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Robert Koven Leonis Partners 4th Quarter 2017 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 4th Quarter 2017 SAAS Analysis

  1. 1. LEONIS PARTNERS: 4TH QUARTER 2017 SAAS ANALYSIS ANALY SIS OF SAAS VALUATIONS & KEY DRIVERS IN PUBLIC AND PRIVATE MARKETS
  2. 2. LEONIS PARTNERS EXPERIENCED SAAS ADVISORS ▪ 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 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 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 Has Acquired $100,000,000 Has Acquired Has Been Recapitalized Equity Capital Raise $20,000,000 Equity Capital Raise Debt Capital Raise Has Acquired LEONIS CREDENTIALS & SERVICES Has Been Acquired By
  3. 3. LEONIS SAAS INDEX Q4 2017 INDEX SUMMARY ▪ Leonis’s proprietary SaaS index is comprised of 72 publicly traded software companies that offer their services through a subscription-based pricing model ▪ The Leonis SaaS Index is an equally-weighted index ▪ In 4Q17, EV / Revenue valuations eased slightly but remain near all-time-highs ▪ Interestingly, this corresponded to a bit of a deterioration in top-line growth rates. This is a trend Leonis will be monitoring as we move through 2018 ▪ Multiple expansion was largely driven by overall market gains, with the Nasdaq rising 6.3% for the quarter and 27.2% for the year ▪ Despite a steep sell-off in early 2016, SaaS companies have significantly and consistently outperformed the broader tech market over the past two years ▪ 17 of the 72 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 ▪ Industry multiples have evolved since low point in 2016 to be driven by a combination of growth and profitability 3 SAAS INDEX PERFORMANCE MULTIPLES & GROWTH RATES OVER TIMETHE LEONIS SAAS INDEX Source: Pitchbook, Leonis Proprietary Transaction Database, Federal Reserve Economic Data. Note: Market Data as of 12/31/2017. (25.0%) (5.0%) 15.0% 35.0% 55.0% 75.0% Leonis SaaS Index Nasdaq Index 4.97x 5.51x 6.45x 5.28x 6.10x 6.72x 6.81x 6.67x 35% 32% 31% 30% 32% 34% 34% 31% 20% 30% 40% 50% 60% 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Avg. EV/Rev Multiple Avg. YoY Growth Rate
  4. 4. LEONIS SAAS INDEX SUMMARY METRICS 4 SAAS SUB-VERTICALSSUMMARY METRICS Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. Index Averages 4Q16 1Q17 2Q17 3Q17 4Q17 EV / LTM Revenue 5.28x 6.10x 6.72x 6.81x 6.67x EV / NTM Revenue 3.97x 4.93x 5.71x 5.33x 5.32x LTM Revenue Growth 30.2% 32.3% 34.4% 34.2% 31.3% Gross Profit Margin 68.4% 68.8% 68.8% 69.0% 69.0% EV / LTM CFO 241.5x 79.6x 114.6x 103.7x 104.0x CFO Margin -0.1% 2.0% 3.9% 5.1% 5.1% CFO $46.3 $56.3 $65.0 $70.4 $74.3 EV / LTM EBITDA 129.0x 420.7x 476.1x 176.9x 156.0x EBITDA Margin (10.2%) (8.3%) (7.9%) (7.1%) (6.2%) EBITDA ($11.3) ($5.9) ($5.3) ($2.4) $1.7 Total Revenue $426.9 $456.5 $486.4 $515.6 $549.3 METRIC EV / LTM Rev. Averages 4Q16 1Q17 2Q17 3Q17 4Q17 Back-Office 5.95x 6.54x 7.54x 7.63x 7.01x Comm. & Collaboration 6.06x 7.33x 7.49x 7.69x 7.89x Customer Relations 5.59x 6.74x 7.34x 7.42x 7.49x Data & Analytics 4.73x 5.74x 6.50x 6.90x 7.28x FinTech & E-Commerce 5.72x 6.56x 7.11x 7.24x 6.37x HCM 6.41x 7.25x 7.93x 8.07x 7.93x HealthTech 4.93x 5.04x 5.81x 5.43x 4.89x IT 4.35x 6.49x 6.55x 6.28x 7.20x SCM / ERP 4.37x 4.88x 5.81x 6.06x 5.98x Security 4.25x 4.76x 5.40x 5.45x 5.26x Vertically-Focused 5.88x 6.52x 7.12x 6.99x 6.73x 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 ▪ 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 12/31/2017. 4.84x 4.32x 4.95x 7.05x 7.99x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x <10% 10-20% 20-30% 30-40% >40% EV/Revenue CFO Margin + Revenue Growth Rate 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% (40%) (30%) (20%) (10%) 0% 10% 20% 30% 40% RevenueGrowth(%) CFO Margin (%) 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/ Revenue with average growth rates centered around 29% at this multiple range alongside their respective avg. YoY growth rates ▪ Regression of bucketed average growth rates exhibits direct correlation, with an R-squared of .79, 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 12/31/2017. EV / REV MULTIPLE VS. TOP- LINE GROWTH 3 12 18 19 9 8 3 5% 15% 41% 29% 36% 36% 56% y = 0.2166ln(x) + 0.0472 R² = 0.794 0% 10% 20% 30% 40% 50% 60% 0 4 8 12 16 20 <2x 2-4x 4-6x 6-8x 8-10x 10-12x >12x Median Rev YoY Growth Log. (YoY Growth)
  7. 7. VALUATIONS AROUND BREAKEVEN ▪ Of the 72 companies in the Leonis SaaS Index, only 49 produced positive CFO (cash from operations) in 4Q17 ▪ The median EV / Rev multiple of companies with positive CFO is 6.57x vs. the those with negative CFO, which trade at a median multiple of 6.11x 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 won’t fully account for • 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 12/31/2017. 6.57x 6.11x 27.3% 38.2% 0% 10% 20% 30% 40% 50% 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 12/31/2017. Back-Office SaaS includes the following company tickers: WK, WIX, NTNX, BL, OKTA, WDAY, MODN. ▪ Currently, the Back-Office SaaS businesses in the index are trading at 7.0x EV/Revenue, growing at an average of 41% year-over-year (YoY) 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 ▪ Both transaction and trading multiples remain at near all-time highs ▪ 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 Date Announced Target Acquirer Deal Size EV / Rev Multiple 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 07/26/17 Evidon Crownpeak Tech, K1 Capital $50.0 2.44x Average EV/Rev Multiple over last five years: 6.10x 5.1x 5.4x 6.3x 5.9x 6.5x 7.5x 7.6x 7.0x 66% 67% 67% 68% 68% 69% 68% 69% 34% 32% 30% 33% 36% 50% 48% 41% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  10. 10. 10 RELEVANT TRANSACTIONS COMMUNICATION & COLLABORATION TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. Communications & Collaboration SaaS include the following company tickers: JCOM, RNG, EVBG, TWLO, BOX, APPN, TEAM. ▪ Currently, the Communication & Collaboration SaaS businesses in the index are trading at a 7.9x EV/Revenue, growing revenue at an average of 51% YoY and averaging a gross margin of 67% ▪ Following its IPO, Twilio’s share price nearly tripled within its first three months as a public company; the peak was followed by a correction to near-IPO levels ▪ Groups like LogMeIn continue to show extreme 100% YoY growth and are correspondingly trading at 11.00x revenue at the publication of this report COMMUNICATION & COLLABORATION SAAS Date Announced Target Acquirer Deal Size EV / Rev Multiple 04/17/17 Eliza Hms Holdings $172.0 2.87x 01/19/17 IntraLinks Synchronoss Technologies $773.1 2.66x 11/14/16 Apptix Fusion Telecomm. $25.3 1.13x 08/08/16 Quip Salesforce $750.0 25.00x Average EV/Rev Multiple over last five years: 7.29x KEY OBSERVATIONS 5.4x 5.6x 6.6x 6.1x 7.3x 7.5x 7.7x 7.9x 66% 66% 66% 66% 66% 66% 67% 67% 40% 33% 44% 33% 36% 41% 49% 51% 20% 30% 40% 50% 60% 70% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  11. 11. 11 RELEVANT TRANSACTIONS CUSTOMER RELATIONS TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. 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 a 7.5x EV/Revenue, growing revenue at an average of 26% YoY and averaging a gross margin of 71% ▪ One of the more mature sectors in SaaS, Customer Relations is seeing a slowdown from peak growth rates - Corresponding to this maturation, companies are focusing on bottom-line, resulting in margin expansion ▪ Within the vertical, top-line growth remains 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 Date Announced Target Acquirer Deal Size EV / Rev Multiple 10/02/17 Velocify Ellie Mae $128.0 2.83x 07/12/17 The Experience Engine Accesso Technology $81.0 6.38x 04/25/17 TeleSign BICS $230.0 2.30x 01/09/17 Avention Dun & Bradstreet $150.0 2.50x Average EV/Rev Multiple over last five years: 7.08x 5.3x 6.0x 6.8x 5.6x 6.7x 7.3x 7.4x 7.5x 67% 67% 68% 69% 70% 70% 70% 71% 33% 32% 31% 29% 29% 28% 29% 26% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  12. 12. 12 RELEVANT TRANSACTIONS DATA & ANALYTICS TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. Data & Analytics SaaS include the following company tickers: NEWR, CLDR, TLND, SPLK, AYX, DATA, MDSO, RP, BV, TTD, MDB. ▪ Currently, the Data & Analytics SaaS businesses in the index are trading at a 7.3x EV/Revenue, growing revenue at an average of 36% YoY and averaging a gross margin of 73% ▪ Data & Analytics has matured more than a number of other SaaS verticals and tends to exhibit mid 30s% YoY growth rates common to larger, more mature SaaS offerings ▪ Over the last couple years, this vertical has been highly volatile: - Key drivers include Tableau substantially missing top-line growth numbers in early 2016, triggering investors to grow more focused on profitability trends as opposed to previously using growth to drive valuation DATA & ANALYTICS SAAS KEY OBSERVATIONS Date Announced Target Acquirer Deal Size EV / Rev Multiple 12/26/17 Clavis Insight Ascential $139.6 8.83x 11/30/17 Power Advocate Verisk Analytics $280.0 7.78x 10/02/17 Velocify Ellie Mae $128.0 2.83x 02/24/17 Digitalglobe (DGI) MacDonald, Dettwiler $4,692.7 5.79x Average EV/Rev Multiple over last five years: 7.21x 4.7x 5.0x 5.9x 4.7x 5.7x 6.5x 6.9x 7.3x 73% 72% 72% 74% 74% 73% 73% 73% 33% 31% 29% 38% 43% 42% 42% 36% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  13. 13. 13 RELEVANT TRANSACTIONS FINTECH, E-COMMERCE & MARKETPLACE TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. FinTech, E-Commerce & Marketplace SaaS include the following company tickers: ECOM, SHOP, TRUE, BV, EBIX, QTWO, COUP, ELLI. ▪ Currently, the FinTech, E-Commerce & Marketplace SaaS businesses in the index are trading at a 6.4x EV/Revenue, growing revenue at an average of 25% YoY and averaging a gross margin of 67% ▪ Despite flat 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 FINTECH, E-COMMERCE & MARKETPLACE SAAS KEY OBSERVATIONS 5.1x 5.4x 6.0x 5.7x 6.6x 7.1x 7.2x 6.4x 66% 66% 66% 67% 67% 67% 67% 67% 35% 32% 30% 29% 32% 33% 27% 25% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 12/21/17 Ensenta Jack Henry and Associates $130.0 4.81x 12/18/17 Planet Payment Eurazeo, Fintrax Group $247.2 4.67x 12/05/17 TSheets.com Intuit $340.0 8.50x 10/10/17 GoSwiff Paynear Solutions $100.0 4.66x Average EV/Rev Multiple over last five years: 5.51x
  14. 14. 14 RELEVANT TRANSACTIONS HCM TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. HCM SaaS include the following company tickers: WDAY, ULTI, PAYC, CSOD, INST, PCTY, NOW, CALD. (1) Hamerman, Paul D. "The Forrester Wave™: SaaS Human Resource Management Systems, Q3 2017." Forrester. Forrester, 22 Aug. 2017. Web. ▪ Currently, the HCM SaaS businesses in the index are trading at a 7.9x EV/Revenue, growing revenue at an average of 28% YoY and averaging a gross margin of 69% ▪ HCM SaaS companies are among the highest valued companies in all of SaaS ▪ They’ve experienced extraordinary traction, with Forrester(1) concluding that 56% of installed HCM systems run on SaaS ▪ Valuation premium also reflects 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 Date Announced Target Acquirer Deal Size EV / Rev Multiple 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 05/26/15 HealthcareSource HR Francisco Partners $330.0 6.20x Average EV/Rev Multiple over last five years: 5.75x KEY OBSERVATIONS 7.3x 7.7x 8.2x 6.4x 7.2x 7.9x 8.1x 7.9x 67% 68% 68% 68% 68% 68% 69% 69% 39% 41% 39% 36% 32% 30% 29% 28% 20% 30% 40% 50% 60% 70% 80% 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  15. 15. 15 RELEVANT TRANSACTIONS HEALTHTECH TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. 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 a 4.9x EV/Revenue, growing revenue at an average of 22% YoY and averaging a gross margin of 58% ▪ Lower growth rates and 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 rates ▪ 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 Date Announced Target Acquirer Deal Size EV / Rev Multiple 04/17/17 Eliza Hms Holdings $172.0 2.87x 04/14/17 Entrada NextGen Healthcare $34.0 2.83x 08/08/16 Morrisey Associates Echo $48.0 3.75x 06/28/16 Change Healthcare McKesson $6,264.7 3.98x Average EV/Rev Multiple over last five years: 5.00x KEY OBSERVATIONS 4.6x 5.4x 5.4x 4.9x 5.0x 5.8x 5.4x 4.9x 55% 56% 56% 58% 58% 58% 58% 58% 27% 24% 23% 23% 23% 24% 24% 22% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  16. 16. 16 RELEVANT TRANSACTIONS IT TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. IT SaaS include the following company tickers: MULE, HDP, APTI, SPLK. ▪ 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 ▪ Few pureplay SaaS IT companies exist and their valuations are volatile, with companies like Apptio and Mulesoft gaining more than 40% the day of their IPOs, only to decline significantly thereafter INFORMATION TECHNOLOGY SAAS KEY OBSERVATIONS Date Announced Target Acquirer Deal Size EV / Rev Multiple 12/12/17 Black Duck Synopsys $547.0 7.29x 11/27/16 Appirio Wipro $500.0 2.50x 01/06/16 KrolLDiscovery Revolution, Carlyle $150.0 1.63x 04/24/15 Riverbed Technology Thoma Bravo $3,171.8 2.91x Average EV/Rev Multiple over last five years: 3.79x 5.9x 5.9x 5.3x 4.4x 6.5x 6.6x 6.3x 7.2x 68% 69% 70% 70% 71% 71% 72% 72% 40% 51% 53% 47% 35% 20% 30% 40% 50% 60% 70% 80% 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  17. 17. 17 RELEVANT TRANSACTIONS SCM / ERP TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. 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 a 6.0x EV/Revenue, growing revenue at an average of 20% YoY and averaging a gross margin of 61% ▪ 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 3.4x 4.3x 5.0x 4.4x 4.9x 5.8x 6.1x 6.0x 59% 59% 60% 60% 61% 61% 62% 61% 17% 16% 15% 16% 17% 19% 24% 20% 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 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 12/28/17 BravoSolution Accel-KKR, Jaggaer $215.9 2.30x 11/30/17 Power Advocate Verisk Analytics $280.0 7.78x 08/14/17 MacroPoint Descartes Systems Group $110.0 8.80x 01/27/17 PlanView Thoma Bravo $800.0 5.33x Average EV/Rev Multiple over last five years: 5.62x
  18. 18. 18 RELEVANT TRANSACTIONS SECURITY TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. 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 a 5.3x EV/Revenue, growing revenue at an average of 21% YoY and averaging a gross margin of 76% ▪ Security software companies are often divided into two categories: 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 Date Announced Target Acquirer Deal Size EV / Rev Multiple 04/04/17 Sotera Defense KeyW $235.0 1.04x 03/22/17 Invincea Sophos $120.0 12.24x 09/30/16 AVG Technologies AVAST Software $1,338.4 3.11x 08/01/16 CloudLock Cisco $293.0 22.20x Average EV/Rev Multiple over last five years: 6.57x KEY OBSERVATIONS 3.9x 4.0x 4.8x 4.2x 4.8x 5.4x 5.5x 5.3x 75% 75% 75% 75% 75% 76% 76% 76% 24% 24% 24% 22% 22% 22% 21% 21% 20% 30% 40% 50% 60% 70% 80% 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  19. 19. 19 RELEVANT TRANSACTIONS VERTICALLY-FOCUSED TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 12/31/2017. Vertically-Focused SaaS include the following company tickers: VEEV, MDSO, ATHN, TWOU, APPF, RP, ELLI, WAGE, HSTM, CSLT, EBIX, MB. ▪ Currently, the vertically-focused SaaS businesses in the index are trading at a 6.7x 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 Date Announced Target Acquirer Deal Size EV / Rev Multiple 11/17/17 Exa Dassault Systemes $347.5 4.79x 08/29/17 Ari Network Services True Wind Capital $140.0 2.65x 10/31/16 File & ServeXpress Strait Lane CP $55.0 3.06x 09/11/16 Exocad Carlyle $128.8 10.16x Average EV/Rev Multiple over last five years: 5.12x 5.2x 6.0x 6.4x 5.9x 6.5x 7.1x 7.0x 6.7x 61% 62% 62% 63% 63% 63% 63% 63% 32% 28% 27% 27% 27% 27% 26% 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 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 EV/Rev Gross Margin YoY Growth
  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 12/31/2017 Cap EBITDA CY2017E CY2018E CY2017E CY2018E CY2017E CY2018E PEG Salesforce $102.23 $73,840.7 0.1x 7.05x 5.87x 0.28x 0.23x NM NM NA ServiceNow $130.39 $22,518.4 (7.7x) 11.45x 8.76x 0.31x 0.23x NM NM NA Workday $101.74 $21,365.4 (0.7x) 9.41x 7.51x 0.26x 0.20x NM NM NA Splunk $82.84 $11,718.4 1.5x 8.77x 6.99x 0.26x 0.21x NM NM NA Atlassian $45.52 $10,474.3 37.6x 13.46x 10.22x 0.36x 0.27x NM NM NA Shopify $101.00 $10,028.4 4.3x 13.82x 9.51x 0.18x 0.12x NM NM NA Veeva Systems $55.28 $7,813.5 (1.9x) 10.55x 8.88x 0.38x 0.32x NM 64.3x 2.29x Ultimate Software Group $218.23 $6,519.8 (1.6x) 6.84x 5.75x 0.32x 0.27x NM NM NA LogMeIn $114.50 $6,032.0 (1.9x) 5.63x 5.04x 0.04x 0.03x NM 70.7x 0.48x Nutanix $35.28 $5,659.8 0.4x 5.81x 4.42x 0.10x 0.07x NM NM NA Tableau Software $69.20 $5,518.3 7.6x 5.27x 4.85x 0.41x 0.38x NM NM NA Athenahealth $133.04 $5,324.0 0.8x 4.52x 4.09x 0.37x 0.34x NM 77.3x 6.40x Paycom Software $80.33 $4,680.4 (0.4x) 10.76x 8.59x 0.33x 0.26x NM 65.8x 2.01x Blackbaud $94.49 $4,544.0 2.3x 6.16x 5.55x 0.71x 0.64x NM 75.6x 8.74x Proofpoint $88.81 $3,981.8 1.1x 7.66x 5.84x 0.20x 0.15x NM NM NA RingCentral $48.40 $3,743.8 16.2x 7.17x 5.78x 0.24x 0.19x NM NM NA Medidata Solutions $63.37 $3,704.7 1.7x 6.57x 5.58x 0.32x 0.27x NM 83.4x 4.01x RealPage $44.30 $3,671.6 3.1x 5.90x 4.75x 0.35x 0.28x NM 88.6x 5.23x j2 Global $75.03 $3,632.1 1.5x 3.78x 3.66x 0.14x 0.13x 24.0x 19.3x 0.71x Zendesk $33.84 $3,435.0 1.2x 7.52x 5.82x 0.20x 0.15x NM NM NA 2U $64.51 $3,368.9 11.6x 11.10x 8.01x 0.32x 0.23x NM NM NA HubSpot $88.40 $3,303.6 (3.8x) 8.38x 6.57x 0.21x 0.17x NM NM NA New Relic $57.77 $3,181.0 2.9x 9.01x 7.06x 0.24x 0.19x NM NM NA Ellie Mae $89.40 $3,087.5 (2.7x) 6.60x 5.51x 0.30x 0.25x 77.7x NM NA
  22. 22. TRADING METRICS – SAAS (CONTINUED) 22 Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV / Rev / Growth P/E Company 12/31/2017 Cap EBITDA CY2017E CY2018E CY2017E CY2018E CY2017E CY2018E PEG MuleSoft $23.26 $3,022.9 0.9x 9.77x 7.22x 0.10x 0.07x NM NM NA Box $21.12 $2,875.3 0.7x 5.61x 4.56x 0.20x 0.16x NM NM NA FireEye $14.20 $2,621.1 (4.4x) 3.38x 3.14x 1.25x 1.16x NM NM NA Okta $25.61 $2,610.3 1.4x 10.28x 7.27x 0.15x 0.11x NM NM NA Wix.com $57.55 $2,580.5 3.0x 5.80x 4.40x 0.12x 0.09x NM NM NA Ebix $79.25 $2,492.9 2.0x 7.80x 6.67x 0.44x 0.38x 27.7x 22.0x 1.25x Paylocity $47.16 $2,476.7 (3.3x) 7.12x 5.79x 0.27x 0.22x NM NM NA WageWorks $62.00 $2,457.5 (5.4x) 3.77x 3.42x 0.11x 0.10x NM 58.8x 1.77x Cloudera $16.52 $2,333.2 0.2x 5.84x 4.29x 0.07x 0.05x NM NM NA Qualys $59.35 $2,250.5 (1.6x) 8.47x 7.27x 0.54x 0.46x NM 78.1x 4.95x Twilio $23.60 $2,195.5 2.3x 4.94x 3.97x 0.10x 0.08x NM NM NA Cornerstone OnDemand $35.33 $2,045.7 (7.4x) 4.10x 3.97x 0.34x 0.33x NM NM NA CallidusCloud $28.65 $1,951.5 33.7x 7.13x 5.93x 0.33x 0.28x NM NM NA Appian $31.48 $1,898.3 3.0x 5.70x 9.67x 0.37x 0.63x NM NM NA The Trade Desk $45.73 $1,878.3 (1.6x) 5.77x 4.51x 0.10x 0.07x NM 39.8x 0.66x Alarm.com $37.75 $1,779.6 (0.3x) 5.29x 4.63x 0.18x 0.16x NM 59.9x 2.07x BlackLine $32.80 $1,736.3 0.9x 9.33x 7.23x 0.21x 0.16x NM NM NA Coupa Software $31.22 $1,718.6 6.4x 8.44x 6.80x 0.21x 0.17x NM NM NA Mimecast $28.67 $1,643.3 (7.2x) 6.57x 5.26x 0.17x 0.14x NM NM NA Kinaxis $61.10 $1,554.6 (5.9x) 10.51x 8.68x 0.60x 0.49x NM 76.4x 4.35x Q2 Holdings $36.85 $1,535.6 2.9x 7.46x 6.04x 0.22x 0.18x NM NM NA MongoDB $29.68 $1,501.3 0.8x 13.66x 8.80x 0.25x 0.16x NM NM NA Alteryx $25.27 $1,495.1 4.9x 10.39x 7.59x 0.11x 0.08x NM NM NA Mindbody $30.45 $1,422.1 33.6x 6.66x 5.31x 0.20x 0.16x NM NM NA
  23. 23. TRADING METRICS – SAAS (CONTINUED) 23 Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV / Rev / Growth P/E Company 12/31/2017 Cap EBITDA CY2017E CY2018E CY2017E CY2018E CY2017E CY2018E PEG Hortonworks $20.11 $1,418.4 0.3x 5.28x 4.18x 0.13x 0.10x NM NM NA AppFolio $41.50 $1,408.8 (0.8x) 9.63x 7.56x 0.26x 0.21x NM NM NA Five9 $24.88 $1,384.6 (4.7x) 6.94x 5.93x 0.30x 0.26x NM NM NA Varonis Systems $48.55 $1,351.6 3.9x 5.81x 4.89x 0.20x 0.17x NM NM NA TrueCar $11.20 $1,119.8 24.1x 2.96x 2.60x 0.17x 0.15x NM NM NA Yext $12.03 $1,097.5 0.5x 7.03x 4.96x NM NM NM NM NA Talend $37.48 $1,092.2 4.7x 6.71x 5.17x 0.16x 0.12x NM NM NA Instructure $33.10 $1,002.2 1.3x 5.98x 4.68x 0.13x 0.10x NM NM NA Apptio $23.52 $949.9 1.4x 4.38x 3.80x 0.23x 0.20x NM NM NA Workiva $21.40 $897.3 1.3x 4.06x 3.57x 0.25x 0.22x NM NM NA Benefitfocus $27.00 $844.4 159.8x 3.55x 3.24x 0.29x 0.26x NM NM NA Everbridge $29.72 $839.7 3.3x 7.64x 6.06x 0.22x 0.18x NM NM NA SPS Commerce $48.59 $836.9 (5.7x) 3.06x 2.76x 0.20x 0.18x NM 93.4x 5.98x HealthStream $23.16 $738.7 (1.8x) 2.49x 2.32x 0.27x 0.25x NM 79.9x 8.68x LivePerson $11.50 $684.5 18.1x 2.89x 2.70x NM NM NM NM NA Castlight Health $3.75 $501.5 0.7x 3.21x 2.58x 0.10x 0.08x NM NM NA Tabula Rasa Healthcare $28.05 $500.7 (15.5x) 4.11x 2.94x 0.11x 0.08x NM 72.9x 2.01x BazaarVoice $5.45 $469.2 (7.7x) 1.95x 1.86x 0.81x 0.77x NM NM NA Model N $15.75 $461.9 0.0x 3.41x 3.01x 0.15x 0.13x NM NM NA Upland Software $21.66 $450.0 31.3x 5.03x 4.02x 0.22x 0.18x NM NM NA MobileIron $3.90 $374.6 1.5x 1.68x 1.57x 0.23x 0.22x NM NM NA Zix $4.38 $244.2 (2.3x) 3.22x 2.99x 0.34x 0.32x 39.8x 25.8x 2.73x ChannelAdvisor $9.00 $239.1 6.0x 1.51x 1.38x 0.18x 0.16x NM NM NA Amber Road $7.34 $199.7 (1.8x) 2.71x 2.47x 0.30x 0.27x NM NM NA Average $4,171.3 4.9x 6.46x 5.29x 0.27x 0.23x 42.3x 64.0x 3.57x Median $1,998.6 0.9x 6.16x 5.17x 0.23x 0.19x 33.8x 71.8x 2.51x
  24. 24. OPERATING STATISTICS – SAAS 24 Market Enterprise Debt / LTM Revenue Growth 2017E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross CFO Salesforce $73,840.7 $2,071.8 $2,167.5 $72,379.5 2.9% $9,923.0 25.5% 25.1% 60.0% 19.7% ServiceNow $22,518.4 $1,104.9 $1,156.6 $22,003.1 4.9% $1,772.3 37.3% 42.7% 51.6% 3.3% Workday $21,365.4 $1,337.0 $1,473.4 $19,627.7 6.5% $1,995.1 36.8% 41.6% 52.0% 7.0% Splunk $11,718.4 $393.3 $0.0 $10,660.0 0.0% $1,157.5 34.0% 42.1% 62.4% 5.4% Atlassian $10,474.3 $305.9 $0.0 $9,860.8 0.0% $677.0 37.6% 42.3% 68.4% 18.0% Shopify $10,028.4 $119.8 $0.0 $9,101.8 0.0% $580.9 76.5% 102.6% 31.8% 0.1% Veeva Systems $7,813.5 $310.8 $0.0 $7,055.4 0.0% $650.8 28.1% 31.1% 55.4% 18.0% Ultimate Software Group $6,519.8 $125.7 $9.4 $6,391.2 0.1% $899.8 21.4% 23.1% 51.5% 19.9% LogMeIn $6,032.0 $262.1 $0.0 $5,756.0 0.0% $801.7 147.3% 57.0% 28.4% 5.2% Nutanix $5,659.8 $132.5 $0.0 $5,293.9 0.0% $875.6 60.4% 82.0% 48.3% (17.7%) Tableau Software $5,518.3 $790.9 $0.0 $4,575.0 0.0% $878.4 12.7% 35.7% 83.8% 9.6% Athenahealth $5,324.0 $122.7 $276.4 $5,477.7 4.9% $1,179.3 12.1% 18.4% 45.3% 17.4% Paycom Software $4,680.4 $66.6 $34.4 $4,648.1 0.7% $406.8 32.8% 43.7% 63.7% 18.1% Blackbaud $4,544.0 $17.1 $338.0 $4,864.9 6.9% $769.6 8.6% 12.1% 49.6% 19.2% Proofpoint $3,981.8 $416.0 $381.2 $3,903.4 8.7% $476.7 38.7% 38.3% 52.4% 4.0% RingCentral $3,743.8 $172.3 $0.0 $3,571.5 0.0% $465.5 29.8% 31.8% 57.7% 4.0% Medidata Solutions $3,704.7 $128.4 $274.3 $3,581.2 6.9% $528.8 20.8% 18.2% 64.4% 20.0% RealPage $3,671.6 $109.3 $397.7 $3,959.9 9.8% $632.4 16.9% 16.9% 48.5% 16.5% j2 Global $3,632.1 $402.5 $999.2 $4,228.8 21.6% $1,053.3 27.3% 22.7% 64.9% 25.8% Zendesk $3,435.0 $92.6 $0.0 $3,208.4 0.0% $395.7 38.3% 52.8% 51.1% 0.1% 2U $3,368.9 $202.4 $0.0 $3,166.4 0.0% $257.4 34.2% 35.1% 57.8% 1.7% HubSpot $3,303.6 $176.7 $293.6 $3,105.3 8.2% $345.5 39.5% 49.2% 56.4% 0.8% New Relic $3,181.0 $110.7 $0.0 $2,953.5 0.0% $306.2 37.8% 53.3% 65.1% (2.8%) Ellie Mae $3,087.5 $246.8 $0.0 $2,721.4 0.0% $400.3 21.7% 40.2% 58.2% 22.7%
  25. 25. OPERATING STATISTICS – SAAS (CONTINUED) 25 Market Enterprise Debt / LTM Revenue Growth 2017E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross CFO MuleSoft $3,022.9 $56.2 $0.0 $2,841.4 0.0% $263.1 98.7% 80.3% 47.7% (10.4%) Box $2,875.3 $172.9 $84.7 $2,787.2 2.9% $479.4 28.3% 35.5% 57.6% (3.0%) FireEye $2,621.1 $160.8 $770.0 $2,512.4 22.7% $733.5 2.7% 29.2% 59.6% (16.9%) Okta $2,610.3 $137.6 $0.0 $2,386.7 0.0% $231.1 66.7% 66.7% 44.9% (20.4%) Wix.com $2,580.5 $123.9 $1.2 $2,457.8 0.0% $391.3 48.9% 46.2% 57.8% (3.3%) Ebix $2,492.9 $96.7 $343.0 $2,774.7 12.1% $339.3 17.6% 18.4% 59.9% 28.7% Paylocity $2,476.7 $97.4 $0.0 $2,379.3 0.0% $312.0 25.9% 39.1% 51.6% 16.5% WageWorks $2,457.5 $798.3 $244.8 $1,809.9 9.1% $461.7 33.1% 23.6% 48.8% 14.7% Cloudera $2,333.2 $62.8 $0.0 $1,943.7 0.0% $336.8 79.0% 54.8% 56.2% (39.4%) Qualys $2,250.5 $90.5 $0.0 $1,947.8 0.0% $220.1 15.8% 20.4% 67.6% 21.1% Twilio $2,195.5 $91.9 $0.0 $1,911.6 0.0% $365.7 48.2% 50.0% 40.5% (1.8%) Cornerstone OnDemand $2,045.7 $76.4 $245.6 $1,982.5 10.7% $459.1 12.0% 23.8% 59.5% 6.0% CallidusCloud $1,951.5 $101.0 $0.0 $1,775.1 0.0% $239.7 21.4% 23.0% 51.6% 10.7% Appian $1,898.3 $72.3 $0.0 $1,898.3 0.0% $153.3 15.3% 19.9% 64.6% (4.8%) The Trade Desk $1,878.3 $132.8 $27.0 $1,772.5 1.4% $278.0 60.5% 80.0% 66.1% 13.4% Alarm.com $1,779.6 $84.6 $72.0 $1,766.9 3.9% $319.9 28.9% 38.0% 48.5% 5.8% BlackLine $1,736.3 $24.6 $0.4 $1,627.0 0.0% $162.1 44.4% 54.2% 53.3% (10.5%) Coupa Software $1,718.6 $219.3 $0.0 $1,499.3 0.0% $171.0 40.1% 40.1% 49.3% (10.5%) Mimecast $1,643.3 $76.9 $31.0 $1,554.8 1.9% $222.0 38.9% 41.0% 57.6% 4.4% Kinaxis $1,554.6 $151.4 $0.0 $1,403.2 0.0% $129.2 17.5% 24.1% 60.1% 20.8% Q2 Holdings $1,535.6 $40.1 $0.0 $1,446.8 0.0% $184.4 33.2% 36.4% 37.5% (1.9%) MongoDB $1,501.3 $69.3 $0.0 $1,384.8 0.0% $101.4 55.3% 30.1% 70.5% (61.1%) Alteryx $1,495.1 $95.8 $0.0 $1,338.5 0.0% $118.0 94.0% 49.9% 54.2% (14.6%) Mindbody $1,422.1 $225.3 $15.1 $1,211.8 1.0% $171.1 32.6% 50.9% 52.7% (3.4%)
  26. 26. OPERATING STATISTICS – SAAS (CONTINUED) 26 Market Enterprise Debt / LTM Revenue Growth 2017E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross CFO Hortonworks $1,418.4 $53.9 $0.0 $1,355.2 0.0% $238.8 40.5% 40.5% 43.7% (54.9%) AppFolio $1,408.8 $14.8 $0.0 $1,365.6 0.0% $133.9 36.7% 57.2% 43.0% 4.6% Five9 $1,384.6 $63.4 $46.0 $1,367.2 3.2% $189.0 22.8% 24.3% 48.3% 2.2% Varonis Systems $1,351.6 $53.5 $0.0 $1,223.1 0.0% $198.6 29.0% 28.6% 70.6% (1.2%) TrueCar $1,119.8 $196.4 $29.1 $952.5 2.5% $314.1 17.6% 18.0% 78.4% 2.8% Yext $1,097.5 $21.1 $0.0 $1,097.5 0.0% $113.5 (0.7%) 25.3% 55.9% (18.0%) Talend $1,092.2 $94.6 $0.0 $997.6 0.0% $137.5 42.6% 58.7% 54.1% (15.0%) Instructure $1,002.2 $58.7 $0.1 $935.6 0.0% $146.5 44.9% 50.0% 49.9% (24.6%) Apptio $949.9 $29.3 $0.1 $814.5 0.0% $180.5 19.4% 22.6% 57.2% (7.3%) Workiva $897.3 $62.7 $19.9 $839.4 2.2% $199.7 16.0% 23.5% 61.5% (13.0%) Benefitfocus $844.4 $54.6 $119.8 $909.6 12.4% $252.6 12.3% 25.6% 43.9% (0.5%) Everbridge $839.7 $23.6 $0.0 $792.1 0.0% $96.5 34.4% 34.4% 51.2% (0.1%) SPS Commerce $836.9 $129.0 $0.0 $673.1 0.0% $213.4 15.6% 21.0% 58.7% 10.8% HealthStream $738.7 $60.5 $0.0 $615.3 0.0% $243.6 9.2% 14.5% 52.3% 12.6% LivePerson $684.5 $54.4 $0.0 $630.2 0.0% $217.6 (3.6%) 3.1% 73.2% 4.0% Castlight Health $501.5 $45.0 $5.4 $419.9 1.1% $124.3 33.5% 50.8% 51.4% (21.3%) Tabula Rasa Healthcare $500.7 $5.9 $36.9 $531.7 6.9% $117.9 36.3% 39.6% 22.3% 5.0% BazaarVoice $469.2 $52.0 $0.0 $404.0 0.0% $206.3 2.4% 4.7% 60.3% 7.2% Model N $461.9 $57.6 $57.2 $461.6 11.0% $131.2 22.6% 17.1% 51.8% (17.6%) Upland Software $450.0 $53.0 $91.7 $488.7 16.9% $89.5 22.6% 14.1% 48.5% 2.5% MobileIron $374.6 $79.6 $0.0 $292.4 0.0% $173.1 7.2% 12.2% 76.4% (16.4%) Zix $244.2 $32.8 $0.0 $211.4 0.0% $64.4 9.4% 9.0% 75.6% 20.0% ChannelAdvisor $239.1 $54.2 $0.9 $185.8 0.4% $120.2 8.4% 13.8% 69.7% 5.8% Amber Road $199.7 $8.3 $22.7 $214.1 10.2% $77.6 9.1% 7.3% 47.4% (5.9%) Average $192.2 $139.8 $3,976.2 3.0% $531.3 32.3% 35.4% 55.4% 0.8% Median $95.2 $0.0 $1,854.1 0.0% $260.3 29.0% 34.8% 54.8% 3.1%

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