Marketplaces by Torch Jul 2014

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Presentation about valuation of marketplace businesses, overview of key sectors like retail, food / restaurants / takeaway, logistics / taxi / minicabs, home services / tradesmen. Lists of private transactions with publicly available metrics.

Published in: Economy & Finance

Marketplaces by Torch Jul 2014

  1. 1. LONDON - BERLIN - SAN FRANCISCO Marketplaces Torch perspective July 2014
  2. 2. 2 Table of contents 1 Public valuation of marketplaces 2 What drives the value of marketplaces 3 Sectors with fast growing marketplaces Appendix A. Relevant transactions B. Relevant companies
  3. 3. 3 Executive summary Marketplace universe shows potential for super-premium multiples1 • Marketplaces with high margin and growth such as Zillow and Rightmove (16.0x & 12.9x CY14 EV/Rev respectively) demonstrate the potential for very high multiples The relative size of the marketplace is important2 • The greater the gap between the market leader and the second largest player, the higher the pricing power that the market leader can exert on its consumers. This leads to considerably higher margins • The relationship between relative size and pricing power is demonstrated by Rightmove, which is 4.0x larger than the #2 player – between 2004 and 2012, Rightmove increased its fees charged to estate agents by 400% Other platform & market specific factors also drive valuation3 • Platform specific factors include whether the marketplace closes the payments loop or not and inherent consumer stickiness • Market specific factors include: “local” focus, number of players in the supply side, size of the market and online penetration Certain sectors are more conducive to fast growing marketplaces4 • These include e-commerce, takeaway, restaurant reservation, tradesmen and taxi/minicabs
  4. 4. 4 1 2013-2015 revenue CAGR 2013-2015 revenue CAGR Relationship between EBITDA multiple and revenue growth2 The marketplace universe shows the potential for super-premium multiples Relationship between revenue multiple and revenue growth 2015 EV/Revenue 2015 EV/EBITDA 1 Public valuation of marketplaces 1.1 Growth and valuation Amadeus carsales.com eBay Expedia HomeAway Info Edge Moneysupermarket OpenTable Orbitz priceline.com REA Shutterstock Trade ME Travelzoo Yelp Zillow 0.0x 5.0x 10.0x 15.0x 0% 10% 20% 30% 40% 50% 60% Amadeus OpenTable eBay Expedia HomeAway Moneysupermarket carsales.com Orbitz priceline.com REA Trade ME Travelzoo 5.0x 10.0x 15.0x 20.0x 25.0x 0% 5% 10% 15% 20% 25% 30% 35% Source: Capital IQ, broker research Notes: 1. As of 09/07/2014 2. Size of the bubble represents EBITDA 3. Outliers removed in chart 2 (non-meaningful multiples) being Zillow
  5. 5. 5 1 Relationship between revenue multiple and relative size Relationship between EBITDA multiple and relative size2 The relative size of the market leader versus its competitor(s) has an effect on valuation – typically, the greater the gap between #1 and #2, the higher the valuation of #1 1 Public valuation of marketplaces 1.2 Size does matter Relative size vs. #2 player by revenue 2015 EV/Revenue 2015 EV/EBITDA Relative size vs. #2 player by revenue Source: Capital IQ, broker research Notes: 1. As of 09/07/2014 2. Size of the bubble represents EBITDA 3. Outliers removed in chart 2 (non-meaningful multiples) being Zillow Rightmove Zillow REA OpenTable Moneysupermarket 0.0x 5.0x 10.0x 15.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x Rightmove REA OpenTable Moneysupermarket 5.0x 10.0x 15.0x 20.0x 25.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x
  6. 6. 6 1 Relationship between EBITDA margin and relative size This chart shows that a relative scale advantage in a marketplace leads to higher EBITDA margins - the effect of pricing power 1 Public valuation of marketplaces 1.3 Scale advantage translates to high margins The presence of high liquidity that comes from signing up a majority of consumers and suppliers in a platform leads to high level of defensibility which in turn translates to pricing power This is exemplified by Rightmove – between 2004 and 2012, the number of homes real estate agents (supply side) had to sell to cover Rightmove’s fees increased from 0.5 to 2.5 (Jefferies, January 2013) 2014 EBITDA margin % Relative size vs. #2 player by revenue Source: Capital IQ, broker research Notes: 1. As of 09/07/2014 2. Size of the bubble represents EBITDA Rightmove Zillow REA OpenTable Moneysupermarket 0% 20% 40% 60% 80% 100% 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x
  7. 7. 7 EV/ Revenue 2013-15 RevCAGR 2014 EBITDA margin EV/ EBITDA EV $m CY14 Mean: 8.4x CY15 Mean: 6.9x CY14 CY15 Key: 3,5704,959 1,147 2,531 2,504 59,9702,310 2,621 1,8001,5294,714 CY14 Mean: 20.5x CY15 Mean: 21.8x 5,287 1 Public valuation of marketplaces 1.4 Listed marketplaces 60,830 146,3221,356 20,464 Source: Capital IQ, broker research Notes: 1. As of 09/07/2014 2. Multiples <0 or >70 considered non-meaningful
  8. 8. Marketplace valuation drivers 8 There are a number of factors that drive the valuation of marketplaces Market size/shift to online • A large and growing market gives opportunity to build a substantial business with long-term growth prospects • Relatively low online penetration coupled with a rapid shift from offline to online and direct to intermediated offers even higher long-term growth potential Number of players on the supply side/market fragmentation • High number of suppliers with low level of vertical integration is valuable - leads to higher marketplace liquidity on the platform • Liquidity is the reasonable expectation that a transaction between a buyer and a seller will coalesce • Example – Just Eat (plenty of restaurants) vs. Moneysupermarket (relatively few suppliers) Frequency of use/customer stickiness • Marketplaces where consumers interact with the platform frequently are inherently more valuable • Example – Moneysupermarket (relatively low frequency of interaction) vs. Rightmove (high frequency of interaction) Market share/relative positioning/size vs. competitors • “Winner takes all” dynamics • Pricing power from being the largest player in the market • Example: Moneysupermarket (not significantly larger than #2) vs. OpenTable (4x larger than the #2 player) Closing the payment loop/strength in the value chain • Without this aspect, a marketplace becomes a lead generation model with less defensibility • Strong working capital dynamics – a marketplace that is in the payments flow usually has zero trade debtors on the balance sheet • Example – Just Eat (payments flow) vs. Rightmove (supply side monetisation) 2 What drives the value of marketplaces 2.1 Overview Relevant, real-time local content • A marketplace’s suppliers and buyers can be concentrated locally (e.g. food delivery) or not necessarily concentrated by location (e.g. hotel booking) • Example – Just Eat (very local) vs. Airbnb (geographically fragmented) 0 3 Fragmentation Payments flow Non-local Consumer stickiness opportunity Rightmove Just Eat Rated People Notonthehighstreet Livebookings Airbnb 0 3 Fragmentation Payments flow Non-local Consumer stickiness Growth opportunity Rightmove Just Eat Rated People Notonthehighstreet Livebookings Airbnb
  9. 9. 9 E-commerce/online shopping Food (booking platforms & takeaway) Player Vertical c.20% Largest player in the holiday letting market c.50% in the US $500-700bn globally (TTV) • High online penetration in main markets (US and Europe) • Significant shift from offline to online has already taken place c.$50bn globally (TTV) • High online penetration c.$500m+ globally in terms of revenue potential • Relatively low online penetration (15-20%) even in advanced market such as US. Majority still call restaurants to book Many-to-many market • High fragmentation – multiple businesses supplying to consumers • Minimal vertical integration c.350,000 independent restaurants in the US • c.78k are currently eligible for online reservations NM (Not meaningful #2 player, competition in other channels increasing, e.g. Amazon) NAc.4x (based on number of restaurants) • High, frequent, low value transactions • Average US OpenTable customer books a table at a restaurant c. 10 times per year Many-to-many market • Many consumers on the demand side and many homeowners/property managers on the supply side 2 What drives the value of marketplaces 2.2 Characteristics of leading marketplaces Number of players on the supply side Frequency of use/customer stickiness Relative positioning (online market share) Size vs. competitors (distance from #2 – by revenue) Closing of the payment loop Relevant, real-time local content Market size (online) • Payments flow through the platform from consumers to suppliers • Does not close the payments loop Clear leader in the UK c.$20bn+ globally (TTV) • Medium online penetration currently, likely further strong growth c.60,000 UK restaurants • Just Eat UK has c.20k+ restaurants in its UK network c.6x+ (based on number of orders vs. #2) • Consumers signed up for Just Eat use the platform frequently • Closes the payment loop – Just Eat is the merchant of record for restaurants • Not “local” focused – consumers can order from almost any supplier globally • Medium degree of local focus – consumers usually book restaurants within the city • Very high level of localness – consumers order from restaurants in the area Leisure & travel • Low level of local focus – buyers and suppliers from cross geographies interact • Medium level of interaction with the platform – users book holidays a few times a year Many-to-many model • Higher number of potential suppliers as it caters to the sublet economy • Internet enabled market Largest player in the market NA (Airbnb not considered comparable to HomeAway - its inventory is primary residences) • Closes the loop, platform is in the payments flow • Shift away from supply side subscription model to a transactional model Online penetration Source: Torch estimates, market research reports, broker research
  10. 10. 10 Player Vertical Real estate c.60% c.20% c.8% $1-2bn real estate advertising market in the UK • Subject to cyclical housing market dynamics • Current growth driven by shift from online to offline • Price increases in recent years have compounded market size $5-7bn real estate advertising market in the US • 55% real estate advertising was online in 2013 • Shift in residential housing market as real estate and lending markets have rebounded Medium c.16,000 real estate agents in UK Medium c.500,000 real estate agents in the US c.18% 4x (#1 player in the UK) 2x (#1 player in the US) NM (#2 player in the US market) NM (#2 player in the UK) • Medium to low frequency (while consumers generally move/buy houses infrequently, they “window shop” for houses quite frequently) • Customer loyalty increased however given the importance for consumers of a major life event such as buying/selling and moving – consumers spend significant time researching the market 2 What drives the value of marketplaces 2.3 Characteristics of leading marketplaces • Hyper local – consumers usually check for housing prices in their neighbourhoods • Payments for real estate do not flow through the platforms. Thus, these businesses are not “merchants of record” Price comparison c.40% 2.5x (based on traffic) • Medium level of local focus – consumers compare financial services within the UK market • Not in the payments flow: lead generation + pay per click model • Medium level of usage frequency given renewal cycle of financials products Medium-low number of suppliers • Plus, less price differentiation between financial products compared to others (flights, utilities etc.) $1bn+ in the UK • Has benefitted from change in consumer behaviour (consumers making smart and informed financial choices) Amount of players in the supply side Frequency of use/customer stickiness Relative positioning (online market share) Size vs. competitors (distance from #2 – by revenue) Closing of the payment loop Relevant, real-time local content Market size (online) Online penetration Source: Torch estimates, market research reports, broker research
  11. 11. Key metrics: $1.3bn in revenue & $115m in EBITDA in 2013 Trading stat: Mkt.cap: $4.1bn; Cash:$63m; EV/Rev=2.3x (CY14) Lead investors: 3 Sectors with fast growing marketplaces 3.1 E-commerce Non-exhaustive list French leader Key metrics: $895m of TTV in 2012. 56m unique visitors Lead investors: Key metrics: 8.5m visits per month. 1.7m members Lead investors: Core market dynamics:  High online penetration in the US/Europe and large online market ($500-700bn in TTV globally)  Relatively low level of local focus: consumers can order from suppliers who are not in the same region  Generally in the payments flow – the platform is often the merchant of record to suppliers  Relatively high frequency of use  Clear many-to-many dynamic with abundant suppliers Key metrics: c.35,000 registered users growing by 150 users/day Lead investors: Key metrics: c.£50m in TTV; 3,000+ curated suppliers Lead investors: Key metrics: $16bn in revenue & $4.8bn in EBITDA in 2013 Trading stat: Mkt.cap: $65bn; Cash:$8bn; EV/Rev=3.3x (CY14) Relevant acquisition: + 15 other countries (and Latin America via MercadoLibre) Map key: Country with HQ Social shopping marketplace, Sept -12 Marketleader + others
  12. 12. Key metrics: €300m in annual TTV; 55,000+ restaurants Investors: Acquired Hungyhouse.com in Jan 2013 NetherlandsMarketleader in Europe 3 Sectors with fast growing marketplaces 3.2 Online takeaway Non-exhaustive list + others French leader Key metrics: c.20,000 orders and £28m in revenue in 2013 Investors: Founder owned German leader + others Key metrics: c.500,000 orders; c.1,000 direct restaurants Investors/owner: Acquired by PagesJaunes in December 2012 (price undisclosed) Key metrics: N/A Investors: Deutsche Investission; Moraun Investments, Macquarie and others Other global players Key metrics: c.12,000 direct restaurants Investors/owner: Core market dynamics:  Large market ($20bn+ in TTV) with 55% online penetration  High level of local focus – consumers tend to order takeout from suppliers in the same area  Many-to-many dynamics on demand and supply side/high level of fragmentation  Inherently sticky customers  Players in the market are in the payments flow Map key: Country with HQ (Lieferheld in DE) Key metrics: $163m revenue & $19m EBITDA in 2013 Trading stat: Mkt.cap: $2.4bn; Cash:$105m; EV/Rev=9.6x (CY14) Investors:
  13. 13. Key metrics: Rev $190m, EBITDA $82m in 2013 Trading stat: Mkt. cap: $2.4bn, Cash: $118m, EV/Rev = 10.2x (CY14) Recently acquired: Marketleader 3 Sectors with fast growing marketplaces 3.3 Restaurants Non-exhaustive list Key metrics: 10,000+ restaurants, 1m+ seated diners per month Lead investors: Key metrics: N/A Owner: Core market dynamics:  Relatively high level of local focus – people usually book restaurants in the city they live in  Generally not in the payments flow – booking platforms usually follow a lead generation model  Medium frequency of use: an average US Opentable customer books 8-10 times a year Booking platforms Non-booking/reviews etc. + others ViaMichelin Yelp acquired SeatMe for $12m in July 2013 Others Key metrics: 30,000 restaurants reviewed Owner: Google acquired a stake In Zagat from KPCB & GA in September 2011 for $150m + others Map key: Country with HQ + others Key metrics: 117,000 restaurants Investors: Global leaderGlobal leader Key metrics: Rev $230m, EBITDA $29m in 2013 Trading stat: Mkt. cap: $5.1bn, Cash: $400m, EV/Rev=12.9x (CY14) Investors: Acquired by Priceline
  14. 14. Key metrics: 23,000 black cabs, 5m passengers/year Investors: 3 Sectors with fast growing marketplaces 3.4 Taxi/Minicabs Non-exhaustive list French leader Key metrics: 7m+ downloads & 35,000 taxis. 40+ German cities covered Investors: Key metrics: c.£170m in turnover in 2012. 4,000 minicabs. 20,000 journeys/day Investors/owner: Core market dynamics:  Relatively high level of local focus – consumers are usually connected to cabs/minicabs within the city  Could be in the payments flow – but not 100% of the time  Relatively high frequency of use and consumer stickiness  Many-to-many dynamics - but the level depends on the geography Key metrics: 20 markets with 1,500 corporate clients. 1m+ downloads Investors: Key metrics: 4,000+ minicabs in London Investors: Key metrics: 18+ countries. Valued at $18bn at last round Investors: Hailo Jeff Bezos & other investors + others Pentland Group Map key: Country with HQ
  15. 15. Key metrics: c.2m jobs posted to date Investors: 3 Sectors with fast growing marketplaces 3.5 Tradesmen Non-exhaustive list French leader Key metrics: Revenue of $246m in 2013 Trading stat: Mkt.cap: $628m; Cash: $65m; EV/Rev: 2.2x(CY14) Investors: Key metrics: $8.9m in revenue & ($6.7m) in EBITDA in 2013 Trading stat: Mkt.cap: $9m; Cash: $4.7m; EV/Rev: 0.85x (CY13) Investors: Core market dynamics:  High level of local focus – consumers are usually connected to tradesmen within the city  Often a lead-generation & subscription model vs. a transactional model  Relatively high frequency of use and consumer stickiness  Many-to-many players – high number of tradesmen on the supply side Key metrics: 15,000+ tradesmen Lead investors: Key metrics: 30,000+ users, c.100,000 tasks posted Lead investors: Key metrics: 4m unique visitors per month. 60,000 tradesmen Investors/owner: Map key: Country with HQ ServiceMagic and other brands in Europe Allen & Co + others HomeAdvisor was acquired by IAC in September 2004
  16. 16. 16 A Relevant recent transactions A.1 M&A Announcement Transaction Enterprise date Target Acquirer value value Revenue EBITDA Target description Jun-14 Delivery Club Ltd. Foodpanda na na na na Operates an online and mobile food delivery marketplace Jun-14 Opentable Priceline $2592m $2474m 11.0x 23.4x Online marketplace for restaurant reservations May-14 Myntra Flipkart na na na na Large e-commerce businesses in India May-14 London Boutiques Trading Arnoldo Mondadori Editore na na na na Online marketplace for womenswear and lifestyle boutiques May-14 Your Safe Planet TripAdvisor na na na na Operates a portal that connects travellers with contacts in their destination May-14 Vacation Home Rentals TripAdvisor na na na na Lists vacation and beach front home rental properties Apr-14 Fantero.com Freelancer na na na na Virtual content marketplace within the design and freelance communities Mar-14 yd. yourdelivery lieferservice.de na na na na Online based food order platform Mar-14 LocalGuiding rent-a-guide na na na na Online marketplace that enables customers to book travel toors and activities Mar-14 Teachers Notebook Overdrive na na na na Online marketplace that enables teachers to find, buy, share and sell personal teaching resources Feb-14 Shop4support Public Consulting Group na na na na Social enterprise based online marketplace that allows individuals to browse information and advice Jan-14 Trader Media Group Apax Partners na na na na Online marketplace for automobiles Jan-14 Indiescapes Silicon Dot na na na na Online marketplace to share travel experience Jan-14 Exploit Hub Trammell Ventures na na na na Online marketplace for exploit developers and security professionals Jan-14 AutoTrader Group Cox Enterprises na na na na Online marketplace for automobiles Dec-13 1Form Online REA Group $13m $13m na na Online portal to manage and apply for rental properties online Dec-13 Delivery Club Phenomen Ventures na na na na Online and mobile food ordering company Nov-13 Notonthehighstreet na $18m $18m na na A shopping Website in the United Kingdom Nov-13 Bookabach HomeAway na na na na Online portal for the rental properties for vacation in New Zealand Oct-13 Shutl eBay na na na na SaaS platform that enables immediate delivery of online shopping Sep-13 Bureau of Trade eBay na na na na Operates a shopping site for men Sep-13 Decide eBay na na na na A price prediction and shopping engine Sep-13 Trinity Mirror Digital Property Zoopla Property Group $5m $5m 1.1x na Operates as a subsidiary of Zoopla Property Group Limited Sep-13 Zillow Cavalane Holdings na na na na Engages in the operation of a real estate and home-related information marketplace Aug-13 Inform Holdings Trade ME na na na na Online insurance comparison website Aug-13 GrubHub Seamless T. Rowe Price Group na na na na An online and mobile food ordering company Aug-13 StreetEasy Zillow $50m $50m 7.9x 42.0x Provides for-sale and for-rent listings and information of real estate properties Aug-13 Orbitz Worldwide na na na na na Online travel company worldwide Aug-13 uSwitch LDC na na na na Online and telephone comparison and switching services Jul-13 Wanderspot OpenTable na na na na Online restaurant reservation and table management system Jul-13 travelmob HomeAway $20m $20m na na Social stay marketplace Jul-13 2dehands eBay na na na na Online portals which provide classified services May-13 Seamless North America GrubHub Seamless na na na na Portal that offers local restaurant information services May-13 Guía de Apartamentos Niumba TripAdvisor na na na na Holiday rental Website Apr-13 Addison Lee The Carlyle Group na na na na Private hire services company Mar-13 Etsy Dragoneer Investment Group na na na na E-commerce site to buy and sell goods Jan-13 Foodspotting OpenTable $10m $10m na na Website and mobile applications to find and share food recommendations Jan-13 hungryhouse.com Delivery Hero na na na na Online platform to find a restaurant, and order a takeaway and food delivery EV multiple
  17. 17. 17 A Relevant recent transactions A.1 M&A (cont’d) Announcement Transaction Enterprise date Target Acquirer value value Revenue EBITDA Target description Jan-13 Chronoresto Solocal Group na na na na Offers online meal ordering service Dec-12 TripAdvisor Liberty USA Holdings $300m $8,783m 12.0x 28.5x Online travel company, enables travelers to plan and have the perfect trip Nov-12 One Jackson TaskRabbit na na na na Operates an online retail platform for apparel for kids Nov-12 Kayak Software priceline.com $1,828m $1,649m 5.8x 30.6x Online travel search services Nov-12 Delivero Foodik na na na na Offers online food ordering services Oct-12 Buyfolio Zillow na na na na Operates a collaborative home shopping platform for brokers and homebuyers Oct-12 TooStep Consultancy Info Edge $1m $1m na na An online portal for professionals to discover and share professional expertise Oct-12 getSpotOn Airbnb na na na na A community that enables members to share their opinions about places to eat and drink Oct-12 Wanderfly TripAdvisor na na na na Online travel recommendation engine that suggests travel destinations to users Oct-12 SinDelantal Internet Just-Eat na na na na Internet service to consumers through which they can order food online from restaurants Sep-12 Svpply eBay na na na na Operates social retail website May-12 UpMyStreet.com Zoopla na na na na Online research of house prices, crime rates, schools, and access local businesses and services May-12 Trunkt Etsy na na na na Online platform for wholesale of artisanal goods to store owners, decorators, and boutiques Apr-12 AutoBase Trade ME $9m $13m na na Online services and solutions to motor vehicle dealers and classified dealer listings Apr-12 Fillmybelly Just-Eat na na na na Website that enables to order takeaway food online Mar-12 Crashpadder UK Airbnb na na na na Online home stay booking services Mar-12 pyszne.pl yd. yourdelivery na na na na Online portal for ordering food items Feb-12 Lieferheld & Hungryhouse.com (unknown stakes) Delivery Hero na na na na Operates online food delivering sites Oct-11 Zoopla (Merger) The Digital Property Group na na na na Operates as an online publishing service and community Website Oct-11 Urbanbite Just-Eat na na na na Online takeaway food ordering Website Sep-11 Zagat Survey Google $151m $151m na na Provides user-generated content, restaurant ratings, and restaurant reviews for restaurants worldwide Jul-11 eatstar yd. yourdelivery na na na na Online food delivery and catering services Jul-11 NabeWise Media Airbnb na na na na Offers online services for finding neighborhoods Jul-11 Zong PayPal $240m $240m na na Provides mobile payment solutions for merchants of online goods and services Jun-11 GrubHub Seamless Spectrum Equity Investors $50m $50m na na Online and mobile food ordering company Jun-11 Accoleo Airbnb na na na na An online marketplace that allows users to rent out their extra space May-11 Second Porch HomeAway $3m $3m na na Vacation-rental advertising site in the United States Apr-11 ClickEat.it Just-Eat na na na na Online food ordering Apr-11 GittiGidiyor eBay $235m $283m na na Online consumer trading platform that offers auctions, stores and fixed price listings Apr-11 Postlets Zillow na na na na Online real estate listing creation and distribution platform for real estate agents, property managers, and landlords Apr-11 realholidays.com.au HomeAway $2m $2m na na Web portal that provides online advertising services for residential and commercial properties for sale and rent Feb-11 Opodo Vacaciones eDreams $615m $615m 0.4x 11.7x Travel website that offers access to airlines, hotel properties, cruise sailings, and car rental locations worldwide EV multiple
  18. 18. 18 A Relevant recent transactions A.2 Private placements Announcement Transaction date Target Investors value Target description Jul-14 Blablacar Isai, Lead Edge Capital, Accel Partners, Index Ventures $100m Marketplace which helps individuals who are travelling in the same direction connect so they can share a vehicle Jun-14 58.com Tencent Holdings $736m Online marketplace for merchants in China Jun-14 Tujia.com Ctrip.com, GGV, CDH, HomeAway, QWV, China Renaissance, CBC, Lightspeed China $100m Online vacation rental services targeting middle to high-end Chinese travelers Jun-14 Uber Technologies KPCB, Menlo, Summit, Fidelity, BlackRock, Wellington, Google Ventures $1,400m Online car booking services via mobile phones May-14 Flipkart Iconiq Capital, Naspers, Tiger Global Management, DST global $210m Very large e-commerce site in the Indian market May-14 Thumbtack Tiger Global Management, Sequoia Capital $30m Marketplace which connects consumers with professionals to achieve projects May-14 Pro.com Madrona, Redpoint, Bezos, Andreesen Horowitz, Two Sigma, Sherpa Ventures $4m Marketplace which helps homeowners price home improvement projects and connect with professionals May-14 Tradesy Northgate Capital Group, KPCB, Rincon Venture Partners, Bee Partners $15m Markeplace for second-hand designer fashion May-14 StreetShares ACCION Financial Markets and Services $1m Online members-only marketplace where investors bid to provide loans to main street businesses Apr-14 Farfetch.com Advent Venture Partners Vitruvian Partners, Conde Nast International Investment Arm $66m Unites independent fashion boutiques online for customers to buy designer fashion brands worldwide Apr-14 Delivery Hero Kreos Capital, Insight, ruNet Holdings, Luxor Capital Group, Team Europe Management, Tengelmann Ventures, Kite, Point Nine Capital, Phenomen Ventures, West Tech Ventures $85m Network of online food ordering sites around the world Apr-14 Takeaway.com Prime Ventures, Macquarie Group, Investment Arm $103m Online food ordering and delivery service Apr-14 Airbnb Sequoia Capital, T. Rowe Price Group, TPG Growth, Dragoneer Investment Group na Community marketplace for people to list, discover, and book spaces around the world online Apr-14 Westwing Odey Asset Management, FIL Limited, Tengelmann Ventures $99m Owns and operates an online furniture shopping club Mar-14 Move Loot Index Ventures, First Round Capital, Y Combinator, Google Ventures, SV Angel $3m Online markeplace for used furniture Mar-14 Kitchensurfing Union Square Ventures, Spark Capital Partners, Tiger Global Management $15m Online marketplace where customers can find and hire private chefs Feb-14 Rated People Western Technology Investment, Frog Capital $11m Online trade recommendation services to connect homeowners with local tradesmen in the United Kingdom Feb-14 VivaReal Monashee Capital, Valiant Capital, Kaszek Ventures, Dragoneer Investment Group $13m Online real estate marketplace Jan-14 Vinted Accel Partners, Insight Venture Partners $27m Online marketplace for women's second-hand fashion and handicrafts Jan-14 Delivery Hero Insight Venture Partners $88m Network of online food ordering sites around the world Dec-13 FlashNotes Atlas Venture, SoftBank Capital, Stage 1 Ventures, Runa Capital $3.6m Online marketplace for students notes Dec-13 Homejoy Google Ventures, Redpoint Ventures £38m Online platform connecting cleaners with clients Nov-13 Kabbee Octopus Investments $6m Instant price comparison and booking platform Nov-13 Zomato Media Sequoia Capital India, Info Edge (India) $36m Online food guide, restaurant directory, and menu-pages Website for customers to dine out or order food Aug-13 Get Taxi Kreos Capital na Mobile application for users to order taxis from their mobiles Aug-13 Uber Technologies Benchmark Capital, TPG Capital, Google Ventures $361m Online car booking services via mobile phones Jul-13 Yapta Amadeus IT Holding, Concur Technologies Investment Arm $7m Online travel shopping service that monitors airline ticket pricing and award seat availability for travelers Jun-13 Trinket Info Services Delivery Hero $5m Online food ordering portal Apr-13 WebMotors carsales.com $81m Website for new and used automotives Apr-13 Auctionata e.ventures, Earlybird Venture Capital, Holtzbrinck Ventures, Kite Ventures, Bright Capital $3m Operates an online auctions platform for buying and selling unique or collectible items and goods Mar-13 Postmates The Founders Fund $5m Provides an on demand delivery service that connects couriers & bike messengers within a city Mar-13 iCarAsia carsales.com $14m Develops and operates car classifieds and content Websites primarily in Malaysia, Indonesia, and Thailand Mar-13 Livebookings ViaMichelin na Online reservations and marketing services Feb-13 Zomato Media Info Edge (India) $10m Online food guide, restaurant directory, and menu-pages Website for customers to dine out or order food Feb-13 Tujia.com Ctrip.com, GGV Capital, CDH Investments, HomeAway, Qiming Weichuang Venture Capital Management, CBC Capital, Lightspeed China Partners $37m Online vacation rental services targeting middle to high-end Chinese travelers Feb-13 Bypass Mobile eBay, Anschutz Entertainment Group na Mobile ordering and payment solutions for public venues and campuses Jan-13 Rated People Western Technology Investment $3m Online trade recommendation services to connect homeowners with local tradesmen in the United Kingdom Dec-12 Hailo Accel Partners, Atomico Investment, Felicis Ventures, Forward Investment Partners, Phenomen Ventures, Red Swan Ventures, Union Square Ventures, Wellington Partners $31m Smartphone application that acts as a matchmaker between empty cabs and passengers Dec-12 Room 77 Sutter Hill Ventures, General Catalyst Partners, Expedia, Felicis Ventures, Concur Technologies Investment Arm $30m Hotel search and booking engine
  19. 19. 19 A Relevant recent transactions A.2 Private placements (cont’d) Announcement Transaction date Target Investors value Target description Nov-12 Auctionata Bright Capital $3m Online auctions platform for buying and selling unique or collectible items and goods Nov-12 Covetique ASOS na Website that connects individual sellers of pre-owned designer fashion with buyers from around the world Oct-12 People Per Hour Index Ventures $3m Online marketplace for connecting businesses with a community of independent and self-employed service freelancers Oct-12 Secret Escapes Atlas Venture, Index Ventures, Octopus Investments $13m Private sale Website for travel Oct-12 Kabbee Pentland Group, Redbus Limited, Samos Investments Advisory $3m Instant price comparison and booking platform Sep-12 Zomato Media Info Edge (India) $2m Online food guide, restaurant directory, and menu-pages Website for customers to dine out or order food Aug-12 Delivery Hero Kreos Capital, Holtzbrinck, Team Europe, Tengelmann, Kite, Point Nine Capital, Phenomen $82m Online food ordering sites around the world Jul-12 TaskRabbit Lightspeed Venture Partners, Shasta Ventures, The Founders Fund, Baseline Ventures $13m Web and mobile marketplace that provides people and businesses with a way to get tasks done in their communities Jul-12 Airbnb na $2m Community marketplace for people to list, discover, and book spaces around the world online Jun-12 Airbnb na $12m Community marketplace for people to list, discover, and book spaces around the world online Jun-12 yd. yourdelivery Logan Capital, DuMont, Macquarie, Moraún Investments, Rheingau Ventures, BCM Bruker $19m Online based food order platform for individuals and enterprises May-12 Notonthehighstreet Greylock Partners, Index Ventures, Fidelity Growth Partners Europe $16m Operates a shopping Website in the United Kingdom May-12 Postmates Matrix Partners, CrossLink Capital, SoftTech VC, AngelPad $2m On demand delivery service that connects couriers & bike messengers within a city May-12 Tujia.com Ctrip.com, CDH Investments, HomeAway, Lightspeed China Partners na Online vacation rental services targeting middle to high-end Chinese travelers May-12 Livebookings Wellington Partners Venture Capital, Balderton Capital, AB Gudunge $24m Online reservations and marketing services May-12 Etsy Accel Partners, Index Ventures, Union Square Ventures, Acton Capital Partners $40m E-commerce site to buy and sell goods Apr-12 Just-Eat Greylock Partners, Redpoint Ventures, Index Ventures, Vitruvian Partners $64m Internet sites for online ordering for customers and restaurant owners for takeaway ordering Apr-12 Get Taxi Access Industries, InVenture Partners $20m Mobile application for users to order taxis from their mobiles Apr-12 Auctionata e.ventures, Holtzbrinck Ventures na Online auctions platform for buying and selling unique or collectible items and goods Apr-12 DaWanda Insight Venture Partners na Online marketplace for handmade items Mar-12 Trinket Info Services Delivery Hero na Online food ordering portal Mar-12 Hailo Accel Partners, Atomico Investment $17m Smartphone application that acts as a matchmaker between empty cabs and passengers Feb-12 Delivery Hero Holtzbrinck Ventures, Team Europe Management, Tengelmann Ventures, Kite Ventures $33m Network of online food ordering sites around the world Feb-12 Airbnb Axel Springer na Community marketplace for people to list, discover, and book spaces around the world online Dec-11 GrubHub Seamless Stripes Group na Online and mobile food ordering company, allows customers to order food for delivery and pickup from various restaurants Dec-11 Takeaway.com Prime Ventures $17m Online food ordering and delivery service Dec-11 TaskRabbit Lightspeed, Allen & Company, Shasta Ventures, First Round, The Tornante Company, Baseline Ventures $18m Web and mobile marketplace that provides people and businesses with a way to get tasks done in their communities Nov-11 DaWanda Vorwerk Direct Selling Ventures, Piton Capital $5m Online marketplace for handmade items Nov-11 Uber Technologies Benchmark Capital, Menlo Ventures, Bezos Expeditions, Goldman Sachs Group, Lowercase Capital $37m Online car booking services via mobile phones Oct-11 Secret Escapes Atlas Venture, Octopus Ventures na Private sale Website for travel Sep-11 Kinobeo Software Info Edge (India) $4m Online platform that provides deals on the stuff to do, see, eat, and buy in cities across India Sep-11 Delivery Hero Holding Hasso Plattner Ventures, Team Europe Management, Tengelmann, Kite, Point Nine Capital $11m Network of online food ordering sites around the world Sep-11 Postmates SoftTech VC $1m On demand delivery service that connects couriers & bike messengers within a city Sep-11 Zomato Media Info Edge (India) $3m Online food guide, restaurant directory, and menu-pages Website for customers to dine out or order food Aug-11 Angie's List na $15m Operates a consumer-driven solution for its members to research, hire, rate, and review local professionals
  20. 20. 20 B Relevant companies In USDm unless otherwise stated YTD Market Net debt / Enterprise EV / Revenue EV / EBITDA Rev. CAGR EBITDA CAGR EBITDA % trading cap (cash) value CY13A CY14E CY15E CY13A CY14E CY15E CY13A-15E CY13A-15E CY14E Marketplaces Amadeus IT Holding € 30.3 (0.5%) 18,362 2,102 20,464 4.9x 4.4x 4.1x 12.6x 11.5x 10.8x 8.2% 8.2% 38.5% Amazon.com $ 330.0 (17.1%) 151,841 (5,519) 146,322 2.0x 1.6x 1.3x 28.9x 22.4x 16.8x 20.7% 31.0% 7.2% carsales.com AU$ 11.2 7.6% 2,495 36 2,531 11.9x 10.5x 9.4x 20.8x 17.9x 15.8x 12.5% 14.7% 58.7% Ctrip.com $ 61.8 25.1% 8,423 (4,048) 4,638 5.3x 3.9x 3.0x 24.5x 32.8x 17.1x 31.7% 19.6% 12.0% eBay $ 50.9 (5.6%) 64,546 (3,716) 60,830 3.8x 3.3x 2.9x 11.3x 10.0x 9.0x 13.8% 12.5% 33.5% eLong $ 20.9 2.9% 739 (293) 449 3.0x 2.2x 1.7x n.m. n.m. n.m. 31.9% n.a. 0.1% Expedia $ 80.2 15.8% 10,409 (922) 10,089 2.1x 1.8x 1.6x 11.6x 10.1x 8.8x 15.9% 14.8% 17.7% HomeAway $ 32.9 (18.0%) 3,078 (467) 2,621 7.6x 5.9x 5.0x 26.7x 22.0x 17.9x 23.9% 22.3% 27.0% Info Edge INR 705.7 56.5% 1,296 (123) 1,196 14.9x 12.3x 9.2x 46.3x 37.3x 30.2x 26.9% 23.7% 33.1% JUST EAT £ 2.5 (0.4%) 2,409 (106) 2,304 13.9x 9.6x 7.6x n.m. 49.3x 30.3x 35.6% 97.4% 19.4% MakeMyTrip $ 28.6 44.2% 1,192 (67) 1,125 4.6x 8.9x 7.1x n.m. n.m. 59.9x (19.9%) n.a. 4.7% Moneysupermarket.com £ 1.9 1.7% 1,764 35 1,800 4.6x 4.4x 4.1x 12.7x 11.8x 11.0x 6.3% 7.7% 37.4% OpenTable $ 103.0 31.9% 2,427 (118) 2,310 12.2x 10.2x 8.8x 28.3x 26.8x 22.4x 17.7% 12.6% 38.2% Orbitz Worldwide $ 9.0 26.2% 979 192 1,171 1.4x 1.3x 1.2x 8.3x 7.5x 6.8x 6.9% 10.7% 17.0% priceline.com $ 1236.4 7.9% 64,825 (4,855) 59,970 8.9x 7.1x 5.9x 22.9x 17.7x 14.5x 22.5% 25.6% 40.1% REA Group AU$ 44.9 20.1% 5,556 (269) 5,287 14.6x 11.6x 9.8x 28.8x 21.6x 17.5x 21.7% 28.3% 53.8% Rightmove £ 21.3 (22.4%) 3,582 (12) 3,570 15.0x 12.9x 11.4x 20.6x 17.5x 15.4x 14.6% 15.8% 73.7% Shutterstock $ 77.2 (7.0%) 2,717 (213) 2,504 10.7x 7.8x 6.1x 49.1x 39.2x 27.1x 32.4% 34.5% 20.0% Trade ME Group NZD 3.5 (12.8%) 1,233 123 1,356 9.0x 8.2x 7.5x 12.3x 11.7x 10.8x 9.5% 6.6% 69.7% Travelzoo $ 18.7 (10.9%) 276 (61) 215 1.4x 1.4x 1.3x 7.6x 7.8x 6.9x 2.3% 5.2% 17.7% Trulia $ 41.2 16.9% 1,520 9 1,529 10.6x 6.0x 4.6x n.m. n.m. 31.1x 52.1% 72.9% 8.3% Yelp $ 71.4 5.1% 5,114 (399) 4,714 20.5x 12.9x 9.0x n.m. n.m. 42.8x 51.2% 95.2% 16.0% Zillow $ 133.4 62.5% 5,268 (309) 4,959 25.4x 16.0x 11.8x n.m. n.m. 56.8x 46.6% 92.8% 16.1% Zoopla £ 2.5 15.3% 1,828 (50) 1,778 16.1x 18.1x n.a. 35.4x 37.0x n.a. n.a. n.a. 48.8% Average 9.3x 7.6x 5.9x 22.7x 21.7x 21.8x 21.1% 31.0% 29.5% Median 8.9x 7.5x 5.9x 21.8x 17.9x 17.0x 20.7% 19.6% 23.5% Notes: Share price as of 10-07-14 YTD trading based on share price as of 2-Jan-2014 or since IPO date Zoopla based on Q4-13 and Q1-14 annualised figures from the IPO prospectus Sources: Source: Broker reports and Capital IQ Share price
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