1Q13 software industry financial report

Q12013 The Software Industry
Financial Report

SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS
About Software Equity Group
Leaders in Software M&A 4
Extensive Global Reach 5
Software Industry Macroeconomics
Global GDP 8Global GDP 8
U.S. GDP and Unemployment 9
Global IT Spending 10
E-Commerce and Digital Advertising Spend 11
SEG Indices vs. Benchmark Indices 12
Public Software Financial and Valuation PerformancePublic Software Financial and Valuation Performance
The SEG Software Index 14
The SEG Software Index: Financial Performance 15-17
The SEG Software Index: Market Valuations 18-19
The SEG Software Index by Product Category 20
The SEG Software Index by Product Category: Financial Performance 21The SEG Software Index by Product Category: Financial Performance 21
The SEG Software Index by Product Category: Market Valuations 22
Public SaaS Company Financial and Valuation Performance
The SEG SaaS Index 24
The SEG SaaS Index Detail 25
The SEG SaaS Index: Financial Performance 26-28The SEG SaaS Index: Financial Performance 26 28
The SEG SaaS Index: Market Valuation 29-30
The SEG SaaS Index by Product Category 31
The SEG SaaS Index by Product Category: Financial Performance 32
The SEG SaaS Index by Product Category: Market Valuations 33
Public Internet Company Financial and Valuation PerformancePublic Internet Company Financial and Valuation Performance
The SEG Internet Index 35
The SEG Internet Index: Financial Performance 36-38
The SEG Internet Index: Market Valuations 39-40
The SEG Internet Index by Product Category 41
The SEG Internet Index by Product Category: Financial Performance 42
1 Q1 2013 Software Industry Financial Report
Copyright © 2013 by Software Equity Group, LLC
The SEG Internet Index by Product Category: Financial Performance 42
The SEG Internet Index by Product Category: Market Valuations 43

SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS
Software Industry M&A Market Update
Software/SaaS M&A Deal Volume and Spending 45
Software M&A Exit Multiples 46
Software M&A by Ownership Structure and Size 47
Software M&A by Vertical and Horizontal Markets 48Software M&A by Vertical and Horizontal Markets 48
Software M&A by Product Category 49-50
SaaS M&A Deal Volume and Exit Multiples 51
SaaS M&A by Product Category 52
SaaS M&A: 1Q13 Transactions 53-55
Internet M&A: Deal Volume and Exit Multiples 56-57Internet M&A: Deal Volume and Exit Multiples 56 57
Appendix
The SEG Software Index Companies 59-63
The SEG SaaS Index Companies 64
The SEG Internet Index Companies 65-67
The SEG Software Index Metrics by Product Category 68-69The SEG Software Index Metrics by Product Category 68 69
The SEG SaaS Index Metrics by Product Category 70
The SEG Internet Index Metrics by Product Category 71
1Q13 Public Sellers 72
1Q13 Software Mega Deals (>$500M) 73
1Q13 Most Active Buyers 741Q13 Most Active Buyers 74

ABOUT SOFTWARE EQUITY GROUP

• 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

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.
p ,

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.
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.

SOFTWARE INDUSTRY MACROECONOMICS

GLOBAL GDP
• Global GDP growth continued its steady decline through most of 2012 but leveled off in Q4 due to growth in developing countries• Global GDP growth continued its steady decline through most of 2012, but leveled off in Q4 due to growth in developing countries
(chart on left).
• In general, global GDP growth continues to reflect the disparity between developed and emerging economies (chart on right)
• Emerging economies are forecast to grow GDP 5.9% and 6.0% in 2013 and 2014, respectively
D l d i f t t GDP 1 9% d 2 3% i 2013 d 2014 ti l• Developed economies are forecast to grow GDP 1.9% and 2.3% in 2013 and 2014, respectively
• Globally, GDP is expected to grow between 2.0% - 3.0% in 2013, according to forecasts from Worldbank and PIMCO. In 2014,
Worldbank forecasts global GDP to accelerate further, achieving 3.3% YoY growth.
Sources: Worldbank, The Economist
and PIMCO

U.S. GDP AND UNEMPLOYMENT
5.0%6%
8%
10%
GDP % Growth Unemployment Rate
1.2%
3.2%
3.6%
2.1%
1.5%
2.2%
3.7%
1.7%
2.6%
3.1%
0.4%
2.5%
1.3%
4.1%
2.0%
1.3%
3.1%
0.4%
2.5%
0%
2%
4%
-0.7%
-2.7%
-5.4%
-0.7%
-6%
-4%
-2%
-6.4%
-8%
1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13
• The Bureau of Economic Analysis’ (BEA) first estimate of 1Q13 GDP reported growth of 2 5% up slightly from 1Q12’s 2 0%• The Bureau of Economic Analysis (BEA) first estimate of 1Q13 GDP reported growth of 2.5%, up slightly from 1Q12 s 2.0%.
• PIMCO forecasts 1.5% - 2.0% growth for the U.S. economy in 2013, driven in large part by contributions from the housing
recovery.
• The U.S. unemployment rate dropped to 7.5% in April, in part due to a decline in the number of job seekers.
A t bl ti t th t bb l hi h l t t th IT t hi h l t 5 1% Y Y di t• A notable exception to the stubbornly high unemployment rate was the IT sector, which grew employment 5.1% YoY, according to
TechServe Alliance.

GLOBAL IT SPENDING
9.0%
6.0%
8.0%
6.0%
3.1%
3.9%5.0%
10.0%
ing
‐5.0%
0.0%
2007 2008 2009 2010 2011 2012 2013Y Change in IT Spend
-10.0%
‐15.0%
‐10.0%
YoY
• Global IT spending is forecast to grow 3 9% in 2013 up from 3 1% in 2012 according to averages derived from Goldman Sachs• Global IT spending is forecast to grow 3.9% in 2013, up from 3.1% in 2012, according to averages derived from Goldman Sachs,
Gartner and IDC .
• Cloud and mobile computing continue to garner an increasing share of the total worldwide IT spend.
• Gartner forecasts device sales (PCs, tablets, smartphones and printers) will grow 7.9% YoY, followed by enterprise software,
which is projected to grow at 6.4%.which is projected to grow at 6.4%.
• IDC forecasts mobile and tablet spending will increase 17% and 32% respectively in 2013, offsetting declines in PC sales.
• IDC forecasts spending on cloud services will approach $100 billion in 2016, a four year CAGR of 26.4%, or six times the growth
of IT spending as a whole.
Sources: IT spending numbers shown in charts are
an average of Goldman Sachs, IDC and Gartner
GDP forecasts

E-COMMERCE AND DIGITAL ADVERTISING SPEND
20%
25%
50,000
60,000
illions)
25%
30%
10 000
12,000
llions)
Digital Advertising RevenueE-Commerce Spending
5%
10%
15%
20%
20 000
30,000
40,000
50,000
oY%Change
rceSpending($M
5%
10%
15%
20%
6,000
8,000
10,000
oY%Change
ngRevenue($Mil
‐5%
0%
5%
0
10,000
20,000
Yo
E-Commer
‐10%
‐5%
0%
5%
0
2,000
4,000
Yo
InternetAdvertisi
• U S retail e-commerce sales totaled $56 8B in 4Q12 (the • U S digital advertising revenues totaled $10 3M in 4Q12• U.S. retail e-commerce sales totaled $56.8B in 4Q12 (the
latest data available), marking the first ever $50B+ quarter.
• 4Q12’s 14% YoY growth in online sales was spurred by a
6% increase in buyers and an 8% increase in spending per
buyer.
U.S. digital advertising revenues totaled $10.3M in 4Q12
(the latest quarter data was available), marking the first
ever $10M+ quarter and a 15% YoY improvement over
4Q11.
• 2012 annual digital advertising spend was $36.6B, up
15% f 2011’ $31 7B
• Total U.S. retail e-commerce sales were $186.2B for all of
2012, up 15% from 2011, and the strongest YoY growth
rate since the recession.
15% from 2011’s $31.7B.
• The increase in 2012’s digital advertising spend was
spurred by the rapid increase in mobile advertising spend
which reached $3.4B in 2012, up 111% from 2011’s
$1.6B.
Sources: comScore, IAB, IBD
$ 6

SEG INDICES VS. BENCHMARK INDICES
• An improving macro economic climate and continued support from the Federal Reserve helped drive the U S stock markets• An improving macro economic climate and continued support from the Federal Reserve helped drive the U.S. stock markets
higher in 1Q13.
• The Dow surged 11.3%, its best first quarter since 1998, achieving a record high in 1Q13.
• The S&P advanced 10.0% in 1Q13, while the NASDAQ grew 8.2%, as both achieved 52 week highs.
SEG S ft I d t d 8 7% t i 1Q13 t f i th SEG S S d SEG I t t i di hi h l d 1Q13• SEG Software Index posted a 8.7% return in 1Q13, outperforming the SEG SaaS and SEG Internet indices which closed 1Q13
with returns of 5.3% and 7.8%, respectively.
• The relative underperformance of the SEG SaaS Index and the NASDAQ illustrates that investors were not yet ready to jump
into riskier companies, preferring to place their bets with larger, more stable companies.

PUBLIC SOFTWARE COMPANY FINANCIAL ANDPUBLIC SOFTWARE COMPANY FINANCIAL AND
VALUATION PERFORMANCE:
THE SEG SOFTWARE INDEX

THE SEG SOFTWARE INDEX
SEG- Software: Median Metrics
• The SEG Software Index tracks public
software companies that primarily offer on-
premise software under a perpetual
Measure 1Q12 2Q12 3Q12 4Q12 1Q13
EV/Revenue 2.7x 2.7x 2.6x 2.5x 2.8x
EV/EBITDA 12.5x 10.6x 11.1x 11.7x 12.8x
EV/Earnings 22.5x 22.2x 21.4x 21.8x 23.8x
Gross Profit Margin 68.8% 68.5% 68.3% 68.6% 68.8%
EBITDA M i 19 4% 19 4% 19 8% 19 7% 19 7%
license with annual M&S
• The SEG Software Index is currently
comprised of 132 public software
i *
EBITDA Margin 19.4% 19.4% 19.8% 19.7% 19.7%
Net Income Margin 10.8% 10.7% 10.4% 10.4% 9.1%
TTM Revenue Growth 14.2% 14.5% 13.3% 12.1% 11.1%
TTM Total Revenue ($M) $417.9 $448.4 $447.7 $456.2 $471.6
TTM EBITDA Growth 21.7% 17.5% 14.8% 8.8% 4.4%
TTM Total EBITDA ($M) $71.5 $84.2 $78.2 $82.7 $85.7
companies*
($ ) $ $ $ $ $
Cash & Eq ($M) $157.8 $182.6 $159.8 $163.4 $169.4
Current Ratio 1.9 1.9 1.9 2.0 1.9
Debt / Equity Ratio 22.5% 21.5% 23.3% 23.0% 26.6%
* See appendix for a complete list of companies in The SEG Software Index

THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE
35%
40%
48% of public on-premise software companies
had TTM revenue growth rates of 10% or less
Of the 18% of companies with TTM revenue
TTM Revenue Growth Rate DistributionRevenue Performance
16%$480
TTM Total Revenue ($M) TTM Revenue Growth
20%
20%
25%
30%
35%
ompanies
Of the 18% of companies with TTM revenue
growth rates of 30% or more, a disproportionate
number are focused on mobility and cloud
computing
8%
10%
12%
14%
$430
$440
$450
$460
$470
enue Growth
al Revenue
13% 13%
9% 9%
0%
5%
10%
15%
% of Co
0%
2%
4%
6%
$390
$400
$410
$420
$430
TTM Reve
TTM Tota
0%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM Revenue Growth
• On-premise software companies lost market share to SaaS
and Internet providers and struggled with macro economic
0%$390
1Q12 2Q12 3Q12 4Q12 1Q13
p gg
headwinds, as their 1Q13 median TTM revenue growth rate
declined to 11.1%, the lowest since 4Q10.
• Despite slowing growth, the median TTM revenue of the
SEG Software Index reached $471.6M, the highest in its
history and the highest among our three tracking indiceshistory and the highest among our three tracking indices.
• We expect TTM revenue growth for most on-premise public
software companies to remain modest, which portends
increased M&A and R&D spending to spur top line growth.

32%35%
TTM EBITDA Margin DistributionEBITDA Margin Performance
Almost one in three on-premise software
companies posted EBITDA margins of
20% - 30%
25%22%
EBITDA Margin TTM EBITDA Growth
17%
25%
20%
25%
30%
ompanies
20% - 30%
15%
20%
10%
12%
14%
16%
18%
20%
TDA Growth
A Margin
Those exceeding 30%
EBITDA margins included
the software industry’s
behemoths, as well as those
leveraging online sales to
reduce selling expenses
8%
11%
7%
0%
5%
10%
15%
% of Co
0%
5%
10%
0%
2%
4%
6%
8%
10%
TTM EBIT
EBITDA
0%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM EBITDA Margin
• EBITDA margins have held relatively constant over the past
year and remain at historic levels, closing 1Q13 at 19.7%.
0%0%
1Q12 2Q12 3Q12 4Q12 1Q13
y , g Q
• Median TTM EBITDA growth has plunged from 22% YoY in
1Q12 to a 4.4% YoY increase in 1Q13,suggesting many
public software companies are spending more to grow
revenue after paring expenses to the bone.
• In a dramatic reversal from 1Q12, when median TTM
EBITDA growth outpaced TTM revenue growth by 7.5%,
TTM EBITDA growth in 1Q13 lagged TTM revenue growth
by 6.9% (4.4% vs. 11.3%).

Margin PerformanceOperating Ratios
80%
Gross Profit Margin EBITDA Margin Net Income Margin
25%
S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue)
40%
50%
60%
70%
Margin
15%
20%
Revenue
0%
10%
20%
30%
% M
0%
5%
10%
% of R
• Median spending on sales & marketing (S&M), research &
development (R&D) and general & administrative(G&A), as a
• In 1Q13, median gross profit, EBITDA and net income
margins were 68.8%, 19.7% and 9.1%, respectively.
0%
1Q12 2Q12 3Q12 4Q12 1Q13
0%
1Q12 2Q12 3Q12 4Q12 1Q13
p ( ) g ( ),
percentage of total revenue was 23.7%, 15.1% and 10.6%,
respectively, in 1Q13 – consistent with historical norms.
• Over the past year, S&M and G&A expenses as a percent of
revenue have remained flat while R&D ticked up from 14.2%
to 15 1% in Q1
g , , p y
• Several on-premise providers achieved gross profit margins
of 89% and greater, including Qlik Technologies (89%),
Splunk (89%), Autodesk (90%), Glu Mobile (90%), Unit 4
(92%) and SolarWinds (93%).
to 15.1% in Q1.
• Median S&M spending among on-premise public software
companies lagged far behind their SaaS counterparts which
are investing heavily in customer acquisition.
• We anticipate EBITDA margins and Net Income margins will
likely decline over the next several quarters, as on-premise
software companies increase their investments in R&D to
improve products/delivery models and sales & marketing to
accelerate TTM revenue growth.

THE SEG SOFTWARE INDEX: MARKET VALUATIONS
EV/Revenue Multiples by Size (TTM Revenue)EV/Revenue and EV/EBITDA Multiples
12.5x 12.8x14.0x
EV/Revenue EV/EBITDA
4.0x
Revenue Greater Than $1 billion Revenue Between $500 million and $1 billion
Revenue Between $100 million and $500 million Revenue Less Than $100 million
10.6x
11.1x
11.7x
8.0x
10.0x
12.0x
2 0x
2.5x
3.0x
3.5x
V/Revenue
2.7x 2.7x 2.6x 2.5x 2.8x
0 0x
2.0x
4.0x
6.0x
0 0x
0.5x
1.0x
1.5x
2.0x
Median EV
• Despite slowing growth and EBITDA erosion, the median
EV/Revenue multiple in 1Q13 was 2.8x, the highest in nine
• Investors in 1Q13 continued to place higher value on larger
public software companies with revenues >$100 million.
0.0x
1Q12 2Q12 3Q12 4Q12 1Q13
0.0x
1Q12 2Q12 3Q12 4Q12 1Q13
p , g
years.
• By contrast, the median EV/EBITDA multiple in 1Q13 was
12.8x, well below the mid-to-high-teen EBITDA multiples
achieved in 2007 and before.
p p $
• Throughout 2012, and in 1Q13, the EV/Revenue multiples of
on-premise software companies with revenues <$100 million
remained markedly lower than their larger counterparts.
• SEG Software Index companies with TTM revenue between
• Although median EBITDA margins of on-premise software
companies are at record levels, soaring stock prices have
constrained EV/EBITDA market valuations.
$100M and $1B Successfully balanced TTM revenue growth
(median 17.3%) and EBITDA margins (median 17.7%), and
were boosted by the highest EV/Revenue multiples.

THE SEG SOFTWARE INDEX: MARKET VALUATIONS
EV/Revenue Multiples vs. TTM EBITDA MarginsEV/Revenue Multiples vs. TTM Revenue Growth Rates
4 4x
5.0x 6.0x
2.1x
3.5x
4.0x 4.1x
4.4x
2.5x
3.0x
3.5x
4.0x
4.5x
EV/Revenue
3.0x
3.3x
4.8x
3.0x
4.0x
5.0x
EV/Revenue
1.3x
2.1x
0 0x
0.5x
1.0x
1.5x
2.0x
Median E
1.3x
1.9x 1.7x
0 0x
1.0x
2.0x
Median E
• Noting the decline in the median revenue growth of on-
premise software providers investors awarded valuation
• Except for a chosen few with EBITDA margins north of 40%,
there was little market premium ascribed to on-premise
0.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM Revenue Growth
0.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM EBITDA Margin
premise software providers, investors awarded valuation
premiums to those with revenue growth above the median
(11.3%).
• Indeed, revenue growth rates 20% or higher were rewarded
with median EV/Revenue multiples of 4.0x or higher.
there was little market premium ascribed to on premise
software providers that exceeded the median EBITDA margin
(19.7%).
• However, those on-premise software providers with EBITDA
margins of 20% or lower were punished with a median
k t l ti f 1 9 EV/Rmarket valuation of 1.9x EV/Revenue.

THE SEG SOFTWARE INDEX: BY PRODUCT CATEGORY
1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13
Billing & Service Management 1.3x 1.2x 1.2x 1.7x 2.4x 8.1x 9.1x 8.7x 8.6x 8.7x 16.6% 13.6% 9.5% 10.4% 10.4% 20.2% 18.5% 18.8% 19.9% 21.1%
Business Intelligence 3.8x 2.7x 2.3x 2.8x 3.0x 35.5x 33.8x 32.8x 19.7x 16.1x 23.7% 16.9% 14.6% 10.9% 10.8% 10.7% 10.9% 10.5% 9.4% 10.8%
Development Platforms 2.7x 1.9x 2.1x 2.5x 2.5x 9.4x 8.4x 8.2x 9.4x 9.1x 7.2% 5.3% 3.5% 1.6% 3.0% 24.7% 22.3% 21.8% 23.7% 21.8%
E i i & PLM 2 6 2 3 2 6 2 5 2 7 14 2 11 5 12 1 11 8 13 4 13 5% 13 5% 13 2% 14 0% 13 1% 18 5% 19 9% 20 7% 20 6% 20 7%
SEG Software Index
Category
EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin
Engineering & PLM 2.6x 2.3x 2.6x 2.5x 2.7x 14.2x 11.5x 12.1x 11.8x 13.4x 13.5% 13.5% 13.2% 14.0% 13.1% 18.5% 19.9% 20.7% 20.6% 20.7%
Enterprise Resource Planning 2.5x 2.0x 2.1x 2.2x 2.4x 10.3x 8.9x 9.1x 9.1x 10.2x 10.0% 9.4% 4.7% 3.4% 2.6% 23.2% 23.3% 23.3% 23.1% 22.8%
Financial & Accounting 2.8x 2.7x 2.9x 2.9x 3.1x 9.9x 9.4x 9.7x 9.7x 10.5x 6.5% 6.3% 13.6% 10.7% 8.8% 29.1% 28.3% 29.0% 28.8% 27.5%
Gaming 1.3x 1.0x 1.0x 1.0x 1.1x 7.1x 7.6x 9.1x 8.0x 7.1x 5.6% 2.6% 2.2% 0.1% 4.4% 16.4% 16.3% 15.5% 15.5% 15.5%
Healthcare 3.2x 2.7x 2.2x 2.1x 2.1x 15.1x 13.0x 12.8x 11.3x 14.8x 24.8% 30.1% 22.5% 17.7% 10.1% 20.4% 19.6% 17.8% 16.8% 12.9%
IT Conglomerates 3.1x 2.9x 2.8x 2.5x 2.5x 7.7x 7.3x 8.2x 7.8x 8.8x 7.7% 5.3% 1.5% 1.4% 0.5% 37.4% 36.9% 36.1% 34.6% 33.8%
Mobile Solutions/Content 4 7x 3 6x 3 3x 2 4x 2 3x 31 5x 16 1x 14 4x 11 9x 20 6x 62 7% 47 1% 34 4% 30 7% 35 2% 12 8% 10 8% 11 9% 5 9% 4 5%Mobile Solutions/Content 4.7x 3.6x 3.3x 2.4x 2.3x 31.5x 16.1x 14.4x 11.9x 20.6x 62.7% 47.1% 34.4% 30.7% 35.2% 12.8% 10.8% 11.9% 5.9% 4.5%
Netw orking & Netw ork
Performance Management
3.1x 2.4x 2.5x 2.5x 2.7x 16.4x 14.9x 14.0x 14.0x 15.1x 20.7% 19.4% 17.3% 15.5% 12.9% 18.0% 18.0% 16.8% 16.2% 16.4%
Security 3.2x 2.9x 3.2x 2.7x 3.3x 13.0x 10.2x 10.5x 11.2x 11.5x 26.3% 19.4% 20.1% 23.1% 23.4% 18.2% 18.0% 19.2% 17.8% 13.9%
Storage, Data Management &
Integration
2.6x 2.5x 2.5x 2.3x 2.4x 9.2x 9.3x 9.2x 8.4x 9.2x 9.4% 7.7% 6.0% 5.4% 4.2% 22.1% 22.5% 22.7% 22.4% 22.0%
Supply Chain Management &
Logistics
2.6x 2.5x 2.5x 2.9x 3.3x 12.1x 10.7x 10.9x 12.7x 14.5x 14.9% 18.4% 15.9% 11.2% 11.3% 17.1% 17.5% 17.2% 16.6% 16.0%
og s cs
Systems Management 5.9x 5.9x 5.5x 4.5x 4.8x 22.2x 23.0x 22.3x 18.9x 20.5x 17.7% 18.1% 18.1% 16.5% 17.2% 26.4% 26.2% 25.8% 25.4% 25.2%
Vertical - Finance 3.4x 3.3x 3.2x 3.0x 3.4x 10.7x 10.3x 10.6x 9.4x 10.7x 10.3% 6.8% 6.3% 7.1% 6.7% 26.3% 26.4% 26.3% 26.4% 26.5%
Vertical - Other 3.2x 3.0x 2.9x 2.9x 3.0x 18.5x 16.5x 21.0x 20.3x 22.0x 20.7% 26.5% 28.0% 19.8% 21.3% 15.7% 15.7% 14.7% 14.4% 14.1%
Median 2.7x 2.7x 2.6x 2.5x 2.8x 12.5x 10.6x 11.1x 11.7x 12.8x 14.2% 14.5% 13.3% 12.1% 11.1% 19.4% 19.4% 19.8% 19.7% 19.7%
• The SEG Software Index is segmented into 17 product categories
• See the appendix for the complete list of companies within each product category

THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY:
FINANCIAL PERFORMANCE
1Q13 YoY Change in Revenue Growth1Q13 TTM Revenue Growth 1Q13 YoY Change in Revenue Growth1Q13 TTM Revenue Growth
15%
20%
25%
30%
35%
40%
(20%)
0%
20%
40%
60%
0%
5%
10%
15%
ervice…
gence
pment…
&PLM
erprise…
ncial&…
aming
thcare
erates
Mobile…
king&…
ecurity
e,Data…
Chain…
ystems…
nance
Other
(100%)
(80%)
(60%)
(40%)
(20%)
rvice…
ence
ment…
PLM
prise…
ial&…
ming
care
rates
obile…
ng&…
curity
Data…
Chain…
tems…
ance
Other
Billing&S
BusinessIntelli
Develo
Engineering&
Ente
Finan
G
Healt
ITConglom
M
Networ
Se
Storage
Supply
Sy
Vertical-Fi
Vertical-
Billing&Ser
BusinessIntellige
Developm
Engineering&P
Enterp
Financ
Gam
Health
ITConglomer
Mo
Networkin
Sec
Storage,D
SupplyC
Syst
Vertical-Fina
Vertical-O
1Q13 YoY Change EBITDA Margin1Q13 TTM EBITDA Margin
B
25%
30%
35%
40%
(20%)
0%
20%
0%
5%
10%
15%
20%
ce…
ce
ent…
M
se…
&…
ng
re
es
ile…
&…
ty
ata…
ain…
ms…
ce
er
(100%)
(80%)
(60%)
(40%)
ce…
ce
ent…
M
se…
&…
ng
re
es
ile…
&…
ty
ata…
ain…
ms…
ce
er
Billing&Servic
sinessIntelligenc
Developme
Engineering&PL
Enterpris
Financial
Gamin
Healthcar
ITConglomerate
Mob
Networking
Securi
Storage,Da
SupplyCha
System
Vertical-Financ
Vertical-Othe
Billing&Servic
sinessIntelligenc
Developme
Engineering&PL
Enterpris
Financial
Gamin
Healthcar
ITConglomerate
Mobi
Networking
Securi
Storage,Da
SupplyCha
System
Vertical-Financ
Vertical-Othe
Bu
E
Bus
E

THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY:
MARKET VALUATIONS
1Q13 YoY Change in Median EV/Revenue Multiples1Q13 Median EV/Revenue Multiples
5.0x
6.0x
60%
80%
100%
2.0x
3.0x
4.0x
(20%)
0%
20%
40%
60%
0.0x
1.0x
gement
ligence
atforms
g&PLM
lanning
ounting
Gaming
althcare
merates
Content
Network…
Security
ement&…
ement&…
gement
Finance
-Other
(60%)
(40%)
(20%)
gement
ligence
atforms
g&PLM
lanning
ounting
Gaming
althcare
merates
Content
Network…
Security
ement&…
ement&…
gement
Finance
-Other
g&ServiceManag
BusinessIntel
DevelopmentPla
Engineering
rpriseResourcePl
Financial&Acco
G
Hea
ITConglom
MobileSolutions/C
Networking&N
S
age,DataManage
plyChainManage
SystemsManag
Vertical-F
Vertical
ng&ServiceManag
BusinessIntel
DevelopmentPla
Engineering
rpriseResourceP
Financial&Acco
G
Hea
ITConglom
MobileSolutions/C
Networking&N
S
age,DataManage
pplyChainManage
SystemsManag
Vertical-F
Vertical
• In 1Q13, seven product categories achieved median EV/Revenue multiples above the SEG Software Index median (2.8x), including
Business Intelligence (3.0x), Financial & Accounting (3.1x), Security (3.3x), Supply Chain Mgmt (3.3x), Systems Mgmt (4.8x), Vertical –
Finance (3.4x), and Vertical – Other (3.0x).
Billin
Ente
Stora
Sup
Billin
Ente
Stora
Sup
• Five of the seven leading categories reported double digit revenue growth and EBITDA margins.
• The Systems Management product category, benefitting from the rapid shift to cloud computing and the market requirement for cloud
infrastructure, achieved the highest median EV/Revenue multiple (4.8x) in 1Q13, driven by strong TTM revenue growth (17.2%) and
EBITDA margins (25.2%).
• The Billing & Service Mgmt category ‘s median EV/Revenue spiked 82%, closing 1Q13 at 2.4x, despite declining revenue growth.

PUBLIC SaaS COMPANY FINANCIAL ANDPUBLIC SaaS COMPANY FINANCIAL AND
THE SEG SaaS INDEX

SEG- SaaS: Median Metrics
THE SEG SaaS INDEX
• The SEG SaaS Index tracks public
companies that primarily offer hosted, on-
demand software under a subscription
Measure 1Q12 2Q12 3Q12 4Q12 1Q13
EV/EBITDA 33.6x 30.1x 42.4x 43.1x 35.4x
and/or transaction based pricing model
• The SEG SaaS Index is currently
comprised of 32 public pure-play SaaS
i *
EBITDA Margin 9.0% 9.0% 8.3% 8.5% 7.8%
Net Income Margin -0.5% -0.7% -0.5% 0.6% -0.9%
companies*
Cash & Eq ($M) $59.6 $78.0 $72.1 $86.1 $100.1
Current Ratio 1.5 1.8 1.5 1.7 1.9
* See appendix for a complete list of companies in The SEG SaaS Index

THE SEG SaaS INDEX DETAILS
SEG SaaS Index
Company
Athenahealth, Inc 6.8x 7.2x 8.2x 6.1x 7.2x 45.3x 50.0x 62.9x 48.9x 59.9x 32.0% 34.4% 34.2% 32.4% 30.3% 15.0% 14.5% 13.1% 12.5% 12.1%
Bazaarvoice, Inc 11.0x 9.4x 7.2x 4.3x 2.7x - - - - - - 64.6% 62.6% 59.3% 57.9% -20.7% -19.4% -17.8% -17.9% -18.2%
Callidus Softw are Inc. 2.8x 2.4x 2.0x 2.0x 2.1x - - - - - 18.2% 15.4% 15.0% 14.9% 13.3% -10.6% -10.3% -13.6% -14.8% -17.1%
Concur 7.8x 8.0x 8.7x 7.8x 7.9x 68.6x 59.2x 69.2x 67.5x 81.7x 21.0% 24.0% 25.7% 25.8% 25.1% 11.4% 13.6% 12.6% 11.5% 9.7%
Constant Contact 3.4x 2.3x 2.0x 1.3x 1.4x 33.6x 21.7x 19.8x 14.3x 17.9x 23.1% 21.4% 20.0% 19.1% 17.6% 10.2% 10.7% 10.3% 9.2% 7.8%
SEG SaaS Index
Constant Contact 3.4x 2.3x 2.0x 1.3x 1.4x 33.6x 21.7x 19.8x 14.3x 17.9x 23.1% 21.4% 20.0% 19.1% 17.6% 10.2% 10.7% 10.3% 9.2% 7.8%
Cornerstone OnDemand 11.3x 11.7x 12.9x 13.1x 13.4x - - - - - 67.0% 63.2% 72.2% 68.1% 61.5% -24.0% -25.5% -21.5% -24.1% -23.4%
DealerTrack 3.2x 3.1x 2.9x 2.9x 3.3x 21.0x 20.1x 19.5x 20.3x 23.9x 44.9% 39.2% 28.7% 16.8% 10.1% 15.3% 15.4% 15.1% 14.2% 13.8%
Demandw are, Inc. 14.6x 12.5x 9.8x 10.0x 8.9x 386.9x 553.5x - - - 54.1% 48.7% 45.0% 42.3% 40.5% 3.8% 2.3% -3.5% -5.9% -4.8%
E2open, Inc - - 4.6x 4.5x 5.9x - - 92.6x 76.6x 272.9x 7.5% - - 22.2% 25.6% 2.1% 1.6% 5.0% 5.9% 2.1%
Ebix Inc. 5.2x 4.1x 5.2x 3.7x 3.4x 12.0x 9.3x 12.2x 8.9x 7.9x 27.8% 22.8% 18.2% 18.4% 18.0% 43.4% 43.5% 42.9% 41.2% 42.4%
Ellie Mae 2.2x 4.6x 7.8x 6.0x 5.0x 24.4x 29.8x 37.9x 24.6x 19.5x 28.4% 46.4% 67.0% 83.5% 83.5% 9.0% 15.4% 20.6% 24.4% 25.5%
ExactTarget, Inc. 7.9x 6.0x 5.0x 4.4x 4.7x - - - 158.4x 339.9x 54.5% - - 43.1% 40.9% -3.3% -2.1% -0.1% 2.8% 1.4%
Fleetmatics - - - 7.5x 6.9x - - - 44.6x 37.0x 42.7% - - - 38.1% 17.9% 17.4% 17.0% 16.8% 18.6%
IntraLinks Holdings 1.7x 1.3x 1.4x 1.6x 1.6x 12.5x 13.8x 34.2x 467.2x 51.1x 15.5% 7.3% 2.9% 0.1% 1.8% 13.9% 9.0% 4.1% 0.4% 3.2%
Jive Softw are, Inc 13.3x 13.0x 8.7x 6.9x 7.6x - - - - - 67.0% 64.2% 56.8% 49.3% 47.1% -47.8% -44.7% -39.3% -34.9% -32.2%
LivePerson 5.3x 5.8x 6.0x 4.3x 4.3x 25.7x 30.1x 37.2x 30.3x 35.4x 21.1% 21.3% 21.4% 19.7% 18.3% 20.5% 19.2% 16.2% 14.1% 12.1%
Marin Softw are - - - - 8.2x - - - - - 90.1% 90.1% 90.1% - 64.9% -42.4% -42.4% -42.4% -37.2% -38.0%
Medidata Solutions 2.3x 3.0x 4.0x 4.4x 5.3x 11.4x 14.8x 22.9x 26.3x 31.8x 10.8% 14.5% 10.0% 12.1% 18.4% 20.0% 20.5% 17.7% 16.6% 16.6%
Netsuite 12.8x 12.5x 14.2x 14.6x 15.4x - - - - - 22.4% 24.6% 26.3% 28.4% 30.7% -7.4% -6.8% -5.6% -5.2% -5.2%
O T bl I 7 2 5 9 5 9 6 1 7 1 24 0 19 8 20 7 20 3 25 0 40 9% 30 3% 22 0% 17 1% 15 9% 30 2% 29 8% 28 5% 29 8% 28 5%OpenTable, Inc. 7.2x 5.9x 5.9x 6.1x 7.1x 24.0x 19.8x 20.7x 20.3x 25.0x 40.9% 30.3% 22.0% 17.1% 15.9% 30.2% 29.8% 28.5% 29.8% 28.5%
Qualys, Inc. - - 4.8x 4.8x 3.1x - - 57.6x 50.5x 27.7x 16.5% - - - 20.0% 10.9% 9.7% 8.3% 9.5% 11.3%
RealPage 6.9x 4.9x 6.1x 5.1x 5.0x 58.3x 39.8x 46.9x 36.0x 30.6x 37.0% 34.4% 32.0% 27.7% 24.9% 11.8% 12.2% 13.1% 14.1% 16.4%
Responsys 3.4x 3.4x 2.7x 1.4x 1.7x 21.6x 20.3x 20.3x 11.4x 14.0x 43.4% 36.3% 27.2% 21.1% 20.7% 15.7% 16.6% 13.1% 12.1% 11.8%
Salesforce.com 7.7x 8.2x 7.4x 7.4x 8.2x 165.1x 189.2x 167.9x 235.9x 298.6x 36.8% 37.7% 36.5% 36.1% 34.6% 4.7% 4.3% 4.4% 3.1% 2.8%
SciQuest 5.0x 5.0x 5.4x 4.7x 5.5x 37.1x 41.4x 47.1x 50.7x 96.2x 25.8% 23.3% 22.0% 21.4% 24.4% 13.5% 12.1% 11.6% 9.4% 5.7%
Service-now .com - 17.4x 18.4x 16.3x 14.9x - - - - - - - - - 90.3% 4.2% -6.7% -10.4% -12.7% -8.9%
SPS Commerce 4.7x 4.9x 5.6x 6.6x 6.4x 68.5x 68.5x 67.2x 78.0x 73.9x 30.0% 31.6% 31.5% 30.4% 33.0% 6.9% 7.1% 8.4% 8.5% 8.7%SPS Commerce 4.7x 4.9x 5.6x 6.6x 6.4x 68.5x 68.5x 67.2x 78.0x 73.9x 30.0% 31.6% 31.5% 30.4% 33.0% 6.9% 7.1% 8.4% 8.5% 8.7%
Tangoe 5.2x 6.3x 5.5x 3.2x 3.3x 61.7x 77.9x 70.3x 41.7x 38.9x 53.3% 56.0% 50.8% 48.1% 47.2% 8.4% 8.1% 7.8% 7.6% 8.5%
The Ultimate Softw are Group, Inc. 6.5x 7.0x 8.3x 8.0x 7.9x 65.7x 71.1x 80.0x 69.4x 63.7x 18.2% 19.6% 21.0% 21.8% 23.4% 9.9% 9.9% 10.4% 11.6% 12.5%
Vocus 2.6x 3.0x 3.3x 2.6x 2.1x 132.5x 284.2x 407.4x 233.1x - 18.7% 21.0% 29.9% 39.7% 48.7% 2.0% 1.1% 0.8% 1.1% -0.2%
Workday, Inc. - - - 33.2x 29.9x - - - - - 53.8% - - - 103.6% -51.4% -43.4% -38.1% -35.7% -32.5%
Zix Corporation 4.6x 3.9x 3.5x 3.6x 4.2x 14.6x 12.5x 11.3x 12.7x 15.3x 15.4% 12.4% 11.1% 12.0% 13.7% 31.3% 31.2% 30.7% 28.1% 27.6%
Median: 5.2x 5.4x 5.5x 4.8x 5.3x 33.6x 30.1x 42.4x 43.1x 35.4x 28.4% 30.3% 27.2% 24.0% 25.6% 9.0% 9.0% 8.3% 8.5% 7.8%

THE SEG SaaS INDEX: FINANCIAL PERFORMANCE
35%
35% achieved TTM
35.0%$180
29%
19%
16%
19%
20%
25%
30%
ompanies
35% achieved TTM
revenue growth of
40% or more
20.0%
25.0%
30.0%
$80
$100
$120
$140
$160
enue Growth
al Revenue
Only 3% of
generated TTM
revenue growth of
10% or less
0%
3%
13%
0%
5%
10%
15%
% of Co
0 0%
5.0%
10.0%
15.0%
$0
$20
$40
$60
$80
TTM Reve
TTM Tota
0%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
<= 50%
> 50%
TTM Revenue Growth
• After declining for three consecutive quarters, the median TTM
revenue growth rate for The SEG SaaS Index was 25.6% in
0.0%$0
1Q12 2Q12 3Q12 4Q12 1Q13
g
1Q13.
• Public SaaS companies continued to grow and mature,
pushing the median TTM revenue of the SEG SaaS Index to
$161.7M, up sharply from 1Q12’s $128.1M.
• Accelerating demand for SaaS solutions has bolstered the
TTM revenue growth rates of public SaaS providers, but many
are reaching a size that makes it difficult to recapture 2007’s
median 42.5% growth rate in a slow growing economy.
• We expect median TTM revenue growth will remain at current
We expect median TTM revenue growth will remain at current
levels for the remainder of 2013.

Public SaaS Company Financial PerformanceTHE SEG SaaS INDEX: FINANCIAL PERFORMANCE
87% with EBITDA margins of 20% or lower
30%10%
32%35%
15%
20%
25%
6%
8%
TDA Growth
A Margin
29%
26%
20%
25%
30%
ompanies
0%
5%
10%
0%
2%
4%
TTM EBIT
EBITDA
10%
3%
0%
5%
10%
15%
% of Co
• After peaking in 2010, the median EBITDA margins of public
SaaS companies have declined each quarter.
0%0%
1Q12 2Q12 3Q12 4Q12 1Q13
0%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
TTM EBITDA Margin
SaaS companies have declined each quarter.
• The trend continued in 1Q13, as EBITDA margins fell to 7.8%
from 9.0% in 1Q12.
• The decline in EBITDA margins has not been accompanied
by a concomitant increase in TTM revenue rates, suggestingy gg g
public SaaS providers are working harder to make a sale.

Public SaaS Company Market ValuationsTHE SEG SaaS INDEX: FINANCIAL PERFORMANCE
Median Margin PerformanceMedian Operating Ratios
45%
80%
25%
30%
35%
40%
Revenue
40%
50%
60%
70%
Margin
0%
5%
10%
15%
20%
% of R
0%
10%
20%
30%
% M
• Increased spending on sales and marketing by public SaaS
companies accounts for much of the decline in median
• Median gross profit margins for public SaaS companies in
1Q13 were 69.5%, and have remained steady over the past
0%
1Q12 2Q12 3Q12 4Q12 1Q13
0%
1Q12 2Q12 3Q12 4Q12 1Q13
p
EBITDA margin.
• In 1Q13, 39.0% of total revenue was spent on sales &
marketing, up from 36.2% in 1Q12.
• R&D spending as a percent of revenue increased to 17.4% in
, y p
five quarters.
• Stable gross profit margins demonstrate the ability of public
SaaS companies to grow without disproportionally increasing
infrastructure and application delivery costs.
1Q13, compared to 15.1% of revenue invested in R&D by
on-premise software companies.
• It is unclear whether the increased spending on product
enhancements and sales by public SaaS companies will
accelerate revenue growth in the absence of improved GDP
• With growth as their primary objective, public SaaS
companies are running at break even, with net income in
1Q13 of 0.9%.
accelerate revenue growth in the absence of improved GDP
growth and increased IT capital spending.

Public SaaS Company Financial Performance by Product CategoryTHE SEG SaaS INDEX: MARKET VALUATIONS
EV/Revenue Multiple DistributionEV/Revenue and EV/EBITDA Multiples
42 4 43 1x
50.0x
13% 13% 13% 13%14%
33.6x
30.1x
42.4x 43.1x
35.4x
25.0x
30.0x
35.0x
40.0x
45.0x
10% 10% 10%
7%
10%
8%
10%
12%
ompanies
5.2x 5.4x 5.5x 4.8x 5.3x
0 0x
5.0x
10.0x
15.0x
20.0x
0%
0%
2%
4%
6%
% of Co
• Median EV/Revenue multiples remained strong for public
SaaS providers, closing 1Q13 at 5.3x.
• The even distribution of EV/Revenue multiples across the
public SaaS company universe is striking and shows that it
0.0x
1Q12 2Q12 3Q12 4Q12 1Q13
0%
<= 1.0x > 1.0x
<= 2.0x
> 2.0x
<= 3.0x
> 3.0x
<= 4.0x
> 4.0x
<= 5.0x
> 5.0x
<= 6.0x
> 6.0x
<= 7.0x
> 7.0x
<= 8.0x
> 8.0x
<= 9.0x
> 9.0x
EV/Revenue
p , g Q
• Public SaaS providers in 1Q13 continued to trade at a
significant premium relative to their on-premise peers (5.3x
vs. 2.8x).
• Public SaaS EV/Revenue multiples have exceeded 5x in four
p p y g
takes much more than carrying the SaaS moniker to achieve
a premium EV/Revenue multiple.
• Typically we would expect to see a cluster of companies
possessing multiples around the median (5.3x), however,
there are as many companies in the 5 0x 6 0x EV/Revenue
of the past five quarters, the best streak since 2007.
there are as many companies in the 5.0x – 6.0x EV/Revenue
range as the 9.0x range .
• What distinguishes companies with premium EV/Revenue
multiples versus those that do not?

Public SaaS Company Market Valuations by Product CategoryTHE SEG SaaS INDEX: MARKET VALUATIONS
10.8x
12.0x 8.5x9.0x
5.7x
7.5x
4 7x
6.0x
8.0x
10.0x
EV/Revenue
5.5x
4.6x
5.0x
5.0x
6.0x
7.0x
8.0x
EV/Revenue
0.0x
1.6x
3.4x
4.7x
0 0x
2.0x
4.0x
Median E
3.4x
0 0x
1.0x
2.0x
3.0x
4.0x
Median E
• There is a clear and direct correlation between TTM revenue
growth and median EV/Revenue multiples
• There is an inverse correlation between EBITDA margins
and median EV/Revenue multiples
0.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
<= 50%
> 50%
TTM Revenue Growth
0.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
TTM EBITDA Margin
growth and median EV/Revenue multiples.
• Public SaaS companies growing TTM revenue in excess of
50% achieved a median EV/Revenue multiple of 10.8x.
• The premium market valuations awarded rapidly growing
public SaaS companies accounts, in large part, for their
and median EV/Revenue multiples.
• In the current universe, SaaS profitability is penalized, as
investors fear profitability is at the expense of growth, which
they deem all important.
• Public SaaS companies with no profitability achieved apublic SaaS companies accounts, in large part, for their
increased spending on sales & marketing.
p p y
remarkable 8.5x median EV/Revenue multiple.

THE SEG SaaS INDEX BY PRODUCT CATEGORY
CRM & Marketing 6.5x 5.9x 5.5x 4.3x 4.3x 3.0x 4.1x 4.5x 2.8x 2.3x 36.8% 36.3% 29.9% 36.1% 37.7% 3.3% 2.7% 2.6% 2.9% 2.1%
ERP & Supply Chain 5.0x 5.0x 5.5x 6.6x 6.4x 4.4x 5.0x 5.3x 5.0x 5.6x 25.8% 24.6% 26.3% 25.3% 30.7% 6.9% 7.1% 8.4% 8.5% 5.7%
Vertically Focused 4.2x 4.3x 5.7x 4.7x 5.0x 3.7x 4.1x 4.6x 3.9x 4.2x 30.2% 34.4% 30.3% 23.0% 21.6% 15.2% 15.4% 16.4% 15.4% 16.5%
SEG SaaS Index
Category
EV/Revenue Forward EV/Revenue TTM Revenue Growth EBITDA Margin
Workforce Management 6.5x 7.0x 8.3x 10.5x 10.7x 5.7x 6.5x 7.3x 7.6x 8.0x 36.0% 19.6% 21.0% 21.8% 42.5% -17.3% -17.9% -17.6% -19.4% -20.2%
Median: 5.2x 5.4x 5.5x 4.8x 5.3x 4.4x 4.8x 4.9x 4.3x 4.7x 29.2% 30.9% 28.0% 25.8% 27.9% 9.4% 9.4% 8.4% 8.8% 8.2%
With 32 companies, The SEG SaaS Index now has sufficient critical mass for us to track trends
across four distinct SaaS product categories Select companies within each SaaS Product
CRM & M k ti ERP & S l Ch i V ti ll F d W kf M t
across four distinct SaaS product categories. Select companies within each SaaS Product
category are included below. See the appendix for the complete list of companies within each
product category.
CRM & M k ti ERP & S l Ch i V ti ll F d W kf M tCRM & Marketing ERP & Supply Chain Vertically Focused Workforce ManagementCRM & Marketing ERP & Supply Chain Vertically Focused Workforce Management

THE SEG SaaS INDEX BY PRODUCT CATEGORY:
25%
30%
35%
40%
45%
0%
10%
20%
30%
0%
5%
10%
15%
20%
25%
(40%)
(30%)
(20%)
(10%)
0%
CRM&
Marketing
ERP&
SupplyChain
Vertically
Focused
Workforce
Management
(40%)
CRM&
Marketing
ERP&
SupplyChain
Vertically
Focused
Workforce
Management
10%
15%
20%
0%
10%
20%
(15%)
(10%)
(5%)
0%
5%
(40%)
(30%)
(20%)
(10%)
g
in
ed
e
nt
(25%)
(20%)
( )
CRM&
Marketing
ERP&
plyChain
Vertically
Focused
orkforce
nagement
CRM&Marketin
RP&SupplyChai
VerticallyFocuse
Workforce
Managemen
M
E
Supp
V
Wo
Man
ER
V

THE SEG SaaS INDEX BY PRODUCT CATEGORY:
MARKET VALUATIONS
10.0x
12.0x
60%
80%
6.0x
8.0x
0%
20%
40%
0.0x
2.0x
4.0x
g
n
y
d
nt
(40%)
(20%)
0%
g
n
ly
d
nt
• Workforce Management category achieved a 10.3x median EV/Revenue multiple, 66% higher than the next closest product category,
CRM&
Marketing
ERP&
SupplyChai
Verticall
Focused
Workforce
Managemen
CRM&
Marketin
ERP&
SupplyChai
Verticall
Focused
Workforce
Managemen
g g y g g y
ERP & Supply Chain.
• The stellar performance of SaaS providers comprising the Workforce Management category can be attributed to their breakneck
TTM revenue growth, with no profits.
• Workforce management SaaS providers continued to benefit from a product refresh cycle that is replacing legacy, on-premise
solutions with hosted SaaS solutions.
• ERP & Supply chain, one of the last product categories to adopt SaaS solutions due to concerns over security and integration,
achieved the second highest median EV/Revenue multiple (6.2x).
• Although ERP & Supply Chain TTM revenue growth was only slightly above the SaaS median, companies within this product
t i d i k t l ti b f th i k t t ti l f h t d ERP & S l Ch i l ti
category received premium market valuations because of the massive market potential of hosted ERP & Supply Chain solutions.

PUBLIC INTERNET COMPANY FINANCIAL ANDPUBLIC INTERNET COMPANY FINANCIAL AND
THE SEG INTERNET INDEX

Public Internet Company Market Valuations by Product CategoryTHE SEG INTERNET INDEX
SEG- Internet: Median Metrics
• The SEG Internet Index tracks public
companies that primarily offer B2C
solutions over the Internet using a wide
Measure 1Q12 2Q12 3Q12 4Q12 1Q13
EV/EBITDA 13.4x 12.6x 13.3x 12.8x 13.6x
array of pricing models
• The SEG Internet Index is currently
comprised of 97 public Internet
i *
EBITDA Margin 13.6% 13.3% 13.0% 12.9% 13.0%
Net Income Margin 4.3% 4.8% 4.3% 5.3% 3.9%
companies*
( )
Cash & Eq ($M) $136.2 $130.7 $122.1 $130.4 $148.2
Current Ratio 2.4 2.6 2.6 2.5 2.2
* See appendix for a complete list of companies in The SEG Internet Index

Initial Public OfferingsTHE SEG INTERNET INDEX: FINANCIAL PERFORMANCE
23%25%
35.0%$410
21%
12%
18%
16%
10%
15%
20%
ompanies
20.0%
25.0%
30.0%
$370
$380
$390
$400
nue Growth
al Revenue
10%
0%
5%
10%
% of Co
0 0%
5.0%
10.0%
15.0%
$330
$340
$350
$360
TTM Reve
TTM Tota
0%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM Revenue Growth
• Over the past year, The median TTM revenue growth rate of public
companies comprising The SEG Internet Index declined 10%
0.0%$330
1Q12 2Q12 3Q12 4Q12 1Q13
co pa es co p s g e S G te et de dec ed 0%
(29.8% to 19.8%) in 1Q13.
• While lower, the 19.8% median Internet growth rate is still healthy,
especially considering the median TTM revenue of The SEG
Internet Index is $400M, compared to only $162M for The SEG
SaaS IndexSaaS Index.
• The SEG Internet Index had an impressive number of star
performers, 23% of companies in the Index reported TTM revenue
growth of 40% or higher.
• Conversely 21% of companies in The SEG Internet Index posted
• Conversely, 21% of companies in The SEG Internet Index posted
negative TTM revenue growth, depressing the median as a whole.

Public SaaS Company Financial PerformanceTHE SEG INTERNET INDEX: FINANCIAL PERFORMANCE
30%
30%16%
21%
23%
24%
14%
15%
20%
25%
ompanies
15%
20%
25%
8%
10%
12%
14%
TDA Growth
A Margin
9% 9%
0%
5%
10%
% of Co
0%
5%
10%
0%
2%
4%
6%
TTM EBIT
EBITDA
0%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM EBITDA Margin
• Over the past five quarters, public Internet companies
managed to maintain respectable margins despite the
0%0%
1Q12 2Q12 3Q12 4Q12 1Q13
g p g p
declining revenue growth rates.
• The median ~13% EBITDA margins were consistent with
2006 and 2007 performance, but were dramatically lower
than the 18.1% median EBITDA achieved in 1Q11.
• The EBITDA margin decline was partly due to a larger
number of Internet IPOs featuring Internet providers with
stellar revenue growth, but little, if any, profitability.
• 45% of all public Internet companies posted EBITDA
margins of 10% or lower
margins of 10% or lower.

Public SaaS Company Market ValuationsTHE SEG INTERNET INDEX: FINANCIAL PERFORMANCE
Median Margin PerformanceMedian Operating Ratios
25%
80%
15%
20%
Revenue
40%
50%
60%
70%
Margin
0%
5%
10%
% of R
0%
10%
20%
30%
% M
• In 1Q13, companies comprising the SEG Internet Index spent 23.7% of total revenue on sales and marketing (S&M), 15.2% on
research development (R&D), and 10.6% on general and administrative.
0%
1Q12 2Q12 3Q12 4Q12 1Q13
0%
1Q12 2Q12 3Q12 4Q12 1Q13
p ( ), g
• The median R&D spend as a percent of total revenue was the lowest among our three tracking indices.
• Despite TTM revenue growth declines, public Internet companies kept their cost structures in line, resulting in a median TTM
EBITDA margin of 13% in 1Q13.

THE SEG INTERNET INDEX: MARKET VALUATIONS
EV/Revenue Multiple DistributionMedian EV/Revenue and EV/EBITDA Multiples
13 6
16.0x
27%
30%
13.4x
12.6x
13.3x
12.8x
13.6x
8.0x
10.0x
12.0x
14.0x 24%
15%
20%
25%
ompanies
2.2x 2.1x 1.9x 2.0x 2.0x
0 0x
2.0x
4.0x
6.0x 9% 9% 9%
4%
2%
1%
7%
8%
0%
5%
10%
% of Co
• In 1Q13, the median EV/Revenue multiple of The SEG Internet Index was 2.0x, a modest decline from 1Q12’s 2.2x.
• As the median EV/Revenue multiple distribution shows public Internet companies garner a strikingly wide range of market
0.0x
1Q12 2Q12 3Q12 4Q12 1Q13
0%
<= 1.0x > 1.0x
<= 2.0x
> 2.0x
<= 3.0x
> 3.0x
<= 4.0x
> 4.0x
<= 5.0x
> 5.0x
<= 6.0x
> 6.0x
<= 7.0x
> 7.0x
<= 8.0x
> 8.0x
<= 9.0x
>= 9.0x
EV/Revenue
• As the median EV/Revenue multiple distribution shows, public Internet companies garner a strikingly wide range of market
valuations; 51% had EV/Revenue of 2.0x or less, while 15% boasted an EV/Revenue multiple of 8.0x or greater.
• Those Internet companies with the highest EV/Revenue multiples were mostly new IPOs that were positioned to capitalize upon
the shift to online advertising, and several benefited also from having originated in high growth economies such as China and
Brazil. Examples include: LinkedIn (16.8x), Facebook (11.3x), Qihoo (10.3x), Mercadolibre (9.8x), Zillow (9.8x), Youku (9.6x), Yelp
(9.4x) and Trulia (8.9x).

THE SEG INTERNET INDEX: MARKET VALUATIONS
8.0x
9.0x 7.5x8.0x
8.0x
5.0x
6.0x
7.0x
8.0x
EV/Revenue
4.4x
4.0x
5.0x
6.0x
7.0x
EV/Revenue
0.8x
1.8x
2.9x 3.0x
2.1x
0 0x
1.0x
2.0x
3.0x
4.0x
Median E
1.7x
1.0x
2.0x
2.9x
0 0x
1.0x
2.0x
3.0x
Median E
• Public Internet company valuation performance is
dramatically split between new, rapidly growing social and
• Unlike The SEG SaaS Index where TTM EBITDA margins
have little bearing on the median EV/Revenue multiple
0.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM Revenue Growth
0.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
TTM EBITDA Margin
y p , p y g g
ad-tech providers and other, slower growing incumbent
providers, e.g. Facebook vs. Yahoo.
• Public Internet companies with TTM revenue growth of 40%
or higher were rewarded with median EV/Revenue multiples
markedly higher than their slower growing peers
have little bearing on the median EV/Revenue multiple
applied to a company, public Internet company investors kept
a keen eye on margins and rewarded strong performers with
significantly higher market valuations.
• With few exceptions, and in stark contrast to SaaS
markedly higher than their slower growing peers.
• The relative market valuations of public Internet companies
with TTM revenue growth greater than 0% and less than
40%, was nominal (1.8x to 3.0x), especially in light of the
major differences among public SaaS companies across this
p
companies, many of the most profitable public Internet
companies also reported stellar TTM revenue growth. Among
them were ChangYou, Baidu, Yandex, Mail.ru, TripAdvisor
and Tencent Holdings.
revenue distribution spread.

THE SEG INTERNET INDEX BY PRODUCT CATEGORY
SEG Internet Index
Ad Tech & Lead Generation 2.7x 2.1x 1.7x 1.9x 1.8x 14.1x 11.4x 13.3x 12.0x 14.9x 34.4% 37.5% 35.3% 32.9% 25.2% 13.9% 14.0% 14.4% 14.1% 13.0%
Commerce 0.8x 0.7x 0.7x 0.9x 0.9x 16.6x 20.8x 15.4x 15.2x 10.6x 18.8% 22.0% 17.1% 16.2% 14.9% 5.3% 5.1% 5.4% 5.5% 5.6%
Content & Media 1.8x 1.6x 1.3x 1.4x 1.6x 10.4x 10.1x 10.8x 10.9x 15.4x 25.8% 15.5% 12.3% 10.5% 12.6% 13.9% 14.0% 14.1% 14.1% 14.8%
Gaming 3 2x 3 4x 2 1x 2 0x 2 7x 4 2x 4 0x 3 4x 3 7x 5 8x 35 7% 33 1% 32 0% 25 1% 21 9% 43 9% 45 5% 43 9% 42 6% 36 3%
Category
Gaming 3.2x 3.4x 2.1x 2.0x 2.7x 4.2x 4.0x 3.4x 3.7x 5.8x 35.7% 33.1% 32.0% 25.1% 21.9% 43.9% 45.5% 43.9% 42.6% 36.3%
Infrastructure 1.8x 1.5x 0.9x 0.9x 1.3x 13.6x 13.7x 11.4x 11.7x 11.9x 25.3% 18.8% 13.6% 13.0% 13.2% 11.9% 10.7% 8.3% 7.3% 7.9%
Services 3.0x 2.2x 2.9x 2.7x 3.2x 18.1x 16.9x 16.4x 17.7x 15.3x 53.2% 55.1% 49.5% 42.0% 42.2% 6.6% 6.7% 7.5% 8.7% 8.5%
Social 15.1x 13.0x 9.6x 8.6x 8.9x 36.8x 30.4x 29.3x 36.4x 29.9x 74.5% 64.0% 64.6% 50.9% 49.3% 12.2% 12.9% 12.6% 13.3% 16.1%
Travel 4.7x 3.1x 2.5x 3.5x 3.6x 15.2x 15.5x 16.5x 16.0x 18.1x 31.5% 29.1% 24.0% 21.8% 19.8% 17.6% 18.1% 19.4% 19.1% 18.1%
Median 2.2x 2.1x 1.9x 2.0x 2.0x 13.4x 12.6x 13.3x 12.8x 13.6x 29.8% 27.6% 24.9% 22.2% 19.8% 13.6% 13.3% 13.0% 12.9% 13.0%
The SEG Internet Index is segmented into eight product categories. Select companies within each
Internet product category are included below. See the appendix for the complete list of companies
within each product category.
Ad Tech & Lead Gen Commerce Content & Media GamingAd Tech & Lead Gen Commerce Content & Media Gaming
Infrastructure Services Social Travel

THE SEG INTERNET INDEX BY PRODUCT CATEGORY:
30%
40%
50%
60%
(30%)
(20%)
(10%)
0%
0%
10%
20%
30%
on
ce
ia
ng
re
es
ial
el
(60%)
(50%)
(40%)
(30%)
on
ce
ia
ng
re
es
ial
vel
AdTech&
LeadGeneratio
Commerc
Content&Med
Gamin
Infrastructu
Service
Soci
Trav
AdTech&
LeadGeneratio
Commerc
Content&Med
Gamin
Infrastructu
Service
Soc
Trav
2 %
30%
35%
40%
10%
20%
30%
40%
5%
10%
15%
20%
25%
(30%)
(20%)
(10%)
0%
10%
0%
AdTech&
adGeneration
Commerce
ntent&Media
Gaming
Infrastructure
Services
Social
Travel
(40%)
AdTech&
adGeneration
Commerce
ntent&Media
Gaming
Infrastructure
Services
Social
Travel
Lea
Co
Lea
Co

THE SEG INTERNET INDEX BY PRODUCT CATEGORY:
MARKET VALUATIONS
8.0x
9.0x
10.0x
10%
20%
4.0x
5.0x
6.0x
7.0x
(20%)
(10%)
0%
0 0x
1.0x
2.0x
3.0x
4.0x
(40%)
(30%)
(20%)
0.0x
AdTech&
eadGeneration
Commerce
ontent&Media
Gaming
Infrastructure
Services
Social
Travel
(50%)
AdTech&
adGeneration
Commerce
ntent&Media
Gaming
Infrastructure
Services
Social
Travel
• The Social product category closed Q1 with the highest median EV/Revenue multiple among the eight Internet product categories we
track, the 10.3x median market valuation was 147% higher than the next closest product category, Travel (3.6x).
• Social solutions Facebook, LinkedIn, Yelp, etc continued to expand their online footprints and investors rewarded them accordingly.
S i l M k t l ti l fl t d i ifi t Y Y EBITDA i i t t b d t t d t
Le
Co
A
Lea
Con
Social Market valuations also reflected significant YoY EBITDA margin improvement, as category members demonstrated a greater
ability to monetize their large user bases with advertising, subscriptions, more mobile offerings and other value added services.
• The Commerce product category lagged all other product categories, with a 0.9x EV/Revenue multiple, a tepid TTM revenue growth
of 14.9%, and a lackluster 5.6% EBITDA margin. Amazon, one of the most notable commerce companies, is aggressively trying to
diversify its content offerings and expand its hardware offerings as a way of differentiating from competitors and driving more spend
y g p g y g p g p
through its platform.

SOFTWARE INDUSTRY M&A MARKET UPDATE

SOFTWARE/SaaS M&A DEAL VOLUME AND SPENDING
TTM Average M&A Deal SizeU.S. Software Mergers & Acquisitions Activity
431
407
421 426 430
454 456
432
454
435
406
$23.4
$23 1
$25
450
500
$37
$40
$42 $41 $41 $42
$36
$39
$36
$40.0
$45.0
ons)
383
407 406
362
$17.3
$17.9
$12.7 $13.1
$21.3
$12.6
$15.8
$23.1
$12.3
$15.8 $15
$20
250
300
350
400
Value (BIllion
mber of Deals
$20
$28
$31
$33
$36 $36
$20.0
$25.0
$30.0
$35.0
Deal Value (Millio
$4.6
$8.4
$0
$5
$10
0
50
100
150
200
ns)
Num
$0 0
$5.0
$10.0
$15.0
$
TTM Average
• M&A deal volume declined markedly in 1Q13 likely a result
of heightened concern about the economic impact of the
• The software M&A average deals size remained in the mid to
high $30M range, after surging and peaking in 2011.
$00
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Deals Value
$0.0
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
g p
U.S. sequestration*.
• Total M&A spending dropped sharply to $8.4 billion, mostly
due to scarcity of software mega deals.
• The sole mega deal (> $500 million) in 1Q13 was Fiserv’s
high $30M range, after surging and peaking in 2011.
• Software buyers have remained true to their word. Of the
large software buyers who responded to our Annual Buyer
Survey over the last two years, 72% on average said they
would focus on deals ranging in size from $10M - $99M.
acquisition of Open Solutions ($1 billion) .
• Based upon our 2013 Software Company Buyers Survey
and more recent conversations with a wide array of buyers,
we expect M&A transaction will surpass 400 in each of the
remaining quarters in 2013
remaining quarters in 2013.
* We expect the finally tally will be about 5% higher,
since prior quarter M&A announcements and data
are often released well into the following quarter

SOFTWARE M&A EXIT MULTIPLES
Median Exit Multiples Median EV/Revenue Exit Multiple Distribution
12.2x 12.1x
11 2
11.8x
12.7
12 0
14.0x
29.4%
30.0%
35.0%
11.2x
6 0
8.0x
10.0x
12.0x
24.4%
21.8%
14.3%
15.0%
20.0%
25.0%
oftwareSellers
1.9x 1.7x
2.3x
1.8x 1.6x
0 0x
2.0x
4.0x
6.0x
10.1%
0 0%
5.0%
10.0%
15.0%
%ofSo
• Since reaching a median TTM exit multiple of 2.3x in 3Q12,
the median exit multiple of on-premise software providers
• On a TTM basis, 75.6% of all on-premise software targets
were acquired for 3.0x TTM revenue or less.
0.0x
1Q12 2Q12 3Q12 4Q12 1Q13
0.0%
<=1.0x >1.0x
<=2.0x
>2.0x
<=3.0x
>3.0x
<=4.0x
>4.0x
EV/Revenue Exit Multiple
the median exit multiple of on premise software providers
has dropped for two sequential quarters, ending 1Q13 at
1.6x.
• The median on-premise software exit multiple for all public
and private transactions with a quantifiable EV/Revenue
l ti h l d th di i it lti l f
e e acqu ed o 3 0 e e ue o ess
• The remaining 24.4% of targets came from sectors growing
much faster than the broader on-premise software market
such as cloud and network infrastructure.
• Select transactions include: Kofax acquisition of BI provider
valuation has lagged the median on-premise exit multiple of
public on-premise software companies by ~30% for the past
several years, as many targets were acquired primarily for
their customer bases and M&S revenue streams.
altosoft ($13.5M, 4.0x rev.), JDS Uniphase acquisition of
wireless network optimization provider Arieso ($85M, 4.0x
rev.) and Juniper Networks acquisition of network
optimization provider Webscreen ($9.9M, 7.0x rev.).

SOFTWARE M&A: BY OWNERSHIP STRUCTURE AND SIZE
Public Sellers
1.6x Median Multiple
30%
Buyer Less Than
$200 million
1.4x Median
Multiple
Buyer Greater
Than $200 million
2.7x Median
Multiple
by Sizeby Ownership Structure
Private Sellers
70%
30% MultipleMultiple
56%44%
Private Buyers
69%
31%
Seller Greater
Than $20
million: 1.5x
Seller Greater
Than $20
million: 0.8x
Seller Greater
Than $20
million: 1.4x
Seller Greater
Than $20
million: 2.6x
Public Buyers
69%
Seller Less
Than $20
million: 2.4x
Seller Less
Than $20
million: 2.0x
Seller Less
Than $20
million: 1.5x
Seller Less
Than $20
million: 3.3x
• Simply put when analyzing software M&A by ownership structure and size deals with the highest multiples occur when a large• Simply put, when analyzing software M&A by ownership structure and size, deals with the highest multiples occur when a large
buyer (greater than $200 million in revenue) buys a small target (less than $20 million). On a median basis, such a combination
produced a 3.3x EV/Revenue exit multiple in 1Q13.
• The big buyer/small target multiple, which is more than twice the median on-premise software exit multiple, is often driven by a
buyer that deems a target’s technology and products to be very well executed and highly scalable.
• Select example transactions include: Juniper Networks 1Q13 acquisition of network optimization provider Webscreen ($9.9M,
7.0x rev.) , KEYW Holding’s 3Q12 acquisition of SIEM provider Sensage ($85.5M, 7.1x rev.), Spirent Communications’ 2Q12
acquisition of network performance management provider MU Dynamics ($40M, 4.5x rev.).

Horizontal & Vertical M&A Median EV/Revenue Exit
SOFTWARE M&A: BY VERTICAL AND HORIZONTAL
MARKETS
Horizontal & Vertical M&A Median EV/Revenue Exit
Multiples
Horizontal & Vertical M&A Volume
68.0% 65.0% 63.0% 58.0% 67.0%
60.0%
80.0%
100.0%
2 3x
3.0x
2 2x
32.0% 35.0% 37.0% 42.0% 33.0%
0.0%
20.0%
40.0%
60.0%
1Q12 2Q12 3Q12 4Q12 1Q13
1.3x
1.9x 2.0x
1.4x 1.3x
2.3x
1.6x
2.2x
1.8x
1Q12 2Q12 3Q12 4Q12 1Q131Q12 2Q12 3Q12 4Q12 1Q13
Horizontal Vertical
1Q12 2Q12 3Q12 4Q12 1Q13
Vertical Horizontal
• As they have for most of the past five quarters horizontal software providers garnered the lion’s share of M&A transactions in• As they have for most of the past five quarters, horizontal software providers garnered the lion s share of M&A transactions in
1Q13, as well as a higher median exit valuation than their vertical peers.
• A good number of vertical markets are still recovering from the economic downturn; others are being adversely impacted by
sequestration; and big buyer demand for vertical domain expertise was sated during a spate of vertical acquisitions during 2006-
2010.
• Select horizontal M&A transactions included: Advanced Computer Software Group’s acquisition of ERP provider Computer
Software Holdings ($164.2M, 1.8x rev.), Juniper Networks 1Q13 acquisition of network optimization provider Webscreen ($9.9M,
7.0x rev.).
• Select vertical M&A transactions included: Enghouse Systems acquisition of public sector software provider Locus ($14M, 0.8x
) T i ’ i iti f bli t t t ti ft id Sk Hi h ($5 8M 0 5 )
rev.), Tracsis’ acquisition of public sector transportation software provider Sky High ($5.8M, 0.5x rev.).

SOFTWARE M&A BY PRODUCT CATEGORY
Content & Document Mgmt
Data Mgmt & Integration
1.5%
Asset & Facilities Mgmt
Billing & Service
Provisioning
1.1%
• The Mobile product category accounted for
22.2% of all software M&A transactions in
the first quarter, making it the most active
4.6%
CRM,
Marketing
& Sales
2.7%
Dev. Tools & IT Asset Mgmt
1.5%
Engineering, PLM & CAD
4.6%
MiddlewareRetail
Telecommunications
0.8%
Utility
1.1%
Other Verticals
7.3%
Accounting & Finance
0.4%
2.3% BI, Risk &
Compliance
2.3%
among all product categories
• Other active M&A categories in the first
quarter included: Healthcare (7.3%),
Financial Services (6.5%), Multimedia,
Graphics & Communications (5 0%)
Middleware
0.4%
ERP
0.4%
Entertainment
3.4%
HR & Workforce Mgmt
4.2%
Legal
0.8%
Manufacturing
0.8%
Non‐Profit
0.4%
Real Estate
0.4%
0.4%
Graphics & Communications (5.0%),
Supply Chain Mgmt & Logistics (4.6%) and
Engineering, PLM & CAD (4.6%).
• The number of software product categories
reporting significant transaction volumes in
1Q13 i t t t t th ib f th
Messaging, Conferencing &
Communications
1.9%
Multimedia, Graphics &
Communications
5.0%
Network Performance Financial Services
Healthcare
7.3%
Insurance
1.9%
Verticals
1Q13 is testament to the vibrancy of the
current software M&A market.
Mgmt
1.5%
Security
1.9%
Systems Mgmt
1.9%
Supply Chain Mgmt &
Logistics
Automotive
1.1%
Construction
0.8%
Education
1.9%
6.5%
4.6%Mobile
22.2%

SOFTWARE M&A BY PRODUCT CATEGORY
3.1x
Median EV/Revenue Exit Multiples by Software Product Category
2.0x 2.0x 1.9x
1.7x 1.6x 1.6x
1.4x 1.4x
0.8x
Systems
Management
Healthcare
Mobile
EDA
nufacturing&
ssetMgmt
DataMgmt&
Integration
herVerticals
A&D,Telco,
Retail,etc.)
pplyChain&
Logistics
cialServices
Software
nt,Document
Business
cessMgmt
M
Man
As
D
Ot
(A
R
Sup
Financ
S
Conten
and
Proc
• Among the 32 on-premise software product companies we track ten had both sufficient deal activity and deal data to ascertain a• Among the 32 on-premise software product companies we track, ten had both sufficient deal activity and deal data to ascertain a
TTM revenue multiple in 1Q13.
• Software company sellers focused on Systems Management garnered the highest median TTM revenue multiple (3.1x) among
those ten product categories. Buyers in this product category are paying healthy multiples to targets that will enhance their cloud
and mobile computing strategies.
• Healthcare also posted a strong median EV/Revenue exit multiple in 1Q13. Although health care has traditionally been a
technology laggard, adoption of solutions that speed and smooth the transition from fee for service to fee for value care is
ramping sharply.
• Content and Document management multiples continued to lag the broader market in 1Q13 with a median exit multiple of 0.8x.

SaaS M&A: DEAL VOLUME AND EXIT MULTIPLES
4.1x
94 94 25%100
SaaS M&A Deals SaaS as % of Software
Median SaaS EV/Revenue Exit MultiplesSaaS M&A Volume
3.9x
4.0x
3.9x
4.0x
39 39
45 48
68 65
59
94 94
86
15%
20%
50
60
70
80
90
als as a % of Total
e M&A Deals
S M&A Deals
1Q12 2Q12 3Q12 4Q12 1Q13
10
30
39
26
39
0%
5%
10%
0
10
20
30
40
SaaS M&A Dea
Software
# of SaaS
• There were 86 SaaS M&A transactions in 1Q13 We project a total of 344 SaaS deals in 2013 which would surpass 2012’s• There were 86 SaaS M&A transactions in 1Q13. We project a total of 344 SaaS deals in 2013, which would surpass 2012 s
record breaking total of 311.
• After a steady rise from 2009 – 2012, the median TTM EV/Revenue exit multiple of SaaS transactions has held relatively steady
over the past five quarters, closing 1Q13 at 4.0x.
• The median SaaS exit multiple premium was 150% on-premise greater than the median exit multiple reached in 1Q13 (4.0x vs.The median SaaS exit multiple premium was 150% on premise greater than the median exit multiple reached in 1Q13 (4.0x vs.
1.6x), the greatest valuation disparity on record.

SaaS M&A BY PRODUCT CATEGORY
Content & Document
Mgmt
4 7%
Billing & Service
Provisioning
BI, Risk & Compliance
8.1%
• CRM, Marketing & Sales was by far the
most active SaaS product category,
garnering 17.4% of all M&A transactions
in the first quarter.
• Buyers are seeking out targets who can
4.7%
CRM, Marketing & Sales
17.4%
Retail
Vertical ‐ Other
7.0%
Provisioning
2.3%
• Buyers are seeking out targets who can
best position them to take advantage of
the rapid growth in marketing spend
expected over the next five years.
According to Gartner, by 2017 the CMO
will purchase more IT than the CIO
Data Mgmt & Integration
2.3%
Ecommerce
Public Sector
2.3%
Real Estate
1.2%
Retail
4.7%
will purchase more IT than the CIO.
• Other product categories with relatively
high number of M&A transactions
include: HR & Workforce Management
(8.1%), BI, Risk & Compliance (8.1%)
3.5%
Engineering, PLM & CAD
1.2%
HR & Workforce Mgmt
8 1%Fi i l S i
Healthcare
3.5%
Insurance
3.5%
Legal
1.2%
Non‐Profit
3.5%
Verticals
and Messaging, Conferencing and
Communications (5.8%).
8.1%
Messaging, Conferencing
& Communications
5.8%
Multimedia,
Graphics &
Systems
Mgmt
Supply Chain Mgmt
& Logistics
Construction
1.2%
Education
4.7%
Financial Services
1.2%
Graphics &
Communications
3.5%
Security
3.5%
Mgmt
3.5%
& Logistics
2.3%

1Q13 SaaS M&A TRANSACTIONS
Date Buyer Seller
Enterprise
Value
TTM
Revenue EV/Rev
03/28/13 HubSpot, Inc. Chime Inc. and PrepWork Inc. - - -
03/26/13 The Lords Group of Companies eBuildingSupplies Ltd. - - -
03/25/13 Quindell Portfolio Plc (AIM:QPP) iSaaS Technology Limited $8,890,000 - -
03/21/13 EQT Partners AB it's learning AS - - -03/21/13 EQT Partners AB it s learning AS
03/21/13 j2 Global, Inc. (NasdaqGS:JCOM) Data Lock Limited $499,000 - -
03/20/13 Yahoo! Inc. (NasdaqGS:YHOO) Jybe, Inc. - - -
03/20/13 Rumblefish, Inc. Catalogik, Inc. - - -
03/19/13 Echo Global Logistics, Inc. (NasdaqGS:ECHO) Open Mile, Inc. - - -
03/19/13 PeopleMatter, Inc. PeopleClues, Inc. - - -
03/19/13 Blackbaud Inc. (NasdaqGS:BLKB) MyCharity Limited - - -03/19/13 Blackbaud Inc. (NasdaqGS:BLKB) MyCharity Limited
03/18/13 Ebix Health Benefit Softw are, Inc. - - -
03/15/13 Noodle Education, Inc. Lore, Inc. - - -
03/13/13 Oracle Corporation (NasdaqGS:ORCL) Nimbula, Inc. - - -
03/12/13 Corporation Service Company, Inc. CSC Digital Brand Services $157,260,000 $57,000,000 2.8x
03/11/13 Concur Technologies, Inc. (NasdaqGS:CNQR) conTgo limited - - -
03/11/13 Tripw ire, Inc. nCircle Netw ork Security, Inc. - - -03/11/13 Tripw ire, Inc. nCircle Netw ork Security, Inc.
03/08/13 Desire2Learn Incorporated Wiggio Inc. - - -
03/05/13 Issuu, Inc. Magma Aps - - -
03/05/13 ePrize, LLC Bulbstorm, Inc. - - -
03/05/13 Perceptive Softw are, Inc. Tw istage, Inc. - - -
03/04/13 BlueSky ETO e-Integrity, Inc. - - -
03/04/13 Silverlake Axis Ltd. (SGX:5CP) Merimen Ventures Sdn. Bhd. $16,860,000 - -03/04/13 Silverlake Axis Ltd. (SGX:5CP) Merimen Ventures Sdn. Bhd. $16,860,000
03/04/13 Addnode Group AB (publ) (OM:ANOD B) Abou AB - - -
03/01/13 KV Asia Capital CBS Bizhub Sdn. Bhd. and PT. $38,770,000 - -
03/01/13 ClearSlide, Inc. SlideRocket, Inc. - - -
03/01/13 Perceptive Softw are, Inc. AccessVia, Inc. - - -
02/27/13 Rackspace Hosting, Inc. (NYSE:RAX) ObjectRocket, Inc. - - -
02/27/13 Open GI Limited Pow erplace Insurance Services - - -02/27/13 Open GI Limited Pow erplace Insurance Services
02/26/13 Cymetrix Corporation CareClarity, Inc. - - -
02/25/13 Genesys Telecommunications Laboratories, Inc. Angel.com Incorporated $110,000,000 $28,800,000 3.8x
02/22/13 Paperless Receipts Limited ExpenseMagic Ltd. - - -

1Q13 SaaS M&A TRANSACTIONS (CON’T)
Date Buyer Seller
Enterprise
Value
TTM
Revenue EV/Rev
02/22/13 Access UK Limited Sazneo Limited - - -
02/21/13 Master Lock Canada, Inc. N4 Systems Incorporated - - -
02/20/13 CPA Global Limited First To File, Inc. - - -
02/19/13 [x+1], Inc. UberTags LLC - - -02/19/13 [x 1], Inc. UberTags LLC
02/17/13 ironSource Ltd AfterDow nload Ltd. $28,000,000 - -
02/15/13 New Net Communication Technologies, LLC Interact Incorporated - - -
02/14/13 DiliTrust SAS SQLi, Dataroom.com - - -
02/14/13 LX Ventures Inc. (TSXV:LXV) Weeve Ventures Inc. - - -
02/14/13 Capsilon Corporation Paperless Office Solutions Inc. - - -
02/11/13 International Insurance Company of Hannover Limited London & European Title Insurance - - -02/11/13 International Insurance Company of Hannover Limited London & European Title Insurance
02/07/13 PeopleBrow sr Inc. Sw aylo Inc. - - -
02/07/13 Avanade, Inc. Opstera, Inc. - - -
02/06/13 View point Construction Softw are, Inc. 4Projects Ltd. - - -
02/06/13 liveBooks, Inc. Fotomoto, Inc. - - -
02/06/13 Haiku Learning Systems, Inc. ActiveGrade, LLC - - -
02/05/13 Tatango, Inc. Regal Digital LLC - - -02/05/13 Tatango, Inc. Regal Digital LLC
02/05/13 Tw itter, Inc. Bluefin Labs, Inc. - - -
02/05/13 SellPoint, Inc. Show Uhow , Inc. - - -
02/05/13 SPINS, Inc. Third Solutions, LLC - - -
02/05/13 Ease Entertainment Services, LLC Scenechronize - - -
02/01/13 JMI Equity; HGGC, LLC Innovative Interfaces, Inc. - - -
01/31/13 Aggregate Know ledge, Inc. Quantivo Corporation - - -gg g g , Q p
01/31/13 Autodesk, Inc. (NasdaqGS:ADSK) Allpoint Systems, Inc. - - -
01/29/13 Genesys Telecommunications Laboratories, Inc. UTOPY, Inc. - - -
01/29/13 Reputation.com, Inc. Reputation.com (UK) Limited - - -
01/25/13 Peterson Partners LP Angoss Softw are Corp. (TSXV:ANC) $8,470,000 $7,400,000 1.2x
01/24/13 Automattic, Inc. Simperium, Inc. - - -
01/24/13 LittleLives Inc Pte. Ltd. Illume Technology - - -gy
01/24/13 Cubic Transportation Systems, Inc. NextBus Inc. $20,690,000 - -
01/22/13 Vision Critical Communications, Inc. Texifter, LLC - - -
01/22/13 Infusionsoft, Inc. GroSocial, Inc. - - -
01/22/13 Unified Media, Inc. PageLever, Inc. - - -
01/22/13 Claritas Capital StudioNow , Inc. - - -
01/17/13 First Advantage Corporation LexisNexis Risk Solutions, Inc., - - -
g p , ,

1Q13 SaaS M&A TRANSACTIONS (CON’T)
Date Buyer Seller
Enterprise
Value
TTM
Revenue EV/Rev
01/10/13 Nuance Communications, Inc. (NasdaqGS:NUAN) VirtuOz SA - - -
01/10/13 Fresh Juice Global, LLC VIDERO Inc. - - -
01/10/13 NetSuite Inc. (NYSE:N) Retail Anyw here Inc. - - -
01/09/13 Elephant Talk Communications Corp. (AMEX:ETAK) Telnicity, LLC $990,000 - -01/09/13 Elephant Talk Communications Corp. (AMEX:ETAK) Telnicity, LLC $990,000
01/08/13 Total Merchant Services, Inc. Fanminder, Inc. - - -
01/08/13 Nearstream, Inc. LoopFuse, Inc. - - -
01/08/13 reInvention, LLC Authentic Response, Inc. - - -
01/08/13 InComm, Inc. Giftango Corporation - - -
01/08/13 Haufe-Lexw are GmbH & Co. KG Semigator AG - - -
01/07/13 Athenahealth, Inc. (NasdaqGS:ATHN) Epocrates, Inc. $294,490,000 $151,000,000 2.0x01/07/13 Athenahealth, Inc. (NasdaqGS:ATHN) Epocrates, Inc. $294,490,000 $151,000,000 2.0x
01/07/13 GT Nexus, Inc. TradeCard, Inc. - - -
01/04/13 Euronet Worldw ide Inc. (NasdaqGS:EEFT) Pure Commerce Pty Ltd. - - -
01/04/13 Farmtrader, LLC XSAg.com - - -
01/03/13 PeopleStrategy, Inc. ERC Dataplus, Inc. - - -
01/03/13 PennWell Corporation CyberTech, Inc., TransmissionHub, - - -
01/03/13 Metrostudy Inc. Metrostudy Inc. - - -01/03/13 Metrostudy Inc. Metrostudy Inc.
01/02/13 Elsevier B.V. Knovel Corporation - - -
01/02/13 Click & Pledge, Inc. Donor Tow n Square, Inc. - - -

INTERNET M&A: DEAL VOLUME AND EXIT MULTIPLES
273
263 2.1x 2.1x
Median Internet EV/Revenue Exit MultiplesInternet M&A Volume
220 222
185
1.9x 1.9x 1.9x
185
1Q12 2Q12 3Q12 4Q12 1Q13
1Q12 2Q12 3Q12 4Q12 1Q13
• Internet M&A remained highly volatile in large part due to shifting marketing strategies evolving business models and constant• Internet M&A remained highly volatile, in large part due to shifting marketing strategies, evolving business models, and constant
changes in the competitive landscape.
• In early 2012, a large number of Internet targets exited amidst the hype of the pending Facebook IPO (5/2012), creating a spike
in M&A volume.
• After the Facebook IPO debacle, internet investors and buyers alike became more cautious and circumspect, and M&A volumeAfter the Facebook IPO debacle, internet investors and buyers alike became more cautious and circumspect, and M&A volume
declined markedly, plunging to 185 transactions in 1Q13, down from 273 transactions in 2Q12 .
• Internet EV/Revenue exit multiples have held relatively steady, finishing 1Q13 at 1.9x. However, high flying Internet companies
continue to achieve breathtaking exit multiples. Select examples include: Yahoo’s acquisition of Summly (~30x rev.), Evanea’s
acquisition of Internet communications provider Apogea ($5.0M, 12.3x rev.).

INTERNET M&A: DEAL VOLUME AND EXIT MULTIPLES
31 4%
10.8%
Ad‐Tech & Lead Gen Category 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013
Median Internet EV/Revenue Exit MultiplesInternet M&A Volume
31.4%
3.8%
13.0%
Commerce
Content & Media
Gaming
Ad-Tech & Lead Gen 65 70 85 57 58
Commerce 36 57 40 41 34
Content & Media 51 62 52 55 42
Gaming 13 25 13 12 7
Infrastructure 31 30 41 27 24
Social Tech 24 29 32 30 20
18 4%
Infrastructure
Social Tech
Social Tech 24 29 32 30 20
Total 220 273 263 222 185
18.4%
22.7%
• Driven by a dearth of ad-tech players in the Internet landscape a much needed consolidation continued to shape the Internet• Driven by a dearth of ad-tech players in the Internet landscape, a much needed consolidation continued to shape the Internet
ad-tech landscape in 1Q13, making it the most active Internet M&A product category over the past twelve months.
• After years of consolidation, Internet ad-tech leaders have now emerged, and the sharply lower number of ad tech M&A deals
over the past two quarters suggests that buyers and advertisers have placed their bets. Mobile ad-tech is the next frontier.
• Select transactions in the Ad-tech product category include: Facebook’s acquisition of Atlas DMT, Experian’s acquisition ofSelect transactions in the Ad tech product category include: Facebook s acquisition of Atlas DMT, Experian s acquisition of
Pacific Micromarketing, Half Off Depot’s acquisition of Crowdsavings.com.
• Content & Media finished 1Q13 as the second most active product category. Select transactions in Content & Media included:
Autotrader’s acquisition of Automotive Information, Dentsu’s acquisition of EhonNavi.

APPENDIX

C Ti k P d t C t
THE SEG SOFTWARE INDEX COMPANIES
Amdocs Limited DOX Billing & Service Management
AsiaInfo Holdings, Inc. ASIA Billing & Service Management
CSG Systems International, Inc. CSGS Billing & Service Management
Evolving Systems, Inc. EVOL Billing & Service Management
Company Ticker Product Category
MIND C.T.I. Ltd. MNDO Billing & Service Management
NeuStar, Inc NSR Billing & Service Management
Redknee Solutions TSX:RKN Billing & Service Management
Synchronoss Technologies, Inc. SNCR Billing & Service Management
Actuate Corporation BIRT Business Intelligence
MicroStrategy Incorporated MSTR Business Intelligence
P I PEGA B i I lliPegasystems Inc. PEGA Business Intelligence
Progress Software Corporation PRGS Business Intelligence
PROS Holdings PRO Business Intelligence
Qlik Technologies QLIK Business Intelligence
Verisk VRSK Business Intelligence
Actuate Corporation BIRT Development Platforms
Ad b S t I t d ADBE D l t Pl tfAdobe Systems Incorporated ADBE Development Platforms
BSQUARE Corporation BSQR Development Platforms
Compuware Corporation CPWR Development Platforms
Magic Software Enterprises Ltd. MGIC Development Platforms
Microsoft Corporation MSFT Development Platforms
Oracle Corporation ORCL Development Platforms
Progress Soft are Corporation PRGS De elopment PlatformsProgress Software Corporation PRGS Development Platforms
Red Hat, Inc. RHT Development Platforms
Software AG XTRA:SOW Development Platforms
ANSYS, Inc. ANSS Engineering & PLM
Autodesk, Inc. ADSK Engineering & PLM
Cadence Design Systems, Inc CDNS Engineering & PLM
Cimatron Ltd CIMT Engineering & PLMCimatron Ltd. CIMT Engineering & PLM
Dassault Systèmes DSY Engineering & PLM
GSE Systems Inc. GVP Engineering & PLM
Mentor Graphics Corp MENT Engineering & PLM
Parametric Technology Corporation PMTC Engineering & PLM
PDF Solutions Inc PDFS Engineering & PLM
Stratasys Inc SSYS Engineering & PLM
Stratasys, Inc. SSYS Engineering & PLM
Synopsys Inc SNPS Engineering & PLM

C Ti k P d t C t
THE SEG SOFTWARE INDEX COMPANIES (CON’T)
American Software, Inc. AMSW.A Enterprise Resource Planning
Oracle Corporation ORCL Enterprise Resource Planning
QAD Inc. QADA Enterprise Resource Planning
Sage Group plc LSE:SGE Enterprise Resource Planning
SAP SAP Enterprise Resource Planning
Unit 4 ENXTAM:UNIT4 Enterprise Resource Planning
ACI Worldwide, Inc. ACIW Financial & Accounting
Bottomline Technologies EPAY Financial & Accounting
DST Systems, Inc. DST Financial & Accounting
Fair Isaac Corporation FICO Financial & Accounting
Fiserv FISV Financial & Accounting
Intuit Inc INTU Financial & Accounting
Model N, Inc MODN Financial & Accounting
NetSol Technologies Inc. KASE:NETSOL Financial & Accounting
Sage Group plc LSE:SGE Financial & Accounting
Activision Blizzard ATVI Gaming
GElectronic Arts Inc. EA Gaming
GameLoft SA ENXTPA:GFT Gaming
Konami Corporation TSE: 9766 Gaming
Take-Two Interactive TTWO Gaming
Ubisoft Entertainment ENXTPA:UBI Gaming
Accretive Health AH Healthcare
All i t H lth S l ti I MDRX H lthAllscripts Healthcare Solutions Inc. MDRX Healthcare
Cerner Corporation CERN Healthcare
Computer Programs and Sys, Inc. CPSI Healthcare
Epocrates EPOC Healthcare
Greenway Medical Technologies, Inc GWAY Healthcare
MedAssets MDAS Healthcare
M H lth MRGE H lthMerge Healthcare MRGE Healthcare
Omnicell, Inc. OMCL Healthcare
Quality Systems, Inc. QSII Healthcare
Hewlett Packard HPQ IT Conglomerates
IBM IBM IT Conglomerates
Microsoft Corporation MSFT IT Conglomerates
Oracle Corporation ORCL IT Conglomerates
Oracle Corporation ORCL IT Conglomerates
SAP AG SAP IT Conglomerates

C Ti k P d t C t
Epocrates EPOC Mobile Solutions/Content
Glu Mobile, Inc. GLUU Mobile Solutions/Content
Gree TSE:3632 Mobile Solutions/Content
Millennial Media Inc MM Mobile Solutions/Content
Myriad Group AG MYRN Mobile Solutions/Content
NQ Mobile Inc. NQ Mobile Solutions/Content
Opera OB:OPERA Mobile Solutions/Content
Qihoo 360 Technology Co. Ltd QIHU Mobile Solutions/Content
Pandora Media P Mobile Solutions/Content
Synchronoss Technologies, Inc. SNCR Mobile Solutions/Content
TeleNav TNAV Mobile Solutions/Content
Velti Plc VELT Mobile Solutions/Content
Zynga, Inc ZNGA Mobile Solutions/Content
Allot Communications Ltd. ALLT Networking & Network Performance Management
Aruba Networks, Inc. ARUN Networking & Network Performance Management
Brocade Communications Systems, Inc. BRCD Networking & Network Performance Management
C S CSCO & fCisco Systems, Inc. CSCO Networking & Network Performance Management
Compuware Corporation CPWR Networking & Network Performance Management
F5 Networks, Inc. FFIV Networking & Network Performance Management
Juniper Networks, Inc. JNPR Networking & Network Performance Management
Keynote Systems, Inc. KEYN Networking & Network Performance Management
Radware Ltd. RDWR Networking & Network Performance Management
Ri b d T h l I RVBD N t ki & N t k P f M tRiverbed Technology, Inc. RVBD Networking & Network Performance Management
AVG Technologies N.V. AVG Security
Check Point Software Tech Ltd. CHKP Security
Commtouch Software Ltd. CTCH Security
Fortinet Inc. FTNT Security
Guidance Software, Inc. GUID Security
I IMPV S itImperva IMPV Security
Palo Alto Networks, Inc PANW Security
Proofpoint, Inc. PFPT Security
Sourcefire, Inc. FIRE Security
Symantec Corporation SYMC Security
Trend Micro TSE:4704 Secuity
VASCO Data Security International VDSI Security
VASCO Data Security International VDSI Security
Websense, Inc. WBSN Security

C Ti k P d t C t
Brocade Communications Systems, Inc. BRCD Storage, Data Management & Integration
CA, Inc. CA Storage, Data Management & Integration
Cisco Systems, Inc. CSCO Storage, Data Management & Integration
CommVault Systems, Inc. CVLT Storage, Data Management & Integration
EMC EMC Storage, Data Management & Integration
FalconStor Software, Inc. FALC Storage, Data Management & Integration
IBM IBM Storage, Data Management & Integration
Informatica Corporation INFA Storage, Data Management & Integration
Microsoft Corporation MSFT Storage, Data Management & Integration
NetApp, Inc. NTAP Storage, Data Management & Integration
O l C i ORCL S D M & I iOracle Corporation ORCL Storage, Data Management & Integration
Pervasive Software Inc. PVSW Storage, Data Management & Integration
Splunk, Inc. SPLK Storage, Data Management & Integration
TIBCO Software Inc. TIBX Storage, Data Management & Integration
American Software, Inc. AMSW.A Supply Chain Management & Logistics
Aspen Technology, Inc. AZPN Supply Chain Management & Logistics
M h tt A i t I MANH S l Ch i M t & L i tiManhattan Associates, Inc. MANH Supply Chain Management & Logistics
The Descartes Systems Group Inc. TSX:DSG Supply Chain Management & Logistics
Unit 4 ENXTAM:UNIT4 Supply Chain Management & Logistics
BMC Software Inc. BMC Systems Management
CA Technologies CA Systems Management
Citrix Systems, Inc. CTXS Systems Management
Netsco t S stems Inc NTCT S stems ManagementNetscout Systems, Inc. NTCT Systems Management
Red Hat, Inc. RHT Systems Management
SolarWinds, Inc. SWI Systems Management
VMWare, Inc. VMW Systems Management
Advent Software, Inc. ADVS Vertical - Finance
Broadridge Financial BR Vertical - Finance
Fidessa LSE:FDSA Vertical FinanceFidessa LSE:FDSA Vertical - Finance
Jack Henry & Associates, Inc. JKHY Vertical - Finance
MSCI, Inc. MSCI Vertical - Finance
SS&C Corporation SSNC Vertical - Finance
Blackbaud, Inc. BLKB Vertical - Other
Constellation TSX:CSU Vertical - Other
EPIQ Systems Inc EPIQ Vertical Other
EPIQ Systems, Inc. EPIQ Vertical - Other
Guidewire Software, Inc. GWRE Vertical - Other

C Ti k P d t C t
Micros Systems MCRS Vertical - Other
PROS Holdings PRO Vertical - Other
Sapiens International SPNS Vertical - Other
Silver Spring Networks, Inc. SSNI Vertical - Other
p g ,
The Active Network, Inc. ACTV Vertical - Other
Tyler Technologies, Inc. TYL Vertical - Other

C Ti k P d t C t
THE SEG SaaS INDEX COMPANIES
Constant Contact CTCT CRM & Marketing
ExactTarget, Inc. ET CRM & Marketing
LivePerson LPSN CRM & Marketing
Marin Software MRIN CRM & Marketing
Responsys MKTG CRM & Marketing
Bazaarvoice, Inc BV CRM & Marketing
Salesforce.com CRM CRM & Marketing
Vocus VOCS CRM & Marketing
E2open, Inc EOPN ERP & Supply Chain
Fleetmatics FLTX ERP & Supply Chain
Netsuite N ERP & Supply Chain
SciQuest SQI ERP & Supply Chain
SPS Commerce SPSC ERP & Supply Chain
Workday, Inc. WDAY ERP & Supply Chain
Athenahealth, Inc ATHN Vertically Focused
DealerTrack TRAK Vertically Focusedea e ac e t ca y ocused
Ebix Inc. EBIX Vertically Focused
Ellie Mae ELLI Vertically Focused
Medidata Solutions MDSO Vertically Focused
RealPage RP Vertically Focused
Callidus Software Inc. CALD Workforce Management
Cornerstone OnDemand CSOD Workforce ManagementCornerstone OnDemand CSOD Workforce Management
The Ultimate Software Group, Inc. ULTI Workforce Management
Workday, Inc. WDAY Workforce Management
Concur CNQR Other SaaS
Demandware, Inc. DWRE Other SaaS
IntraLinks Holdings IL Other SaaS
Jive Software Inc JIVE Other SaaSJive Software, Inc JIVE Other SaaS
OpenTable, Inc. OPEN Other SaaS
Qualys, Inc. QLYS Other SaaS
Service-now.com NOW Other SaaS
Tangoe TNGO Other SaaS
Zix Corporation ZIXI Other SaaS

C Ti k P d t C t
THE SEG INTERNET INDEX COMPANIES
Angie's List, Inc. ANGI Ad Tech & Lead Generation
Baidu.com, Inc. BIDU Ad Tech & Lead Generation
Bankrate, Inc. RATE Ad Tech & Lead Generation
Digital Generation, Inc. DGIT Ad Tech & Lead Generation
eHealth, Inc. EHTH Ad Tech & Lead Generation
Google Inc. GOOG Ad Tech & Lead Generation
Groupon GRPN Ad Tech & Lead Generation
InterActiveCorp IACI Ad Tech & Lead Generation
LinkedIn LNKD Ad Tech & Lead Generation
Marchex Inc. MCHX Ad Tech & Lead Generation
Q i St t QNST Ad T h & L d G tiQuinStreet QNST Ad Tech & Lead Generation
ReachLocal, Inc. RLOC Ad Tech & Lead Generation
SINA Corporation SINA Ad Tech & Lead Generation
Sohu.com Inc. SOHU Ad Tech & Lead Generation
Tree.Com, Inc. TREE Ad Tech & Lead Generation
ValueClick, Inc. VCLK Ad Tech & Lead Generation
Y d YNDX Ad T h & L d G tiYandex YNDX Ad Tech & Lead Generation
1-800-FLOWERS.COM, Inc. FLWS Commerce
Amazon.com, Inc. AMZN Commerce
Bitauto Holdings Limited BITA Commerce
Bluefly, Inc. BFLY Commerce
BlueNile NILE Commerce
DangDang DANG CommerceDangDang DANG Commerce
Digital River Inc. DRIV Commerce
eBay Inc. EBAY Commerce
GeekNet GKNT Commerce
Liquidity Services, Inc. LQDT Commerce
Mecox Lane Limited MCOX Commerce
Mercadolibre Inc MELI CommerceMercadolibre, Inc. MELI Commerce
Overstock.com, Inc. OSTK Commerce
PetMed Express, Inc. PETS Commerce
Stamps.com STMP Commerce
AOL, Inc. AOL Content & Media
DemandMedia DMD Content & Media
InterActiveCorp IACI Content & Media
InterActiveCorp IACI Content & Media
Netflix NFLX Content & Media

C Ti k P d t C t
THE SEG INTERNET INDEX COMPANIES (CON’T)
Pandora P Content & Media
Shutterstock, Inc. SSTK Content & Media
TheStreet.com, Inc. TST Content & Media
WebMD Health Corp. WBMD Content & Media
XO Group XOXO Content & Media
Yahoo! Inc. YHOO Content & Media
Youku YOKU Content & Media
ChangYou.com CYOU Gaming
Giant Interactive GA Gaming
Netease NTES Gaming
NCS ft KOSE A036570 G iNCSoft KOSE:A036570 Gaming
Perfect World PWRD Gaming
Sohu.com Inc. SOHU Gaming
Tencent Holdings SEHK:700 Gaming
Zynga, Inc. ZNGA Gaming
8x8, Inc. EGHT Infrastructure
Ak i T h l i I AKAM I f t tAkamai Technologies, Inc. AKAM Infrastructure
Brightcove Inc. BCOV Infrastructure
BroadSoft, Inc. BSFT Infrastructure
Digital River Inc. DRIV Infrastructure
Envivio, Inc. ENVI Infrastructure
Harmonic Inc HLIT Infrastructure
Interactive Intelligence Inc ININ InfrastructureInteractive Intelligence, Inc. ININ Infrastructure
KIT digital, Inc. KITD Infrastructure
Limelight Networks, Inc. LLNW Infrastructure
Mitel Networks Corp. MITL Infrastructure
Polycom, Inc. PLCM Infrastructure
Rovi Corporation ROVI Infrastructure
SeaChange International Inc SEAC InfrastructureSeaChange International Inc. SEAC Infrastructure
ShoreTel, Inc. SHOR Infrastructure
Sonus Networks, Inc SONS Infrastructure
Synacor, Inc SYNC Infrastructure
Tucows Inc. TCX Infrastructure
VeriSign VRSN Infrastructure
Angie's List Inc ANGI Services
Angie s List, Inc. ANGI Services
Bankrate RATE Services

C Ti k P d t C t
THE SEG INTERNET INDEX COMPANIES (CON’T)
Carbonite, Inc. CARB Services
LifeLock, Inc. LOCK Services
Monster Worldwide, Inc. MWW Services
Qihoo QIHU ServicesQihoo QIHU Services
Shutterfly SFLY Services
Tree.Com, Inc. TREE Services
Trulia, Inc. TRLA Services
VistaPrint VPRT Services
Xoom XOOM Services
Zillow Z ServicesZillow Z Services
Facebook FB Social
FriendFinder Networks Inc FFN Social
LinkedIn LNKD Social
Mail.ru Group LSE:MAIL Social
Renren Inc RENN Social
Yelp, Inc. YELP Social
YY, Inc. YY Social
Ctrip CTRP Travel
Expedia EXPE Travel
HomeAway AWAY Travel
Kayak Software Corp KYAK TravelKayak Software Corp KYAK Travel
MakeMyTrip MMYT Travel
Orbitz OWW Travel
Priceline PCLN Travel
Travelzoo TZOO Travel
TripAdvisor Inc TRIP Travel

1Q13 software industry financial report

1Q13 software industry financial report

Recommended

Recommended

More Related Content

What's hot

What's hot (6)

Similar to 1Q13 software industry financial report

Similar to 1Q13 software industry financial report (20)

Recently uploaded

Recently uploaded (20)

1Q13 software industry financial report