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PRELIMINARY CONFIDENTIAL DRAFT
PropTech Market Update
1H 2020
22
EXECUTIVE SUMMARY – 1H 2020 REAL ESTATE TECHNOLOGY
» COVID-19 and the associated economic shut-down has broad implications for the Real Estate and PropTech markets
» Market environment has created both opportunity and dislocation in PropTech and while some companies and market segments will be negatively impacted, many will benefit from tech tailwinds created by the crisis: PropTech is a massive market category with sub-verticals that are impacted in very different ways depending on their end-market focus, go-to-market strategy, distribution channels and revenue models
– Sub-vertical Matters: Residential RE, CRE Office, CRE Multifamily, Mortgage Tech, Hospitality Tech, Construction Tech, Facilities Management, Data / Analytics businesses, etc. all have very different end-market dynamics that impact performance
– Business Model Matters: Enterprise vs. B2C; recurring subscription revenue vs. transactional models; and fixed asset cost vs. variable costs drive preservation of revenue and unit economics
– Scale Matters: Scale platform solutions help enhance ability to weather slowdown and emerge as a leaders and consolidators going forward vs. point solutions
» M&A and growth investment deals are still getting done despite macro headwinds
– 1H 2020 decline of only ~6% y/y in capital raise activity in the PropTech market despite COVID-19 and Q2 saw a 97% increase in invested capital y/y – driven by large investments in category leaders Vacasa, AirBnb and Sonder
– $4.4Bn in growth capital raised YTD in the U.S. PropTech space across 136 deals through June 2020
– 36 U.S. PropTech M&A transactions through June 2020, including two significant transactions, First American’s acquisition of DocuTech and CoStar’s acquisition of RentPath
» GCA believes that PropTech adoption will accelerate due to COVID-19 and the industry will emerge stronger as a result
33
LEADING ADVISORY TEAM FOCUSED ON THE PROPTECH MARKET
Key Sub-Sector Coverage Verticals
Residential RE Software
Commercial RE Software
Mortgage / Lending
Title / Insurance
Home Services
Facilities Management
Construction Tech
IWMS
Chris GoughManaging Director
Head of Real Estate TechnologyPhone: (415) 318-3658cgough@gcaglobal.com
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Majority Interest Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Investment from
We advised the seller
MBO backed by
We advised the seller
Global Leader in PropTech Advisory
Acquired by
We advised the seller
A Portfolio Company of
Acquired by
We advised the seller
A Portfolio Company of
Majority interest
acquired by
We advised the seller
Acquired
We advised the buyer
Lizzie Cooperstonelcooperstone@gcaglobal.com
We advised the seller
Acquired by
Acquired
We advised the buyer
Acquired by
We advised the seller
Investment from
We advised the seller
a portfolio company of
We advised the seller
Acquired by
Zain Azeemzazeem@gcaglobal.com
GCA U.S. PropTech Team
44
GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANKGlobal investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders
GCA operates as GCA in America and Asia, and GCA Altium in Europe
ZURICH
MILAN
FRANKFURT
MUNICH
TEL AVIV
LONDON
BIRMINGHAM
MUMBAI
SHANGHAI
SINGAPORE
TOKYO
NEW DELHI
NAGOYA
HO CHI MINH CITY
TAIPEI
PARISLEEDS
FUKUOKA
NEW YORK
SAN FRANCISCO
Sector expertise:
Expansive coverage
and deep
specialization
Exceptional cross-border capabilities:
Half of all transactions
Global platform:
25 offices in key markets across
America, Asia and Europe
Broad spectrum
of clients:
Leading
conglomerates, top
private equity firms
and emerging high-
growth companies
Experienced team: Over 500 employees
across the globe
Strong reputation and track record: High number of
repeat clients and referrals
Diversified
business model:
Geographically
balanced, synergistic
and complementary
focus areas
KYOTO
OSAKA
MANCHESTER
LAUSANNE
STOCKHOLM
55
I. COVID-19 UPDATE
II. PROPTECH MARKET SUMMARY
APPENDIX
66
Key U.S. Developments Select Implications for PropTech
MARKET UPDATE: COVID-19
» US in Various Stages of Reopening
» All 50 states had begun to reopen in some way after the coronavirus drove the country into lockdown starting in March
» Now, a growing number of states are pausing plans to reopen, amid rising case counts(1)
» Unemployment Claims Reached Record High But Have Since Decreased
» In the week ending June 20, the 4-week moving average was 1,620,750 filed, a decrease of 160,750 from the previous week's average
» Strong Bipartisan Fiscal Action
» $2+Tn CARES act passed on 3/27 to provide relief to unemployed and small businesses
» White House approved an additional ~$480Bn bill on 4/21 replenishing small business loans program
» Unprecedented Federal Reserve Response
» Fed reduced the fed funds rate to 0-0.25% on 3/15 and intends to maintain this target
» Introduced “unlimited” bond buying program
» Government Response Targeted to Real Estate
» FHFA announced that Fannie Mae and Freddie Mac will extend moratorium on single-family evictions and foreclosures until at least August 31, 2020
✓ Residential Real Estate Remains “Essential”
» Consumer interest rates remain at historically low levels ➔driving significant refinancing activity and will support home values on new purchase
» Crisis has impacted spring buying season ➔ likely leads to pent-up demand in 2H 2020 vs. evaporation of demand
» Adoption of tech solutions in RE transaction increasing ➔virtual showings, transaction management software, eSignatures, virtual notary, digital loan origination, etc.
» Tech to drive cost savings and productivity enhancement for transaction exposed models (e.g., title / brokerage, etc.)
✓ Commercial Real Estate Needs Tech to Adapt to Challenging Macro Trends
» Highly challenged traditional retail environment
» Corporations rethinking their approach to office space in post-COVID world ➔ drives need for enhanced tenant engagement, space utilization and building / facilities management tools
✓ Accelerated Adoption of PropTech Platforms
» COVID impacts expose shortcomings of “traditional” approach across RE end markets ➔ PropTech delivers operating efficiencies, enhances customer / consumer experience, data-driven decision making and ability to operate virtually
✓ Scale Players Likely to Extend Lead
» Well-capitalized scale leaders will extend their competitive advantage in this market
Notes: (1) As of June 30, 2020.
77
1H 2020 PROPTECH SECTOR SUMMARY – KEY-SUB SEGMENT TRENDS
» Fundamentals remain strong: RRE transaction delays will drive strong 2H 2020 market activity ➔ COVID-19 impacted key spring selling season in RRE, but historically low interest rates and strong showing activity & mortgage applications provide strong positive leading indicators for transaction rebound
» COVID-19 accelerating “digitization” of the transaction ➔ virtual showings, performance / data-driven customer capture, virtual notary, transaction management, broker management tools, tech driven escrow / title all will benefit from adoption tailwinds in post-COVID market
» Integration and combination of tool sets is critical to drive productivity ➔ expect continued consolidation of toolsets in RRE to create central “platforms” for brokers / teams / agents
Residential Real Estate
Technology
» Market outlook for CRE is mixed and highly end-market dependent – hotel vs. retail vs. CRE office vs. multifamily
» CRE building management solutions remain highly attractive segments for investors ➔ large TAM market remains very fragmented
» CRE office solutions that deliver operational efficiency drive high ROI and are in high demand (energy efficiency, utilities bulling, predictive maintenance, etc.)
» Tenant engagement, tenant experience and tenant safety tools are also critical in post-COVID environment
» Continued activity and strong momentum in multifamily management software, especially for firms that are using tech to enhance tenant experience
Commercial Real Estate
Technology
» Expect adoption of construction tech to accelerate in post-COVID environment – digitization of building models, collaboration tools, jobsite management tools (vendors / labor) and marketplace models will drive growth
» Off-site / modular construction likely to benefit as well
Construction
Technology
88
COVID-19 IMPACT IN RRE: DEMAND DELAY VS. DEMAND DISAPPEARANCE
Source: (1) National Association of Realtors.(2) Freddie Mac.(3) Mortgage Bankers Association of America, includes refinancings.
(4) U.S. Department of Housing and Urban Development.(5) ShowingTime Real Estate Showing Index as of 6/16/20.
1 CONSTRICTED SUPPLY AS INVENTORY NEAR RECORD LOWS(1) 2 MORTGAGE RATES NEAR HISTORIC LOWS(2)
3 ABRUPT FALLOFF IN TRANSACTIONS IN COVID(1, 3) 4 BUT PRICING REMAINS STEADY AND CLEAR SIGNS OF RECOVERY UNDERWAY(4)
REAL ESTATE SHOWING INDEX (7-DAY MOVING AVERAGE, JANUARY NORMALIZED)(5)
$270,000
$320,000
$370,000
Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
Median Sales Price
(60%)
(20%)
20%
60%
Jan Feb Mar Apr May Jun
2019 202050%
30%
U.S. pending home sales surged a record 44% in May
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
May-16 May-17 May-18 May-19 May-20
Housing Inventory (MM)
2.8%
3.3%
3.8%
4.3%
4.8%
5.3%
Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
30-Year Fixed Rate Mortgage Average
3.1%
Showings currently up 24% y/y as a leading indicator to activity
(20%)
0%
20%
40%
60%
3.6
4.0
4.4
4.8
5.2
5.6
6.0
Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
Existing Home Sales (MM)
Mortgage Applications (Week-Over-Week Growth)
Economic indicators points towards strong recovery in RRE transaction activity in 2H 2020
99
Date Company 1H 2020 Raised Funding to Date
5/14 $40 ~$160
3/10 $60 $150
1/7 $50 $133
1/7 $36$86 Equity / $200 Debt
COVID-19 ACCELERATES PATH TO DIGITIZATION IN RRE
Incumbent Innovators
Lone Wolf’s Marketplace hosts a library of curated
digital tools for agents and brokerages to plug and play
into zipForm Plus / TransactionDesk. The core purpose
of Marketplace is to put the industry's most innovative
digital tools in the hands of real estate agents and
brokerages at a time when they need them the most,
and to provide the first end-to-end transaction
experience of its kind
Clear Capital’s OwnerInsight provides a no-cost,
nationwide solution to maintain proper social
distancing while giving lenders, appraisers, and AMCs
timely information from inside homes they are unable
to physically enter because of COVID-19. OwnerInsight
works seamlessly on camera-enabled mobile devices
with no need for app downloads, and photo metadata
is captured to ensure protection against fraud
ShowingTime’s Virtual Showings were incorporated
by agents to serve their clients in a safe, responsible
manner in response to the challenge imposed by the
pandemic. ShowingTime developed streaming video
technology and an appointment center to allow people
to continue viewing properties virtually
1H Funded “Digitization” RRE Tech Players
Date Company 1H 2020 Raised Funding to Date
5/21 $123 ~$230
5/21 $29 $49
4/15 ~$26 $74
2/6 $65 $130
CLOSING / TITLE / VALUATION ($MM)DISCOVERY / BROKERAGE / INVESTMENT ($MM)
Source: Capital IQ as of 6/30/20, Pitchbook, press releases.
COVID-19 driving the digitization of the RRE transaction across the entire transaction ecosystem
1010
34%
31%
14%
(15%)
(17%)
(25%)
(48%)
(53%)
CRE MARKET DRIVERS & TAILWINDS IN TENANT EXPERIENCE/OPERATIONAL EFFICIENCY
CRE Tech Post-COVID – “Return to Work Tech”
Source: Capital IQ as of 6/30/20, Pitchbook, press releases.(1) Trepp CMBS Delinquency Rate (30+ Days).(2) Nareit, "FTSE Nareit U.S. Real Estate Index," accessed 4/16/2020.
Equiem’s Return to Workplace Solution assists in retaining tenants and returning
them safely to the building. Adapts operations to the 'new normal' by providing
controlled building access, touchless door, turnstile, elevator access and visitor
management, touchless retail, amenity reservations, a virtual concierge and more
Hotel
Retail
Health Care
Office
Multifamily
Industrial
Cell Towers
Data Centers
1 RISING CMBS DELINQUENCY REFLECT CRE MARKET CHALLENGES(1)Retail and Hospitality especially hard-hit by COVID-19 impact
2 YEAR-OVER-YEAR PERCENTAGE CHANGE IN US REIT PROPERTY INDICES AS OF APRIL, 2020(1)Rise Buildings incorporated new technology to adapt to the post-COVID world.
Their platform integrates real time communication, news updates, visitor and
delivery management reducing the interactions between visitors and staff,
automated package management and touchless door access
Building Engine’s Building Operations Platform offers core capabilities of its
operations platform with optimizations for COVID-19 at no cost through the end
of 2020, communication via web, email and text, virtual work orders and building
inspections with COVID-19 optimized templates
SmartRent is an enterprise home automation company developing software and
hardware to help owners, property managers and renters in multifamily
communities. The Company provides property owners and managers a platform
to better monitor and protect their assets, and create operational efficiencies
Zego’s technology removes the friction from the most critical resident
touchpoints and automates the tasks that consume community managers. From
payments and utilities, to communications and smart devices, Zego delivers
portfolio-wide efficiency, higher NOI, and more engaged residents
Multi-Family Tenant Experience
Lodging: 24%
Retail: 18%
Overall Delinquency: 10%
Multifamily: 3%Office: 3%Industrial: 2%0%
5%
10%
15%
20%
25%
30%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
CMBS DELINQUENCY RATES
1111
I. COVID-19 UPDATE
II. PROPTECH MARKET SUMMARY
APPENDIX
1212
$1,306
$943
$1,756 $1,481
$1,923 $1,761
$633
$2,624 $50
$225
$969
$403
$291 $397
$1,085
$1,356 $1,168
$2,725
$1,884
$2,214 $2,159
$643
$3,709
Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
PRIVATE CAPITAL DEAL DASHBOARD – 1H 2020
Select 1H 2020 Financing TransactionsFinancing Activity
($MM)
Source: Capital IQ as of 6/30/20, Pitchbook, CB Insights, press releases.Excludes Oyo Rooms and The We Company financing rounds.Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
(1) AirBnB raised $1Bn in debt and equity (mix not disclosed) and $1Bn of debt on 4/6.(2) Debt and equity mix not disclosed.(3) Estimated valuation per Pitchbook.
$36.5Avg. Deal
Value:$18.3$14.7$25.6 $22.8 $21.4 $24.1 $10.0
($MM)
Date CompanySelect
Investor(s) Amt. Invested Funding to Date
Latest Reported Valuation
6/24 $170 ~$560 $1,300
6/3 $90 ~$185 NA
6/2 $108 ~$635 NA
5/21 $123 ~$230 $623
5/8 $74 ~$399 $2,250(3)
4/30 $150 ~$400 $5,000
4/20 $150 $155 NA
4/6$1,000(1) Equity / $1,000 Debt
$6,400(2) NA
2/6 $65 $130 NA
1/7 $50 $133 $575(3)
Debt Raise ValueEquity Raise Value Number of Deals
51
64
96
65
90
73
64
72
All O
the
rsA
ll Oth
ers
1313
$1,411
$545
$1,000
$85 $358 $199
$86
$2,411
$630 $668
$0
$500
$1,000
$1,500
$2,000
$2,500
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
PRIVATE CAPITAL DEAL DASHBOARD – 1H 2020
Source: Capital IQ as of 6/30/20, Pitchbook, CB Insights, press releases.Excludes Oyo Rooms and The We Company financing rounds.Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
(1) 3/23/20 represents trough; 6/29/20 represents peak.
($MM)Debt Raise ValueEquity Raise ValueNASDAQ Index S&P 500 Index
# of Deals: 23
Financing Activity
# of Deals: 26 # of Deals: 24 # of Deals: 28 # of Deals: 21# of Deals: 14
Trough to Peak Increase(1):
NASDAQ: 44%
S&P 500: 36%
(40.0%)
(30.0%)
(20.0%)
(10.0%)
0.0%
10.0%
20.0%
9%
(6%)
1414
REAL ESTATE PRIVATE COMPANY FUNDING LEADERS
$50MM - $100MM
$100MM - $200MM
$200MM - $500MM
>$500MM
$25MM - $50MM
1
1
1
Equity Raised to Date:
($614MM)
($3.0Bn) ($8.9Bn Equity / $6.1Bn Debt)(1)
Other Mega Funding Leaders
($468MM)
47 companies
raised $100MM+
142 companies
raised $25MM+
($6.4Bn Equity / Debt)(1)
Source: Pitchbook, CB Insights, Company filings, Company websites, press releases.(1) Debt and equity mix not disclosed.(2) Funding totals exclude secondary transactions.
1515
− On May 21, States Title announced that it had raised $123MM in equity led by Greenspring Associates with participation from new investors Horizons Ventures, Eminence Capital, HSCM Bermuda as well as existing investors Foundation Capital, Assurant, Fifth Wall Ventures, Lennar Ventures and SCOR Global P&C Ventures
− This brings the Company’s total attributed funding to ~$230MM to date
− States Title plans to use its new funding to transform real estate closings at lower costs
Series CLed By
Transaction Overview States Title Overview
$123MM Raised
Headquarters: San Francisco, CA
Founded: 2016
Description: Offers patented machine intelligence-enabled tech solutions todigitize and automate residential real estate closings. States Titleand its family of brands – North American Title Company (NATC)and North American Title Insurance Company (NATIC) – offerssolutions for lenders, real estate agents, title agents andhomeowners that make closings more simple and efficient
Current Investors:
STATES TITLE RAISES $123MM IN SERIES C ROUND
Select Deal Commentary
States Title has developed an automated, patented technology
that streamlines the laborious title and escrow process, emerging
as the market leader in an industry that historically lacks
meaningful innovation. We are thrilled to support States Title as
they advance the vision of an instant mortgage that closes with
one tap. Especially in the current economic climate, the
mortgage industry needs to be re-imagined with transformative
technological solutions to reduce costs and improve the
customer experience. States Title is leading the vanguard of this
transformation.”
“
Jim Lim, Managing General
Partner, Greenspring Associates
States Title Fundraising Timeline(1)
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.(1) Per Crunchbase data.
$23.2$81.6 $106.6
$13.0
$58.4
$25.0
$123.0
$10.2 $23.2
$81.6$106.6
$229.6
Seed(11/25/2016)
Series A(12/20/2017)
Series B-I(1/6/2019)
Series B-II(6/20/2019)
Series C(5/21/2020)
Previously Raised New Funding
1616
STATES TITLE RAISES $123MM IN SERIES C ROUND (CONT’D)
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.
Product Overview
Solution Overview
Instant Title Underwriting – Predictive analytics algorithm that
utilizes a forward-thinking risk-based insurance model to clear title
commitments instantaneously
Remote Closings – To ensure
business continuity and accelerate
transactions, States Title offers
multifaceted state and lender-
specific eClosing solutions
Borrowers authorize closing
agents to sign on their behalf
Remote Online Notarization
powered by
Comprehensive gap insurance
from closing to recordation
Can reduce closing from 30 to 45 days to 20
2019A revenue of ~$200 million
1 of the top 2 largest bank lenders & 2 of the top
10 largest nonbank lenders as customers
Transaction volume grew by 100 times in 2019
compared to the year prior
For LendersPredictively underwritten title insurance
& escrow processes
White-label digital closing experience
products
Resale of direct title services and direct
settlement & escrow services
For Title AgentsQuick and straightforward underwriting
services, with a counsel that guarantees a
response back to your questions within 1
hour
Fast and transparent agency application
process for qualified agents
For Real Estate ProfessionalsExperienced services and guidance
throughout the home purchase or sale
process
Customer closing cost and mortgage
qualification calculators
For HomeownersFast efficient title and escrow services
Machine intelligence used to buy, sell or
refinance homes
1717
$4.5$20.1
$4.5
$15.6
$29.0
$4.5
$20.1
$49.1
Series A(5/26/2017)
Series A-II(7/18/2018)
Series B(5/21/2020)
Previously Raised New Funding
− On May 21, Spruce announced that it had raised $29MM in equity led by Scale Venture Partners with participation from Zigg Capital and Bessemer Venture Partners
− This brings the Company’s total funding to ~$49MM to date
− Spruce plans to use its new funding to accelerate development of its proprietary technology and deepen integrations with client partners
Series BLed By
Transaction Overview Spruce Overview
$29MM Raised
Headquarters: New York, NY
Founded: 2016
Description: Neutral third party that helps coordinate transactions betweenhomeowners and lenders / real estate institutions with a digital-first experience. Spruce takes handles title search, policy,settlement and escrow processes by pairing intuitive softwarewith high-touch human expertise
Current Investors:
SPRUCE RAISES $29MM IN SERIES B ROUND
Solution Overview Spruce Fundraising Timeline
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.(1) Excluding Colorado and Florida; Company website as of 7/10/20.
LendersModern title & closing technology
Detailed audit trails of the entire transaction from
beginning to end
Integrate with current loan origination system or
proprietary transaction software
Real Estate TechPartner with industry experts to create optimal
workflows
Digital closing experience has an NPS of 60 and
allows customers to view & sign documents, link
their bank account, and schedule closing with
easeHomeowners
Spruce provides a transaction coordinator
supported by a team of in-house experts
Average closing fee of $495(1)
Safely receive funds and communicate about
transactions via secure portal
1818
− On March 10, Zumper announced that it had raised $60MM in equity led by e.ventureswith participation from a number of existing investors at a post-money valuation between $400MM and $600MM, bringing the Company’s total funding to $150MM to date
− Zumper noted that is experiencing 100% y/y revenue growth and is on track to reach 80 million users on its platform in 2020
− Zumper plans to use its new funding to strengthen its engineering team and invest further in its ability to process rental payments online
Series D
Transaction Overview Zumper Overview
$60MM Raised
Headquarters: San Francisco, CA
Founded: 2012
Description: Developer of a search-through-close rental platform where arenter can search, schedule a tour or apply through their phone.The platform also provides landlords with online tenant screeningand rent collection services
Current Investors:
ZUMPER RAISES $60MM IN SERIES D ROUND
Product Overview
Zumper’s progress so far is striking, and it has quickly become
the leading independent company focused on the rental market.
We believe that Zumper is well positioned because of its focus on
providing an exceptional product for renters and great value for
landlords and multifamily properties. ”
“
Select Deal Commentary
Mathias Schilling, Co-Founder &
Managing Partner, e.ventures
Zumper Fundraising Timeline
Source: Pitchbook, TechCrunch, Company website, press releases.(1) Post-money valuation estimates per Pitchbook and TechCrunch.
Acquisition Timeline
Sep 2019
Web-based software platform that automates the entire rental process for landlords, leasing agents and tenants
Jan 2016
Operates an online map-based apartment rentals search website and mobile application for consumers to search for rentals by geographic location
Find Houses, Rooms or Apartments for RentReceive real-time alerts and instantly apply
Filter by location, price range, bedroom count, pet-friendly or
amenity and set an alert to get notifications when a new listing is
posted
Post Rental Listings and Collect RentPost rental listings and screen tenants
Collect rent with online payments
Generate more leads with Zumper’s network
(1)
($MM) Seed Series A Series A-I Series A-II Series B Series C Series D
Date 5/1/12 3/3/14 6/25/15 2/1/16 10/18/16 9/17/18 3/10/20
Equity Raised $1.7 $6.8 $6.4 $11.8 $17.7 $45.7 $60.0
Total Raised to Date $1.7 $8.5 $14.9 $26.7 $44.3 $90.0 $150.0
1919
− On February 6, HouseCanary announced that it had raised $65MM in equity led by Alpha Edison, Morpheus Ventures and PSP Growth
− This brings the Company’s total funding to $130MM to date
− HouseCanary plans to use its new funding to continue to build the most accurate valuations in the housing market, continue to build its world-class team to accelerate development and broad market adoption of HouseCanary and invest in its leading-edge technology
Series C
Transaction Overview HouseCanary Overview
$65MM Raised
Headquarters: San Francisco, CA
Founded: 2013
Description: Developer of a real estate analytics platform designed to offerresidential real estate information for every block and propertyand help people make better real estate decisions. The company'sreal estate analytics platform aggregates millions of dataelements to accurately define and forecast values and marketinfluences, enabling individual buyers and real estateprofessionals to make better buying and selling decisions
Current Investors:
HOUSECANARY RAISES $65MM IN SERIES C ROUND
Product Overview
Select Deal Commentary
HouseCanary Fundraising Timeline
Source: Pitchbook, Company website, press releases.
We invest in disruptive companies that are innovative and
creative in how they tackle the changing landscape. Through their
proven software and data driven technology HouseCanary is
streamlining real estate transactions and changing the future of
the industry.
Joseph Miller, Managing Partner,
Morpheus Ventures
”
($MM) Early Stage VC Series A Series B Series C
Date 3/8/17 4/7/17 5/1/17 2/6/20
Equity Raised $0.6 $33.0 $31.0 $65.0
Total Raised to Date $0.6 $33.6 $64.6 $129.6
“
Data Explorer - Proprietary
analytics for more than 100
million US homes
Property Explorer - Data &
details around individual
homes, (e.g., historic price
growth)
Market Explorer -
Interactive neighborhood
analysis (rental return,
affordability, etc.)
Agile Insights - Context
around a home’s true
value with individual
home reports
Agile Evaluation -
Condition-informed
BPO alternative
Agile Certified - Security
of high-confidence AVM
backed by transferable
insurance policy
2020
− On February 5, Cherre announced that it had raised $16MM in equity led by Intel Capital with participation from Navitas Capital, Carthona Capital, Zigg Capital, DreamitVentures and Silicon Valley Bank
− This brings the Company’s total funding to $25MM to date
− Cherre plans to use its new funding to continue powering its fully-integrated data systems
Series A
Transaction Overview Cherre Overview
$16MM Raised
Headquarters: New York, NY
Founded: 2016
Description: Provides investors, insurers, real estate advisors and other largeenterprises with a platform to collect, resolve, and augment realestate data from public, private and internal sources. Cherreallows customers to evaluate opportunities and trends faster andmore accurately, while saving on manual data collection andanalytics costs
Current Investors:
CHERRE RAISES $16MM IN SERIES A ROUND
Product Overview
We see Cherre as critical infrastructure to accelerate the future
of this industry. Our customer diligence repeatedly indicated
Cherre’s AI-enabled platform was a foundational pillar — a data
system of record for large enterprises across the real estate
segment. We’re excited to help accelerate Cherre’s global growth
trajectory.”
“
Select Deal Commentary
Trina Van Pelt, Vice President,
Intel Capital
Cherre Fundraising Timeline
Source: Pitchbook, Company website, press releases.
($MM) Seed VC Series A
Date 10/1/18 2/5/20
Equity Raised $9.0 $16.0
Total Raised to Date $9.0 $25.0
CoreAugment - Data network provides updated real estate data
CoreConnect - Ability to connect internal and external data
CoreExplore - Asset, community and ownership information for
properties within the database
CorePredict - AI engine and real estate professionals available
2121
− On January 24, CREXi announced that it had raised $30MM in equity led by Mitsubishi Estate Company, Industry Ventures, and Prudence Holdings with participation from Lerer Hippeau Ventures and Jackson Square Ventures
− This brings the Company’s total funding to $45MM to date
− CREXi plans to use its new funding to grow its core business of broker services across the sales, leasing and auction functions, and accelerate the refinement and expansion of buyer and tenant resources
Series B
Transaction Overview CREXi Overview
$30MM Raised
Headquarters: Marina Del Rey, CA
Founded: 2014
Description: Provider of a platform that combines an active sales and leasingmarketplace with marketing, analytics and deal managementtools designed to help brokers, buyers and tenants eliminatetime-consuming processes, find properties and close deals faster
Current Investors:
CREXI RAISES $30MM IN SERIES B ROUND
Product Overview
The CRE industry is evolving, and market players, especially
younger, digitally native generations are seeking out platforms
that provide free and open access to information. CREXi directly
addresses this market need, providing fair access to a range of CRE
information. As CREXi continues to build out its stable of services,
features, and functionality, we’re thrilled to partner with them and
support the company’s continued momentum.”
“
Select Deal Commentary
Gavin Myers, General Partner,
Prudence Holdings
CREXi Fundraising Timeline
Source: Pitchbook, Company website, press releases.
($MM) Seed VC Series A Series B
Date 11/17/15 5/21/18 1/24/20
Equity Raised $4.3 $11.0 $30.0
Total Raised to Date $4.3 $15.3 $45.3
Sell
Marketplace Listings
CRM
Communication & Collaboration Tools
Marketing
Data & Analytics
Support
Buy
Marketplace for commercial properties for sale and lease
Auction
Access 400,000+ qualified buyers through the live auction platform
65% sell-through rate, 100% close of escrow and 121% above the reserve price
2222
− On January 7, Roofstock announced that it had raised $50MM in equity led by SVB Capital with participation from Citi Ventures, Fort Ross Ventures, 7 Global Capital, Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners and Canvas Ventures
− This brings the Company’s total funding to $133MM to date
− Roofstock plans to use its new funding to invest in its data science, product and engineering capabilities
Series D
Transaction Overview Roofstock Overview
$50MM Raised
Headquarters: Oakland, CA
Founded: 2015
Description: Marketplace connecting buyers and sellers of single-family rentalhomes, offering investment properties in top U.S. markets. TheCompany provides the resources for investors to buy, own andsell real estate online, including data analytics, propertymanagement oversight and other tools
Current Investors:
ROOFSTOCK RAISES $50MM IN SERIES D ROUND
Product Overview
Roofstock is in the vanguard of the rapidly-growing proptech
space. As startups continue to broaden access to financial services,
we see real estate as an incredibly attractive asset class for retail
investors looking to go beyond the typical stock and bond
portfolio.”
“
Select Deal Commentary
Sulu Mamdani, Managing
Partner, SVB Capital
Roofstock Fundraising Timeline
Source: Pitchbook, Company website, press releases.
Acquisition Timeline
Jul 2018
Property management firm certified by leading institutional lenders in the space as an approved property manager for large SFR portfolios
($MM) Series A Series A-I Series B Series C Series D
Date 5/1/15 12/29/15 11/21/16 4/16/19 1/8/20
Equity Raised $6.3 $7.0 $20.0 $50.0 $50.0
Total Raised to Date $6.3 $13.3 $33.3 $83.3 $133.3
BuyBuy properties, portfolios or property shares
Search, analyze, check out and close on the platform
0.5% commission for buyers
OwnThird-party property management teams vetted by Roofstock
handle day-to-day operations and tenant concerns
Sell$2Bn in transaction volume facilitated since inception
Close in an average of 15 days
2.5% commission for sellers
2323
− On April 15, Notarize filed that it had raised $25.7MM in equity led by Polaris Partners and Hyperplane Venture Capital
− This brings the Company’s total funding to $74MM to date
Series C
Transaction Overview Notarize Overview
$26MM Raised
Headquarters: Boston, MA
Founded: 2015
CEO: Patrick Kinsel
Description: Provider of a document management platform oriented towardsthe real estate industry, allowing consumers and enterprises suchas lenders, insurers and title agents to sign and notarizedocuments online
Current Investors:
NOTARIZE RAISES $25.7MM IN SERIES C ROUND
Notarize Highlights
Notarize has been on a trajectory from day one, influencing
legislation and building the technology, relationships and
infrastructure to change business processes, while also creating a
superior customer experience for an antiquated process. Notarize
saw the potential to address the pain points of traditional notary
with a secure, streamlined solution that is already saving
government, businesses and consumers countless hours and
dollars. ”
“
Select Deal Commentary
Dave Barrett, Managing Partner,
Polaris
Notarize Fundraising Timeline
Source: Pitchbook, Company website, press releases.
($MM) Seed Series A Series B-I Series B-II Series C
Date 5/15/15 7/5/16 4/20/19 9/4/19 4/15/20
Equity Raised $2.5 $8.5 $20.0 $17.0 $25.7
Total Raised to Date $2.5 $11.0 $31.0 $48.0 $73.7
Notarize Products
eSignElectronically sign any document
Free service
Online NotarizationConnect with a commissioned notary public
24x7 to sign & notarize documents
Real Estate ClosingsSigners can electronically review, sign and
notarize real estate documents
Connects the mortgage industry on 1 platform
Available 24/7
Legally Sign &
Notarize Documents
100% Online
Subscription and Per-
Notarization Pricing
Plans
2424Source: Pitchbook, 451 Research, press releases.
HEALTHY M&A MARKET
• 1H 2020 M&A activity
− 72% strategic acquirers
− 28% financial acquirers
($MM)
Select U.S. 1H 2020 PropTech M&A Transactions1H 2020 U.S. PropTech M&A Activity
Buyer Target Announced DateEnterprise
Value
6/24 NA
6/24 NA
5/13 $190
3/3 NA
2/25 $7,100
2/13 $350
2/11 $588
1/22 NA
1/22 NA
1/14 NA
1/8 NA
26 27
24
27
30
23
19
17
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FIRST AMERICAN FINANCIAL ACQUIRES DOCUTECH
FAF 3-Year Stock Price Performance & Acquisition History
Transaction Overview FAF Financial Detail(1)
− On February 13, First American Financial Corporation (NYSE:FAF) announced its acquisition of Docutech for $350MM from Founder & Chairman Ty Jenkins and investor Serent Capital. The transaction closed on March 3
− The all-cash deal is expected to be accretive to FAF’s full-year 2020 EPS by $0.10
− Docutech’s leadership and staff are expected to remain with the Company following the transaction
February 13, 2020
December 8, 2017
Acquired
Closed
$350MM
(Lien Release Business)
Source: Capital IQ as of 7/10/20, Wall Street Research, Company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
$5,772 $5,748 $6,202
$5,407
$5,974
$777 $790 $1,091
$614 $734
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: -
1%
CAGR: 1%
($MM)
CY17A CY18A CY19A CY20E CY21E
Revenues $5,772 $5,748 $6,202 $5,407 $5,974
% Growth 3.5% (0.4%) 7.9% (12.8%) 10.5%
Adj. EBITDA $777 $790 $1,091 $614 $734
% Margin 13% 14% 18% 11% 12%
Adj. EPS $3.70 $4.68 $5.81 $3.45 $3.70
Stock Data 7/10/20 Valuation Multiples
Closing Price $47.77 EV / CY19A Revenue 1.0x
52 Week High $66.78 EV / CY20E Revenue 1.1x
52 Week Low $29.36
EV / CY19A Adj. EBITDA 5.5x
FD Shares Outstanding 113.7 EV / CY20E Adj. EBITDA 9.8x
Equity Value $5,429
Plus: Debt & Minority Interest $1,623 Price / CY19A EPS 8.2x
Less: Cash and Equivalents ($1,050) Price / CY20E EPS 13.8x
Enterprise Value $6,003
2626
Founded in 1889, First American
Financial is a financial services
provider focusing on the real estate
industry, offering insurance (title
and home), lender solutions and real
estate data & analytics
Select Transaction Commentary
FIRST AMERICAN FINANCIAL ACQUIRES DOCUTECH (CONT’D)
Founded in 1991, Docutech provides
dynamic document technologies
that streamline and financial
transactions for consumers and
lenders. The company generates
revenue on a per-order model
Source: Company websites and press releases.
The acquisition of Docutech will give FAF an end-to-end digital mortgage
platform, improving connectivity with lender customers and providing
additional upside in the origination market
Strategic Rationale Select Docutech Customers / Partners
[This acquisition] reflects our dedication to improving the home-
buying experience and driving the digital transformation of the
real estate settlement process. Together, we’re uniquely
positioned to provide collateral file management from the
inception of the mortgage process through post-closing, which will
help accelerate the evolution of real estate closings.”
“
Dennis Gilmore, CEO, First
American Financial
+175 Lenders
Docutech Offerings
Docutech’s flagship solution dynamically
creates document packages, leveraging
integrations with loan origination systems
to eliminate data entry, improve
compliance, reduce operational costs and
accelerate transactions. The platform
supports first mortgage, home equity and
personal unsecured loan lending
ConformXDocument generation engine for the
lending industry
SolexeDelivery, eSign, eClose and eVault
platform, integrating with ConformX
Processes 15%+ of U.S.
mortgage volume
Solex Collaboration PlatformAutomates settlement/closing agent
fee verification for mortgage lenders
Income VerificationAutomates tax transcript processing to
verify income and improve compliance
2727
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CoStar Group 3-Year Stock Price Performance & Select Acquisition History
Transaction Overview CoStar Group Financial Detail(1)
COSTAR ACQUIRES RENTPATH
− On February 11, CoStar Group announced its plan to acquire the assets of RentPath from TPG Capital and Providence Equity
− The all-cash deal is valued at $588MM, ~2.6x EV / 2019A Revenue and ~12.5x EV / 2019A EBITDA. RentPath’s revenue and EBITDA declined by 9% and 28% from 2018, respectively
− CoStar plans to integrate RentPath’s assets in its Apartments.com network
June 20, 2019
October 12, 2018
November 8, 2018
September 12, 2017
October 1, 2019
Acquired
Closed
$588MM
Source: Capital IQ as of 7/10/20, Wall Street Research, Company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
February 11, 2020July 18, 2017
June 24, 2020
$965
$1,192
$1,400
$1,600
$1,858
$280
$418 $507 $510
$645
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR:
23%
CAGR: 18%
2828
We are very excited to be joining
CoStar as part of the
Apartments.com network. Our
customers have an ever increasing
number of choices when
considering where to spend their
marketing dollars. With CoStar’s
commitment to invest in the
RentPath family of sites, we will be
in a position to offer our customers
the best options to reach potential
renters.
Marc Lefar, CEO,
RentPath
Founded in 1987, CoStar conducts
expansive, ongoing research to
produce and maintain the largest
and most comprehensive database
of commercial real estate
information
RentPath HighlightsStrategic Rationale
Select Transaction Commentary
COSTAR ACQUIRES RENTPATH (CONT’D)
Founded in 1989, RentPath offers
digital marketing solutions for the
rental property industry through its
portfolio of well-known apartment
and home search websites
Source: Company websites, filings, earnings transcripts and press releases.
The acquisition of RentPath will significantly expand CoStar’s online rental
search market share, bringing it to 60,000+ advertising customers across the
combined network of websites, and allow it to target an expanded universe of
renter niches
CoStar expects to achieve significant integration synergies over 12-18 months,
allowing it to increase investment in marketing. The increased scale of CoStar’s
rental search business will also provide leverage to reduce advertising unit costs
CoStar plans to focus on overlooked market segments such as landlords with
smaller portfolios and properties with fewer than 100 units, offering the
integrated screening, leasing and rent payment tools developed for
Apartments.com on RentPath’s websites
RentPath has a 30-year track
record of outstanding service to
the multifamily industry,
developing thousands of
meaningful customer relationships
[…] We believe that RentPath’s
talented and experienced
employees will become valuable
contributors not only to our
Apartments.com network of sites
but across all of our marketplaces.
Andrew Florance,
Founder and CEO,
CoStar Group
28,000 core advertising
customers across network of
websites
9 million monthly unique visitors
in 2019
““
“
“
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INTUIT TO ACQUIRE CREDIT KARMA
Intuit 3-Year Stock Price Performance & Acquisition History
Transaction Overview Intuit Financial Detail(1)
− On February 24, Intuit Inc. (NasdaqGS:INTU) announced its acquisition of Credit Karma, Inc. for $7.1Bn. The transaction is scheduled to close in the second half of 2020
− By agreeing to acquire Credit Karma, a company with nearly $1 billion in unaudited revenue in calendar year 2019, up 20% from the previous year, Intuit accelerates its mission of powering prosperity around the world
To Acquire
Pending
$7.1Bn
February 24, 2020
November 18, 2019
May 15, 2019
November 28, 2018
January 22, 2018
November 6, 2017
Source: Capital IQ as of 7/10/20, Wall Street Research, Company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
$5,196
$6,025
$6,784 $7,406
$7,995
$1,642 $1,798
$2,481 $2,647 $2,908
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 15%
CAGR: 11%
($MM)
CY17A CY18A CY19A CY20E CY21E
Revenues $5,196 $6,025 $6,784 $7,406 $7,995
% Growth 10.7% 16.0% 12.6% 9.2% 8.0%
Adj. EBITDA $1,642 $1,798 $2,481 $2,647 $2,908
% Margin 32% 30% 37% 36% 36%
Adj. EPS $3.78 $5.09 $6.78 $7.21 $7.86
Stock Data 7/10/20 Valuation Multiples
Closing Price $307.55 EV / CY19A Revenue 12.7x
52 Week High $314.73 EV / CY20E Revenue 11.6x
52 Week Low $187.68
EV / CY19A Adj. EBITDA 34.8x
FD Shares Outstanding 289.2 EV / CY20E Adj. EBITDA 32.6x
Equity Value $88,932
Plus: Debt & Minority Interest $663 Price / CY19A EPS 45.4x
Less: Cash and Equivalents ($3,371) Price / CY20E EPS 42.7x
Enterprise Value $86,224
3030
The platform, leveraging artificial intelligence and connections to over
100 financial partners, will help consumers:Founded in 2007 by Ken Lin, Credit Karma is a consumer technology
company that provides financing
services including identity
monitoring, applying for credit
cards, shopping for loans (car, home
and personal), filing their taxes
Select Transaction Commentary
INTUIT TO ACQUIRE CREDIT KARMA (CONT’D)
Founded in 1983, Intuit is a global
financial platform company with
products including TurboTax,
QuickBooks, Mint and Turbo. Their
ecosystem of financial management
solutions serves approximately 50
million customers worldwide
Source: Company websites and press releases.
The combination brings together two technology leaders to help solve the
personal finance problems that consumers face today -- managing debt,
maximizing savings, access to better credit cards and loans -- with an aim to
put more money in consumers’ pockets
Strategic Rationale Combined Platform
Our mission is to power prosperity around the world with a bold
goal of doubling the household savings rate for customers on our
platform. We wake up every day trying to help consumers make
ends meet. By joining forces with Credit Karma, we can create a
personalized financial assistant that will help consumers find the
right financial products, put more money in their pockets and
provide insights and advice, enabling them to buy the home
they’ve always dreamed about, pay for education and take the
vacation they’ve always wanted.”
“
Sasan Goodarzi, CEO, Intuit
Credit Karma Business Model
Find the right financial products by matching consumers with pre-approved
offers on loans and credit cards with competitive interest rates that are right
for them.
Put more money in their pockets by connecting them to higher yield savings
accounts and, in the future, will provide faster access to their hard-earned
cash.
Provide insights and advice to help consumers make better decisions about
their money and improve their credit score.
RecommendationsScores & ReportsPaid by the Bank
or Lender
Use data to analyze
credit profile and
make product
recommendations
Get access to credit
scores and reports
from TransUnion and
Equifax, with weekly
updates
Get a product through
one of Credit Karma’s
recommendations, and
the bank or lender pays
the company
3131
CANNAE HOLDINGS UNSOLICITED OFFER SUMMARY TO CORELOGIC - SUBSEQUENTLY REJECTED BY CLGX
Summary of Offer Cannae Holdings (NYSE: CNNE) Summary
Source: Capital IQ as of 7/10/20, Wall Street Research, Company Filings and Press Release.
− CoreLogic (NYSE: CLGX) has received an unsolicited bid from Cannae Holdings (NYSE: CNNE) and Senator Investment Group to acquire the company for $65 per share in cash representing a 37% premium over CoreLogic’s unaffected stock price on June 15
− Cannae and Senator Investment jointly own about 15% of CoreLogic’s shares outstanding
− Cannae and Senator said that it’s prepared to take “all steps necessary” including calling a special meeting and launching a proxy fight if CoreLogic’s board isn’t willing to engage
− CoreLogic’s Board of Directors said that Cannae and Senator hadn’t previously expressed interest in acquiring the company but will carefully review the proposal with the assistance of financial and legal advisors to determine the best course of action
− First American had a ROFR on any CLGX takeover offers that expired on June 1st of this year
− On July 7, Corelogic’s Board voted Unanimously To Reject Cannae’s offering, calling the bid undervalued and raising serious regulatory concerns
− Holding company engaged in actively managing and operating a group of companies and investments as well as making additional majority and minority equity portfolio investments in businesses
− Primary investments include minority ownership interested in Dun & Bradstreet, Ceridian, and Coding Solutions and majority ownership stakes in O’Charley’s, 99 Restaurants and various other equity and debt investments in real estate, financial services and healthcare technology
− Cannae is externally managed by Trasimene Capital and led by Bill Foley
− As of 3/31/20, the portfolio has a book value of ~$2.2Bn including approximately $399MM of holding company cash and no holding company debt
CoreLogic (NYSE: CLGX) Summary
CLGX Stock Chart
− Provider of global property information, analytics, data-enabled software platforms and services that address the unique needs of the mortgage, real estate, insurance, capital, public sector and rental property markets
− The Property Intelligence & Risk Management Solutions (“PIRM”) segment combines property information, mortgage information and consumer information to deliver unique housing market and property-level insights, predictive analytics and risk management capabilities
− The Underwriting & Workflow Solutions (“UWS”) segment combines property, mortgage and consumer information to provide comprehensive mortgage origination and monitoring solutions, including, underwriting-related solutions, and data-enabled valuations and appraisals
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June 15, 2020:Unsolicited Bid from
Cannae Holdings
3232
CANNAE HOLDINGS UNSOLICITED OFFER SUMMARY TO CORELOGIC - SUBSEQUENTLY REJECTED BY CLGX (CONT’D)
Source: Capital IQ as of 7/10/20, Wall Street Research.(1) VWAP calculated using number of trading days, not calendar days.(2) Offer equity value based on FDSO that includes PBRSUs and RSUs.(3) Assumes net debt of $1,612.
(4) LTM is twelve months prior to Q1’20. NTM is twelve months beginning Q2’20.(5) As of 7/10/20.(6) Capital IQ as of 7/14/20.(7) Cannae and Senator ownership % based on offer press release.
Deal Multiples and Share Premium / (Discount)
Pre
-Off
erB
idC
urr
ent(
5)
CLGX Financial Profile ($67.17 Share Price) CLGX Top 10 Shareholders
($MM) CY ’17A CY ’18A CY ’19A CY ’20E
Revenue $1,851 $1,788 $1,762 $1,708
Y/Y Growth (5.2%) (3.4%) (1.5%) (3.1%)
Adj. EBITDA $480 $493 $497 $513
Adj. EBITDA Margin 25.9% 27.6% 28.2% 30.0%
Market Cap $5,484 EV / Rev: 4.0x 4.2x
Cash & Equiv. $153 EV / EBITDA: 14.3x 13.8x
Total Debt $1,765
Enterprise Value $7,097
Premium / (Discount) To: Valuation Multiples 4
$MM, except per share data 52 Week Range Volume-Weighted Average Price1
Current Price Low High
30-Day
VWAP
60-Day
VWAP
90-Day
VWAP
LTM
VWAP
Equity
Value2Enterprise
Value3LTM
Revenue
NTM
Revenue
LTM Adj.
EBITDA
NTM Adj.
EBITDA
Metric: $67.17 $24.69 $69.36 $58.72 $54.61 $49.14 $45.56 $1,788.4 $1,687.9 $530.1 $510.4
$52.93 (21%) 114% (24%) (10%) (3%) 8% 16% $4,322 $5,934 3.3x 3.5x 11.2x 11.6x
$65.00 (3%) 163% (6%) 11% 19% 32% 43% $5,307 $6,919 3.9x 4.1x 13.1x 13.6x
$67.17 0% 172% (3%) 14% 23% 37% 47% $5,484 $7,097 4.0x 4.2x 13.4x 13.9x
HolderCommon Stock
Equivalent Held(6)% Of CSO
9,871,904 12%
7,746,628 10%
6,824,557 9%
4,378,546 6%
2,970,000 4%
2,503,199 3%
2,350,000 3%
2,005,861 3%
1,970,995 2%
1,931,184 2%
Cannae and Senator jointly
own 15% of CSO(7)
3333
(70%)
(50%)
(30%)
(10%)
10%
30%
50%
70%
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
20%
34%
(25%)
21%
(27%)
(17%)
52%
28%
(19%)
(27%)
Credit / Mortgage Marketing
Credit / Mortgage Marketing
LTM Share Price Performance
PUBLIC COMPANY PERFORMANCE
RE Media / Portals
Property Mgmt Software
RE Sharing Economy / Travel
Residential Brokerage
LTM Share Price Performance
20%
Property Management
Software
Public Real Estate Technology Ecosystem
RE Data / RE Software
(25%)
Traditional Mortgage / Title
28%
Broader Data
Broader DataCommercial Brokerage
(19%)
Commercial Brokerage
21%
RE Media / Portals
(17%)
RE Sharing Economy / Travel
52%
Residential Brokerage
34%
RE Data / RE Software
Source: Capital IQ as of 7/10/20.
Traditional Mortgage / Title
Intra-COVID March
Market Low
RDFN: 107%EXPI: 57%RLGY: 23%
RMAX: (4%)PURP: (52%)
3434
Enterprise Value / 2020E Revenue Enterprise Value / 2020E EBITDA
Public Real Estate Technology Ecosystem
PUBLIC COMPANY VALUATION
Source: Capital IQ as of 7/10/20.Multiples represent median value of sector group.eXp World Holdings and Purplebricks Group excluded from Residential Brokerage’s EV / EBITDA calculation.
2020E Revenue / 2020E EBITDA Multiple
Residential Brokerage
Traditional Mortgage
/ Title
RE Sharing Economy /
Travel
RE Data / RE Software
Credit / Mortgage Marketing
Property Mgmt
Software
RE Media / Portals
Broader Data
Commercial Brokerage
Residential Brokerage
Traditional Mortgage
/ Title
RE Sharing Economy /
Travel
RE Data / RE Software
Credit / Mortgage Marketing
Property Mgmt
Software
RE Media / Portals
Broader Data
Commercial Brokerage
4.4x / 15.5x
Credit / Mortgage Marketing
6.7x / 29.2x
Property Management
Software
1.1x / 8.2x
Traditional Mortgage / Title
7.5x / 20.7x
Broader Data
0.9x / 11.2x
Commercial Brokerage
16.8x / 30.5x
RE Media / Portals
3.9x / 34.6x
RE Sharing Economy / Travel
1.1x / 17.1x
Residential Brokerage
4.0x / 21.3x
RE Data / RE Software
16.8x
7.5x 6.7x
4.4x 4.0x 3.9x
1.1x 1.1x 0.9x
34.6x30.5x 29.2x
21.3x 20.7x17.1x 15.5x
11.2x8.2x
3535
I. COVID-19 UPDATE
II. PROPTECH MARKET SUMMARY
APENDIX
3636
6/30/2020 NA NA NA NA NA Provider of CMA platform that assists real estate agents with managing deals and graphics generation
6/25/2020 NA NA NA NA NA Provider of mortgage lending and real estate software solution that maximizes repeat business for lenders and
agents by empowering consumers to build wealth through homeownership
6/24/2020 NA NA NA NA NA Provider of real estate search applications, which actively manages over $1 trillion worth of active listings data
from over 600 individual Multiple Listings Services (MLS)
6/24/2020 NA NA NA NA NA Provider of a residential real estate search site and end-to-end platform for consumers and agents to
collaborate
6/11/2020 NA NA NA NA NA Provider of a cloud-based platform for institutional real estate investors and global property managers
6/11/2020 NA NA NA NA NA Provider of a technology platform designed to build highly personalized, premium prefab homes
6/4/2020 NA NA NA NA NA Provider of professional appraisal management services
5/13/2020 NA NA NA NA NA Provider of tools to access data across the entire enterprise that optimize space use, meeting room
coordination, workplace moves, and asset management
5/13/2020 $190 3.3x NA NA NA Provider of a platform for digital commercial real estate transactions that accelerates the property sales process
4/2/2020 NA NA NA NA NA Provider of a web-based real estate financial modeling, analysis, and presentation application that includes a
suite of smart, flexible models, calculators, and tools for the single-family real estate sector
3/31/2020 NA NA NA NA NA Provider of software solutions for the UK social housing sector
3/9/2020 NA NA NA NA NA Provider of a visual marketing platform designed to offer videos and 3D models
3/3/2020 NA NA NA NA NA Provider of automated valuation models and other property valuation tools for appraisers, appraisal
management companies, lenders, investors and government agencies
2/25/2020 7,100 7.1x NA NA NA Developer of financial education and recommendation platform intended to offer free credit scores and
reports with monitoring
2/19/2020 NA NA NA NA NA Provider of online commercial real estate marketplace that connects tenants and buyers with brokers
2/13/2020 350 NA NA NA NA Provider of document, eSign, eClosing and compliance technology
2/11/2020 588 2.6x NA 12.5x NA Operator of a series of websites for marketing apartments, including Rent.com and ApartmentGuide.com
1/22/2020 NA NA NA NA NA Provider of multifamily real estate resident engagement solution
1/22/2020 NA NA NA NA NA Provider of geographic data sciences and predictive, location-based analytics for businesses across the U.S. and
Canada
1/14/2020 NA NA NA NA NA Provider of client relationship management (CRM) software company for CRE brokers
APPENDIX
($MM)
Select M&A Activity
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.
20
20
3737
1/8/2020 NA NA NA NA NA Provider of property management software and services for public and affordable housing organizations in the
United States
12/18/2019 NA NA NA NA NA Provider of data science, machine learning and human interaction to help real estate professionals better
leverage the value of their personal network
12/18/2019 NA NA NA NA NA Provider of technology for home subscription sign-ups, and associated concierge offerings
12/11/2019 NA NA NA NA NA Provider of an Investor Relationship Management (IRM) platform
12/6/2019 NA NA NA NA NA Provider of augmented reality technology for home improvement technicians
11/19/2019 NA NA NA NA NA Provider of a system designed to integrate artificial intelligence and machine learning solutions into an
organization's overall business strategy
11/12/2019 NA NA NA NA NA Provider of real estate marketing automation services
11/7/2019Global R elocat ion B usiness
$400 NA NA NA NA Provider of Relocation assets of Realogy's Cartus subsidiary
11/6/2019 580 11.6x NA NA NA Provider of property management SaaS solutions
11/6/2019 NA NA NA NA NA Provider of an automated RFP solution for commercial real estate property managers
10/28/2019 NA NA NA NA NA Provider of cloud-based document management technologies for the mortgage industry
10/16/2019 NA NA NA NA NA Provider of a lease automation and software platform for retail landlords
10/1/2019 450 7.0x NA 28.1x NA Provider of data benchmarking, analytics and marketplace insights to global hospitality sectors
10/1/2019 NA NA NA NA NA Provider of a search platform for real estate properties designed to collaborate and make the process of finding
and purchasing a home more efficient and personalized
9/25/2019 NA NA NA NA NA Provider of property tax management services to lenders, real estate investment trusts, and property
management companies
9/20/2019 152 NA NA NA NA Provider of storage facility services
9/12/2019 NA NA NA NA NA Developer of a software platform for real estate brokers
9/10/2019 NA NA NA NA NA Provider of an end to end marketplace designed to make renting apartments easy
9/6/2019 NA NA NA NA NA Provider of a showing scheduling platform for the residential real esttate industry
9/5/2019 NA NA NA NA NA Provider of national residential and commercial title and escrow services
APPENDIX
($MM)
Select M&A Activity (cont’d)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.(1) LTM multiples reflect 2019E figures.
(1) (1)
20
19
20
20
3838
8/27/2019 NA NA NA NA NA Platform offering empty restaurant spaces as co-working spaces during the closed hours
8/22/2019 NA NA NA NA NA Largest vacation rental marketplace in the Canadian market
8/21/2019 NA NA NA NA NA Provider of an end-to-end SaaS platform for the residential real estate industry, offering various agent
productivity tools
8/19/2019 NA NA NA NA NA Predictive analytics and data-driven marketing automation platform for the residential real estate industry
8/8/2019 NA NA NA NA NA Provider of business intelligence software for the construction industry
8/6/2019 NA NA NA NA NA Online marketplace for furnished apartments aimed at the vacation, business and student markets
8/31/2019 NA NA NA NA NA Provider of AI-powered data extraction solutions for real estate and corporate documents
7/30/2019 NA NA NA NA NA Workplace real estate management and operations platform, offering space planning and portfolio
optimization
7/24/2019 NA NA NA NA NA Real estate investment analytics platform offering valuation tools
7/16/2019 NA NA NA NA NA Provider of project management software for commercial property owners and developers
7/10/2019 NA NA NA NA NA Tech-enables direct mortgage lender targeting the luxury buyer segment
7/9/2019 NA NA NA NA NA Provider of a predictive listing and lead generation platform for the rresidential real estate industry
6/20/2019 NA NA NA NA NA Online multifamily marketplace service for student housing in the United States
6/20/2019 NA NA NA NA NA provider of technology for tracking and engaging potential multifamily property residents and analyzing
marketing returns
6/12/2019 NA NA NA NA NA Provider of advisory services, data management, partner management, application management and data
analytics for the commercial real estate industry
6/4/2019 NA NA NA NA NA The credit, flood, income and tax verification services, government services, REO management and disposition,
online foreclosure auction and homeowners association (HOA) tracking units of Chronos Solutions
6/3/2019 NA NA NA NA NA Provider of research, data and analytics to the commercial real estate industry in North America and Europe
5/23/2019 NA NA NA NA NA Provider of ERP software and SaaS for the multifamily and commercial real estate sectors, providing features
for accounting, budgeting and forecasting, job costing, lease management, reporting and Web design
5/13/2019 NA NA NA NA NA Online marketplace and SaaS platform supporting commercial real estate (“CRE”) brokers through property
marketing, transaction management and business intelligence tools
5/13/2019 NA NA NA NA NA Provider of cloud-based real estate and location data platforms serving more that 350,000 business and
government users
(Select Businesses)
APPENDIXSelect M&A Activity (cont’d)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
20
19
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.
3939
5/3/2019 $500 NA NA NA NA Provider of cloud-based operations management software that automates enterprise asset management
workflows such as work order, inventory, energy, capital planning and facility scheduling
5/1/2019 335 NA NA NA NA Operator of a network connecting agents and jurisdictions that underpin residential mortgage records,
streamlining the local recording of residential mortgage transactions
4/22/2019 NA NA NA NA NAProvider of real etstate transaction forms and transaction management software for the residential real estate
industry
4/17/2019 NA NA NA NA NAOnline mortgage lender leveraging advanced analytics to offer no origination fees, fast approvals and
competitive rates
4/3/2019 220 NA NA NA NA Provider of an office space management platform and office management logistics
4/1/2019 NA NA NA NA NA Provider of loan origination and servicing software systems for the residential real estate lending industry
3/26/2019 NA NA NA NA NA Provider of an operational cost analytics platform for commercial real estate facilities
3/19/2019 2,083 3.1x 3.1x 12.3x 12.3x Provider of capital markets and brokerage services to owners of commercial real estate
3/13/2019 205 NA NA NA NA Provider of environmental due diligence information
3/7/2019 ~400 NA NA NA NA Provider of an online hotel booking platform offering low rates on last-minute bookings
3/5/2019 NA NA NA NA NA Operator of a real estate appraisal firm that specializes in right-of-way appraisal and litigation
3/4/2019 NA NA NA NA NA Operator of a luxury residential real estate company focusing on the San Francisco Bay Area
3/1/2019 NA NA NA NA NA Provider of an online real estate brokerage offering low-cost home sales
2/27/2019 NA NA NA NA NA Provider of AI-based customer relationship management SaaS to real estate brokers and agents
2/14/2019 NA NA NA NA NAProvides an online platform for home exchanges, connecting like-minded travelers and enabling them to swap
vacation homes
2/12/2019 3,390 7.1x 6.3x 27.7x 21.9x Provider of loan origination SaaS for the financial sector
2/7/2019 NA NA NA NA NA Provider of residential real estate workflow and transaction management software
2/7/2019 NA NA NA NA NA Developer of a data platform that tracks the identity and behavior of people in the physical world
2/4/2019 NA NA NA NA NA Provider of operating cost analytics software for large data center operators
1/9/2019 / NA NA NA NA NA Provider of applicant screening platforms for the multifamily real estate industry and corporate employers
APPENDIXSelect M&A Activity (cont’d)
($MM)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.(1) Per Skift report, 3/8/19.(2) EBITDA multiples based on adjusted EBITDA.
(2) (2)
(1)
20
19
4040
1/8/2019 NA NA NA NA NA Provider of an AI tool that automates leasing communication for property managers
1/7/2019 NA NA NA NA NA Provider of national real estate data and analytics
12/21/2018 $105 6.3x NA 8.8x NAProvider of an online analysis website for consumers seeking advice on financial topics such as insurance,
investing and credit cards
12/20/2018 275 NA NA NA NADeveloper of a construction bid management platform designed to connect businesses in the construction
industry
12/17/2018 NA NA NA NA NA Provider of marketing services for real estate in Chantilly, Virginia
12/6/2018 NA NA NA NA NA Provider of real estate settlement and title underwriting services
12/6/2018 NA NA NA NA NAProvider of an online hotel booking platform intended to serve the travelers, expets and locals around the
world
12/5/2018 NA NA NA NA NA Provider of software designed to offer workplace space management and optimization
11/21/2018 NA NA NA NA NAProvider of appraisal and title management services to mortgage originators, quality control companies, due
diligence firms, and other institutions involved in the real estate finance industry
11/20/2018 875 NA 8.8x NA NA Developer of a construction productivity software intended to deliver real-time project information
11/8/2018 68 NA NA NA NAProvider of an online property rental management platform designed to make the rental process simple,
secure and intuitive
11/6/2018 NA NA NA NA NA Provider of information services that help clients in processing real estate transactions
10/25/2018 NA NA NA NA NA Developer of a property management platform designed to offer information on short-term rentals
10/22/2018 122 3.5x NA 40.2x NAProvides SaaS-based insurance claims management mobile applications for businesses in the property and
health insurance sector Also provides insurance claims analytics and change management services
10/12/2018 57 NA 6.3x NA NA Developer of data analytics platform intended to provide business intelligence to manage properties
10/4/2018 370 2.4x NA 14.5x NAProvides an online automotive, home, renter's and health insurance quote comparison service for consumers
as well as lead generation services for insurance agents and other businesses
10/2/2018 NA NA NA NA NA Operates a high-end serviced home rentals platform for rental properties in sixteen countries around the world
10/1/2018 NA NA NA NA NALoanDecisions, LoanLogics' product, pricing and eligibility (PPE) unit, offers a platform that allows lenders to
quickly process and price mortgages and other loan products
9/11/2018 NA NA NA NA NA Provides an online marketplace designed to make buying a home simple and affordable
8/30/2018 263 5.1x 4.6x 17.0x 14.9x Provides information and marketing services to the commercial real estate industry
(LoanDecisions Unit)
APPENDIXSelect M&A Activity (cont’d)
($MM)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
(1)
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.(1) Includes $70.2MM in potential earn-outs.
20
18
20
19
4141
8/29/2018 NA NA NA NA NA Leading luxury real estate brokerage serving California
8/29/2018 $210 NA NA NA NADevelops an online real estate referrals platform designed to match top agents with qualified home buyers and
sellers in real-time
8/22/2018 NA NA NA NA NA Provides an online platform designed to offer on-demand home repair services
8/8/2018 6,675 3.7x 3.8x 12.5x 12.6x Provider of business information and software for risk and supply management decisions
8/6/2018 NA NA NA NA NA Operates an online direct mortgage lending company
8/2/2018 117 5.9x NA NA NA Operates an innovative interactive media company intended to support the apartment industry
8/2/2018 NA NA NA NA NAFocuses on reducing expense and exposure of clients' portfolios from origination to disposition, enabling
clients to manage risk across the mortgage lifecycle
7/31/2018 2,000 7.4x NA 20.0x NA Provides enterprise contract management software
7/10/2018 NA NA NA NA NADevelops whole loan mortgage trade management software intended to bring automation and transparency to
the spot market for mortgage loans
7/10/2018 NA NA NA NA NA Develops cloud-based software intended to improve government processes
7/9/2018 NA NA NA NA NA Operates a residential real estate brokerage in the San Francisco Bay Area
7/2/2018 39 1.1x NA 12.2x NA Provides commission free real estate services
6/12/2018 290 NA NA NA NADevelops real-time facility support software services intended for facility maintenance management and
process optimization
6/6/2018 NA NA NA NA NAProvides software which helps maintenance teams manage work orders, organize / execute preventative
maintenance, predict asset maintenance and manage enterprise assets and equipment inventory
6/4/2018 NA NA NA NA NA Developer of facility scheduling and event management software
6/4/2018 NA NA NA NA NA Develops a mortgage processing software designed to accelerate the speed and scaling of mortgage processing
5/11/2018 3,208 9.7x 7.6x 27.8x 19.6xProvides a searchable real estate classified ads website of properties for sale or rent for consumers in the UK
Also provides online home value reference content and related rental mobile apps
5/1/2018 97 NA NA NA NA Provider of property data analytics to the financial sector
4/23/2018 1,200 NA 6.0x NA NA Provides cloud, SaaS, and on premise commercial construction software solutions
4/20/2018 219 9.9x 6.8x NA NA Provides a SaaS-based payment and billing platform for the multi-family and commercial real estate industry
Mean 5.7x 5.9x 19.5x 16.3x
Median 5.9x 6.3x 15.7x 14.9x
(Australia)
(Mortgage Solutions Business)
APPENDIXSelect M&A Activity (cont’d)
($MM)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
(1)
Source: Capital IQ as of 6/30/20, Pitchbook, Company filings.(1) Includes $14.0MM in potential earn-outs.
20
18
4242
REAL ESTATE TECHNOLOGY ECOSYSTEM
Source: Capital IQ as of 7/10/20.“NM” signifies multiple >40x.
($MM, except per share data)
Stock Trading Metrics Operating Metrics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin
Company 07/10/20 Value Debt Value CY19A CY20E CY19A CY20E CY19A CY20E 18A/19A 19A/20E CY19A CY20E
RE Media / Portals
CoStar Group, Inc. $722.03 $28,171 ($1,038) $27,133 $1,400 $1,600 19.4x 17.0x NM NM 17.5% 14.3% 36.2% 31.9%
Zillow Group, Inc. $61.75 13,642 (282) 13,360 2,743 2,664 4.9x 5.0x NM NM 105.7% (2.9%) 1.4% 4.0%
Scout24 AG $82.19 8,428 (2,264) 6,163 393 364 15.7x 16.9x 26.3x 28.6x 4.1% (7.3%) 59.7% 59.1%
REA Group Limited $72.83 9,593 169 9,762 610 585 16.0x 16.7x 28.5x 32.4x (7.5%) (4.1%) 56.2% 51.5%
Rightmove plc $6.97 6,068 (32) 6,036 383 249 15.8x 24.2x 19.6x 34.0x 12.1% (34.9%) 80.6% 71.1%
LIFULL Co., Ltd. $3.87 519 (2) 517 377 299 1.4x 1.7x 11.2x 12.0x 18.8% (20.8%) 12.3% 14.5%
RE Media / Portals
Mean 12.2x 13.6x 21.4x 26.8x 25% (9%) 41% 39%
Median 15.7x 16.8x 22.9x 30.5x 15% (6%) 46% 42%
RE Data / RE Software
Black Knight, Inc. $71.15 $11,057 $1,118 $12,175 $1,178 $1,178 10.3x 10.3x 20.9x 21.0x 5.7% 0.0% 49.5% 49.1%
CoreLogic, Inc. $67.17 5,484 1,612 7,097 1,762 1,708 4.0x 4.2x 14.3x 13.8x (1.5%) (3.1%) 28.2% 30.0%
Altus Group Limited $30.24 1,203 124 1,327 433 400 3.1x 3.3x 20.0x 21.6x 15.9% (7.6%) 15.3% 15.4%
Real Matters Inc. $21.85 1,845 (81) 1,764 359 451 4.9x 3.9x NM 24.1x 34.0% 25.7% 10.8% 16.2%
RE Data / RE Software
Mean 5.6x 5.4x 18.4x 20.2x 14% 4% 26% 28%
Median 4.5x 4.0x 20.0x 21.3x 11% (2%) 22% 23%
Property Management Software
RealPage, Inc. $66.21 $6,555 $1,099 $7,653 $985 $1,137 7.8x 6.7x 27.2x 25.9x 13.3% 15.4% 28.6% 26.0%
AppFolio, Inc. $161.28 5,524 69 5,593 255 316 21.9x 17.7x NM NM 34.4% 23.6% 14.3% 14.5%
Agilysys, Inc. $17.27 401 (31) 369 156 142 2.4x 2.6x 31.6x 32.5x 14.7% (9.1%) 7.5% 8.0%
Property Management Software
Mean 10.7x 9.0x 29.4x 29.2x 21% 10% 17% 16%
Median 7.8x 6.7x 29.4x 29.2x 15% 15% 14% 15%
Residential Brokerage
eXp World Holdings, Inc. $16.25 $1,091 ($41) $1,050 $980 $1,298 1.1x 0.8x NM 31.7x 95.9% 32.4% 1.3% 2.6%
Purplebricks Group plc $0.64 198 (51) 146 155 134 0.9x 1.1x NM NM (5.2%) (13.3%) (14.5%) 1.9%
Realogy Holdings Corp. $7.22 833 3,987 4,820 5,808 4,486 0.8x 1.1x 8.2x 17.1x (4.5%) (22.8%) 10.2% 6.3%
Redfin Corporation $37.14 3,682 (49) 3,633 764 812 4.8x 4.5x NM NM 56.9% 6.3% (6.1%) (5.8%)
RE/MAX Holdings, Inc. $30.60 555 204 759 282 263 2.7x 2.9x 7.3x 8.7x 32.8% (6.8%) 36.6% 33.2%
Residential Brokerage
Mean 2.1x 2.1x 7.7x 19.2x 35% (1%) 6% 8%
Median 1.1x 1.1x 7.7x 17.1x 33% (7%) 1% 3%
4343
REAL ESTATE TECHNOLOGY ECOSYSTEM (CONT’D)
Source: Capital IQ as of 7/10/20.“NM” signifies multiple >40x.
($MM, except per share data)
Stock Trading Metrics Operating Metrics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin
Company 07/10/20 Value Debt Value CY19A CY20E CY19A CY20E CY19A CY20E 18A/19A 19A/20E CY19A CY20E
Commercial Brokerage
CBRE Group, Inc. $44.20 $14,474 $3,721 $18,194 $23,613 $22,919 0.8x 0.8x 8.7x 11.4x 10.7% (2.9%) 8.8% 7.0%
Colliers International Group Inc. $54.20 2,168 923 3,091 3,056 2,512 1.0x 1.2x 8.5x 11.9x 8.2% (17.8%) 11.9% 10.3%
Cushman & Wakefield plc $11.47 2,528 3,011 5,539 8,735 8,049 0.6x 0.7x 7.8x 11.2x 6.3% (7.8%) 8.1% 6.2%
Jones Lang LaSalle Incorporated $104.37 5,389 3,325 8,713 10,017 9,174 0.9x 0.9x 8.0x 11.2x 10.2% (8.4%) 10.8% 8.4%
Newmark Group, Inc. $4.41 786 1,614 2,400 2,252 1,900 1.1x 1.3x 4.2x 5.7x 20.7% (15.6%) 25.2% 22.3%
Savills plc $10.11 1,386 316 1,702 2,560 2,302 0.7x 0.7x 6.7x 6.2x 14.0% (10.1%) 9.9% 11.8%
Marcus & Millichap, Inc. $27.64 1,086 (248) 838 786 642 1.1x 1.3x 7.5x 18.3x 5.2% (18.3%) 14.1% 7.1%
Commercial Brokerage
Mean 0.9x 1.0x 7.4x 10.8x 11% (12%) 13% 10%
Median 0.9x 0.9x 7.8x 11.2x 10% (10%) 11% 8%
Traditional Mortgage / Title
Fidelity National Financial, Inc. $30.61 $9,158 ($564) $8,594 $7,926 $6,735 1.1x 1.3x NM NM 55.8% (15.0%) 0.0% 0.0%
First American Financial Corporation $47.77 5,429 573 6,003 6,202 5,407 1.0x 1.1x 5.5x 9.8x 7.9% (12.8%) 17.6% 11.4%
Radian Group Inc. $13.80 2,627 153 2,780 1,494 1,328 1.9x 2.1x NM NM 13.9% (11.1%) NA NA
Stewart Information Services Corporation $32.69 774 (84) 691 1,936 1,800 0.4x 0.4x 3.8x 6.7x 1.5% (7.0%) 9.4% 5.8%
Altisource Portfolio Solutions S.A. $12.40 193 197 390 634 393 0.6x 1.0x 6.3x NM (24.3%) (38.0%) 9.7% 2.3%
Traditional Mortgage / Title
Mean 1.0x 1.2x 5.2x 8.2x 11% (17%) 9% 5%
Median 1.0x 1.1x 5.5x 8.2x 8% (13%) 10% 4%
Credit / Mortgage Marketing
LendingTree, Inc. $302.40 $3,951 $378 $4,328 $1,114 $882 3.9x 4.9x 21.4x 34.0x 45.6% (20.8%) 18.2% 14.5%
Moneysupermarket.com Group PLC $3.79 2,036 14 2,049 513 462 4.0x 4.4x 11.1x 13.3x 13.2% (10.0%) 36.1% 33.3%
QuinStreet, Inc. $10.39 540 (83) 457 479 458 1.0x 1.0x 13.5x 15.5x 7.3% (4.5%) 7.1% 6.4%
Credit / Mortgage Marketing
Mean 2.9x 3.4x 15.3x 20.9x 22% (12%) 20% 18%
Median 3.9x 4.4x 13.5x 15.5x 13% (10%) 18% 14%
RE Sharing Economy / Travel
Booking Holdings Inc. $1,707.40 $69,885 $2,025 $71,910 $15,066 $7,065 4.8x 10.2x 12.3x 34.6x 3.7% (53.1%) 38.9% 29.4%
Expedia Group, Inc. $83.54 11,778 3,278 15,056 12,067 6,315 1.2x 2.4x 7.1x NM 7.5% (47.7%) 17.7% 2.6%
TripAdvisor, Inc. $19.61 2,632 (73) 2,559 1,561 660 1.6x 3.9x 5.9x NM (3.3%) (57.7%) 28.0% (10.3%)
RE Sharing Economy / Travel
Mean 2.6x 5.5x 8.4x 34.6x 3% (53%) 28% 7%
Median 1.6x 3.9x 7.1x 34.6x 4% (53%) 28% 3%
4444
REAL ESTATE TECHNOLOGY ECOSYSTEM (CONT’D)
Source: Capital IQ as of 7/10/20.“NM” signifies multiple >40x.
($MM, except per share data)
Stock Trading Metrics Operating Metrics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin
Company 07/10/20 Value Debt Value CY19A CY20E CY19A CY20E CY19A CY20E 18A/19A 19A/20E CY19A CY20E
Broader Data
Experian plc $35.14 $31,886 $4,245 $36,131 $5,002 $5,034 7.2x 7.2x 21.3x 20.7x 3.3% 0.6% 33.8% 34.6%
TransUnion $83.05 15,763 3,498 19,261 2,648 2,571 7.3x 7.5x 18.3x 20.5x 14.3% (2.9%) 39.7% 36.6%
Equifax Inc. $163.11 19,799 3,138 22,937 3,503 3,664 6.5x 6.3x 19.5x 19.1x 2.7% 4.6% 33.6% 32.7%
Moody's Corporation $292.92 54,927 5,110 60,037 4,783 4,847 12.6x 12.4x 25.9x 26.1x 7.7% 1.3% 48.4% 47.4%
Fair Isaac Corporation $412.17 11,954 945 12,899 1,185 1,212 10.9x 10.6x 33.9x 31.8x 15.1% 2.2% 32.1% 33.5%
Broader Data
Mean 8.9x 8.8x 23.8x 23.7x 9% 1% 38% 37%
Median 7.3x 7.5x 21.3x 20.7x 8% 1% 34% 35%
GCA is a global investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks.
www.gcaglobal.com
This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third-party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision.
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