Spring 2014 Real Estate Software Market Update and Vendor Landscape
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Real Estate Software Industry Market and M&A Data. Insight into industry valuation trends, M&A and key vendors by real estate segment.

Real Estate Software Industry Market and M&A Data. Insight into industry valuation trends, M&A and key vendors by real estate segment.

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  • 1. Spring 2014 Real Estate Software Market Update & Ecosystem / Landscape of Software Providers May 2014
  • 2. About SEG • Twenty-one year, exclusive focus on software advisory services to lower & middle market representing companies seeking: • Strategic exit • Growth capital • Buyout • Inorganic growth via acquisition • Fairness opinions and valuations • Board advisory services • Clients span virtually every technology, product category, delivery model and vertical market • Global presence providing advice and guidance to more than 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, track record and industry research • Highly referenceable base of past clients and buyers / investors Focus on Advice Multi-service Multi- Industry Focus on Software Advisory Boutiques Bulge Bracket Firms IPO Boutiques Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL
  • 3. Recent SEG Real Estate Related Transaction News SAN DIEGO, CA –April 15, 2014. Software Equity Group, LLC (SEG) announced today its client, Dean Evans & Associates, Inc. (dba Event Management Systems) the leading provider of facility scheduling and event management software, has received a strategic growth equity investment from JMI Equity, a leading growth equity firm focused on investing in leading software and technology-enabled services companies. Founded in 1986 and headquartered in Centennial Colorado, Dean Evans & Associates (DEA) provides a full suite of meeting and event scheduling, resource management, academic scheduling, shared workspace management (office “hoteling”), web calendaring and online registration/survey solutions. More than 4,000 organizations in over 75 countries rely on DEA’s Event Management System (EMS) software, including many Fortune 100 companies and other leading corporations, higher education institutions, law firms, conference centers, religious organizations, hospitals, cultural venues and sports facilities. “For over 25 years, our team has been focused on providing our customers with the best in facility management software, along with the highest levels of customer service,” said Dean Evans, CEO and founder of DEA. ”EMS is a premier brand with a strong competitive advantage, offering the most comprehensive package of services on the market. With JMI’s expertise in growing enterprise software companies, along with its experience in higher education, we feel better than ever about our ability to continue to innovate and grow our offering.” “We share the DEA team’s vision for the future and look forward to supporting the company in achieving its growth objectives,” said Brian Hersman, General Partner at JMI Equity. ”DEA’s opportunity fits well with JMI’s strategy of bringing expertise and resources to build on a foundation of strong market and product leadership.” .
  • 4. SEG’s Strong Real Estate Industry Transaction Experience Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL Real Estate SaaS Provider of subscription-based vendor screening and risk management solutions to the multifamily housing industry Real Estate SaaS Provider of property and resident management software to long- term industry Real Estate On-premise Complete property management for affordable housing (resold tenant screening solution) Real Estate Hybrid Provider of real estate investment budgeting and forecasting solutions to property managers, REITs & PE firms Real Estate SaaS Provider of facilities management solutions to the global corporate and commercial property market Real Estate SaaS Provider of project management, collaboration and bid management solutions for retail store design and construction Real Estate On-premise Provider of plant and facility design and engineering software Real Estate On-premise Provider of Event and Room Management Software Real Estate On-premise Provider of Integrated Workplace Management Software (IWMS) BuyerBusiness DescriptionClient Category Delivery Model
  • 5. SEG’s Strong Private Equity Relationships and Deal Experience Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL With approximately $70 billion in capital commitments, Apax Partners is an independent global partnership focused solely on long-term investment in growth companies. With approximately $7 billion in capital commitments, Vista Equity Partners is a leading private equity firm focused on investing in software and technology-enabled businesses. With approximately $4 billion in capital commitments, Thoma Bravo invests in many industries and has particular expertise in software, business and financial services, and education. With approximately $1.7 billion in capital commitments, Arsenal Capital Partners invests in middle-market companies with revenues ranging from $30 to $400 million. With over 9 billion in capital commitments, New Mountain is a generalist firm that pursues attractive investment opportunities across a full spectrum of industries and styles. dmg :: information comprises a portfolio of high growth, innovative, must-have information media businesses in the property, education, energy and commodity and structured finance sectors. - With over $2.6 billion in capital commitments, Marlin Equity Partners is a leading private equity firm focused on investments in technology, healthcare services, business services and several other industries. Pequot Capital Management was a multi-billion dollar hedge fund sponsor founded in 1998 that announced it was closing in 2009. JMI is a growth equity firm focused on investing in leading software and technology-enabled services companies. The Carlyle Group is a global alternative asset manager with more than $180 billion in assets under management across 118 funds and 81 fund of funds vehicles. PE Firm DescriptionClient(s) PE Firm
  • 6. REAL ESTATE MARKET UPDATE
  • 7. SOFTWARE EQUITY GROUP | CONFIDENTIAL SEG-Landscape: Multi-Family Real Estate Technology* Accounting Applicant Screening Property Mgmt. CRM Web Portals /Marketing Internet Listings Property Management Vendor Ecosystem Revenue Mgmt. Spend Mgmt. Utility Billing & Energy Mgmt. Payments * Not all inclusive
  • 8. SOFTWARE EQUITY GROUP | CONFIDENTIAL SEG-Landscape: Commercial/Corporate Real Estate Technology* Data/Info. Services Facilities Mgmt. Investment Mgmt. IWMS Facilities Design/AEC Construction Vendor Ecosystem Capital Planning Vertical Providers Space Mgmt. Lease Administration * Not all inclusive
  • 9. SOFTWARE EQUITY GROUP | CONFIDENTIAL SEG-Landscape: “For Sale” Real Estate Technology* Property Search/ Lead Gen Home Services/ Lead Gen Broker CRM Vendor Ecosystem Broker Marketing MLS Residential Construction Property Search (Vacation Rentals) Mortgage Orig./ Finance Other
  • 10. SOFTWARE EQUITY GROUP | CONFIDENTIAL Real Estate Technology M&A Activity • Broad landscape of providers with high concentration of point solution offerings • Sector public companies currently performing well & actively pursuing M&A to fill product gaps, consolidate segments, and drive growth • General sector buyer acquisition appetite high Top 5 M&A Volume: 2009 - Present 1. Property Management (32 deals) 2. Commercial Construction (25 deals) 3. IWMS & Facilities Management, Mortgage Orig. / Finance (24 deals each) 4. Broker CRM/Marketing, Property Search / Lead Gen (22 deals each) Top 5 M&A Volume: TTM 1. IWMS & Facilities Management (8 deals) 2. Commercial Construction (7 deals) 3. Property Management (6 deals) 4. Broker CRM/Marketing, Property Search / Lead Gen, Data/Info. Services (5 deals each)
  • 11. SOFTWARE EQUITY GROUP | CONFIDENTIAL Public Companies: Real Estate Technology Company Ticker Category Enterprise Value (mm) LTM Rev (mm) LTM EBITDA (mm) LTM Rev Growth LTM Gross Margin LTM EBITDA Margin EV/ Rev EV/ EBITDA Angie’s List, Inc. NASDAQ: ANGI HomeServices Lead Gen $603.3 $266.1 -$19.4 50.5% 73.9% -7.3% 2.3x - Autodesk, Inc. NASDAQ: ADSK Facilities Design/AEC $9,300.5 $2,273.9 $426.5 -1.7% 87.9% 18.8% 4.1x 21.8x AvevaGroup plc LSE:AVV Facilities Design/AEC $1,944.3 $390.3 $114.9 10.9% 92.6% 29.4% 5.0x 16.9x CoreLogic, Inc. NYSE: CLGX Data/Info. Services $3,956.5 $1,309.7 $231.4 -18.5% 48.1% 17.7% 3.0x 15.7x CoStar Group, Inc. NASDAQ: CSGP Data/Info. Services $4,562.7 $456.0 $116.2 18.3% 71.9% 25.5% 10.0x 39.3x EllieMae, Inc. NYSE: ELLI MortgageOrig. /Finance $614.3 $128.5 $25.1 26.2% 74.5% 19.5% 4.8x 24.5x Homeaway, Inc. NASDAQ: AWAY Property Search /Lead Gen $2,622.0 $372.7 $60.7 26.0% 84.6% 16.3% 7.0x 43.2x Move, Inc. NASDAQ: MOVE Property Search /Lead Gen $385.6 $227.0 $13.6 14.0% 79.8% 6.0% 1.7x 24.2x Nemetscheck AG XTRA: NEM Facilities Design/AEC $737.8 $260.6 $52.3 6.0% 53.5% 20.1% 2.8x 14.1x RealPage, Inc. NASDAQ: RP Property Management $1,368.1 $377.0 $54.2 17.0% 60.7% 14.4% 3.6x 25.2x TexturaCorporation NYSE: TXTR Commercial Construction $365.3 $40.8 -$33.2 70.1% 68.6% -81.5% 9.0x - Trulia, Inc. NYSE: TRLA Property Search /Lead Gen $1,224.7 $174.2 -$17.1 118.0% 82.8% -9.8% 7.0x - Zillow, Inc. NASDAQ: Z Property Search /Lead Gen $3,772.4 $197.5 -$5.5 69.1% 90.5% -2.8% 19.1x - ZipRealty, Inc. NASDAQ: ZIPR Broker CRM /Marketing $55.1 $75.9 -$2.7 2.8% 42.4% -3.6% 0.7x - High: $9,300.5 $2,273.9 $426.5 118.0% 92.6% 29.4% 19.1x 43.2x Low: $55.1 $40.8 -$33.2 -18.5% 42.4% -81.5% 0.7x 14.1x Average: $2,250.9 $467.9 $72.6 29.2% 72.3% 4.5% 5.7x 25.0x Median: $1,296.4 $263.4 $38.7 17.7% 74.2% 15.4% 4.5x 24.2x *Data as of May 1 , 2014 Public Company Operating Performance and Market Valuation
  • 12. SOFTWARE EQUITY GROUP | CONFIDENTIAL Stock Market Performance: Property Search / Lead Gen *Data as of May 1 , 2014 0.00x 5.00x 10.00x 15.00x 20.00x 25.00x 30.00x EV/Revenue Zillow, Inc. (NasdaqGS:Z) - TEV/Total Revenues Trulia, Inc. (NYSE:TRLA) - TEV/Total Revenues HomeAway, Inc. (NasdaqGS:AWAY) - TEV/Total Revenues Move, Inc. (NasdaqGS:MOVE) - TEV/Total Revenues Angie's List, Inc. (NasdaqGS:ANGI) - TEV/Total Revenues 0.00b 1.00b 2.00b 3.00b 4.00b 5.00b Market Capitalization Zillow, Inc. (NasdaqGS:Z) - Market Capitalization Trulia, Inc. (NYSE:TRLA) - Market Capitalization HomeAway, Inc. (NasdaqGS:AWAY) - Market Capitalization Move, Inc. (NasdaqGS:MOVE) - Market Capitalization Angie's List, Inc. (NasdaqGS:ANGI) - Market Capitalization
  • 13. SOFTWARE EQUITY GROUP | CONFIDENTIAL Stock Market Performance: Facility Design / AEC *Data as of May 1 , 2014 0.00b 2.00b 4.00b 6.00b 8.00b 10.00b 12.00b 14.00b Market Capitalization Autodesk, Inc. (NasdaqGS:ADSK) - Market Capitalization Nemetschek AG (XTRA:NEM) - Market Capitalization Aveva Group plc (LSE:AVV) - Market Capitalization 0.00x 1.00x 2.00x 3.00x 4.00x 5.00x 6.00x 7.00x 8.00x EV/Revenue Autodesk, Inc. (NasdaqGS:ADSK) - TEV/Total Revenues Nemetschek AG (XTRA:NEM) - TEV/Total Revenues Aveva Group plc (LSE:AVV) - TEV/Total Revenues
  • 14. SOFTWARE EQUITY GROUP | CONFIDENTIAL Stock Market Performance: SaaS/Subscription *Data as of May 1 , 2014 0.00b 1.00b 2.00b 3.00b 4.00b 5.00b 6.00b 7.00b Market Capitalization RealPage, Inc. (NasdaqGS:RP) - Market Capitalization Textura Corporation (NYSE:TXTR) - Market Capitalization Ellie Mae, Inc. (NYSE:ELLI) - Market Capitalization CoStar Group Inc. (NasdaqGS:CSGP) - Market Capitalization 0.00x 5.00x 10.00x 15.00x 20.00x 25.00x 30.00x 35.00x 40.00x EV/Revenue RealPage, Inc. (NasdaqGS:RP) - TEV/Total Revenues Textura Corporation (NYSE:TXTR) - TEV/Total Revenues Ellie Mae, Inc. (NYSE:ELLI) - TEV/Total Revenues CoStar Group Inc. (NasdaqGS:CSGP) - TEV/Total Revenues
  • 15. SOFTWARE EQUITY GROUP | CONFIDENTIAL Top 10 Real Estate Technology M&A by Enterprise Value (EV) Date Buyer Seller Enterprise Value ($mm) EV / Rev EV / EBITDA Category Business Description 04/27/11 CoStar Group Inc. LoopNet, Inc. 654.2 8.2x 30.3x Property Search/Data Services LoopNet.com enables commercial real estateagents workingon behalf of property owners and landlords to list properties for saleor for lease, and submit detailed information on property listings to find abuyer or tenant. 03/03/14 CoStar Group Inc. Apartments.co m, L.L.C. $585.0 6.8x 22.9x Property Search Apartments.com provides apartment Internet listingsubscription services, providingrental units from managed properties, newspaper classifieds, and for-rent-by-owner properties and offeringrenters adatabaseof houses, condos, duplexes, etc. 05/08/13 Trulia, Inc. Market Leader, Inc. 314.3 6.6x - Broker CRM/Marketing MarketLeader offers real estateprofessionals software-as-a-serviceCRM and marketing tools to help customers build relationships with homebuyers and sellers through the Internet. 01/11/11 CoreLogic, Inc. RP DataPty Ltd. 270.0 4.7x 11.8x Data/Information Services RP DataLtd. provides subscription-based access to commercial and residential property information for real estateagents, valuers, property developers, financial institutions, and stateand federal government departments. 03/24/11 Davis + Henderson Corporation Mortgagebot LLC 231.8 6.1x 11.5x Mortgage Orig./Finance Mortgagebot provides softwareas aservicemortgagepoint-of-salesolutions to banks and credit unions in theUnited States. 03/22/12 PRIMEDIA Inc. Rent.com 145.0 - - Property Search Rent.com is an Internet listingsiteprovidingrental advertisement and related services in the United States. It enables renters to find residential rental property listingonline, including contact information, pricing, photos, floor plans, and virtual tours. 04/12/11 Altus Group Limited ARGUS Software, Inc. 140.5 5.6x 20.8x Investment Management ARGUSSoftware, Inc. provides investment asset management and financial analysis solutions to thecommercial real estateindustry globally. 12/01/09 VistaEquity Partners MRI Software 128.0 1.7x - Property Management MRI SoftwareLLC provides business management softwaresolutions for multifamily and commercial property industry worldwide. 08/22/11 RealPage, Inc. MyNewPlace 74.9 4.5x - Property Management MyNewPlace.com is an apartment and homerentals Web site, offeringInternet listing services; and provides access to property information, includingphoto galleries, videos, and neighborhood information for renters. 11/03/10 RealPage, Inc. Level OneInc. 62.0 2.7x - Property Management Level OneInc. provides outsourced contact solutions and coreleasingsoftwarefor themulti- family apartment industry. *Data set 2009 - present
  • 16. SOFTWARE EQUITY GROUP | CONFIDENTIAL Top 10 Real Estate Technology M&A by EV/Revenue Multiple Date Buyer Seller Enterprise Value ($mm) EV / Rev EV / EBITDA Category Business Description 05/02/12 Zillow, Inc. RentJuice Corporation $37.4 102.4x - Property Management RentJuiceCorporation providesSaaaSRental Relationship Management (RRM) softwarefor real estateprofessionals. Thecompany’s onlineRRM platform connects prospectiverenters, brokers, and property managers to each other in real-time. 04/27/11 CoStar Group Inc. LoopNet, Inc. $654.2 8.2x 30.3x Property Search/Data Services LoopNet.com enables commercial real estateagents workingon behalf of property owners and landlords to list properties for saleor for lease, and submit detailed information on property listings to find abuyer or tenant. 08/19/13 Zillow, Inc. StreetEasy, Inc. $50.0 7.9x 42 Property Search StreetEasy, Inc. provides for-saleand for-rent listings and information of real estate properties in New York. It offers information primarily about condos, co-ops, new developments, and luxury real estatethrough its Websiteand mobileapplication. 03/03/14 CoStar Group Inc. (NasdaqGS:CSG P) Apartments.co m, L.L.C. $585.0 6.8x 22.9x Property Search Apartments.com provides apartment Internet listingsubscription services, providingrental units from managed properties, newspaper classifieds, and for-rent-by-owner properties and offeringrenters adatabaseof houses, condos, duplexes, etc. 05/08/13 Trulia, Inc. Market Leader, Inc. $314.3 6.6x - Broker CRM/Marketing MarketLeader offers real estateprofessionals software-as-a-serviceCRM and marketing tools to help customers build relationships with homebuyers and sellers through the Internet. 03/24/11 Davis + Henderson Corporation Mortgagebot LLC $231.8 6.1 11.5 Mortgage Orig./Finance Mortgagebot provides softwareas aservicemortgagepoint-of-salesolutions to banks and credit unions in theUnited States. 04/12/11 Altus Group Limited ARGUS Software, Inc. $140.5 5.6x 20.8x Investment Management ARGUSSoftware, Inc. provides investment asset management and financial analysis solutions to thecommercial real estateindustry globally. 01/11/11 CoreLogic, Inc. RP DataPty Ltd. $270.0 4.7x 11.8 Data/Information Services RP DataLtd. provides subscription-based access to commercial and residential property information for real estateagents, valuers, property developers, financial institutions, and stateand federal government departments. 08/22/11 RealPage, Inc. MyNewPlace.co m $74.9 4.5x - Property Management MyNewPlace.com is an apartment and homerentals Web site, offeringInternet listing services; and provides access to property information, includingphoto galleries, videos, and neighborhood information for renters. 07/29/11 RealPage, Inc. Senior- Living.com, Inc. $14.8 3.6x - Property Management Senior-Living.com offers asearch engine, adviceand information about assisted living, adult day, Alzheimer’s and dementiacare, continuingcareretirement community, homecare, independent living, and nursingcarecommunity services. *Data set 2009 - present
  • 17. SOFTWARE EQUITY GROUP | CONFIDENTIAL Real Estate Technology M&A Activity 2 5 10 6 10 11 2 5 10 13 10 2 7 14 12 15 8 8 14 11 17 2009 2010 2011 2012 2013 2014 Aggregate Quarterly Deal Volume Q1 Q2 Q3 Q4 14 25 48 42 51 44 2009 2010 2011 2012 2013 1Q14 Annualized Aggregate Annual Deal Volume 4 1 0 1 1 0 2 0 1 0 0 3 6 2 1 0 1 2 2 1 3 1 4 2 7 1 1 1 9 2 3 1 7 1 7 8 9 1 0 1 5 1 7 0 5 2 6 55 6 1 1 8 2 6 4 4 1 5 66 5 1 1 8 1 7 3 5 1 5 4 Property Management Data/Information Services Payments Investment Management IWMS & Facilities Management Facilities Design / AEC Commercial Construction Residential Construction Property Search / Lead Gen Home Services Lead Gen Broker CRM/Marketing Mortgage Orig. / Finance Annual Deal Volume By Category 2009 2010 2011 2012 2013 1Q14 TTM *Data set 2009 - present
  • 18. SaaS SOFTWARE MARKET UPDATE
  • 19. SEG SaaS Index: Key Public Company Performance Metrics Measure 4Q12 1Q13 2Q13 3Q13 4Q13 EV/Revenue 4.9x 5.5x 6.2x 7.3x 8.3x EV/EBITDA 38.2x 35.4x 30.2x 39.8x 57.0x EV/Earnings 40.2x 63.9x 106.1x 125.3x 81.9x Gross Profit Margin 70.9% 70.8% 70.8% 70.3% 70.7% EBITDA Margin 5.9% 3.2% 1.4% 1.2% 0.2% Net Income Margin -1.6% -3.9% -4.4% -4.9% -5.0% TTM Revenue Growth 26.8% 25.3% 25.0% 27.3% 26.1% TTM Total Revenue ($M) $117.5 $127.7 $143.1 $163.8 $173.4 TTM EBITDA Growth 5.9% 3.2% 1.4% 1.2% 0.2% TTM Total EBITDA ($M) $5.6 $4.0 $2.6 $1.2 $0.1 Cash & Eq ($M) $67.4 $75.3 $76.2 $92.0 $107.7 Current Ratio 1.6 1.9 1.5 2.3 2.6 Debt / Equity Ratio 6.7% 6.5% 7.1% 10.3% 11.4% SEG - SaaS: Median Metrics • The SEG SaaS Index tracks public companies that primarily offer hosted, on-demand software under a subscription and/or transaction based pricing model • The SEG SaaS Index is currently comprised of 43 public pure-play SaaS companies* • Revenue growth is highly correlated with valuation multiples Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL
  • 20. The SEG SaaS Index: Public Company Market Multiples 7.5x 3.3x 2.6x 3.6x 4.5x 5.0x 7.3x 2007 2008 2009 2010 2011 2012 2013 EV/RevenueMultiple 65.2x 36.9x 31.4x 32.2x 35.2x 35.0x 48.2x 2007 2008 2009 2010 2011 2012 2013 EV/EBITDAMultiple Median EV/Revenue - Annual Median EV/EBITDA - Annual • After plunging to 2.6x in 2009, the median EV/Revenue of public SaaS companies has made a stunning comeback, climbing steadily for four consecutive years to finish 2013 at a whopping 7.3x. • Compared to this 180% increase in the SEG SaaS Index median EV/Revenue multiple, the median multiple of public on-premise software companies grew 106%. At the close of 4Q13, the median EV/Revenue multiple of public SaaS companies is more than twice that of their on-premise software counterparts.(7.3x vs. 3.1x). • The stunning growth in median EV/Revenue of public SaaS companies reflects investors enthusiasm for 25%+ revenue growth, recurring revenue, immense market opportunities (enterprise and SMB), and an M&A feeding frenzy targeting rapidly growing SaaS providers. Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL
  • 21. The SEG SaaS Index: Public Company Market Multiples 0.0x 2.5x 4.6x 6.9x 7.2x 7.7x 21.2x 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x <= 0% > 0% <= 10% > 10% <= 20% > 20% <= 30% > 30% <= 40% > 40% <= 50% > 50% MedianEV/Revenue TTM Revenue Growth 11.9x 5.3x 5.7x 6.5x 4.5x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x <= 0% > 0% <= 10% > 10% <= 20% > 20% <= 30% > 30% MedianEV/Revenue TTM EBITDA Margin EV/Rev Multiples vs. TTM EBITDA Margins – 4Q13EV/Rev Multiples vs. TTM Rev Growth Rates – 4Q13 • Throughout 2013, profitable SaaS companies were penalized with lower market multiples, as investors perceived profitability to have come at the expense of growth. • Note the very strong correlation between the median TTM revenue growth rate and median EV/Revenue multiple of public SaaS companies. Public SaaS companies that grew TTM revenue below 10% received multiples significantly below their high growth peers. • Adjusting EV/Rev multiples to account for public to private liquidity discount* would reduce valuations for 0- 10% and 10%-20% growth companies to 1.9x and 3.5x, respectively * SEG uses industry standard 33% public to private liquidity discount Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL
  • 22. My Experience has received a growth equity investment from Allen Cinzori, Managing Director, leads SEG’s M&A and growth capital advisory practice. Allen has advised on numerous domestic and international transactions. During his career with SEG, he has advised and led more than 50 middle market and lower-middle market transactions across the software and internet sectors. He holds an MBA degree with highest honors (Beta Gamma Sigma) from the University of Southern California's Marshall School of Business, and a Bachelor of Science in Engineering (Cum Laude) from California Polytechnic State University. Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL Select Transactions Led
  • 23. Contact Information acinzori@softwareequity.com www.softwareequity.com (858) 509-2800 The 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 in this 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 in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ. This 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.
  • 24. Appendix
  • 25. Public Company Snapshot: Angie’s List Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL ANGIE'S LIST, INC. (NASDAQGS:ANGI) COMPANY INFORMATION Angie’s List, Inc. operates a consumer-driven solution for its members to research, hire, rate, and review local professionals for home, health care, and automotive service needs. It offers member services comprising member-generated ratings and reviews that provide reviews from members and non-members in approximately 720 categories; and service provider services for members looking for reputable providers of high cost of failure services. As of December 31, 2013, it had approximately 2.5 million paid memberships in 253 local markets in the United States. The company was formerly known as Brownstone Publishing, LLC and changed its name to Angie’s List, Inc. in April 2010. Angie’s List, Inc. was founded in 1995 and is headquartered in Indianapolis, Indiana. Stock Exchange NasdaqGS Latest Fiscal Year 12/31/2013 Primary Industry Internet Software and ServicNext Earnings Date n/a Website http://www.angieslist.com Latest Fiscal Quarter 3/31/2014 S&P LT Rating n/a S&P STARS Ranking n/a Employees 1,637 LTM as of 3/31/2014 S&P LT Rating Date n/a S&P Quality Ranking n/a Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 11.31 Dividend Yield #VALUE! 52 Week High (Jul 18, 2013) 28.32 5 Year Beta (0.51) 52 Week Low (Apr 28, 2014) 10.56 Float 52.0 Total Basic Common Shares 58.5 Float % 88.9% Market Capitalization 661.8 Short Int. as a % of S/O 26.3% Plus: Total Debt 15.6 Shares Sold Short 15.4 Plus: Preferred Stock n/a Days Cover Short 11.3 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (64.6) Last Week 4/23/14 2.5 Enterprise Value 612.7 Last Month 3/30/14 1.4 Relative Performance Last 3 Months 1/30/14 1.4 ANGI YTD (25.3%) 12/31/13 Last 6 Months 10/30/13 1.3 S&P 500 Index YTD 1.9% Last Year 4/30/13 1.4 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Revolving Credit 0.0 Unamortized Discount (0.1) Term Loans 15.0 Adjustments n/a Snr. Bonds and Notes n/a Total Debt 14.9 Revenue 90.0 155.8 245.6 266.1 329.1 407.8 Sub Bonds and Notes n/a EBITDA (43.5) (49.3) (24.0) (19.4) 1.5 37.0 Trust Preferred n/a Undrawn Revolver 15.0 Margin (%) (48.3%) (31.7%) (9.8%) (7.3%) 0.4% 9.1% Capital Leases n/a Undrawn Commercial Paper n/a EBIT (44.2) (50.3) (27.1) (22.9) (11.4) 20.5 Other n/a Undrawn Term Loans n/a Margin (%) (49.0%) (32.3%) (11.0%) (8.6%) (3.5%) 5.0% Total Principal Due 15.0 Other Available Credit n/a Net Income (49.0) (52.9) (33.0) (28.8) (13.8) 23.1 Total Undrawn Credit 15.0 Margin (%) (54.5%) (34.0%) (13.4%) (10.8%) (4.2%) 5.7% 998 999 1000 2000 1001 1002 Diluted EPS (1.60) (0.92) (0.57) (0.49) (0.25) 0.28 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Cash from Operations (33.1) (33.4) 8.9 14.0 25.8 61.8 TEV / Revenue 11.3x 4.7x 3.8x 2.7x 1.8x 1.5x Cash from Investing (4.3) (22.0) (21.9) (16.8) TEV / EBITDA NM NM NM NM NA 16.3x Cash from Finaning 116.8 9.4 5.1 3.9 TEV / EBIT NM NM NM NM NA 29.5x Change in Cash 79.4 (46.0) (7.8) 1.0 P / E NM NM NM NM NA 40.3x P / BV NM NM NM NM -25.3x 54.2x Balance Sheet Latest 1 Year Growth Total Revenue 52.5% 73.0% 57.7% 50.5% 34.0% 23.9% Total Assets 111.4 96.2 105.6 124.3 EBITDA NM NM NM NM NM 2430.9% Total Liabilities 65.6 90.9 124.1 144.6 EBIT NM NM NM NM NM NM Total Equity 45.8 5.3 (18.5) (20.3) Net Income NM NM NM NM NM NM EPS NM NM NM NM NM NM VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 52.5% 73.0% 57.7% 34.0% 23.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 0 50 100 150 200 250 300 350 400 450 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume ANGI Price
  • 26. Public Company Snapshot: Autodesk Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL AUTODESK, INC. (NASDAQGS:ADSK) COMPANY INFORMATION Autodesk, Inc. operates as a design software and services company worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software, a computer-aided design application for professional design, drafting, detailing, and visualization; and AutoCAD LT, a professional drafting and detailing software. The company’s Architecture, Engineering and Construction segment offers Autodesk Building Design Suites that give customers the ability to manage various phases of design and construction; Autodesk Revit products, which provide model-based design and documentation systems; Autodesk Infrastructure Design Suites; AutoCAD Civil 3D products that offer a surveying, design, analysis, and documentation solution; and AutoCAD Map 3D software, which provides direct access to data needed for infrastructure planning, design, and management. Its Manufacturing segment provides Autodesk Product Design Suites, a solution for digital prototyping; Autodesk Inventor that allows manufacturers to go beyond 3D design to digital prototyping; AutoCAD Mechanical software to accelerate the mechanical design process; and Autodesk Moldflow family of injection molding simulation software provides tools. The company’s Media and Entertainment segment offers animation products that provide tools for digital sculpting, modeling, animation, effects, rendering, and compositing; and creative finishing products, which offer editing, finishing, and visual effects design and color grading solutions. Autodesk, Inc. also sells consumer products for digital art, personal design and creativity, and home design in various digital storefronts and over the Internet. The company licenses or sells its products to customers in the architecture, engineering, and construction; manufacturing; and digital media, consumer, and entertainment industries directly, as well as through a network of resellers and distributors. Autodesk, Inc. was founded in 1982 and is headquartered in San Rafael, California. Stock Exchange NasdaqGS Latest Fiscal Year 1/31/2014 Primary Industry Application Software Next Earnings Date n/a Website http://www.autodesk.com Latest Fiscal Quarter 1/31/2014 S&P LT Rating BBB S&P STARS Ranking 3 Employees 7,600 LTM as of 1/31/2014 S&P LT Rating Date 12/5/2012 S&P Quality Ranking B- Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 48.02 Dividend Yield #VALUE! 52 Week High (Feb 27, 2014) 58.68 5 Year Beta 1.86 52 Week Low (Jun 24, 2013) 33.01 Float 211.8 Total Basic Common Shares 227.5 Float % 93.1% Market Capitalization 10,923.5 Short Int. as a % of S/O 1.4% Plus: Total Debt 746.4 Shares Sold Short 3.1 Plus: Preferred Stock n/a Days Cover Short 1.0 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (2,267.1) Last Week 4/23/14 2.3 Enterprise Value 9,402.8 Last Month 3/30/14 3.1 Relative Performance Last 3 Months 1/30/14 3.1 ADSK YTD (4.6%) 12/31/13 Last 6 Months 10/30/13 2.9 S&P 500 Index YTD 1.9% Last Year 4/30/13 3.0 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 1/31/12 1/31/13 1/31/14 1/31/14 2015E 2016E Revolving Credit 0.0 Unamortized Discount (4.5) Term Loans n/a Adjustments 0.9 Snr. Bonds and Notes 750.0 Total Debt 746.4 Revenue 2,215.6 2,312.2 2,273.9 2,273.9 2,360.0 2,488.5 Sub Bonds and Notes n/a EBITDA 469.8 477.6 426.5 426.5 437.5 558.9 Trust Preferred n/a Undrawn Revolver 400.0 Margin (%) 21.2% 20.7% 18.8% 18.8% 18.5% 22.5% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 354.3 349.8 297.6 297.6 357.1 461.0 Other n/a Undrawn Term Loans n/a Margin (%) 16.0% 15.1% 13.1% 13.1% 15.1% 18.5% Total Principal Due 750.0 Other Available Credit n/a Net Income 285.3 247.4 228.8 228.8 261.6 348.7 Total Undrawn Credit 400.0 Margin (%) 12.9% 10.7% 10.1% 10.1% 11.1% 14.0% 998 999 1000 2000 1001 1002 Diluted EPS 1.22 1.07 1.00 1.00 1.15 1.49 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 1/31/12 1/31/13 1/31/14 1/31/14 2015E 2016E Cash from Operations 573.5 559.1 563.5 563.5 505.7 680.2 TEV / Revenue 3.2x 3.3x 4.5x 4.5x 3.9x 3.7x Cash from Investing (370.3) (647.2) (194.0) (194.0) TEV / EBITDA 15.3x 15.9x 22.2x 22.2x 21.3x 16.6x Cash from Finaning (119.8) 541.4 (126.5) (126.5) TEV / EBIT 20.3x 21.5x 30.9x 30.9x 26.0x 20.2x Change in Cash 81.8 455.3 240.8 240.8 P / E 30.8x 36.7x 47.0x 47.0x 41.5x 31.9x P / BV 4.5x 4.3x 5.3x 5.3x 4.6x 4.3x Balance Sheet Latest 1 Year Growth Total Revenue 13.5% 4.4% (1.7%) (1.7%) 3.8% 5.4% Total Assets 3,227.8 4,308.4 4,595.0 4,595.0 EBITDA 21.2% 1.7% (10.7%) (10.7%) 2.6% 27.7% Total Liabilities 1,344.9 2,265.2 2,333.5 2,333.5 EBIT 25.5% (1.3%) (14.9%) (14.9%) 20.0% 29.1% Total Equity 1,882.9 2,043.2 2,261.5 2,261.5 Net Income 34.6% (13.3%) (7.5%) (7.5%) 14.3% 33.3% EPS 35.6% (12.3%) (6.5%) (6.5%) 14.8% 30.1% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 13.5% 4.4% (1.7%) 3.8% 5.4% (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2012 2013 2014 2015E 2016E YOY Growth Total Revenue 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 2,050 2,100 2,150 2,200 2,250 2,300 2,350 2,400 2,450 2,500 2,550 2012 2013 2014 2015E 2016E (in$millions) Valuation Revenue TEV / Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume ADSK Price
  • 27. Public Company Snapshot: Aveva Group Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL AVEVA GROUP PLC (LSE:AVV) COMPANY INFORMATION Aveva Group plc, through its subsidiaries, develops and markets engineering, design, and information management software and related services. The company provides engineering and design, and enterprise software solutions to customers in oil and gas, power, marine, chemical and pharmaceutical, mining and mineral processing, and pulp and paper industries. Its software solutions support project management, engineering and detailed design, procurement, materials management, construction, operations, maintenance, revamp, and decommissioning activities in process plant, power, and marine markets. The company also offers consultancy and training services. It sells its software by licensing rights to use the software directly to engineering contractors, plant owner operators, and shipbuilding companies through a network of sales offices worldwide. Aveva Group plc was founded in 1967 and is based in Cambridge, the United Kingdom. Stock Exchange LSE Latest Fiscal Year 3/31/2013 Primary Industry Application Software Next Earnings Date 5/27/2014 Website http://www.aveva.com Latest Fiscal Quarter 9/30/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 1,317 LTM as of 9/30/2013 S&P LT Rating Date n/a S&P Quality Ranking A- Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 35.60 Dividend Yield 1.2% 52 Week High (Sep 20, 2013) 45.06 5 Year Beta 0.76 52 Week Low (Apr 28, 2014) 31.97 Float 62.9 Total Basic Common Shares 63.8 Float % 98.6% Market Capitalization 2,270.9 Short Int. as a % of S/O #VALUE! Plus: Total Debt 0.0 Shares Sold Short n/a Plus: Preferred Stock n/a Days Cover Short n/a Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (155.1) Last Week 4/23/14 0.1 Enterprise Value 2,115.8 Last Month 3/30/14 0.1 Relative Performance Last 3 Months 1/30/14 0.1 AVV YTD (0.7%) 12/31/13 Last 6 Months 10/30/13 0.1 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.1 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 3/31/11 3/31/12 3/31/13 9/30/13 2014E 2015E Revolving Credit n/a Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes n/a Total Debt 0.0 Revenue 279.3 313.3 334.4 374.2 397.2 443.5 Sub Bonds and Notes n/a EBITDA 82.1 94.6 99.5 110.1 130.0 149.5 Trust Preferred n/a Undrawn Revolver n/a Margin (%) 29.4% 30.2% 29.7% 29.4% 32.7% 33.7% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 78.1 90.0 94.3 103.4 119.7 139.2 Other n/a Undrawn Term Loans n/a Margin (%) 28.0% 28.7% 28.2% 27.6% 30.1% 31.4% Total Principal Due n/a Other Available Credit n/a Net Income 55.4 63.9 69.1 76.1 94.4 110.6 Total Undrawn Credit n/a Margin (%) 19.8% 20.4% 20.7% 20.3% 23.8% 24.9% 998 999 1000 2000 1001 1002 Diluted EPS 0.81 0.94 1.01 1.13 1.44 1.71 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 3/31/11 3/31/12 3/31/13 9/30/13 2014E 2015E Cash from Operations 49.4 76.4 61.9 82.0 98.3 122.1 TEV / Revenue 6.1x 5.4x 6.6x 6.7x 5.2x 4.8x Cash from Investing (50.1) (23.4) (32.0) 109.9 TEV / EBITDA 18.9x 18.5x 22.3x 22.4x 16.0x 14.1x Cash from Finaning (19.5) (21.5) (23.4) (189.7) TEV / EBIT 19.9x 19.6x 23.6x 23.6x 17.3x 15.1x Change in Cash (20.8) 29.6 8.5 2.1 P / E 32.8x 32.0x 36.9x 38.9x 24.4x 20.8x P / BV 6.2x 5.6x 6.8x 7.0x 7.5x 5.9x Balance Sheet Latest 1 Year Growth Total Revenue 17.3% 12.6% 12.4% 10.9% 18.8% 11.7% Total Assets 458.6 495.9 538.5 380.3 EBITDA 8.4% 15.7% 10.7% 10.7% 30.7% 15.0% Total Liabilities 133.8 141.8 156.4 126.5 EBIT 8.4% 15.7% 10.3% 9.8% 27.0% 16.3% Total Equity 324.8 354.1 382.1 253.8 Net Income 3.1% 15.9% 13.9% 12.8% 36.5% 17.2% EPS 3.0% 16.2% 13.8% 13.6% 41.6% 19.0% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 17.3% 12.6% 12.4% 18.8% 11.7% 0.0% 5.0% 10.0% 15.0% 20.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 0 100 200 300 400 500 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 0.2 0.4 0.6 0.8 1.0 1.2 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume AVV Price
  • 28. Public Company Snapshot: Core Logic Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL CORELOGIC, INC. (NYSE:CLGX) COMPANY INFORMATION CoreLogic, Inc. provides property, financial and consumer information, analytics, and services in the United States, Australia, and New Zealand. The company operates through two segments, Technology and Processing Solutions and Data & Analytics. The Technology and Processing Solutions segment offers tax monitoring, flood zone certification and monitoring, credit services, mortgage loan administration and production services, lending solutions, and mortgage-related business process outsourcing. The Data and Analytics segment owns or licenses data assets, such as loan information, criminal and eviction records, employment verification, property characteristic information, and information on mortgage-backed securities. This segment provides analytical products for risk management, collateral assessment, loan quality reviews, and fraud assessment, as well as geospatial proprietary software and databases with geographic mapping and data; and consumer screening and risk management for the multifamily housing and under-banked credit services industries. CoreLogic, Inc. primarily offers its services to mortgage originators and servicers, financial institutions, investment banks, fixed-income investors, title insurance companies, commercial banks, government agencies and government-sponsored enterprises, property and casualty insurers, credit unions, real estate agents, and other real estate professionals. The company was formerly known as The First American Corporation and changed its name to CoreLogic, Inc. in June 2010. CoreLogic, Inc. was incorporated in 1894 and is headquartered in Irvine, California. Stock Exchange NYSE Latest Fiscal Year 12/31/2013 Primary Industry Data Processing and OutsoNext Earnings Date n/a Website http://www.corelogic.com Latest Fiscal Quarter 3/31/2014 S&P LT Rating BB S&P STARS Ranking n/a Employees 5,242 LTM as of 3/31/2014 S&P LT Rating Date 3/4/2010 S&P Quality Ranking B- Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 28.03 Dividend Yield #VALUE! 52 Week High (Dec 30, 2013) 36.19 5 Year Beta 1.64 52 Week Low (Jun 24, 2013) 21.40 Float 90.3 Total Basic Common Shares 91.8 Float % 98.5% Market Capitalization 2,574.3 Short Int. as a % of S/O 1.6% Plus: Total Debt 1,524.5 Shares Sold Short 1.4 Plus: Preferred Stock n/a Days Cover Short 1.6 Plus: Minority Interest 10.4 Average Trading Volume Less: Cash and ST Investments (145.2) Last Week 4/23/14 1.7 Enterprise Value 3,964.0 Last Month 3/30/14 1.1 Relative Performance Last 3 Months 1/30/14 1.0 CLGX YTD (21.1%) 12/31/13 Last 6 Months 10/30/13 0.8 S&P 500 Index YTD 1.9% Last Year 4/30/13 0.9 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Revolving Credit 100.0 Unamortized Discount n/a Term Loans 275.6 Adjustments 4.0 Snr. Bonds and Notes 462.7 Total Debt 843.9 Revenue 1,010.2 1,235.4 1,330.6 1,309.7 1,357.5 1,462.2 Sub Bonds and Notes n/a EBITDA 121.7 264.5 269.8 231.4 377.5 438.1 Trust Preferred n/a Undrawn Revolver 450.0 Margin (%) 12.0% 21.4% 20.3% 17.7% 27.8% 30.0% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 42.5 181.5 174.6 141.0 282.2 229.7 Other 1.6 Undrawn Term Loans n/a Margin (%) 4.2% 14.7% 13.1% 10.8% 20.8% 15.7% Total Principal Due 839.9 Other Available Credit n/a Net Income (74.6) 112.3 107.7 71.4 133.8 165.0 Total Undrawn Credit 450.0 Margin (%) (7.4%) 9.1% 8.1% 5.4% 9.9% 11.3% 998 999 1000 2000 1001 1002 Diluted EPS 0.19 0.87 1.34 1.00 1.49 1.96 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Cash from Operations 163.0 363.1 353.8 279.4 224.1 311.9 TEV / Revenue 1.3x 2.2x 2.4x 2.6x 2.9x 2.7x Cash from Investing (187.7) (147.3) (186.8) (839.0) TEV / EBITDA 8.1x 9.8x 10.1x 11.6x 10.5x 9.0x Cash from Finaning (149.9) (332.5) (179.9) 557.6 TEV / EBIT 13.3x 14.2x 13.2x 17.1x 14.0x 16.5x Change in Cash (159.7) (108.0) (17.2) (5.7) P / E 24.8x 28.3x 23.9x 22.4x 18.7x 14.3x P / BV 1.1x 2.3x 2.9x 2.6x 2.2x 1.9x Balance Sheet Latest 1 Year Growth Total Revenue (21.1%) 22.3% 7.7% (18.5%) 2.0% 7.7% Total Assets 3,118.7 3,030.3 3,003.4 3,720.0 EBITDA (36.2%) 117.3% 2.0% (33.1%) 39.9% 16.0% Total Liabilities 1,873.9 1,859.4 1,948.8 2,665.4 EBIT (63.1%) 327.6% (3.8%) (44.9%) 61.6% (18.6%) Total Equity 1,244.8 1,170.9 1,054.6 1,054.6 Net Income NM NM (4.1%) (44.8%) 24.2% 23.3% EPS (53.7%) 357.9% 54.0% (21.6%) 10.9% 32.1% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement (21.1%) 22.3% 7.7% 2.0% 7.7% (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 0 200 400 600 800 1,000 1,200 1,400 1,600 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume CLGX Price
  • 29. Public Company Snapshot: CoStar Group Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL COSTAR GROUP INC. (NASDAQGS:CSGP) COMPANY INFORMATION CoStar Group, Inc. provides information, analytics, and marketing services to the commercial real estate industry in the United States, the United Kingdom, and France. Its services include CoStar Property Professional service that offers inventory of office, industrial, retail, and multifamily properties and land; CoStar COMPS Professional, which provides coverage of comparable sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStarGo, an iPad application that integrates its property, tenant, and comparable sales information; and CoStar Advertising to market a space for lease or a property for sale. The company also offers PPR Portal, a delivery platform for research, forecasts, analytics, and granular data; PPR COMPASS, a commercial real estate risk management tool; Resolve Portfolio Maximizer, a real estate portfolio management software solution; Resolve Request, a business intelligence software solution; VP Corporate Edition and VP Retail Edition, which are real estate management software solutions. In addition, its services include LoopNet Premium Lister designed for commercial real estate professionals and other customers; LoopNet Premium Searcher designed for members searching for commercial real estate; LoopLink LoopLink, an online real estate marketing and database services suite; LandsofAmerica and LandAndFarm, which are online marketplaces for rural land for sale; BizBuySell and BizQuest that are online marketplaces for operating businesses for sale; FOCUS, a digital online service; and Observatoire Immobilier D’ Entreprise, which provides commercial property availability. The company serves commercial real estate brokers, as well as owners, landlords, financial institutions, retailers, vendors, appraisers, investment banks, governmental agencies, and other parties involved in commercial real estate. CoStar Group, Inc. was founded in 1987 and is headquartered in Washington, District of Columbia. Stock Exchange NasdaqGS Latest Fiscal Year 12/31/2013 Primary Industry Internet Software and ServicNext Earnings Date n/a Website http://www.costar.com Latest Fiscal Quarter 3/31/2014 S&P LT Rating n/a S&P STARS Ranking n/a Employees 2,046 LTM as of 3/31/2014 S&P LT Rating Date n/a S&P Quality Ranking B- Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 160.89 Dividend Yield #VALUE! 52 Week High (Mar 04, 2014) 218.17 5 Year Beta 1.00 52 Week Low (May 02, 2013) 106.10 Float 27.7 Total Basic Common Shares 28.8 Float % 96.4% Market Capitalization 4,628.5 Short Int. as a % of S/O 2.6% Plus: Total Debt 148.8 Shares Sold Short 0.8 Plus: Preferred Stock n/a Days Cover Short 3.0 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (223.4) Last Week 4/23/14 0.6 Enterprise Value 4,553.8 Last Month 3/30/14 0.4 Relative Performance Last 3 Months 1/30/14 0.3 CSGP YTD (12.8%) 12/31/13 Last 6 Months 10/30/13 0.2 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.2 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Revolving Credit 0.0 Unamortized Discount n/a Term Loans 153.1 Adjustments n/a Snr. Bonds and Notes n/a Total Debt 153.1 Revenue 251.7 349.9 440.9 456.0 566.4 633.6 Sub Bonds and Notes n/a EBITDA 48.7 65.2 94.0 116.2 173.5 215.3 Trust Preferred n/a Undrawn Revolver 50.0 Margin (%) 19.4% 18.6% 21.3% 25.5% 30.6% 34.0% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 36.0 32.6 54.2 76.6 154.2 181.7 Other n/a Undrawn Term Loans n/a Margin (%) 14.3% 9.3% 12.3% 16.8% 27.2% 28.7% Total Principal Due 153.1 Other Available Credit n/a Net Income 14.7 9.9 29.7 41.9 89.9 109.7 Total Undrawn Credit 50.0 Margin (%) 5.8% 2.8% 6.7% 9.2% 15.9% 17.3% 998 999 1000 2000 1001 1002 Diluted EPS 0.62 0.37 1.05 1.47 3.10 3.99 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Cash from Operations 27.8 86.1 108.3 91.0 71.2 156.4 TEV / Revenue 4.7x 8.1x 12.3x 12.0x 8.0x 7.2x Cash from Investing 58.4 (640.4) (19.0) (18.6) TEV / EBITDA 27.4x 41.0x 63.1x 56.2x 26.2x 21.2x Cash from Finaning 252.7 164.9 10.4 (16.7) TEV / EBIT 39.9x 68.6x 123.5x 97.6x 29.5x 25.1x Change in Cash 338.9 (389.3) 99.9 56.0 P / E 113.7x 229.5x 237.6x 177.8x 51.8x 40.3x P / BV 2.6x 3.1x 5.9x 5.8x 4.9x 4.7x Balance Sheet Latest 1 Year Growth Total Revenue 11.3% 39.0% 26.0% 18.3% 28.4% 11.9% Total Assets 771.0 1,165.1 1,257.0 1,244.8 EBITDA 20.3% 33.8% 44.2% 95.0% 84.5% 24.1% Total Liabilities 111.9 338.8 329.1 315.0 EBIT 33.8% (9.3%) 65.9% 278.7% 184.8% 17.8% Total Equity 659.2 826.3 927.9 929.8 Net Income 10.3% (32.3%) 199.9% 1665.0% 202.4% 22.0% EPS (3.1%) (40.3%) 183.8% 1578.1% 195.6% 28.6% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 11.3% 39.0% 26.0% 28.4% 11.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 0 100 200 300 400 500 600 700 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 0.2 0.4 0.6 0.8 1.0 1.2 150.00 160.00 170.00 180.00 190.00 200.00 210.00 220.00 4/13 Volume(inmillions) Price Volume CSGP Price
  • 30. Public Company Snapshot: Ellie Mae Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL ELLIE MAE, INC. (NYSE:ELLI) COMPANY INFORMATION Ellie Mae, Inc. provides on-demand software solutions and services for the residential mortgage industry in the United States. Its mortgage management solutions streamline and automate the process of originating and funding new mortgage loans, facilitating regulatory compliance, and reducing documentation errors. The company provides Encompass, a proprietary software product that combines loan origination, business management, and customer relationship management (CRM) software for mortgage originators into one end-to-end system. Mortgage originators use Encompass as a single tool for loan processing, marketing, and customer communication, as well as to interact electronically with lenders, investors, and service providers over the Ellie Mae Network. The company’s Encompass services comprise Encompass Docs Solution, which automatically prepares disclosure and closing documents necessary to fund a mortgage; Encompass CenterWise, a bundled offering of electronic document management and Websites used for customer relationship management; Total Quality Loan that offers a suite of fraud detection, valuation, validation, and risk analysis services; and Encompass Compliance Service, which automatically checks for compliance with federal, state, and local regulations in the origination process. Its Encompass services also include tax transcript services that offer income verification capability; services for ordering and managing appraisals; Encompass CRM, a suite of tools for managing contacts, leads, and marketing campaigns; Encompass Product and Pricing Service, which allows its users to compare loans offered by various lenders and investors to determine the product and price available to a particular borrower; and Encompass Flood Service that allows its users to order and transfer flood zone certifications. The company was founded in 1997 and is headquartered in Pleasanton, California. Stock Exchange NYSE Latest Fiscal Year 12/31/2013 Primary Industry Application Software Next Earnings Date 5/1/2014 Website http://www.elliemae.com Latest Fiscal Quarter 12/31/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 407 LTM as of 12/31/2013 S&P LT Rating Date n/a S&P Quality Ranking n/a Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 24.39 Dividend Yield #VALUE! 52 Week High (Oct 02, 2013) 33.24 5 Year Beta (0.05) 52 Week Low (May 23, 2013) 20.87 Float 24.2 Total Basic Common Shares 27.9 Float % 86.7% Market Capitalization 681.6 Short Int. as a % of S/O 15.0% Plus: Total Debt 1.0 Shares Sold Short 4.2 Plus: Preferred Stock n/a Days Cover Short 8.7 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (79.8) Last Week 4/23/14 0.5 Enterprise Value 602.9 Last Month 3/30/14 0.5 Relative Performance Last 3 Months 1/30/14 0.5 ELLI YTD (9.2%) 12/31/13 Last 6 Months 10/30/13 0.6 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.5 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Revolving Credit n/a Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes n/a Total Debt 1.0 Revenue 55.5 101.8 128.5 128.5 149.6 183.2 Sub Bonds and Notes n/a EBITDA 5.0 26.0 25.1 25.1 45.1 56.6 Trust Preferred n/a Undrawn Revolver n/a Margin (%) 9.0% 25.5% 19.5% 19.5% 30.1% 30.9% Capital Leases 1.0 Undrawn Commercial Paper n/a EBIT 2.1 21.2 18.9 18.9 18.7 23.4 Other n/a Undrawn Term Loans n/a Margin (%) 3.8% 20.8% 14.7% 14.7% 12.5% 12.8% Total Principal Due 1.0 Other Available Credit n/a Net Income 3.6 19.5 12.6 12.6 31.9 40.3 Total Undrawn Credit n/a Margin (%) 6.5% 19.1% 9.8% 9.8% 21.3% 22.0% 998 999 1000 2000 1001 1002 Diluted EPS 0.18 0.76 0.44 0.44 1.06 1.31 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Cash from Operations 6.4 27.8 29.2 29.2 31.8 40.1 TEV / Revenue 2.0x 6.8x 5.3x 5.3x 4.0x 3.3x Cash from Investing (21.3) (69.1) (52.3) (52.3) TEV / EBITDA 20.8x 28.0x 23.8x 23.8x 13.4x 10.6x Cash from Finaning 24.3 61.8 12.4 12.4 TEV / EBIT 41.3x 35.1x 30.1x 30.1x 32.3x 25.8x Change in Cash 9.4 20.4 (10.7) (10.7) P / E 76.1x 38.3x 50.8x 50.8x 23.0x 18.7x P / BV 1.6x 4.5x 3.7x 3.7x NA NA Balance Sheet Latest 1 Year Growth Total Revenue 28.4% 83.5% 26.2% 26.2% 16.4% 22.5% Total Assets 99.8 185.6 228.6 228.6 EBITDA 73.5% 422.6% (3.5%) (3.5%) 79.8% 25.6% Total Liabilities 20.9 18.8 21.7 21.7 EBIT 138.8% 904.7% (11.0%) (11.0%) (1.0%) 25.1% Total Equity 78.9 166.9 206.9 206.9 Net Income 365.9% 437.7% (35.4%) (35.4%) 153.5% 26.3% EPS 260.0% 322.2% (42.1%) (42.1%) 140.9% 23.1% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 28.4% 83.5% 26.2% 16.4% 22.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 0 50 100 150 200 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume ELLI Price
  • 31. Public Company Snapshot: HomeAway Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL HOMEAWAY, INC. (NASDAQGS:AWAY) COMPANY INFORMATION HomeAway, Inc., together with its subsidiaries, operates an online vacation rental property marketplace that enables property owners and managers to market properties for rental to vacation travelers. The company’s portfolio includes vacation rental Websites, such as HomeAway.com, VRBO.com, and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es and Toprural.com in Spain; AlugueTemporada.com.br in Brazil; Stayz.com.au and HomeAway.com.au in Australia; and Bookabach.co.nz in New Zealand. It also owns travelmob.com, an Asia Pacific short-term rental site, as well as operates BedandBreakfast.com, a site for finding bed and breakfast properties. In addition, the company offers HomeAway software for professionals at software.HomeAway.com, which provides software solutions to property managers and innkeepers. As of December 31, 2013, it operated its online marketplace through 50 Websites in 21 languages; and included approximately 890 paid listings of vacation rentals. The company was formerly known as CEH Holdings, Inc. and changed its name to HomeAway, Inc. in 2006. HomeAway, Inc. was founded in 2004 and is headquartered in Austin, Texas. Stock Exchange NasdaqGS Latest Fiscal Year 12/31/2013 Primary Industry Internet Retail Next Earnings Date n/a Website http://www.homeaway.com Latest Fiscal Quarter 3/31/2014 S&P LT Rating n/a S&P STARS Ranking n/a Employees 1,542 LTM as of 3/31/2014 S&P LT Rating Date n/a S&P Quality Ranking NR Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 32.62 Dividend Yield #VALUE! 52 Week High (Feb 20, 2014) 48.90 5 Year Beta 0.70 52 Week Low (Oct 02, 2013) 27.27 Float 87.8 Total Basic Common Shares 93.5 Float % 93.9% Market Capitalization 3,050.4 Short Int. as a % of S/O 6.9% Plus: Total Debt 303.0 Shares Sold Short 6.5 Plus: Preferred Stock n/a Days Cover Short 3.1 Plus: Minority Interest 10.3 Average Trading Volume Less: Cash and ST Investments (770.5) Last Week 4/23/14 3.7 Enterprise Value 2,593.3 Last Month 3/30/14 3.0 Relative Performance Last 3 Months 1/30/14 2.1 AWAY YTD (20.2%) 12/31/13 Last 6 Months 10/30/13 1.8 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 1.4 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Revolving Credit n/a Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes n/a Total Debt 0.0 Revenue 230.2 280.4 346.5 372.7 434.2 521.7 Sub Bonds and Notes n/a EBITDA 40.6 50.7 59.2 60.7 119.6 146.8 Trust Preferred n/a Undrawn Revolver n/a Margin (%) 17.6% 18.1% 17.1% 16.3% 27.6% 28.1% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 22.9 30.1 38.1 38.8 91.3 123.5 Other n/a Undrawn Term Loans n/a Margin (%) 10.0% 10.7% 11.0% 10.4% 21.0% 23.7% Total Principal Due n/a Other Available Credit n/a Net Income 6.2 15.0 17.7 16.8 60.9 80.9 Total Undrawn Credit n/a Margin (%) 2.7% 5.3% 5.1% 4.5% 14.0% 15.5% 998 999 1000 2000 1001 1002 Diluted EPS (0.31) 0.18 0.20 0.19 0.17 0.29 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Cash from Operations 77.0 95.4 104.4 106.9 127.1 172.3 TEV / Revenue #REFRESH #REFRESH #REFRESH #REFRESH 6.0x 5.0x Cash from Investing (73.5) (58.0) (223.4) (234.3) TEV / EBITDA #REFRESH #REFRESH #REFRESH #REFRESH 21.7x 17.7x Cash from Finaning 51.6 33.0 252.0 591.6 TEV / EBIT #REFRESH #REFRESH #REFRESH #REFRESH 28.4x 21.0x Change in Cash 52.5 71.3 135.1 469.4 P / E #REFRESH #REFRESH #REFRESH #REFRESH 189.4x 114.1x P / BV #REFRESH #REFRESH #REFRESH #REFRESH 3.3x 3.1x Balance Sheet Latest 1 Year Growth Total Revenue 37.1% 21.8% 23.6% 26.0% 25.3% 20.1% Total Assets 604.6 722.7 1,080.7 1,493.5 EBITDA 33.7% 24.8% 16.8% 7.6% 102.1% 22.7% Total Liabilities 163.6 205.6 246.7 583.0 EBIT 57.5% 31.3% 26.6% 12.7% 139.9% 35.2% Total Equity 441.0 517.0 833.9 910.5 Net Income (63.5%) 142.2% 18.2% (5.7%) 244.5% 32.7% EPS NM NM 11.1% (9.3%) (13.9%) 66.1% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 37.1% 21.8% 23.6% 25.3% 20.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 0 100 200 300 400 500 600 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume AWAY Price
  • 32. Public Company Snapshot: Move Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL MOVE, INC. (NASDAQGS:MOVE) COMPANY INFORMATION Move, Inc. operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America. The company operates realtor.com, a Website that offers property listings and other property information services to real estate franchises, brokers, and agents, as well as non-real estate related advertisers, such as personal banking and mortgage companies, insurance providers, home improvement retailers, moving service providers, and other consumer product and service companies. Its realtor.com Website provides listing advertisements to enhance, prioritize, and connect with consumers of for-sale property listings; non-listing advertisements to connect with consumer audience in the real estate search process; and various products and services to advertisers, including sponsorships, graphical display advertisements, text links, directories, Featured Community, and Featured CMA, as well as pricing models. The company also operates other Websites that provide single and multi-family rental listings, senior housing, and moving-related content and services to consumer audience, as well as provides various listing-related advertisement services for rental property owners and managers; Moving.com that offers quotes from moving companies and truck rental companies; Move.com, a new homes channel; NewHomeSource.com; and Doorsteps, which provides homebuyers with content, tools, and advice. In addition, it offers software-as-a-service customer relationship management products comprising Top Producer and TigerLead that provide productivity and lead management tools tailored to real estate agents. Further, Move, Inc. operates ListHub, an online real estate listing syndicator and provider of performance reporting solutions. The company was formerly known as Homestore, Inc. and changed its name to Move, Inc. in June 2006. Move, Inc. was founded in 1993 and is headquartered in San Jose, California. Stock Exchange NasdaqGS Latest Fiscal Year 12/31/2013 Primary Industry Internet Software and ServicNext Earnings Date 5/6/2014 Website http://www.move.com Latest Fiscal Quarter 12/31/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 913 LTM as of 12/31/2013 S&P LT Rating Date n/a S&P Quality Ranking C Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 10.69 Dividend Yield #VALUE! 52 Week High (Oct 21, 2013) 18.36 5 Year Beta 1.69 52 Week Low (May 16, 2013) 9.91 Float 34.1 Total Basic Common Shares 39.5 Float % 86.2% Market Capitalization 422.2 Short Int. as a % of S/O 7.6% Plus: Total Debt 82.5 Shares Sold Short 3.0 Plus: Preferred Stock n/a Days Cover Short 6.5 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (118.7) Last Week 4/23/14 0.8 Enterprise Value 385.9 Last Month 3/30/14 0.6 Relative Performance Last 3 Months 1/30/14 0.5 Move YTD (33.1%) 12/31/13 Last 6 Months 10/30/13 0.4 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.4 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Revolving Credit n/a Unamortized Discount (17.5) Term Loans n/a Adjustments n/a Snr. Bonds and Notes 100.0 Total Debt 82.5 Revenue 191.7 199.2 227.0 227.0 255.4 289.6 Sub Bonds and Notes n/a EBITDA 15.1 16.2 13.6 13.6 28.0 37.4 Trust Preferred n/a Undrawn Revolver n/a Margin (%) 7.9% 8.1% 6.0% 6.0% 11.0% 12.9% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 6.0 5.9 1.1 1.1 (2.3) 5.6 Other n/a Undrawn Term Loans n/a Margin (%) 3.1% 3.0% 0.5% 0.5% (0.9%) 1.9% Total Principal Due 100.0 Other Available Credit n/a Net Income 7.3 5.6 0.6 0.6 13.4 22.0 Total Undrawn Credit n/a Margin (%) 3.8% 2.8% 0.3% 0.3% 5.2% 7.6% 998 999 1000 2000 1001 1002 Diluted EPS 0.08 0.12 0.01 0.01 0.32 0.49 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Cash from Operations 17.6 29.1 32.7 32.7 30.6 36.7 TEV / Revenue 1.1x 1.4x 2.7x 2.7x 1.5x 1.3x Cash from Investing (7.3) (42.0) (18.2) (18.2) TEV / EBITDA 15.9x 14.6x 34.0x 34.0x 13.8x 10.3x Cash from Finaning (81.2) (47.6) 77.1 77.1 TEV / EBIT 44.9x 30.3x 123.1x 123.1x NA 69.0x Change in Cash (70.9) (60.5) 91.6 91.6 P / E NM 44.9x NM NM 33.9x 21.8x P / BV 3.1x 3.2x 6.0x 6.0x 5.6x 5.5x Balance Sheet Latest 1 Year Growth Total Revenue (2.9%) 3.9% 14.0% 14.0% 12.5% 13.4% Total Assets 164.9 136.9 236.8 236.8 EBITDA 32.2% 6.9% (16.0%) (16.0%) 106.0% 33.6% Total Liabilities 33.7 38.9 128.0 128.0 EBIT 103.0% (1.5%) (82.2%) (82.2%) NM NM Total Equity 131.2 98.0 108.8 108.8 Net Income NM (22.5%) (89.8%) (89.8%) 2225.8% 65.1% EPS NM 50.0% (91.7%) (91.7%) 3057.1% 55.2% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement (2.9%) 3.9% 14.0% 12.5% 13.4% (5.0%) 0.0% 5.0% 10.0% 15.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 0 50 100 150 200 250 300 350 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 1.0 2.0 3.0 4.0 5.0 6.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume Move Price
  • 33. Public Company Snapshot: RealPage Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL REALPAGE, INC. (NASDAQGS:RP) COMPANY INFORMATION RealPage, Inc. provides on demand software solutions for the rental housing industry in North America. The company offers property management solutions, including OneSite to serve the specific needs of conventional multi-family, affordable housing and urban development (HUD), affordable tax credit, rural housing, privatized military housing, student housing, and commercial sectors; and Propertyware for accounting, maintenance and work order management, marketing spend management, and portal services, as well as screening, renter’s insurance, and payment solutions. It also provides on premise property management solutions, which include Tenant Pro to serve the needs of small conventional properties; Spectra, a conventional apartment and commercial modular property management solution; and i-CAM, a property management software to automate and streamline rental activities for affordable housing. In addition, the company offers software-enabled value-added services, such as LeaseStar, a multichannel managed marketing solution that works to maximize a property’s leads to reduce costs per lease; YieldStar, a scientific yield management solution, which enables owners and managers to optimize rents; LeasingDesk, a risk mitigation solution to reduce delinquency, liability, and property damage risk; and Velocity that offers a range of billing and utility management services. Further, it provides OpsTechnology that offers spend management solutions, which enable owners and managers to control costs; shared cloud services, which are integrated with property management systems and software-enabled valued added services; and RealPage Senior Living, an integrated care management, community management, an marketing management platform, as well as provides consulting and implementation services; and training programs. The company sells its software and services directly through its sales force. RealPage, Inc. is headquartered in Carrollton, Texas. Stock Exchange NasdaqGS Latest Fiscal Year 12/31/2013 Primary Industry Application Software Next Earnings Date n/a Website http://www.realpage.com Latest Fiscal Quarter 12/31/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 3,337 LTM as of 12/31/2013 S&P LT Rating Date n/a S&P Quality Ranking n/a Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 17.75 Dividend Yield #VALUE! 52 Week High (Oct 22, 2013) 26.34 5 Year Beta 1.31 52 Week Low (Feb 25, 2014) 15.40 Float 51.8 Total Basic Common Shares 78.8 Float % 65.8% Market Capitalization 1,398.8 Short Int. as a % of S/O 6.3% Plus: Total Debt 1.4 Shares Sold Short 5.0 Plus: Preferred Stock n/a Days Cover Short 6.4 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (34.5) Last Week 4/23/14 0.4 Enterprise Value 1,365.8 Last Month 3/30/14 0.4 Relative Performance Last 3 Months 1/30/14 0.8 RP YTD (24.1%) 12/31/13 Last 6 Months 10/30/13 0.5 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.4 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Revolving Credit 0.0 Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes n/a Total Debt 1.4 Revenue 258.0 322.2 377.0 377.0 442.1 517.9 Sub Bonds and Notes n/a EBITDA 30.0 52.2 54.2 54.2 105.5 128.7 Trust Preferred n/a Undrawn Revolver 150.0 Margin (%) 11.6% 16.2% 14.4% 14.4% 23.9% 24.8% Capital Leases 1.4 Undrawn Commercial Paper n/a EBIT 2.7 20.9 23.5 23.5 89.4 116.0 Other n/a Undrawn Term Loans n/a Margin (%) 1.0% 6.5% 6.2% 6.2% 20.2% 22.4% Total Principal Due 1.4 Other Available Credit n/a Net Income (1.2) 5.2 20.7 20.7 52.8 68.7 Total Undrawn Credit 150.0 Margin (%) (0.5%) 1.6% 5.5% 5.5% 11.9% 13.3% 998 999 1000 2000 1001 1002 Diluted EPS (0.02) 0.07 0.27 0.27 0.67 0.85 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Cash from Operations 49.2 58.4 69.2 69.2 90.0 110.9 TEV / Revenue #REFRESH #REFRESH #REFRESH #REFRESH 3.1x 2.6x Cash from Investing (107.7) (32.8) (62.1) (62.1) TEV / EBITDA #REFRESH #REFRESH #REFRESH #REFRESH 12.9x 10.6x Cash from Finaning (8.2) (43.1) (6.3) (6.3) TEV / EBIT #REFRESH #REFRESH #REFRESH #REFRESH 15.3x 11.8x Change in Cash (66.7) (17.5) 0.7 0.7 P / E #REFRESH #REFRESH #REFRESH #REFRESH 26.4x 20.9x P / BV #REFRESH #REFRESH #REFRESH #REFRESH 3.8x 3.4x Balance Sheet Latest 1 Year Growth Total Revenue 37.0% 24.9% 17.0% 17.0% 17.2% 17.1% Total Assets 400.1 402.2 503.2 503.2 EBITDA 15.8% 73.6% 4.0% 4.0% 94.4% 22.0% Total Liabilities 177.2 147.1 188.7 188.7 EBIT (57.1%) 674.1% 12.5% 12.5% 280.3% 29.8% Total Equity 222.9 255.1 314.5 314.5 Net Income NM NM 299.2% 299.2% 155.1% 30.1% EPS NM NM 285.7% 285.7% 148.6% 26.5% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 37.0% 24.9% 17.0% 17.2% 17.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 0 100 200 300 400 500 600 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume RP Price
  • 34. Public Company Snapshot: Textura Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL TEXTURA CORPORATION (NYSE:TXTR) COMPANY INFORMATION Textura Corporation provides on-demand business collaboration software solutions to the commercial construction industry in the United States and Canada. The company’s solutions are focused on facilitating collaboration between owners/developers, general contractors, and subcontractors. Its solutions include Construction Payment Management that facilitates the exchange of invoice documents, supporting documentation, and lien waivers for secure electronic payment; and GradeBeam, which enables general contractors to identify and invite suitable subcontractors to bid on project work. The company also offers project management solutions comprising Submittal Exchange, Submittal Exchange for Design, and Submittal Exchange for Subcontractors, which facilitates the exchange of critical project documents, as well as facilitating communication and ensuring proper audit trails and archival. In addition, it provides other solutions consisting of Pre-Qualification Management that collects, reviews, and evaluates prequalification information, including financial and safety information; Greengrade that simplifies and streamlines the collection and submission of information necessary to obtain LEED certification; PlanSwift, a take-off and estimating solution used in preparing construction bids; Contractor Default Claims Management, which supports the process of documenting a subcontractor default insurance claim; and BidOrganizer that provides a central, online location to prioritize, track, and schedule various bid invitations. The company markets and sells its solutions to the owners/developers, general contractors, subcontractors, architects, material suppliers, and others. It has strategic relationships with CMiC, Viewpoint Construction Software, Sage North America, and Computer Guidance Corporation. The company was founded in 2004 and is headquartered in Deerfield, Illinois. Stock Exchange NYSE Latest Fiscal Year 9/30/2013 Primary Industry Internet Software and ServicNext Earnings Date 5/7/2014 Website http://www.texturacorp.com Latest Fiscal Quarter 12/31/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 385 LTM as of 12/31/2013 S&P LT Rating Date n/a S&P Quality Ranking n/a Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 17.81 Dividend Yield #VALUE! 52 Week High (Oct 01, 2013) 47.25 5 Year Beta n/a 52 Week Low (Apr 30, 2014) 17.26 Float 23.1 Total Basic Common Shares 24.8 Float % 93.3% Market Capitalization 441.8 Short Int. as a % of S/O 28.3% Plus: Total Debt 1.5 Shares Sold Short 7.0 Plus: Preferred Stock n/a Days Cover Short 13.4 Plus: Minority Interest 0.4 Average Trading Volume Less: Cash and ST Investments (77.1) Last Week 4/23/14 0.5 Enterprise Value 366.5 Last Month 3/30/14 0.5 Relative Performance Last 3 Months 1/30/14 0.5 TXTR YTD (40.5%) 12/31/13 Last 6 Months 10/30/13 0.6 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.4 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 9/30/11 9/30/12 9/30/13 12/31/13 2014E 2015E Revolving Credit n/a Unamortized Discount n/a Term Loans 10.2 Adjustments n/a Snr. Bonds and Notes 0.2 Total Debt 11.8 Revenue 10.5 21.7 35.5 40.8 59.5 92.1 Sub Bonds and Notes 0.0 EBITDA (10.8) (14.8) (30.6) (33.2) (11.1) 6.5 Trust Preferred n/a Undrawn Revolver n/a Margin (%) (102.3%) (68.0%) (86.0%) (81.5%) (18.6%) 7.0% Capital Leases 1.4 Undrawn Commercial Paper n/a EBIT (11.7) (16.8) (35.1) (38.5) (14.9) 2.5 Other 0.0 Undrawn Term Loans n/a Margin (%) (111.0%) (77.4%) (98.7%) (94.4%) (25.1%) 2.7% Total Principal Due 11.8 Other Available Credit n/a Net Income (18.9) (15.9) (36.9) (38.5) (14.7) 2.3 Total Undrawn Credit n/a Margin (%) (180.0%) (73.5%) (103.8%) (94.4%) (24.7%) 2.5% 998 999 1000 2000 1001 1002 Diluted EPS (4.18) (2.31) (3.58) (2.83) (0.59) 0.08 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 9/30/11 9/30/12 9/30/13 12/31/13 2014E 2015E Cash from Operations (1.9) (3.4) (11.8) (15.9) (9.1) 16.2 TEV / Revenue #REFRESH #REFRESH #REFRESH #REFRESH 6.2x 4.0x Cash from Investing (0.4) (12.8) (3.3) (38.5) TEV / EBITDA #REFRESH #REFRESH #REFRESH #REFRESH NA 56.6x Cash from Finaning 5.2 14.5 138.7 129.7 TEV / EBIT #REFRESH #REFRESH #REFRESH #REFRESH NA 145.0x Change in Cash 2.9 (1.8) 123.6 75.2 P / E #REFRESH #REFRESH #REFRESH #REFRESH NA 216.7x P / BV #REFRESH #REFRESH #REFRESH #REFRESH 3.6x 4.6x Balance Sheet Latest 1 Year Growth Total Revenue 74.7% 106.2% 63.9% 70.1% 67.4% 54.8% Total Assets 27.3 51.1 188.0 177.9 EBITDA NM NM NM NM NM NM Total Liabilities 24.0 49.4 46.2 39.1 EBIT NM NM NM NM NM NM Total Equity 3.3 1.7 141.8 138.8 Net Income NM NM NM NM NM NM EPS NM NM NM NM NM NM VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 74.7% 106.2% 63.9% 67.4% 54.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 0 20 40 60 80 100 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 1.0 2.0 3.0 4.0 5.0 6.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume TXTR Price
  • 35. Public Company Snapshot: Trulia Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL TRULIA, INC. (NYSE:TRLA) COMPANY INFORMATION Trulia, Inc. provides tools to research homes and neighborhoods for consumers through Web and mobile applications. The company, through its tools, also enables real estate professionals to market their listings. It provides subscription and free products for real estate professionals, as well as sells display media advertising. In addition, the company offers information on schools, crime, neighborhood amenities, home values, and other communities. It serves buyers, sellers, and renters. The company was formerly known Realwide, Inc. and changed its name to Trulia, Inc. in September 2005. Trulia, Inc. was founded in 2005 and is headquartered in San Francisco, California. Stock Exchange NYSE Latest Fiscal Year 12/31/2013 Primary Industry Internet Software and ServicNext Earnings Date n/a Website http://www.trulia.com Latest Fiscal Quarter 3/31/2014 S&P LT Rating n/a S&P STARS Ranking n/a Employees 1,036 LTM as of 3/31/2014 S&P LT Rating Date n/a S&P Quality Ranking n/a Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 34.00 Dividend Yield #VALUE! 52 Week High (Sep 19, 2013) 52.71 5 Year Beta n/a 52 Week Low (Dec 12, 2013) 26.35 Float 33.8 Total Basic Common Shares 36.9 Float % 91.6% Market Capitalization 1,255.6 Short Int. as a % of S/O 35.4% Plus: Total Debt 230.1 Shares Sold Short 13.1 Plus: Preferred Stock n/a Days Cover Short n/a Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (220.8) Last Week 4/23/14 2.0 Enterprise Value 1,264.9 Last Month 3/30/14 1.9 Relative Performance Last 3 Months 1/30/14 1.9 TRLA YTD (3.6%) 12/31/13 Last 6 Months 10/30/13 1.7 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 1.3 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Revolving Credit n/a Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes 230.0 Total Debt 230.1 Revenue 38.5 68.1 143.7 174.2 252.1 326.8 Sub Bonds and Notes n/a EBITDA (4.0) (7.0) (10.2) (17.1) 21.0 47.8 Trust Preferred n/a Undrawn Revolver n/a Margin (%) (10.3%) (10.3%) (7.1%) (9.8%) 8.3% 14.6% Capital Leases 0.1 Undrawn Commercial Paper n/a EBIT (5.8) (9.5) (18.1) (29.9) (51.8) (32.2) Other n/a Undrawn Term Loans n/a Margin (%) (15.0%) (14.0%) (12.6%) (17.2%) (20.5%) (9.8%) Total Principal Due 230.1 Other Available Credit n/a Net Income (6.2) (10.9) (17.8) (30.9) (12.1) 12.9 Total Undrawn Credit n/a Margin (%) (16.0%) (16.0%) (12.4%) (17.8%) (4.8%) 3.9% 998 999 1000 2000 1001 1002 Diluted EPS (0.92) (0.87) (0.54) (0.88) (0.35) 0.22 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 3/31/14 2014E 2015E Cash from Operations 1.1 4.2 (1.4) 5.9 19.8 43.8 TEV / Revenue #REFRESH #REFRESH #REFRESH #REFRESH 5.0x 3.9x Cash from Investing (6.6) (2.0) (175.1) (186.7) TEV / EBITDA #REFRESH #REFRESH #REFRESH #REFRESH 61.6x 25.6x Cash from Finaning 8.2 90.8 302.1 187.2 TEV / EBIT #REFRESH #REFRESH #REFRESH #REFRESH NA NA Change in Cash 2.6 93.0 125.6 6.4 P / E #REFRESH #REFRESH #REFRESH #REFRESH NA 136.2x P / BV #REFRESH #REFRESH #REFRESH #REFRESH 4.0x 4.2x Balance Sheet Latest 1 Year Growth Total Revenue 94.7% 76.8% 111.1% 118.0% 75.4% 29.7% Total Assets 24.2 119.0 655.4 651.0 EBITDA NM NM NM NM NM 128.0% Total Liabilities 21.2 32.4 274.3 272.0 EBIT NM NM NM NM NM NM Total Equity 3.0 86.5 381.1 379.0 Net Income NM NM NM NM NM NM EPS NM NM NM NM NM NM VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 94.7% 76.8% 111.1% 75.4% 29.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 0 50 100 150 200 250 300 350 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume TRLA Price
  • 36. Public Company Snapshot: Zillow Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL ZILLOW, INC. (NASDAQGS:Z) COMPANY INFORMATION Zillow, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company owns and operates Zillow.com. It also provides various advertising products and services, including Premier Agent program, which offers a suite of marketing and business technology solutions for real estate agents; Zillow Mortgage Marketplace, where borrowers connect with lenders to find loans and get mortgage rates; Zillow Rentals, a marketplace and suite of tools for rental professionals, Postlets, Diverse Solutions, Agentfolio, Mortech, HotPads, and StreetEasy; and graphical mobile and Web advertising services on its home page and on individual Web pages. In addition, the company offers information products and services that enable consumers to make decisions about homes comprising home value and rental price estimates; Zillow Digs, a home improvement marketplace for home shoppers and homeowners to find visual inspiration and local cost estimates; and a rich set of home-related information for consumers and real estate professionals, as well as services for sale and rental listings. Further, it provides consumers with ratings and contact information for the listing agent and local buyer’s agents alongside home profiles and listings for homes to assist for evaluating and selecting the real estate agent; and home-related advice and discussions through Zillow Advice section of its Zillow.com Website that captures questions and discussion topics from consumers and real estate, rental, mortgage, and home improvement professionals, as well as operates mobile real estate applications. The company serves advertisers primarily in the real estate industry, such as real estate brokerages, home builders, lenders, and home services providers; and advertising customers comprising telecommunications, automotive, insurance, and consumer products companies. Zillow, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington. Stock Exchange NasdaqGS Latest Fiscal Year 12/31/2013 Primary Industry Internet Software and ServicNext Earnings Date 5/7/2014 Website http://www.zillow.com Latest Fiscal Quarter 12/31/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 817 LTM as of 12/31/2013 S&P LT Rating Date n/a S&P Quality Ranking n/a Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 108.70 Dividend Yield #VALUE! 52 Week High (Apr 22, 2014) 108.12 5 Year Beta 1.16 52 Week Low (Jun 06, 2013) 48.54 Float 24.7 Total Basic Common Shares 39.2 Float % 63.1% Market Capitalization 4,258.1 Short Int. as a % of S/O 22.3% Plus: Total Debt 0.0 Shares Sold Short 8.7 Plus: Preferred Stock n/a Days Cover Short 4.7 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (295.3) Last Week 4/23/14 2.6 Enterprise Value 3,962.8 Last Month 3/30/14 2.3 Relative Performance Last 3 Months 1/30/14 1.9 Z YTD 33.0% 12/31/13 Last 6 Months 10/30/13 1.5 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 1.3 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Revolving Credit n/a Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes n/a Total Debt 0.0 Revenue 66.1 116.9 197.5 197.5 293.7 397.7 Sub Bonds and Notes n/a EBITDA 5.8 12.4 (5.5) (5.5) 41.8 79.8 Trust Preferred n/a Undrawn Revolver n/a Margin (%) 8.8% 10.6% (2.8%) (2.8%) 14.2% 20.1% Capital Leases n/a Undrawn Commercial Paper n/a EBIT 2.7 7.0 (16.5) (16.5) (26.5) 0.7 Other n/a Undrawn Term Loans n/a Margin (%) 4.1% 6.0% (8.4%) (8.4%) (9.0%) 0.2% Total Principal Due n/a Other Available Credit n/a Net Income 1.1 5.9 (12.5) (12.5) 3.3 35.8 Total Undrawn Credit n/a Margin (%) 1.7% 5.1% (6.3%) (6.3%) 1.1% 9.0% 998 999 1000 2000 1001 1002 Diluted EPS n/a 0.18 (0.35) (0.35) 0.06 0.67 VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Cash from Operations 14.8 35.6 31.3 31.3 49.5 91.5 TEV / Revenue #REFRESH #REFRESH #REFRESH #REFRESH 13.5x 10.0x Cash from Investing (58.4) (97.7) (251.8) (251.8) TEV / EBITDA #REFRESH #REFRESH #REFRESH #REFRESH 94.8x 49.7x Cash from Finaning 79.2 164.2 272.2 272.2 TEV / EBIT #REFRESH #REFRESH #REFRESH #REFRESH NA NA Change in Cash 35.6 102.1 51.7 51.7 P / E #REFRESH #REFRESH #REFRESH #REFRESH NA 161.6x P / BV #REFRESH #REFRESH #REFRESH #REFRESH 8.3x 7.9x Balance Sheet Latest 1 Year Growth Total Revenue 116.8% 76.9% 69.1% 69.1% 48.7% 35.4% Total Assets 116.7 307.5 608.1 608.1 EBITDA NM 112.4% NM NM NM 90.8% Total Liabilities 15.5 27.2 40.3 40.3 EBIT NM 155.9% NM NM NM NM Total Equity 101.2 280.3 567.8 567.8 Net Income NM 438.9% NM NM NM 999.2% EPS NM NM NM NM NM 1012.9% VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement 116.8% 76.9% 69.1% 48.7% 35.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 0 50 100 150 200 250 300 350 400 450 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume Z Price
  • 37. Public Company Snapshot: ZipRealty Copyright © 2014 by SOFTWARE EQUITY GROUP, LLC, All Rights Reserved CONFIDENTIAL ZIPREALTY INC. (NASDAQGM:ZIPR) COMPANY INFORMATION ZipRealty, Inc. operates as an online technology-enabled real estate brokerage company in the United States. The company offers an online marketing and sales system to its owned and operated brokerages, and its Powered by Zip network of third-party brokerages that enables them to offer brokerage services to buyers and sellers in residential real estate transactions. It operates ziprealty.com, a brokerage Website that provides consumers with data on homes currently for sale; ZAP, a SaaS-based Zap technology platform for managing the client interaction, lead incubation, and customer service; and mobile applications that offer features of its Website and optimize them for various platforms and devices. ZipRealty, Inc. serves consumers, real estate professionals, and other real estate brokerages and their affiliated agents. The company conducts its owned-and-operated brokerages in 19 markets; and Powered by Zip business that serves local brokerages in 20 markets in the United States. ZipRealty, Inc. was founded in 1999 and is based in Emeryville, California. Stock Exchange NasdaqGM Latest Fiscal Year 12/31/2013 Primary Industry Real Estate Services Next Earnings Date 5/5/2014 Website http://www.ziprealty.com Latest Fiscal Quarter 12/31/2013 S&P LT Rating n/a S&P STARS Ranking n/a Employees 160 LTM as of 12/31/2013 S&P LT Rating Date n/a S&P Quality Ranking C Current Investors Pending Investors VALUATION PRICE/VOLUME GRAPH (in millions, except per share data) Valuation Market Data Current Price (Apr 30 2014) 3.32 Dividend Yield #VALUE! 52 Week High (Jan 17, 2014) 7.07 5 Year Beta 1.93 52 Week Low (May 28, 2013) 2.67 Float 10.4 Total Basic Common Shares 21.7 Float % 47.9% Market Capitalization 72.0 Short Int. as a % of S/O 0.6% Plus: Total Debt 0.0 Shares Sold Short 0.1 Plus: Preferred Stock n/a Days Cover Short 2.7 Plus: Minority Interest n/a Average Trading Volume Less: Cash and ST Investments (14.3) Last Week 4/23/14 0.0 Enterprise Value 57.7 Last Month 3/30/14 0.0 Relative Performance Last 3 Months 1/30/14 0.1 ZIPR YTD (40.7%) 12/31/13 Last 6 Months 10/30/13 0.1 (Invalid Identifier) YTD #VALUE! Last Year 4/30/13 0.1 CAPITAL STRUCTURE FINANCIAL SUMMARY Capital Structure Fiscal Year Ending, LTM Fiscal Year Ending, Commercial Paper n/a Unamortized Premium n/a 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Revolving Credit 0.0 Unamortized Discount n/a Term Loans n/a Adjustments n/a Snr. Bonds and Notes n/a Total Debt 0.0 Revenue 85.1 73.8 75.9 75.9 75.9 82.0 Sub Bonds and Notes n/a EBITDA (5.7) (1.4) (2.7) (2.7) (0.9) 2.7 Trust Preferred n/a Undrawn Revolver n/a Margin (%) (6.7%) (1.9%) (3.6%) (3.6%) (1.1%) 3.3% Capital Leases n/a Undrawn Commercial Paper n/a EBIT (6.6) (2.1) (3.3) (3.3) (4.1) (0.6) Other n/a Undrawn Term Loans n/a Margin (%) (7.7%) (2.8%) (4.4%) (4.4%) (5.4%) (0.7%) Total Principal Due 0.0 Other Available Credit n/a Net Income (9.7) (9.7) (5.4) (5.4) (4.4) 0.0 Total Undrawn Credit n/a Margin (%) (11.4%) (13.1%) (7.2%) (7.2%) (5.9%) 0.0% 998 999 1000 2000 1001 1002 Diluted EPS (0.47) (0.47) (0.26) (0.26) (0.18) (0.03) VALUATION MULTIPLES Fiscal Year Ending, LTM Fiscal Year Ending, 12/31/11 12/31/12 12/31/13 12/31/13 2014E 2015E Cash from Operations (8.3) (7.3) 1.0 1.0 0.2 3.7 TEV / Revenue #REFRESH #REFRESH #REFRESH #REFRESH 0.8x 0.7x Cash from Investing 7.6 7.5 (2.4) (2.4) TEV / EBITDA #REFRESH #REFRESH #REFRESH #REFRESH NA 21.4x Cash from Finaning 0.0 0.1 2.8 2.8 TEV / EBIT #REFRESH #REFRESH #REFRESH #REFRESH NA NA Change in Cash (0.8) 0.3 1.4 1.4 P / E #REFRESH #REFRESH #REFRESH #REFRESH NA NA P / BV #REFRESH #REFRESH #REFRESH #REFRESH 5.8x 5.7x Balance Sheet Latest 1 Year Growth Total Revenue (28.3%) (13.3%) 2.8% 2.8% 0.1% 8.0% Total Assets 28.3 19.4 20.2 20.2 EBITDA NM NM NM NM NM NM Total Liabilities 6.5 5.9 7.9 7.9 EBIT NM NM NM NM NM NM Total Equity 21.8 13.5 12.3 12.3 Net Income NM NM NM NM NM NM EPS NM NM NM NM NM NM VALUATION MULTIPLES CHART FINANCIAL SUMMARY CHART BlackRock, Inc., Soroban Capital Partners LLC NA Income Statement Cash Flow Statement (28.3%) (13.3%) 2.8% 0.1% 8.0% (35.0%) (30.0%) (25.0%) (20.0%) (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% 2011 2012 2013 2014E 2015E YOY Growth Total Revenue 0.0x 0.1x 0.2x 0.3x 0.4x 0.5x 0.6x 0.7x 0.8x 68 70 72 74 76 78 80 82 84 86 2011 2012 2013 2014E 2015E (in$millions) Valuation Revenue TEV / Revenue 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 4/13 Volume(inmillions) Price Volume ZIPR Price