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Robert Koven Leonis Partners 1st Quarter 2018 SAAS Analysis

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LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established software and technology companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations


FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal

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Robert Koven Leonis Partners 1st Quarter 2018 SAAS Analysis

  1. 1. LEONIS PARTNERS: 1ST QUARTER 2018 SAAS ANALYSIS ANALY SIS OF SAAS VALUATIO NS & KEY DRIVERS IN PUBLIC AND PRIVATE MARKETS
  2. 2. LEONIS PARTNERS EXPERIENCED SAAS ADVISORS ▪ Leonis provides M&A and Growth Capital advisory services to both high-growth and well-established software and technology companies ▪ Leonis core areas of focus: ▪ Sell-side M&A: Represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor ▪ Capital Raises: • Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth • Minority Equity Raises: Equity investments from growth equity and strategic partners who bring capital and market expertise to bear ▪ Retained Advisory Services: Strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations For more information or inquiries, please contact us at info@leonispartners.com 2 SAAS TOMBSTONES FIRM OVERVIEW ▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market ▪ Team has executed over 115 M&A, restructuring and capital raising deals with cumulative transaction values over $180 billion ▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 domestic and international strategic acquirers ▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal Has Acquired $100,000,000 Equity Capital Raise $20,000,000 LEONIS CREDENTIALS & SERVICES Has Been Acquired By Has Been Recapitalized Debt Capital Raise Has Acquired Has Merged With Has Been Acquired By
  3. 3. LEONIS SAAS INDEX 1Q 2018 INDEX SUMMARY ▪ Leonis’s proprietary SaaS Index is comprised of 70 publicly-traded software companies that offer their services through a subscription-based pricing model ▪ The Leonis SaaS Index is an equally-weighted index ▪ In 1Q18, EV / Revenue valuations increased to all-time- highs on an average valuation multiple basis ▪ Interestingly, this increase was in the face of a slight deterioration in top-line growth rates. This is a trend Leonis will be monitoring as we move through 2Q and 3Q 2018 ▪ Multiple expansion amongst a backdrop of a volatile trading environment in 1Q 2018 ▪ Despite a steep sell-off in early 2016, SaaS companies have significantly and consistently outperformed the broader tech market over the past two years ▪ Industry multiples continue to be driven by a combination of growth and profitability rather than “growth at any cost” ▪ 15 of the 70 companies in the index have gone public within the last 24 months; to avoid overstating performance, the index excludes a stock’s performance on the day of its IPO. Additionally, major tech market movers like Facebook, Google and Amazon do not qualify for the index due to business model differentiation 3 SAAS INDEX PERFORMANCE – LAST 24 MONTHS MULTIPLES & GROWTH RATES OVER TIMETHE LEONIS SAAS INDEX Source: Pitchbook, Leonis Proprietary Transaction Database, Federal Reserve Economic Data. Note: Market Data as of 3/31/2018. 5.52x 6.45x 5.24x 6.10x 6.73x 6.82x 6.62x 7.61x 33% 30% 30% 32% 34% 35% 32% 29% 20% 30% 40% 50% 60% 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Avg. EV/Rev Multiple Avg. YoY Growth Rate (25.0%) (5.0%) 15.0% 35.0% 55.0% 75.0% 95.0% 115.0% 135.0% Leonis SaaS Index Nasdaq Index
  4. 4. LEONIS SAAS INDEX SUMMARY METRICS 4 SAAS SUB-VERTICAL VALUATIONSSUMMARY METRICS – TOTAL INDEX AVERAGES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Index Averages 1Q17 2Q17 3Q17 4Q17 1Q18 EV / LTM Revenue 6.10x 6.73x 6.82x 6.62x 7.61x EV / NTM Revenue 4.97x 5.77x 5.45x 5.26x 6.43x LTM Revenue Growth 32.3% 34.3% 34.9% 31.6% 29.2% Gross Profit Margin 68.4% 68.9% 68.9% 69.1% 69.3% EV / LTM CFO 82.8x 121.4x 103.1x 94.2x 131.3x CFO Margin 2.2% 3.9% 5.3% 6.4% 6.9% CFO $58.2 $66.2 $71.8 $80.5 $87.7 EV / LTM EBITDA 120.4x 85.3x 194.5x 91.4x 107.3x EBITDA Margin (8.3%) (8.0%) (7.1%) (5.7%) (4.9%) EBITDA ($6.1) ($5.6) ($2.6) $4.3 $7.8 Total Revenue $456.8 $486.1 $515.9 $549.6 $605.4 METRIC EV / LTM Rev. Averages 1Q17 2Q17 3Q17 4Q17 1Q18 Back-Office 6.52x 7.55x 7.61x 7.00x 8.44x Comm. & Collaboration 7.33x 7.49x 7.69x 7.82x 8.60x Customer Relations 6.74x 7.34x 7.42x 7.40x 8.85x Data & Analytics 5.76x 6.53x 6.93x 7.20x 9.40x FinTech & E-Commerce 6.58x 7.14x 7.28x 6.47x 7.85x HCM 7.25x 7.93x 8.07x 7.66x 8.89x HealthTech 5.04x 5.81x 5.43x 4.84x 5.17x IT 6.49x 6.55x 6.28x 7.14x 7.00x SCM / ERP 4.88x 5.83x 6.06x 6.00x 5.94x Security 4.76x 5.40x 5.45x 5.34x 6.10x Vertically-Focused 6.52x 7.12x 6.99x 6.76x 7.36x SECTOR
  5. 5. VALUATION RULE OF 40 & THE IMPACT ON VALUATION 5 SAAS INDEX VALUATIONS COMPARED TO RULE OF 40RULE OF 40 EXPLAINED CFO MARGINS + GROWTH RATE DISTRIBUTIONS ▪ The Rule of 40 states that if a company’s revenue growth (%) plus its cash flow from operations (CFO) (%) is > 40, then the company is operating efficiently and deserves a premium valuation multiple ▪ As shown on the following page, growth is the key driver of SaaS multiples, but typically growth comes at a high cost and must be weighed relative to profitability ▪ The Rule of 40 serves as a rule of thumb to identify which companies are overpaying for top-line growth at the cost of excessive bottom-line damage, and which are growing ‘efficiently’ Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% (40%) (30%) (20%) (10%) 0% 10% 20% 30% 40% RevenueGrowth(%) CFO Margin (%) 5.12x 4.92x 6.02x 8.24x 9.01x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x <10% 10-20% 20-30% 30-40% >40% EV/Revenue CFO Margin + Revenue Growth Rate 7x 11x 3x Scale(EV/Rev.):
  6. 6. ▪ As shown below, valuations are highly correlated to growth rates ▪ The distribution of EV/Rev multiples is relatively normal and centered at 6-8x EV/ Rev with an average growth rate of 30% at this multiple range ▪ Regression of bucketed average growth rates exhibits direct correlation, with an R-squared of .87(1), which is high for financial statistics 6 KEY SAAS REVENUE KPIS THE IMPORTANCE OF GROWTH IN SAAS VALUATIONS VALUATION EV / REVENUE VALUATIONS AS A FUNCTION OF GROWTH ▪ SaaS Valuations are driven by the following key characteristics • Revenue Retention Rate • Customer Retention Rates • Recurring (ARR or MRR) Growth Rates • Gross Margin • Total Addressable Market • Customer Acquisition Cost (CAC) relative to the Long-term value (LTV) of a customer ▪ SaaS companies receive high valuations due to their combination of high gross profit margins and the recurring aspect of their existing revenue base ▪ Large number of SaaS companies operate at negative margins for extensive periods to fund sales growth ▪ Given the recurring, high retention-rate nature of the business, each customer acquired is often a multi-year customer ▪ Investors look past current year’s cash burn, and instead focus on how the company’s future will benefit from current growth initiatives as they scale past their fixed costs Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. (1) Using a logarithmic regression in order to standardize the distribution of growth rates relative to EV/Rev multiples. EV / REV MULTIPLE VS. TOP- LINE GROWTH 1 10 13 19 8 10 9 8% 14% 32% 30% 32% 30% 40% y = 0.1556ln(x) + 0.0754 R² = 0.8705 0% 10% 20% 30% 40% 50% 60% 0 5 10 15 20 25 <2x 2-4x 4-6x 6-8x 8-10x 10-12x >12x # of Companies YoY Growth Log. (YoY Growth)
  7. 7. VALUATIONS AROUND BREAKEVEN ▪ Of the 70 companies in the Leonis SaaS Index, 53 produced positive CFO (cash from operations) in 1Q18 ▪ The median EV / Rev multiple of companies with positive CFO is 6.95x vs. the those with negative CFO, which trade at a median multiple of 6.07x EV/REV • Despite significantly outpacing the growth rates of their positive CFO peers, negative CFO companies still trade at a discount due to concerns over their ability to produce adequate cash flow 7 KEY PROFITABILITY KPIS CFO VS. EBITDA VALUATION EV / REVENUE VALUATIONS DEPENDENT ON CASH FLOW ▪ In tracking profitability of rapidly growing younger SaaS businesses, CFO (cash from operations) is often a preferable indication of where profitability stands relative to EBITDA • Primary functional difference is its inclusion of deferred revenue, which a GAAP based EBITDA will not take into account • CFO is more akin to a “cash” EBITDA figure and will turn positive ahead of GAAP EBITDA ▪ CFO – often turns positive ahead of EBITDA • Preferred measure of bottom line cash profitability ▪ Gross Margin – Key indicator of how scalable the SaaS platform will ultimately be (provides a notion of a high watermark and of the quality of the revenue base). ▪ EBITDA – For earlier stage SaaS platforms, EBITDA is often highly negative and irrelevant if growth is exceedingly fast at the top-line level Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. 6.95x 6.07x 25.7% 36.1% 0% 10% 20% 30% 40% 0.00x 2.00x 4.00x 6.00x 8.00x + CFO + CFO (-) CFO (-) CFO Median EV/Rev Multiple Median Growth Rate
  8. 8. LEONIS SAAS INDEX COMPANIES 8
  9. 9. 9 KEY OBSERVATIONS RELEVANT TRANSACTIONS BACK-OFFICE TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Back-Office SaaS includes the following company tickers: WK, WIX, NTNX, BL, OKTA, WDAY, MODN. ▪ Currently, the Back-Office SaaS companies in the index are trading at 8.4x EV/Revenue, growing at an average of 39% YoY (year-over- year) and averaging a gross margin of 69% ▪ Workday continues to be one of the best performing SaaS companies and continues to trade at a market-leading level ▪ Despite a slight decrease from 3Q 2017 to 4Q 2017, trading multiples returned to all-time highs in 1Q 2018 ▪ The ability to easily grow back-office software companies organically through increased customer acquisition investment, as well as inorganically through add-on acquisitions, makes high-growth achievable and sustainable even at scale BACK-OFFICE SAAS 5.4x 6.3x 5.9x 6.5x 7.6x 7.6x 7.0x 8.4x 67% 67% 68% 69% 68% 68% 69% 69% 32% 30% 33% 36% 50% 48% 42% 39% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 02/26/18 Intermedix R1 RCM $459.8 2.38x 12/05/17 TSheets.com Intuit $340.0 8.50x 11/17/17 Qvidian Upland Software $50.0 2.56x 08/03/17 Intacct Sage Group $850.0 12.69x Average EV/Rev Multiple over last five years: 6.00x
  10. 10. 10 RELEVANT TRANSACTIONS COMMUNICATION & COLLABORATION TRADING & PRECEDENT MULTIPLES ▪ Currently, the Communication & Collaboration SaaS businesses in the index are trading at 8.6x EV/Revenue, growing revenue at an average of 45% YoY and averaging a gross margin of 68% ▪ Following its IPO, Dropbox’s share price nearly 10% within its first week of trading as a public company, displaying investor appetite for SaaS companies − Dropbox was one of the biggest SaaS IPOs in the past year and its performance is being closely monitored given its potential implications in public and private SaaS valuations ▪ Groups like LogMeIn continue to show extreme 100+% YoY growth but are correspondingly trading below market at 4.90x revenue as a result of decreased revenue expectations in 2019 COMMUNICATION & COLLABORATION SAAS KEY OBSERVATIONS 5.6x 6.6x 6.1x 7.3x 7.5x 7.7x 7.8x 8.6x66% 65% 65% 66% 66% 67% 67% 68% 33% 32% 33% 36% 41% 48% 51% 45% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Communications & Collaboration SaaS include the following company tickers: JCOM, RNG, EVBG, TWLO, BOX, APPN, TEAM, DBX. Date Announced Target Acquirer Deal Size EV / Rev Multiple 02/08/18 Escher Group Hanover Investors $49.4 4.72x 06/12/17 Jive Software Aurea Software $462.2 1.72x 04/17/17 Eliza Hms Holdings $172.1 2.87x 01/19/17 IntraLinks Synchronoss Technologies $773.1 2.66x Average EV/Rev Multiple over last five years: 5.85x
  11. 11. 11 RELEVANT TRANSACTIONS CUSTOMER RELATIONS TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Customer Relations SaaS include the following company tickers: CRM, ZEN, LPSN, HUBS, FIVN, BLKB, YEXT, MB, VEEV. ▪ Currently, the Customer Relations SaaS businesses in the index are trading at 8.8x EV/Revenue, growing revenue at an average of 27% YoY and averaging a gross margin of 71% ▪ In 1Q 2018, Customer Relations SaaS saw a large increase in revenue multiples from 4Q 2017, an echo of changes in revenue multiples 4Q 2016 to 1Q 2017 - This seasonal fluctuation is most likely a change in market sentiment following major 4Q 2017 earnings beats by Salesforce, Zendesk and HubSpot ▪ Within the vertical, top-line growth continues to remain important and many of the smaller players are expanding rapidly to try to compete with the entrenched players like Salesforce CUSTOMER RELATIONS SAAS KEY OBSERVATIONS 6.0x 6.8x 5.6x 6.7x 7.3x 7.4x 7.4x 8.8x67% 68% 69% 70% 70% 70% 71% 71% 32% 31% 29% 29% 28% 29% 26% 27% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 02/05/18 LiquidHub Capgemini $494.4 1.83x 10/02/17 Velocify Accesso Technology $81.0 6.38x 07/12/17 The Experience Engine BICS $230.0 2.30x 04/25/17 TeleSign Dun & Bradstreet $150.0 2.50x Average EV/Rev Multiple over last five years: 6.82x
  12. 12. 12 RELEVANT TRANSACTIONS DATA & ANALYTICS TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Data & Analytics SaaS include the following company tickers: NEWR, CLDR, TLND, SPLK, AYX, DATA, MDSO, RP, TTD, MDB. ▪ Currently, the Data & Analytics SaaS businesses in the index are trading at 9.4x EV/Revenue, growing revenue at an average of 28% YoY and averaging a gross margin of 75% ▪ Data & Analytics was one of the most active SaaS verticals in 1Q 2018, mostly notably Marlin Equity Partner’s public-to-private acquisition of BazaarVoice ▪ Over the last couple years, this vertical has been highly volatile: - Key drivers include Tableau substantially missing top-line growth numbers in early 2016, leading market analysts to question the value of non-recurring revenue with players successfully transitioning to the SaaS model - Erased 50-60% of value in a week - Two years later, shares have returned to 1Q pre-crash levels DATA & ANALYTICS SAAS KEY OBSERVATIONS 5.0x 5.9x 4.8x 5.8x 6.5x 6.9x 7.2x 9.4x73% 73% 73% 74% 74% 74% 74% 75% 37% 34% 38% 43% 42% 44% 37% 28% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 03/22/18 Cynosure Zensar Technologies $33.3 1.65x 02/27/18 Openwave Mobility Enea $89.9 3.33x 02/26/18 Intermedix R1 RCM $459.8 2.38x 02/14/18 Utopus Insights Vestas Wind Systems $100.2 10.00x Average EV/Rev Multiple over last five years: 6.83x
  13. 13. 13 RELEVANT TRANSACTIONS FINTECH, E-COMMERCE & MARKETPLACE TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. FinTech, E-Commerce & Marketplace SaaS include the following company tickers: ECOM, SHOP, TRUE, EBIX, QTWO, COUP, ELLI. ▪ Currently, the FinTech, E-Commerce & Marketplace SaaS businesses in the index are trading at 7.8x EV/Revenue, growing revenue at an average of 27% YoY and averaging a gross margin of 67% ▪ Despite volatility in growth rates over the LTM, public FinTech companies experienced valuation expansion as a result of recent FinTech acquisitions occurring at high multiples ▪ SaaS FinTech companies have a different look than the broader ecosystem; the SaaS model works best for E-Commerce, marketplace and financial enterprise software companies and not for the payments, P2P loans, wealth-advisor and neobank applications that tend to dominate FinTech discussions and private raises FINTECH, E-COMMERCE & MARKETPLACE SAAS KEY OBSERVATIONS 5.4x 6.0x 5.7x 6.6x 7.1x 7.3x 6.5x 7.8x66% 66% 66% 67% 67% 67% 66% 67% 37% 34% 30% 32% 33% 27% 25% 27% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 03/06/18 CommerceHub GTCR, Sycamore Partners $1,075.7 9.72x 02/14/18 Dealer Inspire Cars.com $165.0 4.02x 02/01/18 BazaarVoice Marlin Equity Partners $521.0 2.14x 12/21/17 Ensenta Jack Henry and Associates $130.0 4.81x Average EV/Rev Multiple over last five years: 7.97x
  14. 14. 14 RELEVANT TRANSACTIONS HCM TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. HCM SaaS include the following company tickers: WDAY, ULTI, PAYC, CSOD, INST, PCTY, NOW. ▪ Currently, the HCM SaaS businesses in the index are trading at 8.9x EV/Revenue, growing revenue at an average of 29% YoY and averaging a gross margin of 70% ▪ HCM continues to be one of the highest valued verticals in SaaS, with large players like SerivceNow continuing to hit all-time high valuations ▪ Valuation premiums reflect strong value proposition offered by HCM as a cloud service - Provide interface similar to social-media and supplies the data storage and processing power capacity needed for advanced HR ML and AI to run effectively - Immense strategic and private equity interest adds a premium to multiples by providing an apparent price floor HUMAN CAPITAL MANAGEMENT SAAS KEY OBSERVATIONS 7.7x 8.2x 6.1x 7.2x 7.9x 8.1x 7.7x 8.9x68% 68% 68% 68% 68% 69% 69% 70% 41% 39% 35% 32% 30% 29% 28% 29% 20% 30% 40% 50% 60% 70% 80% 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 01/30/18 CallidusCloud SAP $2,400.0 8.89x 07/31/17 CareerBuilder Apollo $500.0 3.09x 07/31/17 Xactly Vista Equity Partners $522.5 5.47x 05/26/17 Evolution HCM Asure Software $55.0 3.93x Average EV/Rev Multiple over last five years: 6.20x
  15. 15. 15 RELEVANT TRANSACTIONS HEALTHTECH TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. HealthTech SaaS include the following company tickers: BNFT, VEEV, HSTM, ATHN, MDSO, TRHC, WAGE, CSLT. ▪ Currently, the HealthTech SaaS businesses in the index are trading at 5.2x EV/Revenue, growing revenue at an average of 20% YoY and averaging a gross margin of 58% ▪ Lower growth rates, pricing pressure and slim gross margins have left HealthTech as one of the lowest-valued sectors in SaaS ▪ Low growth rates are a result of a complex combination of factors including longer sales cycles, heavy regulation and slow adoption ▪ Public markets have attributed the highest valuations to HealthTech companies that deal with the collection and consolidation of information/data ▪ However, the highest transaction multiples have been seen in emerging HealthTech trends, including diagnostics, patient monitoring and telehealth HEALTHCARE TECHNOLOGY SAAS KEY OBSERVATIONS 5.4x 5.4x 4.9x 5.0x 5.8x 5.4x 4.8x 5.2x 56% 56% 58% 58% 58% 58% 58% 58% 24% 23% 23% 23% 24% 24% 22% 20% 10% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 04/17/17 Eliza Hms Holdings $172.1 2.87x 04/14/17 Entrada NextGen Healthcare $34.0 2.83x 01/24/17 CoverMyMeds McKesson $1,400.3 13.97x 08/08/16 Morrisey Associates Echo $48.0 3.75x Average EV/Rev Multiple over last five years: 6.00x
  16. 16. 16 RELEVANT TRANSACTIONS IT TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. IT SaaS include the following company tickers: HDP, APTI, SPLK. (1) 2Q16 and 3Q16 YoY Growth rates are outliers and are not shown. ▪ IT SaaS encompasses companies with SaaS products for connecting and monitoring applications, data and devices ▪ The number of public IT SaaS companies has been increasing in the public and private markets, as legacy IT companies spin-off in-house software solutions into standalone products ▪ This trend has been increasingly popular as IT consulting companies look to separate the one-time, project-based revenue lines and higher value recurring revenue lines in order to take advantage of embedded value/multiple arbitrage ▪ Salesforce’s acquisition of Mulesoft in March 2018 represented one of the largest SaaS transactions in the last 12 months − Salesforce paid a 36% premium relative to Mulesoft’s trading value prior to the announcement of the transaction INFORMATION TECHNOLOGY SAAS KEY OBSERVATIONS 5.9x 5.3x 4.4x 6.5x 6.6x 6.3x 7.1x 7.0x 69% 69% 70% 71% 71% 72% 72% 73% 40% 51% 53% 57% 36% 30% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth(1) Date Announced Target Acquirer Deal Size EV / Rev Multiple 03/22/18 Cynosure Zensar Technologies $33.3 1.65x 03/20/18 MuleSoft Salesforce $6,500.0 21.24x 12/12/17 Black Duck Synopsys $547.1 7.29x 11/27/16 Appirio Wipro $499.9 2.50x Average EV/Rev Multiple over last five years: 5.49x
  17. 17. 17 RELEVANT TRANSACTIONS SCM / ERP TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. SCM / ERP SaaS include the following company tickers: KXS, AMBR, SPSC, APPN, UPLD, MODN. ▪ Currently, the SCM/ERP SaaS businesses in the index are trading at 5.9x EV/Revenue, growing revenue at an average of 22% YoY and averaging a gross margin of 62% ▪ The SCM / ERP space has been particularly active for private transactions within the past few quarters ▪ Workforce management solutions have been acquired by larger strategics who are able to leverage the product offering to cross-sell existing e-commerce, BI and CRM solutions ▪ Vertically-focused SCM and ERP companies have gained the most traction, as legacy industries like manufacturing and transportation have begun to aggressively incorporate software ▪ As one of the most mature sub-vertical in SaaS, the level of profitability has become more important as average top-line growth rates have fallen into the mid teens SCM & ENTERPRISE RESOURCE PLANNING SAAS KEY OBSERVATIONS 4.3x 5.0x 4.4x 4.9x 5.8x 6.1x 6.0x 5.9x 59% 59% 60% 61% 61% 62% 62% 62% 16% 15% 16% 17% 19% 21% 20% 22% 10% 20% 30% 40% 50% 60% 70% 80% 3.0x 3.5x 4.0x 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x 7.5x 8.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 03/06/18 CommerceHub GTCR, Sycamore Partners $1,075.7 9.72x 12/28/17 BravoSolution Jaggaer, Accel-KKR $217.8 2.75x 11/30/17 Power Advocate Verisk Analytics $280.0 7.78x 11/17/17 Exa Dassault Systemes $347.5 4.79x Average EV/Rev Multiple over last five years: 5.69x
  18. 18. 18 RELEVANT TRANSACTIONS SECURITY TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Security SaaS include the following company tickers: ALRM, VRNS, ZIXI, PFPT, FEYE, QLYS, MIME, MOBL. ▪ Currently, the Security SaaS businesses in the index are trading at 6.1x EV/Revenue, growing revenue at an average of 21% YoY and averaging a gross margin of 76% ▪ Security software companies are often divided into companies with legacy products and companies with disruptive solutions ▪ Legacy products have lower growth rates and significantly lower valuations than companies with disruptive solutions ▪ This trend holds for acquisitions; companies with legacy products like Sotera, which provides SaaS-based security solutions for law- enforcement, transact at low single-digit multiple, while companies like Cloudlock transact at double-digit multiples as legacy players like Cisco seek to acquire disruptive technologies that expand and enhance their product offerings SECURITY SAAS KEY OBSERVATIONS 4.0x 4.8x 4.2x 4.8x 5.4x 5.5x 5.3x 6.1x 75% 75% 75% 75% 76% 76% 76% 76% 24% 24% 22% 22% 22% 21% 21% 21% 10% 20% 30% 40% 50% 60% 70% 80% 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 02/26/18 Cofense BlackRock, Pamplona $400.0 4.00x 02/12/18 Barracuda Networks Thoma Bravo $1,600.0 3.97x 12/27/17 Gigamon Elliott Management $1,456.4 4.81x 12/12/17 Black Duck Synopsys $547.1 7.29x Average EV/Rev Multiple over last five years: 7.20x
  19. 19. 19 RELEVANT TRANSACTIONS VERTICALLY-FOCUSED TRADING & PRECEDENT MULTIPLES ▪ Currently, the vertically-focused SaaS businesses in the index are trading at 7.4x EV/Revenue, growing revenue at an average of 25% YoY and averaging a gross margin of 63% ▪ Vertically-focused SaaS companies trade at a wide range of multiples, usually based on the size of their total addressable market (TAM), sales cycle, customer acquisition costs and ACV ▪ Growth rates for vertically-focused SaaS are usually lower given a limited TAM, but high retention rates lift multiples to in-line with SaaS Index averages ▪ Of the transactions analyzed by Leonis, vertically-focused marketplace and reservation companies transacted at the highest multiples of all vertically-focused SaaS sub-sectors in 2017 VERTICALLY-FOCUSED SAAS KEY OBSERVATIONS 6.0x 6.4x 5.9x 6.5x 7.1x 7.0x 6.8x 7.4x 62% 62% 63% 63% 63% 63% 63% 63% 28% 27% 27% 27% 27% 26% 25% 25% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Vertically-Focused SaaS include the following company tickers: VEEV, MDSO, ATHN, TWOU, APPF, RP, ELLI, WAGE, HSTM, CSLT, EBIX, MB. Date Announced Target Acquirer Deal Size EV / Rev Multiple 03/06/18 CommerceHub GTCR, Sycamore Partners $1,075.7 9.72x 02/14/18 Dealer Inspire Cars.com $165.0 4.02x 02/14/18 Utopus Insights Vestas Wind Systems $100.2 10.00x 02/02/18 e-Builder Trimble $500.0 8.00x Average EV/Rev Multiple over last five years: 5.20x
  20. 20. APPENDIX 20 I. SAAS INDEX TRADING INFORMATION
  21. 21. TRADING METRICS - SAAS 21 Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV / Rev / Growth P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG Salesforce $116.30 $85,238.6 (0.6x) 6.61x 5.54x 0.27x 0.22x NM NM NA ServiceNow $165.45 $27,896.1 30.0x 10.69x 8.32x 0.27x 0.21x NM NM NA Workday $127.11 $26,239.2 (2.3x) 9.28x 7.54x 0.26x 0.21x NM NM NA Splunk $98.39 $14,171.5 2.5x 8.16x 6.55x 0.24x 0.19x NM NM NA Shopify $124.59 $13,072.5 4.3x 12.24x 8.96x 0.17x 0.12x NM NM NA Dropbox $31.25 $12,141.2 (3.2x) 9.10x 7.89x 0.29x 0.25x NM NM NA Atlassian $53.92 $12,113.6 10.4x 11.70x 10.44x 0.30x 0.26x NM NM NA Veeva Systems $73.02 $10,398.3 (1.9x) 11.94x 10.11x 0.46x 0.39x 79.4x 71.2x 2.74x Nutanix $49.11 $7,877.0 0.6x 6.08x 5.57x 0.12x 0.11x NM NM NA Ultimate Software Group $243.70 $7,450.8 (1.8x) 6.55x 5.57x 0.32x 0.27x NM 90.4x 4.43x Tableau Software $80.82 $6,457.7 4.3x 5.77x 5.10x 0.95x 0.84x NM NM NA Paycom Software $107.39 $6,342.9 (0.1x) 9.65x 7.79x 0.31x 0.25x 95.0x 47.7x 1.51x LogMeIn $115.55 $5,853.9 (1.0x) 4.90x 4.58x 0.03x 0.02x 59.9x 72.2x 0.37x Proofpoint $113.65 $5,676.4 3.3x 7.98x 6.23x 0.21x 0.17x NM NM NA Athenahealth $143.03 $5,644.2 0.7x 4.26x 3.86x 0.34x 0.30x NM 46.7x 3.68x RingCentral $63.50 $4,995.7 18.9x 7.59x 6.19x 0.24x 0.19x NM NM NA Zendesk $47.87 $4,990.6 1.2x 8.43x 6.58x 0.22x 0.17x NM NM NA Blackbaud $101.81 $4,894.8 2.9x 6.02x 5.49x 0.77x 0.70x 73.8x 63.6x 8.09x 2U $84.03 $4,429.7 19.6x 10.47x 7.89x 0.27x 0.20x NM NM NA RealPage $51.50 $4,246.1 5.9x 5.74x 5.16x 0.32x 0.29x NM 81.7x 4.52x HubSpot $108.30 $4,067.9 (8.5x) 7.99x 6.44x 0.21x 0.17x NM NM NA New Relic $74.12 $4,019.5 3.2x 8.89x 7.11x 0.25x 0.20x NM NM NA Okta $39.85 $4,005.2 1.2x 11.10x 8.37x 0.18x 0.13x NM NM NA j2 Global $78.92 $3,795.3 1.6x 3.63x 3.42x 0.13x 0.12x 27.9x 19.6x 0.70x Source: Pitchbook and Leonis Proprietary Transaction Database.
  22. 22. TRADING METRICS – SAAS (CONTINUED) 22 Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV / Rev / Growth P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG Medidata Solutions $62.81 $3,702.7 1.5x 5.64x 4.81x 0.32x 0.27x 84.9x 55.8x 3.15x Twilio $38.18 $3,527.1 2.1x 6.34x 5.10x 0.14x 0.12x NM NM NA Wix.com $79.55 $3,430.2 2.0x 5.57x 4.43x 0.12x 0.09x NM NM NA FireEye $16.93 $3,224.2 (4.0x) 3.79x 3.50x 0.73x 0.68x NM NM NA Ellie Mae $91.94 $3,153.6 (2.0x) 5.82x 4.91x 0.37x 0.31x 62.1x 79.9x 5.07x Cloudera $21.58 $3,136.2 0.1x 6.37x 5.35x 0.16x 0.13x NM NM NA Qualys $72.75 $2,810.2 (1.5x) 9.10x 7.74x 0.55x 0.47x 72.0x 86.3x 5.19x Box $20.55 $2,780.5 1.1x 4.45x 3.66x 0.16x 0.14x NM NM NA Paylocity $51.23 $2,694.9 (4.5x) 6.27x 5.71x 0.24x 0.22x NM 96.7x 3.76x Coupa Software $45.62 $2,473.2 7.2x 9.88x 7.95x 0.25x 0.20x NM NM NA Ebix $74.50 $2,360.0 2.7x 6.27x 5.88x 0.28x 0.27x 23.5x 16.9x 0.77x Cornerstone OnDemand $39.11 $2,241.7 (3.9x) 6.62x 3.97x 0.48x 0.29x NM NM NA MongoDB $43.40 $2,195.0 0.7x 9.18x 6.77x 0.18x 0.13x NM NM NA The Trade Desk $49.62 $2,142.0 (1.8x) 4.98x 3.99x 0.10x 0.08x 43.1x 34.9x 0.67x BlackLine $39.21 $2,095.5 1.7x 8.87x 7.13x 0.20x 0.16x NM NM NA Alteryx $34.14 $2,006.0 8.3x 10.23x 7.76x 0.19x 0.15x NM NM NA Mimecast $35.43 $2,003.8 (3.8x) 6.29x 5.26x 0.15x 0.13x NM NM NA Q2 Holdings $45.55 $1,891.3 4.8x 7.61x 6.20x 0.26x 0.21x NM NM NA Mindbody $38.90 $1,817.3 38.9x 6.86x 5.50x 0.22x 0.18x NM NM NA WageWorks $45.20 $1,753.9 (6.0x) 2.11x 1.95x 0.06x 0.06x NM 30.7x 0.93x Alarm.com $37.74 $1,734.3 (0.4x) 4.48x 3.99x 0.15x 0.13x 64.0x 42.4x 1.42x Five9 $29.79 $1,717.5 (5.0x) 7.28x 6.20x 0.31x 0.26x NM NM NA Varonis Systems $60.50 $1,711.4 5.5x 5.99x 5.07x 0.19x 0.16x NM NM NA Kinaxis $64.27 $1,628.6 (5.0x) 9.16x 7.44x 0.61x 0.50x 83.5x 71.4x 4.77x Source: Pitchbook and Leonis Proprietary Transaction Database.
  23. 23. TRADING METRICS – SAAS (CONTINUED) 23 Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV / Rev / Growth P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG Hortonworks $20.37 $1,538.2 0.3x 4.49x 3.61x 0.11x 0.09x NM NM NA Appian $25.18 $1,517.3 2.6x 7.21x 6.03x 0.22x 0.18x NM NM NA Talend $48.12 $1,452.0 2.9x 6.79x 5.30x 0.17x 0.13x NM NM NA AppFolio $40.85 $1,393.8 (1.2x) 7.44x 6.05x 0.21x 0.17x NM 97.3x 2.69x Instructure $42.15 $1,276.0 0.8x 5.96x 4.68x 0.14x 0.11x NM NM NA Apptio $28.34 $1,189.0 2.7x 4.67x 3.93x 0.27x 0.23x NM NM NA Yext $12.65 $1,186.6 0.6x 4.85x 3.68x 0.13x 0.10x NM NM NA SPS Commerce $64.07 $1,105.3 (6.2x) 3.88x 3.53x 0.28x 0.25x NM 68.5x 4.86x Everbridge $36.60 $1,002.3 0.8x 6.93x 5.52x 0.19x 0.15x NM NM NA Workiva $23.70 $983.3 1.0x 3.94x 3.47x 0.24x 0.21x NM NM NA TrueCar $9.46 $954.2 9.3x 2.17x 1.90x 0.13x 0.12x NM NM NA LivePerson $16.35 $944.0 (5.9x) 3.70x 3.33x NM NM NM NM NA Tabula Rasa Healthcare $38.80 $796.1 (1.1x) 4.15x 3.41x 0.10x 0.08x 51.1x 63.6x 1.48x HealthStream $24.83 $791.4 (3.3x) 2.87x 2.78x 0.30x 0.29x 80.1x 73.0x 7.61x Benefitfocus $24.40 $758.2 (66.6x) 3.22x 2.87x 0.32x 0.29x NM NM NA Upland Software $28.79 $581.7 5.6x 5.04x 4.72x 0.16x 0.15x NM NM NA Model N $18.05 $516.0 (0.4x) 3.43x 3.24x 0.12x 0.11x NM NM NA MobileIron $4.95 $492.7 1.7x 2.06x 1.88x 0.27x 0.25x NM NM NA Castlight Health $3.65 $466.7 1.0x 2.47x 2.08x 0.08x 0.07x NM NM NA ChannelAdvisor $9.10 $244.8 7.3x 1.49x 1.40x 0.18x 0.17x NM NM NA Amber Road $8.90 $243.2 (2.2x) 3.00x 2.72x 0.37x 0.34x NM NM NA Zix $4.27 $231.1 (2.5x) 2.91x 2.71x 0.32x 0.30x NM 20.8x 2.27x Average $5,198.8 1.1x 6.38x 5.28x 0.26x 0.22x 64.3x 60.5x 3.21x Median $2,300.9 0.8x 6.27x 5.28x 0.24x 0.19x 68.0x 66.1x 2.94x Source: Pitchbook and Leonis Proprietary Transaction Database.
  24. 24. OPERATING STATISTICS – SAAS 24 Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross CFO Salesforce $85,238.6 $2,543.5 $2,020.3 $82,737.2 2.3% $10,480.0 24.9% 24.9% 73.5% 19.0% ServiceNow $27,896.1 $726.5 $1,173.4 $27,290.2 4.0% $1,933.0 39.0% 41.5% 74.1% 20.3% Workday $26,239.2 $1,134.4 $1,491.4 $24,462.7 5.4% $2,143.1 36.1% 39.6% 70.6% 14.6% Splunk $14,171.5 $545.9 $0.0 $13,006.3 0.0% $1,270.8 33.8% 41.3% 79.8% 8.2% Shopify $13,072.5 $141.7 $0.0 $12,134.4 0.0% $673.3 72.9% 85.8% 56.5% 3.4% Dropbox $12,141.2 $430.0 $208.8 $12,141.2 1.7% $1,106.8 31.0% 31.0% 66.7% 24.7% Atlassian $12,113.6 $310.9 $0.0 $11,434.5 0.0% $740.7 39.4% 35.9% 79.3% 13.5% Veeva Systems $10,398.3 $320.2 $0.0 $9,636.3 0.0% $685.6 26.0% 29.8% 69.2% 26.6% Nutanix $7,877.0 $610.4 $415.7 $7,374.4 5.0% $980.2 52.6% 82.0% 59.4% (13.3%) Ultimate Software Group $7,450.8 $155.7 $14.2 $7,299.8 0.2% $940.7 20.4% 23.0% 62.4% 20.6% Tableau Software $6,457.7 $627.9 $0.0 $5,603.0 0.0% $877.1 6.1% 28.6% 87.1% 6.9% Paycom Software $6,342.9 $46.1 $35.3 $5,243.0 0.6% $433.0 31.6% 42.1% 83.4% 22.9% LogMeIn $5,853.9 $252.4 $0.0 $5,601.5 0.0% $989.8 194.5% 64.6% 79.5% 20.4% Proofpoint $5,676.4 $286.1 $197.9 $5,542.7 3.4% $515.3 37.2% 38.1% 72.2% 14.2% Athenahealth $5,644.2 $165.1 $272.8 $5,751.9 4.6% $1,220.3 12.7% 17.5% 52.6% 19.8% RingCentral $4,995.7 $181.2 $0.0 $4,814.5 0.0% $501.5 32.1% 31.6% 75.8% 5.2% Zendesk $4,990.6 $109.4 $0.0 $4,743.7 0.0% $430.5 38.0% 50.2% 70.4% 1.2% Blackbaud $4,894.8 $29.8 $438.2 $5,303.2 8.2% $788.3 7.9% 11.8% 54.1% 20.4% 2U $4,429.7 $223.4 $0.0 $4,206.3 0.0% $286.8 39.3% 37.5% 82.3% 3.2% RealPage $4,246.1 $69.3 $648.6 $4,825.3 13.3% $671.0 18.1% 18.4% 59.2% 16.1% HubSpot $4,067.9 $87.7 $298.4 $3,862.0 6.8% $375.6 38.6% 48.0% 79.8% 5.7% New Relic $4,019.5 $125.2 $0.0 $3,786.5 0.0% $329.9 36.0% 50.5% 81.7% (2.2%) Okta $4,005.2 $127.9 $0.0 $3,775.5 0.0% $260.0 62.2% 85.1% 68.9% (11.1%) j2 Global $3,795.3 $350.9 $1,001.9 $4,446.3 20.9% $1,117.8 27.9% 23.1% 84.6% 25.3% Source: Pitchbook and Leonis Proprietary Transaction Database.
  25. 25. OPERATING STATISTICS – SAAS (CONTINUED) 25 Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross CFO Medidata Solutions $3,702.7 $237.3 $370.9 $3,589.3 9.1% $545.5 17.7% 17.6% 76.8% 21.5% Twilio $3,527.1 $115.3 $0.0 $3,236.2 0.0% $399.0 43.9% 65.0% 54.2% 1.4% Wix.com $3,430.2 $85.2 $1.2 $3,313.5 0.0% $425.6 46.7% 44.2% 83.7% (0.6%) FireEye $3,224.2 $180.9 $779.6 $3,107.0 19.5% $751.1 5.2% 20.8% 64.2% 1.2% Ellie Mae $3,153.6 $137.7 $0.0 $2,912.5 0.0% $417.0 15.8% 37.2% 61.4% 24.7% Cloudera $3,136.2 $43.2 $0.0 $2,765.1 0.0% $367.4 40.8% 49.9% 57.0% (19.4%) Qualys $2,810.2 $86.6 $0.0 $2,521.8 0.0% $230.8 16.6% 20.0% 77.7% 31.6% Box $2,780.5 $208.1 $85.8 $2,658.2 3.0% $506.1 27.0% 32.7% 73.3% 0.7% Paylocity $2,694.9 $111.0 $0.0 $2,583.9 0.0% $328.3 25.7% 37.5% 58.3% 13.3% Coupa Software $2,473.2 $412.9 $163.0 $2,223.3 6.2% $186.8 39.6% 54.3% 67.9% (0.9%) Ebix $2,360.0 $63.9 $409.1 $2,721.9 14.8% $364.0 22.0% 19.3% 64.4% 27.8% Cornerstone OnDemand $2,241.7 $393.6 $533.2 $2,211.8 19.2% $482.0 13.9% 22.3% 70.4% 14.9% MongoDB $2,195.0 $61.9 $0.0 $1,916.0 0.0% $154.5 52.4% 15.6% 72.3% (34.4%) The Trade Desk $2,142.0 $156.0 $27.0 $2,013.0 1.2% $308.2 51.9% 90.6% 78.5% 20.0% BlackLine $2,095.5 $31.1 $0.4 $1,983.3 0.0% $177.0 43.8% 50.7% 76.6% 1.2% Alteryx $2,006.0 $119.7 $0.3 $1,832.3 0.0% $131.6 53.4% 51.3% 83.4% (2.1%) Mimecast $2,003.8 $76.0 $40.9 $1,915.8 2.0% $240.9 40.9% 28.3% 73.9% 3.4% Q2 Holdings $1,891.3 $58.0 $0.0 $1,791.6 0.0% $194.0 29.1% 34.8% 48.7% 7.3% Mindbody $1,817.3 $232.0 $14.9 $1,600.2 0.8% $182.6 31.4% 37.7% 71.6% 3.8% WageWorks $1,753.9 $798.3 $244.8 $1,106.4 12.2% $461.7 33.1% 23.6% 63.3% 74.3% Alarm.com $1,734.3 $96.3 $71.0 $1,709.0 3.9% $338.9 29.8% 26.5% 65.7% 16.1% Five9 $1,717.5 $68.9 $46.7 $1,695.3 2.6% $200.2 23.5% 24.8% 58.5% 5.3% Varonis Systems $1,711.4 $56.7 $0.0 $1,574.8 0.0% $217.4 32.2% 29.0% 90.4% 3.6% Kinaxis $1,628.6 $158.4 $0.0 $1,470.2 0.0% $133.3 15.0% 23.9% 70.2% 22.6% Source: Pitchbook and Leonis Proprietary Transaction Database.
  26. 26. OPERATING STATISTICS – SAAS (CONTINUED) 26 Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross CFO Hortonworks $1,538.2 $62.7 $0.0 $1,465.7 0.0% $261.8 41.9% 78.5% 69.0% (25.1%) Appian $1,517.3 $73.8 $0.0 $1,443.6 0.0% $176.7 33.0% 25.7% 63.5% (8.3%) Talend $1,452.0 $87.0 $1.2 $1,366.2 0.1% $148.6 40.2% 33.4% 77.0% (10.4%) AppFolio $1,393.8 $16.1 $0.0 $1,347.8 0.0% $143.8 36.2% 44.5% 61.6% 15.8% Instructure $1,276.0 $35.7 $0.0 $1,234.6 0.0% $158.8 43.2% 53.0% 70.8% (13.2%) Apptio $1,189.0 $55.1 $0.0 $1,040.1 0.0% $188.5 17.4% 20.9% 68.9% (1.5%) Yext $1,186.6 $34.4 $0.0 $1,068.3 0.0% $170.2 37.0% 41.6% 74.1% (17.2%) SPS Commerce $1,105.3 $123.1 $0.0 $941.9 0.0% $220.6 14.1% 19.9% 66.6% 14.3% Everbridge $1,002.3 $102.8 $89.5 $946.1 8.2% $104.4 35.8% 35.0% 69.8% (0.2%) Workiva $983.3 $60.3 $19.6 $926.2 2.0% $207.9 16.4% 22.6% 71.0% (10.0%) TrueCar $954.2 $197.8 $29.1 $785.6 3.0% $323.1 16.4% 16.1% 91.3% 5.9% LivePerson $944.0 $56.1 $0.0 $887.9 0.0% $218.9 (1.8%) 1.4% 73.4% 3.0% Tabula Rasa Healthcare $796.1 $10.4 $1.7 $787.4 0.2% $134.5 43.0% 40.6% 30.4% 8.7% HealthStream $791.4 $84.8 $0.0 $660.3 0.0% $247.7 9.6% 13.2% 57.2% 16.7% Benefitfocus $758.2 $55.3 $115.3 $818.2 13.2% $256.7 10.0% 23.2% 51.6% 5.5% Upland Software $581.7 $22.3 $111.1 $670.5 16.0% $98.0 31.0% 14.9% 65.6% 2.3% Model N $516.0 $48.3 $57.4 $525.1 10.0% $142.2 28.6% 20.0% 54.9% (15.6%) MobileIron $492.7 $85.8 $0.0 $400.1 0.0% $176.5 7.7% 10.1% 82.7% (9.6%) Castlight Health $466.7 $61.3 $5.0 $378.3 1.1% $131.4 29.2% 42.3% 64.1% (11.8%) ChannelAdvisor $244.8 $53.4 $0.6 $192.0 0.3% $122.5 8.2% 13.0% 78.8% 1.5% Amber Road $243.2 $9.4 $22.4 $256.2 8.4% $79.1 8.1% 6.8% 52.3% (1.0%) Zix $231.1 $33.0 $0.0 $198.1 0.0% $65.7 9.2% 9.3% 80.8% 23.5% Average $213.7 $163.7 $4,968.8 3.3% $589.6 31.8% 34.6% 69.4% 7.1% Median $106.1 $1.2 $2,217.6 0.1% $315.7 31.2% 31.3% 70.4% 5.4% Source: Pitchbook and Leonis Proprietary Transaction Database.

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