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Brief Real Estate Technology Market Update & Ecosystem

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July 2013 Real Estate Technology Market Update and Provider Ecosystem. …

July 2013 Real Estate Technology Market Update and Provider Ecosystem.

Category coverage:
• Property Management
• Data/Information Services
• Rent/Lease Payment Automation
• Investment Management
• IWMS & Facilities Management
• Facilities Design/AEC
• Commercial Construction
• Residential Construction
• Property Search/Lead Gen
• Home Services Lead Gen
• Broker CRM/Marketing
• Mortgage Origination/Finance

Published in: Technology, Business

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  • 1. 1 Brief Real Estate Technology  Market Update & EcosystemMarket Update & Ecosystem Kris Beible, Director of Business Development S f E i G LLC © Software Equity Group, LLC 2013 Software Equity Group, LLC 858 509­2800 www.softwareequity.com
  • 2. 2Leaders in Real Estate Technology M&A has received a growth equity  investment from © Software Equity Group, LLC 2013
  • 3. 3Disclaimer The information contained in this Report is obtained from sources we believe to  be reliable, but no representation or guarantee is made about the accuracy or  completeness of such information, or the opinions expressed herein. Nothing in  this Report is intended to be a recommendation of a specific security or  company or intended to constitute an offer to buy or sell, or the solicitation of an  offer to buy or sell, any security. Software Equity Group LLC may have an interest  in one or more of the securities or companies discussed herein.  Financial data  provided by Capital IQ. This Report may not be reproduced in whole or in part without the expressed  prior written authorization of Software Equity Group, L.L.C. © Software Equity Group, LLC 2013
  • 4. 4Real Estate Technology Ecosystem (Abbreviated) PaymentsPaymentsData/Information ServicesData/Information ServicesProperty MgmtProperty Mgmt Investment MgmtInvestment MgmtPaymentsPaymentsData/Information ServicesData/Information ServicesProperty MgmtProperty Mgmt Investment MgmtInvestment Mgmt ll R id i l C iR id i l C iF ili i  D i /AECF ili i  D i /AECll ConstructionCommercial ConstructionCommercial Construction Residential ConstructionResidential ConstructionFacilities Design/AECFacilities Design/AECIWMS & Facilities MgmtIWMS & Facilities Mgmt Home Services Lead GenHome Services Lead Gen Broker CRM/MarketingBroker CRM/Marketing Mortgage Orig. / FinanceMortgage Orig. / FinanceProperty Search/Lead GenProperty Search/Lead Gen © Software Equity Group, LLC 2013 Company  Acquired Public  Company
  • 5. 5Public Companies: Real Estate Technology Market Enteprise LTM LTM LTM Revenue LTM Gross LTM EBITDA EV/ EV/ Company Ticker Category Cap. (mm) Value (mm) Revenue EBITDA Growth Margin Margin Rev EBITDA Angie's List, Inc. (Nasdaq:ANGI) Home Services Lead Gen $1,404.4 $1,356.3 $176.9 -$43.0 70.9% 72.3% - 7.7x - Autodesk, Inc. (Nasdaq:ADSK) Facilities Design / AEC $7,957.9 $6,615.8 $2,294.0 $469.3 0.8% 89.2% 20.5% 2.9x 14.1x Aveva Group plc (LSE:AVV) Facilities Design / AEC $2,568.1 $2,280.0 $333.4 $104.3 12.4% 92.7% 31.3% 6.8x 21.9x CoreLogic, Inc. (NYSE:CLGX) Data/Information Services $2,484.2 $3,130.5 $1,606.7 $340.6 16.4% 46.2% 21.2% 1.9x 8.3x CoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2xCoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2x Ellie Mae, Inc. (NYSE:ELLI) Mortgage Orignation / Finance $648.3 $587.8 $111.8 $27.8 69.9% 77.2% 24.8% 5.3x 21.2x Move, Inc. (Nasdaq:MOVE) Property Search / Lead Gen $516.7 $486.5 $205.7 $15.3 8.1% 78.4% 7.4% 2.4x 28.8x Nemetschek AG (XTRA:NEM) Facilities Design / AEC $611.0 $543.1 $233.7 $55.0 6.6% 52.1% 23.5% 2.3x 9.9x RealPage, Inc. (Nasdaq:RP) Property Management $1,532.7 $1,510.0 $336.7 $53.8 22.5% 60.4% 16.0% 4.5x 28.1x Textura Corporation (NYSE:TXTR) Commercial Construction $641.1 $655.3 $27.3 -$15.1 106.2% 75.0% - 24.0x - Trulia Inc (NYSE:TRLA) Property Search / Lead Gen $1 104 8 $900 4 $79 9 -$4 2 87 8% 86 3% - 11 3x -Trulia, Inc. (NYSE:TRLA) Property Search / Lead Gen $1,104.8 $900.4 $79.9 -$4.2 87.8% 86.3% - 11.3x - Zillow , Inc. (Nasdaq:Z) Property Search / Lead Gen $2,138.2 $1,959.2 $133.0 $8.1 71.3% 88.9% 6.1% 14.7x 241.3x zipRealty Inc. (Nasdaq:ZIPR) Broker CRM/Marketing $65.5 $54.5 $73.1 -$0.3 -10.2% 43.9% - 0.7x - High: $7,957.9 $6,615.8 $2,294.0 $469.3 106.2% 92.7% 31.3% 24.0x 241.3x Low: $65.5 $54.5 $27.3 -$43.0 -10.2% 43.9% 6.1% 0.7x 8.3x A $1 966 6 $1 843 9 $461 3 $82 4 39 3% 71 6% 18 5% 7 3 48 8 Top 5: EV/Revenue Average: $1,966.6 $1,843.9 $461.3 $82.4 39.3% 71.6% 18.5% 7.3x 48.8x Median: $1,404.4 $1,356.3 $205.7 $27.8 22.5% 75.0% 20.5% 5.3x 21.9x p 10.0x 20.0x 30.0x Median EV/Rev: 11.3x 0.0x Median Growth Rate: 71.3% Company Angie's List, Inc. CoStar Group Textura Corp. Trulia, Inc. Zillow, Inc. TTM Rev Growth 70.9% 47.8% 106.2% 87.8% 71.3% EV/Rev 7 7x 10 1x 24 0x 11 3x 14 7x © Software Equity Group, LLC 2013 EV/Rev 7.7x 10.1x 24.0x 11.3x 14.7x *Public Company data sourced July 2013: CapitalIQ
  • 6. 6M&A: Real Estate Technology Aggregate M&A Volume: Annual 48 42 43 sactions Aggregate M&A Volume: Quarter 13 14 12 14 11 ions 14 25 # of RM&A Trans 2 5 10 6 10 2 5 10 10 2 7 8 8 11 of M&A Transacti 2009 2010 2011 2012 TTM July 2013  2009 2010 2011 2012 2013 #  Q1 Q2 Q3 Q4 M&A Volume by Category: Annual 9 8 9 9 8 4 3 6 3 4 7 3 7 7 5 7 5 6 5 4 5 3 3 4 4 M&A Transactions 1 0 1 1 0 2 0 1 0 0 2 1 0 1 2 2 1 1 2 1 1 1 2 1 11 0 1 1 0 22 0 0 1 Property  Management Data/Information  Services Payments Investment  Management IWMS & Facilities  Management Facilities Design /  AEC Commercial  Construction Residential  Construction Property Search /  Lead Gen  Home Services  Lead Gen Broker  CRM/Marketing Mortgage Orig. /  Finance # of M © Software Equity Group, LLC 2013 2009 2010 2011 2012 TTM July 2013 *Data sourced July 2013: CapitalIQ
  • 7. 7Most Acquisitive Companies (1/2009 – Present) Top 3 Most Active Buyers Viewpoint  Construction  # of Acquisitions DIY Real Estate Solutions Yardi, 13 MRI S/W, 3 Textura, 3 Trimble, 3 Construction  S/W, 3 Energy Billing Systems P t R h P t Multifamily  Services  Group Peak Insurance Advisors RealPage, 10CoStar  Group, 3 Ellie Mae, 3 / Level One Property Research Partners Zillow, 6 Reply!, 4 Autodesk, 3 Level One Evergreen Solutions , HomeAway, 5 Accruent, 4 CoreLogic, 4 MarketLeader , 4 © Software Equity Group, LLC 2013 *Data sourced July 2013: CapitalIQ
  • 8. 8Top 10 Real Estate Technology M&A by Enterprise Value (EV) EV/  llBuyer TypeBuyer TargetDate EV (mm) EV/Rev EV/  EBTIDA 4/27/2011 $654.2 8.2x 30.3x Public Public Seller Type 5/8/2013 $314.3 6.6x ‐ Public Public 1/11/2011 $270.0 4.7x 11.8x Public Public 3/24/2011 $231.8 6.1x 11.5x Public Private 3/22/2012 $145.0 ‐ ‐ Private Public Subsidiary 4/12/2011 $140.5 5.6x 20.8x Public Private/ / 12/1/2009 $128.0 1.7x ‐ Private Public Subsidiary 8/22/2011 $74.9 4.5x ‐ Public Private 11/3/2010 Level One, Inc. $62.0 2.7x ‐ Public Private © Software Equity Group, LLC 2013 3/15/2011 $51.0 ‐ ‐ Public Private *Data sourced July 2013: CapitalIQ
  • 9. 9Top 10 Real Estate Technology M&A by EV/Revenue EV/  Buyer TypeBuyer TargetDate EV (mm) EV/Rev EV/  EBITDA Seller Type 5/2/2012 $37.4 102.4x ‐ Public Private 7/29/2011 $14.8 65.1x ‐ Public Private 7/23/2012 $15.5 10.3x ‐ Public Private 4/27/2011 $654.2 8.2x 30.3x Public Public 5/8/2013 $314.3 6.6x ‐ Public Public 3/24/2011 $231.8 6.1x 11.5x Public Private/ / 4/12/2011 $140.5 5.6 20.8x Public Private 1/11/2011 $270.0 4.7x 11.8x Public Public 8/22/2011 $74.9 4.5x ‐ Public Private © Software Equity Group, LLC 2013 8/15/2011 $25.2 3.2x ‐ Public Private *Data sourced July 2013: CapitalIQ
  • 10. 10Summary • Broad ecosystem of players • Sector public companies currently performing well & quite acquisitive • Strong post recession rebound in M&A volume • General sector buyer acquisition appetite highy q pp g Top 5 M&A Volume: 2009 - Present 1. Property Management (30 deals) Top 5 M&A Volume: TTM 1. Commercial Construction (9 deals)1. Property Management (30 deals) 2. Broker CRM/Marketing (25 deals) 3. Commercial Construction (23 deals) 4. IWMS & Facilities Management (21 deals) 1. Commercial Construction (9 deals) 2. Broker CRM/Marketing (8 deals) 3. IWMS & Facilities Management (5 deals) 4. Property Management, Property Search /  5. Property Search / Lead Gen (20 deals) Lead Gen, Mortgage Orig. / Finance (4  deals) © Software Equity Group, LLC 2013
  • 11. 11 d h l h l &ATo discuss the real estate technology ecosystem, M&A  transactions and/or your business, please contact me at: P: 858.509.2800P: 858.509.2800 Email: kbeible@softwareequity.com © Software Equity Group, LLC 2013