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SEG March Flash Report

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  • 1. Software Equity Group Flash Report Software Equity Group Flash Report Select M&A Transactions and Valuations and Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet Companies by Product Category
  • 2. • Industry leading boutique investment bank founded in LEADERS IN SOFTWARE M&A Industry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking: • Strategic exit • Growth capital We Do Deals. Growth capital • Buyout • Inorganic growth via acquisition • Buy and sell-side mentoring • Fairness opinions and valuationsFairness opinions and valuations • Sell-side client revenue range: $5 - 75 million • Buy-side clients include private equity firms and NASDAQ, NYSE and foreign exchange listed companies • Clients span virtually every software technology, product category, delivery model and vertical market • Global presence providing advice and guidance to more th 2 000 i t d bli i th h t USthan 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel • Strong cross-functional team leveraging transaction, operating, legal and engineering experience • Unparalleled software industry reputation and track record. • Highly referenceable base of past clients Copyright © 2014 by Software Equity Group, LLC
  • 3. EXTENSIVE GLOBAL REACH Current Sell-side Representation • SEG currently represents software companies in the United States, Canada, France, Recent Sell-side Representation Germany, Australia & Saudi Arabia • In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa SEG Research Distribution • SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports areq y p y p distributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries. Copyright © 2014 by Software Equity Group, LLC p ,
  • 4. Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and ABOUT SOFTWARE EQUITY GROUP q y p y g gy , g advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions. Our value proposition is unique and compelling We are skilled and accomplished investment bankers with extraordinary software internet and technologyOur value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value. P h t i t t th l ti hi ' b ilt d th i d t t ti j S ft E it G i k d t d b bli lPerhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine.g To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports. Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, .kbeible@softwareequity.com,2800-509)858Beible, Director, Business Development (Krisplease contact CONTACT INFORMATION: Software Equity Group, L.L.C. 12220 El Camino Real, Suite 320 San Diego, CA 92130 www softwareequity comwww.softwareequity.com p: (858) 509-2800 The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ. Copyright © 2014 by Software Equity Group, LLC This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C. Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.
  • 5. List of Commonly Used Acronyms CRM Customer Relationship Management EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization ERP Enterprise Resource Planning EV Enterprise Value FCF Free Cash Flow FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates NASDAQ National Association of Securities Dealers Automated Quotation System PLM Product Lifecycle ManagementPLM Product Lifecycle Management R&D Research and Development S&P Standard & Poor's SaaS Software-as-a-Service SEG Software Equity Group SG&A Selling, General, & AdministrativeSG&A Selling, General, & Administrative SW Software TTM Trailing Twelve Month YoY Year-over-Year YTD Year-to-date Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 6. Additions: Varonis Systems, Inc. VRNS Software Business Intelligence & Storage, Data Management, and Integration SEG Index Changes Company Ticker Index Category Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 7. Table of Contents SEG Software Index Select Software Industry M&A Transactions SEG SaaS Index SEG Internet Index Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 8. SEG Software Index Select Software Industry M&A Transactions SEG SaaS Index SEG Internet Index Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 9. Select February 2014 Software Industry M&A Transactions Date Announced Target Target TTM Revenue ($mm) Enterprise Value ($mm) EV/ Revenue EV/ EBITDA Feb-28-2014 Dentsu Aegis Network Ltd. explido GmbH und Co. KG - - - - Feb-28-2014 Nippon Television Holdings, Inc. (TSE:9404) Hulu Japan LLC - - - - Feb-28-2014 FrontStream Payments, Inc. Truist, Inc. - - - - Feb-27-2014 R.R. Donnelley & Sons Company (NasdaqGS:RRD) MultiCorpora R&D Inc. - - - - Feb-27-2014 Melbourne IT Ltd. (ASX:MLB) NetRegistry Group Limited - $45.2 - 8.4x Feb-27-2014 DTS Corp. (TSE:9682) YDC Corporation $32.6 - - - Feb-26-2014 Square, Inc. BookFresh - - - - Feb-26-2014 BulkLoadsNow, LLC CoopsOpen.com - - - - Feb-26-2014 Broadridge Financial Solutions, Inc. (NYSE:BR) Emerald Connect, Inc. - $60.0 - - Feb-26-2014 Workday, Inc. (NYSE:WDAY) Identified, Inc. - - - - Feb-26-2014 Didit LLC LVM Group, Inc. - - - - Feb-26-2014 @WalmartLabs Pasplore, Inc. - - - - Feb-26-2014 The CannaBusiness Group, Inc. (OTCPK:CBGI) The NorCal Connection, LLC - - - - Feb-26-2014 RCS & RDS S.A. Vianet - - - - Feb-26-2014 Hart-Boillot, LLC Winans Creative, LLC - - - - Feb-25-2014 Game Show Network, LLC Bash Gaming - - - - Feb-25-2014 EffTec International, Inc. (OTCPK:EFFI) BitBank - - - - Feb-25-2014 SimCorp A/S (CPSE:SIM) Equipos Limited - $17.2 - - Feb-25-2014 Questex Media Group LLC JAZD Markets, Inc. - - - - Feb-25-2014 JWT Warszawa Sp. z o.o. Lemon Sky Spolka z ograniczona odpowiedzialnoscia S.K.A. $3.7 - - - Acquirer p y p g p Feb-25-2014 Motopia Limited (ASX:MOT) Mobiware Pty Ltd. - $0.3 - - Feb-25-2014 Hal Leonard Corporation Noteflight LLC - - - - Feb-25-2014 Stamats Communications, Inc. The Thorburn Group - - - - Feb-25-2014 AmbiCom Holdings, Inc. (OTCPK:ABHI) Veloxum Corporation - - - - Feb-24-2014 Private Investor(s) Benchmark Communications Limited - - - - Feb-24-2014 Oracle Corporation (NYSE:ORCL) Blue Kai, Inc. - - - - Feb-24-2014 International Business Machines Corporation (NYSE:IBM) Cloudant, Inc. - - - - Feb-24-2014 SK Intertainment Inc. Fleshbot, LLC - - - - Feb-24-2014 Monster Worldwide, Inc. (NYSE:MWW) Gozaik LLC - - - - Feb-24-2014 INFOR, INC. GRASP Systems International, Inc. - - - - Feb-24-2014 CloudFlare, Inc. Jaal, LLC - - - - Feb-24-2014 KYOCERA Crystal Device Corporation Kyocera Corp., Crystal Components Business - - - - Feb-24-2014 BlueSpire Strategic Marketing Martino & Binzer - - - - Feb-24-2014 Infibeam Digital Entertainment Private Limited ODigMa - $5.0 - - Feb-24-2014 Greenway Medical Technologies, Inc. PeopleLYNK - - - - Feb-24-2014 Vook, Inc. RightsCube, Inc. - - - - Feb-24-2014 Rovi Corporation (NasdaqGS:ROVI) Veveo, Inc. - $69.0 - - Feb-23-2014 DDB Mudra Group 22feet communications pvt.ltd. - - - - Feb-23-2014 Good Technology, Inc. BoxTone Inc. - - - - Feb-21-2014 Apple Inc. (NasdaqGS:AAPL) Burstly, Inc. - - - - Feb-21-2014 Blue Logic Digital LLP Cool Pink Limited - - - - Feb-21-2014 Medina Capital Cryptzone Group AB (publ) (OM:CZON B) $4.4 $12.3 2.9x - Feb-21-2014 3Q Digital, LLC iSearch Media, Inc. - - - - Feb-21-2014 Google Inc. (NasdaqGS:GOOG) Spider.io - - - - Feb-20-2014 OTOY, Inc. AppSlingr, Inc. - - - - Feb-20-2014 Private Investor(s) codeMantra, LLC - - - - Feb-20-2014 Aurea Software Generix Group, ERP GCE business $20.3 - - - Feb-20-2014 Astellia SA (DB:4AS) Ingenia Telecom, S.L. - - - - Feb-20-2014 eBay Inc. (NasdaqGS:EBAY) Phisix, Inc. - - - - Feb-20-2014 BBVA Compass Bancshares, Inc. Simple Finance Technology Corp. - $117.0 - - Feb-20-2014 Criteo SA (NasdaqGS:CRTO) TEDEMIS SA - $28.8 - - Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 10. Select February 2014 Software Industry M&A Transactions Date Announced Target Target TTM Revenue ($mm) Enterprise Value ($mm) EV/ Revenue EV/ EBITDA Feb-20-2014 Citiservi Europe, S.L. Tenders One Technologies, S.L. - - - - Feb-20-2014 Lanyon, Inc. The Active Network, Inc., ACTIVE Network Business Solutions Group - - - - Feb-19-2014 Bellefield Systems, LLC AIRTIME-Manager, Inc. - - - - Feb-19-2014 Project Goth, Inc. Alive, Inc. - - - - Feb-19-2014 Impact Telecom Inc. Citessentials, LLC - - - - Feb-19-2014 Shopzilla, Inc. Connexity LLC - - - - Feb-19-2014 Synopsys Inc. (NasdaqGS:SNPS) Coverity, Inc. - $350.0 - - Feb-19-2014 Sprinklr Inc. Dachis Corporation, Inc. - - - - Feb-19-2014 3D Systems Corp. (NYSE:DDD) Digital PlaySpace, Inc. - - - - Feb-19-2014 Meltwater Ghana B.V. Findwise Search Center of Excellence AB - - - - Feb-19-2014 MSL Solutions Limited Golf Link Partners Pty Ltd - - - - Feb-19-2014 FSX Interlinked, Inc. Interlinked, Inc. - - - - Feb-19-2014 Clearswift Limited Microdasys Europe GmbH - - - - Feb-19-2014 Funnel Malaysia Sdn. Bhd. Mobcast Global Inc., EnterCrews PC Online Game Business - - - - Feb-19-2014 Facebook, Inc. (NasdaqGS:FB) WhatsApp Inc. - $16,374.2 - - Feb-18-2014 TearLab Corporation (NasdaqCM:TEAR) American Optometric Association, Ocuhub Business Unit - - - - Feb-18-2014 Wyless Inc. ASPIDER Solutions B.V. - - - - Feb-18-2014 CUSTOpharm Regulatory Services, Inc. Aspire eCTD, LLC - - - - Feb-18-2014 Wasabi Rabbit, Inc. Barnum Design, LLC - - - - Feb-18-2014 Remark Media, Inc. (NasdaqCM:MARK) BH Enterprises of FL, Inc., TaxExtension.com Assets - - - - Feb-18-2014 Private Investor(s) Communication Design International Limited (Catalist:5HT) $14.0 $6.3 0.4x - Feb-18-2014 Spirent Communications Plc. (LSE:SPT) DAX Technologies Corp. - $37.0 - - Feb-18-2014 Media, Inc. Digital Scout Inc. - - - - Feb-18-2014 Delite Products, Inc. and Vapor Hub, Inc. DogInn, Inc. (OTCPK:DOGI) - - - - Feb-18-2014 Private Investor(s) Loop Mobile (India) Limited - $112.6 - - Feb-18-2014 SuperAwesome Limited MobiGirl Media - - - - Feb-18-2014 Ray Corporation (JASDAQ:4317) Nippon Movie Co., Ltd. - $0.1 - - Feb-18-2014 Vistaprint N.V. (NasdaqGS:VPRT) People & Print Group B.V. $46.8 $33.0 0.7x 8.0x Feb-18-2014 OPT, Inc. (JASDAQ:2389) SkillUp Video Technologies Corporation - $25.3 - - Feb-18-2014 Blackfin Capital Partners SAS SunGard Capital Corp., GP3 and Decalog - - - - Feb-18-2014 ClickSoftware Technologies Ltd. (NasdaqGS:CKSW) Xora, Inc. - $14.7 - - Feb-17-2014 Blueocean Market Intelligence Services Private Limited Cognicient Limited - - - - Feb-17-2014 Agent3 Limited Continuous Insight Limited - - - - Feb-17-2014 Vistex, Inc. Counterpoint Systems Ltd. - - - - Feb-17-2014 Private Investor(s) NSO Group - - - - Feb-17-2014 EMI Media, Inc. RSL Media, LLC - - - - Feb-17-2014 Abbey House Group Spolka Akcyjna (WSE:AHG) Skate's, LLC - $0.8 - - Feb-16-2014 GTCR, LLC Callcredit Information Group Limited - $586.0 - - Feb-16-2014 Google Inc. (NasdaqGS:GOOG) SlickLogin - - - - Feb-14-2014 Yahoo! Inc. (NasdaqGS:YHOO) Distill, Inc. - - - - Feb-14-2014 Equifax Inc. (NYSE:EFX) Forseva, LLC - - - - Feb-14-2014 TEAMtalk media (Pty) Ltd. FullCircle Sport Online - - - - Feb-14-2014 Oxiem, LLC Hafenbrack Marketing & Public Relations, Inc. - - - - Feb-14-2014 Capita plc (LSE:CPI) Retain International Ltd. - - - - Feb-14-2014 CTIL Limited (BSE:532363) Tangent Solutions India Pvt. Ltd. - - - - Feb-14-2014 Private Investor(s) Twistbox Entertainment, Inc. - - - - Feb-14-2014 Rakuten, Inc. (TSE:4755) Viber Media Inc. $0.0 $900.0 - - Feb-13-2014 Brisio Innovations Inc. (OTCPK:NTCE.F) 40 Mobile Applications - - - - Feb-13-2014 Javelin Group Brand Social Limited - - - - Feb-13-2014 Bit9, Inc. Carbon Black, Inc. - - - - Feb-13-2014 Interactive Thinking Srl Hagakure Srl - - - - Acquirer Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 11. Select February 2014 Software Industry M&A Transactions Date Announced Target Target TTM Revenue ($mm) Enterprise Value ($mm) EV/ Revenue EV/ EBITDA Feb-13-2014 In Sync Bemis Balkind In Sync Advertising, Inc. - - - - Feb-13-2014 Groupe Viseo Novedia Group S.A.S. - - - - Feb-13-2014 WABCO Europe BVBA Transics International NV (ENXTBR:TRAN) $65.3 $122.3 1.8x 10.3x Feb-13-2014 Terago Inc. (TSX:TGO) Vancouver Data Center - - - - Feb-12-2014 Acosta, Inc. Anderson Daymon Worldwide, LLC - - - - Feb-12-2014 Daybreak Information Technologies Limited Cernam Ltd - - - - Feb-12-2014 DMW Worldwide, LLC Dakota-Diesel, Inc. - - - - Feb-12-2014 Huawei Investment & Holding Co., Ltd. Fastwire Pty Limited - - - - Feb-12-2014 Sungy Mobile Limited (NasdaqGM:GOMO) Getjar Inc. - $35.7 - - Feb-12-2014 Abnote Australasia Pty Ltd Mailcare Systems Pty Ltd. - - - - Feb-12-2014 Private Investor(s) Media Incruise Co., Ltd. - - - - Feb-12-2014 Powerleader Investment Holding Company Limited Nanjing Baode Cloud Computing Technology Co., Ltd. - $8.3 - - Feb-12-2014 Private Investor(s) Valpak of N.J. Gold Coast - - - - Feb-11-2014 SearchDex, Inc. Altruik, Inc. - - - - Feb-11-2014 RealPage, Inc. (NasdaqGS:RP) Bookt LLC - - - - Feb-11-2014 Digital Planet Communications, Inc. Compass Communications, Inc. - - - - Feb-11-2014 Claranet Limited eChiron S.A $6.8 - - - Feb-11-2014 1WorldDirect Ltd. One World Direct Holdings Inc. - - - - Feb-11-2014 A6 Corporation ReachLogic Media, LLC - - - - Feb-11-2014 Integral Ad Science, Inc. Simplytics Ltd - - - - Acquirer g , p y Feb-11-2014 PlanG Holdings Inc. SocialVest Ventures, LLC - - - - Feb-11-2014 DataLogix Holdings, Inc. Spire, LLC - - - - Feb-11-2014 TinyPass, Inc. Swishu, LLC - - - - Feb-11-2014 Visma AS Wallmob A/S PLC - - - - Feb-11-2014 Private Investor(s) Wander Inc. - - - - Feb-11-2014 The Kroger Co. (NYSE:KR) YOU Technology Brand Services, Inc. - - - - Feb-10-2014 CFT Energy Limited E-tivity Corporation (APAC) Pty Ltd - $9.0 - - Feb-10-2014 AccountNow, Inc. Fuze Online, Inc., www.babblebug.com - - - - Feb-10-2014 Intergraph Process, Power & Marine, Inc. Georgia Tech Research Corp., GT STRUDL - - - - Feb-10-2014 Tarsus Group plc (LSE:TRS) HealthScienceMedia Inc. - $14.0 - - Feb-10-2014 Misys Limited IND Group $21.9 - - - Feb-10-2014 Visma AS Logium Oy $6.8 - - - Feb-10-2014 Shopgate GmbH MagCorp - - - - Feb-10-2014 Blue Rubicon Limited Open Road Limited - - - - Feb-10-2014 DoubleVerify, Inc. RealTargeting - - - - Feb-10-2014 EgoSecure GmbH SECUDE AG, FinallySecure - - - - Feb-10-2014 Private Investor(s) Springville S.A. - $0.0 - - Feb-10-2014 Storage Treasures, Inc. Storage Battles Inc. - - - - Feb-10-2014 Körber Medipak GmbH Werum Software & Systems AG - - - - Feb-07-2014 Viewpoint, Inc. Maxwell Systems, Inc. - - - - Feb-07-2014 Synopsys Inc. (NasdaqGS:SNPS) Target Compiler Technologies N.V. - - - - Feb-07-2014 The Toho Information System Co., Ltd. The Toho Information System Co., Ltd. - - - - Feb-06-2014 McGraw-Hill Education, Inc. Area9 Aps - - - - Feb-06-2014 Ericsson (OM:ERIC B) Azuki Systems, Inc. - - - - Feb-06-2014 LinkedIn Corporation (NYSE:LNKD) Bright Media Corporation, Inc. - $120.9 - - Feb-06-2014 Private Investor(s) Buy4Now Ltd. - - - - Feb-06-2014 Arqiva Broadcast Holdings Limited Capablue Ltd - - - - Feb-06-2014 XBT Holding LTD. DDoS.com - $0.1 - - Feb-06-2014 First American Financial Corporation (NYSE:FAF) Interthinx, Inc. - $155.0 - - Feb-06-2014 MiX Telematics Limited (JSE:MIX) Mobitech - - - - Feb-06-2014 Times Internet Ltd. Musicfellas Entertainment Private Limited - - - - Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 12. Select February 2014 Software Industry M&A Transactions Date Announced Target Target TTM Revenue ($mm) Enterprise Value ($mm) EV/ Revenue EV/ EBITDA Feb-06-2014 OpenTable, Inc. (NasdaqGS:OPEN) Ness Computing, Inc. - $11.3 - - Feb-06-2014 Conversant, Inc. (NasdaqGS:CNVR) SET Media Inc. - $30.0 - - Feb-06-2014 Aeroflex Holding Corp. (NYSE:ARX) Shenick Network Systems Limited $9.4 $28.5 3.0x - Feb-06-2014 Imperva Inc. (NYSE:IMPV) Skyfence Networks Ltd. - $59.9 - - Feb-05-2014 DataMentors, Inc. Attain Group LLC - - - - Feb-05-2014 Renderosity Art Community Blacksmith3D - - - - Feb-05-2014 Cadence Design Systems Inc. (NasdaqGS:CDNS) C2 Design Automation, Inc. - - - - Feb-05-2014 Persistent Systems Limited (BSE:533179) Cloudsquads, Inc. - - - - Feb-05-2014 Amazon.com Inc. (NasdaqGS:AMZN) Double Helix Games LLC - - - - Feb-05-2014 Radiographica Costarricense SA Fullmóvil - - - - Feb-05-2014 PointAcross, Inc. GoldMail, Inc. - - - - Feb-05-2014 Callidus Software Inc. (NasdaqGM:CALD) LeadRocket, Inc. - $3.0 - - Feb-05-2014 adQuota Denmark ApS Mobi Targets, S.L. - - - - Feb-05-2014 Advanced Manufacturing Control Systems Ltd. PC Scale, Inc. $10.0 - - - Feb-05-2014 Boxer Inc. Quantum Apps LLC - - - - Feb-05-2014 United Treatment Centers, Inc. (OTCPK:UTRM) United Treatment Centers, Inc., Prior to Merger with RedTruckSEO - - - - Feb-04-2014 Service Scout, Inc. Betterfly, Inc. - - - - Feb-04-2014 Top Media Holdings S.A. Colite Outdoor, LLC - - - - Feb-04-2014 Vistex, Inc. hawkeye Channel by Vistex - - - - Feb-04-2014 Elysian Capital LLP Wellbeing Software Group Ltd. - - - - Acquirer y p g p Feb-03-2014 Tekis AB Alarmos $1.5 - - - Feb-03-2014 Anevia SA BackstreamTV - - - - Feb-03-2014 Xaxis, LLC Bannerconnect B.V. $5.8 - - - Feb-03-2014 Advanced Computer Software Group plc (AIM:ASW) Compass Computer Consultants Ltd. $9.3 $19.4 2.1x 3.6x Feb-03-2014 Private Investor(s) Engrade, Inc. - - - - Feb-03-2014 Open Mobile Media Ltd. M for Mobile - - - - Feb-03-2014 Private Investor(s) RentVM, Inc. - $5.9 - - Feb-03-2014 Rakuten, Inc. (TSE:4755) VI-VI-VI.COM Co.,Ltd. - - - - Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 13. SEG Software Index Select Software Industry M&A Transactions SEG SaaS Index SEG Internet Index Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 14. SEG Software Index: All Categories Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD SEG Software Index $2,313.8 $2,612.6 $791.8 70.3% 19.8% 7.3% 3.1x 15.5x 3.0x 11.6x 3.8% Billing & Service Management $957.8 $1,012.0 $349.0 57.4% 19.2% 4.4% 2.5x 9.4x 2.3x 8.6x -4.0% Business Intelligence $1,372.9 $1,078.4 $402.2 80.8% 8.6% 11.8% 3.0x 17.6x 3.1x 15.6x -2.3% Development Platforms $2,848.1 $2,880.6 $1,134.8 76.6% 19.8% -0.8% 2.9x 11.3x 3.0x 8.5x 3.8% Engineering & PLM $4,666.2 $4,663.0 $1,156.4 84.1% 20.7% 6.2% 3.6x 15.5x 3.0x 11.6x 0.0% Enterprise Resource Planning $7,938.1 $8,540.9 $2,228.0 70.3% 29.0% 2.7% 3.8x 13.2x 3.0x 10.6x 6.4% Financial & Accounting $2,252.4 $2,612.6 $737.8 54.6% 25.9% 7.3% 3.8x 15.7x 3.6x 11.0x -3.4% Gaming $2,704.2 $2,742.8 $2,282.1 64.2% 18.3% 6.1% 1.8x 11.8x 1.6x 9.6x 10.5% Healthcare $1,038.1 $938.9 $560.6 54.6% 15.3% 7.6% 2.6x 15.7x 2.4x 11.0x 12.7% IT Conglomerates $175,893.7 $163,563.7 $83,433.0 70.3% 32.7% 0.9% 3.1x 8.9x 2.9x 8.2x 3.7% Mobile Solutions/Content $881.6 $786.3 $279.6 56.6% 4.4% 22.3% 3.7x 20.3x 3.1x 26.1x 14.7% Networking & Network Performance Managemen $2,313.8 $2,130.6 $791.8 71.1% 13.7% 7.0% 3.2x 17.5x 3.0x 12.2x 9.8% Security $1,635.1 $1,517.4 $225.9 76.6% 9.3% 15.4% 3.1x 10.8x 4.7x 18.9x 9.0% Storage, Data Mgmt & Integration $13,386.8 $9,564.1 $4,582.0 71.5% 24.2% 1.3% 3.0x 9.4x 2.9x 8.0x 2.0% Supply Chain Management & Logistics $1,895.7 $1,814.1 $246.9 61.9% 26.8% 14.1% 6.3x 23.5x 5.7x 19.6x 10.7% Systems Management $11,107.6 $10,257.0 $2,200.3 85.9% 25.8% 13.0% 5.3x 19.8x 4.6x 14.1x 6.5% Vertical - Finance $3,897.4 $4,384.3 $874.2 44.0% 27.0% 8.2% 4.5x 13.3x 4.6x 11.9x -1.8% Vertical - Other $1,412.7 $1,554.1 $416.6 52.0% 8.5% 23.0% 3.1x 31.6x 2.8x 16.3x -7.4% Category Name TTM Revenue Growth 7.6% TTM EBITDA Growth -11.8% TTM Earnings Growth -35.4% Gross Profit Margin 68.5% EBITDA Margin 19.0% Net Income Margin -6.4% SG&A Expenses as a % of Total Revenue 57.5% R&D Expenses as a % of Total Revenue 18.0% Current Ratio 2.4 Quick Ratio 2.3 Cash as Percent of Market Cap 9.4% Avg Days Outstanding: Accounts Receivable 63 Avg Days Outstanding: Accounts Payable 33 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 8.3% Cash from Operations Growth (YoY) 18.8% Cash from Investing Growth (YoY) -13.6% Cash from Financing Growth (YoY) 86.1% Levered FCF Growth (YoY) 11.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% SEG SW Index Software Stock Market Return: January - February 2014 DOW S&P NASDAQ SEG SW Index
  • 15. SEG Software Index Category: Billing and Service Management Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Amdocs Limited DOX $7,099.8 $5,888.3 $3,383.5 35.3% 18.5% 3.6% 1.7x 9.4x 1.6x 7.9x 9.1% CSG Systems International, Inc. CSGS $957.8 $1,012.0 $747.5 49.5% 19.2% -1.2% 1.4x 7.1x 1.3x 6.4x -4.0% Evolving Systems, Inc. EVOL $97.3 $83.6 $25.4 71.7% 26.5% 4.4% 3.3x 12.4x 2.9x 9.6x -13.1% MIND C.T.I. Ltd. MNDO $41.4 $22.0 $18.5 57.4% 13.0% -8.6% 1.2x 9.1x n/a n/a 7.9% NeuStar, Inc NSR $2,191.8 $2,589.1 $902.0 76.4% 43.0% 8.5% 2.9x 6.7x 2.7x 5.7x -27.8% Redknee Solutions TSX:RKN $498.7 $472.0 $188.2 54.7% 3.6% 226.0% 2.5x 70.1x 1.9x 15.9x -12.7% Synchronoss Technologies, Inc. SNCR $1,398.0 $1,334.6 $349.0 58.1% 22.2% 27.5% 3.8x 17.2x 3.2x 9.2x 15.8% Median: $957.8 $1,012.0 $349.0 57.4% 19.2% 4.4% 2.5x 9.4x 2.3x 8.6x -4.0% TTM Revenue Growth 0.0% TTM EBITDA Growth 7.4% TTM Earnings Growth -13.8% Gross Profit Margin 0.0% EBITDA Margin 0.0% Net Income Margin 11.8% SG&A Expenses as a % of Total Revenue 20.4% R&D Expenses as a % of Total Revenue 14.7% Current Ratio 2.5 Quick Ratio 2.2 Cash as Percent of Market Cap 14.3% Avg Days Outstanding: Accounts Receivable 74 Avg Days Outstanding: Accounts Payable 31 Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 11.8% Cash from Operations Growth (YoY) 39.6% Cash from Investing Growth (YoY) -101.3% Cash from Financing Growth (YoY) 62.0% Levered FCF Growth (YoY) 10.8% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -8% -6% -4% -2% 0% 2% 4% 6% Billing and Service Management Software Stock Market Return: January - February 2014 Billing & Service Management S&P NASDAQ SEG SW Index
  • 16. SEG Software Index Category: Business Intelligence Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Actuate Corporation BIRT $270.6 $191.6 $134.5 85.6% 10.2% -3.1% 1.4x 13.9x 1.5x 7.5x -25.5% MicroStrategy Incorporated MSTR $1,459.3 $1,101.9 $575.9 75.9% 7.0% 1.8% 1.9x 27.3x 1.8x 15.6x 4.5% Pegasystems Inc. PEGA $1,587.6 $1,430.9 $509.0 69.1% 15.9% 10.2% 2.8x 17.6x 2.5x 16.4x -15.0% Progress Software Corporation PRGS $1,286.4 $1,055.0 $334.0 89.9% 28.0% 5.2% 3.2x 11.3x 3.1x 8.5x -2.3% PROS Holdings PRO $971.1 $926.4 $144.8 70.2% 6.9% 23.0% 6.4x 92.5x 4.8x 61.5x -12.4% Qlik Technologies QLIK $2,718.1 $2,490.4 $470.5 86.9% 2.5% 21.1% 5.3x 213.8x 4.5x 59.1x 21.4% Varonis Systems, Inc. VRNS $177.5 $177.5 $74.6 91.3% -6.8% 39.7% 2.4x n/a n/a n/a 0.0% Verisk VRSK $10,629.9 $11,736.1 $1,595.7 61.0% 46.1% 13.3% 7.4x 15.9x 6.6x 14.4x -2.2% Teradata NYSE:TDC $7,310.5 $6,889.5 $2,692.0 54.7% 23.1% 1.0% 2.6x 11.1x 2.4x 8.8x 2.7% Median: $1,372.9 $1,078.4 $402.2 80.8% 8.6% 11.8% 3.0x 17.6x 3.1x 15.6x -2.3% TTM Revenue Growth 11.8% TTM EBITDA Growth -5.5% TTM Earnings Growth -10.0% Gross Profit Margin 80.8% EBITDA Margin 8.6% Net Income Margin 7.5% SG&A Expenses as a % of Total Revenue 48.5% R&D Expenses as a % of Total Revenue 17.1% Current Ratio 2.0 Quick Ratio 1.8 Cash as Percent of Market Cap 9.5% Avg Days Outstanding: Accounts Receivable 93 Avg Days Outstanding: Accounts Payable 47 Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 10.5% Cash from Operations Growth (YoY) -11.3% Cash from Investing Growth (YoY) -26.2% Cash from Financing Growth (YoY) 6.0% Levered FCF Growth (YoY) 14.0% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -8% -6% -4% -2% 0% 2% 4% Business Intelligence Software Stock Market Return: January - February 2014 Business Intelligence S&P NASDAQ SEG SW Index
  • 17. SEG Software Index Category: Development Platforms Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Actuate Corporation BIRT $270.6 $191.6 $134.5 85.6% 10.2% -3.1% 1.4x 13.9x 1.5x 7.5x -25.5% Adobe Systems Incorporated ADBE $34,081.9 $32,422.2 $4,055.2 85.5% 19.0% -7.9% 8.0x 42.1x 8.0x 30.6x 15.8% BSQUARE Corporation BSQR $40.4 $19.6 $92.1 16.3% -2.5% -9.2% 0.2x n/a n/a n/a -1.9% Compuware Corporation CPWR $2,389.2 $2,301.1 $946.1 62.2% 13.3% -2.5% 2.4x 18.3x 3.0x 13.7x -1.8% Magic Software Enterprises Ltd. MGIC $316.5 $287.5 $145.0 40.7% 19.1% 14.7% 2.0x 10.4x 1.8x n/a 20.9% Microsoft Corporation MSFT $318,000.7 $258,703.7 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.1x 2.9x 8.2x 3.9% Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7% Progress Software Corporation PRGS $1,286.4 $1,055.0 $334.0 89.9% 28.0% 5.2% 3.2x 11.3x 3.1x 8.5x -2.3% Red Hat, Inc. RHT $11,180.8 $10,214.3 $1,482.1 84.8% 20.4% 16.0% 6.9x 33.7x 6.0x 21.3x 5.7% Software AG XTRA:SOW $3,307.1 $3,460.0 $1,323.5 68.2% 25.6% -8.1% 2.6x 10.2x n/a n/a 17.3% Median: $2,848.1 $2,880.6 $1,134.8 76.6% 19.8% -0.8% 2.9x 11.3x 3.0x 8.5x 3.8% TTM Revenue Growth -0.8% TTM EBITDA Growth -4.5% TTM Earnings Growth -8.0% Gross Profit Margin 76.6% EBITDA Margin 19.8% Net Income Margin 11.4% SG&A Expenses as a % of Total Revenue 39.5% R&D Expenses as a % of Total Revenue 13.2% Current Ratio 2.0 Quick Ratio 1.9 Cash as Percent of Market Cap 19.2% Avg Days Outstanding: Accounts Receivable 76 Avg Days Outstanding: Accounts Payable 34 Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 19.2% Cash from Operations Growth (YoY) -7.7% Cash from Investing Growth (YoY) -26.2% Cash from Financing Growth (YoY) 2.8% Levered FCF Growth (YoY) -5.7% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% Development Platforms Software Stock Market Return: January - February 2014 Development Platforms S&P NASDAQ SEG SW Index
  • 18. SEG Software Index Category: Engineering & PLM Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD ANSYS, Inc. ANSS $7,728.9 $6,985.9 $861.3 87.4% 46.8% 7.9% 8.1x 17.3x 7.3x 14.9x -2.9% Autodesk, Inc. ADSK $11,734.5 $10,213.8 $2,273.9 87.9% 18.8% -1.7% 4.5x 23.9x 4.3x 23.0x 6.6% Cadence Design Systems, Inc CDNS $4,431.8 $4,123.6 $1,460.1 86.3% 20.9% 10.1% 2.8x 13.5x 2.6x 8.3x 9.4% Cimatron Ltd. CIMT $99.6 $86.6 $44.2 86.8% 14.7% 4.6% 2.0x 13.3x 1.8x n/a 5.4% Dassault Systèmes DSY $14,250.1 $12,303.1 $2,845.3 87.3% 31.2% 1.9% 4.3x 13.9x n/a n/a -6.6% GSE Systems Inc. GVP $32.1 $14.5 $48.0 27.7% -5.2% -12.1% 0.3x n/a 0.3x n/a 10.8% Mentor Graphics Corp MENT $2,480.2 $2,432.2 $1,156.4 84.1% 20.7% 6.2% 2.1x 10.2x 2.0x 8.3x -8.7% Parametric Technology Corporation PTC $4,666.2 $4,663.0 $1,298.7 71.6% 22.3% 3.3% 3.6x 16.1x 3.4x 12.5x 13.3% PDF Solutions Inc PDFS $615.5 $526.1 $101.5 61.1% 32.5% 13.3% 5.2x 16.0x 4.7x 10.7x -18.6% Stratasys, Inc. SSYS $6,196.1 $5,581.8 $484.4 46.7% 12.5% 125.0% 11.5x 92.4x 8.9x 29.7x -5.1% Synopsys Inc SNPS $6,225.0 $5,429.4 $1,966.0 82.3% 18.3% 8.9% 2.8x 15.1x 2.6x 8.8x 0.0% Median: $4,666.2 $4,663.0 $1,156.4 84.1% 20.7% 6.2% 3.6x 15.5x 3.0x 11.6x 0.0% TTM Revenue Growth 6.2% TTM EBITDA Growth 6.1% TTM Earnings Growth 9.9% Gross Profit Margin 84.1% EBITDA Margin 20.7% Net Income Margin 11.4% SG&A Expenses as a % of Total Revenue 36.2% R&D Expenses as a % of Total Revenue 17.9% Current Ratio 2.4 Quick Ratio 2.2 Cash as Percent of Market Cap 14.3% Avg Days Outstanding: Accounts Receivable 82 Avg Days Outstanding: Accounts Payable 46 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 18.8% Cash from Operations Growth (YoY) 10.5% Cash from Investing Growth (YoY) 51.9% Cash from Financing Growth (YoY) -136.1% Levered FCF Growth (YoY) -0.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% Engineering & PLM Software Stock Market Return: January - February 2014 Engineering & PLM S&P NASDAQ SEG SW Index
  • 19. SEG Software Index Category: Enterprise Resource Planning Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD American Software, Inc. AMSW.A $287.7 $221.9 $99.9 55.9% 15.2% -3.2% 2.2x 14.6x 2.1x 10.2x 6.4% Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7% QAD Inc. QADA $289.7 $239.5 $258.6 56.0% 4.2% 2.8% 0.9x 22.0x 0.9x 12.0x 11.8% Sage Group plc LSE:SGE $7,938.1 $8,540.9 $2,228.0 94.2% 29.0% 2.7% 3.8x 13.2x n/a n/a 13.6% SAP DB:SAP $96,215.3 $98,308.5 $23,159.1 70.3% 32.7% 3.7% 4.2x 13.0x 4.0x 11.1x -4.4% Median: $7,938.1 $8,540.9 $2,228.0 70.3% 29.0% 2.7% 3.8x 13.2x 3.0x 10.6x 6.4% TTM Revenue Growth 2.7% TTM EBITDA Growth 1.9% TTM Earnings Growth 0.2% Gross Profit Margin 70.3% EBITDA Margin 29.0% Net Income Margin 10.9% SG&A Expenses as a % of Total Revenue 32.1% R&D Expenses as a % of Total Revenue 13.4% Current Ratio 1.2 Quick Ratio 1.1 Cash as Percent of Market Cap 21.0% Avg Days Outstanding: Accounts Receivable 72 Avg Days Outstanding: Accounts Payable 22 Working Capital to TTM Operating Expense Ratio 0.1x Levered FCF Margin 16.8% Cash from Operations Growth (YoY) 4.1% Cash from Investing Growth (YoY) 30.2% Cash from Financing Growth (YoY) 23.8% Levered FCF Growth (YoY) -16.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% Enterprise Resource Planning Software Stock Market Return: January - February 2014 Enterprise Resource Planning S&P NASDAQ SEG SW Index
  • 20. SEG Software Index Category: Financial & Accounting Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD ACI Worldwide, Inc. ACIW $2,252.4 $2,925.5 $864.9 60.2% 21.6% 29.8% 3.4x 15.7x 2.7x 10.0x -4.7% Bottomline Technologies EPAY $1,331.8 $1,269.8 $270.1 54.7% 10.8% 11.6% 4.7x 43.7x 4.0x 18.4x 2.0% DST Systems, Inc. DST $3,934.7 $4,239.0 $2,658.6 17.4% 16.2% 3.2% 1.6x 9.8x 2.0x 8.7x 4.6% Evertec EVTC $1,899.2 $2,612.6 $357.2 54.6% 43.7% 4.6% 7.3x 16.7x 6.9x 13.8x -3.4% Fair Isaac Corporation FICO $1,875.9 $2,257.9 $737.8 68.7% 25.9% 6.0% 3.1x 11.8x 2.9x 10.8x -12.7% Fiserv FISV $14,773.0 $18,221.0 $4,814.0 43.0% 28.9% 8.5% 3.8x 13.1x 3.6x 11.0x -0.3% Intuit Inc INTU $22,141.0 $21,309.0 $4,129.0 86.2% 31.4% 12.2% 5.2x 16.4x 4.5x 11.1x 3.2% Model N, Inc MODN $266.4 $163.8 $101.1 54.5% 2.5% 14.2% 1.6x 65.1x 2.1x n/a -45.0% NetSol Technologies Inc. KASE:NETS $28.0 $30.1 $27.3 45.6% 35.8% 2.3% 1.1x 3.1x n/a n/a -25.8% Sage Group plc LSE:SGE $7,938.1 $8,540.9 $2,228.0 94.2% 29.0% 2.7% 3.8x 13.2x n/a n/a 13.6% Qiwi plc QIWI $2,429.3 $2,197.1 $339.0 45.5% 22.4% n/a 6.5x 28.9x 11.3x 24.9x -16.3% Median: $2,252.4 $2,612.6 $737.8 54.6% 25.9% 7.3% 3.8x 15.7x 3.6x 11.0x -3.4% TTM Revenue Growth 7.3% TTM EBITDA Growth 15.6% TTM Earnings Growth -2.1% Gross Profit Margin 54.6% EBITDA Margin 25.9% Net Income Margin 11.3% SG&A Expenses as a % of Total Revenue 28.1% R&D Expenses as a % of Total Revenue 16.5% Current Ratio 1.3 Quick Ratio 0.9 Cash as Percent of Market Cap 6.0% Avg Days Outstanding: Accounts Receivable 70 Avg Days Outstanding: Accounts Payable 41 Working Capital to TTM Operating Expense Ratio 0.1x Levered FCF Margin 16.0% Cash from Operations Growth (YoY) 15.7% Cash from Investing Growth (YoY) -7.0% Cash from Financing Growth (YoY) -23.7% Levered FCF Growth (YoY) 31.7% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -8% -6% -4% -2% 0% 2% 4% Financial & Accounting Software Stock Market Return: January - February 2014 Financial & Accounting S&P NASDAQ SEG SW Index
  • 21. SEG Software Index Category: Gaming Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Activision Blizzard ATVI $13,456.6 $13,706.6 $4,583.0 66.6% 32.3% -5.6% 3.0x 9.3x 3.0x 8.5x 7.1% Electronic Arts Inc. EA $8,851.2 $7,356.2 $3,661.0 61.8% 6.1% -7.5% 2.0x 33.0x 1.8x 9.8x 25.2% GameLoft SA ENXTPA:GF $907.1 $823.4 $289.2 83.2% 15.2% 21.8% 2.8x 18.8x n/a n/a 2.3% Konami Corporation TSE: 9766 $3,470.6 $3,432.7 $2,109.3 30.8% 11.3% -4.1% 1.6x 14.3x 1.5x 10.2x 8.2% Take-Two Interactive TTWO $1,937.7 $1,414.3 $2,454.8 42.2% 21.4% 130.9% 0.6x 2.7x 1.0x 9.4x 12.8% Ubisoft Entertainment ENXTPA:UB $1,855.7 $2,052.9 $1,719.3 72.7% 37.7% 16.3% 1.2x 3.2x n/a n/a 20.0% Median: $2,704.2 $2,742.8 $2,282.1 64.2% 18.3% 6.1% 1.8x 11.8x 1.6x 9.6x 10.5% TTM Revenue Growth 6.1% TTM EBITDA Growth -0.7% TTM Earnings Growth -31.9% Gross Profit Margin 64.2% EBITDA Margin 18.3% Net Income Margin 3.6% SG&A Expenses as a % of Total Revenue 24.5% R&D Expenses as a % of Total Revenue 30.7% Current Ratio 2.4 Quick Ratio 1.6 Cash as Percent of Market Cap 18.2% Avg Days Outstanding: Accounts Receivable 42 Avg Days Outstanding: Accounts Payable 58 Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 13.2% Cash from Operations Growth (YoY) 19.6% Cash from Investing Growth (YoY) -38.8% Cash from Financing Growth (YoY) 32.8% Levered FCF Growth (YoY) 35.7% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -5% 0% 5% 10% 15% Gaming Software Stock Market Return: January - February 2014 Gaming S&P NASDAQ SEG SW Index
  • 22. SEG Software Index Category: Healthcare Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Accretive Health AH $805.4 $609.0 $973.6 20.7% 2.9% 32.2% 0.6x 21.2x 0.6x 10.3x -9.4% Allscripts Healthcare Solutions Inc. MDRX $3,278.3 $3,776.8 $1,373.1 46.0% 2.2% -5.1% 2.8x 122.6x 2.6x 16.5x 20.7% Cerner Corporation CERN $21,108.0 $20,394.4 $2,840.6 84.3% 26.2% 8.8% 7.2x 27.4x 6.1x 17.8x 11.4% Computer Programs and Sys, Inc. CPSI $763.6 $741.2 $200.9 46.7% 26.7% 9.6% 3.7x 13.8x 3.5x 12.3x 13.9% MedAssets MDAS $1,501.1 $2,271.9 $680.4 77.7% 30.3% 6.3% 3.3x 11.0x 3.2x 9.6x 24.1% Merge Healthcare MRGE $236.2 $453.7 $231.7 58.6% 13.9% -6.9% 2.0x 14.1x 2.1x 10.9x -0.8% Omnicell, Inc. OMCL $1,025.0 $920.5 $380.6 53.4% 14.1% 21.2% 2.4x 17.2x 2.2x 11.1x 14.8% Quality Systems, Inc. QSII $1,051.3 $957.3 $440.8 55.8% 16.5% -3.7% 2.2x 13.2x 2.1x 9.6x -15.8% Median: $1,038.1 $938.9 $560.6 54.6% 15.3% 7.6% 2.6x 15.7x 2.4x 11.0x 12.7% TTM Revenue Growth 7.6% TTM EBITDA Growth 5.2% TTM Earnings Growth 0.1% Gross Profit Margin 54.6% EBITDA Margin 15.3% Net Income Margin 2.9% SG&A Expenses as a % of Total Revenue 32.3% R&D Expenses as a % of Total Revenue 9.9% Current Ratio 2.1 Quick Ratio 1.8 Cash as Percent of Market Cap 6.2% Avg Days Outstanding: Accounts Receivable 69 Avg Days Outstanding: Accounts Payable 32 Working Capital to TTM Operating Expense Ratio 0.3x Levered FCF Margin 9.4% Cash from Operations Growth (YoY) -1.8% Cash from Investing Growth (YoY) 0.9% Cash from Financing Growth (YoY) 12.7% Levered FCF Growth (YoY) 27.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Healthcare Software Stock Market Return: January - February 2014 Healthcare S&P NASDAQ SEG SW Index
  • 23. SEG Software Index Category: IT Conglomerates Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Hewlett Packard HPQ $56,845.3 $65,667.3 $112,093.0 23.4% 11.8% -5.6% 0.6x 5.0x 0.6x 4.8x 8.0% IBM IBM $192,825.1 $221,627.1 $99,751.0 48.6% 25.1% -4.6% 2.2x 8.9x 2.2x 8.0x 0.4% Microsoft Corporation MSFT $318,000.7 $258,703.7 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.1x 2.9x 8.2x 3.9% Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7% SAP AG DB:SAP $96,215.3 $98,308.5 $23,159.1 70.3% 32.7% 3.7% 4.2x 13.0x 4.0x 11.1x -4.4% Median: $175,893.7 $163,563.7 $83,433.0 70.3% 32.7% 0.9% 3.1x 8.9x 2.9x 8.2x 3.7% TTM Revenue Growth 0.9% TTM EBITDA Growth 1.9% TTM Earnings Growth 23.2% Gross Profit Margin 70.3% EBITDA Margin 32.7% Net Income Margin 19.8% SG&A Expenses as a % of Total Revenue 23.3% R&D Expenses as a % of Total Revenue 13.1% Current Ratio 1.3 Quick Ratio 1.1 Cash as Percent of Market Cap 21.0% Avg Days Outstanding: Accounts Receivable 61 Avg Days Outstanding: Accounts Payable 54 Working Capital to TTM Operating Expense Ratio 0.1x Levered FCF Margin 18.3% Cash from Operations Growth (YoY) 0.3% Cash from Investing Growth (YoY) 29.0% Cash from Financing Growth (YoY) -14.9% Levered FCF Growth (YoY) -28.9% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% IT Conglomerates Software Stock Market Return: January - February 2014 IT Conglomerates S&P NASDAQ SEG SW Index
  • 24. SEG Software Index Category: Mobile Solutions/Content Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Bango PLC BGO $121.3 $110.1 $14.7 26.7% -32.4% n/a 7.5x n/a n/a n/a 17.1% Glu Mobile, Inc. GLUU $392.1 $363.6 $105.6 68.9% -12.2% -2.4% 3.4x n/a 2.5x 67.5x 29.0% Gree TSE:3632 $2,564.1 $2,178.7 $1,358.5 79.6% 31.6% -12.7% 1.6x 5.1x n/a n/a 11.4% Millennial Media Inc MM $642.1 $542.9 $259.2 40.3% -4.3% 45.9% 2.1x n/a 1.3x 26.1x -17.9% Myriad Group AG MYRN $157.6 $175.7 $52.6 22.1% -16.2% 3.0% 3.3x n/a n/a n/a 13.6% NQ Mobile Inc. NQ $1,035.8 $886.4 $158.9 64.8% 3.0% 113.0% 5.6x 186.4x 3.1x 9.9x 20.9% Opera OB:OPERA $1,801.5 $1,635.9 $300.1 44.4% 27.5% 38.9% 5.5x 19.8x n/a n/a -0.3% Qihoo 360 Technology Co. Ltd QIHU $13,458.2 $13,066.1 $552.4 87.6% 26.4% 91.5% 23.7x 89.5x 13.9x 28.5x 33.9% Pandora Media P $7,387.6 $7,043.2 $588.3 37.0% -7.1% 53.5% 12.0x n/a 7.8x 138.1x 39.8% Synchronoss Technologies, Inc. SNCR $1,398.0 $1,334.6 $349.0 58.1% 22.2% 27.5% 3.8x 17.2x 3.2x 9.2x 15.8% Tangoe TNGO $727.4 $686.3 $188.9 55.0% 8.7% 22.3% 3.6x 41.8x 3.1x 18.2x 5.3% TeleCommunication Systems TSYS $127.4 $213.0 $362.3 38.4% 5.8% -25.7% 0.6x 10.1x 0.6x 6.0x -6.1% TeleNav TNAV $232.3 $56.7 $183.5 61.1% 1.5% -6.2% 0.3x 20.3x 0.4x n/a -6.8% Zynga, Inc ZNGA $4,437.0 $3,311.5 $873.3 71.6% 8.4% -31.8% 3.8x 45.0x 4.1x 36.1x 28.1% Median: $881.6 $786.3 $279.6 56.6% 4.4% 22.3% 3.7x 20.3x 3.1x 26.1x 14.7% TTM Revenue Growth 22.3% TTM EBITDA Growth 7.0% TTM Earnings Growth -3.8% Gross Profit Margin 56.6% EBITDA Margin 4.4% Net Income Margin -0.8% SG&A Expenses as a % of Total Revenue 37.9% R&D Expenses as a % of Total Revenue 18.6% Current Ratio 2.8 Quick Ratio 2.7 Cash as Percent of Market Cap 9.0% Avg Days Outstanding: Accounts Receivable 65 Avg Days Outstanding: Accounts Payable 45 Working Capital to TTM Operating Expense Ratio 0.0x Levered FCF Margin 6.5% Cash from Operations Growth (YoY) 31.6% Cash from Investing Growth (YoY) 21.9% Cash from Financing Growth (YoY) 81.9% Levered FCF Growth (YoY) 188.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Mobile Solutions/Content Software Stock Market Return: January - February 2014 Mobile Solutions/Content S&P NASDAQ SEG SW Index
  • 25. SEG Software Index Category: Networking/Network Performance Mgmt Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Allot Communications Ltd. ALLT $547.8 $426.2 $96.5 72.2% -1.8% -7.8% 4.4x n/a 3.7x 22.7x 11.1% Aruba Networks, Inc. ARUN $2,238.4 $1,960.2 $637.5 69.9% 1.4% 11.6% 3.1x 213.6x 2.6x 12.2x 18.5% Barracuda Networks, Inc. CUDA $1,828.6 $1,712.0 $225.9 76.6% -0.1% n/a 7.6x n/a 6.8x 33.3x -3.3% Brocade Communications Systems, BRCD $4,164.9 $3,765.0 $2,198.7 64.0% 24.4% -3.0% 1.7x 7.0x 1.7x 5.8x 8.5% Cisco Systems, Inc. CSCO $112,297.9 $82,404.9 $47,873.0 59.4% 27.1% 1.3% 1.7x 6.3x 1.8x 5.1x -0.9% Cyan, Inc. CYNI $156.0 $96.9 $116.6 41.3% -29.9% 21.6% 0.8x n/a 1.0x n/a -35.6% Compuware Corporation CPWR $2,389.2 $2,301.1 $946.1 62.2% 13.3% -2.5% 2.4x 18.3x 3.0x 13.7x -2.3% F5 Networks, Inc. FFIV $8,475.3 $7,897.1 $1,522.3 82.6% 30.8% 7.2% 5.2x 16.8x 4.5x 11.6x 26.4% Gigamon, LLC GIMO $981.1 $842.9 $140.3 78.0% -19.5% 45.1% 6.0x n/a 4.6x 26.7x 13.5% Juniper Networks, Inc. JNPR $13,399.9 $11,553.3 $4,669.1 63.2% 17.0% 7.0% 2.5x 14.5x 2.3x 9.2x 19.0% Radware Ltd. RDWR $787.0 $652.2 $193.0 81.0% 14.2% 2.0% 3.4x 23.8x 3.1x 15.9x -1.5% Riverbed Technology, Inc. RVBD $3,564.5 $3,630.2 $1,041.0 72.9% 14.2% 24.4% 3.5x 24.6x 3.2x 10.6x 23.6% Median: $2,313.8 $2,130.6 $791.8 71.1% 13.7% 7.0% 3.2x 17.5x 3.0x 12.2x 9.8% TTM Revenue Growth 7.0% TTM EBITDA Growth -24.5% TTM Earnings Growth -28.6% Gross Profit Margin 71.1% EBITDA Margin 13.7% Net Income Margin -1.2% SG&A Expenses as a % of Total Revenue 46.9% R&D Expenses as a % of Total Revenue 20.2% Current Ratio 2.6 Quick Ratio 2.3 Cash as Percent of Market Cap 15.6% Avg Days Outstanding: Accounts Receivable 50 Avg Days Outstanding: Accounts Payable 48 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 21.5% Cash from Operations Growth (YoY) -6.1% Cash from Investing Growth (YoY) 27.6% Cash from Financing Growth (YoY) -5.5% Levered FCF Growth (YoY) 26.9% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Networking/Network Performance Mgmt Software Stock Market Return: January - February 2014 Networking & Network Performance Management S&P NASDAQ SEG SW Index
  • 26. SEG Software Index Category: Security Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD AVG Technologies N.V. AVG $1,019.7 $1,007.4 $407.1 83.1% 33.2% 14.4% 2.5x 7.5x 2.6x 7.8x 10.6% Barracuda Networks, Inc. CUDA $1,828.6 $1,712.0 $225.9 76.6% -0.1% n/a 7.6x n/a 6.8x 33.3x -3.3% Check Point Software Tech Ltd. CHKP $12,964.9 $11,798.1 $1,394.1 88.4% 55.4% 3.8% 8.5x 15.3x 8.0x 13.8x 4.7% Cyren CYRN $99.0 $98.4 $32.2 77.7% -5.8% 34.9% 3.1x n/a 2.9x n/a 26.0% Fortinet Inc. FTNT $3,784.1 $3,292.7 $615.3 70.6% 14.3% 15.3% 5.4x 37.5x 4.7x 24.0x 21.7% Guidance Software, Inc. GUID $316.4 $296.7 $110.5 66.1% -12.3% -14.6% 2.7x n/a 2.5x 29.5x 9.0% Imperva IMPV $1,635.1 $1,517.4 $137.8 78.4% -16.5% 32.2% 11.0x n/a 8.6x n/a 29.0% Palo Alto Networks, Inc PANW $5,269.7 $4,831.5 $482.9 73.2% -3.7% 49.2% 10.0x n/a 7.3x 53.6x 27.8% Proofpoint, Inc. PFPT $1,498.0 $1,401.5 $137.9 69.8% -14.6% 29.8% 10.2x n/a 8.0x n/a 27.9% Sourcefire, Inc. FIRE $19.7 $19.0 $18.9 38.5% 9.3% 25.2% 1.0x 10.8x n/a n/a -12.8% Symantec Corporation SYMC $14,854.6 $13,058.6 $6,799.0 83.6% 28.8% -0.6% 1.9x 6.7x 2.0x 6.3x -7.8% Trend Micro TSE:4704 $4,485.4 $3,108.3 $1,030.1 82.1% 33.9% 15.4% 3.0x 8.9x n/a n/a -4.7% VASCO Data Security International VDSI $309.4 $210.8 $155.0 64.4% 10.1% 0.7% 1.4x 13.5x 1.3x 9.0x 5.1% Median: $1,635.1 $1,517.4 $225.9 76.6% 9.3% 15.4% 3.1x 10.8x 4.7x 18.9x 9.0% TTM Revenue Growth 15.4% TTM EBITDA Growth -52.0% TTM Earnings Growth -31.1% Gross Profit Margin 76.6% EBITDA Margin 9.3% Net Income Margin 0.0% SG&A Expenses as a % of Total Revenue 48.5% R&D Expenses as a % of Total Revenue 16.7% Current Ratio 1.6 Quick Ratio 1.3 Cash as Percent of Market Cap 7.7% Avg Days Outstanding: Accounts Receivable 65 Avg Days Outstanding: Accounts Payable 46 Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 15.3% Cash from Operations Growth (YoY) 21.7% Cash from Investing Growth (YoY) 19.7% Cash from Financing Growth (YoY) -11.7% Levered FCF Growth (YoY) 27.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Security Software Stock Market Return: January - February 2014 Security S&P NASDAQ SEG SW Index
  • 27. SEG Software Index Category: Storage, Data Management & Integration Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Brocade Communications Systems, BRCD $4,164.9 $3,765.0 $2,198.7 64.0% 24.4% -3.0% 1.7x n/a 1.7x 5.8x 8.5% CA, Inc. CA $15,000.2 $13,917.2 $4,582.0 85.8% 34.2% -2.1% 3.0x 8.9x 3.1x 7.9x 1.8% Cisco Systems, Inc. CSCO $112,297.9 $82,404.9 $47,873.0 59.4% 27.1% 1.3% 1.7x 6.3x 1.8x 5.1x -0.9% CommVault Systems, Inc. CVLT $3,271.5 $2,770.9 $567.8 87.3% 18.2% 20.4% 4.9x 26.8x 4.2x 16.5x -7.0% EMC EMC $53,415.9 $51,395.9 $23,222.0 62.3% 24.2% 6.9% 2.2x 9.2x 2.1x 6.9x 5.6% FalconStor Software, Inc. FALC $83.1 $62.5 $58.6 74.2% -12.3% -22.2% 1.1x n/a n/a n/a 31.1% IBM IBM $192,825.1 $221,627.1 $99,751.0 48.6% 25.1% -4.6% 2.2x 8.9x 2.2x 8.0x 0.4% Informatica Corporation INFA $4,538.9 $3,861.4 $948.2 83.2% 17.3% 16.8% 4.1x 23.5x 3.6x 13.4x 2.0% Microsoft Corporation MSFT $318,000.7 $258,703.7 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.1x 2.9x 8.2x 3.9% NetApp, Inc. NTAP $13,386.8 $9,312.7 $6,392.6 61.2% 15.2% 1.2% 1.5x 9.6x 1.4x 6.1x 0.4% Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7% Splunk, Inc. SPLK $10,461.6 $9,564.1 $302.6 88.9% -22.7% 52.1% 31.6x n/a 23.6x n/a 29.8% TIBCO Software Inc. TIBX $3,538.0 $3,333.1 $1,070.0 71.3% 18.1% 4.4% 3.1x 17.2x 2.9x 11.2x -5.8% Varonis Systems, Inc. VRNS $177.5 $177.5 $74.6 91.3% -6.8% 39.7% 2.4x n/a n/a n/a 0.0% Median: $13,386.8 $9,564.1 $4,582.0 71.5% 24.2% 1.3% 3.0x 9.4x 2.9x 8.0x 2.0% TTM Revenue Growth 1.3% TTM EBITDA Growth 2.7% TTM Earnings Growth 5.1% Gross Profit Margin 71.5% EBITDA Margin 24.2% Net Income Margin 12.0% SG&A Expenses as a % of Total Revenue 34.1% R&D Expenses as a % of Total Revenue 13.9% Current Ratio 2.5 Quick Ratio 2.3 Cash as Percent of Market Cap 20.5% Avg Days Outstanding: Accounts Receivable 67 Avg Days Outstanding: Accounts Payable 39 Working Capital to TTM Operating Expense Ratio 0.7x Levered FCF Margin 20.0% Cash from Operations Growth (YoY) -4.3% Cash from Investing Growth (YoY) 24.2% Cash from Financing Growth (YoY) 17.5% Levered FCF Growth (YoY) -2.9% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report -8% -6% -4% -2% 0% 2% 4% 6% Storage, Data Management & Integration Software Stock Market Return: January - February 2014 Storage, Data Management & Integration S&P NASDAQ SEG SW Index
  • 28. SEG Software Index Category: Supply Chain Management & Logistics Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD American Software, Inc. AMSW.A $287.7 $221.9 $99.9 55.9% 15.2% -3.2% 2.2x 14.6x 2.1x 10.2x 6.4% Aspen Technology, Inc. AZPN $4,342.2 $4,123.5 $349.0 85.6% 27.7% 27.3% 11.8x 42.7x 10.3x 32.0x 13.0% Manhattan Associates, Inc. MANH $2,896.5 $2,763.6 $414.5 56.3% 25.8% 10.2% 6.7x 25.8x 6.1x 21.6x 28.9% The Descartes Systems Group Inc. TSX:DSG $894.9 $864.7 $144.8 67.5% 28.2% 18.0% 6.0x 21.2x 5.2x 17.6x 8.5% Median: $1,895.7 $1,814.1 $246.9 61.9% 26.8% 14.1% 6.3x 23.5x 5.7x 19.6x 10.7% TTM Revenue Growth 14.1% TTM EBITDA Growth 18.2% TTM Earnings Growth 15.0% Gross Profit Margin 61.9% EBITDA Margin 26.8% Net Income Margin 13.5% SG&A Expenses as a % of Total Revenue 28.2% R&D Expenses as a % of Total Revenue 14.0% Current Ratio 2.4 Quick Ratio 2.1 Cash as Percent of Market Cap 5.3% Avg Days Outstanding: Accounts Receivable 63 Avg Days Outstanding: Accounts Payable 21 Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 21.3% Cash from Operations Growth (YoY) 27.5% Cash from Investing Growth (YoY) -53.1% Cash from Financing Growth (YoY) 63.7% Levered FCF Growth (YoY) 55.2% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -5% 0% 5% 10% 15% Supply Chain Management & Logistics Software Stock Market Return: January - February 2014 Supply Chain Management & Logistics S&P NASDAQ SEG SW Index
  • 29. SEG Software Index Category: Systems Management Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD CA Technologies CA $15,000.2 $13,917.2 $4,582.0 85.8% 34.2% -2.1% 3.0x 8.9x 3.1x 7.9x 1.8% Citrix Systems, Inc. CTXS $11,034.4 $10,299.7 $2,918.4 86.1% 22.2% 12.8% 3.5x 15.9x 3.2x 11.3x -3.9% Netscout Systems, Inc. NTCT $1,569.7 $1,424.7 $382.4 78.9% 23.5% 11.8% 3.7x 15.8x 3.4x 11.6x 31.7% Red Hat, Inc. RHT $11,180.8 $10,214.3 $1,482.1 84.8% 20.4% 16.0% 6.9x 33.7x 6.0x 21.3x 5.7% SolarWinds, Inc. SWI $3,469.7 $3,324.4 $335.4 91.7% 41.7% 24.7% 9.9x 23.8x 8.0x 17.1x 22.2% VMWare, Inc. VMW $41,376.6 $35,651.6 $5,207.0 86.0% 28.1% 13.1% 6.8x 24.4x 5.9x 16.6x 7.3% Median: $11,107.6 $10,257.0 $2,200.3 85.9% 25.8% 13.0% 5.3x 19.8x 4.6x 14.1x 6.5% TTM Revenue Growth 13.0% TTM EBITDA Growth 11.7% TTM Earnings Growth 15.4% Gross Profit Margin 85.9% EBITDA Margin 25.8% Net Income Margin 15.9% SG&A Expenses as a % of Total Revenue 43.2% R&D Expenses as a % of Total Revenue 17.0% Current Ratio 1.3 Quick Ratio 1.2 Cash as Percent of Market Cap 8.9% Avg Days Outstanding: Accounts Receivable 76 Avg Days Outstanding: Accounts Payable 61 Working Capital to TTM Operating Expense Ratio 0.3x Levered FCF Margin 20.6% Cash from Operations Growth (YoY) 10.7% Cash from Investing Growth (YoY) -35.6% Cash from Financing Growth (YoY) -9.5% Levered FCF Growth (YoY) 9.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% Systems Management Software Stock Market Return: January - February 2014 Systems Management S&P NASDAQ SEG SW Index
  • 30. SEG Software Index Category: Vertical - Finance Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Advent Software, Inc. ADVS $1,575.9 $1,847.1 $383.0 71.1% 18.6% 6.7% 4.8x 25.9x 4.6x 13.2x -10.5% Broadridge Financial BR $4,510.2 $4,794.0 $2,507.6 29.7% 19.9% 7.3% 1.9x 9.6x 1.8x 8.9x -3.9% Fidessa LSE:FDSA $1,619.6 $1,497.3 $462.2 21.2% 19.8% 0.1% 3.2x 16.3x n/a n/a 16.8% Jack Henry & Associates, Inc. JKHY $4,969.2 $4,823.4 $1,177.9 42.5% 34.0% 9.8% 4.1x 12.0x 3.8x 11.1x 0.3% MSCI, Inc. MSCI $5,097.0 $5,620.6 $1,035.7 68.3% 43.5% 9.0% 5.4x 12.5x 5.1x 11.9x 1.3% SS&C Corporation SSNC $3,284.6 $3,974.7 $712.7 45.4% 39.5% 29.1% 5.6x 14.1x 5.2x 12.5x -13.2% Median: $3,897.4 $4,384.3 $874.2 44.0% 27.0% 8.2% 4.5x 13.3x 4.6x 11.9x -1.8% TTM Revenue Growth 8.2% TTM EBITDA Growth 11.5% TTM Earnings Growth 21.0% Gross Profit Margin 44.0% EBITDA Margin 27.0% Net Income Margin 14.0% SG&A Expenses as a % of Total Revenue 12.8% R&D Expenses as a % of Total Revenue 7.6% Current Ratio 1.3 Quick Ratio 1.1 Cash as Percent of Market Cap 4.2% Avg Days Outstanding: Accounts Receivable 61 Avg Days Outstanding: Accounts Payable 10 Working Capital to TTM Operating Expense Ratio 0.1x Levered FCF Margin 16.0% Cash from Operations Growth (YoY) 11.8% Cash from Investing Growth (YoY) -12.4% Cash from Financing Growth (YoY) -121.2% Levered FCF Growth (YoY) 3.0% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) -12% -10% -8% -6% -4% -2% 0% 2% 4% 6% Vertical - Finance Software Stock Market Return:January - February 2014 Vertical - Finance S&P NASDAQ SEG SW Index
  • 31. SEG Software Index Category: Vertical - Other Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Blackbaud, Inc. BLKB $1,412.7 $1,554.1 $503.8 53.8% 20.0% 12.6% 3.1x 15.4x 2.8x 14.9x -15.8% Constellation TSX:CSU $4,683.1 $4,777.2 $1,131.5 31.9% 8.5% 36.6% 4.2x 49.9x 3.3x 16.3x 4.5% EPIQ Systems, Inc. EPIQ $505.6 $777.7 $438.7 52.0% 7.1% 27.2% 1.8x 25.0x 1.6x 7.3x -10.1% Guidewire Software, Inc. GWRE $3,590.7 $3,062.0 $303.9 52.6% 1.2% 25.1% 10.1x 832.3x 8.8x 82.4x 11.4% Micros Systems MCRS $4,177.0 $3,553.1 $1,304.0 52.4% 19.7% 8.2% 2.7x 13.9x 2.6x 11.5x -2.0% PROS Holdings PRO $971.1 $926.4 $144.8 70.2% 6.9% 23.0% 6.4x 92.5x 4.8x 61.5x -12.4% Sapiens International SPNS $342.5 $272.2 $135.4 37.2% 14.6% 18.8% 2.0x 13.8x 1.7x 15.5x 0.8% Silver Spring Networks, Inc. SSNI $840.4 $696.2 $326.9 35.3% -10.8% 66.1% 2.1x n/a 1.9x 43.8x -15.1% Tyler Technologies, Inc. TYL $3,087.7 $3,008.8 $416.6 46.4% 18.9% 14.7% 7.2x 38.2x 6.4x 28.1x -7.4% Median: $1,412.7 $1,554.1 $416.6 52.0% 8.5% 23.0% 3.1x 31.6x 2.8x 16.3x -7.4% TTM Revenue Growth 23.0% TTM EBITDA Growth -2.4% TTM Earnings Growth -2.1% Gross Profit Margin 52.0% EBITDA Margin 8.5% Net Income Margin 6.0% SG&A Expenses as a % of Total Revenue 26.6% R&D Expenses as a % of Total Revenue 13.0% Current Ratio 2.1 Quick Ratio 1.4 Cash as Percent of Market Cap 8.0% Avg Days Outstanding: Accounts Receivable 67 Avg Days Outstanding: Accounts Payable 39 Working Capital to TTM Operating Expense Ratio 0.3x Levered FCF Margin 12.6% Cash from Operations Growth (YoY) 17.7% Cash from Investing Growth (YoY) -86.6% Cash from Financing Growth (YoY) 185.9% Levered FCF Growth (YoY) 7.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) Income Statement Analysis (Median) -10% -8% -6% -4% -2% 0% 2% 4% 6% Vertical - Other Software Stock Market Return: January - February 2014 Vertical - Other S&P NASDAQ SEG SW Index
  • 32. SEG Software Index Select Software Industry M&A Transactions SEG SaaS Index SEG Internet Index Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 33. SEG SaaS Index: All Categories Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD SEG SaaS Index $1,361.9 $1,248.4 $177.4 69.6% -0.2% 27.6% 7.6x 36.4x 6.1x 28.4x 8.9% CRM & Marketing $776.7 $669.1 $177.0 71.1% 0.3% 31.0% 3.5x 179.0x 3.0x 28.4x 7.3% ERP & Supply Chain $1,361.9 $1,248.4 $177.4 69.6% -0.2% 35.4% 9.2x 27.7x 8.4x 42.5x 8.6% Vertically Focused $1,388.3 $1,353.8 $276.8 68.6% 12.0% 26.2% 6.0x 36.4x 5.1x 14.9x 11.7% Workforce Management $3,082.5 $2,993.0 $185.1 62.4% -7.4% 26.3% 11.2x 862.6x 9.1x 37.8x 8.9% SaaS Other $1,103.9 $1,134.2 $145.8 70.4% -5.8% 27.6% 7.6x 36.0x 6.1x 20.6x 10.7% Category Name TTM Revenue Growth 27.6% TTM EBITDA Growth -11.8% TTM Earnings Growth -35.4% Gross Profit Margin 69.6% EBITDA Margin -0.2% Net Income Margin -6.4% SG&A Expenses as a % of Total Revenue 57.5% R&D Expenses as a % of Total Revenue 18.0% Current Ratio 2.4 Quick Ratio 2.3 Cash as Percent of Market Cap 9.4% Avg Days Outstanding: Accounts Receivable 63 Avg Days Outstanding: Accounts Payable 33 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 8.3% Cash from Operations Growth (YoY) 18.8% Cash from Investing Growth (YoY) -13.6% Cash from Financing Growth (YoY) 86.1% Levered FCF Growth (YoY) 11.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -5% 0% 5% 10% 15% SEG SaaS Index Stock Market Return: January - February 2014 DOW S&P NASDAQ SEG SaaS
  • 34. SEG SaaS Index Category: CRM & Marketing Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Bazaarvoice, Inc BV $498.0 $423.3 $176.1 67.9% -20.0% 32.1% 2.4x n/a 2.2x n/a -13.0% Constant Contact CTCT $845.3 $722.1 $285.4 71.4% 10.7% 13.2% 2.5x 23.7x 2.2x 12.3x -8.8% Cvent NYSE:CVT $1,592.5 $1,434.8 $111.1 70.8% 5.2% 33.1% 12.9x 249.8x 10.3x 108.6x 2.1% LivePerson LPSN $708.1 $616.2 $177.8 76.1% 3.2% 13.0% 3.5x 108.2x 3.1x 28.4x -11.0% Marketo MKTO $1,609.3 $1,488.5 $95.9 60.4% -42.2% 64.2% 15.5x n/a 11.1x n/a 77.5% Marin Software MRIN $377.9 $279.7 $77.3 59.8% -38.3% 29.8% 3.6x n/a 2.9x n/a 12.6% Salesforce.com CRM $37,609.1 $39,278.9 $4,071.0 76.2% 2.0% 33.5% 9.6x 471.3x 7.4x 43.9x 13.7% Vocus VOCS $282.1 $326.2 $186.9 79.6% -1.5% 9.4% 1.7x n/a 1.8x 14.4x 19.4% Median: $776.7 $669.1 $177.0 71.1% 0.3% 31.0% 3.5x 179.0x 3.0x 28.4x 7.3% TTM Revenue Growth 31.0% TTM EBITDA Growth -30.8% TTM Earnings Growth -37.7% Gross Profit Margin 71.1% EBITDA Margin 0.3% Net Income Margin -5.7% SG&A Expenses as a % of Total Revenue 67.9% R&D Expenses as a % of Total Revenue 16.0% Current Ratio 2.3 Quick Ratio 2.2 Cash as Percent of Market Cap 12.3% Avg Days Outstanding: Accounts Receivable 66 Avg Days Outstanding: Accounts Payable 33 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 6.5% Cash from Operations Growth (YoY) 2.4% Cash from Investing Growth (YoY) -23.4% Cash from Financing Growth (YoY) 235.0% Levered FCF Growth (YoY) -16.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% CRM & Marketing SaaS Stock Market Return: January - February 2014 CRM & Marketing S&P NASDAQ SEG SaaS
  • 35. SEG SaaS Index Category: ERP & Supply Chain Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD E2open, Inc EOPN $798.2 $790.8 $69.5 61.3% -26.8% -6.6% 11.4x n/a 9.2x n/a 14.7% Fleetmatics FLTX $1,361.9 $1,248.4 $177.4 75.3% 25.5% 39.2% 7.0x 27.7x 5.4x 20.3x -14.9% Netsuite N $8,595.4 $8,397.8 $414.5 67.4% -9.3% 34.2% 20.3x n/a 15.6x 199.4x 12.9% SciQuest SQI $703.0 $668.8 $90.2 69.6% -0.2% 35.8% 7.4x n/a 6.0x 29.6x 8.6% SPS Commerce SPSC $1,094.0 $962.7 $104.4 69.6% 9.4% 35.4% 9.2x 98.0x 7.6x 55.3x 5.3% Unit 4 ENXTAM:U $1,582.6 $1,742.4 $675.5 92.7% 18.6% 4.4% 2.6x 13.8x n/a n/a 1.7% Workday, Inc. WDAY $19,878.3 $18,473.1 $468.9 62.4% -22.9% 71.4% 39.4x n/a 25.2x n/a 34.4% Median: $1,361.9 $1,248.4 $177.4 69.6% -0.2% 35.4% 9.2x 27.7x 8.4x 42.5x 8.6% TTM Revenue Growth 35.4% TTM EBITDA Growth -20.8% TTM Earnings Growth -44.7% Gross Profit Margin 69.6% EBITDA Margin -0.2% Net Income Margin -5.2% SG&A Expenses as a % of Total Revenue 54.4% R&D Expenses as a % of Total Revenue 22.0% Current Ratio 2.1 Quick Ratio 1.9 Cash as Percent of Market Cap 5.3% Avg Days Outstanding: Accounts Receivable 62 Avg Days Outstanding: Accounts Payable 21 Working Capital to TTM Operating Expense Ratio 0.7x Levered FCF Margin 12.1% Cash from Operations Growth (YoY) 81.4% Cash from Investing Growth (YoY) 4.3% Cash from Financing Growth (YoY) -11.4% Levered FCF Growth (YoY) 15.9% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% ERP & Supply Chain SaaS Stock Market Return: January - February 2014 ERP & Supply Chain S&P NASDAQ SEG SaaS
  • 36. SEG SaaS Index Category: Vertically Focused Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Athenahealth, Inc ATHN $7,247.1 $7,406.2 $595.0 59.9% 9.2% 40.9% 12.4x 135.1x 9.9x 56.7x 47.4% DealerTrack TRAK $2,387.6 $2,425.0 $481.5 42.4% 12.0% 23.8% 5.0x 41.9x 3.0x 13.2x 11.7% Ebix Inc. EBIX $622.9 $644.6 $207.9 80.4% 40.3% 9.8% 3.1x 7.7x 3.1x 8.4x 13.3% Ellie Mae ELLI $856.3 $776.6 $128.5 74.5% 19.6% 26.2% 6.0x 30.9x 5.1x 16.5x 15.6% Medidata Solutions MDSO $3,472.4 $3,461.0 $276.8 74.7% 11.5% 26.8% 12.5x 108.6x 10.1x 42.3x 8.6% RealPage RP $1,388.3 $1,353.8 $377.0 60.7% 15.2% 17.0% 3.6x 23.7x 3.1x 12.9x -21.0% Textura Corp. TXTR $667.5 $592.3 $40.8 68.6% -81.5% 70.1% 14.5x n/a 8.9x n/a -10.2% Veeva Systems Inc. VEEV $4,398.6 $4,125.2 $187.1 59.9% 20.5% n/a 22.0x 107.3x 16.6x 77.8x 9.2% Median: $1,388.3 $1,353.8 $276.8 68.6% 12.0% 26.2% 6.0x 36.4x 5.1x 14.9x 11.7% TTM Revenue Growth 26.2% TTM EBITDA Growth -0.5% TTM Earnings Growth -23.2% Gross Profit Margin 68.6% EBITDA Margin 12.0% Net Income Margin 5.8% SG&A Expenses as a % of Total Revenue 40.5% R&D Expenses as a % of Total Revenue 13.5% Current Ratio 2.5 Quick Ratio 2.2 Cash as Percent of Market Cap 6.1% Avg Days Outstanding: Accounts Receivable 52 Avg Days Outstanding: Accounts Payable 27 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 9.4% Cash from Operations Growth (YoY) 17.5% Cash from Investing Growth (YoY) -60.5% Cash from Financing Growth (YoY) 438.9% Levered FCF Growth (YoY) 33.8% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) -10% -5% 0% 5% 10% 15% Vertically Focused SaaS Stock Market Return: January - February 2014 Vertically Focused S&P NASDAQ SEG SaaS
  • 37. SEG SaaS Index Category: Workforce Management Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Callidus Software Inc. CALD $554.8 $535.2 $112.3 57.5% 0.3% 18.3% 4.8x 1646.6x 4.2x 37.3x -5.6% Cornerstone OnDemand CSOD $3,082.5 $2,993.0 $185.1 71.1% -16.1% 57.0% 16.2x n/a 11.1x n/a 10.3% Halogen Software, Inc. TSX:HGN $230.8 $177.2 $48.0 74.8% -7.4% 26.3% 3.7x n/a 3.1x n/a -14.0% The Ultimate Software Group, Inc. ULTI $4,697.3 $4,616.8 $410.4 58.9% 14.3% 23.5% 11.2x 78.6x 9.1x 38.2x 8.9% Workday, Inc. WDAY $19,878.3 $18,473.1 $468.9 62.4% -22.9% 71.4% 39.4x n/a 25.2x n/a 34.4% Median: $3,082.5 $2,993.0 $185.1 62.4% -7.4% 26.3% 11.2x 862.6x 9.1x 37.8x 8.9% TTM Revenue Growth 26.3% TTM EBITDA Growth 18.6% TTM Earnings Growth 22.7% Gross Profit Margin 62.4% EBITDA Margin -7.4% Net Income Margin -21.8% SG&A Expenses as a % of Total Revenue 53.3% R&D Expenses as a % of Total Revenue 16.5% Current Ratio 2.0 Quick Ratio 1.9 Cash as Percent of Market Cap 9.5% Avg Days Outstanding: Accounts Receivable 70 Avg Days Outstanding: Accounts Payable 29 Working Capital to TTM Operating Expense Ratio 0.6x Levered FCF Margin 11.6% Cash from Operations Growth (YoY) 73.7% Cash from Investing Growth (YoY) -1.9% Cash from Financing Growth (YoY) 65.4% Levered FCF Growth (YoY) 69.8% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Workforce Management SaaS Stock Market Return: January - February 2014 Workforce Management S&P NASDAQ SEG SaaS
  • 38. SEG SaaS Index Category: Other Public SaaS Companies Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Benefitfocus, Inc. BNFT $1,584.8 $1,507.6 $96.7 42.5% -18.9% n/a 15.6x n/a 12.3x n/a 15.6% ChannelAdvisors ECOM $1,103.9 $1,002.5 $68.0 73.4% -15.8% 26.9% 14.7x n/a 11.8x n/a 10.7% Concur CNQR $6,991.1 $6,799.8 $586.1 69.2% 6.2% 26.8% 11.6x 186.3x 9.3x 57.8x 22.2% Covisint Corporation COVS $403.0 $348.3 $98.4 44.5% -27.5% 13.9% 3.5x n/a 3.2x n/a -14.5% Demandware, Inc. DWRE $2,599.0 $2,323.6 $103.7 73.0% -15.8% 30.5% 22.4x n/a 16.1x n/a 16.0% FireEye, Inc. FEYE $11,797.6 $11,623.7 $161.6 70.4% -88.5% 93.9% 72.0x n/a 28.6x n/a 108.2% inContact, Inc. SAAS $500.1 $459.0 $130.0 48.2% -1.5% 17.9% 3.5x n/a 3.0x 204.7x 12.5% IntraLinks Holdings IL $642.7 $632.5 $234.5 72.3% 12.2% 8.2% 2.7x 22.1x 2.6x 16.2x -3.3% J2 Global JCOM $2,393.6 $2,340.7 $520.8 83.3% 43.3% 40.2% 4.5x 10.4x 4.0x 9.1x 4.1% Jive Software, Inc JIVE $563.6 $463.8 $145.8 62.2% -41.0% 28.2% 3.2x n/a 2.7x n/a -25.5% Liquid Holdings Group, LLC LIQD $117.5 n/a $4.8 43.7% n/a 37.4% n/a n/a n/a n/a -31.3% OpenTable, Inc. OPEN $1,868.7 $1,754.1 $190.1 74.6% 30.6% 17.6% 9.2x 30.2x 7.8x 20.6x 2.1% Qualys, Inc. QLYS $879.8 $783.4 $108.0 77.2% 11.0% 18.1% 7.3x 65.7x 6.0x 36.4x 17.0% Rally Software Development, Inc. RALY $485.6 $390.7 $70.2 78.1% -20.9% 33.5% 5.6x n/a 4.5x n/a 2.8% RingCentral, Inc. RNG $1,347.6 $1,266.0 $160.5 61.7% -20.0% 40.1% 7.9x n/a 6.2x n/a 21.4% Service-now.com NOW $9,603.3 $9,383.5 $424.7 63.4% -10.1% 74.2% 22.1x n/a 14.6x 220.1x 22.2% Tableau Software DATA $5,947.7 $5,695.1 $232.4 92.0% 4.5% 82.0% 24.5x 541.4x 17.3x n/a 37.8% Tangoe TNGO $727.4 $686.3 $188.9 55.0% 8.7% 22.3% 3.6x 41.8x 3.1x 18.2x 5.3% Zix Corporation ZIXI $282.1 $254.6 $48.1 84.2% 25.1% 11.0% 5.3x 21.0x 4.8x 17.6x -1.1% Median: $1,103.9 $1,134.2 $145.8 70.4% -5.8% 27.6% 7.6x 36.0x 6.1x 20.6x 10.7% TTM Revenue Growth 27.6% TTM EBITDA Growth -42.0% TTM Earnings Growth -58.9% Gross Profit Margin 70.4% EBITDA Margin -5.8% Net Income Margin -17.4% SG&A Expenses as a % of Total Revenue 61.4% R&D Expenses as a % of Total Revenue 18.6% Current Ratio 2.7 Quick Ratio 2.5 Cash as Percent of Market Cap 9.8% Avg Days Outstanding: Accounts Receivable 68 Avg Days Outstanding: Accounts Payable 43 Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 7.6% Cash from Operations Growth (YoY) 19.4% Cash from Investing Growth (YoY) -24.3% Cash from Financing Growth (YoY) 98.9% Levered FCF Growth (YoY) -6.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) -10% -5% 0% 5% 10% 15% Other Public SaaS Companies SaaS Stock Market Return: January - February 2014 Other SaaS S&P NASDAQ SEG SaaS
  • 39. SEG Software Index Select Software Industry M&A Transactions SEG SaaS Index SEG Internet Index Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
  • 40. SEG Internet Index: All Categories Category Name Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD SEG Internet Index $2,715.5 $2,456.8 $529.4 64.5% 9.6% 18.1% 3.7x 26.4x 3.1x 18.5x 6.8% Ad Tech & Lead Generation $2,017.3 $2,007.5 $543.6 62.5% 7.2% 25.5% 3.1x 27.1x 2.4x 18.1x -0.4% Commerce $587.9 $479.2 $450.0 41.6% 8.3% 14.0% 1.0x 14.9x 1.2x 11.0x -0.6% Content & Media $3,485.6 $3,393.2 $515.3 49.6% 16.4% 7.9% 3.6x 28.9x 4.0x 19.0x 14.5% Gaming $3,413.73 $2,906.0 $822.5 72.3% 35.2% 15.2% 3.8x 9.2x 2.6x 8.3x 8.8% Infrastructure $639.58 $492.9 $276.7 62.3% 6.6% 5.2% 1.5x 17.1x 1.5x 12.3x 4.8% Services $1,151.09 $1,122.0 $245.6 72.9% 7.4% 52.7% 4.5x 42.9x 3.6x 26.4x 3.7% Social $8,844.37 $8,628.2 $664.9 66.6% 10.9% 57.2% 16.0x 65.0x 12.5x 42.9x 13.9% Travel $5,623.80 $5,091.3 $868.4 83.0% 17.2% 21.0% 5.4x 25.6x 6.6x 24.6x 16.0% TTM Revenue Growth 25.5% TTM EBITDA Growth 16.7% TTM Earnings Growth 16.1% Gross Profit Margin 62.5% EBITDA Margin 7.2% Net Income Margin 2.0% SG&A Expenses as a % of Total Revenue 38.9% R&D Expenses as a % of Total Revenue 14.5% Current Ratio 2.6 Quick Ratio 2.5 Cash as Percent of Market Cap 14.6% Avg Days Outstanding: Accounts Receivable 38 Avg Days Outstanding: Accounts Payable 49 Working Capital to TTM Operating Expense Ratio 0.6 Levered FCF Margin 9.2% Cash from Operations Growth (YoY) 12.6% Cash from Investing Growth (YoY) -22.7% Cash from Financing Growth (YoY) 49.6% Levered FCF Growth (YoY) 9.4% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% SEG Internet Index Stock Market Return: January - February 2014 DOW S&P NASDAQ SEG Internet Index
  • 41. SEG Internet Index Category: Ad Tech and Lead Generation Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Angie's List, Inc. ANGI $813.8 $772.9 $245.6 73.0% -9.8% 57.7% 3.1x n/a 2.4x 127.3x 2.4% Baidu.com, Inc. BIDU $59,877.4 $56,817.1 $5,276.5 71.4% 39.8% 43.2% 10.8x 27.1x 7.4x 23.7x -5.0% Bankrate, Inc. RATE $2,069.5 $2,136.4 $457.4 67.0% 23.8% 0.1% 4.7x 19.6x 4.0x 14.4x 15.4% Criteo SA CRTO $3,040.1 $2,733.3 $611.4 35.4% 5.4% 63.3% 4.5x 82.2x n/a n/a 62.3% Conversant, Inc. CNVR $1,659.6 $1,718.3 $573.1 68.0% 36.1% -13.3% 3.0x 8.3x 2.8x 7.5x 7.6% eHealth, Inc. EHTH $893.8 $786.8 $179.2 97.0% 6.5% 15.2% 4.4x 68.1x 3.7x 36.8x 0.9% Google Inc. GOOG $408,520.2 $357,605.2 $59,825.0 56.8% 30.1% 19.2% 6.0x 19.8x 5.2x 13.9x 9.2% Groupon GRPN $5,677.7 $4,444.6 $2,573.7 58.3% 5.4% 10.2% 1.7x 31.7x 1.4x 15.3x -29.9% InterActiveCorp IACI $6,374.3 $6,433.3 $3,023.0 66.9% 18.0% 7.9% 2.1x 11.8x 2.0x 9.9x 14.5% LinkedIn LNKD $24,593.1 $22,268.8 $1,528.5 86.7% 10.9% 57.2% 14.6x 133.6x 10.5x 42.9x -1.7% Marchex Inc. MCHX $421.2 $390.3 $152.6 39.8% 4.5% 10.3% 2.6x 56.5x 2.2x 25.4x 20.3% QuinStreet QNST $286.6 $249.6 $297.8 17.9% 9.0% -9.5% 0.8x 9.3x 0.9x 7.7x -25.1% ReachLocal, Inc. RLOC $293.9 $213.7 $514.1 50.1% 4.4% 12.9% 0.4x 9.5x 0.4x 8.7x -17.3% Rocket Fuel, Inc. FUEL $1,965.1 $1,878.7 $240.6 47.8% -4.3% 125.7% 7.8x n/a 4.3x n/a -5.7% SINA Corporation SINA $4,561.3 $3,977.4 $665.1 59.2% 7.9% 25.7% 6.0x 76.1x 4.7x 30.7x -19.4% Sohu.com Inc. SOHU $3,263.1 $2,811.3 $1,400.3 65.7% 21.8% 31.2% 2.0x 9.2x 1.6x 101.5x 16.0% Tree.Com, Inc. TREE $376.6 $288.9 $126.8 94.9% 5.3% 97.6% 2.3x 42.9x 1.9x 14.7x 3.7% Tremor, Inc. TRMR $215.5 $122.8 $131.8 40.9% -5.5% 25.3% 0.9x n/a 0.8x n/a -23.6% Yandex YNDX $12,137.1 $11,618.1 $1,202.3 73.2% 41.9% 37.3% 9.7x 23.1x 7.9x 18.1x -12.0% YuMe YUME $204.0 $154.5 $151.1 46.9% 3.5% 29.5% 1.0x 29.0x 0.8x 30.0x -13.2% Median: $2,017.3 $2,007.5 $543.6 62.5% 7.2% 25.5% 3.1x 27.1x 2.4x 18.1x -0.4% TTM Revenue Growth 25.5% TTM EBITDA Growth 17.1% TTM Earnings Growth 8.5% Gross Profit Margin 62.5% EBITDA Margin 7.2% Net Income Margin 0.6% SG&A Expenses as a % of Total Revenue 38.3% R&D Expenses as a % of Total Revenue 9.3% Current Ratio 3.0x Quick Ratio 2.9x Cash as Percent of Market Cap 13.0% Avg Days Outstanding: Accounts Receivable 48.4x Avg Days Outstanding: Accounts Payable 53.8x Working Capital to TTM Operating Expense Ratio 0.6x Levered FCF Margin 8.3% Cash from Operations Growth (YoY) 8.6% Cash from Investing Growth (YoY) 0.7% Cash from Financing Growth (YoY) 68.2% Levered FCF Growth (YoY) -1.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -8% -6% -4% -2% 0% 2% 4% 6% Internet Ad Tech and Lead Generation Stock Market Return: January - February 2014 Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index
  • 42. SEG Internet Index Category: Commerce Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD 1-800-FLOWERS.COM, Inc. FLWS $337.7 $341.3 $753.9 41.6% 6.2% 4.5% 0.5x 7.4x 0.4x 6.0x -0.6% 58.com Inc. WUBA $3,756.6 $3,445.5 $145.7 94.2% 13.2% 67.3% 23.6x 178.7x 15.5x 76.5x 24.5% Amazon.com, Inc. AMZN $166,299.9 $159,988.9 $74,452.0 27.2% 4.8% 21.9% 2.1x 45.1x 1.8x 23.2x -9.0% Bitauto Holdings Limited BITA $1,659.9 $1,556.0 $214.1 75.0% 19.5% 41.0% 7.3x 37.2x 5.5x 28.1x 28.1% BlueNile NILE $449.4 $334.1 $450.0 18.6% 3.5% 12.5% 0.7x 21.1x 0.7x 12.7x -24.1% DangDang DANG $1,131.4 $932.1 $1,044.8 17.4% -2.4% 21.8% 0.9x n/a 0.7x n/a 44.2% Digital River Inc. DRIV $587.9 $294.2 $389.7 66.0% 8.3% 5.2% 0.8x 9.0x 0.8x 5.6x -3.4% eBay Inc. EBAY $76,086.9 $71,184.9 $16,047.0 68.6% 29.7% 14.0% 4.4x 14.9x 3.9x 11.9x 9.0% GeekNet GKNT $96.9 $43.8 $138.3 19.6% 0.8% 16.3% 0.3x 39.3x 0.3x 9.5x -19.2% Liquidity Services, Inc. LQDT $827.2 $725.8 $505.6 42.0% 17.4% 2.9% 1.4x 8.3x 1.4x 7.0x 14.1% Mecox Lane Limited MCOX $49.7 $32.3 $103.9 37.9% -16.3% -38.9% 0.3x n/a n/a n/a 14.0% Mercadolibre, Inc. MELI $4,599.9 $4,402.8 $472.6 72.5% 35.0% 26.5% 9.3x 26.6x 8.9x 25.8x 0.7% Overstock.com, Inc. OSTK $471.3 $322.6 $1,304.2 19.0% 1.7% 18.6% 0.2x 14.3x 0.2x 7.0x -33.5% PetMed Express, Inc. PETS $275.0 $233.5 $235.9 33.2% 12.4% 1.4% 1.0x 8.0x 1.0x 8.0x -16.0% Stamps.com STMP $566.4 $479.2 $127.8 78.5% 28.6% 10.5% 3.7x 13.1x 3.5x 11.0x -15.8% Median: $587.9 $479.2 $450.0 41.6% 8.3% 14.0% 1.0x 14.9x 1.2x 11.0x -0.6% TTM Revenue Growth 14.0% TTM EBITDA Growth 12.3% TTM Earnings Growth 16.8% Gross Profit Margin 41.6% EBITDA Margin 8.3% Net Income Margin -1.0% SG&A Expenses as a % of Total Revenue 39.6% R&D Expenses as a % of Total Revenue 17.2% Current Ratio 2.8x Quick Ratio 2.6x Cash as Percent of Market Cap 21.4% Avg Days Outstanding: Accounts Receivable 61.3x Avg Days Outstanding: Accounts Payable 44.1x Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 10.0% Cash from Operations Growth (YoY) 6.3% Cash from Investing Growth (YoY) -63.5% Cash from Financing Growth (YoY) -57.5% Levered FCF Growth (YoY) 10.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -8% -6% -4% -2% 0% 2% 4% 6% Internet Commerce Internet Stock Market Return: January - February 2014 Commerce S&P NASDAQ SEG Internet Index
  • 43. SEG Internet Index Category: Content & Media Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD AOL, Inc. AOL $3,478.5 $3,393.2 $2,319.9 29.3% 18.8% 5.8% 1.5x 7.8x 1.4x 6.6x -2.3% DemandMedia DMD $414.0 $356.7 $394.6 48.1% 11.8% 3.7% 0.9x 7.7x 0.9x 6.5x -13.7% InterActiveCorp IACI $6,374.3 $6,433.3 $3,023.0 66.9% 18.0% 7.9% 2.1x 11.8x 2.0x 9.9x 14.5% Netflix NFLX $26,651.9 $25,982.1 $4,374.6 29.5% 6.3% 21.2% 5.9x 93.9x 4.9x 46.6x 22.8% Pandora P $7,387.6 $7,043.2 $588.3 37.0% -7.1% 53.5% 12.0x n/a 7.8x 138.1x 39.8% Shutterstock, Inc. SSTK $3,485.6 $3,275.8 $235.5 61.5% 20.0% 38.9% 13.9x 69.7x 10.6x 47.7x 19.7% TheStreet.com, Inc. TST $100.2 $45.3 $54.5 49.6% 0.6% 7.4% 0.8x 130.8x n/a n/a 30.9% WebMD Health Corp. WBMD $1,736.4 $1,863.8 $515.3 59.3% 16.4% 9.7% 3.6x 22.1x 3.2x 12.1x 15.1% XO Group XOXO $322.4 $236.2 $133.4 83.0% 18.0% 4.3% 1.8x 9.8x 1.7x 7.7x -18.7% Yahoo! Inc. YHOO $39,033.2 $36,828.6 $4,680.4 71.2% 22.0% -6.1% 7.9x 35.7x 8.1x 25.9x -2.3% Youku YOKU $5,561.3 $5,037.1 $500.2 27.0% 10.6% 68.7% 10.1x 95.3x 7.3x 297.9x 4.4% Median: $3,485.6 $3,393.2 $515.3 49.6% 16.4% 7.9% 3.6x 28.9x 4.0x 19.0x 14.5% TTM Revenue Growth 7.9% TTM EBITDA Growth 30.1% TTM Earnings Growth -38.0% Gross Profit Margin 49.6% EBITDA Margin 16.4% Net Income Margin 2.9% SG&A Expenses as a % of Total Revenue 36.3% R&D Expenses as a % of Total Revenue 9.2% Current Ratio 2.6x Quick Ratio 2.4x Cash as Percent of Market Cap 9.4% Avg Days Outstanding: Accounts Receivable 44.9x Avg Days Outstanding: Accounts Payable 26.4x Working Capital to TTM Operating Expense Ratio 0.7x Levered FCF Margin 10.9% Cash from Operations Growth (YoY) 15.5% Cash from Investing Growth (YoY) -59.8% Cash from Financing Growth (YoY) 84.9% Levered FCF Growth (YoY) 26.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% Internet Content & Media Stock Market Return: January - February 2014 Content & Media S&P NASDAQ SEG Internet Index
  • 44. SEG Internet Index Category: Gaming Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD ChangYou.com CYOU $1,550.2 $1,426.4 $737.9 82.9% 46.6% 18.4% 1.9x 4.2x 1.8x 8.4x -9.3% Giant Interactive GA $2,726.8 $2,233.3 $379.4 90.3% 63.6% 11.9% 5.9x 9.3x 5.4x 8.3x 1.7% Netease NTES $8,981.1 $5,993.6 $1,519.0 73.0% 49.1% 12.1% 3.9x 8.0x 3.4x 7.1x -9.9% NCSoft KOSE:A036 $3,564.4 $3,000.6 $771.7 71.6% 34.7% 36.3% 3.9x 11.2x n/a n/a -23.1% Perfect World PWRD $1,116.3 $751.7 $465.0 77.1% 20.3% -0.6% 1.6x 8.0x 1.3x 7.3x 27.2% Sohu.com Inc. SOHU $3,263.1 $2,811.3 $1,400.3 65.7% 21.8% 31.2% 2.0x 9.2x 1.6x 101.5x 16.0% Tencent Holdings SEHK:700 $147,992.7 $144,732.2 $9,086.3 55.3% 35.6% 40.2% 15.9x 44.7x n/a n/a 23.3% Zynga, Inc. ZNGA $4,437.0 $3,311.5 $873.3 71.6% 8.4% -31.8% 3.8x 45.0x 4.1x 36.1x 28.1% Median: $3,413.7 $2,906.0 $822.5 72.3% 35.2% 15.2% 3.8x 9.2x 2.6x 8.3x 8.8% TTM Revenue Growth 15.2% TTM EBITDA Growth 11.8% TTM Earnings Growth 18.2% Gross Profit Margin 72.3% EBITDA Margin 35.2% Net Income Margin 26.5% SG&A Expenses as a % of Total Revenue 25.7% R&D Expenses as a % of Total Revenue 16.3% Current Ratio 2.2x Quick Ratio 2.0x Cash as Percent of Market Cap 30.1% Avg Days Outstanding: Accounts Receivable 17.9x Avg Days Outstanding: Accounts Payable 66.8x Working Capital to TTM Operating Expense Ratio 0.9x Levered FCF Margin 8.9% Cash from Operations Growth (YoY) 23.9% Cash from Investing Growth (YoY) -17.0% Cash from Financing Growth (YoY) -50.4% Levered FCF Growth (YoY) -38.0% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% Internet Gaming Stock Market Return: January - February 2014 Gaming S&P NASDAQ SEG Internet Index
  • 45. SEG Internet Index Category: Infrastructure Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD 8x8, Inc. EGHT $929.7 $755.7 $124.5 70.3% 9.6% 24.2% 6.1x 63.5x 5.0x 47.9x 6.1% Akamai Technologies, Inc. AKAM $10,942.3 $10,268.4 $1,577.9 67.6% 37.5% 14.8% 6.5x 17.3x 5.5x 12.9x 31.4% Brightcove Inc. BCOV $279.1 $243.0 $109.9 66.5% -1.4% 24.9% 2.2x n/a 1.9x n/a -30.8% BroadSoft, Inc. BSFT $852.0 $780.0 $178.5 76.8% 0.4% 8.3% 4.4x 993.6x 3.8x 14.7x 13.5% Digital River Inc. DRIV $587.9 $294.2 $389.7 66.0% 8.3% 5.2% 0.8x 9.0x 0.8x 5.6x -3.4% Envivio, Inc. ENVI $97.9 $48.0 $38.4 64.5% -31.5% -18.1% 1.2x n/a 1.0x n/a 4.0% Harmonic Inc HLIT $639.6 $469.0 $461.9 47.9% 5.0% -12.9% 1.0x 20.2x 1.0x 7.3x -11.3% Interactive Intelligence, Inc. ININ $1,610.5 $1,512.5 $318.2 64.2% 8.8% 34.1% 4.8x 53.8x 4.1x 70.5x 19.9% Limelight Networks, Inc. LLNW $211.3 $93.7 $173.4 48.8% -5.9% -3.8% 0.5x n/a 0.6x n/a 8.5% Mitel Networks Corp. MITL $932.0 $1,150.4 $579.4 56.6% 15.3% -2.1% 2.0x 13.0x 1.5x 9.7x -1.7% Polycom, Inc. PLCM $1,828.8 $1,549.9 $1,368.4 57.9% 8.7% -1.7% 1.1x 13.0x 1.1x 7.7x 19.7% Rovi Corporation ROVI $2,428.9 $3,099.9 $538.1 82.8% 33.7% 2.3% 5.8x 17.1x 5.8x 12.3x 25.1% SeaChange International Inc. SEAC $346.5 $229.4 $155.3 56.7% 11.4% -0.4% 1.5x 13.0x 1.6x 14.9x -13.2% ShoreTel, Inc. SHOR $540.0 $492.9 $332.7 60.0% 3.1% 17.0% 1.5x 47.1x 1.4x 17.7x -5.0% Sonus Networks, Inc SONS $993.6 $784.9 $276.7 62.3% -0.1% 8.9% 2.8x n/a 2.6x n/a 21.1% Synacor, Inc SYNC $71.9 $39.8 $114.6 46.7% 4.3% -3.5% 0.3x 8.1x 0.3x 6.4x 4.8% Tucows Inc. TCX $149.0 $142.9 $129.9 24.7% 6.6% 13.3% 1.1x 16.6x 1.0x 11.0x 4.4% VeriSign VRSN $7,366.2 $7,016.9 $965.1 80.6% 61.0% 10.5% 7.3x 11.9x 6.9x 10.7x -8.2% Median: $639.6 $492.9 $276.7 62.3% 6.6% 5.2% 1.5x 17.1x 1.5x 12.3x 4.8% TTM Revenue Growth 5.2% TTM EBITDA Growth 12.3% TTM Earnings Growth 16.8% Gross Profit Margin 62.3% EBITDA Margin 6.6% Net Income Margin -1.0% SG&A Expenses as a % of Total Revenue 39.6% R&D Expenses as a % of Total Revenue 17.2% Current Ratio 2.8x Quick Ratio 2.6x Cash as Percent of Market Cap 21.4% Avg Days Outstanding: Accounts Receivable 61.3x Avg Days Outstanding: Accounts Payable 44.1x Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 10.0% Cash from Operations Growth (YoY) 6.3% Cash from Investing Growth (YoY) -63.5% Cash from Financing Growth (YoY) -57.5% Levered FCF Growth (YoY) 10.6% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% Internet Infrastructure Stock Market Return: January - February 2014 Infrastructure S&P NASDAQ SEG Internet Index
  • 46. SEG Internet Index Category: Services Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Angie's List, Inc. ANGI $813.8 $772.9 $245.6 73.0% -9.8% 57.7% 3.1x n/a 2.4x 127.3x 2.4% Bankrate RATE $2,069.5 $2,136.4 $457.4 67.0% 23.8% 0.1% 4.7x 19.6x 4.0x 14.4x 15.4% Carbonite, Inc. CARB $268.7 $203.3 $107.2 67.5% 3.7% 27.5% 1.9x 51.1x 1.7x 24.2x -14.4% LifeLock, Inc. LOCK $1,828.2 $1,655.6 $369.7 72.9% 7.4% 33.7% 4.5x 60.3x 3.6x 30.6x 26.3% Monster Worldwide, Inc. MWW $766.1 $867.2 $807.6 53.0% 13.9% -9.3% 1.1x 7.7x 1.1x 6.1x 12.9% Qihoo QIHU $13,458.2 $13,066.1 $552.4 87.6% 26.4% 91.5% 23.7x 89.5x 13.9x 28.5x 33.9% Shutterfly SFLY $2,086.2 $1,832.2 $783.6 52.8% 11.0% 22.3% 2.3x 21.3x 2.0x 10.8x 10.4% Tree.Com, Inc. TREE $376.6 $288.9 $126.8 94.9% 5.3% 97.6% 2.3x 42.9x 1.9x 14.7x 3.7% Trulia, Inc. TRLA $1,117.4 $1,122.0 $143.7 83.9% -4.1% 111.1% 7.8x n/a 4.5x 55.9x -14.9% VistaPrint VPRT $1,635.5 $1,777.7 $1,213.6 65.8% 11.4% 9.6% 1.5x 12.9x 1.3x 8.8x -10.8% Wix.com Ltd. WIX $1,151.1 $1,049.8 $80.5 81.0% -31.4% 84.2% 13.0x n/a 8.1x n/a 19.9% Xoom XOOM $1,055.7 $840.1 $122.2 68.8% 9.3% 52.7% 6.9x 74.0x 5.3x 85.0x 3.3% Zillow Z $3,274.8 $2,979.6 $197.5 90.5% -2.8% 69.1% 15.1x n/a 10.1x 75.8x 1.9% Median: $1,151.1 $1,122.0 $245.6 72.9% 7.4% 52.7% 4.5x 42.9x 3.6x 26.4x 3.7% TTM Revenue Growth 52.7% TTM EBITDA Growth 29.9% TTM Earnings Growth 37.6% Gross Profit Margin 72.9% EBITDA Margin 7.4% Net Income Margin -0.1% SG&A Expenses as a % of Total Revenue 55.7% R&D Expenses as a % of Total Revenue 18.4% Current Ratio 2.2x Quick Ratio 2.0x Cash as Percent of Market Cap 11.1% Avg Days Outstanding: Accounts Receivable 22.1x Avg Days Outstanding: Accounts Payable 51.4x Working Capital to TTM Operating Expense Ratio 0.5x Levered FCF Margin 7.1% Cash from Operations Growth (YoY) 12.6% Cash from Investing Growth (YoY) -38.2% Cash from Financing Growth (YoY) 232.7% Levered FCF Growth (YoY) 26.1% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -8% -6% -4% -2% 0% 2% 4% 6% 8% Internet Services Stock Market Return: January - February 2014 Services S&P NASDAQ SEG Internet Index
  • 47. SEG Internet Index Category: Social Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Facebook FB $174,555.4 $163,582.4 $7,872.0 77.7% 49.9% 54.7% 20.8x 41.6x 14.5x 24.2x 25.1% LinkedIn LNKD $24,593.1 $22,268.8 $1,528.5 86.7% 10.9% 57.2% 14.6x 133.6x 10.5x 42.9x -1.7% Mail.ru Group LSE:MAIL $8,844.4 $8,628.2 $834.1 66.6% 60.8% 31.8% 10.3x 17.0x n/a n/a -4.1% Renren Inc RENN $1,367.5 $459.0 $192.6 63.7% -54.1% 20.3% 2.4x n/a 3.2x n/a 13.9% Twitter, Inc. TWTR $29,909.3 $27,872.9 $664.9 59.9% -81.4% 109.8% 41.9x n/a 22.5x 153.3x -18.7% Yelp, Inc. YELP $6,563.3 $6,173.5 $233.0 92.9% 1.0% 69.4% 26.5x 2544.0x 17.2x 105.0x 39.0% YY, Inc. YY $4,156.4 $3,851.6 $241.4 53.6% 24.5% 121.9% 16.0x 65.0x 9.8x 27.7x 43.5% Median: $8,844.4 $8,628.2 $664.9 66.6% 10.9% 57.2% 16.0x 65.0x 12.5x 42.9x 13.9% TTM Revenue Growth 57.2% TTM EBITDA Growth 73.8% TTM Earnings Growth 23.9% Gross Profit Margin 66.6% EBITDA Margin 10.9% Net Income Margin 1.8% SG&A Expenses as a % of Total Revenue 48.9% R&D Expenses as a % of Total Revenue 21.9% Current Ratio 11.7x Quick Ratio 11.2x Cash as Percent of Market Cap 7.4% Avg Days Outstanding: Accounts Receivable 46.7x Avg Days Outstanding: Accounts Payable 43.6x Working Capital to TTM Operating Expense Ratio 1.7x Levered FCF Margin 25.0% Cash from Operations Growth (YoY) 123.7% Cash from Investing Growth (YoY) -118.1% Cash from Financing Growth (YoY) 703.4% Levered FCF Growth (YoY) n/a Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) March 2014 Monthly Flash Report Income Statement Analysis (Median) -10% -5% 0% 5% 10% 15% 20% 25% Internet Social Stock Market Return: January - February 2014 Social S&P NASDAQ SEG Internet Index
  • 48. SEG Internet Index Category: Travel Company Name Ticker Market Cap EV TTM Revenue TTM Gross Margin TTM EBITDA Margin TTM Revenue Growth EV/ Revenue EV/ EBITDA Forward EV/ Revenue Forward EV/ EBITDA YTD Ctrip CTRP $7,008.8 $6,324.6 $889.8 74.3% 17.4% 29.5% 7.1x 41.0x 5.5x 41.7x 9.3% Expedia EXPE $10,166.4 $10,547.6 $4,771.3 78.2% 13.7% 18.4% 2.2x 16.1x 1.9x 10.4x 13.5% HomeAway AWAY $4,238.8 $3,858.0 $346.5 84.2% 17.1% 23.6% 11.1x 65.2x 8.9x 31.6x 14.3% MakeMyTrip MMYT $972.0 $906.3 $249.7 23.8% -6.7% 13.2% 3.6x n/a 7.7x 210.2x 30.4% Orbitz OWW $1,045.3 $1,371.1 $847.0 81.8% 13.7% 8.8% 1.6x 11.8x 1.6x 8.8x 35.9% Priceline PCLN $70,331.2 $65,481.0 $6,793.3 84.3% 37.6% 29.1% 9.6x 25.6x 7.7x 19.6x 17.8% Travelzoo TZOO $354.1 $287.5 $158.2 89.0% 17.2% 4.7% 1.8x 10.5x 1.8x 8.7x 12.3% TripAdvisor Inc TRIP $14,257.4 $14,143.5 $944.7 98.1% 32.9% 23.8% 15.0x 45.5x 11.9x 29.6x 24.6% Median: $5,623.8 $5,091.3 $868.4 83.0% 17.2% 21.0% 5.4x 25.6x 6.6x 24.6x 16.0% TTM Revenue Growth 21.0% TTM EBITDA Growth 5.6% TTM Earnings Growth 12.0% Gross Profit Margin 83.0% EBITDA Margin 17.2% Net Income Margin 11.8% SG&A Expenses as a % of Total Revenue 51.1% R&D Expenses as a % of Total Revenue 15.3% Current Ratio 1.8x Quick Ratio 1.6x Cash as Percent of Market Cap 10.4% Avg Days Outstanding: Accounts Receivable 37.6x Avg Days Outstanding: Accounts Payable 143.1x Working Capital to TTM Operating Expense Ratio 0.4x Levered FCF Margin 19.5% Cash from Operations Growth (YoY) 9.4% Cash from Investing Growth (YoY) -38.4% Cash from Financing Growth (YoY) 26.6% Levered FCF Growth (YoY) 13.2% Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report Income Statement Analysis (Median) Balance Sheet Analysis (Median) Cash Flow Statement Analysis (Median) -10% -5% 0% 5% 10% 15% 20% Internet Travel Stock Market Return: January - February 2014 Travel S&P NASDAQ SEG Internet Index