Software industry financial_report_3_q15

Q32015
SEG Capital Advisors, L.L.C.
12220 El Camino Real
Suite 320
San Diego, CA 92130
info@softwareequity.com
(858) 509-2800
The Software Industry
Financial Report

SOFTWARE EQUITY GROUP | Q3 2015 SOFTWARE INDUSTRY FINANCIAL REPORT
Copyright © SEG Capital Advisors, LLC, All Rights Reserved 2
About Software Equity Group
Leaders in Software M&A 5
Extensive Global Reach 6
Leading Market Position
Software Industry Macroeconomics
U.S and Global GDP 8
U.S. GDP and Unemployment 9
Global IT Spending 10
Stock Market Performance 11
Public Software Financial and Valuation Performance
The SEG Software Index 13
The SEG Software Index: Financial Performance 14-16
The SEG Software Index: Public Market Multiples 17-18
The SEG Software Index by Product Category 19
The SEG Software Index by Product Category: Financial Performance 20
The SEG Software Index by Product Category: Public Market Multiples 21
Public SaaS Company Financial and Valuation Performance
The SEG SaaS Index 23
The SEG SaaS Index: Financial Performance 24-26
The SEG SaaS Index: Public Market Multiples 27-29
The SEG SaaS Index by Product Category: Financial Performance 30
The SEG SaaS Index by Product Category: Public Market Multiples 31
Public Internet Company Financial and Valuation Performance
The SEG Internet Index 33
The SEG Internet Index: Financial Performance 34-36
The SEG Internet Index: Public Market Multiples 37-38
The SEG Internet Index by Product Category 39
The SEG Internet Index by Product Category: Financial Performance 40
The SEG Internet Index by Product Category: Public Market Multiples 41
SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS

SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS
Software Industry M&A Market Update
Software/SaaS M&A Deal Volume and Spending 43
Software M&A Exit Multiples 44
Software M&A by Ownership Structure and Size 45
Software M&A by Vertical and Horizontal Markets 46
Software M&A Deal Volume by Product Category 47
Software M&A Exit Multiples by Product Category 48
SaaS M&A Deal Volume and Exit Multiples 49
SaaS M&A by Product Category 50
SaaS M&A 3Q15 Transactions 51-54
Internet M&A: Deal Volume and Exit Multiples 55
Internet M&A: By Product Category 56
Appendix
SEG Software Index Key Metrics 58-61
SEG Software Index Key Metrics by Product Category 62-63
SEG SaaS Index Key Metrics 64-65
SEG SaaS Index Key Metrics by Product Category 66
SEG Internet Index Key Metrics 67-69
SEG Internet Index Key Metrics by Product Category 70
3Q15 Select Public Sellers 71
3Q15 Mega Deals 72
3Q15 Most Active Buyers 73
About Software Equity Group 74

Copyright © SEG Capital Advisors, LLC, All Rights Reserved
ABOUT SOFTWARE EQUITY GROUP

• Industry leading boutique investment bank, founded in 1992,
representing public and private software and internet
companies seeking:
• Strategic exit
• Growth capital
• Buyout
• Inorganic growth via acquisition
• Buy and sell-side mentoring
• Fairness 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 than
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
We Do Deals.
LEADERS IN SOFTWARE M&A

SEG Research Distribution
Current Sell-side Representation
Recent Sell-side Representation
• SEG currently represents software companies in the
United States, Canada, France, 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’s Quarterly and Annual Software Industry
Equity Reports and Monthly Flash Reports are
distributed to an opt-in list of 70,000 public
software company CEOs, software entrepreneurs,
private equity managing directors, VCs, high tech
corporate lawyers, public accountants, etc. in 76
countries.
EXTENSIVE GLOBAL REACH

SOFTWARE INDUSTRY MACROECONOMICS

U.S. AND GLOBAL GDP
U.S. GDP (% YoY Change)Global GDP (% YoY Change)
Sources: Worldbank, The Economist, Council of Economic Advisors, BEA and Statista
• In January, the IMF forecasted a gradually improving global economy that would remain vulnerable to a host of economic and geopolitical risks. It
predicted global GDP would grow 3.5% in 2015.
• The IMF’s October Update trimmed its July estimate to an annualized GDP growth rate of 3.1% in 2015, essentially the same lackluster rate that has
prevailed for the past three years. In doing so, the IMF reaffirmed the main risks highlighted in April remain relevant. Risks noted in April included
continued pay down of public, corporate and household debt, which could slow spending; weakened oil prices that has adversely impacted producer
nations, but increased disposable income in oil importing countries (ie. U.S., China, Euro area and India); and significant currency exchange rate
fluctuations which could impact manufacturing imports and exports, especially in the U.S, the Euro Zone, and Japan.
• The IMF acknowledged its forecasts could also be imperiled by recent geopolitical events and renewed threats of defaults and recessions among EEC
member countries.
5.56% 5.67%
3.04%
0.10%
5.43%
4.14%
3.37% 3.28% 3.31%
3.10%
0%
1%
2%
3%
4%
5%
6%
7%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Global gross domestic product (GDP) growth (YOY) from
2006 to 2015
2.70%
1.80%
-0.30%
-2.80%
2.50%
1.60%
2.30% 2.20% 2.40% 2.60%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Annual growth of the Real Gross Domestic Product (GDP) of
the United States from 2006 to 2015

U.S. GDP AND UNEMPLOYMENT
• Early forecasts were for U.S. GDP to grow an average of 3.0% in 2015. Although most economists had revised their projection downward to 1% by the
close of Q1, the Bureau of Economic Analysis announced in July that GDP grew 1.5% in the third quarter.
• The Wall Street Journal’s survey of more than 60 leading economists now projects 2.7% growth in Q4, and 2.5% growth in the first quarter of 2016.
• The Labor Department reported the unemployment rate at the end of 3Q15 was 5.1%, a noteworthy decline from 3Q14’s 5.9%, and the lowest
unemployment rate since 2008. The Wall Street Journal’s survey of economists projects the unemployment rate will continue to decline, reaching 5.0% by
year end, and dropping to 4.7% by year end 2016.
• The labor participation rate closed 3Q15 at 62.4% and has been flat for the past 12 months, a 35 year low that can be attributed to an aging baby boomer
population that is beginning to retire. This leads to a natural demographic decline in the participation rate.
-5.4%
-0.5%
1.3%
3.9%
1.7%
3.9%
2.7% 2.5%
-1.5%
2.9%
0.8%
4.6%
2.3%
1.6%
2.5%
0.1%
2.7%
1.8%
4.5%
3.5%
-2.1%
4.6%
5.0%
2.2%
0.6%
3.9%
1.5%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
GDP % Growth Unemployment Rate

GLOBAL IT SPEND
Sources: Gartner , Forrester
• Assuming reasonably stable currency exchange rates, Gartner projected at the outset of 2015 that worldwide IT spending would grow at a constant
currency rate of 3.7% in 2015. That was before the significant rise in value of the U.S. dollar against most other currencies, a phenomenon that has had a
materially adverse effect on worldwide IT spending.
• By late Q2, Gartner projected global IT spending would shrink -5.5% in 2015, and in Q3 revised that estimate to -4.9%, blaming the rising U.S. dollar. In
constant currency terms, however, Gartner estimates global IT spending in 2015 will decline only 0.6% to 2.5% growth.
• Forrester estimates software will account for 27% of all tech spending, leading all other categories. According to Forrester, “Software’s leading position is
not a surprise, because it is the focal point for tech innovation today, whether that innovation takes the form of cloud computing and adoption of SaaS,
PaaS, smart computing and big data, real-time predictive analytics and smart process apps, or mobile computing and mobile apps and enterprise app
stores.”
Global IT Spending by CategoryGlobal IT Spending (% YoY Change)
6.0%
-10.0%
8.0%
6.0%
2.0% 2.0% 2.1% 2.5%
2008 2009 2010 2011 2012 2013 2014 2015 (F)

STOCK MARKET PERFORMANCE
• The DOW, S&P and NASDAQ, as well as our SEG Software, Internet, and SaaS indices, all posted flat to modest YTD returns through the first half of 2015.
However, each of the indices turned negative by the end of Q3, in large part due to a significant retreat in the month of September.
• The S&P and DOW closed Q3 -8.5% and -6.7%,YTD, respectively.
• The SEG Software and SaaS Indices, which had both posted positive YTD returns into late August, turned sharply negative during the month of September,
closing the quarter down 2.9% and 10.2%, respectively. Investors took some comfort in the SEG Software Index, which is generally comprised of larger
and profitable companies, while shifting their investment focus away from higher growth and less profitable SaaS companies.
• The SEG Internet Index lagged our other two tracking indices for most of 2015, posting a -18.5% YTD return at the close of 3Q15.
(25.0%)
(20.0%)
(15.0%)
(10.0%)
(5.0%)
0.0%
5.0%
10.0%
15.0%
20.0%
Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015
DOW S&P NASDAQ SEG SW Index SEG SaaS SEG Internet Index

THE SEG SOFTWARE INDUSTRY FINANCIAL REPORT
PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

THE SEG SOFTWARE INDEX
• The SEG Software Index tracks public software companies that
primarily offer on-premise software under a perpetual license with
annual M&S.
• The SEG Software Index is currently comprised of 130 public
software companies*.
• The number of public companies comprising the SEG Software Index
has declined steadily over the past ten years, as many on premise
providers have been acquired, taken private or migrated to a SaaS
business model.
* A number of on-premise software companies are transitioning to subscription based delivery and pricing models; however their SaaS revenue contribution is insufficient for
them to be deemed primarily SaaS.
** See appendix for a complete list of companies in The SEG Software Index and detailed financial and trading metrics
SEG - Software: Median Metrics
Measure 3Q14 4Q14 1Q15 2Q15 3Q15
EV/Revenue 3.1x 2.8x 2.8x 2.9x 3.1x
EV/EBITDA 13.9x 13.6x 14.3x 15.0x 15.0x
EV/Earnings 25.1x 24.8x 25.6x 26.7x 27.6x
Gross Profit Margin 68.9% 66.0% 66.0% 66.3% 66.2%
EBITDA Margin 18.0% 18.3% 18.6% 18.9% 18.7%
Net Income Margin 9.5% 8.5% 8.7% 8.1% 8.6%
TTM Revenue Growth 6.9% 8.2% 8.4% 8.4% 7.6%
TTM Total Revenue ($M) $607.3 $705.3 $729.6 $741.9 $751.2
TTM EBITDA Growth 4.2% 3.9% 4.6% 4.9% 7.1%
TTM Total EBITDA ($M) $104.9 $110.6 $110.6 $116.9 $124.3
Cash & Eq ($M) $183.7 $231.8 $230.7 $232.6 $257.9
Current Ratio 2.1 2.0 1.9 1.9 1.9
Debt / Equity Ratio 1.6% 3.7% 10.0% 5.0% 2.2%

THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE
• After hovering above 8.0% the prior three quarters, the median TTM
revenue growth rate of public on-premise software companies dipped
to 7.6% in 3Q15.
• Nearly one in four of the public on-premise software companies
comprising the SEG Software Index reported negative revenue growth
in Q3; more than half grew revenue by a meager 10% or less.
• Predictably, the few public on-premise software companies growing
revenue 30%+ were focused on three of IT’s hottest product
categories: security (Cyberark Software, 76.4%), business intelligence
(Splunk, 46.8%) and mobility (Opera, 60.6%).
• The consolidation of on-premise software companies over the past 15
years has resulted in an ecosystem of behemoths whose growth has
stalled due to much more focused, prioritized and constrained
enterprise IT spending; a current preference for point (vs. suite)
solutions; and a shift toward cloud-based computing and
subscription pricing, which has negatively impacted revenue
recognition.
TTM Revenue Growth Rate Distribution – 3Q15Median Revenue Performance – Quarterly
14
7.0%
7.2%
7.4%
7.6%
7.8%
8.0%
8.2%
8.4%
8.6%
$0
$100
$200
$300
$400
$500
$600
$700
$800
3Q14 4Q14 1Q15 2Q15 3Q15
TTMRevenueGrowth
TTMTotalRevenue
TTM Total Revenue ($M) TTM Revenue Growth
24%
35%
21%
9%
4%
7%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM Revenue Growth

• Slowed growth has prompted most on-premise companies to maintain a
keen eye on expenses. The median EBITDA margin of public on-premise
software companies has remained steady (above 18%) the past five
quarters.
• Fewer than half of public on-premise software companies achieved
EBITDA margins of 20% or better in the third quarter.
• Check Point Software, a security software provider, was a standout
exception, leading the pack once again in 3Q15 with an EBITDA margin of
52.9%. Check Point’s extraordinary profitability can be attributed in part
to a strong, well-performing channel that reduces its cost of sales.
Curiously, Check Point also spends substantially less on R&D (8.8% of
revenue) compared to their category peers (14.5% of total revenue).
• We anticipate the median EBITDA margin of public software companies
will hold steady in 4Q15, in large part due by keeping R&D spending
relatively flat while modestly increasing S&M spending.
TTM EBITDA Margin Distribution – 3Q15Median EBITDA Margin Performance – Quarterly
15
16%
13%
23%
29%
13%
5%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM EBITDA Margin
18.0% 18.3% 18.6% 18.9% 18.7%
3Q14 4Q14 1Q15 2Q15 3Q15
EBITDAMargin

Median Margin PerformanceMedian Operating Ratios
16
• OpEx: Median spending on operations by public on-premise software companies in 3Q15 was consistent with historic norms: 14.5% for Research &
Development, 19.7% for Sales & Marketing, and 8.7% for General & Administrative.
• Over the past year, median S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat.
• Median S&M spending as a percent of total revenue by on-premise public software companies lagged far behind their SaaS counterparts, which
continued to place significant bets on new customer acquisition (19.7% for on-premise vs. 37% for SaaS).
0%
5%
10%
15%
20%
25%
3Q14 4Q14 1Q15 2Q15 3Q15
%ofRevenue
S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue)
68.9%
66.0% 66.0% 66.3% 66.2%
18.0% 18.3% 18.6% 18.9% 18.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
3Q14 4Q14 1Q15 2Q15 3Q15
%Margin
Gross Profit Margin EBITDA Margin Net Income Margin

• The EV/Revenue multiples of smaller public on-premise software
companies – those with revenues <$100 million – lagged well behind
their larger counterparts.
• After converging in 1Q15, the EV/Rev median public market
multiples of mid size, large and very large on-premise software
companies diverged in Q2 and Q3, another indication that investors
are comforted by size and incumbency and willing to ignore slowed
growth amidst economic uncertainty.
THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES
• The median EV/Revenue market multiple for public on-premise
software providers was 3.1x in 3Q15.
• The ~3.0x median EV/Revenue multiple that’s prevailed over the past
five quarters, despite lackluster growth, reflects the importance of
stability and profitability to investors in the current market.
• The higher EV/Rev multiple premium enjoyed by companies with
revenue over $500 million expanded in the third quarter.
• We believe investor enthusiasm for the largest on-premise providers
will hold steady in Q4, absent a significant decline in operating
profitability or a surge in SaaS company growth rates. Higher
valuations, however, will depend on the ability of these household
names to redefine their missions, redirect their resources, and better
capitalize on their significant number of blue-chip customers.
EV/Revenue Multiples by Size (TTM Revenue) – QuarterlyMedian EV/Revenue and EV/EBITDA Multiples – Quarterly
17
3.1x 2.8x 2.8x 2.9x 3.1x
13.9x 13.6x
14.3x
15.0x 15.0x
3Q14 4Q14 1Q15 2Q15 3Q15
MedianMultipe
EV/Revenue EV/EBITDA
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
3Q14 4Q14 1Q15 2Q15 3Q15
MedianEV/Revenue
Revenue Greater Than $1 billion Revenue Between $500 million & $1 billion
Revenue Between $100 million & $500 million Revenue Less Than $100 million

THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES
• While market performance of on-premise public software companies
remains closely correlated with their ability to sustainably drive
profits, a select group of companies able to generate significant
revenue growth in Q3 were rewarded by the street with a median
9.4x EV/Revenue multiple.
• Members of Q3’s 30%+ growth club that rewarded investors
handsomely during the quarter came from a number of product
categories, including Business Intelligence and Security: Splunk
(46.8% TTM revenue growth, 14.3x EV/Revenue), Palo Alto Networks
(55.1% TTM revenue growth, 15.7x EV/Revenue) (36.8% TTM
revenue growth, 9.9x EV/Revenue).
• As in quarters past, the median market multiples of on-premise
software companies generally reflected their median operating
margins.
• On premise providers with a median EBITDA margin >40% were
deemed by investors to be almost five times more valuable than those
generating EBITDA margins less than 10%.
• On-premise providers with EBITDA margins greater than 40%
included: Check Point Software (53% EBITDA margin, 8.3x
EV/Revenue multiple); Aspen Technology (42%, 7.2x); MSCI (42%,
7.0x); and Evertec (42%, 5.7x).
EV/Revenue Multiples vs. TTM EBITDA Margins – 3Q15EV/Revenue Multiples vs. TTM Revenue Growth – 3Q15
18
1.0x
1.6x
2.0x
3.5x
3.9x
7.2x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
MedianEV/Revenue
TTM EBITDA Margin
2.2x 2.5x
4.1x
3.1x
9.4x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
MedianEV/Revenue
TTM Revenue Growth

THE SOFTWARE INDEX BY PRODUCT CATEGORY
• The SEG Software Index is segmented into 16 product categories.
• Among these product categories, market multiples, TTM growth rates and EBITDA margins fluctuate considerably from quarter to quarter. For
example, Systems Management providers saw a increase in median EV/Revenue market multiples from 4.0x in 2Q15 to 5.3x in Q3, despite lower
growth.
• See Appendix for the complete list of companies within each product category.
SEG Software Index
Category
EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin
3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15
Billing & Service Management 2.0x 1.8x 1.7x 1.9x 1.9x 10.0x 9.3x 9.1x 9.3x 9.2x 8.2% 18.3% 18.3% 7.6% 3.1% 21.1% 26.6% 26.6% 27.1% 27.2%
Business Intelligence 3.1x 2.9x 3.4x 3.5x 3.7x 13.1x 13.4x 14.4x 15.3x 17.8x 14.2% 9.5% 9.5% 10.3% 11.4% 14.4% 12.8% 12.8% 12.4% 18.5%
Development Platforms 2.5x 2.0x 2.0x 2.4x 2.4x 10.6x 7.9x 7.8x 9.1x 8.8x 1.2% 4.1% 4.5% 7.2% 10.6% 19.2% 18.5% 18.5% 18.9% 19.0%
Engineering & PLM 4.2x 4.6x 3.4x 3.7x 3.4x 14.6x 16.3x 15.7x 15.9x 17.1x 7.4% 7.4% 8.3% 8.7% 8.4% 20.0% 20.0% 20.9% 21.4% 22.9%
Enterprise Resource Planning 3.6x 3.4x 3.3x 4.1x 4.1x 12.6x 11.9x 11.7x 12.8x 15.1x 3.0% 3.4% 2.5% 2.3% 4.6% 28.9% 28.4% 28.4% 28.4% 28.4%
Financial & Accounting 3.1x 2.9x 3.0x 3.1x 3.3x 12.7x 12.9x 14.7x 14.9x 15.4x 2.5% 5.2% 5.2% 4.3% 3.8% 26.0% 23.3% 23.3% 22.3% 22.3%
Gaming 1.9x 1.6x 1.6x 1.5x 1.5x 12.4x 12.0x 11.0x 11.3x 14.3x 0.2% -2.2% -2.2% 2.6% 5.9% 15.5% 15.9% 15.9% 13.0% 13.7%
Healthcare 2.4x 2.3x 2.4x 2.3x 2.5x 13.8x 13.0x 15.6x 15.3x 11.8x 1.8% 5.9% 5.9% 8.3% 9.8% 15.5% 15.1% 15.1% 15.0% 14.2%
IT Conglomerates 3.1x 3.3x 3.5x 3.1x 3.3x 8.6x 9.3x 9.6x 8.8x 9.2x 2.2% 3.4% 2.5% -0.1% -1.1% 33.4% 34.2% 34.2% 32.9% 32.2%
Mobile Solutions/Content 2.7x 2.3x 2.1x 2.1x 1.8x 11.6x 20.8x 24.1x 14.5x 18.0x 6.6% 22.9% 22.9% 19.1% 8.3% 2.9% 7.2% 7.2% 7.2% 5.7%
Networking & Network
Performance Management
2.9x 2.2x 1.9x 2.3x 2.2x 14.8x 14.5x 15.5x 16.4x 13.1x 8.5% 15.0% 17.5% 14.7% 4.2% 13.5% 17.7% 17.7% 18.4% 17.5%
Security 3.1x 3.1x 4.5x 3.4x 3.8x 10.7x 12.8x 16.3x 15.5x 11.7x 15.2% 17.6% 18.7% 12.6% 8.9% 12.1% 6.7% 6.7% 7.1% 6.0%
Storage, Data Management &
Integration
2.2x 2.4x 2.4x 2.3x 2.1x 8.0x 8.6x 9.0x 9.4x 8.9x -1.6% -0.4% 1.1% 3.1% 1.5% 17.1% 16.4% 16.0% 14.3% 12.1%
Systems Management 4.2x 4.8x 4.3x 4.0x 5.3x 17.2x 19.8x 18.3x 17.3x 18.7x 15.8% 16.2% 16.3% 14.7% 8.5% 25.6% 25.4% 25.4% 26.3% 26.5%
Vertical - Finance 4.1x 4.0x 4.1x 4.2x 4.4x 13.3x 13.4x 13.7x 15.9x 13.6x 5.2% 7.7% 7.7% 8.6% 7.1% 33.5% 33.7% 33.7% 34.4% 34.8%
Vertical - Other 3.1x 3.2x 3.6x 3.8x 4.9x 21.6x 22.3x 25.5x 27.2x 32.9x 16.6% 16.3% 16.3% 13.3% 14.1% 13.1% 11.9% 11.9% 12.9% 13.8%
Median 3.1x 2.8x 2.8x 2.9x 3.1x 13.9x 13.6x 14.3x 15.0x 15.0x 6.9% 8.2% 8.4% 8.4% 7.7% 18.0% 18.3% 18.6% 18.9% 18.7%

THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY:
FINANCIAL PERFORMANCE
3Q15 YoY Change in Median Revenue Growth3Q15 Median TTM Revenue Growth
3Q15 YoY Change in Median EBITDA Margin3Q15 Median TTM EBITDA Margin
* YoY Change in Median EBITDA Margin or YoY Change in Revenue Growth not applicable.
3.1%
11.4%
10.6%
8.4%
4.6%
3.8%
5.9%
9.8%
-1.1%
8.3%
4.2%
8.9%
1.5%
8.5%
7.1%
14.1%
Billing & Service Management
Business Intelligence
Development Platforms
Engineering & PLM
Enterprise Resource Planning
Financial & Accounting
Gaming
Healthcare
IT Conglomerates
Mobile Solutions/Content
Networking & Network Performance…
Security
Storage, Data Management & Integration
Systems Management
Vertical - Finance
Vertical - Other
27.2%
18.5%
19.0%
22.9%
28.4%
22.3%
13.7%
14.2%
32.2%
5.7%
17.5%
6.0%
12.1%
26.5%
34.8%
13.8%
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other
(62.2%)
(19.8%)
14.2%
53.6%
48.3%
25.9%
(50.7%)
(41.3%)
(45.8%)
35.2%
(15.2%)
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other
28.6%
28.3%
(1.2%)
14.4%
(1.9%)
(14.3%)
(11.3%)
(8.2%)
(3.6%) 96.4%
29.5%
(50.6%)
(29.6%)
3.5%
3.8%
5.3%
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other

• In 3Q15, nine product categories achieved median EV/Revenue multiples above the SEG Software Index median of 3.1x, led by Systems Management
(5.3x), Vertical Other (4.9x), and Vertical Finance (4.4x).
• The Business Intelligence and Security categories are benefitting from the continuing shift to cloud and mobile computing, which require new approaches
to scaling, managing and securing these new environments.
• The Gaming category closed 3Q15 with a median EV/Revenue multiple of 1.5x, the lowest of our 16 product categories. We’ve predicted in past Reports
that gaming multiples would improve as gaming providers - caught flat footed by the explosion of mobile and Internet gaming - repositioned with online
and mobile games suitable for a multi-device world. It hasn’t happened – yet.
• Only three product categories posted median TTM growth rates of 10% or higher in 3Q15 – Business Intelligence, Development Platforms and Vertical-
Other. In comparison, each public SaaS category posted median TTM revenue growth in excess of 23%. The IT conglomerates category was the only
category to post negative TTM revenue growth (-1.1%) in Q3, as these massive software companies are forced to defer significant amounts of revenue in
an attempt to convert to subscription based pricing.
THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY:
PUBLIC MARKET MULTIPLES
Median 3Q15 YoY Change in EV/Revenue3Q15 Median EV/Revenue Multiples
1.9x
3.7x
2.4x
3.4x
4.1x
3.3x
1.5x
2.5x
3.3x
1.8x
2.2x
3.8x
2.1x
5.3x
4.4x
4.9x
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other
(4.3%)
20.5%
(5.7%)
(18.6%)
11.9%
7.9%
(21.8%)
5.8%
4.9%
(35.1%)
(25.3%)
23.0%
(4.1%)
26.1%
7.4%
58.0%
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other

THE SEG SaaS INDEX
PUBLIC SaaS COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

THE SEG SaaS INDEX
• The SEG SaaS Index tracks public companies that primarily offer
hosted, on-demand software under a subscription and/or transaction
based pricing model.
• The SEG SaaS Index is currently comprised of 64 publicly traded,
pure-play SaaS companies.*
* See appendix for complete list of companies in the SEG SaaS Index
23
SEG - SaaS: Median Metrics
Measure 3Q14 4Q14 1Q15 2Q15 3Q15
EV/EBITDA 55.0x 38.1x 38.3x 46.1x 38.5x
EBITDA Margin -8.1% -13.2% -13.1% -11.3% -10.6%
Net Income Margin -16.6% -21.6% -21.6% -17.5% -17.5%
TTM Total EBITDA ($M) -$6.1 -$9.4 -$10.2 -$9.4 -$9.8
Cash & Eq ($M) $83.8 $95.3 $103.0 $106.0 $116.9
Current Ratio 2.1 1.9 2.0 2.0 1.9

THE SEG SaaS INDEX: FINANCIAL PERFORMANCE
• The median TTM revenue growth rate of Public SaaS companies in 3Q15 was 25.6%, down from 28.5% in 2Q15, but up from 21.7%year over year.
• Median growth rates alone do not capture the standout performances of the most successful SaaS companies. Nearly one in five public SaaS companies
grew TTM revenue by 50% or more. As further testament to the widespread and ramping adoption of SaaS, these outperformers come from a variety of
product categories including Human Capital Management, Life Sciences, Marketing, Security, and Business Intelligence. Especially noteworthy were:
Castlight Health (121.2%); Medical Transcription Billing (126.9%); HortonWorks (109.6%); FireEye (97.4%); New Relic (73.2%); Tableau Software
(71.4%); Zendesk (69.1%); and Workday (58.2%).
• The median TTM revenue of public SaaS companies was $164M in 3Q15, a significant YoY increase from 3Q14’s $123.2M. In part, the revenue growth is
attributable to wider, and deeper, enterprise adoption of hosted solutions; and in part the revenue growth is inorganic, as the group has become
increasingly acquisitive.
• Salesforce continued to lead the SaaS revenue pack by several lengths, reporting 3Q15 TTM revenue of $6.0B, over 6x greater than the next largest public
SaaS company. Still, many public SaaS companies reached critical revenue mass (>$350 million) in 3Q15, a feat made more difficult by a revenue model
that requires deferring a significant percentage of booked revenue. SaaS providers with revenues of $350M+ can now be found among a wide array of
product categories and industry sectors, including Workday (HCM/Financial, $975M); AthenaHealth (Healthcare, $880.4M); RealPage (Real Estate,
$434.2M); and Service-Now (IT Service Mgmt., $917.8M).
TTM Revenue Growth Rate Distribution– 3Q15Median Revenue Performance – Quarterly
24
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
3Q14 4Q14 1Q15 2Q15 3Q15
TTMRevenueGrowth
TTMTotalRevenue
2%
8%
17%
25%
17%
10%
20%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
<= 50%
> 50%
%ofCompanies
TTM Revenue Growth

• The median EBITDA margin of public SaaS companies remained
negative but has marginally improved that last two quarters, closing
3Q15 at -10.6%.
• Approximately three out of five (61%) public SaaS companies are
unprofitable, and nearly nine out of ten have EBITDA margins below
the 20% median of their on-premise software peers.
• For the time being, investors are untroubled by the operating losses, if
the strong correlation between their EV/Revenue market multiples
and TTM revenue growth rates (see slide 29) is any indication.
• Apparently, the public markets have come to understand the GAAP
compliant P&L statements of many public SaaS companies, which
seem to indicate they’re suffering significant losses and hemorrhaging
cash, don’t tell the whole story. Many are not only cash flow positive,
but flushed with revenue from prepaid subscription fees that require
deferred recognition under GAAP. As example, for the year ended
June 2015, NetSuite reported a $109.6M net loss, but was cash flow
positive from operations to the tune of $89.1M.
TTM EBITDA Margin Distribution– 3Q15Median EBITDA Margin Performance – Quarterly
25
(8.1%)
(13.2%)
(13.1%)
(11.3%)
(10.6%)
3Q14 4Q14 1Q15 2Q15 3Q15
EBITDAMargin
61%
14% 12%
9%
4%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
%ofCompanies
TTM EBITDA Margin

26
• OpEx: Public SaaS companies continue to spend heavily on sales & marketing in order to drive revenue growth and capture market share.
• In 3Q15, public SaaS companies invested a median 37% of total revenue on sales & marketing, almost double their on-premise counterparts. However, this
represents a modest decline from the 41% S&M spend in 3Q14.
• After staying constant at roughly 19.7% for the past four quarters, R&D spending as a percent of revenue fell slightly in 3Q15, declining to 18.8%. Public
SaaS companies in 3Q15 spent 4.3% more on R&D as a percent of revenue than their on-premise peers, as they endeavored to expand their offerings,
enhance their technology and platforms, and address new markets.
• On a GAAP basis, operating losses of public SaaS companies bottomed out at a -13.2% median EBITDA margin in 4Q14. Since then EBITDA margin for the
group has steadily rose to -10.6% as these organizations have pulled back slightly on their investments in sales & marketing and R&D.
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
3Q14 4Q14 1Q15 2Q15 3Q15
%Margin
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
3Q14 4Q14 1Q15 2Q15 3Q15
%ofRevenue

THE SEG SaaS INDEX: PUBLIC MARKET MULTIPLES
• At the close of 3Q15, the median market multiple of public SaaS companies was 5.8x EV/Revenue, down 11% YoY, but up modestly from last quarter’s
median multiple of 5.0x.
• Yet investors were goggle-eyed about the prospects of a good number of public SaaS providers. One-quarter of the companies in the SEG SaaS Index
achieved a median EV/Revenue multiple of 9x or higher in 3Q15, and public SaaS companies continued to trade at a significant premium to their on-
premise peers (5.8x vs. 3.1x median EV/Revenue). Although public SaaS companies have historically enjoyed trading multiples about double their on-
premise peers, the differential is shrinking. 3Q15’s premium of 87% was much lower than 3Q14’s 110% premium.
• A premium market multiple can be largely justified by comparing the relative lifetime value of a SaaS customer vs. an on-premise licensee. A SaaS
company with a mission critical hosted app and strong customer retention will garner significantly greater cash over time (typically, 10+ years) from its
average customer than will its on-premise counterpart. As for profitability, it remains to be seen if SaaS companies can eventually achieve bottom line
performances that are equivalent to their on-premise counterparts.
• In the meantime, investors are placing their bets on the next wave of SaaS category leaders that are positioned to displace incumbent on-premise
providers across multiple product categories - just as Salesforce did to Siebel years ago in the CRM category.
EV/Revenue Multiple Distribution– 3Q15Median EV/Revenue and EV/EBITDA Multiples – Quarterly
27
6.5x 5.4x 5.4x 5.0x 5.8x
55.0x
38.1x 38.3x
46.1x
38.5x
3Q14 4Q14 1Q15 2Q15 3Q15
5%
12% 12%
5%
12%
6%
12%
5%
6%
25%
<= 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
%ofCompanies
EV/Revenue

• In 3Q15, investors continued to handsomely reward the fastest growing public SaaS companies, albeit more modestly than in Q2. Public SaaS companies
that grew TTM revenue in excess of 50% were anointed with the highest median EV/Revenue multiple of 11.1x in 3Q15, compared to a median market
multiple of 11.9x in the prior quarter.
• In past years, investors deemed profitability to be an unacceptable tradeoff for accelerated growth. That trend has ameliorated over the past three
quarters, as public SaaS companies have grown larger and growth rates have stalled. In Q3, investors favored public SaaS companies losing money but
perceived to be investing heavily in rapid growth, as well as those that are demonstrating not only sustained growth, but moderate profitability. The older
view, however, prevailed for those SaaS companies deemed to be too profitable (30%+), which investors saw as unacceptable tradeoff against accelerated
growth.
28
0.0x
2.2x 2.2x
5.2x
6.5x
10.2x
11.1x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
<= 50%
> 50%
MedianEV/Revenue
TTM Revenue Growth
6.2x
3.0x
4.4x
8.2x
5.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
MedianEV/Revenue
TTM EBITDA Margin

Top 25%
Bottom 25%
• When the SEG SaaS Index is segmented on
the basis of median EV/Revenue multiple,
the top 25% boasted an impressive median
11.5x in 3Q15, a healthy increase from Q2’s,
9.5x multiple, but below Q1’s EV/Rev
multiple of 13.2x.
• These SaaS high flyers are market leaders in
a wide array of SaaS categories including
security (FireEye); HCM/Finance
(Workday); ERP (NetSuite); eCommerce
(Shopify); and Vertically Focused (Castlight
Health – Healthcare ERP).
• The median TTM revenue growth rate of
those in the top 25% percentile was 44.3%.
All but two companies (Paycom, and Ellie
Mae) in the top rank had a negative EBITDA
margin in 3Q15.
• In contrast, the median TTM revenue
growth rate of those comprising the bottom
25% of EV/Revenue multiples was 20.5%,
with one third of these companies being
profitable.
29
Company Ticker EV (Median) TTM Revenue
TTM Revenue
Growth
EV/
Revenue TTM EBITDA EBITDA Margin
EV/
EBITDA
Shopify SHOP $2,380 $145 - 16.4x -$10 -7.2% -
Workday WDAY $13,287 $975 58.2% 13.6x -$152 -15.6%-
Tableau Software DATA $6,581 $527 71.4% 12.5x -$1 -0.3% -
Service-now.com NOW $11,352 $918 50.5% 12.4x -$116 -12.6% -
FireEye FEYE $6,383 $530 97.4% 12.0x -$397 -74.8% -
HortonWorks HDP $927 $79 109.6% 11.7x -$206 -260.9% -
New Relic NEWR $1,473 $126 73.2% 11.7x -$48 -38.2% -
Paycom Software PAYC $2,118 $185 46.2% 11.5x $38 20.6% 55.6x
Paylocity Holding PCTY $1,658 $153 40.5% 10.9x -$8 -5.2% -
Demandware DWRE $2,091 $195 47.8% 10.7x -$29 -14.7% -
HubSpot HUBS $1,518 $146 55.3% 10.4x -$52 -35.5% -
Netsuite N $7,074 $693 34.9% 10.2x -$71 -10.3% -
Ellie Mae ELLI $2,076 $210 54.6% 9.9x $46 21.9% 45.2x
2U TWOU $1,360 $138 32.0% 9.9x -$26 -18.6% -
Q2 Holdings QTWO $910 $94 41.8% 9.7x -$14 -15.1% -
Textura TXTR $649 $75 44.7% 8.7x -$10 -13.1%-
The Ultimate Software Group ULTI $5,027 $583 20.8% 8.6x $66 11.4% 75.7x
Veeva Systems VEEV $3,006 $359 37.9% 8.4x $88 24.5% 34.2x
AppFolio APPF $501 $61 0.0% 8.3x -$9 -15.6% -
Salesforce.com CRM $47,657 $5,974 25.3% 8.0x $316 5.3% 150.9x
Medidata Solutions MDSO $2,857 $383 19.5% 7.5x $40 10.5% 71.2x
Cvent NYSE:CVT $1,156 $165 31.7% 7.0x $1 0.4% 1840.8x
Castlight Health CSLT $420 $61 121.2% 6.9x -$79 -129.8% -
SPS Commerce SPSC $1,035 $152 25.8% 6.8x $15 10.1% 67.3x
Cornerstone OnDemand CSOD $1,973 $301 35.7% 6.6x -$53 -17.5% -
Qualys QLYS $968 $148 24.1% 6.5x $31 20.7% 31.6x
Fleetmatics FLTX $1,686 $258 27.0% 6.5x $68 26.3% 24.8x
Benefitfocus BNFT $1,035 $160 33.6% 6.5x -$50 -31.6% -
MINDBODY MB $523 $85 0.0% 6.2x -$25 -29.8% -
Athenahealth ATHN $5,386 $880 23.8% 6.1x $68 7.8% 78.9x
Box Box $1,499 $259 0.0% 5.8x -$155 -59.8% -
Marketo MKTO $1,118 $194 42.8% 5.8x -$57 -29.5% -
J2 Global JCOM $3,455 $657 20.7% 5.3x $268 40.8% 12.9x
Callidus Software CALD $799 $154 24.2% 5.2x -$5 -3.3% -
Ebix EBIX $1,151 $240 17.6% 4.8x $85 35.5% 13.5x
RingCentral RNG $1,144 $255 35.3% 4.5x -$27 -10.6% -
Alarm.com ALRM $812 $186 25.4% 4.4x $24 12.9% 33.8x
Workiva WK $517 $127 27.8% 4.1x -$37 -29.3%-
RealPage RP $1,503 $434 11.6% 3.5x $33 7.6% 45.7x
HealthStream HSTM $675 $198 22.2% 3.4x $32 16.0% 21.2x
Xactly XTLY $210 $67 0.0% 3.1x -$13 -19.8%-
DealerTrack TRAK $51 $18 94.2% 2.8x $2 11.9% 24.0x
OPOWER OPWR $369 $138 27.3% 2.7x -$36 -26.1% -
Halogen Software TSX:HGN $161 $61 18.0% 2.6x -$9 -13.9% -
IntraLinks Holdings IL $667 $268 9.7% 2.5x $12 4.5% 54.9x
ChannelAdvisors ECOM $219 $92 18.6% 2.4x -$23 -25.3% -
Apigee Corporation APIC $162 $69 30.2% 2.4x -$47 -68.6% -
inContact SAAS $456 $198 36.1% 2.3x -$9 -4.3% -
LivePerson LPSN $486 $230 20.5% 2.1x $9 4.0% 52.3x
SciQuest SQI $204 $104 4.7% 2.0x $5 5.1% 38.5x
Bazaarvoice BV $382 $194 11.7% 2.0x -$20 -10.5% -
Amber Road AMBR $124 $67 11.4% 1.9x -$13 -19.0% -
Constant Contact CTCT $629 $353 15.1% 1.8x $44 12.4% 14.3x
Upland Software UPLD $119 $68 25.0% 1.8x -$11 -16.7%-
TrueCar
NasdaqGS:
TRUE $392 $236 37.2% 1.7x -$38 -16.0%-
Tangoe TNGO $279 $217 8.3% 1.3x $14 6.7% 19.2x
Jive Software JIVE $239 $190 18.0% 1.3x -$26 -13.8% -
Marin Software MRIN $103 $106 19.5% 1.0x -$30 -28.0% -
Medical Transcript MTBC $24 $25 126.9% 1.0x -$3 -11.1% -
Covisint COVS $61 $85 -9.7% 0.7x -$22 -25.7% -

THE SEG SaaS INDEX BY PRODUCT CATEGORY:
3Q15 YoY Change in Median Revenue Growth3Q15 Median TTM Revenue Growth
3Q15 YoY Change in Median EBITDA Margin3Q15 Median TTM EBITDA Margin
30
* YoY Change in Median EBITDA Margin not applicable.
25.3%
27.0%
32.0%
28.9%
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
(14.4%)
(10.7%)
6.3%
(6.4%)
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
(10.5%)
(10.3%)
7.6%
(9.6%)
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
(38.3%)
26.9%
(4.2%)
40.3%
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management

THE SEG SaaS INDEX BY PRODUCT CATEGORY:
• Public SaaS companies comprising the Vertically Focused category posted the highest median public market multiple (6.9x EV/Revenue) of our four SaaS
tracking categories in 3Q15. The category was led by Ellie Mae (9.9x EV/Revenue multiple) and Q2 Holdings (9.7x EV/Revenue). As the SaaS delivery
model matures, investors are favoring newer, vertically oriented, best of breed providers that are rapidly gaining share in large vertical markets, often at
the expense of larger, slower and less vertically focused SaaS and on-premise providers.
• The market success of Vertically Focused SaaS companies was largely attributable to their having achieved the highest TTM revenue growth rate in 3Q15,
32%. Category standouts included healthcare spend management SaaS provider, Castlight Health (121% TTM revenue Growth); construction sector SaaS
vendor, Textura (45% TTM revenue growth); and life sciences SaaS vendor, Veeva Systems (38% TTM revenue growth).
• In 3Q15, the CRM & Marketing category saw the only positive YoY change in Median EV/Rev, thanks to a number of recent IPOs that have rapidly gained
traction, including Zendesk (11.3x EV/Rev, 69% TTM revenue growth); and Hubspot (8.7x EV/Rev,, 55% TTM revenue growth)
3Q15 YoY Change in Median EV/Revenue3Q15 Median EV/Revenue Multiple
31
5.8x
6.5x
6.9x
6.5x
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
91.4%
(11.2%)
(25.9%)
(26.1%)
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management

THE SEG INTERNET INDEX
PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

THE SEG INTERNET INDEX
• The SEG Internet Index tracks public companies that primarily offer
B2C and B2B solutions over the Internet using a wide array of pricing
models.
• The SEG Internet Index is currently comprised of 96 public Internet
companies*.
* See appendix for complete list of companies in the SEG Internet Index
33
SEG - Internet: Median Metrics
Measure 3Q14 4Q14 1Q15 2Q15 3Q15
EV/EBITDA 20.9x 17.5x 17.9x 17.3x 16.5x
EBITDA Margin 8.0% 8.0% 8.0% 7.3% 7.1%
Net Income Margin -0.2% 0.3% 0.3% 0.4% 0.1%
TTM Total EBITDA ($M) $30.9 $26.6 $26.6 $27.9 $25.9
Cash & Eq ($M) $204.8 $215.3 $215.3 $204.0 $201.9
Current Ratio 2.5 2.2 2.2 2.4 2.3

THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE
• Approximately 60% of the companies comprising the SEG Internet
Index offer online services and solutions primarily or exclusively to
consumers; their revenue growth typically lags a quarter behind the
performance of the U.S. economy.
• After rising from 15.8% growth in 3Q14 to 19.3% in both 4Q14 and
1Q15, median TTM revenue growth of the SEG Internet Index has
dropped 17.8% and 16.1% in 2Q15 and 3Q15, respectively.
• Once again demonstrating the Internet is an ecosystem of unequals,
22% of public Internet providers far outpaced the pack, posting TTM
revenue growth greater than 40% in 3Q15. These high flyers
included 58.com (99.7%), BitAuto Holdings (89.3%), and YY (79.5%).
• Conversely, 34% of public Internet companies struggled to advance,
reporting TTM revenue growth of 10% or less in 3Q15. The slow
growers included VeriSign, Yahoo!, Zynga, Brightcove, and Monster
Worldwide.
TTM Revenue Growth Rate Distribution – 3Q15Median Revenue Performance – Quarterly
34
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$460
$465
$470
$475
$480
$485
$490
$495
$500
$505
$510
3Q14 4Q14 1Q15 2Q15 3Q15
TTMRevenueGrowth
TTMTotalRevenue
20%
16%
24%
12%
6%
22%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM Revenue Growth

• The median EBITDA margin of the SEG internet Index has declined
modestly over the last four quarters and roughly 30% of SEG Internet
Index companies were unprofitable in 3Q15.
• At the other end of the spectrum, 4% of public Internet companies,
mostly those with significant transaction or advertising revenue,
achieved EBITDA margins above 40%, led by VeriSign (62.6%),
Mail.ru Group (44%) and Tencent Holdings (42.0%).
• With few exceptions, many of the most profitable public Internet
companies reported stellar TTM revenue growth. Among them were
Tencent Holdings (42% EBITDA margin, 23% revenue growth);
Facebook (43.6% EBITDA margin, 46.2% revenue growth) and
Baidu.com (30.2% EBITDA margin, 42.5% revenue growth).
TTM EBITDA Margin Distribution – 3Q15Median EBITDA Margin Performance – Quarterly
35
29% 30%
18%
7%
11%
4%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM EBITDA Margin
8.0% 8.0% 8.0%
7.3% 7.1%
3Q14 4Q14 1Q15 2Q15 3Q15
EBITDAMargin

36
• OpEx: Median spending on operations by public Internet companies in 3Q15 was consistent with historic norms: 12.4% for Research & Development,
24.2% for Sales & Marketing, and 11.6% for General & Administrative.
• Over the past year, S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat.
• The median R&D spend as a percent of total revenue was the lowest among our three tracking indices.
• Public internet companies have kept their cost structures in line, resulting in a median EBITDA margin of 7.1% in 3Q15. For the past year, median
EBITDA margin for the Internet Index has hovered between 7-8%.
-10%
0%
10%
20%
30%
40%
50%
60%
70%
3Q14 4Q14 1Q15 2Q15 3Q15
%Margin
0%
5%
10%
15%
20%
25%
30%
3Q14 4Q14 1Q15 2Q15 3Q15
%ofRevenue

THE SEG INTERNET INDEX: PUBLIC MARKET MULTIPLES
• The median public market EV/Revenue multiple of public Internet providers closed 3Q15 at 1.7x, roughly on par with the first and second quarters, but
notably lower than the 2.2x multiple of a year ago. More than 57% of public Internet companies closed Q3 with an EV/Revenue multiple of 2.0x or less.
• We believe Q3’s depressed Internet market multiple reflected continuing investor caution about a sustained economic recovery and its concomitant
impact on consumer spending. Approximately 60% of public Internet companies are consumer focused (Travel, Games, Retail, Advertising, etc). Until
wages improve and consumer confidence is restored, it’s likely Internet providers will continue to lag well behind their SaaS and on-premise peers in
market multiples.
• That said, investors in Q3 continued to richly reward the most rapidly growing and most promising Internet providers, especially those that generated
significant revenue from online advertising and ecommerce. One in ten closed the quarter with a market multiple of 7.0x EV/Revenue or higher, including
Wowo Limited (21.3x EV/Rev), Facebook (16.9x) , 58.com (14.7x EV/Rev) and RenRen (12.4x).
Median EV/Revenue Multiple Distribution – 3Q15Median EV/Revenue and EV/EBITDA Multiples – Quarterly
37
2.2x 2.0x 1.8x 1.8x 1.7x
20.9x
17.5x 17.9x 17.3x
16.5x
3Q14 4Q14 1Q15 2Q15 3Q15
35%
22%
14%
6%
4% 4% 3% 3% 2%
6%
<= 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
%ofCompanies
EV/Revenue

THE SEG INTERNET INDEX: PUBLIC MARKET MULTIPLES
• Here, too, investors favored growth. Public Internet companies with TTM revenue growth of 30% or higher had a median EV/Revenue multiple of 6.0x in
Q3, compared to less than 2.0x for their slower growing (<20%) peers. The outperformers included LinkedIn (38.7%, 9.2x EV/Revenue); Twitter (70.3%,
8.6x EV/Revenue); 58.com (99.7%, 14.7x EV/Revenue); and Facebook (46.2%, 16.9x EV/Revenue).
• Investors in public Internet companies kept a keen eye on margins, and rewarded more profitable performers with significantly higher public market
multiples. Public Internet companies with EBITDA margins above 40% posted a median EV/Revenue multiple of 6.8x in 3Q15, approximately 300%
higher than the overall Index median. By comparison, public SaaS companies with EBITDA margins above 30% (not enough companies with 40%+)
posted a median EV/Revenue multiple of 5.0x in Q3, 16% below the SaaS median market multiple.
• When valuing Internet vs. SaaS stocks, investors have clearly taken into consideration the likely longevity of the customer relationship and associated
recurring revenue, and the nature and extent of switching costs. By those measures, the likely lifetime value of a SaaS customer appears to greatly
outweigh the perceived value of an online consumer.
38
1.2x
1.7x 1.7x
4.9x
3.5x
6.8x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
MedianEV/Revenue
TTM EBITDA Margin
1.2x
1.8x 1.8x
3.1x
6.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
MedianEV/Revenue
TTM Revenue Growth

Ad Tech Commerce Content & Media Gaming
Infrastructure Services Social Travel
• The SEG Internet Index is segmented into nine product categories.
• Representative companies in each Internet category are referenced below.
• See the appendix for the complete list of companies within each product category.
THE SEG INTERNET INDEX BY PRODUCT CATEGORY
39
Search

THE SEG INTERNET INDEX BY PRODUCT CATEGORY:
3Q15 Median YoY Change in Revenue Growth3Q15 Median TTM Revenue Growth
3Q15 Median YoY Change in EBITDA Margin3Q15 Median TTM EBITDA Margin
40
20.1%
16.2%
8.8%
16.8%
4.2%
14.9%
19.1%
46.2%
16.3%
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
(24.7%)
0.4%
(28.7%)
73.8%
(59.9%)
(39.6%)
(25.8%)
(27.4%)
(34.2%)
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
1.8%
6.2%
8.9%
36.2%
5.7%
30.4%
8.0%
8.5%
11.3%
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
(23.1%)
14.7%
(36.7%)
56.1%
52.6%
(15.4%)
6.8%
(20.4%)
(30.4%)
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel

THE SEG INTERNET INDEX BY PRODUCT CATEGORY:
• Public Internet companies comprising the Social product category closed Q3 with a median revenue growth rate of 46.2%, roughly 3x the overall Internet
median growth rate of 16.1%. The Ad-tech product category ended Q3 with a median revenue growth rate of 20.1%, roughly 1.3x greater than Q3’s
Internet median.
• Public Internet companies comprising the Social category closed 3Q15 with the highest median EV/Revenue multiple, 8.6x, led by Facebook (16.9x) and
RenRen (12.4x).
• The success social media Internet providers have had monetizing their services, largely through advertising, has come at the expense of many in the Ad
Tech space, with marketers clearly favoring the scalability and ROI of advertising on larger platforms.
• Companies within the Search and Gaming product categories continued to be very profitable in Q3, posting median EBITDA margin of 30.4% and 36.2%,
respectively.
• Following a correction in public software industry valuations witnessed throughout 2014, all nine of our product categories experienced a decline in YoY
EV/Rev multiples.
Median 3Q15 YoY Change in EV/Revenue3Q15 Median EV/Revenue Multiples
41
0.9x
1.0x
2.1x
1.4x
1.3x
1.5x
1.9x
8.6x
2.6x
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
(53.0%)
(10.1%)
(34.5%)
(42.2%)
(21.7%)
(8.4%)
(22.7%)
(9.8%)
(28.7%)
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel

SOFTWARE INDUSTRY M&A MARKET UPDATE

Average On-Premise Software Deal SizeU.S. Software Mergers & Acquisitions Activity
• There were 524 reported software M&A transactions in 3Q15, a modest decline from 2Q15’s quarterly record of 581 software M&A transactions. The third
quarter tally will likely increase by approximately 15 – 20 transactions as unpublicized deals are added. The third quarter also marks the fourth
consecutive quarter in which transaction volume has eclipsed 500 deals, a sign of the continued bull market in software M&A.
• Software M&A spending in 3Q15 totaled $28.1 billion, down from Q2 2015’s $37 billion aggregate price tag, which included twelve mega deals (EV>500M),
four with price tags exceeding $2 billion. There were 11 megadeals in the third quarter (including only three exceeding $2 billion). Representative mega
deals in the quarter included Vista Equity Partners’ acquisition of Solera Holdings ($6.2 billion EV, 5.4x TTM revenue); IBM’s acquisition of Merge
Healthcare ($975 million, 4.3x TTM revenue); Infor’s acquisition of GT Nexus ($675 million, 5.1x TTM revenue estimate) and Envestnet’s acquisition of
Yodlee ($504 million, 5.1x TTM revenue).
• Megadeals aside, most buyers continued to focus on small and mid-sized acquisitions in 3Q15, consistent with their response to our 2015 Buyers Survey,
in which 95% of respondents indicated they would focus in 2015 on deals in the range of $10M - $99M .
3Q15 SOFTWARE / SAAS M&A DEAL VOLUME AND SPENDING
43
435
406 394
431
444 455 460
517
488
505 506
581
524
$12.3
$15.8
$9.9
$20.8
$20.2
$22.8
$31.4
$26.6
$43.5
$17.7
$17.4
$37.0
$28.1
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
0
100
200
300
400
500
600
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Value(BIllions)
NumberofDeals
Deals Value
$36
$39
$36 $35
$40
$43
$53 $54
$65
$60
$52
$56
$47
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
TTMAverageDealValue(Millions)

• The median EV/Rev exit multiple for on-premise software providers
was 2.5x in 3Q15, matching the prior quarter’s all-time high exit
multiple. That makes six consecutive quarters the median exit
multiple has reached 2.3x EV/Rev or higher.
• After a significant shakeout following the Great Recession, many of
the public on-premise providers left standing are perceived by an
array of public and private equity acquirers to be compelling, highly
valued targets, but their acquisition motives varied widely. Some
sought to extend their reach into entirely new markets (IBM /Merge
Healthcare); some were taken private by financial sponsors (Vista
Equity Partners/Solera Holdings); and some were consolidated by
larger technology buyers (AOL/Millennial Media).
• The median EV/EBITDA exit multiple for public on-premise software
companies rose slightly to 18.1x TTM EBITDA in the third quarter.
SOFTWARE M&A EXIT MULTIPLES
• On a TTM basis, 35.3% of all on-premise software targets in 3Q15
were acquired for 2.0x TTM revenue or less, and 60.3% for 3.0x or
less.
• Most targets receiving an exit multiple of 3.0x or higher belonged to
currently “hot” software product categories that are experiencing
rapid market adoption and growth, including Financial Services and
Mobile.
• Helping to keep the on-premise multiple at an all time high was
Deutsche Boerse’s 3Q15 acquisition of multi products trading
platform provider 360 Treasury Systems ($796 million, 14.5x TTM
revenue) and The Riverside Company’s acquisition of banking
software provider Baker Hill ($100 million, 3.2x TTM revenue)
Median EV/Revenue Exit Multiple DistributionMedian Exit Multiples
44
2.4x 2.3x 2.5x 2.5x 2.5x
17.7x
16.2x
17.5x 17.3x
18.1x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
3Q14 4Q14 1Q15 2Q15 3Q15
12.9%
22.4%
25.0%
12.9%
8.6%
1.7%
16.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
<= 1.0x > 1.0x &
<= 2.0x
> 2.0x &
<= 3.0x
> 3.0x &
<= 4.0x
> 4.0x &
<= 5.0x
> 5.0x &
<= 6.0x
> 6.0x
TTM Revenue Exit Multiple Bins
%ofDeals-3Q15TTM

Large Vs. Smaller BuyerPublic vs. Private Target
SOFTWARE M&A: BY OWNERSHIP STRUCTURE AND SIZE
• Of the TTM deals announced with an ascertainable EV/Rev exit
multiple, nearly four out of five software M&A transactions featured
privately-held targets.
• The median TTM exit multiple was only marginally higher for public
on-premise software sellers (2.4x TTM revenue) than for their private
counterparts (2.2x TTM revenue).
• Over the last 12 months, public buyers paid a median 2.1x TTM
revenue for their targets, compared to a median of 2.5x paid by
private buyers.
• Buyers with revenue greater than $200 million paid a median 2.8x
TTM revenue for their targets, compared to a median 2.0x TTM
revenue paid by sub-$200 million revenue buyers.
• On a TTM basis, software M&A transactions with the highest exit
multiples featured a large public or private buyer (greater than $200
million in revenue) acquiring a small target (less than $20 million).
For the last 12 months, this match-up produced a median 3.2x
EV/Revenue exit multiple.
45

SOFTWARE M&A: BY VERTICAL AND HORIZONTAL MARKETS
Horizontal & Vertical M&A Median EV/Revenue Exit MultiplesHorizontal & Vertical M&A Volume
• The median exit valuation of horizontal software companies was 2.1x TTM revenue in 3Q15, down slightly from the prior three quarters. Q3 small and
middle market horizontal transactions included Sun Corporation’s acquisition of industrial asset management software provider BacSoft ($13.8 million,
10.9x TTM revenue); Egton Medical’s acquisition of compliance and continuity management software provider PinBellCom ($4.7 million, 2.5x TTM
revenue) and Ericcson’s acquisition of IP video processing and distribution software provider Envivio ($90.1 million, 2.1x TTM revenue).
• The median exit valuation of vertical software companies was 2.4x TTM revenue in 3Q15, on par with recent quarters. Vertical software targets have
fetched a higher median EV/Revenue exit multiple than their horizontal software counterparts for the past five quarters. That represents a marked
turnaround for vertical software median exit valuations after a dismal 2012 and 2013 (1.5x). The vertical exit recovery began in 2014 when the median
multiple advanced to 2.2x.
• Q3’s more noteworthy vertical software deals included Vista Equity Partners’ acquisition of automotive and property sector software provider Solera
Holdings ($6.2 billion, 5.4x TTM revenue/15.0x TTM EBITDA) and IBM’s acquisition of medical software provider Merge Healthcare ($975 million, 4.3x
TTM revenue/24.7x TTM EBITDA). Smaller vertical transactions included Aptean’s acquisition of health information solutions provider Medworxx ($11.6
million, 2.2x TTM revenue) and IDOX’s acquisition of public sector software provider Cloud Amber (7.6 million, 2.1x TTM revenue).
46
31% 34% 33% 35% 34%
69% 66% 67% 65% 66%
0%
20%
40%
60%
80%
100%
3Q14 4Q14 1Q15 2Q15 3Q15
Horizontal Vertical
2.5x
2.4x 2.4x
2.5x
2.4x2.4x
2.3x 2.3x 2.3x
2.1x
3Q14 4Q14 1Q15 2Q15 3Q15
Vertical Horizontal

SOFTWARE M&A ACTIVITY BY PRODUCT CATEGORY
• Mobile was the most active product category by
far in the second quarter, accounting for 24.9%
of all software M&A transactions. Distant
runner-ups were Financial Services (8.0%),
Education (5.5%), Security (5.2%), and CRM &
marketing (5.2%).
• Historically, deal activity in any given product
category varies widely from year to year, based
upon evolving market adoption, changing
technology platforms, economic cycles, etc.
Examples include:
• Entertainment transactions accounted for
0.8% of all software M&A activity in 3Q15,
but only 3.2% in 3Q14.
• Education deals represented 5.5% of all
software M&A activity in 3Q15, compared
with only 3.2% in 3Q14.
• Security transactions were credited with
5.2% of software M&A activity in 3Q15,
compared with 3.2% in 3Q14.
• Other Verticals accounted for 8.0% of all
software M&A activity in 3Q15, compared
with 4.9% in 3Q14.
47
Vertical

SOFTWARE M&A EXIT VALUATIONS BY PRODUCT CATEGORY
Median EV/Revenue Exit Multiples by Software Product Category
• Among the 36 on-premise software product categories we track, ten had both sufficient deal activity and deal data to ascertain a category TTM revenue
multiple in 3Q15.
• On a TTM basis, the Financial Services category was rewarded with the highest median exit multiple (3.2x), followed by Content, Document & BPM with a
median exit multiple of 2.7x.
• Notable Financial Services software transactions included Deutsche Boerse’s acquisition of multi products trading platform provider 360 Treasury
Systems ($796 million, 14.5x TTM revenue) and The Riverside Company’s acquisition of banking software provider Baker Hill ($100 million, 3.2x TTM
revenue)
• Content, Document & BPM software transactions include Lexmark’s acquisition of Kofax ($955 million, 3.2x TTM revenue) and Aveva Group’s acquisition
of 8over8 ($41 million, 2.7x )in 1Q15.
• On-premise Supply Chain Mgmt & Logistics exit multiples lagged far behind most others.
48
3.2x
2.7x
2.5x 2.4x 2.4x 2.3x
2.1x 2.0x 1.9x
1.5x
FinancialServices
Content,Document
&BPM
Mobile
BI,Risk&
Compliance
Healthcare
DataMgmt.&
Integration
OtherVerticals
(A&D,Telco,Retail,
etc.)
Security
Multimedia,
Graphics&Digital
Media
SupplyChainMgmt
&Logistics

Median SaaS EV/Revenue Exit MultiplesSaaS M&A Volume
• There were 157 SaaS M&A transactions in 3Q15, the most on record for any quarter. Since 1Q14, each quarter has set a new high for SaaS M&A transaction
activity.
• The median TTM EV/Revenue exit multiple of SaaS transactions was 3.7x in 3Q15, unchanged from the prior quarter. Following eight consective quarters
(4Q12 – 3Q14) in which the median SaaS exit multiple held above 4.0x TTM revenue, the median exit multiple has settled in around 3.7x for the past 4
quarters (dipping slightly in 1Q15). As we’ve stated in quarters past, there is typically a six to nine month lag for any fluctuation in the public markets to
have a downstream impact on the M&A markets. The softening in the median SaaS M&A multiple since 4Q14 follows are correction to public SaaS
valuations beginning in 1Q14.
• That said, a number of SaaS sellers in Q3 fetched exit multiples well above the median, including DotLoop, purchased by Zillow for $108 million (~7.2x
TTM revenue estimate); Smart Tuition, acquired by Blackbaud for $190 million (~5.9x TTM revenue); Yodlee, purchased by Envestnet for $504 million
(5.1x TTM revenue); and GT Nexus, acquired by Infor for $675 million (5.1x TTM revenue estimate).
• The median SaaS exit multiple was 48% greater than the median on-premise software exit multiple in 3Q15 (3.7x vs 2.5x).
SaaS M&A: DEAL VOLUME AND MEDIAN EXIT MULTIPLES
49
94 94
86
104
97 103 104 108
118
132134
150
157
0%
5%
10%
15%
20%
25%
30%
35%
0
20
40
60
80
100
120
140
160
180
SaaSM&ADealsasa%ofTotal
SoftwareM&ADeals
#ofSaaSM&ADeals
SaaS M&A Deals SaaS as % of Software
4.1x
3.7x 3.4x 3.7x 3.7x
3Q14 4Q14 1Q15 2Q15 3Q15

• CRM, Marketing & Sales and HR & Workforce
Management were the most active SaaS M&A
product categories, accounting for 15.3% and
9.6%, respectively, of all SaaS M&A
transactions in the third quarter.
• Education (7.0%), Messaging, Conferencing, &
Communications, Real Estate, and Healthcare
also exhibited strength in 3Q15, each
accounting for 6.4% of total SaaS deal volume
for the quarter.
• Other notable categories included Hospitality
(5.7%), BI, Risk & Compliance (4.5%),
Systems Management (3.8%), and Security
(3.2%).
SaaS M&A BY PRODUCT CATEGORY – 3Q15
50
Vertical

3Q15 SaaS M&A TRANSACTIONS
51
Date Buyer Seller
Enterprise Value
(mm)
TTM
Revenue EV/Rev
09/30/15 MYOB Group Limited (ASX:MYO) Information Management Services Limited $6.2 - -
09/30/15 Mercer LLC Comptryx LLC - - -
09/30/15 - SmartPay Solutions LLC - - -
09/30/15 IntelePeer Cloud Communications, LLC Advantone Inc. - - -
09/30/15 Avendra, LLC BuyEfficient, LLC $26.5 - -
09/30/15 Simply Color Lab Inc. ShootQ Inc. - - -
09/29/15 Workday, Inc. (NYSE:WDAY) MediaCore Inc. - - -
09/29/15 Veeva Systems Inc. (NYSE:VEEV) Zinc Ahead Holdings Ltd $126.7 - -
09/25/15 Amazon.com, Inc. (NasdaqGS:AMZN) Amazon Machine Translation R&D Group - - -
09/24/15 REFFIND Ltd. (ASX:RFN) Wooboard Pty Ltd. $2.7 - -
09/23/15 Jayex Australia Pty Limited Appointuit Pty Ltd $10.5 - -
09/23/15 System C Healthcare plc The Learning Clinic Limited - - -
09/23/15 TICNOVA QUALITY TEAM S.L. Buguroo Offensive Security S.L - - -
09/22/15 WalmartLabs, Inc. PunchTab, Inc. - - -
09/22/15 Cengage Learning, Inc. Learning Objects, Inc. - - -
09/18/15 Archimage SAS MyCloud3D SAS - - -
09/17/15 Sarbacane Software SAS MCEC, SAS - - -
09/17/15 Soil Sub Technologies Ltd. (ASX:SOI) Pointerra Pty Ltd $0.3 - -
09/17/15 Reynolds & Reynolds Limited Contact Advantage Limited - - -
09/15/15 GTT Communications, Inc. (NYSE:GTT) One Source Networks Inc. $175.0 $74.5 2.4x
09/14/15 Huron Consulting Group Inc. (NasdaqGS:HURN) Cloud62 Inc. - - -
09/14/15 Stealz, Inc. Tuee Inc. - - -
09/10/15 CEB Canada Inc. Wanted Technologies Corporation (TSXV:WAN) $31.3 $7.4 4.2x
09/10/15 DEMANDBASE, INC. WhoToo Incorporated - - -
09/10/15 Internet Brands, Inc. Ngage Live Chat - - -
09/10/15 WorkWave, LLC ContactUs.com, Inc. - - -
09/10/15 Cegid Group SA (ENXTPA:CGD) Magelia SAS - - -
09/10/15 Efficient Hire, LLC gatherDocs, LLC - - -
09/10/15 NonProfitEasy, Inc. Fundly Inc. - - -
09/09/15 AhernIT Partners, LLC Progressive Platforms, LLC - - -
09/09/15 SteelBrick Holdings, Inc. Acertis Cloud Ltd - - -
09/09/15 Periscope 4tree GmbH - - -
09/09/15 OpSec Security, Inc. Trademarx LLC - - -
09/09/15 Vapour Media Limited EveryCloud Ltd. - - -
09/08/15 Orckestra Inc. Composite A/S - - -
09/08/15 Cloud4Wi, Inc. HADABEAN srls - - -
09/08/15 Accenture plc (NYSE:ACN) S3 TV Technology Ltd. - - -
09/08/15 Microsoft Corporation (NasdaqGS:MSFT) Adallom, Inc. - - -
09/08/15 DocuSign, Inc. Keynectis S.A., Trusted Documents and Transactions - - -
09/04/15 Edge HR AB Comaea AB $2.3 $1.2 1.9x

3Q15 SaaS M&A TRANSACTIONS (CON’T)
52
Date Buyer Seller
Enterprise Value
(mm)
TTM
Revenue EV/Rev
09/04/15 Contact Solutions, Inc. Nexxphase, Inc. - - -
09/04/15 Zift Solutions, Inc. SharedVue, Inc. - - -
09/04/15 INRIX, Inc. ParkMe, Inc. - - -
09/03/15 Linx Sistemas E Consultoria Ltda. Chaordic Systems S.A. $14.8 - -
09/03/15 Interfacing Technologies Corporation HeyBubble Inc. - - -
09/03/15 Anaqua, Inc. IdeaPoint, Incorporated - - -
09/03/15 The Priceline Group Inc. (NasdaqGS:PCLN) Analytical Systems Pty Ltd - - -
09/02/15 Capillary Technologies Pvt Ltd. Cloud Cherry Pte Ltd. - - -
09/02/15 Yardi Systems, Inc. Optimus EMR, Inc. - - -
09/02/15 Constellation Web Solutions, Inc. Market Leader, Inc. $23.0 - -
09/02/15 Capillary Technologies Pvt Ltd. Ruaha Technology Labs Private Limited - - -
09/01/15 RITEQ Pty Ltd Vedelem Pty Ltd - - -
09/01/15 Simply Measured, Inc. Inside, Inc. - - -
09/01/15 RIVS, Inc. Async Recruiting LLC - - -
09/01/15 Panasonic Corporation (TSE:6752) Quick Service Software Inc. - - -
08/31/15 Sprinkle AB Strossle - - -
08/31/15 XIMERA, Inc. Hatch, Inc. - - -
08/31/15 Dineout Services Pvt Ltd inResto Services Pvt Ltd - - -
08/28/15 ibibo Group Private Limited Saaranya Hospitality Technologies Private Limited - - -
08/27/15 Autodesk, Inc. (NasdaqGS:ADSK) SeeControl, Inc. - - -
08/27/15 LinkedIn Corporation (NYSE:LNKD) Fliptop, Inc. - - -
08/26/15 Medical Specialties Distributors, LLC Verbal Applications Inc. - - -
08/25/15 TIBCO Software Inc. Mashery, Inc. - - -
08/24/15 Let Insurance Services Limited The Landlord Hub Ltd - - -
08/21/15 LifeLock, Inc. (NYSE:LOCK) Bityota, Inc. $12.5 - -
08/21/15 Reserve Media, Inc. Set for Service LLC - - -
08/20/15 Oracle Corporation (NYSE:ORCL) Maxymiser Inc. - - -
08/20/15 Visma AS Aditro AB - - -
08/20/15 PeopleAdmin, Inc. SearchSoft Solutions, Inc. - - -
08/19/15 Spredfast, Inc. Shoutlet, Inc. - - -
08/18/15 ScaleArc, Inc. ScaleBase, Inc. - - -
08/18/15 Chequed.com, Inc. Assess Systems, Inc. - - -
08/18/15 Synacor, Inc. (NasdaqGM:SYNC) Zimbra, Inc. $24.2 - -
08/18/15 Freshdesk Inc. Turtle Yogi Technologies Pvt Ltd - - -
08/18/15 BMC Software, Inc. Boundary, Inc. - - -
08/18/15 Keller Williams Realty, Inc. KW Team Leads - - -
08/17/15 Verint Systems Inc. (NasdaqGS:VRNT) Telligent, Inc. - - -
08/17/15 PCG Polska Sp. z o.o. Librus Sp. z o.o. - - -
08/17/15 Grid Dynamics International, Inc. Tonomi - - -
08/17/15 International Business Machines Corporation (NYSE:IBM) Appcore, LLC - - -

53
Date Buyer Seller
Enterprise Value
(mm)
TTM
Revenue EV/Rev
08/16/15 Locon Solutions Pvt. Ltd. Sadanika Solutions Private Limited $2.0 - -
08/14/15 Alpha Sociedad de Valores S.A, Puesto de Bolsa Qualys, Inc. (NasdaqGS:QLYS) - - -
08/14/15 Mobikon Technologies Private Limited triibe - - -
08/13/15 Turner Broadcasting System, Inc. iStreamPlanet Co., LLC - - -
08/12/15 Markit Ltd. (NasdaqGS:MRKT) CoreOne Technologies LLC $200.0 - -
08/12/15 Fidelity National Information Services, Inc. (NYSE:FIS) SunGard Data Systems Inc. - - -
08/11/15 Tradeshift Inc. Merchantry, Inc. $30.0 - -
08/11/15 International Coal Limited (ASX:ICX) Velpic Limited $7.7 - -
08/11/15 Paragus Strategic IT, Inc. Applied Software Technologies, Inc. - - -
08/10/15 Infor (US), Inc. GT Nexus, Inc. $675.0 $133.1 5.1x
08/10/15 Envestnet, Inc. (NYSE:ENV) Yodlee, Inc. (NasdaqGS:YDLE) $504.2 $98.7 5.1x
08/10/15 Blackbaud Inc. (NasdaqGS:BLKB) Smart Tuition, LLC $190.0 $32.0 5.9x
08/06/15 Marlin Equity Partners, LLC ADP AdvancedMD, Inc. - - -
08/05/15 Aconex Limited (ASX:ACX) Nexus Point Solutions Pty Limited $4.7 - -
08/05/15 Marsh & McLennan Companies, Inc. (NYSE:MMC) Dovetail Insurance Corporation - - -
08/05/15 Thoma Bravo, LLC Internet Pipeline, Inc. - - -
08/04/15 SurveyMonkey Inc. TechValidate Software Inc. - - -
08/04/15 DiscoverOrg, LLC iProfile, LLC - - -
08/03/15 SuperPay Australia Pty Ltd IP Payments Pty Ltd - - -
08/03/15 Mailup SPA (BIT:MAIL) Acumbamail, S.L. - - -
08/03/15 Achieve3000, Inc. Smarty Ants Inc. - - -
08/03/15 Quindell Services Inc. IBL-Internet Business Logic Inc. $1.9 - -
08/03/15 King Solomon Mines Limited (ASX:KSO) Xref Pty Ltd $5.5 - -
08/03/15 Amadeus IT Holding SA (CATS:AMS) Hotel SystemsPro, LLC - - -
07/31/15 Silicon Valley Bank, Inc. Financial Tech, Inc. - - -
07/31/15 Galicia Energy Corporation Ltd (ASX:GAL) TV2U Worldwide Pty Ltd $15.4 - -
07/30/15 Blue Coat Systems Inc. PerspecSys Inc. - - -
07/29/15 - Attorn S.A - - -
07/29/15 Cloudability Inc. RipFog, Inc. - - -
07/29/15 ThinPrint Cloud Services, Inc. ezeep GmbH - - -
07/29/15 Autotask Corporation SoonR, Inc. - - -
07/28/15 Great Hill Partners, LLC Reward Gateway (UK) Ltd. - - -
07/28/15 Hewlett-Packard Company (NYSE:HPQ) ActiveState Software Inc., Stackato Business - - -
07/24/15 Pinsent Masons Complete Electronic Risk Compliance Limited - - -
07/23/15 Anoto Group AB (publ) (OM:ANOT) XMS Penvision AB $3.3 $1.5 2.2x
07/23/15 Ipreo Holdings LLC iLEVEL Solutions, LLC - - -
07/22/15 Inte Q, LLC Teleformix LLC - - -
07/22/15 Workfront, Inc. ProofHQ Limited - - -
07/22/15 Sysomos Inc. Expion LLC - - -
07/22/15 Dropbox Inc. Clementine Labs, Inc. - - -

54
Date Buyer Seller
Enterprise Value
(mm)
TTM
Revenue EV/Rev
07/22/15 The Descartes Systems Group Inc (TSX:DSG) BearWare Inc. $11.3 - -
07/21/15 Zillow Group, Inc. (NasdaqGS:ZG) DotLoop, LLC $108.0 $15.0 7.2x
07/21/15 Callidus Software Inc. (NasdaqGM:CALD) BridgeFront, LLC - - -
07/21/15 e-Builder, Inc. Scenario Virtual Project Delivery Inc. - - -
07/21/15 Amadeus IT Holding SA (CATS:AMS) Itesso BV - - -
07/20/15 The Descartes Systems Group Inc (TSX:DSG) MK Data Services LLC $83.5 $20.0 4.2x
07/20/15 Unizin Courseload, Inc. - - -
07/20/15 MedVision, Inc. Health Access Solutions, Inc. - - -
07/20/15 Coupa Software Incorporated TripScanner, Inc. - - -
07/20/15 Bregal Sagemount irth Solutions, Inc. - - -
07/16/15 Microgen plc (LSE:MCGN) Jobstream Group PLC $5.5 - -
07/15/15 Klass Capital Docebo SRL - - -
07/15/15 Aconex Limited (ASX:ACX) Worksite, Inc. $4.8 - -
07/15/15 TechSource National Inc. IMEBASE - - -
07/14/15 First Data Corporation Transaction Wireless, Inc. - - -
07/14/15 Jive Communications, Inc. FonAngle Communications, Inc. - - -
07/14/15 Solvere One LLC V-Oasis - - -
07/14/15 Dean Evans and Associates LLC EmergingSoft Corporation - - -
07/13/15 PTS Solutions, Inc. ITX Information Technology Solutions, Inc. - - -
07/13/15 Time-O-Matic Inc. Aerva, Inc. - - -
07/10/15 HGGC, LLC Selligent S.A. - - -
07/10/15 HashingSpace Corporation (OTCBB:HSHS) HashingSpace Corporation. - - -
07/09/15 Asaas Gestão Financeira S.A. UNI4 Sistemas de Informação LTDA - - -
07/09/15 Cirpack SAS SARL ANDREXEN - - -
07/09/15 TurboAppeal Services LLC Realytics - - -
07/08/15 TargetX.com LLC Uversity, Inc. - - -
07/07/15 CharityVillage Ltd. TalentEgg Inc. - - -
07/07/15 Skyview Capital LLC Syncplicity, Inc. - - -
07/06/15 Coupa Software Incorporated InvoiceSmash Pty. Ltd. - - -
07/06/15 SiteCompli, LLC KWG, Inc. - - -
07/03/15 Altium Limited (ASX:ALU) Ciiva GmbH $4.0 - -
07/02/15 ACCEO Solutions Inc. Julo LLC - - -
07/02/15 Appriss Inc. Pharmitas, Inc. - - -
07/01/15 Nintex Group Pty Ltd Drawloop Technologies, Inc. - - -
07/01/15 Gartner Inc. (NYSE:IT) Nubera eBusiness S.L. - - -
07/01/15 Synoptic Technologies Ltd. iVeridis Corporation - - -
07/01/15 LoanLogics, Inc. RexHub, LLC - - -

Internet M&A Volume
INTERNET M&A: DEAL VOLUME AND EXIT MULTIPLES
Median Internet EV/Revenue Exit Multiples
• Q3’s 232 Internet M&A transactions represented a 23% decline from Q2’s 304 transactions, but is more in the line with the prior three quarters
• The 2.6x median TTM EV/Revenue exit multiple for Internet sellers in 3Q15 was down slightly from 1H15’s mark but still remains well above historical
norms
• Leading third quarter Internet M&A transactions included Digital Realty Trust’s acquisition of internet infrastructure provider Telx Group ($1.8 billion,
6.1x TTM revenue); Paypal’s acquisition of internet money transfer services provider Xoom ($867 million, 5.0x TTM revenue); Match.com’s acquisition of
dating website provider Plentyoffish ($575 million); News Corp’s acquisition of internet ad-tech provider Unruly ($178 million) and Yahoo’s acquisition of
Polyvore ($230 million), which provides online commerce and social tools to the retail segment.
55
241 244 244
304
232
0
50
100
150
200
250
300
350
3Q14 4Q14 1Q15 2Q15 3Q15
2.1x 2.0x
2.9x 2.9x
2.6x
3Q14 4Q14 1Q15 2Q15 3Q15

INTERNET M&A: BY PRODUCT CATEGORY
2Q15 M&A Volume by Product Category M&A Volume by Quarter
• With the exception of Ad-Tech and Gaming, all internet M&A categories experienced declines in 3Q15 over 2Q15.
• While total activity declined 23% from 2Q15 to 3Q15, deal activity was down only 3.7% YOY. On a category basis, Ad-Tech and Lead Gen increased 2.3%
QoQ and 22% YoY; Commerce decreased 41.9% QoQ and 12.2% YoY; Content & Media decreased 51% QoQ and 6.9% YoY; Gaming increased 27.2% QoQ
and decreased 33% YoY; Infrastructure decreased 10.7% QoQ and 21.8% YoY and Social Tech decreased 8.7% both QoQ and YoY.
• Gaming once again had the lowest transaction volume.
56
38.4%
18.5%
17.2%
6.0%
10.8%
9.1%
Ad-Tech & Lead Gen
Commerce
Content & Media
Gaming
Infrastructure
Social Tech
Category 3Q 2014 4Q 2014 1Q15 2Q15 3Q15
Ad-Tech & Lead Gen 73 67 73 87 89
Commerce 49 65 50 74 43
Content & Media 43 52 60 81 40
Gaming 21 13 10 11 14
Infrastructure 32 32 32 28 25
Social Tech 23 15 19 23 21
Total 241 244 244 304 232

APPENDIX

THE SEG SOFTWARE INDEX COMPANIES – KEY METRICS
58
SEG Software Index
Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin
A10 Networks 3.7x 3.1x 0.8x 1.0x 1.7x - - - - - - 26.6% 26.6% 12.6% 4.2% -1.7% -12.8% -12.8% -18.8% -19.7%
Accretive Health 0.3x 0.4x 0.4x - 0.4x 4.8x 5.7x 6.1x - 7.3x -3.1% 0.5% 0.5% 5.8% 10.8% 6.6% 6.3% 6.3% 6.1% 6.1%
ACI Worldwide 2.9x 2.8x - 3.1x 3.3x 13.2x 13.6x - 15.0x 16.5x 30.3% 17.5% 17.5% 11.2% 6.7% 21.9% 20.5% 20.5% 20.5% 20.2%
Activision Blizzard 3.4x - 3.4x - 4.4x 12.7x - 11.8x - 14.3x -13.9% -3.8% -3.8% 4.7% 8.4% 27.2% 28.9% 28.9% 30.4% 30.4%
Allot Communications - 2.2x - 1.7x 0.5x - 81.4x - 50.4x - 8.3% 21.4% 21.4% 17.6% 3.9% 3.4% 2.7% 2.7% 3.5% -0.8%
Allscripts Healthcare Solutions 2.4x - 2.3x 2.1x 2.3x 103.9x - 56.3x 44.7x 39.4x -2.2% 0.4% 0.4% 0.4% - 2.3% 4.1% 4.1% 4.6% 5.8%
Amdocs Limited - 1.8x 1.8x 1.7x 2.1x - 9.4x 9.3x 8.9x 10.6x 5.6% 6.6% 6.6% 4.8% 3.1% 18.3% 18.9% 18.9% 19.4% 19.4%
American Software 2.2x 2.0x 1.9x 1.9x 1.9x 13.9x 16.7x 17.3x 16.9x 15.1x 4.4% 1.3% 1.3% 2.3% 4.6% 15.8% 12.2% 11.0% 11.5% 12.5%
ANSYS 7.2x 6.5x 6.9x 6.9x 7.9x 15.5x 14.2x 14.9x 15.1x 17.3x 8.0% 8.7% 8.7% 6.8% 5.1% 46.5% 46.0% 46.0% 46.0% 46.0%
Aspen Technology 9.7x 9.0x 8.8x 7.1x 7.2x 28.4x 23.1x 22.5x 17.5x 17.2x 25.7% 20.4% 20.4% 14.6% 12.5% 34.0% 38.9% 38.9% 40.7% 41.9%
Autodesk 4.2x 4.0x 4.5x 4.8x 4.1x 27.2x 31.7x 41.5x 49.3x 52.2x 3.7% 6.1% 10.5% 11.8% 7.1% 15.3% 12.8% 10.7% 9.7% 7.9%
AVG Technologies 2.9x 2.7x 2.3x 2.5x 3.6x 8.6x 8.4x 7.2x 8.0x 11.7x -3.0% -8.1% -8.1% -3.2% 5.1% 33.1% 32.4% 32.4% 31.0% 30.3%
Bango PLC 8.2x 9.9x 8.6x 13.3x 12.5x - - - - - -19.5% -42.0% -42.0% -44.9% -48.3% -71.1% -95.7% -95.7% -110.0% -129.3%
Barracuda Networks 6.5x 4.9x 4.6x 5.7x 4.2x 209.2x 144.4x 161.4x 258.2x 256.9x 16.8% 17.6% 18.7% 18.7% 17.4% 3.1% 3.4% 2.8% 2.2% 1.6%
Blackbaud 3.0x 2.9x 3.2x 3.5x 4.9x 15.7x 17.7x 19.5x 21.6x 30.0x 9.5% 12.0% 12.0% 13.2% 13.4% 19.3% 16.5% 16.5% 16.2% 16.3%
Bottomline Technologies 4.3x 3.3x 3.1x 2.8x 3.2x 40.1x 25.8x 24.3x 20.9x 24.1x 18.0% 19.8% 19.8% 15.2% 10.1% 10.7% 12.6% 12.6% 13.5% 13.2%
Broadridge Financial 1.9x 1.9x 2.0x 2.1x 2.5x 9.3x 9.7x 10.1x 10.6x 11.7x 5.2% 4.6% 4.6% 4.5% 5.3% 20.1% 19.7% 19.7% 19.8% 21.4%
Brocade Communications Systems 2.0x 1.6x 1.6x 1.9x 1.7x 7.5x 6.0x 6.2x 7.2x 6.4x -1.6% -0.5% 1.1% 1.6% 1.5% 26.2% 25.8% 25.6% 26.0% 26.2%
BSQUARE 0.2x 0.2x 0.2x 0.2x 0.5x 64.6x 4.9x 5.7x 4.4x 7.7x 1.2% 4.1% 4.1% 5.8% 10.6% 0.3% 3.3% 3.3% 5.2% 6.1%
CA 3.0x 2.6x 2.6x 2.8x 2.8x 9.3x 8.5x 8.2x 8.7x 8.9x -3.8% -0.4% -0.4% -3.4% -6.1% 31.9% 31.1% 31.1% 32.3% 31.4%
Cadence Design Systems 2.7x 2.8x 3.0x 3.1x 3.4x 13.6x 13.9x 14.4x 14.7x 14.4x 7.4% 7.4% 8.3% 8.7% 10.0% 20.0% 20.0% 20.9% 21.4% 23.5%
Cerner 5.9x 5.4x 5.6x 5.8x 5.8x 22.2x 20.6x 19.2x 20.4x 20.6x 15.2% 15.2% 16.6% 20.0% 24.0% 26.5% 26.5% 29.0% 28.4% 28.1%
Check Point Software Tech 8.3x 7.6x 7.9x 8.7x 8.3x 15.2x 14.0x 14.5x 16.1x 15.7x 5.3% 7.3% 7.3% 8.0% 8.9% 54.7% 54.3% 54.3% 54.0% 52.9%
Cisco Systems 1.9x 2.0x 2.0x 2.1x 2.1x 7.0x 7.3x 7.0x 7.7x 7.9x -3.0% -3.1% 0.4% 3.1% 4.3% 26.8% 27.5% 29.1% 27.6% 27.2%
Citrix Systems 3.3x 3.1x 3.8x 3.5x 3.6x 14.3x 14.2x 17.6x 16.5x 13.7x 9.4% 7.7% 7.7% 5.2% 4.2% 23.0% 21.4% 21.4% 21.4% 26.5%
CommVault Systems 4.6x 3.0x 3.2x 2.9x 2.2x 26.6x 26.6x 27.5x 34.7x 94.7x 16.5% 8.1% 8.1% 3.6% -4.9% 17.1% 11.5% 11.5% 8.4% 2.3%
Computer Programs and Sys 3.5x 3.3x 3.3x 3.3x 2.5x 12.4x 12.6x 12.6x 13.3x 11.1x 3.7% 1.9% 1.9% -2.2% -5.1% 27.9% 26.0% 26.0% 24.7% 22.5%
Constellation 4.1x 3.4x 3.7x 4.2x 7.0x 29.1x 23.1x 25.0x 26.1x 40.8x 40.8% 37.9% 37.9% 25.8% 17.6% 14.1% 14.6% 14.6% 16.1% 17.3%
CSG Systems International 1.3x 1.3x 1.3x 1.3x 1.5x 7.7x 8.1x 8.5x 7.8x 9.2x -0.2% 0.5% 0.5% -0.8% -0.8% 16.5% 15.7% 15.7% 16.3% 16.3%
Cyberark Software - - - 8.4x 11.8x - - - 34.8x 49.1x 0.0% 55.7% 55.7% 67.4% 76.5% 12.6% 20.6% 20.6% 24.1% 24.0%
Cyren 2.9x 2.7x 2.4x 1.6x 2.2x - - - - - 15.2% -1.0% -1.0% -4.9% -10.2% -13.7% -13.3% -13.3% -12.5% -9.4%
Dassault Systèmes 4.3x 4.3x 5.1x 4.9x 5.7x 15.7x 17.3x 20.2x 19.1x 20.9x 2.3% 11.0% 11.0% 17.3% 24.2% 27.7% 25.1% 25.1% 25.4% 27.4%
DST Systems 1.7x 1.5x 1.5x 1.5x 1.5x 11.3x 9.9x 9.8x 9.6x 10.3x 2.0% 3.4% 3.4% 4.1% 3.6% 15.4% 15.5% 15.5% 15.7% 14.6%
Electronic Arts 2.0x 2.0x 2.2x 2.5x 4.4x 20.8x 8.0x 8.8x 9.7x 15.3x 1.3% 21.6% 21.6% 26.3% 17.3% 9.6% 24.9% 24.9% 25.2% 28.5%
EMC 2.3x 2.2x 2.4x 2.4x 2.0x 10.0x 9.0x 10.1x 10.4x 9.5x 5.7% 5.2% 5.2% 5.4% 2.8% 23.1% 23.9% 23.9% 22.9% 21.0%
EPIQ Systems 1.7x 1.7x 1.8x 2.0x 2.0x 12.7x 14.2x 15.5x 15.6x 14.6x 21.7% 1.2% 1.2% -3.6% -2.5% 13.1% 11.8% 11.8% 12.9% 13.6%
Evertec 7.4x 7.1x 6.8x 6.5x 5.7x 18.3x 17.0x 16.3x 15.5x 13.5x 2.5% 0.9% 0.9% 1.9% 1.9% 40.2% 41.9% 41.9% 42.1% 42.4%

59
SEG Software Index
Evolving Systems 3.4x 2.8x 3.4x 3.6x 2.3x 13.9x 9.2x 11.1x 11.5x 8.4x 3.9% 18.3% 18.3% 19.0% 2.7% 24.6% 30.4% 30.4% 31.1% 27.2%
F5 Networks 4.6x 4.2x 4.5x 4.7x 4.2x 15.0x 13.6x 14.4x 15.0x 13.1x 14.7% 17.5% 17.5% 15.6% 13.3% 30.8% 31.1% 31.1% 31.6% 31.7%
Fair Isaac 3.1x 2.9x 2.9x 3.3x 4.1x 11.9x 12.6x 12.6x 15.0x 18.2x 2.5% 7.6% 7.6% 9.7% 9.2% 26.0% 23.3% 23.3% 22.3% 22.3%
FalconStor Software 1.1x 1.2x 0.9x 0.6x 1.1x - - - 84.2x 132.4x -23.5% -21.1% -21.1% -2.1% -0.4% -9.1% -18.0% -18.0% 0.7% 0.8%
Fidessa 3.2x 3.0x 2.9x 3.0x 2.4x 17.3x 16.3x 15.7x 16.8x 13.6x 0.1% -1.4% -1.4% 0.5% 2.5% 18.8% 18.2% 18.2% 17.8% 17.5%
Fiserv 3.6x 3.6x 3.8x 4.0x 4.6x 12.4x 12.3x 12.8x 13.2x 15.0x 7.6% 5.2% 5.2% 4.3% 3.8% 29.3% 29.7% 29.7% 30.3% 30.8%
Fortinet 4.7x 4.0x 4.7x 4.7x 7.1x 38.6x 37.3x 43.8x 52.1x 118.9x 20.0% 25.2% 25.2% 25.6% 29.4% 12.1% 10.6% 10.6% 9.0% 6.0%
GameLoft SA 2.5x 2.3x 1.7x 1.2x 1.1x 21.2x 45.8x 33.4x 30.1x 39.1x 5.7% -2.6% -2.6% 0.5% 3.5% 11.7% 5.1% 5.1% 3.9% 2.9%
Gigamon 5.8x 2.6x 1.3x 1.8x 3.3x - - - 64.5x 55.0x 15.4% 12.0% 17.8% 27.0% 38.4% -11.4% -9.3% -1.6% 2.8% 6.1%
Glu Mobile 2.5x 1.3x 2.0x 1.4x 1.6x - 20.1x 29.5x 21.5x 34.3x 40.0% 111.3% 111.3% 97.5% 85.3% -2.4% 6.6% 6.6% 6.7% 4.7%
Gree 1.7x 1.7x 1.4x 1.3x 0.8x 5.2x 5.4x 4.3x 4.2x 3.1x -17.5% -25.0% -25.0% -27.9% -26.4% 33.5% 31.4% 31.4% 30.3% 27.3%
GSE Systems 0.3x 0.3x 0.3x 0.2x 0.3x - - - - - -16.2% -20.3% -20.3% -1.6% 18.0% -10.3% -12.3% -12.3% -7.3% -4.9%
Guidance Software 2.8x 2.3x 1.9x 1.6x 2.2x - - - - - -14.1% -1.7% -1.7% -0.6% -0.2% -7.7% -5.3% -5.3% -4.3% -5.1%
Hewlett Packard 0.6x 0.6x 0.7x 0.7x 0.6x 5.6x 5.4x 5.6x 5.8x 4.7x -0.8% -0.8% -1.7% -3.2% -5.5% 11.5% 11.8% 11.9% 12.0% 12.0%
IBM 2.4x 2.4x 2.4x 2.2x 2.2x 8.9x 9.2x 9.3x 8.3x 8.4x -4.6% -5.7% -5.7% -7.3% -12.8% 26.7% 26.3% 26.3% 26.2% 25.8%
iDream Sky Technologies - - 0.7x 0.6x 0.3x - - 42.8x 28.8x 21.0x - 299.1% 299.1% 196.5% - 20.8% 1.7% 1.7% 1.9% 1.3%
Imperva 9.4x 2.9x 3.9x 5.8x 9.4x - - - - - 25.2% 19.1% 19.1% 26.0% 30.1% -29.6% -32.3% -32.3% -31.4% -29.3%
Intuit 5.1x 4.5x 4.7x 5.6x 6.4x 14.5x 14.1x 15.5x 22.7x 24.8x 7.5% 7.7% 11.0% -0.9% -1.2% 34.9% 31.8% 30.6% 24.7% 25.9%
Jack Henry & Associates 4.0x 3.9x 4.0x 4.0x 4.4x 11.9x 11.7x 11.8x 11.6x 12.7x 5.9% 8.4% 8.4% 9.1% 7.1% 33.5% 33.7% 33.7% 34.4% 34.8%
Juniper Networks 2.3x 2.2x 2.0x 1.9x 2.2x 13.3x 12.3x 11.5x 10.5x 10.1x 8.7% -0.9% -0.9% -5.3% -3.3% 17.6% 17.7% 17.7% 18.4% 21.5%
King Digital Entertainment 2.5x 2.2x 1.6x 1.7x 1.7x 6.8x 6.6x 4.9x 4.8x 4.9x 213.8% 20.4% 20.4% -2.3% -11.8% 36.4% 32.8% 32.8% 35.2% 34.3%
Konami 1.4x 1.4x 1.5x 1.3x 1.4x 12.4x 11.8x 12.0x 10.0x 9.7x -0.8% -1.9% -1.9% 0.3% 0.1% 11.6% 12.2% 12.2% 13.3% 14.8%
Magic Software Enterprises 2.1x 1.6x 1.4x 1.3x 1.2x 11.1x 9.2x 7.9x 7.0x 6.7x 16.0% 13.3% 13.3% 7.3% 4.5% 19.2% 17.9% 17.9% 18.9% 17.9%
Manhattan Associates 5.8x 4.8x 4.5x 5.6x 8.2x 21.0x 17.8x 16.7x 20.2x 28.2x 15.7% 18.7% 18.7% 18.7% 16.2% 27.4% 27.1% 27.1% 27.5% 29.0%
MedAssets 3.4x 3.1x 3.0x 2.8x 2.8x 11.4x 10.2x 9.9x 9.7x 9.6x 1.8% 5.9% 5.9% 8.3% 9.8% 30.0% 29.9% 29.9% 29.1% 29.2%
Mentor Graphics 2.1x 2.0x 2.0x 2.0x 2.3x 11.1x 10.5x 10.0x 9.2x 10.1x 10.1% 11.0% 7.6% 6.9% 8.1% 19.1% 18.9% 20.1% 21.6% 22.9%
Microsoft 3.3x 2.9x 3.3x 3.4x 3.3x 8.9x 8.1x 9.2x 9.7x 9.2x 11.5% 12.0% 12.0% 13.7% -0.8% 37.0% 36.0% 36.0% 35.5% 35.7%
MicroStrategy 1.6x 1.9x 2.1x 2.6x 3.5x 32.0x 27.4x 30.2x 20.8x 13.1x 4.9% 0.7% 0.7% -3.1% -10.3% 5.1% 6.9% 6.9% 12.4% 26.5%
Millennial Media 1.5x 1.5x 1.5x 1.5x 1.7x 9.2x 8.7x 8.7x 8.7x 9.8x -1.3% -3.7% -3.7% -4.3% -3.5% 16.0% 17.0% 17.0% 17.6% 17.7%
MIND C.T.I. 0.8x 0.9x 1.5x 1.7x 1.5x 3.8x 3.0x 5.0x 5.4x 4.5x 16.7% 35.4% 35.4% 26.8% 10.7% 21.1% 30.7% 30.7% 32.3% 34.2%
MobileIron - - 4.6x 4.2x 1.8x - - - - - - 25.3% 25.3% 27.4% 23.3% -40.7% -43.3% -43.3% -46.5% -51.4%
Model N 1.6x 1.8x 1.7x 1.9x 2.0x - - - - - -8.3% -18.6% -18.6% -13.3% -0.6% -10.1% -23.9% -23.9% -22.6% -20.1%
Momo - - - - 22.3x - - - - - - 1330.3% 1330.3% 665.4% 416.7% -72.4% -52.1% -52.1% -24.6% -9.7%
Monotype Imaging Holdings 6.5x 5.2x 5.7x 5.5x 4.6x 19.2x 15.9x 17.4x 17.7x 15.8x 9.0% 10.7% 10.7% 8.1% 6.5% 34.0% 32.8% 32.8% 31.1% 29.1%
MSCI 5.8x 5.5x 5.5x 5.5x 7.0x 13.4x 13.4x 13.4x 13.4x 16.8x 3.1% 9.1% 9.1% 9.2% 8.0% 43.2% 41.3% 41.3% 41.2% 41.7%
Myriad Group AG 3.0x 3.1x 6.2x 11.0x 13.3x - 10.1x 19.8x 42.0x 64.2x -17.3% -6.9% -6.9% -12.1% -17.3% -4.1% 31.2% 31.2% 26.2% 20.7%
NetApp 1.3x 1.2x 1.5x 1.5x 0.9x 8.0x 7.6x 9.3x 10.7x 7.8x -1.7% -1.9% -2.5% -3.2% -5.2% 16.4% 16.4% 16.0% 14.3% 12.1%

60
SEG Software Index
Netscout Systems 3.4x 3.2x 3.7x 3.0x 7.9x 13.4x 12.5x 14.6x 11.0x 30.0x 18.7% 16.8% 16.8% 14.4% 5.6% 25.1% 25.5% 25.5% 27.5% 26.4%
NetSol Technologies 1.4x 1.1x 1.1x 1.1x 1.5x - - - - 9.0x -21.7% -9.6% -9.6% 16.6% 41.3% -1.8% -17.0% -17.0% -4.2% 16.9%
NeuStar 2.6x 2.1x 2.2x 2.0x 1.9x 7.0x 5.6x 5.8x 5.3x 5.0x 8.2% 6.8% 6.8% 7.6% 7.7% 37.5% 37.2% 37.2% 38.6% 39.1%
NICE Systems Ltd 8.9x 7.5x 7.5x 9.7x 12.7x 52.6x 40.1x 39.9x 49.8x 64.6x 6.8% 6.6% 6.6% 7.9% 7.4% 16.9% 18.7% 18.7% 19.5% 19.7%
NQ Mobile 2.8x 1.3x 0.7x 1.2x 0.9x - - - - - 117.3% 68.9% 68.9% 40.5% 27.7% -15.4% -20.1% -20.1% -18.0% -9.7%
Nuance Communications 3.7x 3.5x 3.6x 3.2x 3.6x 41.1x 36.1x 37.1x 29.7x 29.4x 2.2% 3.5% 3.5% 2.1% 1.9% 9.1% 9.7% 9.7% 10.9% 12.3%
Omnicell 2.3x 2.0x 2.0x 2.3x 2.6x 14.7x 13.1x 13.0x 15.3x 18.2x 14.4% 15.8% 15.8% 15.2% 13.9% 15.5% 15.1% 15.1% 15.0% 14.2%
Open Text Corp 3.5x 3.6x 4.1x 4.2x 3.5x 12.8x 12.1x 13.7x 14.5x 12.3x 19.2% 35.4% 35.4% 26.1% 14.0% 27.6% 30.0% 30.0% 28.9% 28.1%
Opera 26.9x 19.4x 22.7x 23.0x 14.3x 104.3x 93.9x 109.9x 128.8x 84.7x 39.9% 60.2% 60.2% 60.1% 60.6% 25.8% 20.7% 20.7% 17.9% 16.9%
Oracle 4.5x 4.4x 4.3x 4.2x 4.1x 10.2x 10.1x 9.9x 10.1x 10.0x 3.0% 3.4% 2.5% -0.1% -1.1% 43.8% 43.6% 43.2% 42.0% 41.5%
Palo Alto Networks 8.1x 7.0x 8.3x 10.3x 15.7x - - - - - 51.0% 51.1% 53.0% 54.5% 55.1% -6.9% -8.3% -9.9% -11.7% -11.3%
Pandora Media 7.4x 5.3x 5.6x 3.9x 3.1x - - - - - - 40.6% 40.6% 30.4% 26.0% -1.4% -1.7% -1.7% -3.6% -3.4%
Parametric Technology 3.2x 3.2x 3.3x 3.4x 3.4x 14.4x 14.5x 16.0x 16.8x 17.1x 4.8% 4.9% 4.5% 2.2% -1.9% 22.2% 21.9% 20.9% 20.3% 20.0%
PDF Solutions 4.5x 4.8x 5.1x 2.9x 2.8x 12.6x 15.9x 17.0x 9.5x 10.4x 9.5% -1.3% -1.3% -4.3% -5.5% 35.4% 29.9% 29.9% 30.1% 26.6%
Pegasystems 2.2x 2.1x 2.4x 2.3x 2.5x 15.3x 16.5x 19.0x 18.8x 19.8x 16.7% 15.9% 15.9% 13.2% 12.7% 14.4% 12.8% 12.8% 12.0% 12.9%
Progress Software 2.7x 2.6x 2.8x 3.0x 3.9x 8.9x 8.3x 10.7x 13.6x 19.2x -1.2% -0.4% 4.5% 7.2% 11.4% 30.9% 31.5% 26.5% 22.1% 20.1%
Proofpoint 7.8x 5.5x 6.9x 7.5x 10.0x - - - - - 39.0% 41.8% 41.8% 40.6% 36.8% -16.4% -16.4% -16.4% -17.1% -20.8%
PROS Holdings 5.5x 3.7x 3.8x 3.9x 3.2x - - - - - 22.1% 28.3% 28.3% 24.0% 15.5% -0.6% -2.7% -2.7% -5.3% -9.6%
QAD 0.9x 0.9x 0.8x 0.9x 1.2x 15.7x 13.2x 12.0x 12.4x 15.8x 10.3% 11.8% 10.8% 8.4% 4.8% 5.7% 6.5% 7.0% 7.1% 7.6%
Qihoo360 Technology 12.3x 7.7x 7.9x 5.6x 4.9x 46.4x 31.2x 32.1x 21.5x 18.0x 121.3% 107.2% 107.2% 82.7% 64.2% 26.6% 24.8% 24.8% 25.9% 27.0%
Qiwi 0.1x 0.1x 0.1x 0.1x 0.1x 0.4x 0.3x 0.4x 0.2x 0.3x 26.3% 26.2% 26.2% 24.5% 24.1% 27.5% 28.9% 28.9% 31.4% 32.1%
Qlik Technologies 4.4x 3.2x 3.9x 4.3x 5.6x 264.2x 617.7x 768.2x 795.8x 1228.9x 18.8% 18.4% 18.4% 16.7% 10.1% 1.7% 0.5% 0.5% 0.5% 0.5%
Quality Systems 2.1x 1.8x 1.7x 1.6x 1.4x 18.6x 19.7x 18.6x 15.1x 11.8x 0.3% 8.2% 8.2% 10.2% 8.0% 11.2% 9.0% 9.0% 10.4% 11.5%
Radware 3.3x 2.7x 2.7x 3.4x 3.6x 24.3x 15.2x 15.1x 17.8x 20.6x 8.4% 15.0% 15.0% 14.7% 4.0% 13.5% 17.8% 17.8% 19.1% 17.5%
Red Hat 5.5x 5.0x 5.7x 5.6x 7.2x 29.5x 26.8x 31.0x 29.8x 37.8x 16.6% 16.5% 16.6% 15.8% 14.3% 18.7% 18.5% 18.5% 18.9% 19.0%
Redknee Solutions 2.3x 2.0x 1.4x 1.4x 1.6x 185.4x 41.1x 29.0x 21.0x 14.9x 156.4% 38.1% 38.1% -3.1% -11.9% 1.2% 4.8% 4.8% 6.7% 10.9%
Sage Group 3.8x 3.6x 3.4x 3.3x 4.5x 13.0x 12.7x 11.9x 11.5x 15.8x -4.4% -1.6% -1.6% 1.9% 1.9% 28.9% 28.4% 28.4% 28.4% 28.4%
SAP 4.3x 3.8x 4.0x 3.6x 4.1x 12.7x 11.2x 11.8x 11.0x 12.6x 2.2% 4.4% 4.4% 8.6% 15.7% 33.4% 34.2% 34.2% 32.9% 32.2%
Sapiens International 2.1x 1.9x 1.9x 1.9x 3.0x 15.9x 15.6x 16.1x 15.0x 21.7x 16.6% 16.3% 16.3% 15.2% 14.1% 13.0% 11.9% 11.9% 12.7% 13.8%
Silver Spring Networks 2.6x 2.7x 2.0x 1.0x 1.5x - - - - - 3.5% -41.5% -41.5% -8.4% 27.7% -22.6% -41.9% -41.9% -6.3% -2.7%
Software AG 2.5x 2.7x 2.0x 2.0x 2.4x 10.7x 10.5x 7.7x 7.7x 8.8x -8.2% -11.8% -11.8% -11.9% -6.8% 23.6% 25.4% 25.4% 26.1% 26.9%
SolarWinds 8.2x 6.5x 7.0x 8.0x 6.1x 23.3x 20.4x 22.1x 25.6x 19.9x 29.3% 27.8% 27.8% 25.5% 22.2% 35.1% 31.9% 31.9% 31.0% 30.9%
Sourcefire 0.9x 1.1x 1.1x 0.8x 0.9x 7.4x 15.9x 16.4x 11.7x 8.6x 43.9% 10.3% 10.3% 2.2% 5.6% 12.6% 6.7% 6.7% 7.1% 10.9%
Splunk 21.7x 12.9x 10.8x 13.7x 14.3x - - - - - 51.6% 50.6% 49.0% 48.1% 46.8% -40.5% -44.9% -45.1% -45.5% -42.0%
SS&C 5.6x 5.4x 5.6x 6.0x 8.0x 14.3x 13.8x 14.4x 15.9x 20.9x 7.1% 7.7% 7.7% 8.6% 10.2% 39.0% 38.9% 38.9% 37.5% 38.2%
Stratasys 8.0x 5.5x 6.8x 6.2x 1.6x 54.6x 40.9x 50.0x 58.7x 28.3x 88.0% 54.9% 54.9% 43.4% 27.2% 14.6% 13.6% 13.6% 10.6% 5.6%
Symantec 1.8x 1.9x 2.2x 2.4x 2.1x 6.3x 6.5x 7.6x 8.5x 7.2x -3.5% -2.9% -2.7% -2.5% -6.4% 28.9% 29.2% 29.0% 28.3% 28.8%

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