized Revenue $120,555 $81,871 $174,729 $72,377 $97,176 $109,342 Recognized Revenue (Prior Period) $103,015 $70,671 $134,833 $68,119 $73,731 $90,074 Revenue Growth / Prior Period 17.0% 15.8% 29.6% 6.3% 31.8% 20.1% 3 Year Revenue CAGR 42.2% na 77.0% 13.4% 29.8% 40.6% Short-Term Deferred Revenue (This Period) $31,432 $62,894 $113,564 $75,972 $69,726 $70,718 Deferred Revenue as a % of Recognized Revenue 26.1% 76.8% 65.0% 105.0% 71.8% 68.9% Mean Analyst Revenue Estimate (Current Year) $291,064 $187,805 $399,718 $166,413 $225,539 $254,108
  • 14. How profitable are the leaders? FINANCIAL DASHBOARD OPEXEngine Company CNQR N OMTR RNOW SFSF TRAK ULTI Full Year Full Year Full Year Full Year Full Year Full Year Full Year Time Period 2008 2008 2008 2008 2008 2008 2008 Market Cap (priced as of the period end date) $1,854,041 $509,649 $760,313 $257,888 $308,829 $495,492 $358,985 Recognized Revenue $215,491 $152,476 $295,613 $140,435 $111,913 $242,706 $178,572 Total Operating Income/Loss $26,660 ($18,369) ($43,144) ($9,937) ($65,968) $7,052 ($4,637) Total Operating Profit Margin 12.4% -12.1% -14.6% -7.1% -59.0% 2.9% -2.6% Total Pre-Tax Income/Loss $26,477 ($15,904) ($43,603) ($7,241) ($64,188) $5,697 ($4,056) Total Pre-Tax Margin 12.3% -10.4% -14.8% -5.2% -57.4% 2.4% -2.3% Total Net Income/Loss $17,184 ($15,864) ($44,766) ($7,283) ($64,952) $1,736 ($2,897) Total Net Margin 8.0% -10.4% -15.1% -5.2% -58.0% 0.7% -1.6% EBITDA $47,936 $11,274 ($30,112) ($2,166) ($55,511) $47,468 $5,469 Source: OPEXEngine On-Demand Dashboard
  • 15. Key SaaS Metrics Contracted Monthly Recurring Revenue (CMRR) Cash from operations Net new customers for full year 2008 and first half 2009 Cost per customer to acquire new customer Cost per customer to maintain a customer per month Average contract value per customer Average increase in number of seats per customer for 2008 and for first half 2009 Average up-sell in dollar value per customer for 2008 and for first half 2009 Customer renewal rate during 2008 (as a percent of customers up for renewal during 2008) Dollar renewal rate during 2008 (as a percent of total $ value up for renewal during 2008) Tracked by OPEXEngine
  • 16. 2009 Confidential Benchmarking Participate Today… 2008 and 1H 2009 benchmarks: Income statement and Balance sheet metrics Detailed expense break-outs Sales and customer metrics SaaS specific metrics Customer support, R&D and Product metrics Headcounts by total company, individual departments and geographies Receive an Individual Company Report comparing your company data against 5-6 peer groups (by revenue size, business model, ownership – public versus private, type of customers, growth expectations) Receive the 2009 Industry Report with all benchmarks and all peer groups Open for participation through September 15, 2009 Pricing: $999 for companies with revenues less than $10M; $2500 for companies with revenues between $10M-$100M; and $3500 for companies with revenues over $100M www.opexengine.com lauren@opexengine.com
  • 17. Special Benchmarking Promotion For any webinar participant – receive the following 3 benchmarks for free if you participate fully in the survey: Total compensation and benefits expense as a percent of Recognized Revenue Sales expense as a percent of Recognized Revenue Cost per customer to acquire a new customer To participate for the free benchmarks, contact me directly at lauren@opexengine.com Full benchmarking reports available to participants at normal charges; SIIA members receive a 20% discount.
  • 18. Founded end of 2006 Decades of general management, sales, marketing and operating experience Develop comprehensive operating and financial benchmarks – best data available for software industry Deliver well defined industry comparables to senior executive teams and boards www.opexengine.com 617-674-4218
  • 19. Confidential Software Operating Benchmarks – Customers “The data and benchmarks in OPEXEngine’s Confidential Software Benchmarking Report is not available from any other source and covers both private and public software companies with a variety of business models. The report and data are extremely well put together. It gave us great insights into our own software business and was the basis for a critical presentation to senior management on our strategy going forward. I highly recommend OPEXEngine’s operating benchmarks to any software executive of a large or small company.” Charles Gerlach, Director Business Operations, Software Practice, Sun Microsystems
  • 20. OPEXEngine On-Demand Dashboards with EDGAR Online Download in minutes Excel-based reports on US public company financials with operating ratios already computed: any company, any time period, current to 10 years back "On-Demand Dashboards is a great service that allows me to easily benchmark our performance vs. others in our industry. I track the quarterly financials for several key companies in the software sector using a spreadsheet that I built myself, but compiling the data made the analysis virtually impossible to maintain. The On-Demand Dashboards service takes all that headache away and in 5 minutes I can put together a great report to present at our Board meeting." Todd Palmieri, CFO of Boomi
  • 21. Software as a Service Perspectives Confidential – Property of TripleTree, LLC ‐ Not For Distribution
  • 22. SaaS is a “Game Changer” in Technology,  Consulting, and Outsourcing • Overview – Maturation Underway: SaaS vendors by definitions are specialists, but platforms are emerging Spotlight Research – Wake Up Calls Answered: Household name tech firms are now becoming SaaS  contenders – New Entrants: Non‐traditional firms (Consumer, Retail, Web) are paving inroads into  traditional tech strongholds – Best Exits: M&A to both traditional and non‐traditional acquirers – Leaders: Best‐of‐breed private companies (<$25M Revenue) are relevant to $1B  franchises – Looking ahead: “Convergence” • Pioneering privately‐held companies • Evolution of ISVs to on‐demand • BPO leveraging on‐demand for higher‐margin outsourcing • Entrance of new players (non‐traditional); the “Google effect” • Key Trends – Analytics – Automated decision making is becoming more and more challenging as businesses  seek deeper insight and predictive knowledge for smarter business outcomes – Currently a fragmented market, emerging players are taking advantage of industry  verticals that are investing in solutions to help better predict future business Annual Market Synopsis • Key Trends – Collaboration – Leading enterprise vendors are expanding their collaboration capabilities and  integrating workflow tools into existing software platforms – IBM and Microsoft are  prime examples – Global enterprises beginning to realize the efficiency gains brought about by the  implementation of compliance toolsets Confidential – Property of TripleTree, LLC - Not For Distribution
  • 23. A “Separation from the Pack” is Starting to Occur for SaaS Firms Of the 2,200 SaaS firms  EBITDA Margin TripleTree tracks, 90%  Top 10% of SaaS firms have less than $15m  40% GAAP revenue 35% 30% Many are growing  25%+ 25% 20% Margin expansion with  multi‐tenant benefits 15% 10% 2007 was a major  turning point 5% 0% Revenue 2009 – 2010 will be  -10% 0% 10% 20% 30% 40% Growth 5 another key period -5% -10% Source: TripleTree, CapitalIQ * Denoted by logos: Public Co’s or S‐1 Filed Confidential – Property of TripleTree, LLC - Not For Distribution (1) Based on TripleTree’s database of 2,200+  Software as a Service firms. * All figures reflect fiscal year financial data
  • 24. Capital Markets Continue to Reward Recurring Revenue and  SaaS Business Models Stock performance for the on‐demand index continues to be strong. TripleTree’s public Software as a Service index consists of the  firms listed below; although, the sector is defined by private companies with TripleTree’s Software as a Service database consisting of  more than 2,200 firms. Software as a Service Index 230 On-Premise Software Index 210 190 Relative  Performance (%) 170 150 On‐demand  130 premium 110 90 70 50 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Source: TripleTree, CapitalIQ Confidential – Property of TripleTree, LLC - Not For Distribution
  • 25. Performance of Companies Over $100m in Revenue vs Companies With Less than $100m Commentary… Commentary… Stock Performance Stock Performance % Change Relative Performance 140 S&P 500 $100m (+) • Software as a Service  typically spawns  Revenue Greater Than $100m 120 “specialists” vendors who  gravitate towards  100 Revenue Less Than $100m 28% $100(+)  platforms above $100   80 (‐) • The firms over $100m in  revenue are trading at  60 13% $100 (+)  above S&P  premiums 500 40 • Industry still dominated  20 by Salesforce.com,  Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Omniture, Blackboard,  and Concur which  $100m (‐) account for 30% of the  $100m (+) $100m (+) $100m (‐) $100m (‐) $6b industry $100 (‐)  below S&P  (15%) 500 Confidential – Property of TripleTree, LLC - Not For Distribution
  • 26. Performance of Subscription vs Transaction‐based Models Stock Performance Stock Performance % Change Commentary… Commentary… Relative Performance S&P 500 160 Subscription Model: Subscription Transaction Based Revenue • Monthly or yearly subscription  140 fee for usage (ex.  Subscription Based Revenue 120 Salesforce.com’s $50/user per  month 28% Subscription  100 • Revenue far more predictable,  above  • Excellent visibility to future  80 transaction revenue 60 17% Subscription  Transaction Model: above S&P  40 • Click charge or pay as you use  500 (ex. DealerTrack’s $5/per usage  20 fee) 0 • Revenue less predictable • Most solutions are “sticky” Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 with high customer retention  Transaction rates • Companies typically have some  visibility to future revenue  Subscription Subscription Transaction Transaction projections either through  Transaction  customer usage built into  below S&P  contracts or monthly  minimums (11%) 500 Confidential – Property of TripleTree, LLC - Not For Distribution
  • 27. TEV/Revenue Performance Commentary… Commentary… Revenue Size Revenue Size % Change 10.0x • Difficult global  Revenue 9.0x Greater Than $100m economic conditions,  Revenue 8.0x High:  tighter credit markets  7.0x Less Than $100m Revenue 9.2x and political uncertainty  TEV/Revenue 6.0x October 2007 are weighing heavily on  5.0x the capital markets.   4.0x Low: 1.4x 3.0x • Every sector is being  November 2008 2.0x SaaS IPO Boom  SaaS IPO Boom  impacted 1.0x inflated multiples inflated multiples Current: 0.0x 2.2x ‐ 3.0x • Software as a Service   Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 remains a “hot” topic,  however valuations  Delivery Model Delivery Model Delivery Model 14.0x have dropped from  High:  February highs of late 2007  12.0x October Scare October Scare February 12.7x Bottom Transaction Based October 2007 Bottom 10.0x TEV/Revenue • The SaaS market is sized  Subscription Based 8.0x Low: at $6b today and is  1.9x projected to reach $15B  6.0x November 2008 in 2011 (1) 4.0x Current: 2.0x 2.8x – 3.5x 0.0x Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 (1) Credit Suisse Confidential – Property of TripleTree, LLC - Not For Distribution
  • 28. Analysis of Recent SaaS Transactions 6 Categories of 40 Criteria m Recent M&A comps & TripleTree’s proprietary scoring  ste system provide a glimpse into the drastic fluctuations in  ility Ecosy ue valuation.  en Sca ure & er s Rev ocu ead lity lab ing al F ect et L bi th fita urr hit rtic ow rk Seller Arc Rec Pro P/R Ma Ve Gr Date Buyer Seller Description Jul‐08 Vertafore Sircon On‐demand automation solutions to  3.5x TripleTree Represented the insurance industry Feb‐09 Descartes Oceanwide On‐demand provider of global trade  1.5x management and customs  compliance solutions Jul‐09 Wolters Axentis On‐demand provider of enterprise  1.0x Kluwer governance, risk, and compliance  (GRC) applications Jul‐09 NetSuite QuickArrow Web‐based professional services  2.0x automation and management  software  Jun‐09 Inuit PayCycle Provides online payroll services  5.7x May‐09 Blackboard Angel Learning Enterprise eLearning software 4.3x Apr‐09 Vista Equity  SumTotal Learning, performance, and talent  1.0x Partners Systems development software  Confidential – Property of TripleTree, LLC - Not For Distribution
  • 29. TripleTree’s View on the Marketplace IPO market continues to be stagnant Tighter economic times and political uncertainty have weighed on the capital markets and M&A climate More difficult credit markets have shifted M&A from an equal weighting between strategic acquirers and private equity firms back primarily to strategic acquirers Middle market M&A climate remains solid since most acquirers need to make acquisitions to deliver growth Recurring business models – like Software as a Service – remains a “hot” topic and receives premium valuations Benchmarking successful firms takes on a new importance as vendors struggle to differentiate and grow Confidential – Property of TripleTree, LLC - Not For Distribution
  • 30. Appendix A:  SaaS Public Comps Confidential – Property of TripleTree, LLC ‐ Not For Distribution
  • 31. Public SaaS Comps Broken Out By Revenue Stock Market Data Financial Summary Historical Growth Valuation Multiples FY Proj.  FY Proj.  LTM Net  Market Cap  Revenue  EBITDA      LTM Revenue   LTM EBITDA     Income LTM EBITDA  LTM Rev.  LTM EBITDA  TEV / 2009e  TEV / 2009e  TEV / LTM  TEV /  Company Ticker Stock $ (in $mill.) (in $mill.) (in $mill.) (in $mill.) (in $mill.) (in $mill.) Margin Growth  Growth  Revenue EBITDA Revenue EBITDA Revenue Greater than $100m Athenahealth, Inc. ATHN $35.9 $1,204.0 $191.6 $34.7 $151.9 $19.4 $29.4 13% 30% 45% 5.9x 32.4x 7.4x 58.0x Blackboard Inc. BBBB $35.6 $1,055.1 $372.1 $85.9 $330.1 $61.1 $7.2 19% 23% 33% 2.9x 12.4x 3.2x 17.4x Concur Technologies, Inc. CNQR $37.0 $1,675.4 $247.4 $73.2 $233.0 $55.5 $22.7 24% 20% 30% 5.9x 19.9x 6.2x 26.2x Constant Contact, Inc. CTCT $21.5 $600.3 $128.9 $10.6 $97.2 $1.1 ‐$3.4 NM 42% 15% 3.8x 46.7x 5.1x NM DealerTrack Holdings, Inc. TRAK $18.1 $761.5 $231.1 $33.5 $234.1 $34.3 ‐$6.2 15% ‐7% ‐41% 2.6x 17.9x 2.6x 17.5x Kenexa Corp. KNXA $12.1 $284.7 $156.9 $28.2 $194.4 $29.3 ‐$143.8 15% 22% ‐28% 1.6x 9.0x 1.3x 8.7x NetSuite, Inc. N $12.2 $768.7 $166.1 $10.1 $163.7 ‐$11.3 ‐$19.4 NM 25% 37% 3.9x NA 4.0x NM Omniture Inc. OMTR $13.8 $1,072.2 $354.6 $74.3 $335.5 $34.4 ‐$38.4 10% 56% 854% 2.7x 13.0x 2.9x 28.2x Rightnow Technologies Inc. RNOW $12.3 $404.5 $149.2 $15.7 $144.7 $6.3 $0.5 NM 13% ‐168% 2.1x NM 2.2x NM Salesforce.com CRM $45.4 $5,569.9 $1,264.7 $252.9 $1,134.1 $111.0 $52.3 10% 23% 50% 4.0x 20.1x 4.5x 45.8x SuccessFactors, Inc. SFSF $10.6 $608.9 $148.3 ‐$13.1 $134.9 ‐$31.8 ‐$34.4 NM 58% ‐60% 3.4x NA 3.7x NM Synchronoss Technologies, Inc. SNCR $11.8 $358.1 $125.3 $34.7 $117.7 $23.4 $9.7 20% ‐5% ‐35% 2.3x 8.4x 2.5x 12.4x Taleo Corp. TLEO $17.6 $524.5 $199.5 $47.4 $192.0 $16.5 ‐$10.7 9% 34% 40% 2.3x 9.8x 2.4x 28.1x Ultimate Software Group Inc. ULTI $26.1 $642.6 $199.7 $22.2 $189.7 $6.5 ‐$3.2 3% 15% ‐45% 3.1x 27.7x 3.2x 94.5x Average: $22.1 $1,109.3 $281.1 $50.7 $260.9 $25.4 ‐$9.8 14% 25% 52% 3.3x 19.8x 3.7x 33.7x Median: $17.9 $702.1 $195.6 $34.1 $190.8 $21.4 ‐$3.3 14% 23% 23% 3.0x 17.9x 3.2x 27.2x Revenue Less than $100m DemandTec, Inc. DMAN $8.6 $248.4 $81.4 $3.8 $76.5 ‐$3.1 ‐$7.6 NM 16% 9% 2.2x 48.1x 2.4x NM LivePerson Inc. LPSN $4.1 $197.1 $84.7 $18.8 $77.5 $8.8 ‐$22.4 11% 19% 83% 2.0x 9.0x 2.2x 19.1x LogMeIn, Inc. LOGM $19.0 $421.9 NA NA $59.0 $3.3 $0.4 NM 59% ‐142% NA NA 6.7x NM LoopNet, Inc. LOOP $8.1 $284.7 $75.5 $29.5 $82.8 $24.4 $13.5 29% 2% ‐23% 2.8x 7.2x 2.6x 8.7x OpenTable, Inc. OPEN $30.2 $652.3 NA NA $58.6 $5.4 ‐$0.6 NM 42% 50% NA NA 10.7x NM Salary.com, Inc. SLRY $2.9 $48.3 $48.0 NA $42.5 ‐$18.6 ‐$26.5 NM 16% 39% 0.7x NA 0.8x NM Vocus Inc. VOCS $15.6 $298.6 $84.5 $18.1 $82.1 $5.0 $0.9 6% 20% 21% 2.5x NA 2.5x 41.8x Average: $12.6 $307.3 $74.8 $17.5 $68.4 $3.6 ‐$6.0 16% 25% 5% 2.0x 21.4x 4.0x 23.2x Median: $8.6 $284.7 $81.4 $18.4 $76.5 $5.0 ‐$0.6 11% 19% 21% 2.2x 9.0x 2.5x 19.1x Composite Average: $19.3 $826.4 $225.4 $42.5 $198.6 $18.0 ‐$8.3 13% 25% 33% 3.0x 19.8x 3.7x 34.7x Median: $17.6 $608.9 $191.6 $31.5 $163.7 $16.5 ‐$3.3 13% 23% 23% 2.8x 17.9x 3.8x 32.0x Confidential – Property of TripleTree, LLC - Not For Distribution
  • 32. Public SaaS Comps Broken Out By Delivery Type Stock Market Data Financial Summary Historical Growth Valuation Multiples FY Proj.  FY Proj.  LTM Net  Market Cap  Revenue  EBITDA      LTM Revenue   LTM EBITDA     Income LTM EBITDA  LTM Rev.  LTM EBITDA  TEV / 2009e  TEV / 2009e  TEV / LTM  TEV /  Company Ticker Stock $ (in $mill.) (in $mill.) (in $mill.) (in $mill.) (in $mill.) (in $mill.) Margin Growth  Growth  Revenue EBITDA Revenue EBITDA Subscription Based Revenue Blackboard Inc. BBBB $35.6 $1,055.1 $372.1 $85.9 $330.1 $61.1 $7.2 19% 23% 33% 2.9x 12.4x 3.2x 17.4x Concur Technologies, Inc. CNQR $37.0 $1,675.4 $247.4 $73.2 $233.0 $55.5 $22.7 24% 20% 30% 5.9x 19.9x 6.2x 26.2x DemandTec, Inc. DMAN $8.6 $248.4 $81.4 $3.8 $76.5 ‐$3.1 ‐$7.6 NM 16% 9% 2.2x 48.1x 2.4x NM Kenexa Corp. KNXA $12.1 $284.7 $156.9 $28.2 $194.4 $29.3 ‐$143.8 15% 22% ‐28% 1.6x 9.0x 1.3x 8.7x LivePerson Inc. LPSN $4.1 $197.1 $84.7 $18.8 $77.5 $8.8 ‐$22.4 11% 19% 83% 2.0x 9.0x 2.2x 19.1x LogMeIn, Inc. LOGM $19.0 $421.9 NA NA $59.0 $3.3 $0.4 NM 59% ‐142% NA NA 6.7x NM NetSuite, Inc. N $12.2 $768.7 $166.1 $10.1 $163.7 ‐$11.3 ‐$19.4 NM 25% 37% 3.9x NA 4.0x NM Omniture Inc. OMTR $13.8 $1,072.2 $354.6 $74.3 $335.5 $34.4 ‐$38.4 10% 56% 854% 2.7x 13.0x 2.9x 28.2x Rightnow Technologies Inc. RNOW $12.3 $404.5 $149.2 $15.7 $144.7 $6.3 $0.5 NM 13% ‐168% 2.1x NM 2.2x NM Salary.com, Inc. SLRY $2.9 $48.3 $48.0 NA $42.5 ‐$18.6 ‐$26.5 NM 16% 39% 0.7x NA 0.8x NM Salesforce.com CRM $45.4 $5,569.9 $1,264.7 $252.9 $1,134.1 $111.0 $52.3 10% 23% 50% 4.0x 20.1x 4.5x 45.8x SuccessFactors, Inc. SFSF $10.6 $608.9 $148.3 ‐$13.1 $134.9 ‐$31.8 ‐$34.4 NM 58% ‐60% 3.4x NA 3.7x NM Taleo Corp. TLEO $17.6 $524.5 $199.5 $47.4 $192.0 $16.5 ‐$10.7 9% 34% 40% 2.3x 9.8x 2.4x 28.1x Ultimate Software Group Inc. ULTI $26.1 $642.6 $199.7 $22.2 $189.7 $6.5 ‐$3.2 3% 15% ‐45% 3.1x 27.7x 3.2x 94.5x Vocus Inc. VOCS $15.6 $298.6 $84.5 $18.1 $82.1 $5.0 $0.9 6% 20% 21% 2.5x NA 2.5x 41.8x Average: $18.2 $921.4 $254.1 $49.0 $226.0 $18.2 ‐$14.8 $0.1 28% 50% 2.8x 18.8x 3.2x 34.4x Median: $13.8 $524.5 $161.5 $22.2 $163.7 $6.5 ‐$7.6 $0.1 22% 30% 2.6x 13.0x 2.9x 28.1x Transaction Based Revenue Athenahealth, Inc. ATHN $35.9 $1,204.0 $191.6 $34.7 $151.9 $19.4 $29.4 13% 30% 45% 5.9x 32.4x 7.4x 58.0x Constant Contact, Inc. CTCT $21.5 $600.3 $128.9 $10.6 $97.2 $1.1 ‐$3.4 NM 42% 15% 3.8x 46.7x 5.1x NM DealerTrack Holdings, Inc. TRAK $18.1 $761.5 $231.1 $33.5 $234.1 $34.3 ‐$6.2 15% ‐7% ‐41% 2.6x 17.9x 2.6x 17.5x LoopNet, Inc. LOOP $8.1 $284.7 $75.5 $29.5 $82.8 $24.4 $13.5 29% 2% ‐23% 2.8x 7.2x 2.6x 8.7x OpenTable, Inc. OPEN $30.2 $652.3 NA NA $58.6 $5.4 ‐$0.6 NM 42% 50% NA NA 10.7x NM Synchronoss Technologies, Inc. SNCR $11.8 $358.1 $125.3 $34.7 $117.7 $23.4 $9.7 20% ‐5% ‐35% 2.3x 8.4x 2.5x 12.4x Average: $20.9 $643.5 $150.5 $28.6 $123.7 $18.0 $7.1 $0.2 17% 2% 3.5x 22.5x 5.1x 24.2x Median: $19.8 $626.3 $128.9 $33.5 $107.4 $21.4 $4.6 $0.2 16% ‐4% 2.8x 17.9x 3.8x 15.0x Composite Average: $19.0 $842.0 $226.8 $43.4 $196.8 $18.1 ‐$8.6 $0.1 25% 36% 3.0x 20.1x 3.8x 31.3x Median: $15.6 $600.3 $156.9 $28.9 $144.7 $8.8 ‐$3.2 $0.1 22% 21% 2.7x 15.5x 2.9x 26.2x Confidential – Property of TripleTree, LLC - Not For Distribution
  • 33. Q&A *Lauren Kelley, CEO, OPEXEngine lauren@opexengine.com *Scott Prentice, Associate, TripleTree sprentice@triple-tree.com

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