09 05 05 Web 2.0 Weekly
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09 05 05 Web 2.0 Weekly

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The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at ...

The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 million, respectively. On a much more positive note, we saw the announcement from Disney taking a significant position in Hulu - a strategic move in Web-TV distribution. This brings together three of the biggest broadcast and cable network owners under the same banner. Additionally, we would like to highlight that from a sector perspective, video saw the most amount of capital raised at $75.4 million (Figure 4) over a 3-month period. Is this an indication of things to come? Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week.

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09 05 05 Web 2.0 Weekly 09 05 05 Web 2.0 Weekly Document Transcript

  • SOFTWARE & SERVICES 5 MAY 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 VIDEO SECTOR LEADS ACTIVITY IN APRIL – DISNEY INVESTS IN HULU ACT I VIT Y SL O W ED I N AP RIL – SL OW E ST MO NT H I N 2 009 The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 million, respectively. On a much more positive note, we saw the announcement from Disney taking a significant position in Hulu - a strategic move in W eb-TV distribution. This brings together three of the biggest broadcast and cable network owners under the same banner. Additionally, we would like to highlight that from a sector perspective, video saw the most amount of capital raised at $75.4 million (Figure 4) over a 3-month period. Is this an indication of things to come? Financing by Month 800.0 40 737.1 700.0 35 653.9 600.0 30 500.0 25 461.7 (US$mm) (#) 400.0 20 361.3 335.0 308.3 300.0 15 244.0 225.8 193.0 192.6 185.5 200.0 10 159.5 144.5 138.1 132.3 129.0 127.4 114.6 111.0 101.1 87.3 85.5 100.0 5 73.6 71.5 69.0 57.7 56.3 47.5 45.6 43.4 42.0 40.5 38.8 38.8 38.6 30.0 24.4 15.4 21.4 23.9 13.2 18.8 16.5 12.5 8.0 0.0 0 05 6 06 7 7 8 08 5 05 06 6 6 06 07 7 7 07 08 8 8 08 09 9 -0 -0 -0 l -0 -0 l -0 -0 l -0 -0 -0 l -0 -0 v- v- v- p- n- p- n- p- n- p- n- ay ay ov ay ar ar ar ar Ju Ju Ju Ju No No No Se Ja Se Ja Se Ja Se Ja M M M M N M M M Capital Market Activity: The month of April closed with 21 companies raising money, with GOOM Radio and Collective Media leading the list with $16 million and $20 million, respectively. The Rubicon Project (ad network sector) and Marin Software (Ad Networks sector) followed GOOM Radio, raising $13 million. Price Performance: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week.Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week. This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. w w w . r e s e a rc h c a p i t a l . c o m T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
  • Page 2 THE WEB 2.0 UNIVERSE Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market cap of ~$45 billion (Figure 1). The average market cap for the group is ~$493 million (but a median of only $47.8 million), with average trailing revenue of $148.0 million (median $54.4 million). The companies are also generally profitable, with a median EBITDA margin of 15.9%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.4x) and 9.7x trailing EBITDA (median 8.5x). Fifteen of the companies have more than 500 employees. C o m p a r a bl e C o m pa n y A na l ys i s > W e b 2 .0 T r a di ng C u rr e nt U S D M a rk e t U S D L T M To ta l US D L T M T ota l E B I TD A T E V /L T M T E V /L T M C om pa n y N a m e L TM a s o f T ic k e r E x c h a ng e C u rr e nc y HQ P r ic e C a p ($ m ) R e v ($ m ) E B I TDA ($ m ) % R e v e nu e E B IT DA E m p l oy e e s A c c e le riz e N ew Me dia , Inc . 1 2/31 /200 8 A C LZ OT C BB USD U nited S ta tes 0 . 44 1 2. 0 3. 8 (4 . 8) NM 4. 3 x - 11 A c t oz S of t C o. , L td. 1 2/31 /200 8 A 0 527 90 KOS E KR W S o uth K or ea 14, 150 9 5. 0 73. 6 1 4. 7 20 . 0% 0. 9 x 4. 5x NA A Q Inte ra c t iv e , Inc . 1 2/31 /200 8 38 38 TSE JPY J ap an 46 , 950 . 00 2 5. 7 60. 7 4 .9 8 . 0% - - NA A s s o c ia ted Med ia H oldings Inc . 6 /30 /200 7 A S MH OT C PK USD U nited S ta tes 0 0 .1 0. 1 (2 . 3) NM 8. 1 x - 3 B ig st ring C o rp . 1 2/31 /200 8 BS GC OT C BB USD U nited S ta tes 0 . 02 1 .1 0. 1 (2 . 1) NM 29. 8 x - 4 B e ta w a v e C o rpo ra tion 1 2/31 /200 8 B W AV OT C BB USD U nited S ta tes 0 3 .2 7. 7 (1 1. 8) NM - - 45 B e yo nd C o mm er c e, In c . 1 2/31 /200 8 BYOC OT C BB USD U nited S ta tes 1 . 33 5 5. 0 1. 8 (8 . 6) NM 31. 9 x - 43 B r ight T hings p lc 9 /30 /200 8 A IM : B G T A IM GBP U nited K ing dom 0 6 .6 0. 2 (1 . 7) NM 26. 6 x - 9 B r oa dW eb A s ia Inc . 9 /30 /200 8 BW BA OT C PK USD U nited S ta tes 0 . 30 2 5. 3 0. 0 (4 . 6) NM - - 46 C D C C or p. 9 /30 /200 8 C HIN . A N a s da qG S USD H ong K on g 1 14 1. 2 428 . 1 1 8. 8 4 . 4% 0. 5 x 1 0. 5 x 3 , 12 5 C ha ngy ou. c om L imite d 1 2/31 /200 8 C YOU N a s da qG S USD C hina 32 .62 1, 6 71. 8 201 . 8 11 8. 0 58 . 5% 8. 3 x 1 4. 2 x 628 C hina G a te wa y C or po ra tio n 9 /30 /200 8 CGWY OT C BB USD U nited S ta tes 0 0 .0 6. 7 (6 . 6) -9 8.9% 0. 0 x - 37 C hine s e G a m er In ter na tion a l 1 2/31 /200 8 G T S M : 308 3 GTSM TW D T a iw a n 224 .50 57 7. 6 47. 2 2 3. 8 50 . 5% 11. 1 x 2 2. 0 x NA C or ner W or ld C or por a tion 1 /31 /200 9 C WR L OT C BB USD U nited S ta tes 0 6 .4 1. 3 NM NM 6. 0 x - NA C y ber plex Inc . 1 2/31 /200 8 T S X :C X TSX C AD C a na da 1 . 72 7 8. 2 48. 6 4 .1 8 . 4% 1. 6 x 1 8. 7 x NA D A D A S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 7 14 8. 7 226 . 2 3 6. 1 16 . 0% 0. 9 x 5. 3x 574 D X N Ho ld ings B hd 1 1/30 /200 8 DXN KL S E MY R Ma la ys ia 0 . 40 2 6. 0 78. 6 1 0. 5 13 . 3% 0. 6 x 4. 4x NA D ibz Inte rn a tion a l, Inc . NA D IB Z OT C PK USD U nited S ta tes 0 0 .0 NA NM NM - - NA D igita lP o st Inte ra c tiv e , Inc . 9 /30 /200 8 D G LP OT C BB USD U nited S ta tes 0 . 02 1 .3 0. 4 (3 . 3) NM 5. 4 x - 11 D igita lT ow n, In c . 1 1/30 /200 8 DGTW OT C BB USD U nited S ta tes 3 7 8. 5 NM (2 . 5) NM - - 3 D olph in D ig ita l Me dia , In c . NA DPDM OT C BB USD U nited S ta tes 0 . 55 2 7. 1 NA NM NM - - 6 E o lith C o. L td. 1 2/31 /200 7 A 0 410 60 KOS E KR W S o uth K or ea 885 5 0. 1 19. 7 (0 . 1) -0 . 3% 2. 5 x - NA E x te ns ions , Inc . 1 2/31 /200 8 E XTI OT C PK USD U nited S ta tes 0 . 15 1 4. 2 NM NM NM - - NA F ina n c ia l Med ia G r oup , Inc . 1 1/30 /200 8 F NG P OT C BB USD U nited S ta tes 0 0 .2 6. 8 1 .2 18 . 3% - - 22 F luid M us ic C a na d a , In c . 9 /30 /200 8 T S X : F MN TSX C AD U nited S ta tes 0 . 55 2 4. 5 4. 2 (8 . 6) NM 2. 5 x - 29 F ro gs te r In ter a c tiv e P ic tu re s A G 6 /30 /200 8 FRG XT R A EUR G er m a ny 9 2 7. 3 5. 4 (3 . 3) -6 0.6% 5. 0 x - NA G a ma nia D igita l E n ter ta inm en t C o. , L td. 1 2/31 /200 8 61 80 GTSM TW D T a iw a n 34 .55 15 8. 8 114 . 0 1 6. 5 14 . 5% 1. 2 x 8. 5x NA G a me O n C o L td. 1 2/31 /200 8 38 12 TSE JPY J ap an 96, 600 9 4. 0 75. 1 1 9. 4 25 . 9% 0. 5 x 2. 0x NA G e oS e ntr ic O yj 1 2/31 /200 8 G E O1 V H LS E EUR F inla nd 0 . 04 4 7. 8 5. 8 (1 3. 1) NM 6. 9 x - 94 G ia n t Int era c tiv e G r oup , Inc . 1 2/31 /200 8 GA NYSE USD C hina 8 1, 8 62. 2 233 . 6 14 4. 6 61 . 9% - - NA G iga Med ia L td . 1 2/31 /200 8 G IG M N a s da qG S USD T a iw a n 6 . 16 33 2. 8 190 . 4 4 6. 0 24 . 2% 1. 4 x 5. 6x NA G r a v ity C o. , L td 9 /30 /200 8 G R VY N a s da qG M USD S o uth K or ea 1 2 7. 2 38. 6 7 .4 19 . 2% - - 636 G r ee, Inc . 6 /30 /200 8 T S E : 363 2 TSE JPY J ap an 5 , 520 .00 1, 2 40. 4 29. 6 1 0. 6 36 . 0% 39. 8 x - NA G u ngH o O nlin e E n ter ta inm en t, In c . 1 2/31 /200 8 37 65 OS E JPY J ap an 1 37, 700 15 8. 8 113 . 2 2 0. 2 17 . 8% 1. 2 x 6. 8x NA H a n bitS of t, Inc . 1 2/31 /200 8 A 0 470 80 KOS E KR W S o uth K or ea 4 , 485 .00 7 7. 5 54. 8 (1 5. 5) -2 8.2% 1. 1 x - NA IA C /In ter A c tiv eC or p. 1 2/31 /200 8 IA C I N a s da qG S USD U nited S ta tes 16 2, 4 19. 2 1 , 44 5. 1 6 4. 6 4 . 5% 0. 5 x 1 0. 3 x 3 , 20 0 IA S E n erg y, Inc . 1 /31 /200 9 IA S C . A OT C BB USD C a na da 0 . 27 1 8. 9 0. 0 (0 . 8) NM - - NA Id ea E d ge, Inc . 1 2/31 /200 8 O T C B B : ID A E OT C BB USD U nited S ta tes 0 1 8. 1 0. 0 (4 . 6) NM - - NA is ee med ia Inc . 1 2/31 /200 8 IE E TS XV C AD C a na da 0 . 09 3 .9 1. 3 (5 . 0) NM 1. 8 x - NA J um bu c k E nt er ta inm ent P ty L t d. 1 2/31 /200 8 A S X : J MB AS X AU D A u s tra lia 0 1 7. 0 13. 2 4 .9 37 . 2% 0. 9 x 2. 5x 72 J um pT V Inc . 1 2/31 /200 8 T S X :J T V TSX C AD C a na da 0 . 65 6 2. 7 13. 4 (8 . 4) -6 2.6% 3. 5 x - 237 K a boo s e In c. 1 2/31 /200 8 T S X :K AB TSX C AD C a na da 1 7 1. 2 69. 5 6 .9 10 . 0% 1. 1 x 1 1. 2 x NA K in gs oft C o . L td . 1 2/31 /200 8 38 88 S E HK HKD C hina 3 . 53 48 9. 6 120 . 2 4 6. 6 38 . 7% 3. 4 x 8. 8x NA L in go M edia C o rp or a tion 9 /30 /200 8 T S XV : LM TS XV C AD C a na da 1 9 .8 3. 4 (1 . 5) -4 2.5% 3. 1 x - NA L iv e W o rld Inc . 1 2/31 /200 8 LV WD OT C PK USD U nited S ta tes 0 . 13 4 .0 11. 8 (0 . 5) -4 . 3% 0. 3 x - NA L o ok S m a r t, L td. 1 2/31 /200 8 LO OK N a s da qG M USD U nited S ta tes 1 2 1. 9 65. 0 (2 . 0) -3 . 1% - - 90 M a gn itu de Infor m a tion S y s tem s Inc . 9 /30 /200 8 MA G Y OT C BB USD U nited S ta tes 0 . 01 6 .1 0. 1 (3 . 2) NM - - 13 M ix i, In c. 1 2/31 /200 8 21 21 TSE JPY J ap an 4 53, 000 70 0. 2 118 . 1 4 4. 9 38 . 0% 5. 0 x 1 3. 3 x NA M ode rn T im es G r ou p Mt g A B 1 2/31 /200 8 MT G B OM S EK S w ed en 220 .00 1, 8 30. 3 1 , 66 2. 4 26 8. 2 16 . 1% 1. 4 x 8. 7x 2 , 96 9 M ogg le , Inc 1 2/31 /200 8 MM O G OT C BB USD U nited S ta tes 2 8 3. 5 NM (1 . 1) NM - - 3 M O K O .m obi L im ited 1 2/31 /200 8 MK B AS X AU D A u s tra lia 0 . 07 4 .7 1. 1 (2 . 2) NM 3. 5 x - NA N E O W IZ G a m es C or po ra tion 1 2/31 /200 7 A 0 956 60 KOS E KR W S o uth K or ea 60, 100 45 6. 3 142 . 2 3 8. 2 26 . 9% 3. 1 x 1 1. 7 x NA N etD r a go n W eb S oft , Inc . 1 2/31 /200 8 77 7 S E HK HKD C hina 5 . 23 35 6. 7 87. 3 3 9. 9 45 . 7% 2. 5 x 5. 5x 2 , 42 6 N ete a s e. c o m I nc . 1 2/31 /200 8 NTES N a s da qG S USD C hina 31 3, 7 85. 1 451 . 8 29 3. 8 65 . 0% - - NA N eX p lo re C o rp ora tion 9 /30 /200 7 NXPC OT C PK USD U nited S ta tes 0 . 45 2 5. 1 NM (4 . 9) NM - - 19 N gi G r oup Inc . 1 2/31 /200 8 24 97 TSE JPY J ap an 36, 800 4 5. 8 99. 0 3 0. 5 30 . 8% - - NA N or thg a te T e c hno lo gies L im ited 1 2/31 /200 8 59 005 7 BS E INR Ind ia 39 .80 2 8. 0 135 . 8 2 3. 9 17 . 6% 0. 2 x 1. 2x 286 O p en T e xt C o rp . 1 2/31 /200 8 OTEX N a s da qG S USD C a na da 33 1, 6 88. 3 769 . 3 19 5. 0 25 . 3% 2. 4 x 9. 3x 3 , 40 0 O p enw a v e S ys t em s Inc . 1 2/31 /200 8 OPW V N a s da qG S USD U nited S ta tes 1 . 26 10 5. 0 199 . 6 (1 0. 2) -5 . 1% 0. 1 x - 627 P e rf ec t W or ld C o., L td. 1 2/31 /200 8 PW R D N a s da qG S USD C hina 18 97 0. 2 210 . 5 11 3. 9 54 . 1% - - NA P h oto C h a nn el N etw ork s Inc . 1 2/31 /200 8 T S XV : P N TS XV C AD C a na da 1 . 50 4 3. 5 16. 9 (0 . 8) -4 . 9% 2. 5 x - NA Q u epa s a C or p. 1 2/31 /200 8 QPS A N a s da qC M USD U nited S ta tes 1 1 1. 4 0. 1 (1 1. 4) NM - - 74 O A O R B C Infor m a tion S y s tem s 1 2/31 /200 7 R BCI RTS USD R us s ia 0 . 99 13 6. 6 144 . 1 1 8. 8 13 . 1% 0. 0 x 0. 2x NA S h a nd a In ter a c tiv e E nter ta in me nt L td. 1 2/31 /200 8 S NDA N a s da qG S USD C hina 52 3, 6 37. 7 522 . 8 24 0. 2 46 . 0% 0. 2 x 0. 5x NA S h utte rf ly , In c . 1 2/31 /200 8 S F LY N a s da qG S USD U nited S ta tes 13 .12 33 0. 3 213 . 5 2 8. 4 13 . 3% 1. 1 x 8. 5x 514 S K C om mun ic a tions C o . , L td. 1 2/31 /200 7 A 0 662 70 KOS E KR W S o uth K or ea 9, 720 31 5. 2 163 . 5 1 5. 4 9 . 4% 1. 9 x 2 0. 5 x NA S N A P Inte ra c tiv e , Inc . 1 2/31 /200 8 S T VI OT C BB USD U nited S ta tes 0 . 67 7 .2 3. 0 0 .9 31 . 4% 1. 9 x 6. 1x 11 S N M G loba l H old in gs 9 /30 /200 8 S N MN OT C PK USD U nited S ta tes 0 0 .0 2. 0 (0 . 7) -3 4.8% 1. 1 x - 33 S o c ia l Med ia V e nur es , In c . 1 2/31 /200 8 S MVI OT C PK USD U nited S ta tes 0 . 01 0 .0 0. 1 (0 . 1) -6 0.5% 0. 0 x - NA S o hu. c om Inc . 1 2/31 /200 8 S OHU N a s da qG S USD C hina 58 2, 2 02. 1 429 . 1 18 0. 5 42 . 1% 4. 4 x 1 0. 5 x 3 , 19 7 S ite s ea r c h C or po ra t io n 1 /31 /200 9 S T PC OT C BB USD U nited S ta tes 3 . 50 2 8. 2 NM (1 . 1) NM - - 15 S p a r k N etw or k s , Inc . 1 2/31 /200 8 LO V AM E X USD U nited S ta tes 3 5 4. 5 57. 3 1 2. 3 NM 1. 0 x 4. 4x 183 S p ec tr um DN A , Inc . 1 2/31 /200 8 S P XA OT C BB USD U nited S ta tes 0 . 25 1 2. 2 0. 1 (2 . 5) 48 . 9% - - 7 T en c ent Ho ld in gs L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 69 16,0 34. 1 1 , 04 8. 0 51 2. 6 -1 2.0% 16. 7 x 3 4. 1 x 6 , 19 4 T he P a r en t C om pa n y 8/2/2008 K ID S . Q OT C PK USD U nited S ta tes 0 . 01 0 .3 112 . 0 (1 3. 5) 33 . 7% 0. 2 x - 347 T he 9 L im ited 1 2/31 /200 8 N CT Y N a s da qG S USD C hina 10 25 9. 1 250 . 2 8 4. 3 9 . 7% - - NA T he S tr eet . c om , Inc . 1 2/31 /200 8 TSCM N a s da qG M USD U nited S ta tes 2 . 14 6 5. 5 71. 9 7 .0 -5 0.6% - - 310 T ot a l S po rt O nline A S 3 /31 /200 6 TOSO O T C NO NO K N or wa y 0 0 .1 2. 1 (1 . 0) -1 0.4% 4. 6 x - 16 T r ee. C om , In c . 1 2/31 /200 8 TR EE N a s da qG M USD U nited S ta tes 9 . 48 9 4. 6 228 . 6 (2 3. 9) 0 . 4% 0. 4 x - 700 U nis er v e C om mu nic a tion s C o rp . 1 1/30 /200 8 T S X V : US S TS XV C AD C a na da 0 0 .8 25. 3 0 .1 23 . 0% 0. 1 x 2 9. 5 x NA U nited O nline Inc . 1 2/31 /200 8 U NT D N a s da qG S USD U nited S ta tes 5 . 68 47 1. 6 669 . 4 15 3. 9 -7 8.2% 1. 2 x 5. 1x 1 , 46 9 U O MO Med ia , Inc 1 /31 /200 9 U O MO OT C BB USD C a na da 0 1 2. 0 0. 6 (0 . 5) 18 . 2% 19. 4 x - NA V a lueC lic k Inc . 1 2/31 /200 8 V C LK N a s da qG S USD U nited S ta tes 11 .00 95 4. 3 625 . 8 11 3. 6 NM 1. 3 x 7. 3x 1 , 18 9 V O IS , In c. 1 2/31 /200 8 V O IS OT C BB USD U nited S ta tes 0 2 .7 0. 0 (1 . 3) -1 9.8% - - 4 W eb ze n In c . 1 2/31 /200 8 W ZE N N a s da qG M USD S o uth K or ea 2 . 87 3 4. 0 22. 5 (4 . 4) -9 8.2% - - NA W iz za rd S of twa re C o rp ora tion 1 2/31 /200 8 W ZE AM E X USD U nited S ta tes 1 2 9. 2 6. 1 (6 . 0) NM 4. 8 x - 110 W or lds . c om In c. 9 /30 /200 8 W DD D OT C BB USD U nited S ta tes 0 . 17 8 .9 0. 1 NM NM - - 1 W y nds to rm C or por a tio n NA W YND OT C BB USD U nited S ta tes 0 0 .5 NA NM 32 . 0% - - NA X IN G A G 1 2/31 /200 8 O 1B C XT R A EUR G er m a ny 29 .90 20 4. 4 46. 6 1 4. 9 22 . 4% 3. 2 x 9. 9x 174 Y e da n gO nline C o rp . 1 2/31 /200 7 A 0 527 70 KOS E KR W S o uth K or ea 8, 810 10 8. 7 54. 1 1 2. 1 -7 . 6% 2. 0 x 8. 9x NA Y n k K or ea Inc . 1 2/31 /200 7 A 0 237 70 KOS E KR W S o uth K or ea 6 , 030 .00 1 1. 7 15. 4 (1 . 2) NM 0. 8 x - NA Z ipL o c a l Inc . 1 2/31 /200 8 T S X V : ZIP TS XV C AD C a na da 0 0 .3 2. 8 (2 . 9) 0 . 0% 0. 6 x - NA H igh 16,0 34. 1 1 , 662 . 4 51 2. 6 65 . 0% 39. 8 x 3 4. 1 x 6 , 194 Low 0 .0 0. 0 - 23. 9 -9 8.9% 0. 0 x 0. 2x 1 A vera ge 49 3.4 148 .0 33 .2 7 .4% 4 .7x 9 .7x 678 M edia n 4 7. 8 54. 4 1 .1 15 . 3% 1. 4 x 8. 5x 174 Figure 1. Web 2.0 Universe Summary Source. Capital IQ
  • Page 3 C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) April activity slow est month year-to-date: The month of April closed with 21 financings totalling $144.5 million. Seven of the 21 deals were greater than or equal to $10 million and two deals were greater than $15 million. The month of March registered 23 financings (total $159.5 million, average $6.5 million) compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January. Financing Activity Last Three Months 200.0 7.6 180.0 7.4 160.0 7.2 140.0 7.0 120.0 6.8 (US$m) (US$m) 100.0 6.6 80.0 6.4 60.0 6.2 40.0 6.0 20.0 5.8 0.0 5.6 Feb-09 Mar-09 Apr-09 Total Average Figure 2. Financings, Last Three Months Source. Company reports Collective Media largest deal in April: Collective Media topped the list in April with a $20 million raise, followed by Goom Radio with $16 million. There were five deals greater than or equal to $10 million (Figure 3). For additional details, refer to Figures 29 and 30 (at end of note).
  • (US$m) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Twitter Kaixin001.com Collective Media Source. Company reports Synthasite Tremor Media GOOM Radio Vidyo Offerpal Media 12 deals. (Figure 4). Imagini Marin Software The Rubicon Project Buzznet Emergent Game Technologies Figure 3. Capital Market Activity, Last Three Months FreeWheel Outbrain LendingClub SendMe Inc. Miva Auditude Conductor Inc. Cellufun Glam Media Visible Measures SuperSecret Tvtrip GoViral ScanScout Batanga Tongxue Oodle Greystripe Wamba DoubleTwist OMGPOP IMShopping Socialtext TextDigger OneSpot Mixercast Apture FetchDog Mixpo Simulmedia Virtual Fairground Tynt SoundCloud AnySource Media Pixazza 7 Billion People TubeMogul Financing Summary - Last Three Months FamilyLink.com Tribal Nova WhistleBox Sports Composite DE Bit.ly Tripbase Hunch Outright Mendeley Tvinci Filtrbox Socialcast Brandtology Scan & Target AdultSpace MMO Life Cake Financial Myngle Jodange 33Across fav.or.it Three Melons Foodista Apr-09 Mar-09 Feb-09 Page 4 the Video sector with nine companies raising over $75.4 million, closely followed by Social Networks with $74.4 million on Video and Social Networks continue to be the most active sectors: Activity over the last three months was busiest in
  • Page 5 Capital Market Activity by Sector - Last Three Months 80.0 70.0 60.0 50.0 (US$m) 40.0 75.4 74.4 30.0 57.4 54.9 41.4 20.0 37.0 22.5 20.6 10.0 17.4 15.0 14.3 12.0 12.0 11.0 6.5 5.5 4.7 4.1 4.1 3.9 3.1 2.6 2.0 2.0 1.3 1.3 0.0 Comment/Reputation Social Commerce Gaming Visual Commerce Wiki Travel Media Microblog Mobile Publishing Online Learning Financial Services Mobile Ad Widget Search Lending Infrastructure Social Networks Virtual Goods SAS Video Aggregation Virtual World Crowdsourced Ad Network Analytics Content # companies 9 12 7 6 7 2 4 2 4 1 2 1 1 2 2 1 1 1 1 1 1 2 1 1 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports Average round size decreases: On a trailing 12-month basis, total financing dollars fell as of April 2009, with average round sizes decreasing slightly (Figure 5).
  • Page 6 LTM Financing 4,000.0 18.0 16.0 3,500.0 14.0 3,000.0 12.0 2,500.0 10.0 (US$m) (US$m) 2,000.0 8.0 1,500.0 6.0 1,000.0 4.0 500.0 2.0 0.0 0.0 May-06 May-07 May-08 Nov-05 Mar-06 Nov-06 Mar-07 Nov-07 Mar-08 Nov-08 Mar-09 Jul-05 Sep-05 Jan-06 Jul-06 Sep-06 Jan-07 Jul-07 Sep-07 Jan-08 Jul-08 Sep-08 Jan-09 Total Average Figure 5. Financings, Last 12 Months Source. Company reports Cumulative total nears $6.2 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled nearly $6.2 billion, with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the first quarter of 2009 passed that raised in the fourth quarter of 2008 – reversing the downtrend since the second quarter last year. However, for the period ended Q1/CY09, total capital raised was below the Q1/CY08 level (at $748.2 million).
  • Page 7 Web 2.0 Financing (cumulative) 1,400.0 7,000.0 1,331.1 1,200.0 6,000.0 969.4 1,000.0 5,000.0 834.4 800.0 4,000.0 (US$m) (US$m) 574.9 570.8 3,000.0 600.0 360.1 400.0 2,000.0 343.1 172.7171.8 200.0 1,000.0 144.5 126.4 135.6 93.0 88.3 61.5 47.5 33.5 22.2 41.9 38.8 20.1 0.0 0.0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 2004 2005 2006 2007 2008 2009 Figure 6. Financing, Cumulative Source. Company reports U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 67.9% of financings/M&A involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 73.1% of deals, while Canada is third in number of financings at 4.5% (Figure 8). Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#) China Canada France UK 15.7% 4.5% 3.4% 4.9% Russia Israel 3.8% 3.0% UK France 2.2% 2.2% ROW Israel 11.0% 1.8% Denmark 1.5% ROW 4.9% USA 73.1% USA 67.9% Figures 7 & 8. Financing/M&A, by Country (LTM, $, #) Source. Company reports Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 28.7% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 8.8%.
  • Page 8 Financing by Type - LTM Series C 15.1% Series B 28.7% Series D 4.7% Angel/Seed 11.6% Debt financing Series A 2.7% 35.3% PIPE 1.9% Figure 9 Financing, by Type (LTM, #) Source. Company reports Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C and D rounds has all been lower than the overall average (Figure 10). Average financing round size 40.0 36.1 35.0 30.6 29.7 30.0 26.7 25.0 21.6 (US$m) 20.0 18.3 15.0 11.6 11.6 10.8 10.8 10.0 7.9 7.0 5.8 5.4 5.0 3.3 2.6 0.0 Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E LTM Average Size Overall Average Figure 10. Average Size per Round Source. Company reports
  • Page 9 C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid- 2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 11). Web 2.0 Index Price Performance 120 100 80 60 40 20 0 5/5/2008 5/19/2008 6/2/2008 6/16/2008 6/30/2008 7/14/2008 7/28/2008 8/11/2008 8/25/2008 9/8/2008 9/22/2008 10/6/2008 10/20/2008 11/3/2008 11/17/2008 12/1/2008 12/15/2008 12/29/2008 1/12/2009 1/26/2009 2/9/2009 2/23/2009 3/9/2009 3/23/2009 4/6/2009 4/20/2009 5/4/2009 ^COMP - Share Pricing Index: Web 2.0 X (Market Cap) Figure 11. Web 2.0 Price Performance Source. Capital IQ Tree.com leads; Beyond Commerce falls: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week
  • Page 10 1 Week P rice P erformance Tree.Com, Inc. 62.3% Cy berplex Inc. 39.8% S hutterf ly , Inc. 29.4% Changy ou.com Limited 21.7% United Online Inc. 19.6% S park Netw orks , Inc. 17.8% DA DA S pA 17.6% S ohu.com Inc. 13.9% V alueClick Inc. 13.5% CDC Corp. 11.9% S handa Interactive Entertainment Ltd. 10.8% Perfect World Co., Ltd. 9.6% Openw ave S y s tems Inc. 5.9% The9 Limited 4.9% Modern Times G roup Mtg A B 3.8% Webz en Inc. 3.2% Neteas e.com Inc. 1.7% IA C/InterA ctiveCorp. 0.7% XING A G 0.4% Open Tex t Corp. -3.0% -3.1% Giant Interactive G roup, Inc. PhotoChannel Netw orks Inc. -3.2% Frogs ter Interactiv e Pictures A G -4.0% LookS mart, Ltd. -5.3% G igaMedia Ltd. -8.7% TheS treet.com, Inc. -8.9% B ey ond Commerc e, Inc. -10.7% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Figure 12. 1-Week Price Performance Source. Capital IQ
  • Page 11 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany Headline Notes Acceleriz e N ew Media Inc. to T erminate C hris M eredith O n April 24, 2009 the B oard o f Directors of the Acceleriz e N ew Media Inc. decided to termina te the employment of C hris Meredith, the A c celeriz e New Media, In c. a s Chi ef T ec hnology O fficer, E ffec tive April 30, 2009 company's C hief T echnology O fficer. T he termina tion of employment is effec tive as of April 30, 2009. M r. Meredith will c onti nue to s erve a s a (OT CB B: A CL Z) member of the company 's B oard of D irectors until he res igns, i s removed or repla ced by a vote of the sha reholders . NetDragon L aunc hes O pen B eta T es ting for T he NetDragon W ebS oft Inc. announced tha t T he W a rlords, the E nglis h v ersion of Tou M ing Z hua ng O nline, entered its open beta testing on NetDrago n W ebS oft, Inc. (S E HK :777) W a rlords in North Americ a April 24. T he W arlords is a 2. 5 D MM O R P G ga me jointly crea ted by NetDragon a nd C hina Film G roup, sharing the s a me story a s the film titled T he Wa rlords . I t exhibits traditiona l C hines e martial arts through c omplica ted stories s et in the late Q ing D ynas ty . B eyond Commerce I nc. Announces the La unch of B eyond Commerce Inc . a nnounc ed the official launc h of Loca lAdL ink .com, a low cos t provider of online a dvertising for loca l bus iness es B eyond Commerc e, Inc . L ocalA dlink a cros s the na tion. L oc alAdL ink is a provider of services tha t ena bl e loca l bus ines ses to re a ch loca l c ustomers with targeted Internet (OT CB B: B Y OC) a dvertising. T he cus tomer fac ing W eb s ite, L oc alAdLink .com, is a local search directory and a cts a s the c entra l hub for the Loca lAdL ink tec hnology. W hen a cus tomer vis its L o calAdLink .com, proprieta ry geo-targeting s oftwa re identifies the cus tomer's loc ation and dis pla y s releva nt loca l b usines s lis tings . I n a ddition, L oc alAdLink ha s c reated an Adv ertising Network tha t publis hes loc al bus iness listings on its owned a nd opera ted s ites, as well as pa rtner sites . W orlds. com Inc . S igns A greement with P ears on plc W orlds. com Inc . has a nnounc ed that it ha s s igned a n agreement with P ea rson plc to dev elop a s eries of 3D vi rtual worlds tha t ma y be P ears o n plc (L S E : PS ON); Wo rlds .co m utiliz ed for implementa tion within ex isting P earson educa tiona l a nd digital programs . T erms of the agreement were not released. P ea rs on Inc. (OTC BB : W DD D) has stated that it is c ommitted to investments tha t c omplement the goal s of its programs , particula rly to enh ance student a chievement. W ith W orlds. com's virtua l world capability and 15 y ears of experience, P ea rs on will ex plore opportunities to enhance s tudent lea rning a nd enga gement. W orld's us ers crea te av atars that na viga te through v irtual worlds as well as build their own worlds on a P 2P network . T he company is building on ex isting forma ts to improve web capabilities in the 3D online environment. P hotoC ha nnel Network s Inc . Appoints R obert C his holm P hotoC ha nnel N etworks Inc . a nnounces that former C FO , R obert C hisholm, ha s joined the B oa rd of D irectors, effective immediately. Mr. P hotoC han nel N etworks Inc. to I ts B oard Chis holm ha d been P N I's C FO for more than sev en y ears, until Ma rc h 26th, 2009 when he left to purs ue other opportunities. At that time, (T S XV: PN) S imon B ody more wa s promoted to C FO . W izz ard Announc es the R elea se of Alc hemy 2.1 W izza rd S oftwa re C orporation a nnounc ed the releas e of Alchemy 2. 1 with seamles s integration into the L ibs ynP R O /W iz za rd Media W izz ard S oftware Co rporation Advertising Network . N ow, advertis ing c ampaigns run in podc ast downloa ds ca n automa tic ally play through the W iz za rd Media flas h pla yer (A ME X: WZE ) with a dv anced tra ck ing a nd interac tive capabilities . No need to use separa te s y stems to run a ds in downloaded media an d s trea ming media . T he same ads pla y when downloaded in i T unes , pla yed throu gh mobile iT unes on the iP hone and pla y ed online through the flas h ba s ed media player. T he Alchemy 2. 1 implementation of the W izz ard M edia flas h play er a dheres to the IAB V AS T (V ideo Ad S erving T emplate) sta ndard tha t a llows for simple plug-n-play for third party advertising s ys tem integra tion. T he new s ys tem work s with AO L 's P latform A a nd ADT E CH a nd W izz a rd plans to expand the c apabilities to include DoubleC lic k and Atla s in the nea r future. T he mea suring of advertis ements , cons umer click throughs to advertis er's web s ites and a udienc e feedbac k res ponses are all tra cked us ing N ielsen//N etR a ting. NeuL ion L aunc hes New I P T V N etwork for R omania n NeuL ion Inc. announced the la unch of a new s tate-of-the-art I P T V network for R omanian audiences in North Americ a. iT V R S N provides J u mpTV Inc . (TS X : J TV) Audienc es in N orth America viewers an ex tens ive selection of R oma nia n televis ion progra ms from R oma nia . iTV R S N's content offering i ncludes more tha n 25 televis ion programs with exc lus ive distributio n rights outs ide R oma nia . T his is a long a wa ited solution for R oma nian expa triates and R oma nian speak ers in the U. S . a nd Canada interes ted in wa tching telev is ion from home. The s et-top-box service provides the R omania n community with c ontent de livered in high digita l qua lity direct to the televis ion s et throug h the I nternet. iT V R S N 's content offering inc ludes: C onstanta T V , T araf T V , E TN O T V , N eptun T V , G ameX, B ra va T V , R omania n T elevis ion Network (R T N ), R oma nian Chris tia n T V , Antena I nterna tiona l, F avorit TV , K anal D , MT V , N 24, Na tiona l T V , P rima TV , P roT v I nternational, R ea lita tea T V , T elesport, T V R Cultural, T V R Internatio nal, T V R 3, T rinita s T V , U T V and others. Digita lP os t Intera ctiv e S igns $340,000 Contract with a Digita lP ost Intera ctive I nc. s igned a $340, 000 c ontra ct to ins ta ll a cus tom-des igned intera ctive-media management sy stem for a leading DigitalPo s t Interac tive, In c. L eading I nternet S earch Co mpa ny Internet se arch compa ny prov iding ins ta nt rich media I nternet visibi lity for their bus ines s pa rtners . T he c ontent ma nagement s ys tem, (OT CB B: DG L P) scheduled for delivery by S eptember 30, 2009, i s the infras tructure for a new interactive media pla tform that will ena ble the customer to offer a broad ra nge of i ntera ctive digital media c apabilities for its bus ines s cus tomers . T his is the s econd c ontra ct awa rded to DigitalP os t by this industry leader. T heS treet.c om, Inc . (Nas daqG M: T S CM) E ric As hman to R esign a s C hief Fina nc ial O fficer of E ric As hman notified T heS treet. com In c. on April 27, 2009 tha t he will resign from his pos ition a s C hief Fina nc ial O fficer of the C ompany , T heS treet.com, Inc effective May 8 , 2009, in order to purs ue other bus ines s interes ts. M r. As hman ha s advised the company tha t he will remain in his position through the fi ling of the c ompa ny's F orm 10-Q for the qua rter ended Ma rc h 31, 2009 a nd pa rticipate in the compa ny 's quarterly ea rnings c all with I nterim CE O , D aryl O tte. Upda te to IAC /I nte rA ctiveC orp’s E quity B uybac k on April O n April 29, 2009, I AC /I nterAc tiv eC orp. announced tha t durin g the quarter ending March 31, 2009, it ha s repurchase d 2, 400,000 sha res for a IAC /InterAc tiveC orp. (Nas daqG S : IAC I) 29, 2009 total c os t of $35.95 million under the program. As of M arch 31, 2009, I AC ha s repurchase d approximately 9,980, 754 sha res for an a pproxima te cos t of $446. 03 million under the program. Upda te to IAC /I nte rA ctiveC orp’s E quity B uybac k on April O n April 29, 2009, I AC /I nterAc tiv eC orp. announced tha t durin g the quarter ending March 31, 2009, it ha s repurchase d 2, 400,000 sha res for a IAC /InterAc tiveC orp. (Nas daqG S : IAC I) 29, 2009 total c os t of $35.95 million under the program. As of M arch 31, 2009, I AC ha s repurchase d approximately 9,980, 754 sha res for an a pproxima te cos t of $446. 03 million under the program. O penwa ve S y stems Inc. R eports E arnings R es ults for O penwa ve S y stems Inc. announced tha t revenues for the thi rd fisc al q uarter ended M arch 31, 2009 were $44.7 milli on, compared with $48. 1 Openwave S ys tems Inc . T hird Q ua rter a nd Nine Months E nded Ma rch 31, 2009 million in the prior quarter end ed D ecember 31, 2008 a nd $47.0 million in the M arch qua rter in the preceding year. B ookings for the qua rter (Nas daqG S : OPW V) were $37.6 mill ion. O n a G AAP ba sis , net los s for the third fis ca l qua rter ended March 31, 200 9 wa s $7.8 million, or $0. 09 per s ha re, compared with $64. 2 million, or $0.77 per s hare, in the prior qua rter, and $14.7 million, or $0.18 per s ha re, in the Marc h quarter in the preceding year. G A AP net los s for the Dec ember quarter includes an impa irment to goodwill of $59.5 milli on. O n a non-G AAP basis , net income, whi ch excludes restructuring cos ts, the impairment of goodwill, amortiz ation of inta ngibles and other a cquis ition-related cos ts , s tock - based compens a tion, cos ts as s ociated with the s toc k option lawsuit a nd s pecia l inves tigation, dis c ontinued opera ti ons, a nd other-tha n- tempora ry impa irment of inves tments, for the third qua rter ended March 31, 2009 was $385,000, or $0.00 per sha re, c ompared with a net income of $1.4 million, or $0. 02 per s ha re, in the prior quarter and a net loss of $7.2 million, or $0. 09 per s ha re, during the Ma rc h qua rter of th Unis erve C ommunic ations C orp. R eports U naudited Unis erve C ommunications C orp. reported unaudited c onsolida ted ea rnings results for the third qua rter and nine months ended F ebruary 28, U nis erve C ommun ic ation s C orp. Cons olida ted E arnings R es ults for the T hird Q uarter a nd 2009. F or the qua rter, the compa ny reported operating loss of C AD 399, 846, los s before income ta x es of C AD 693,831, net loss a n d (T S XV: U S S ) Nine Months E nded Februa ry 28, 2009 comprehens ive loss of CAD 693, 831 or CA D 0.03 diluted los s per s hare on rev enues of CA D 4,427, 506 c ompa red to the opera ting loss of CAD 579, 560, los s before inc ome tax es of C AD 1,283, 566, net los s a nd comprehens ive loss of CAD 1, 151, 266 or CAD 0. 05 di luted loss per sha re on rev enues of C AD 8,266, 102 for the sa me qua rter year ago. F or the quarter, the compa ny reported ca s h pro vided by operating a ctivities of C AD 46,097 compared to the C AD 816, 888 for the s ame quarter y ear a go. F or the nine months period, the company reported opera ting los s of C A D 1,923, 120, income before inc ome taxes of C AD 1,295, 122, net income and c omprehens ive income of C AD 1,269, 058 or C AD 0.04 diluted los s per share on rev enues of C AD 17,900, 566 compa red to the opera ting loss of CAD 630, 550, los s before inc ome taxes of C AD 2, 240,379, net los s a nd comprehens ive los s of CAD 2, 288, 079 or CAD 0.10 diluted los s per s hare on revenues of CA D 25,410, 903 for the sa me period y ea r a go. F or the period, the c ompany reported ca s h us ed in Acceleriz e N ew Media Inc. E nters La unches P roprieta ry Accelerize New M edia I nc. announced the public lau nch of its proprietary lea d generation platform. K ey adva ntages of the proprietary A c celeriz e New Media, In c. L ead G enera tion P la tform pla tform a re its s c alability a nd vertica l independence, us ing s ma rt tec hnology to provide optimal va lue to buy ers a nd sellers . T he fully (OT CB B: A CL Z) a utoma ted lead genera tion pla tform a cc epts and va lida tes lea ds from more tha n 50 compa ny-owned web s ites and 125 third-pa rty publishers . L ea ds are then s cored and dis tributed into a queu e ma na ger, which a llows for rea l-time s ale of qua lified leads. The pla tform's proprietary predic tiv e c oncurrent router efficiently deliv ers leads utilizin g c utting edge technologies , lik e predictive purcha s ing and dynamic pricing.
  • Page 12 IAC /InterActiveC orp. R eports Unaudited C ons olidated IAC /InterActiveC orp. reported una udited cons olida ted ea rnings res ults for the firs t quarter ended Ma rch 31, 2009. F or the quarter, the IAC /InterActiveC orp. (Nas daqGS : IAC I) E a rnings R es ults for the F irs t Q ua rter E nded Ma rch 31, company reported opera ting los s of $33.12 million, los s from continuing opera tions before income taxes of $32. 56 million, net los s of $28. 64 2009 ; Announces Impa irment C harges for the F irs t million a nd net los s a ttributa ble to the company s ha reholders of $28. 38 million or $0.19 per diluted s ha re on revenue of $332. 01 million Quarter of 2009 compared to opera ting los s of $11.11 million, ea rnings from continuing opera tions before income taxes of $0. 58 million, net ea rnings of $52.48 million a nd net ea rnings a ttributa ble to the company s ha reholders of $52. 82 million or $0.38 per diluted s hare on revenue of $370. 65 million for the s ame period a year ago. O perating los s before amortiza tion wa s $3. 2 million compared to opera ting income before a mortiza tion of $18. 6 million reported a year ago. T he company reported los s from continuing operations of $29. 88 million or $0.20 per diluted s ha re compa red to $3.45 million or $0. 02 per diluted s ha re for the s a me period a year ago. Adjus ted net los s was $3. 0 million or $0. 02 per diluted s ha re compared to a djus ted net income of $10.6 million or $0.07 per diluted s hare for the s a me period a yea r a go. Net ca s h S hutterfly Inc. R eports E a rnings R es ults for the F irs t S hutterfly Inc. reported earnings res ults for the firs t qua rter ended Ma rch 31, 2009. F or the qua rter, the reported los s before income taxes of S hutterfly, Inc. (Nas daqG S : S F L Y) Quarter E nded Ma rch 31, 2009; P rovides E a rnings $9, 160, 000, net los s of $6, 232, 000 or $0. 25 per s hare on net revenues of $36,012,000 agains t los s before income taxes of $7,112, 000, net G uida nce for the S econd Quarter a nd F ull Y ear of 2009 los s of $3, 639, 000 or $0. 15 per s hare on net revenues of $34,338,000 for the s ame period a yea r ago. According to Non-G aa p, the compa ny reported opera ting los s of $6, 156, 000, net los s of $2, 951, 000 or $0. 12 diluted los s per s ha re, nega tive adjus ted E B IT DA of $728,000 a gains t opera ting los s of $6, 135, 000, net los s of $4, 139, 000 or $0.16 diluted los s per s hare, nega tive adjus ted E B IT DA of $114,000 for the s ame period a yea r ago. Net cas h us ed by operating activities of $19,258, 000 agains t net ca s h us ed by operating a ctivities of $12, 030,000 for the s ame period a yea r ago. T he compa ny provides ea rnings guidance for the s econd qua rter of 2009. Net revenues to range from $34 million to $37 million, a year-over- year cha nge of (4% ) to 4% . G AAP opera ting los s to ra nge from $13 million to $11 million. Non-G AAP operating los s to ra nge from $10 million to $8 million. G AAP diluted net los s per s ha re to ra nge from $0. 30 to $0. 14. Non-G AAP diluted net los s per s ha re to range from $0.41 to $0.20. G igaMedia Ltd. Announces R es igna tion Daniel W u as G iga Media L td. a nnounced the res ignation of its chairman a nd director Da niel W u for pers onal reas ons . Mr. W u became cha irma n of the GigaMedia L td. (Nas daqGS : G IG M) C hairman a nd Director boa rd of directors in J uly 2003 and s ubmitted his res igna tion citing pers ona l a nd fa mily obliga tions . T he res ignation is effective April 29, 2009. Lobla w C ompa nies S elects Open T ext E C M S uite O pen T ext C orp. announced tha t L oblaw C ompanies L imited ha s chos en Open T ext's E C M S uite. T he a rchiving and records ma nagement Open Text C orp. (Nas daqGS : OTE X) capabilities of the Open T ext E C M S uite will ena ble L obla w us ers to more effectively ens ure s torage a nd a cces s ibility of da ta and informa tion, according to their value, acros s the entire retention period, while helping to reduce da ta s torage cos ts . F red Meyer and K ing S oopers S elect P hotoC ha nnel P hotoC hannel Networks Inc. a nnounced that it ha s been s elected by F red Meyer a nd K ing S oopers (both K roger companies ) to deliver their P hotoC hannel Networks Inc. Networks Inc. to Deliver their Next G enera tion O nline next genera tion online photo s ite a nd kios k. T he compa ny will deliver two new photo s ites bra nded for F red Meyer and K ing S oopers , as well (TS XV: P N) P hoto S ite and K ios k a s over 700 kios k s oftwa re deployments . T he kios k s oftware is part of the company's 'C onnected K ios k' progra m a nd was recently a cquired a s pa rt of the purcha s e of W orks Media, now integrated to the P NI P la tform. B es ides providing 1-hour print ca pa bilities , both the online s ite a nd the kios ks will be fully outfitted with a large s election of gift products . T he new s ervices will s tart being deployed in the current quarter. Digita lF X International Inc. La unches new W eb P ortal for Digita lF X Interna tiona l Inc. a nnounced that its V Mdirect unit la unched a new W eb porta l www. vmdirect. com which ena bles its members and DigitalFX International, Inc . E -Ma rketing T ools Ava ila ble to the P ublic at the C lick of a the public to more ea s ily acces s and take advanta ge of its unique internet marketing platform and program opportunity. T he V Mdirect new (OTC B B : DG FX) Mous e us er-friendly porta l provides a s ingle central ga tewa y for the varied and us eful tools , deta iled compens a tion plan informa tion a nd other res ources that V Mdirect offers to its Affiliates , including its highly prized 'T ake C ha rge' s emina rs . T he intuitive web marketing tools a nd their wide range of us a ge res pond to ma rket manda te for s olutions which enha nce s a les , efficiency, cus tomer s ervice and accountability. T he porta l will guide us ers to the new C omF 5 S uite ('F 5') product line, a s ta te of the art e-marketing tool powered by AttainR es pons e LL C that will ena ble s mall and medium bus ines s es to ea s ily create and dis tribute ema il ma rketing ca mpa igns at an a ffordable price. S ervice T erminal and a few individuals acquired 98. 2% S ervice T ermina l a nd a few individua ls a cquired 98.2% s ta ke in R B C B ank from OAO R B C Informa tion S ys tems (R T S : R B C I) for R UB 300 OAO R B C Information S ys tems s take in R B C B ank from O AO R B C Information S ys tems million on April 30, 2009. (R TS : R B C I); R B C B ank; S ervic e (R T S : R B C I) for R UB 300 million. S ervice T ermina l a nd a few individua ls completed the acquis ition of 98. 2% s take in R B C B a nk from OAO R B C Information S ys tems (R T S : Terminal R B C I) on April 30, 2009. B eyond C ommerce, Inc. has filed a S helf R egis tration in B eyond C ommerce, Inc. ha s filed a S helf R egis tra tion in the a mount of $4. 73 million. B eyond C ommerc e, Inc. the amount of $4.73 million. (OTC B B : B YOC ) Lingo Media C orporation R eports E arnings R es ults for L ingo Media C orpora tion reported earnings res ults for the fourth quarter a nd full year ended December 31, 2008. F or the qua rter, the L ingo Media C orporation (TS XV: L M) the F ourth Q ua rter and F ull Y ear E nded December 31, company reported revenue from continuing opera tions were C AD 534,311 compared to C AD 617, 531 in 2007. Net los s from continuing 2008 opera tions was C AD 746, 568 or C AD 0. 07 per s ha re compared to C AD 167, 802 or C AD 0. 02 per s hare in 2007. T his includes a non- recurring cha rge of C AD 340,000 for a write-off of a n impa ired inves tment. F or the full yea r, the compa ny reported revenue from continuing opera tions increas ed by 10% in 2008 to C AD 969, 128 compa red to C AD 879,626 in the previous yea r. Net los s from continuing opera tions was C AD 2, 311, 474 or C AD 0.22 per s ha re compared to C AD 632, 192 or C AD 0.11 per s ha re in 2007. Net los s wa s C AD 3, 882,843 or C AD 0.37 per s ha re compa red to a net los s of C AD 925,040 or C AD 0. 16 per s ha re in 2007. United O nline Inc. Decla res Q ua rterly C a s h Dividend, United Online Inc. a nnounced that its B oard of Directors has declared a quarterly cas h dividend of $0.10 per s ha re. T he dividend is paya ble United Online Inc. (Nas daqGS : UNTD) P a yable on Ma y 29, 2009 on Ma y 29, 2009 to s ha reholders of record on May 14, 2009. IAC /InterActiveC orp. (Nas daqGS : IAC I); IAC In T a lks T o Acquire Y ahoo! P ers onals IAC /InterActiveC orp. reported 10% drop in firs t-qua rter revenues of $332 million. IAC s tated tha t the company is in ta lks to a cquire Y ahoo! P ers onals in order to s upplement its Match.com bus ines s . C E O of the compa ny, B a rry Diller s a id: “W e are very interes ted. W e’d love to Yahoo! Inc. (Nas daqGS : YHOO); Yahoo! have Y a hoo! P ers ona ls and I think there is s ome initia l dis cus s ions about tha t, whether they’re going awa y or not is of cours e enormous ly P ers onals s peculative. B ut I think, Y ahoo! ha s s aid tha t it’s not a n abs olute core a s s et their future a nd it is core to us . W e’re a lea der in the category. S o, we’re very aggres s ive behind Ma tch and a ny pos s ibilities for increa s ing its future money in the world. ” Y a hoo! Inc is looking a t dives ting its non-core properties a nd IAC is likely to be a buyer of other a s s ets too. C hangyou. com Limited R eports Una udited C ons olidated C hangyou. com L imited reported unaudited cons olidated ea rnings res ults for the firs t quarter ended March 31, 2009. F or the qua rter, the C hangyou.c om L imited E a rnings R es ults for the F irs t Q ua rter E nded Ma rch 31, company's tota l revenues increas ed 6% qua rter-over-qua rter and 50% year-over-year to $61. 6 million compa red to total revenue of $41 (Nas daqG S : C YOU) 2009; P rovides E arnings G uida nce for the S econd million for the s ame qua rter a yea r ago. T he increas es were mainly a ttributa ble to a n increas e in T L B B revenues as a res ult of us er bas e Quarter of 2009 expa ns ion and enhanced us er loya lty, a s well a s increas ed revenues from B lade O nline ('B O'). Operating profit increa s ed 12% quarter-over- qua rter and 79% year-over-yea r to $37. 9 million compared to opera ting profit of $21.2 million for the s a me quarter a year a go. Net income increa s ed 15% quarter-over-qua rter and 120% yea r-over-year to $33.5 million compa red to net income of $15.2 million for the s a me quarter a year a go. Non-G AAP net income increa s ed 13% quarter-over-qua rter and 100% yea r-over-year to $34.4 million compa red to net income of $17.2 million for the s ame qua rter a year a go. B as ic a nd fully diluted earnings per ADS were $0. 71, compared to $0. 32 in the firs t quarter of 2008. Non-G AAP fully diluted earnings per ADS were $0.72, compa red to $0.36 in the firs t qua rter of 2008. Income before income ta x expens S ohu. com Inc. R eports Una udited C ons olida ted E a rnings S ohu.com Inc. reported unaudited cons olidated ea rnings res ults for the firs t qua rter ended March 31, 2009. G AAP net income of $44.6 S ohu.c om Inc. (Nas daqG S : S OHU) R es ults for the F irs t Quarter E nded Ma rch 31, 2009 ; million or $1. 15 per fully diluted s hare. G AAP net income wa s 2. 1 times tha t of firs t quarter 2008. G AAP net income included $33. 5 million of P rovides E a rnings G uidance for the S econd Q ua rter of G AAP net income contributed by online game bus ines s with a 15% qua rter-on-qua rter increa s e or a 120% year-on-yea r increa s e. Non-G AAP 2009 net income (i. e., excluding s ha re-ba s ed compens a tion expens e) of $46.9 million, or $1. 20 per fully diluted s hare, exceeding the high end of company guidance of $1. 10 by 10 cents . Non-G AAP net income increa s ed 87% yea r-on-year. Non-G AAP net income included $34. 4 million of Non-G AAP net income contributed by online ga me bus ines s with a 13% quarter-on-quarter increa s e or a 100% year-on-year increas e. T ota l revenues were $115. 7 million, repres enting a decreas e of 5% s equentia lly a nd increas e of 36% yea r-on-yea r. T he company a ls o reported opera ting profit of $50, 037, 000, income before income ta x expens e of $51, 160, 000 a nd income from continuing operations of $44,574, 000 agains t operating profit of $30, 531,000, income before income tax expens e of $30, 740,000 a nd income from continuing opera tions of $21 Figure 13. Key Developments Source. Capital IQ VALUATION MMOG companies lead market-cap charts: Ten companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 14). Sixty-two of the 92 companies have market caps under US$100 million, with 24 under US$10 million. Online gaming companies dominate the top of the list.
  • Page 13 Market C ap (US D m) Tencent Holdings Ltd. 3785.1 Neteas e. com Inc . 3637.7 S handa Interac tiv e Enterta inment 2419.2 IA C/InterA ctiveCorp. S ohu.com Inc . 2202.1 Gia nt Interac tiv e Group, Inc . 1862.2 Modern Times G roup Mtg A B 1830. 3 Open Tex t Corp. 1688. 3 1671. 8 Changyou.c om L imited 1240.4 G ree, Inc . 970.2 Perf ec t World Co., Ltd. 954. 3 V alueClick Inc . Mix i, Inc . 700. 2 Chines e G amer International 577. 6 K ings oft Co. Ltd. 489.6 United Online Inc . 471.6 NEOWIZ G ames Corpora tion 456.3 356. 7 NetDra gon WebS oft, Inc . 332.8 G iga Media Ltd. 330.3 S hutterf ly, Inc . S K Communic a tions Co., Ltd. 315.2 The9 L imited 259.1 XING A G 204. 4 G ungHo Online Enterta inment, Inc . 158.8 G ama nia Digital Enterta inment Co., 158.8 148.7 DA DA S pA 141.2 CDC Corp. 136.6 OA O R B C Inf orma tion S y s tems 108.7 Y edangOnline Corp. Openw a ve S y s tems Inc . 105.0 A ctoz S oft Co., Ltd. 95.0 Tree.Com, Inc . 94.6 G a meOn Co Ltd. 94.0 83. 5 Moggle, Inc 78. 5 Digita lTow n, Inc . 78. 2 Cyberplex Inc . 77. 5 HanbitS oft, Inc . K a boos e Inc . 71. 2 TheS treet.c om, Inc . 65.5 J umpTV Inc . 62.7 B ey ond Commerc e, Inc . 55.0 S park Netw orks , Inc . 54.5 50.1 Eolith Co. Ltd. 47.8 G eoS entric Oyj 45.8 Ngi G roup Inc . 43.5 PhotoChannel Netw orks Inc . Webz en Inc . 34.0 Wiz z a rd S of tw are Corpora tion 29.2 S ites ea rc h Corpora tion 28.2 Northga te Technologies L imited 28.0 27.3 Frogs ter Intera ctive Pictures A G 27.2 Grav ity Co., Ltd 27.1 Dolphin Digital Media, Inc . 26.0 DXN Holdings B hd A Q Interac tiv e, Inc . 25.7 B roadWebA s ia Inc . 25.3 NeXplore Corpora tion 25.1 Fluid Mus ic Canada, Inc . 24.5 LookS ma rt, Ltd. 21.9 18.9 IA S Energy, Inc . 18.1 IdeaEdge, Inc . 17.0 J umbuc k Entertainment Pty Ltd. Ex tens ions , Inc . 14. 2 S pec trumDNA , Inc . 12. 2 A c c eleriz e New Media, Inc . 12. 0 UOMO Media, Inc 12. 0 Y nk K orea Inc . 11. 7 11. 4 Quepa s a Corp. 9.8 L ingo Media Corpora tion 8.9 Worlds . com Inc . 7.2 S NA P Interac tiv e, Inc . B right Things plc 6.6 CornerWorld Corpora tion 6.4 Ma gnitude Information S y s tems Inc . 6.1 MOK O.mobi L imited 4.7 4.0 L iv eWorld Inc . 3.9 is eemedia Inc . 3.2 B eta w av e Corpora tion 2.7 V OIS , Inc . Digita lPos t Interac tiv e, Inc . 1.3 B igs tring Corp. 1.1 Unis erve Communica tions Corp. 0.8 Wy nds torm Corpora tion 0.5 Z ipL oc al Inc . 0.3 0.3 The Parent Company 0.2 Fina nc ial Media Group, Inc . 0.1 Total S port Online A S A s s oc ia ted Media Holdings Inc . 0.1 China G atew a y Corpora tion 0.0 S NM G lobal Holdings 0.0 Dibz International, Inc . 0.0 S oc ial Media V enures , Inc . 0.0 0 500 1, 000 1,500 2,000 2,500 3,000 3,500 4,000 Figure 14. Market Cap Ranking Source. Capital IQ TEV/Revenue (LTM) averages 4.7x: The overall average TEV/Revenue (LTM) multiple for our group is 4.7x (up from 4.2x last week) (Figure 15). However, this is skewed by Gree (3633-TSE) at 39.8x and Beyond Commerce Inc. (BYOC-OTCBB) at 31.9x. The median is only 1.8x. Note that we exclude multiples greater than 50x. Thirty companies have multiples under 1.5x
  • 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 45. 0 (x) O AO R B C Information S y s tems # Companies O penwave S y s tems Inc . 0.0 5.0 10.0 15.0 20.0 25.0 Source. Capital IQ Source. Capital IQ U nis erve C ommunications C orp. A verage, 4.7 1 AIM N orthgate T echnologies L imited 30.0 26.6 T he P a rent C ompany TSE 15.1 S handa Interac tive E ntertainment Ltd. OTCBB 12.4 Figure 15. TEV/Revenue Ranking L iveWorld Inc . 5 21 3 SEHK T ree.C om, Inc. 7.5 1 IAC /InterAc tiveC orp. HLSE C DC C orp. 2 GTSM 6.9 6.2 G a meO n C o Ltd. 1 OTCNO ZipLoca l Inc . DXN Holdings B hd 2 XTRA Y nk K orea Inc . 2 AMEX Figures 16 & 17. TEV/Revenue Ranking (Exchange, Country) DADA S pA 2 ASX 4.6 4.1 2.9 2.2 Ac toz S oft C o. , Ltd. J umbuck E nterta inment P ty L td. TSX S pa rk N etwork s , Inc . 0.00.10.10.20.20.20.30. 4 0.50.50.50.60.60.8 0.90.90.91.0 NasdaqGS S N M G loba l Holdings 4 14 9 H anbitS oft, Inc . OTCPK K aboos e Inc . 7 KOSE S hutterfly , Inc . 5 TSXV 2.2 1.9 1.9 1.8 1.6 United O nline Inc . 1 G ungH o O nline E ntertainment, Inc. Average TEV/LTM Revenue - By Exchange OM 1.4 G a mania Digital E ntertainment C o., Ltd. 1 OSE V alueC lic k Inc . 1 CM 1.2 0.9 G igaMedia Ltd. Modern T imes G roup Mtg AB 1 KLSE C y berplex Inc . 5 NasdaqGM 0.6 0.4 is eemedia Inc . S NAP Intera ctive, Inc. S K C ommunica tions C o., Ltd. Y edangO nline C orp. 1.11.11. 11.11.21.21.21.31.4 1.41.61.8 1. 91.92.0 O pen T ex t C orp. (x) 2.4 NetDra gon WebS oft, Inc . T E V/L T M R evenue (x) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 P hotoC ha nnel Network s Inc. # Companies F luid Mus ic C a nada , Inc. United 1 (Figure 17). Eleven of the companies are Canadian (average 3.6x revenue). 26.6 E olith C o. Ltd. Kingdom Lingo Media C orporation 6 Japan 11.7 N E O WIZ G ames C orporation 1 Finland XIN G AG 6.9 K ings oft C o. Ltd. China 10 5.9 MO K O .mobi L imited United J umpT V Inc . 2.52.52.52.53.13.13.23.43.53. 5 40 States Acceleriz e New Media , Inc . 1 4.9 4.6 Norway S ohu.com Inc . T otal S port O nline AS 3 Taiwan Wiz z ard S oftware C orporation F rogs ter Intera ctiv e P ic tures AG 2 4.6 4.1 Germany Mix i, Inc . 4.34.44.64.85.05.0 DigitalP os t Intera ctive, Inc. 3.6 Canada 11 C ornerWorld C orporation 5.46.0 2 Australia G eoS entric O y j 6.9 South As s ociated Media Holdings Inc . 9 Korea C ha ngy ou.com L imited 8. 18.3 1 Average TEV/LTM Revenue - By Country C hines e G amer Interna tional 2.2 1.8 1.4 Sweden 11.1 T encent Holdings Ltd. 16.7 1 Italy 0.9 UO MO Media, Inc 19.4 18). Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 8.8x (vs. 7.6x last week). B right T hings plc 1 26.6 Malaysia B igs tring C orp. 29.8 Hong 1 B ey ond C ommerc e, Inc. 0.6 0.5 31. 9 Kong G ree, Inc . 39.8 Page 14 TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest 100x) is 9.7x LTM EBITDA (up from 9.0x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 34.1x multiple (Figure number of companies (21), trading at an average multiple of 12.4x (up from 6.0x last week). On a geographic basis, the TEV/EBITDA (LTM) averages 9.7x: The average multiple for the 34 companies with positive EBITDA (and multiples under United States has the most companies (40), trading at an average of 4.9x revenue (slightly up from 4.8x last week)
  • Page 15 T E V/L T M E B IT DA (x) 40.0 34.1 35.0 29.5 30.0 25.0 22.0 20.5 18.7 20.0 14.2 13.3 15.0 11.2 11. 7 9.9 10.3 10.5 10.5 A v era ge, 9.7 9.3 8. 9 8.7 8.8 8.5 8.5 10.0 7.3 6.8 6.1 5.5 5.6 5. 3 5.1 4.4 4.4 4. 5 5.0 2.5 2.0 1.2 0.5 0.0 NE O WIZ G ames C orporation J umbuck E nterta inment P ty Ltd. G ungHo O nline E ntertainment, Inc. G amania Digital E ntertainment C o., L td. C hines e G amer International Unis erve C ommunications C orp. Northgate T echnologies L imited DXN Holdings B hd C hangy ou.com L imited G ameO n C o Ltd. C DC C orp. S K C ommunica tions C o., Ltd. Modern T imes G roup Mtg AB S handa Interactive E ntertainment L td. United O nline Inc. S NAP Intera ctive, Inc. O pen T ex t C orp. XING AG S pa rk Network s , Inc. NetDragon WebS oft, Inc. G igaMedia Ltd. V alueC lic k Inc. IAC /InterActiveC orp. S ohu.com Inc. Mix i, Inc. C y berplex Inc. T enc ent Holdings Ltd. Y edangO nline C orp. K aboos e Inc. S hutterfly , Inc. K ings oft C o. Ltd. DADA S pA Actoz S oft C o. , Ltd. Figure 18. TEV/EBITDA Ranking Source. Capital IQ TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (21), trading at an average multiple of 6.1x. On a geographic basis, the United States has the most companies (40), trading at an average of 7.0x EBITDA (Figure 20). Eleven of the companies are Canadian (average 17.2x EBITDA). Average TEV/LTM EBITDA - By Country Average TEV/LTM EBITDA - By Exchange 20.0 35.0 29.5 18.0 17.2 30.0 16.0 25.0 14.0 12.2 20.0 12.0 12.0 (x) 16.115.2 11.4 10.5 (x) 10.0 15.0 15.0 9.9 8.7 11.4 9.9 8.0 7.4 7.0 8.7 8.2 7.6 10.0 6.8 6.1 6.0 5.3 4.4 4.4 2.5 5.3 4.4 5.0 4.0 1.2 0.2 2.0 1.2 0.0 2.5 OTCBB GTSM SEHK KOSE NasdaqGS TSE OSE RTS OM CM TSX XTRA KLSE AMEX BSE 0.0 TSXV ASX Germany Canada China Hong Japan United Malaysia India Italy South Korea Kong States Taiwan Australia Sweden # Companies 11 10 3 9 1 2 1 6 40 1 1 2 1 # Companies 5 3 2 4 7 2 1 14 5 1 21 1 1 2 2 1 1 Figures 19 & 20. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 17.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 17.0x LTM EPS (from 16.4x last week), led by Shutterfly Inc’s (SFLY-NASDAQ) 74.2x multiple (Figure 21). Thirteen of the companies have P/E multiples under 10x. The median is just 12.7x.
  • Page 16 P /E L T M (x) 80.0 74.2 68.9 70.0 60.0 50.0 45. 6 40.0 34.0 34.5 29.5 30.0 23. 7 20.2 21. 2 A verage, 17.0 15. 8 16.8 20.0 13.6 14.2 14.3 15. 1 11.8 11.8 12.7 13. 1 9.7 10. 6 9.5 8. 7 7.4 10.0 5.1 4.9 3. 3 3. 0 2.5 1. 7 1. 8 1.8 0.0 NE O WIZ G ames C orporation J umbuc k E ntertainment P ty L td. G amania Digital E ntertainment C o. , L td. C hines e G amer International G iant Interac tive G roup, Inc . G ameO n C o L td. Northgate T ec hnologies L imited DXN Holdings B hd C hangy ou.c om L imited Modern T imes G roup Mtg AB Neteas e.c om Inc . S handa Interac tive E ntertainment L td. S NAP Interac tive, Inc . Ngi G roup Inc . O pen T ex t C orp. T heS treet. com, Inc . Worlds . c om Inc . G igaMedia Ltd. NetDragon WebS oft, Inc . S park Network s , Inc . S ohu. c om Inc . C y berplex Inc . IAC /InterAc tiveC orp. Mix i, Inc . T enc ent Holdings Ltd. XING AG P erfec t World C o., Ltd. Y edangO nline C orp. K ings oft C o. L td. S hutterfly , Inc. DADA S pA Ac toz S oft C o. , L td. Figure 21. P/E Ranking Source. Capital IQ P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (21), trading at an average multiple of 6.4x. On a geographic basis, the United States has the most companies (40), trading at an average of 31.0x earnings (Figure 23). Eleven of the companies are Canadian (average 25.1x EPS). Average P/E - By Exchange Average P/E - By Country 35.0 80.0 31.0 68.9 70.0 30.0 60.0 25.0 50.0 25.1 21.2 20.1 (x) 20.0 40.0 24.8 23.3 19.1 21.2 (x) 19.1 30.0 16.8 17.3 16.8 15.0 15.8 13.1 20.0 8.7 10.8 7.4 8.7 6.4 10.0 5.1 7.4 10.0 4.9 5.1 4.9 0.0 5.0 OTCBB NasdaqGM GTSM SEHK TSE NasdaqGS KOSE CM OM XTRA TSX AMEX KLSE ASX 0.0 Germany United Canada Japan China Malaysia Italy South Korea States Taiwan Australia Sweden 5 2 3 2 5 14 7 4 2 1 2 21 1 1 # Companies 40 11 2 3 6 9 10 1 2 1 1 # Companies Figures 22 & 23. P/E Ranking (Exchange, Country) Source. Capital IQ
  • Page 17 UPCOMING EVENTS E arnings Calendar C ompany D ate & T ime Qu arter C onf C all D etails T heS treet. com, I nc. (Na s da qG M: TS C M) T uesda y , May 05, 2009 4: 30 P M (E D T ) Q 1 2009 NA V a lueClic k Inc . (N a sda qG S : V C L K ) T uesda y , May 05, 2009 4: 30 P M (E D T ) Q 1 2009 818-575-4677 U nited O nline Inc . (N a sda qG S : UN TD ) T uesda y , May 05, 2009 2: 00 P M (P D T ) Q 1 2009 877-681-3374 Open T ext C orp. (Na s da qG S : O TE X ) W ednes da y, M a y 06, 2009 5:00: 00 P M (E D T ) Q 3 2009 800-733-7571 P hotoC ha nnel N etworks I nc. (TS X V : P N) W ednes da y, M a y 13, 2009 4:30 P M (E DT ) Q 2 2009 888-300-8196 Figure 24. Earnings Calendar Source. Company reports
  • Page 18 C omparable C ompany Analys is > W eb 2 .0 P ric e P erformanc e C ompa ny Na me C ur rency T ic ker E x change U S D Ma rket C ap ($m) C urrent Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 We ek Acce le riz e N ew Me dia, Inc. US D A CL Z OT C B B 1 2.0 0.4 4 -10. 2% 2 5.7 % 25 .7% 10 .0% -38 .9% -43. 6% Actoz S of t C o., L td. KR W A 052 790 KO SE 9 5.0 1 4,15 0.0 0 -4.1 % 2 9.2 % 25 .8% 65 .1% 75.8 % -11. 6% AQ Inte ractive , Inc. JPY 3 838 TSE 2 5.7 4 6,95 0.0 0 -0.3 % 2 5.2 % 34 .1% -0.9% -79 .2% -80. 0% As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .1 0.0 0 0.0 % 7.1% -7 0.0% -8 1.3 % 36.4 % -97. 0% B igstring Corp. US D B S GC OT C B B 1 .1 0.0 2 53.3 % 3 1.3 % 23 .5% -1 6.0 % -86 .9% -89. 5% B e tawave Corpora tion US D B W AV OT C B B 3 .2 0.1 1 0.9 % -30. 6% -4 4.5% -2 8.4 % -68 .3% -73. 6% B e yond Commerce, Inc. US D B Y OC OT C B B 5 5.0 1.3 3 -10. 7% -4.3 % 51 .1% -3 1.8 % -45 .7% -59. 7% B right T hings plc GBP A IM:B G T AI M 6 .6 0.0 2 36.4 % 7 0.5 % 77 .2% 56 .3% -25 .0% -35. 7% B roa dW ebAs ia Inc. US D B W BA OT C P K 2 5.3 0.3 0 -33. 8% -33. 8% -7 0.5% -7 7.9 % -86 .8% -89. 7% C DC C orp. US D C H IN .A N as da qG S 14 1.2 1.3 2 11.9 % 1 3.8 % 80 .8% 3 .1% -61 .1% -65. 3% C ha ngyou. com Limite d US D C Y OU N as da qG S 1,6 71. 8 3 2.6 2 21.7 % NM NM NM NM -2.6 % C hina G ate wa y C orpora tion US D CGWY OT C B B 0 .0 0.0 0 1 00. 0% 1 00.0 % 0 .0% -8 6.7 % -96 .7% -95. 6% C hine s e G amer International TWD G TS M:3 083 GT S M 57 7.6 22 4.5 0 11.7 % 2 5.1 % 14 8.6% 17 9.9% 99.6 % -4.9 % C ornerW orld C orporation US D CWR L OT C B B 6 .4 0.1 0 -16. 7% -28. 6% -7 5.6% -5 0.0 % -80 .4% -87. 5% C yberplex Inc. C AD T S X:CX TSX 7 8.2 1.7 2 39.8 % 7 9.2 % 34 1.0% 30 9.5% 1 02. 4% 13.9 % D ADA S pA E UR C M :DA CM 14 8.7 6.8 8 17.6 % 4 6.3 % 22 .8% -1 0.9 % -52 .3% -57. 5% D XN Holdings B hd MY R DXN KL SE 2 6.0 0.4 0 23.4 % 3 1.7 % 11 .3% 12 .9% -22 .5% -28. 8% D ibz Inte rnational, Inc. US D DIB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0% D igitalP ost Inte ra ctive , Inc. US D DG L P OT C B B 1 .3 0.0 2 -10. 5% 7 0.0 % -1 5.0% -5 1.4 % -91 .1% -93. 9% D igitalT own, Inc. US D DG T W OT C B B 7 8.5 2.9 0 45.0 % 1 6.0 % -3 .3% 16 .0% -1. 7% -52. 5% D olphin Digital Me dia, Inc. US D DP DM OT C B B 2 7.1 0.5 5 3.8 % -8.3 % -1 9.1% -3 8.9 % NM -51. 3% E olith C o. L td. KR W A 041 060 KO SE 5 0.1 88 5.0 0 33.1 % 7 1.8 % 71 .8% 63 .9% -11 .5% -15. 3% E xte ns ions , Inc. US D E XT I OT C P K 1 4.2 0.1 5 -25. 0% -25. 0% 18 5.7% 50 .0% 0.0 % -85. 1% F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .2 0.0 0 -18. 9% -57. 1% -8 5.0% -9 9.3 % -99 .3% -99. 7% F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 2 4.5 0.5 5 37.5 % -8.3 % 37 .5% 37 .5% NM -73. 0% F rogs te r Interactive P icture s AG E UR FR G XT R A 2 7.3 8.7 0 -4.0 % 2 7.8 % 76 .1% 11 5.9% 1 02. 3% -12. 1% G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 15 8.8 3 4.5 5 7.5 % 3.8% 60 .3% 14 3.3% 6.0 % -6.5 % G a me On C o L td. JPY 3 812 TSE 9 4.0 9 6,60 0.0 0 5.0 % 7.3% -2 0.5% 46 .4% -13 .8% -40. 9% G e oS e ntric O yj E UR G E O1V H LS E 4 7.8 0.0 4 0.0 % 0.0% 33 .3% 0 .0% -42 .9% -42. 9% G iant Intera ctive G roup, Inc. US D GA NYS E 1,8 62. 2 8.2 4 -3.1 % 1 3.3 % 44 .8% 29 .2% -47 .1% -52. 1% G iga Media Ltd. US D G IG M N as da qG S 33 2.8 6.1 6 -8.7 % 7.7% -7 .2% 1 .1% -62 .2% -69. 0% G ravity C o., L td US D G RV Y N as da qG M 2 7.2 0.9 8 8.9 % 1 6.7 % 36 .5% 22 .5% -34 .7% -51. 0% G ree, Inc. JPY T S E :36 32 TSE 1,2 40. 4 5,52 0.0 0 -2.3 % -1.3 % -8 .9% NM NM -12. 4% G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 15 8.8 13 7,70 0.0 0 -0.9 % 8.5% 29 .2% 44 .0% -55 .7% -68. 3% H anbitS oft, Inc. KR W A 047 080 KO SE 7 7.5 4,48 5.0 0 -0.2 % 3 8.9 % 43 .1% 54 .1% -0. 3% -36. 0% IAC /InterActiveC orp. US D I ACI N as da qG S 2,4 19. 2 1 6.0 3 0.7 % 0.8% 8 .8% -6.5% -62 .8% -68. 3% IAS E nergy, Inc. US D I AS C .A OT C B B 1 8.9 0.2 7 8.0 % 5 75.0 % 98 0.0% 21 7.6% 8.0 % -22. 9% IdeaE dge, Inc. US D O TC B B :ID AE OT C B B 1 8.1 0.4 3 -3.4 % 1 1.8 % 6 .2% -7 7.0 % -41 .8% -85. 0% is ee media Inc. C AD IEE T S XV 3 .9 0.0 9 -10. 0% -10. 0% 12 .5% -3 0.8 % -66 .7% -74. 3% J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 7.0 0.4 7 0.0 % -7.0 % -3 .1% 9 .4% -24 .4% -29. 0% J umpT V Inc. C AD T S X:J T V TSX 6 2.7 0.6 5 18.2 % 1 2.1 % 47 .7% 14 .0% -15 .6% -49. 2% K a boos e Inc. C AD T S X:K AB TSX 7 1.2 0.6 0 1.7 % 5.3% 39 .5% 17 .6% -40 .0% -52. 0% K ings oft Co. Ltd. HKD 3 888 S E HK 48 9.6 3.5 3 -7.1 % 9.3% 29 .3% 76 .5% 1.4 % -18. 1% Lingo Media Corporation C AD T S XV :LM T S XV 9 .8 0.9 0 0.0 % 8.4% -1 4.3% -2 4.4 % -50 .0% -55. 0% Live World Inc. US D L VW D OT C P K 4 .0 0.1 3 85.7 % 0.0% 16 0.0% 0 .0% -50 .0% -68. 3% LookS mart, Ltd. US D L OOK N as da qG M 2 1.9 1.2 8 -5.3 % 2.6% -5 .0% -2 6.3 % -71 .0% -73. 3% M agnitude Information S ys tems Inc. US D M AG Y OT C B B 6 .1 0.0 1 -6.7 % -6.7 % -4 6.2% 16 .7% -30 .0% -53. 3% M ixi, Inc. JPY 2 121 TSE 70 0.2 45 3,00 0.0 0 -6.2 % 2 2.4 % -1 1.2% -2 1.4 % -46 .0% -52. 6% M ode rn Times G roup Mtg AB SE K MT G B OM 1,8 30. 3 22 0.0 0 3.8 % 3 7.9 % 59 .7% 12 .2% -50 .3% -51. 6% M oggle , Inc US D M MOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 % M OK O.mobi L imited AU D MKB AS X 4 .7 0.0 7 -12. 9% -18. 7% 85 .0% 54 .2% 80.5 % -26. 0% N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 45 6.3 6 0,10 0.0 0 1.0 % 3 0.7 % 15 9.1% 36 7.7% 76.8 % -18. 1% N etDragon W ebS oft, Inc. HKD 7 77 S E HK 35 6.7 5.2 3 18.3 % 2 6.9 % 92 .3% 56 .1% -57 .5% -61. 5% N ete as e.com I nc. US D NT E S N as da qG S 3,7 85. 1 3 0.7 6 1.7 % 1 2.8 % 61 .1% 39 .5% 32.3 % -2.3 % N eXplore Corpora tion US D N XP C OT C P K 2 5.1 0.4 5 -40. 0% -26. 2% -2 5.0% -4 7.1 % NM -69. 0% N gi G roup Inc. JPY 2 497 TSE 4 5.8 3 6,80 0.0 0 1.4 % 7 5.2 % -3 .9% -4 8.1 % -71 .3% -78. 0% N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 8.0 3 9.8 0 -12. 7% 2 7.2 % 1 .1% -4 9.8 % -90 .5% -91. 5% Open T e xt Corp. US D O TE X N as da qG S 1,6 88. 3 3 2.5 3 -3.0 % -3.1 % -6 .7% 12 .6% -9. 6% -16. 8% Openwave S ys tems Inc. US D O PW V N as da qG S 10 5.0 1.2 6 5.9 % 1 0.5 % 55 .6% 55 .6% -37 .3% -42. 2% P e rfect W orld C o., Ltd. US D P W RD N as da qG S 97 0.2 1 8.3 9 9.6 % 2 1.9 % 26 .9% -0.3% -40 .4% -45. 1% P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 3.5 1.5 0 -3.2 % -2.6 % -9 .1% -3 3.3 % -59 .5% -63. 9% Quepa s a C orp. US D Q PSA N as da qC M 1 1.4 0.9 0 3.4 % -9.1 % -5 2.6% -5 8.7 % -67 .3% -74. 0% OA O R B C Information S ys tems US D R BC I R TS 13 6.6 0.9 9 51.5 % 1 59.2 % 21 7.7% -3 4.3 % -88 .3% -89. 2% S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,6 37. 7 5 2.4 3 10.8 % 2 2.3 % 75 .9% 10 5.9% 46.5 % -2.7 % S hutte rf ly, Inc. US D S F LY N as da qG S 33 0.3 1 3.1 2 29.4 % 3 1.9 % 10 0.0% 74 .2% 4.7 % -13. 0% S K C ommunications Co., Ltd. KR W A 066 270 KO SE 31 5.2 9,72 0.0 0 -2.8 % 2 9.4 % 31 .4% 91 .3% -35 .2% -50. 7% S N AP Inte ra ctive , Inc. US D S T VI OT C B B 7 .2 0.6 7 3.1 % -10. 7% -3 2.3% 48 .9% -15 .2% -38. 0% S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 -50. 0% 14 00. 0% 20 0.0% -9 8.3 % -99 .9% -99. 9% S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.0 1 -93. 3% -99. 2% -9 9.2% -9 9.7 % NM -99. 8% S ohu. com Inc. US D S OH U N as da qG S 2,2 02. 1 5 7.5 5 13.9 % 2 7.9 % 45 .6% 4 .9% -24 .1% -37. 1% S ite s earch C orporation US D S TPC OT C B B 2 8.2 3.5 0 -30. 0% NM NM NM NM -30. 0% S park N etworks , Inc. US D L OV AM E X 5 4.5 2.6 5 17.8 % 1 5.2 % 15 .7% -1 1.4 % -39 .8% -43. 0% S pectrumDN A, Inc. US D S P XA OT C B B 1 2.2 0.2 5 25.0 % 6 6.7 % 15 0.0% 4 .2% NM -58. 3% T encent Holdings L td. HKD 7 00 S E HK 16, 034 .1 6 9.0 0 6.6 % 2 0.2 % 42 .6% 25 .5% 20.6 % -4.2 % T he P arent C ompany US D K IDS .Q OT C P K 0 .3 0.0 1 4.0 % -31. 6% -5 0.0% -9 8.5 % -99 .4% -99. 6% T he 9 L imited US D NC TY N as da qG S 25 9.1 9.6 6 4.9 % -30. 6% -3 5.4% -2 8.3 % -55 .8% -66. 1% T he S treet.com, Inc. US D T S CM N as da qG M 6 5.5 2.1 4 -8.9 % 6.5% -2 5.4% -4 1.4 % -71 .4% -73. 6% T otal S port Online A S N OK T OS O OT C N O 0 .1 0.0 3 0.0 % -25. 0% -2 5.0% -4 0.0 % -70 .0% -70. 0% T ree.C om, Inc. US D TR EE N as da qG M 9 4.6 9.4 8 62.3 % 7 9.9 % 13 7.0% 30 0.0% NM -14. 6% U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 0 .8 0.0 4 -20. 0% -20. 0% 0 .0% -5 0.0 % -88 .6% -91. 1% U nited Online Inc. US D UNTD N as da qG S 47 1.6 5.6 8 19.6 % 1 4.7 % -1 .9% -1 6.5 % -49 .8% -54. 6% U OMO Media , Inc US D U OMO OT C B B 1 2.0 0.1 4 1 33. 3% 4 0.0 % 75 .0% -1 2.5 % -68 .2% -82. 5% V a lueC lick Inc. US D V CL K N as da qG S 95 4.3 1 1.0 0 13.5 % 1 5.3 % 72 .7% 63 .7% -42 .9% -47. 6% V O IS , Inc. US D V OIS OT C B B 2 .7 0.3 2 6.7 % 3 9.1 % -5 7.3% -5 7.3 % NM -94. 3% W ebze n Inc. US D W ZE N N as da qG M 3 4.0 2.8 7 3.2 % 4 2.1 % 10 8.9% 18 4.2% 5.5 % -35. 5% W iz za rd S of twa re Corpora tion US D W ZE AM E X 2 9.2 0.6 2 12.5 % 3 7.6 % -1 5.2% -3 4.8 % -70 .5% -73. 7% W orlds .com Inc. US D W DDD OT C B B 8 .9 0.1 7 0.0 % -10. 5% -2 2.7% -2 9.2 % -55 .3% -57. 5% W ynds torm C orporation US D W YND OT C B B 0 .5 0.0 3 -66. 7% -66. 7% -7 6.0% -8 5.0 % -92 .5% -96. 5% XIN G AG E UR O 1B C XT R A 20 4.4 2 9.9 0 0.4 % 2.0% 0 .5% 24 .0% -23 .5% -35. 9% Y e dangOnline Corp. KR W A 052 770 KO SE 10 8.7 8,81 0.0 0 -10. 4% 5.4% 21 .0% 46 .8% -25 .7% -29. 8% Y nk K orea Inc. KR W A 023 770 KO SE 1 1.7 6,03 0.0 0 26.9 % 6 2.1 % 56 .2% 2 .7% -57 .2% -60. 8% ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0 % -66. 7% -7 5.0% -5 0.0 % -96 .4% -97. 1% H igh 1 33. 3% 14 00. 0% 98 0.0% 36 7.7% 1 02. 4% 13.9 % Low -93. 3% -99. 2% -9 9.2% -9 9.7 % -99 .9% -99. 9% A vera ge 493.4 4.8% 34.0% 38.7% 14.8% -35.2% -53.9% M edian 1.2 % 1 2.5 % 23 .1% 1 .9% -45 .7% -53. 9% Figure 25. Price Performance Source. Capital IQ
  • Page 19 C omparable C ompany Analys is > Web 2.0 Valuation Multiples P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM C ompany Name S ec tor C ountry E xc hange Tic ker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V Accelerize New Media, Inc. Direct Marketing United S tates OT C B B AC LZ 12.0 4. 3x - - - - - - Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 95.0 0. 9x - 4.5x - 15.1x - 1.7x AQ Intera ctive, Inc. G aming J apan TS E 3838 25.7 - - - - - - 0.4x As s ociated Media Holdings Inc. Mobile United S tates OT C P K AS MH 0.1 8. 1x - - - - - - B igs tring C orp. Ins tant Mes s aging United S tates OT C B B BS GC 1.1 29.8x - - - - - - B eta wave C orporation Media United S tates OT C B B B W AV 3.2 - - - - - - 0.3x B eyond C ommerce, Inc. S ocial Networking United S tates OT C B B B Y OC 55.0 31.9x - - - - - - B right T hings plc S ocial Networking United K ingdom AIM AIM:B G T 6.6 26.6x - - - - - - B roa dW ebAs ia Inc. S ocial Networking United S tates OT C P K BWBA 25.3 - - - - - - - C DC C orp. G aming Hong K ong Na s daqG S C HIN.A 141.2 0. 5x 0.5x 10.5x 7.1x - 30.0x - C ha ngyou.com L imited G aming C hina Na s daqG S CYOU 1,671.8 8. 3x - 14.2x - 14.3x - - C hina G ateway C orporation Mobile United S tates OT C B B CGWY 0.0 0. 0x - - - - - - C hines e G a mer International G aming T aiwan GTS M G T S M:3083 577.6 11.1x - 22.0x - 29.5x - 9.9x C ornerW orld C orporation C ontent United S tates OT C B B CWR L 6.4 6. 0x - - - - - - C yberplex Inc. Advertis ing C anada TS X T S X:C X 78.2 1. 6x 1.1x 18.7x 12.1x 15.8x 15.6x 16.2x DADA S pA S ocial Networking Italy CM C M:DA 148.7 0. 9x - 5.3x - 8.7x - - DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 26.0 0. 6x - 4.4x - 4.9x - 0.5x Dibz International, Inc. S NS Apps United S tates OT C P K DIB Z 0.0 - - - - - - - Digita lP os t Interactive, Inc. C ontent United S tates OT C B B DG LP 1.3 5. 4x - - - - - - Digita lT own, Inc. S ocial Networking United S tates OT C B B DG T W 78.5 - - - - - - - Dolphin Digita l Media, Inc. S ocial Networking United S tates OT C B B DP DM 27.1 - - - - - - - E olith C o. Ltd. G aming S outh K orea K OS E A041060 50.1 2. 5x - - - - - - E xtens ions , Inc. C ontent United S tates OT C P K E XT I 14.2 - - - - - - - F inancial Media G roup, Inc. Direct Marketing United S tates OT C B B F NG P 0.2 - - - - - - - F luid Mus ic C ana da, Inc. Media United S tates TS X T S X: F MN 24.5 2. 5x 1.8x - - - - 1.9x F rogs ter Interactive P ictures AG G aming G ermany XT R A FR G 27.3 5. 0x - - - - - 2.5x G ama nia Digita l E ntertainment C o., Ltd. G aming T aiwan GTS M 6180 158.8 1. 2x - 8.5x - 20.2x - 2.2x G ameOn C o L td. G aming J apan TS E 3812 94.0 0. 5x - 2.0x - 9.7x - 1.3x G eoS entric Oyj Mobile F inland HL S E G E O1V 47.8 6. 9x - - - - - 4.9x G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,862.2 - - - - 1.8x 13.5x 0.4x G iga Media Ltd. G aming T aiwan Na s daqG S G IG M 332.8 1. 4x 1.4x 5.6x 5.7x 10.6x 10.9x 3.0x G ra vity C o., Ltd G aming S outh K orea Na s daqG M GR VY 27.2 - - - - - - - G ree, Inc. S ocial Networking J apan TS E T S E :3632 1,240.4 39.8x - - - - - 19.4x G ungHo Online E ntertainment, Inc. Media J apan OS E 3765 158.8 1. 2x - 6.8x - - - - HanbitS oft, Inc. G aming S outh K orea K OS E A047080 77.5 1. 1x - - - - - 2.4x IA C /InterActiveC orp. Media United S tates Na s daqG S IAC I 2,419.2 0. 5x 0.5x 10.3x 4.8x 16.8x 36.2x 1.1x IA S E nergy, Inc. V ideo C anada OT C B B IAS C .A 18.9 - - - - - - - IdeaE dge, Inc. S ocial Networking United S tates OT C B B OT C B B : IDAE 18.1 - - - - - - 13.2x is eemedia Inc. C ontent C anada T S XV IE E 3.9 1. 8x - - - - - 2.1x J umbuck E nterta inment P ty Ltd. S ocial Networking Aus tralia AS X AS X:J MB 17.0 0. 9x - 2.5x - 7.4x - 1.9x J umpT V Inc. V ideo C anada TS X T S X:J T V 62.7 3. 5x - - - - - 3.3x K aboos e Inc. C ontent C anada TS X T S X:K AB 71.2 1. 1x 1.0x 11.2x 6.3x - - - K ings oft C o. Ltd. G aming C hina S E HK 3888 489.6 3. 4x - 8.8x - 12.7x - 3.0x Lingo Media C orporation Learning C anada T S XV T S XV :LM 9.8 3. 1x - - - - - - LiveW orld Inc. S ocial Networking United S tates OT C P K LV W D 4.0 0. 3x - - - - - 1.8x LookS ma rt, Ltd. Direct Marketing United S tates Na s daqG M LOO K 21.9 - - - - - - 0.8x Magnitude Information S ys tems Inc. S ocial Networking United S tates OT C B B MAG Y 6.1 - - - - - - - Mixi, Inc. S ocial Networking J apan TS E 2121 700.2 5. 0x - 13.3x - 34.0x - 5.5x Modern T imes G roup Mtg AB Media S weden OM MT G B 1,830.3 1. 4x 1.3x 8.7x 10.6x 5.1x 12.9x - Moggle, Inc G aming United S tates OT C B B MMOG 83.5 - - - - - - - MOK O.mobi Limited S ocial Networking Aus tralia AS X MK B 4.7 3. 5x - - - - - 3.8x NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 456.3 3. 1x - 11.7x - 23.7x - 14.0x NetDragon W ebS oft, Inc. G aming C hina S E HK 777 356.7 2. 5x - 5.5x - 11.8x - 1.9x Neteas e.com Inc. G aming C hina Na s daqG S NT E S 3,785.1 - - - - 2.5x 15.3x 0.7x NeXplore C orporation C ontent United S tates OT C P K NXP C 25.1 - - - - - - - Ngi G roup Inc. Media J apan TS E 2497 45.8 - - - - 13.6x - 0.7x Northgate T echnologies Limited Direct Marketing India BSE 590057 28.0 0. 2x - 1.2x - 1.8x - - Open T ext C orp. C ollaboration C anada Na s daqG S OTE X 1,688.3 2. 4x 2.1x 9.3x 8.1x 34.5x 13.6x - Openwave S ys tems Inc. Mobile United S tates Na s daqG S OP W V 105.0 0. 1x 0.1x - 1.5x - 34.1x 1.4x P erfect W orld C o., L td. G aming C hina Na s daqG S PWRD 970.2 - - - - 1.7x 9.0x 0.5x P hotoC hannel Networks Inc. Digital Imaging C anada T S XV T S XV :P N 43.5 2. 5x 1.7x - 5.4x - 23.1x 9.2x Quepas a C orp. S ocial Networking United S tates Na s daqC M QP S A 11.4 - - - - - - 8.5x OAO R B C Information S ys tems Media R us s ia R TS RBCI 136.6 0. 0x - 0.2x - - - - S handa Interactive E ntertainment Ltd. G aming C hina Na s daqG S S NDA 3,637.7 0. 2x 1.2x 0.5x 2.7x 3.0x 16.8x 1.4x S hutterfly, Inc. Digital Imaging United S tates Na s daqG S S F LY 330.3 1. 1x 1.1x 8.5x 7.0x 74.2x - 1.9x S K C ommunications C o., L td. S earch S outh K orea K OS E A066270 315.2 1. 9x - 20.5x - - - - S NAP Intera ctive, Inc. Dating United S tates OT C B B S TVI 7.2 1. 9x - 6.1x - 9.5x - 4.7x S NM G loba l Holdings Media United S tates OT C P K S NMN 0.0 1. 1x - - - - - - S ocia l Media V enures , Inc. S ocial Networking United S tates OT C P K S MV I 0.0 0. 0x - - - - - - S ohu.com Inc. G aming C hina Na s daqG S S OHU 2,202.1 4. 4x 3.8x 10.5x 8.7x 14.2x 12.9x 6.8x S ites earch C orpora tion S ocial Networking United S tates OT C B B S TPC 28.2 - - - - - - 40.1x S park Networks , Inc. S ocial Networking United S tates AME X LOV 54.5 1. 0x - 4.4x - 13.1x - - S pectrumDNA, Inc. Media United S tates OT C B B S P XA 12.2 - - - - - - 18.4x T encent Holdings Ltd. P orta l C hina S E HK 700 16,034.1 16.7x - 34.1x - 45.6x - 18.6x T he P arent C ompany Media United S tates OT C P K K IDS .Q 0.3 0. 2x - - - - - - T he9 Limited G aming C hina Na s daqG S NC T Y 259.1 - - - - 0.8x 10.5x 0.1x T heS treet.com, Inc. Media United S tates Na s daqG M TS CM 65.5 - - - - 68.9x - 0.7x T otal S port O nline AS Media Norwa y OT C N O T OS O 0.1 4. 6x - - - - - - T ree.C om, Inc. P orta l United S tates Na s daqG M TR E E 94.6 0. 4x 0.4x - - - - 1.4x Unis erve C ommunications C orp. S ocial Networking C anada T S XV T S XV :US S 0.8 0. 1x - 29.5x - - - - United Online Inc. Media United S tates Na s daqG S UNT D 471.6 1. 2x 0.8x 5.1x 3.3x - 7.9x - UOMO Media, Inc Media C anada OT C B B UOMO 12.0 19.4x - - - - - - V alueC lick Inc. Media United S tates Na s daqG S V C LK 954.3 1. 3x 1.5x 7.3x 6.4x - 18.8x 9.3x V OIS , Inc. S ocial Networking United S tates OT C B B V O IS 2.7 - - - - - - 6.0x W ebzen Inc. G aming S outh K orea Na s daqG M W ZE N 34.0 - - - - - - 0.0x W izzard S oftware C orporation P odca s ting United S tates AME X W ZE 29.2 4. 8x - - - - - - W orlds .com Inc. C ontent United S tates OT C B B W DDD 8.9 - - - - 3.3x - - W ynds torm C orporation C ontent United S tates OT C B B W Y ND 0.5 - - - - - - - XING AG S ocial Networking G ermany XT R A O 1B C 204.4 3. 2x - 9.9x - 21.2x - 5.5x Y edangO nline C orp. G aming S outh K orea K OS E A052770 108.7 2. 0x - 8.9x - 11.8x - 5.5x Y nk K orea Inc. G aming S outh K orea K OS E A023770 11.7 0. 8x - - - - - - ZipLocal Inc. Directory C anada T S XV T S XV :ZIP 0.3 0. 6x - - - - - - High 16,034.1 39.8x 3.8x 34.1x 12.1x 74.2x 36.2x 40.1x Low 0.0 0. 0x 0.1x 0.2x 1.5x 0.8x 7.9x 0.0x Average 493.4 4.7x 1.3x 9.7x 6.4x 17.0x 17.6x 5.4x Median 38.8 1. 8x 1.2x 8.6x 6.3x 12.7x 14.5x 2.3x Figure 26. Valuation Comparison Source. Capital IQ
  • Page 20 C omparable C ompany A nalys is > W eb 2.0 Su mmary b y C ountry C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA % 40 31, 268.6 3,126. 9 3, 744. 3 1,774. 4 41. 0% U nited S tates C hina China U nited S ta tes C hina C hina C anada 11 U nited S tates 5, 003.2 S weden 1,830. 3 C hina 3, 555. 3 S weden 268. 2 Aus tral ia 37. 2% C hina 10 J a pan 2, 264.9 Japan 377. 5 S weden 1, 662. 4 U nited S ta tes 240. 1 T aiwa n 29. 7% S outh K orea 9 C anada 1, 989.8 Ta iwa n 356. 4 C a na da 951. 1 C a na da 186. 1 J a pa n 26. 1% J a pa n 6 S weden 1, 830.3 Ca na da 180. 9 S outh K orea 584. 3 J apan 130. 5 I ndia 17. 6% T a iwa n 3 S outh K orea 1, 175.8 Ita ly 148. 7 J a pa n 495. 8 T a iwan 86. 4 S weden 16. 1% A ustra lia 2 T a iwa n 1, 069.3 Hong K ong 141. 2 H ong K ong 428. 1 S outh K orea 66. 7 I ta ly 16. 0% G ermany 2 G erma ny 231.6 R us sia 136. 6 T aiwan 351. 7 I taly 36. 1 M a la ys ia 13. 3% N orway 1 I ta ly 148.7 S outh K orea 130. 6 I ta ly 226. 2 I ndia 23. 9 R uss ia 13. 1% 1 141.2 125. 1 144. 1 18. 8 4.4% H ong K ong H ong K ong United S tates R uss ia R uss ia H ong K ong 1 136.6 115. 8 135. 8 18. 8 -2. 8% F inla nd R uss ia G erma ny I ndia H ong K ong C anada 1 47.8 47. 8 78. 6 11. 7 -7. 4% I ta ly F inland Finland M a la ys ia G erma ny S outh K orea 1 28.0 28. 0 52. 0 10. 5 -10.2% U nited K ingdom I ndia India G ermany M alays ia U nited S ta tes 1 26.0 26. 0 14. 3 2. 7 -10.4% I ndia M alays ia Malay sia Aus tra l ia Aus tralia N orway 1 21.7 10. 9 5. 8 -1. 0 -19.1% S weden Aus tra lia Australia F inla nd N orway G ermany 1 6.6 6. 6 2. 1 -1. 7 #DI V /0! R us sia U nited K ingdom United K ingdom N orwa y U nited K ingdom U nited K ingdom 1 0.1 0. 1 0. 2 -13. 1 #DI V /0! M a la ys ia N orway Norway U nited K ingdom F inland F inla nd G rand To tal 92 G rand T otal 45,390.2 G rand Total 493.4 G rand T otal 12,432.2 G r and T otal 2,859.1 G rand T otal 7.4% Figure 27. Comparison by Country Source. Capital IQ C omparable C o mpan y A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pan y Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA % 21 18, 968.6 5,626. 8 1, 662. 4 1,641. 0 61. 9% OT C B B N a sdaqG S S E HK OM N a sdaqG S NYS E N a s daqG S 14 S E HK 16, 880.4 NY S E 1,862. 2 N asdaqG S 472. 0 S E HK 599. 1 AS X 37. 2% OT C P K 9 TSE 2, 106.0 OM 1,830. 3 S EHK 418. 5 OM 268. 2 GT S M 32. 5% K OS E 7 NYS E 1, 862.2 Nas daqG S 1,354. 9 NYS E 233. 6 NYS E 144. 6 TSE 27. 7% TSE 5 OM 1, 830.3 TS E 421. 2 CM 226. 2 TSE 110. 3 S E HK 24. 1% N a s daqG M 5 K OS E 1, 114.5 G TS M 368. 2 R TS 144. 1 K OS E 63. 7 N a sdaqG S 20. 3% T S XV 5 GT SM 736.5 K OS E 159. 2 BSE 135. 8 GT S M 40. 4 OS E 17. 8% TSX 4 O T CB B 383.3 OS E 158. 8 OS E 113. 2 CM 36. 1 BSE 17. 6% S E HK 3 N a sdaqG M 243.3 CM 148. 7 N asdaqG M 85. 3 BSE 23. 9 OM 16. 1% 2 236.6 136. 6 80. 6 20. 2 16. 0% A ME X TSX RTS GTS M OS E CM 2 231.6 115. 8 78. 6 18. 8 13. 3% XT R A XT RA XT R A K LS E R TS K LS E 2 158.8 59. 1 76. 5 11. 7 13. 1% ASX OS E TS X TSE X TR A R TS 2 148.7 48. 7 74. 8 10. 5 4.3% GT S M CM Nas daqG M K OS E K LS E OT CB B 1 136.6 47. 8 33. 9 6. 3 3.4% OT C NO R TS HL S E TSX AM E X K OS E 1 83.7 41. 8 31. 7 2. 7 -6. 1% HLS E AM E X AME X AM E X AS X T S XV 1 69.0 28. 0 26. 0 -1. 0 -10.4% NY S E O T CP K BSE XT R A OT CNO OT CNO 1 58.4 26. 0 21. 0 -1. 7 -14.7% CM T S XV K LS E OT CP K AI M TSX 1 47.8 18. 3 9. 9 -6. 0 -16.5% BSE HLS E O TC B B T S XV TSX OT CP K 1 28.0 11. 7 7. 1 -10. 1 -19.1% N a s daqC M BSE TS X V AS X T S XV XT RA 1 26.0 11. 4 5. 8 -11. 4 -26.5% OS E K LS E Nas daqC M H LS E N a sdaqC M N a sdaqG M 1 21.7 10. 9 2. 1 -13. 1 #DI V /0! A IM AS X AS X OT CN O HLS E HLS E 1 11.4 7. 7 2. 0 -15. 9 #DI V /0! OM N a sdaqC M O TC P K OT CB B N a sdaqG M AM E X 1 6.6 6. 6 0. 2 -26. 5 #DI V /0! R TS AI M AIM AI M OT CP K N a sdaqC M 1 0.1 0. 1 0. 1 -52. 5 #DI V /0! K LS E O T CN O O TC NO N asdaqC M OT CB B AI M 92 45, 390.2 493. 4 148. 0 2,859. 1 7.4% Gr an d To tal G rand T otal G ran d To tal G rand T otal G rand T otal G rand T otal Figure 28. Comparison by Exchange Source. Capital IQ
  • Page 21 Financing - Last Three Months (US$ m) Month C ompany Name C ountry Angel/S eed Debt financ ing PIP E S eries A S eries B S eries C S eries D S eries E G rand Total F eb-09 Twitter US A 35. 0 35. 0 S ynthas ite S outh Africa 20. 0 20. 0 Tremor Media US A 18. 0 18. 0 Offerpal Media US A 15. 0 15. 0 Imagini UK 13. 5 13. 5 E mergent G ame Technologies US A 12. 5 12. 5 Outbrain Is ra el 12. 0 12. 0 Tvtrip F rance 9. 0 9. 0 Tongxue C hina 6. 0 6. 0 Oodle US A 5. 6 5. 6 TextDigger US A 4. 3 4. 3 OneS pot US A 4. 2 4. 2 Mixpo C ana da 4. 0 4. 0 F etchDog US A 4. 0 4. 0 Virtual F airground Netherlands 4. 0 4. 0 7 B illion P eople US A 3. 0 3. 0 F amilyL ink.com US A 2. 9 2. 9 Whis tleB ox US A 2. 3 2. 3 Mendeley UK 2. 0 2. 0 Outright US A 2. 0 2. 0 Tvinci Is ra el 1. 6 1. 6 F iltrbox US A 1. 4 1. 4 MMO L ife Netherlands 1. 3 1. 3 C ake F inancial US A 1. 3 1. 3 fav.or.it UK 0. 7 0. 7 F eb-09 Total 13.3 24.8 76.4 58.6 12.5 185.5 Mar-09 K aixin001.com C hina 20. 0 20. 0 Vidyo US A 15. 0 15. 0 B uzznet US A 12. 5 12. 5 L endingC lub US A 12. 0 12. 0 S endMe Inc. US A 12. 0 12. 0 Auditude US A 10. 5 10. 5 G lam Media US A 10. 0 10. 0 S uperS ecret US A 10. 0 10. 0 G oViral UK 8. 8 8. 8 G reys tripe US A 5. 5 5. 5 OMG P OP US A 5. 0 5. 0 Apture US A 4. 1 4. 1 S imulmedia US A 4. 0 4. 0 Tynt C ana da 3. 9 3. 9 AnyS ource Media US A 3. 2 3. 2 P ixazza US A 3. 1 3. 1 B it.ly US A 2. 0 2. 0 Hunc h US A 2. 0 2. 0 S ports C ompos ite DE US A 2. 0 2. 0 AdultS pace US A 1. 3 1. 3 Myngle Netherlands 1. 3 1. 3 33Acros s US A 0. 8 0. 8 Three Melons Argentina 0. 6 0. 6 Mar-09 Total 1.3 1.3 0.6 41.1 50.3 43.0 12.0 10.0 159.5 Apr-09 C ollective Media US A 20. 0 20. 0 G OOM R adio F rance 16. 0 16. 0 Marin S oftware US A 13. 0 13. 0 The R ubicon P roject US A 8. 0 5. 0 13. 0 F reeWheel US A 12. 0 12. 0 C ellufun US A 10. 0 10. 0 C onductor Inc. US A 10. 0 10. 0 S canS c out US A 8. 1 8. 1 DoubleTwis t US A 5. 0 5. 0 IMS hopping US A 4. 7 4. 7 S oc ialtext US A 4. 5 4. 5 Mixercas t US A 4. 1 4. 1 S oundC loud G ermany 3. 3 3. 3 TubeMogul US A 3. 0 3. 0 Tribal Nova C ana da 2. 5 2. 5 Tripbas e US A 2. 0 2. 0 S oc ialcas t US A 1. 4 1. 4 B randtology S ingapore 1. 4 1. 4 S can & Target F rance 1. 3 1. 3 J odange US A 1. 2 1. 2 F oodis ta US A 0. 6 0. 6 Apr-09 Total 10.6 8.0 45.3 52.5 16.1 12.0 144.5 Figure 29. Financing, Last Three Months Source. Company reports
  • Page 22 C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity C ompany HQ W ebs ite Des criptio n U nited S ta tes www. ba ta nga .c om B atanga, Inc. opera tes a s a media a nd enterta inment c ompany for His pa nic s. I t offers online entertainment, suc h as Internet ra dio, mus ic B atanga videos , artist interviews, a nd L atin-centric enterta inment c ontent, a s well a s s ocia l network ing. T he compa ny publishes ma ga z ines, a s well as promotes a nd executes cus tom and s ponsor driven music -oriented ev ents . I t a lso owns a d network ta rgeting His panic s. T he company wa s founded in 1999 a nd is ba s ed in C oral G ables , Florida with an a dditional offic e in N ew Y ork. As of Dec ember 2, 2005, B a ta nga , I nc . operates a s a subs idiary of Hi spa nic M edia, I nc. U nited S ta tes www. cellufun. com C ellufun, LL C opera tes as a n ad s ponso red mobile ga ming portal. The company’ s portal provides free enterta inment content, a s well a s C ellu fun , LL C cas ua l, connected, a nd multiplay er games for ex isting a nd next-generation W eb-ena bled mobile phones . It a l so offers free s ingle-pla yer games, a s well as multi-player vers ions on a s ubs cription ba s is . The c ompany ena bles subs cribers to persona liz e their ga ming profile; sa ve scores ; crea te tea ms; partic ipa te in tournaments ; a nd sha re informa tion rela ted to tips , trick s, a nd bra gging rights . C ellufun wa s founded in 2005 and is bas ed in New Y ork, N ew Y ork. U nited S ta tes www. collective-media . com C ollective Media , I nc. opera tes a s a n online a dvertising network tha t specializ es in audienc e ta rgeting a nd optimiz ation s olutions for C ollec tive Media, Inc . publishers a nd a dvertis ers in the United S ta tes. I t provides con text, beha v ior, re-ta rgeting, demogra phic, a nd geogra phic ta rgeting; a nd dashboard, a reporting interfac e that pres ents a nd ma nipula tes ad performa nce da ta generated by ca mpa igns. T he compa ny a ls o offers a network of online news s ites , a s well as enterta inment, s ports , a nd health si tes . In addition, it provides bra nd a dvertis ing a nd direct ma rketing services . T he company wa s founded in 2005 a nd is bas ed in N ew Y ork, New Y ork . U nited S ta tes www. doubletwis t. com doubleTwist C orpora tion des igns a nd develops entertai nment s oftwa re a pplica tions . T he company applica tions s hares a nd s y nchroniz es do ubleT wis t Corpo ration pictures , video, and audio to medi a dev ices . I t offers doubleT wis t desk top, a n a pplica tion tha t ena bles c lients to tra ns fer, sha re, a nd sy nc persona l media ; a nd Twis t me! , a network applica tion tha t a llows us ers to share photos, video, and audio files from the c lient’s profile pages. doubleTwist C orpora tion wa s founded in 2007 a nd is ba s ed in S an F ra nc isco, Ca li fornia with an a dditiona l office in O s lo, Norway. U nited S ta tes www. freewheel. tv F reeW heel Media , Inc . offers online video a dvertis ing s olutions . I t offers the M onetiz a ti on R ights M a nagement (MR M) suite to sy ndicate F reewheel video. F reeW heel's platform s erves video a nd c ompa nion a ds . I ts clients include c ontent owners, dis tributors , a nd third-pa rty a d s ellers a nd a d network sa. The compa ny rec ipes, food, compaooking. R better to a dvertis ers a nd nd edited .in hewik i in a ny is bas ed in S a n numerousa lifornia F oodis ta is W iki pedia for helps media a nd c nies s ell eci pes are contributed a a gencies T a c ompa n a ttempt to avoid M ateo, C repeats U nited S ta tes www. foodista .com F o odis ta of the s ame rec ipe. The s ite ta k es a structured da ta a pproa ch a ki n to I MD B , where every ingredient, c ooking technique, utens il, and dis h links to Medi a other mention on the ssta tions . I t broa dc asts music , wea ther, news , a nd music news through I nternet. In addition, the c ompany G o O n every opera tes digita l radio ite. F rance www. goomradio.c om G o On Media opera tes a community for interaction between the c reators of ra di os. T he c ompa ny was founded in 2007 a nd is ba sed in S aint C loud, F ra nc e. U nited S ta tes www. imshopping. com IM S hopping helps ma k e finding products eas ier by employ ing rea l people who sea rc h out dea ls , rea d reviews a nd s ha re this v alua ble IM s h oppin g informa tion with you a nd the greater community . T he compa ny is ba sed S anta C la ra , C a lifornia a nd is bac k ed by S K T elecom V entures . U nited S ta tes www. marinsoftwa re.com Ma rin S oftware I ncorporated provides pa id sea rch ma na gement a pplic ation to adv ertis ers a nd a gencies . It offers Ma rin S earch M a rketer, a Marin S o ftware hosted search ma na gement a pplic ation tha t address es the work flow, a naly sis , a nd optimiza tion needs of profess ional s ea rc h ma rk eters , as well a s provides a n interfa ce to create, mana ge, a nd optimize paid sea rc h ca mpaigns. T he company als o prov ides support services . Mari n S oftware I ncorporated was founded in 2006 a nd is ba s ed in S an F ra nc isco, C a lifornia . U nited S ta tes www. mixerc a st.com Mix erca s t, I nc . provides s oc ial mark eting a pplic ation pla tform that ena bles c ontent pub lishers a nd a dvertis ers to rea ch a udienc es a cross the Mixerc as t, In c . soc ia l W eb. It offers MC ast P latform that includes a s et of tools and s ervi ces to c reate, distribute, monetiz e, a nd track va rious types of social ma rk eting a pplic a tions, inc luding widgets, ma s h-ups, F a c ebook a nd M yS pac e apps, and portab le c ontent or bra nd experienc es. M ixerc ast, Inc . wa s formerly k nown a s Na noc ast L a bs, I nc . The compa ny wa s founded in 2005 and is ba s ed in S a n M a teo, C alifornia . F rance www. s cana ndta rget. c om S ca n & Target provides s oftwa re a s a serv ice solution for the ana lys is and filtering of tex t user genera ted content. I t offers its a na lys is S c an & Target solution for va rious a pplica tions, s uc h a s modera ting and monetiz ing us er generated content, routing and qua lity c ontrol, v alida ting a ds a nd listings , a nd populating cus tomer relations hip ma na gement da ta bases . T he compa ny provides its s olution in various platforms , suc h as Internet, mobile, a nd intera ctive televis ion for pub lishers of onl ine communities, modera ting s ervice providers , a nd suppliers of technology solutions . S ca n & Ta rget wa s founded in 2007 and is ba s ed in P utea ux, F rance. U nited S ta tes www. s cans cout. com S ca nS cout, Inc. opera tes as a n online video advertising network. I t s erves publis hers , advertise rs , a nd ad network s . The company was S c anS co ut, In c. founded in 2005 a nd is ba s ed in B oston, M ass a chus etts with additiona l offic es in New Y ork a nd L os Angeles . U nited S ta tes www. s ocialca st. com S oci a lcas t provides soc ial network ing pla tforms a nd s olutions for both consumer-fa cing clients and enterpris e cus tomers . The compa ny wa s S ocialcas t founded in 2005 a nd is ba s ed in Irv ine, C al ifornia . U nited S ta tes www. s ocialtext.com S oci a ltext Inc orpora ted develops enterpris e s oc ia l s oftware. T he company focus es on offering c olla bora tion platform tha t a llows S ocialtext In corporated organizations to c ollaborate. It offers P eople, whic h ena bles users to integra te s oc ial network ing with enterprise colla bora tion; W eblog tha t supports colla bora tiv e a nd ongoing conv ersa tions a mong collea gues ; W orks pa c e, an enterpris e wiki for sea rc hing informa tion and people; a nd S ig na ls tha t a mplifies, cla rifies, and complements other c ollabora tion ac tiv ities , a s well a s prov ides a medium for information s ha ring. The c ompa ny a ls o provides D ashboa rd, which aggrega tes content from S oc ialtex t wik i pa ges , the W eb, a nd enterprise sy stems; an d S oci a lC alc s preadsheets tha t inc lude informa tion from other sprea ds heets or works pace pa ges . The compa ny wa s founded in 2002 a nd is based in P a lo Alto, C a lifornia . G erma ny s oundc loud.c om S oundC loud L td. provides an online audio pla tform for recei ving, s ending, and distributing music for a rtis ts , record la bels , a nd other music S oundClou d L td. profes s iona ls. T he compa ny was founded in 2007 a nd is ba sed in B erlin, G erma ny . U nited S ta tes www. rubiconproject.com R ubic on P roject, I nc. , an a dv ertis ing technology c ompa ny , provides online a dv ertis ing solutions to W eb publishers a nd a d networks . I t also R ubicon P roject, Inc . offers a d network optimiz a tion serv ices , a s well a s ad qua lity protection progra ms . In a ddition, the company prov ides solutions to s top unwa nted a ds in tra ck s by protecting W eb publis hers. T he compa ny was founded in 1998 a nd is ba sed in Los Angeles, Ca lifornia. U nited S ta tes www. tripba se. com Tripbas e is a tra vel webs ite that gives you unbiased recommenda tions a bout where to go o n y our next trip based on wha t y ou lik e. T ripbas e C a nada www. triba lnova. com/en/ Triba l Nov a , I nc. dev elops a nd ma rk ets Internet s ites , online ga mes , intera ctive televis ion programs , a nd cellula r telephony c ontent for T ribal No va, In c. children. It produc es a n arra y of ga mes ranging from educ a tiona l pres chooler online ga mes , s uch a s Ca i llou to multiplayer online role pla yi ng game for teens, suc h as Ma gi Na tion. The compa ny opera tes at the internationa l level in E urope and N orth America . T riba l Nova , Inc . wa s founded in 2004 a nd is ba s ed in Montrea l, Ca nad a. U nited S ta tes www. tubemogul. c om TubeM ogul, I nc. opera tes as a n online video ana lytics a nd dis tribution company worldwide. It focuses on prov iding v ideo publis hing tools . T ubeMogul, Inc. The c ompa ny provides a single point for deploy ing uploads to the video s haring s ites , a nd a nalytics on who, wha t, a nd how v ideos are being viewed. It serv es content produc ers, media companies , a d a ge ncies , digita l consulta nts, record la be ls, film s tudios , politicians , c onsumer products orga niz a tions , and corporations. The compa ny wa s founded in 2006 a nd is ba sed in B erkeley , C alifornia. Figure 30. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
  • Page 23 RELEVANT DISCLOSURES APPLICABLE TO: NONE LIST OF DISCLOSURE TERMS: None applicable. 1. ANALYST CERTIFICATION Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) . Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550 www.researchcapital.com