2015 Software Equity Group Flash Report and Financial and …sandhill.com/wp-content/files_mf/november_2015_monthly... · 2016-03-29 · Nothing in this Report is intended to be a

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Software Equity Group

Flash Report

Select M&A Transactions and Valuations and

Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

• Industry leading boutique investment bank, founded in

1992, representing public and private software and

internet companies seeking:

• Strategic exit

• Growth capital

• Buyout

• Inorganic growth via acquisition

• Buy and sell-side mentoring

• Fairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million

• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies

• Clients span virtually every software technology, product

category, delivery model and vertical market

• Global presence providing advice and guidance to more

than 2,000 private and public companies throughout US,

Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction,

operating, legal and engineering experience

• Unparalleled software industry reputation and track

record.

• Highly referenceable base of past clients

LEADERS IN SOFTWARE M&A

We Do Deals.

Copyright © 2015 by SEG Capital Advisors, L.L.C., All Rights Reserved

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine.

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please

[email protected] , 2800-509) 858Beible, Director, Business Development (Kris contact CONTACT INFORMATION:

SEG Capital Advisors, L.L.C 12220 El Camino Real, Suite 320 San Diego, CA 92130 www.softwareequity.com p: (858) 509-2800 The information contained in this Report is obtained from sources that SEG Capital Advisors LLC (“SEG”) believes to be reliable. However, SEG makes no representations or warranties, express or implied, about the accuracy, completeness or fairness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Any person or entity reviewing this report (a) should conduct its own diligence and reach its own conclusions regarding its business transactions, (b) should not rely upon any conclusions reached by SEG, and (c) should consult its own advisors regarding its tax, accounting, financial and/or business decisions. SEG or its affiliates may have an interest in one or more of the securities or companies discussed herein. Financial data was provided by Capital IQ. This Report may not be reproduced in whole or in part without the expressed prior written authorization of SEG. SEG or one of its affiliate Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

ABOUT SOFTWARE EQUITY GROUP


List of Commonly Used Acronyms

CRM Customer Relationship Management

EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization

ERP Enterprise Resource Planning

EV Enterprise Value

FCF Free Cash Flow

FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates

NASDAQ National Association of Securities Dealers Automated Quotation System

PLM Product Lifecycle Management

R&D Research and Development

S&P Standard & Poor's

SaaS Software-as-a-Service

SEG Software Equity Group

SG&A Selling, General, & Administrative

SW Software

TTM Trailing Twelve Month

YoY Year-over-Year

YTD Year-to-date


Additions:

Removals

Envivo, Inc.Acquired by Ericsson ($124.6M) - Internet Infrastructure


Company Ticker Previous Index Previous CategoryMerge Healthcare, Inc.

Acquired by IBM ($995.7M) - Software Healthcare

First Data Corporation FDC Software Financial & Accounting

SEG Index ChangesTicker Index CategoryCompany

Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index


SEG Software Index


SEG SaaS Index

SEG Internet Index


Select October 2015 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-01-2015 ShowingTime.com, Inc. 10K Research and Marketing, LLC - - - -Oct-01-2015 TSL Professional Products Ltd. Ad Infinitum Multimedia Ltd. - - - -Oct-01-2015 Spearmint Resources Inc. (TSXV:SRJ) Airshare, Inc. - $0.1 - -Oct-01-2015 Otavamedia Oy Alma 360 Oy - - - -Oct-01-2015 iWin, Inc. arcadetown.com - - - -Oct-01-2015 Autobytel Inc. (NasdaqCM:ABTL) AutoWeb, Inc. $4.8 $27.7 5.8x -Oct-01-2015 LGS Innovations LLC Axios, Inc. - - - -Oct-01-2015 Aptean, Inc. Coretrac, Inc. - - - -Oct-01-2015 Web Africa Networks CytoSolve (Pty)Ltd - - - -Oct-01-2015 OLIVER Group Dare Digital Ltd. - - - -Oct-01-2015 Re/Spec Inc. Flat Rock Geographics, LLC - - - -Oct-01-2015 Freshdesk Inc. Frilp - - - -Oct-01-2015 Premier Healthcare Solutions, Inc. InflowHealth LLC - $35.0 - -Oct-01-2015 Cross Communication Inc. JIN SOFTWARE Co., Ltd. - - - -Oct-01-2015 UXC Eclipse (New Zealand) Limited Koorb Consulting, Microsoft Dynamics AX and Microsoft Business Intelligence Divisions - - - -Oct-01-2015 initperdis GmbH LC Consultant SARL - - - -Oct-01-2015 Move, Inc. Reaslo Inc. - - - -Oct-01-2015 RobbinsKersten Direct RKD Alpha Dog - - - -Oct-01-2015 Devonshire Associates Ltd. Sales Evaluation Associates, Inc., SEA-RCH - - - -Oct-01-2015 RingCentral, Inc. (NYSE:RNG) Sikka Software Corporation - - - -Oct-01-2015 44 Interactive, Limited Partnership Social Bug, LLC - - - -Oct-02-2015 - C4U-Malta Ltd. - $3.4 - -Oct-02-2015 Havas SA (ENXTPA:HAV) Groupe CSA and Intervalles - - - -Oct-02-2015 Bankdata A/S Murex S.A.S - - - -Oct-02-2015 Versata Enterprises, Inc. Quantum Retail Technology, Inc. - - - -Oct-02-2015 Microsoft Corporation (NasdaqGS:MSFT) Telekinesys Research Ltd. - - - -Oct-02-2015 Apple Inc. (NasdaqGS:AAPL) VocalIQ Limited - - - -Oct-03-2015 Fatbuzz Limited Flame Multimedia Limited - - - -Oct-03-2015 Red Code Marketing Partners SL SeoJii, Inc. - - - -Oct-04-2015 Reveal USA, Inc. Expert IG Inc. and Q Data USA, Inc. - - - -Oct-05-2015 COMPAREX AG amando software GmbH - - - -Oct-05-2015 Wheatstone Corporation Audion Laboratories, Inc. - - - -Oct-05-2015 TrustYou GmbH Circos.com, Inc. - - - -Oct-05-2015 International Business Machines Corporation (NYSE:IBM) Cleversafe, Inc. - - - -Oct-05-2015 MDI Achieve, Inc. Data Control Technology International, Inc. - - - -Oct-05-2015 Signature Business Systems, Inc. Infinity Info Systems Corp. - - - -Oct-05-2015 Ookami Limited (ASX:OOK) Investia Technologies Pty Ltd - $0.7 - -Oct-05-2015 Media.Net Advertising FZ-LLC Local Corporation, Substantially All Assets - $3.1 - -Oct-05-2015 Apple Inc. (NasdaqGS:AAPL) Perceptio - - - -Oct-05-2015 Raytheon Company (NYSE:RTN) Raytheon Foreground Security - - - -Oct-05-2015 Volaris Group Inc. Red River Software, Inc. - - - -Oct-05-2015 REP B.V. Retailp S.A.S. - - - -Oct-05-2015 SkyBitz, Inc. SMARTLogix, Inc. - - - -Oct-05-2015 Signet Interactive LLC Think Uptown - - - -Oct-05-2015 Travelport Worldwide Limited (NYSE:TVPT) TraviAustria GmbH - - - -Oct-05-2015 - Xirxi Co. Ltd. - $5.7 - -Oct-06-2015 Bibliotheca RFID Library Systems AG 3M Company, Library Systems Business $100.0 - - -Oct-06-2015 Banzai Media S.R.L. AdKaora Srl - - - -Oct-06-2015 Domodi Sp. z o.o. Allani Sp. z o.o. - $3.0 - -Oct-06-2015 Digital Guardian, Inc. Code Green Networks, Inc. - - - -Oct-06-2015 OAO T8 Publishing Technologies Dream Industries, LLC, Theory and Practice Project - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-06-2015 ProQuest LLC Ex Libris Ltd. - - - -Oct-06-2015 AppTech Corp. (OTCPK:APCX) FlowPay Corporation - - - -Oct-06-2015 Four Communications Group plc Francis Balsom Associates Ltd - - - -Oct-06-2015 Performics Inc. Frubis S.R.L. - - - -Oct-06-2015 Lakana, Inc. Kixer, Inc. - - - -Oct-06-2015 D&S Communications, Inc. Mako Networks Ltd. - $2.0 - -Oct-06-2015 Teo LT, AB (NSEL:TEO1L) Omnitel UAB - $247.9 - -Oct-06-2015 Performics Inc. Performics Australia - - - -Oct-06-2015 SDNCentral LLC Rayno Media, Inc. - - - -Oct-06-2015 VASCO Data Security International Inc. (NasdaqCM:VDSI) Silanis Technology Inc. $15.4 $85.0 5.5x -Oct-06-2015 Partners Pharmacy, L.L.C. Tech Pharmacy Services, Inc. - - - -Oct-06-2015 Logical Position LLC TQ Global, Inc. - - - -Oct-06-2015 Rogue Wave Software, Inc. Zend Technologies Ltd. - - - -Oct-07-2015 Electronics for Imaging, Inc. (NasdaqGS:EFII) Corrugated Technologies, Inc. - - - -Oct-07-2015 IDERA, Inc. Embarcadero Technologies, Inc. - - - -Oct-07-2015 HomeAway, Inc. Emerald City All-Stars LLC - - - -Oct-07-2015 dmgi:land&property emea & apac Estate Technical Solutions Ltd - - - -Oct-07-2015 Pollen Street Capital Future Route Limited - - - -Oct-07-2015 Roxit Holding B.V. Green Valley B.V. - - - -Oct-07-2015 SWELL, LLC Letter 27, LLC - - - -Oct-07-2015 Foxit Software Incorporated LuraTech GmbH - - - -Oct-07-2015 Grupa Interia.pl Sp. z o.o. sp. k. Okazjum sp. z o.o. - - - -Oct-07-2015 Paid Inc. (OTCPK:PAYD) OpCenter LLC, SpiritRun Software - $0.2 - -Oct-07-2015 iProperty Group Limited (ASX:IPP) Prakard.com Company Limited - $2.0 - -Oct-07-2015 Ocito SAS Prochéo SARL - - - -Oct-07-2015 George P. Johnson Company Pulse220 - - - -Oct-07-2015 SAS Synodia Resamania SAS - - - -Oct-07-2015 uberall GmbH Spotistic UG (haftungsbeschraenkt) - - - -Oct-07-2015 Buildscale Inc. Switch Merge Ltd. - - - -Oct-07-2015 PAID Run, LLC SWK Technologies, Inc., BeerRun Software - $0.1 - -Oct-07-2015 Stuller, Inc. TDM Solutions SLU - - - -Oct-07-2015 Q1 Productions, LLC Think Marketing - - - -Oct-07-2015 Pandora Media, Inc. (NYSE:P) Ticketfly, Inc. $65.9 $443.3 6.7x -Oct-07-2015 CyberArk Software, Ltd. (NasdaqGS:CYBR) Viewfinity, Inc. - $30.5 - -Oct-08-2015 Roper Technologies, Inc. (NYSE:ROP) Aderant Holdings, Inc. - $675.0 - -Oct-08-2015 Superloop Limited (ASX:SLC) APEXn Pty Ltd - $4.3 - -Oct-08-2015 Groupe Figaro SAS Benchmark Group S.A. - - - -Oct-08-2015 Open Text Corporation (NasdaqGS:OTEX) Daegis Inc. $23.7 $20.8 0.9x 24.7xOct-08-2015 Rapid Addition Limited DET Technologies s.r.o. - - - -Oct-08-2015 Webinterpret S.A.S. Ekos Global Ltd. - - - -Oct-08-2015 GetYourHero S.L. Helpling España S.L. - - - -Oct-08-2015 RiskIQ, Inc. PassiveTotal LLC - - - -Oct-08-2015 Certinergy Solutions Quelle Energie SARL - - - -Oct-08-2015 IDOX plc (AIM:IDOX) Reading Room, Ltd. $15.0 $8.6 0.6x 18.7xOct-08-2015 China Internet Plus Group Shanghai Han Tao Information Consultation Co. Ltd. - - - -Oct-08-2015 CDI-AndersElite Limited Ship Shape Resources Limited, Recruitment Business - - - -Oct-08-2015 The Stagwell Group SKDKnickerbocker LLC $50.0 - - -Oct-08-2015 Phase 3 Marketing & Communications Sullivan Branding, LLC - - - -Oct-08-2015 Morningstar Inc. (NasdaqGS:MORN) Total Rebalance Expert Inc. - - - -Oct-08-2015 Clayton Holdings LLC ValuAmerica, Inc. - - - -Oct-08-2015 Pocket Games, Inc. (OTCPK:PKGM) Viximo, Inc. - $3.5 - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-09-2015 ITM Group Gemba Solutions Limited - - - -Oct-09-2015 SGS International Inc. Multi-Ad Services, Inc. - - - -Oct-09-2015 The Bitcoin Co-op NewsBTC Canada - - - -Oct-12-2015 BitRush Corp. (DB:0XSN) AdBit Limited - - - -Oct-12-2015 Be Heard Group plc (AIM:BHRD) Agenda 21 Digital Holding Limited - $18.3 - -Oct-12-2015 Contrat Facile SAS AlloLeCiel.fr - - - -Oct-12-2015 Spearhead Integrated Marketing Communication Group (SZSE:300071) Allyes Information Technology Co., Ltd. $227.2 $73.9 0.3x -Oct-12-2015 incadea GmbH (Austria) Beri Italia S.R.L., DMS Business Division - - - -Oct-12-2015 Gordon Flesch Company, Inc. Cambridge Connections LLC - - - -Oct-12-2015 Cross Street LLC Double Line, Inc. $20.0 - - -Oct-12-2015 Oesterreichische Post AG (WBAG:POST) EMD GmbH - - - -Oct-12-2015 - Expandia Pty Ltd - - - -Oct-12-2015 Design Kreatives, Inc. MSC Group Inc. - - - -Oct-12-2015 SAP SE (DB:SAP) MULTIPOSTING, SASU - - - -Oct-12-2015 Gilbarco Inc. Odysii Ltd. - - - -Oct-12-2015 The Boeing Company (NYSE:BA) Peters Software GmbH - - - -Oct-12-2015 RetailNext, Inc. Pikato, Inc. - - - -Oct-12-2015 Marvel Prototyping Ltd Plexi - - - -Oct-12-2015 Clearlake Capital Group, L.P. Syncsort Incorporated - - - -Oct-12-2015 Avexa Ltd. (ASX:AVX) Tali Health Pty Ltd - $4.1 - -Oct-12-2015 Hotcourses Ltd The Complete University Guide Ltd - - - -Oct-12-2015 PTC Inc. (NasdaqGS:PTC) Vuforia Business And Qualcomm Connected Experiences Switzerland AG - $65.0 - -Oct-12-2015 Rigor, LLC Zoompf Inc. - - - -Oct-13-2015 Now News Digital Media Technology Co. Ltd. (OTCPK:NDMT) Beijing Xintongying Culture and Communications Co. Ltd. - - - -Oct-13-2015 AirWatch, LLC Boxer Inc. - - - -Oct-13-2015 Simply Measured, Inc. DataRank, Inc. - - - -Oct-13-2015 Firebase, Inc. Divshot, Inc. - - - -Oct-13-2015 Ingram Micro Inc. (NYSE:IM) Docdata - $175.0 - 9.7xOct-13-2015 Progenics Pharmaceuticals, Inc. (NasdaqGS:PGNX) EXINI Diagnostics AB (publ) $1.1 $7.1 6.3x -Oct-13-2015 Gravity4, Inc. Exovue Holdings LLC - - - -Oct-13-2015 Cleanify Holdings Inc Helpling Canada - - - -Oct-13-2015 Buyers Lab LLC InfoTrends, Inc. - - - -Oct-13-2015 Colorado Pot Guide KindReviews, LLC - - - -Oct-13-2015 Hyland Software, Inc. LawLogix Group, Inc. - - - -Oct-13-2015 Projectline Services, Inc. Lead Lizard LLC - - - -Oct-13-2015 Ubisoft Holdings Inc. Longtail Studios Halifax Inc. - - - -Oct-13-2015 Toshiba Medical Systems Corporation Olea Medical SA - - - -Oct-13-2015 Eros Digital Private Limited PingTune - - - -Oct-13-2015 Dentsu Aegis Network Ltd. Pontomobi Tecnologia Informatica Ltda. $5.2 - - -Oct-13-2015 Altisource Portfolio Solutions S.A. (NasdaqGS:ASPS) REIsmart, LLC and RentRange LLC and Onit Solutions, LLC - $24.5 - -Oct-13-2015 Rapid7 LLC RevelOps, Inc. - $71.1 - -Oct-13-2015 VeriFone Systems, Inc. (NYSE:PAY) RideCharge, Inc. - - - -Oct-13-2015 GoodCall, LLC SchoolSoup.com - - - -Oct-13-2015 Sepialine, Inc. Technesis, Inc. - - - -Oct-13-2015 Little Internet Pvt. Ltd. Tri Innovations Private Limited - - - -Oct-13-2015 Uniguest Inc. Vertical Systems Inc. - - - -Oct-13-2015 Zendesk, Inc. (NYSE:ZEN) We Are Cloud SAS - $45.0 - -Oct-14-2015 Shenzhen Kingdom Technology Co.,Ltd. (SHSE:600446) China M-World Co.,Ltd. - $83.5 - -Oct-14-2015 Link Market Services Limited HCE Haubrok AG $5.7 - - -Oct-14-2015 PhishMe, Inc. Malcovery Security, LLC - - - -Oct-14-2015 Group 7even, LLC Morse & Harris Marketing, LLC - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-14-2015 Ellie Mae, Inc. (NYSE:ELLI) Mortgage Returns LLC - - - -Oct-14-2015 Kosmos, SAS NFrance Conseil S.A.S. $2.9 - - -Oct-14-2015 Covenant Review, LLC PacerMonitor, LLC - - - -Oct-14-2015 Trimble Navigation Limited (NasdaqGS:TRMB) PocketMobile Communications AB - - - -Oct-14-2015 Jobookit Holdings Ltd. (TASE:JBKT) Redmatch Ltd. - $1.6 - -Oct-14-2015 Ecova, Inc. Retroficiency, Inc. - - - -Oct-14-2015 LOV USA, LLC Smooch Labs, Inc. - $17.0 - -Oct-14-2015 Wombat Security Technologies, Inc. ThreatSim - - - -Oct-14-2015 Southern Motor Carriers Rate Conference, Inc. Transportation Costing Group, Inc. - - - -Oct-14-2015 Keiretsu Forum Northwest ZINO Society, LLC - - - -Oct-15-2015 Salvia Développement SAS A.S.C.-Immo NV And ID BAT $4.6 - - -Oct-15-2015 Bisnode Business Information Group AB AIS Nordic - $7.9 - -Oct-15-2015 Auction.com, LLC Allre, Inc. - - - -Oct-15-2015 Publicis Chemistry August Media Limited - - - -Oct-15-2015 N-able Technologies, Inc. BeAnywhere,Lda - - - -Oct-15-2015 Evolution1, Inc. Benaissance LLC $13.3 $80.0 6.0x -Oct-15-2015 Inshorts Medialabs Private Limited BG Mobility Labs Private Ltd. - - - -Oct-15-2015 Granicus Inc. Civica Software, Inc. - - - -Oct-15-2015 VersionOne, Inc. ClearCode Labs, Inc. - - - -Oct-15-2015 Digitex Informática, S.L.U. Clientis Gestão de Qualidade Ltda. - - - -Oct-15-2015 Invigor Group Limited (ASX:IVO) Condat AG $6.2 $3.3 0.5x -Oct-15-2015 SpareBank 1 Nord-Norge (OB:NONG) mCASH Norge AS - - - -Oct-15-2015 Linkfluence SAS Ostrakon Software (Shanghai) Co. Ltd. - - - -Oct-15-2015 Plus8 Global Ventures, Ltd. (CNSX:PGT) ParcelPal - - - -Oct-15-2015 Gimbal, Inc. Phigital, Inc. - - - -Oct-15-2015 Aareon Nederland B.V. Square DMS Groep B.V. - - - -Oct-15-2015 Ansira, Inc. Square One Advertising, Inc. - $55.0 - -Oct-15-2015 Selligent S.A. StrongView Systems, Inc. - - - -Oct-15-2015 Velocity Mobile Limited Tab Payments, Corp. - - - -Oct-15-2015 Molera Alvarez, LLC Urias Communications, LLC - - - -Oct-16-2015 Syngenta AG (SWX:SYNN) Ag Connections, LLC - - - -Oct-16-2015 Red Hat, Inc. (NYSE:RHT) Ansible, Inc. - - - -Oct-16-2015 Deluxe Corp. (NYSE:DLX) Datamyx LLC - $160.0 - -Oct-16-2015 AutoScout24 GmbH easyautosale GmbH - - - -Oct-16-2015 EMERAM Capital Partners GmbH Matrix42 AG - - - -Oct-16-2015 Lonsdale Capital Partners LLP Ocean Media Group Limited - - - -Oct-16-2015 Arasero Trading Limited Verisim Limited - - - -Oct-16-2015 UXC Eclipse (USA) Inc. WineDirect, Inc., ERP Business - - - -Oct-16-2015 Alibaba Group Holding Limited (NYSE:BABA) Youku Tudou Inc. (NYSE:YOKU) $926.0 $4,481.8 4.8x 64.5xOct-17-2015 Zhejiang Century Huatong Group Co., Ltd. (SZSE:002602) China Mobile Games and Entertainment Group Limited $240.6 $959.4 4.1x 19.2xOct-18-2015 Coty Inc. (NYSE:COTY) Beamly Limited - - - -Oct-18-2015 Dentsu Aegis Network Ltd. Fountainhead Entertainment Pvt. Ltd. $5.3 - - -Oct-18-2015 Time Inc. (NYSE:TIME) HelloGiggles.com, LLC - - - -Oct-18-2015 The Reynolds and Reynolds Company International Document Services, Inc. - - - -Oct-19-2015 Unbound Commerce, Inc. Apptive, Inc. - - - -Oct-19-2015 Alma Mediapartners Oy Autosofta Oy $0.6 - - -Oct-19-2015 Diligent Corporation (NZSE:DIL) BoardLink - $10.0 - -Oct-19-2015 iModules Software, Inc. Campus Labs, LLC - $91.0 - -Oct-19-2015 Adapt IT (Pty) Limited CQS Technology Holdings (Pty) Ltd. - $16.3 - 6.1xOct-19-2015 Enghouse Systems Limited (TSX:ESL) CTI Group Holdings Inc. $17.5 $17.3 1.0x 8.6xOct-19-2015 KSIX Media Holdings, Inc. (OTCPK:KSIX) DigitizeIQ, LLC - $1.4 - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-19-2015 TriPlay Communications Ltd. eMusic.com Inc. - - - -Oct-19-2015 IVANS Insurance Solutions EvoSure LLC - - - -Oct-19-2015 - Horyzon Media SA - - - -Oct-19-2015 Model N, Inc. (NYSE:MODN) InfoNow Corporation (OTCPK:INOW) - - - -Oct-19-2015 CJSC ER-Telecom Holding JSC Megapolis-Telekom - - - -Oct-19-2015 ReWorld Media SA (ENXTPA:ALREW) Solocal Group S.A., ZoomOn Platform - - - -Oct-19-2015 Strativity Group, Inc. Touchpoint Dashboard, LLC - - - -Oct-19-2015 Thales e-Security, Inc. Vormetric, Inc. $53.5 $400.0 7.5x -Oct-20-2015 Talbot Marketing Inc. A.A. Advertising Ltd. - - - -Oct-20-2015 Entech Consulting, LLC All1Team, Inc. - - - -Oct-20-2015 - Beijing YZH Wireless Net Technology Co., Ltd. $0.3 $0.2 0.5x -Oct-20-2015 SintecMedia Ltd. Broadway Systems, LLC - - - -Oct-20-2015 Gravity4, Inc. Conyak Europe Aps - - - -Oct-20-2015 China National Culture Group Limited (SEHK:745) Dynamic Thinker Limited - $20.7 - -Oct-20-2015 Transcendence Technologies Limited E-Collate Pty Ltd - $0.2 - -Oct-20-2015 Asentinel LLC eMOBUS, Inc. - - - -Oct-20-2015 Informa plc (LSE:INF) FIME, Inc. - - - -Oct-20-2015 Carshare Ventures B.V. FlexiDrive Sverige AB - - - -Oct-20-2015 Nav, Inc. Fundastic, Inc. - - - -Oct-20-2015 Enrollment Advisors, Inc. HighRoads, Inc., Employer Technology Division - - - -Oct-20-2015 SMART OUTSOURCING, S.L. Internet Advantage, S.L. - - - -Oct-20-2015 Cologix, Inc. Net Access Corporation - - - -Oct-20-2015 Electra Private Equity Plc (LSE:ELTA); Exponent Private Equity LLP; Electra PhotoBox Limited $333.0 $618.6 1.9x 14.0xOct-20-2015 Vote Squared Rate My Government - - - -Oct-20-2015 Fusion Partners Co. (TSE:4845) TriAx Corp. $1.6 $1.2 0.7x -Oct-20-2015 ProductGram, Inc. Yardsale Inc. - - - -Oct-20-2015 Funding Circle Limited Zencap Deutschland GmbH - - - -Oct-21-2015 Danfoss A/S Advitronic Engingeering B.V. - - - -Oct-21-2015 Nitro Software, Inc. Daggerboard, Inc. - - - -Oct-21-2015 Rodan Energy Solutions Inc. Energent Incorporated - - - -Oct-21-2015 Vectorworks, Inc. ESP Vision Inc. - - - -Oct-21-2015 Twitter, Inc. (NYSE:TWTR) Fastlane - - - -Oct-21-2015 Mashape, Inc. Gelato.io Limited - - - -Oct-21-2015 S-Money SAS Lakooz SAS - - - -Oct-21-2015 Harvest One Capital Inc Mobile Corporation - - - -Oct-21-2015 City & Guilds Kineo Limited Nine Lanterns Pty Ltd. - - - -Oct-21-2015 Parclick S.L. Parkings City Services SARL $2.0 - - -Oct-21-2015 Wizishop, S.A.RL Quaelead S.A.S. - - - -Oct-21-2015 The Drummond Press Inc. Rehg Group, Inc. - - - -Oct-21-2015 Xamarin Inc. RoboVM AB - - - -Oct-21-2015 Thoma Bravo, LLC; Silver Lake SolarWinds, Inc. $485.9 $4,446.3 9.2x 29.6xOct-21-2015 Fork Media Private Limited Spid Info Media Pvt Ltd - - - -Oct-21-2015 Citrus Payment Solutions Pvt. Ltd. Zwipe Payment Technologies Private Limited - - - -Oct-22-2015 CREALOGIX Holding AG (SWX:CLXN) 80% in Elaxy Financial Software & Solutions And 20% in Elaxy Business Solution & Services $88.6 - - -Oct-22-2015 ROLI Ltd. Blend.io, Inc. - - - -Oct-22-2015 Ruckus Wireless, Inc. (NYSE:RKUS) Cloudpath Networks, Inc. - - - -Oct-22-2015 A Brand Company, Inc. Design Accessories, Inc. - - - -Oct-22-2015 - Duuzra Software International Ltd - - - -Oct-22-2015 QBNK Holding AB (publ) (XSAT:QBNK) Exigus AB - $0.4 - -Oct-22-2015 COSMO CONSULT AG Iniker S.A. $8.9 - - -Oct-22-2015 Trozzolo Communications Group, Inc. Kuhn & Wittenborn Advertising, Inc. - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-22-2015 Netsmart Technologies Inc. Lavender & Wyatt Systems, Inc. - - - -Oct-22-2015 Bridgestone Americas, Inc. TireConnect - - - -Oct-22-2015 Eze Software Group LLC TKS Solutions, LLC - - - -Oct-22-2015 Interactive Factory Inc. TWS GROUP LLC - - - -Oct-22-2015 Dentsu Aegis Network Ltd. ZoneFranche SAS $4.8 - - -Oct-23-2015 Co-Communications, Inc. 341 Studios, LLC - - - -Oct-23-2015 - ASN Technologies, Inc. - $0.0 - -Oct-23-2015 Netwrk Access National LLC ERF Wireless, Inc., Certain Assets Of Energy Broadband, Enterprise Network And Wireless Bundled - - - -Oct-23-2015 NDD Eidikes Ekdoseis Ltd. Phil-O-Media Ltd. - $1.1 - -Oct-23-2015 TiER1 Performance Solutions, LLC Sealund & Associates Corporation - - - -Oct-25-2015 Securitas AB (OM:SECU B) Diebold, Incorporated, Diebold Electronic Security $330.0 $350.0 1.1x -Oct-26-2015 Hunan TV & Broadcast Intermediary Co., Ltd. (SZSE:000917) Adwo Inc. $34.2 $163.7 4.8x -Oct-26-2015 Roper Technologies, Inc. (NYSE:ROP) Atlas Medical Software - $48.0 - -Oct-26-2015 Spectra Ticketing & Fan Engagement Ballena Technologies, Inc. - - - -Oct-26-2015 Ciwen Media Group Co.,Ltd. Beijing Zctech Technology Co., Ltd. - $173.2 - -Oct-26-2015 FTPI Representação Publicidade Marketing Ltda. Boo Box Aplicativos Para Internet Ltda - - - -Oct-26-2015 Roper Technologies, Inc. (NYSE:ROP) CliniSys Solutions Limited - $261.1 - -Oct-26-2015 West Monroe Partners, LLC Etherios, Inc. - $9.0 - -Oct-26-2015 3D Medical Limited (ASX:3DM) Mach7 Technologies, Inc. - $43.0 - -Oct-26-2015 Cisco Systems, Inc. (NasdaqGS:CSCO) ParStream GmbH - - - -Oct-26-2015 Apex Energies S4E - SARL - - - -Oct-26-2015 Intel Corporation (NasdaqGS:INTC) Saffron Technology, Inc. - - - -Oct-26-2015 Hunan TV & Broadcast Intermediary Co., Ltd. (SZSE:000917) Shanghai Jiuzhirun Information Technology Co., Ltd. - $121.5 - -Oct-27-2015 Reed Business Information Ltd. Adaptris Limited - - - -Oct-27-2015 Eaton Towers Limited Bharti Airtel International (Netherlands) BV, 9000 African Telecom Towers - - - -Oct-27-2015 GCommerce, Inc. CollisionSync, LLC. - - - -Oct-27-2015 Seven Academy SAS Edoki Academy - - - -Oct-27-2015 Ehrhardt + Partner GmbH & Co. KG ExperTeam AG - - - -Oct-27-2015 Time Inc. (UK) Ltd. International Craft & Hobby Fair Limited - - - -Oct-27-2015 Cisco Systems, Inc. (NasdaqGS:CSCO) Lancope, Inc. - $452.5 - -Oct-27-2015 Intellectsoft LLC Mobile Roadie, LLC - - - -Oct-27-2015 Wirecard AG (XTRA:WDI) Payments Business and 60% Stake in GI Technology Private Limited - $375.3 - -Oct-27-2015 Raycom Media, Inc. Pure Auto LLC - $125.0 - -Oct-27-2015 Catena Media plc (OM:CTM) Right Casino Media Limited - $9.0 - -Oct-27-2015 TMG Consulting, Inc. RIM Solutions - - - -Oct-27-2015 The Pursuant Group, Inc. ShareRewards, LLC - - - -Oct-27-2015 VGW Holdings Limited Synergy Plus Limited $1.9 - - -Oct-27-2015 GWA Business Solutions Inc. TDI Computer Systems Limited, Sage 300 practice - - - -Oct-27-2015 - Valpak Direct Marketing Systems, Inc., Valpak of Coastal Carolina - - - -Oct-27-2015 Zazoom Media Group, LLC Veuer LLC - - - -Oct-27-2015 Locodel Solutions Pvt. Ltd. Whitekoala Technology Pvt Ltd - - - -Oct-27-2015 TravelClick, Inc. ZDirect, Inc. - - - -Oct-27-2015 Datamyne, Inc. Zepol Corporation - - - -Oct-28-2015 Cisco Systems, Inc. (NasdaqGS:CSCO) 1 Mainstream, Inc. - - - -Oct-28-2015 whiteclouds inc. 3DPlusMe, Inc. - - - -Oct-28-2015 Digital Asset Holdings, LLC Blockstack Inc. - - - -Oct-28-2015 BWG Investments & Development, Ltd. Blue Water Bar & Grill, Inc. $0.0 - - -Oct-28-2015 Citrus:Mix Ltd. h-events - - - -Oct-28-2015 - HomeSphere, LLC - - - -Oct-28-2015 Greenlane Search Marketing, LLC I Like Consulting LLC - - - -Oct-28-2015 GL Events (ENXTPA:GLO) Jaulin Groupe $42.1 - - -


Acquirer



Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAOct-28-2015 PricewaterhouseCoopers LLP, Investment Arm Kusiri Limited - - - -Oct-28-2015 HarperCollins Publishers L.L.C. Libboo, Inc., The Midlist - - - -Oct-28-2015 International Business Machines Corporation (NYSE:IBM) The Weather Company, Product and Technology Businesses - - - -Oct-28-2015 Magictiger.com Zoyo Fashion Exports Private Limited - - - -Oct-29-2015 Omnicell International, Inc. Aesynt Incorporated $182.0 $275.0 1.5x 13.8xOct-29-2015 Blippar.Com Limited Binocular Inc - - - -Oct-29-2015 LifeLock, Inc. (NYSE:LOCK) Bop FM, Inc. - - - -Oct-29-2015 Kinnser Software, Inc. CKS Productions, Inc. - - - -Oct-29-2015 Image Technology Laboratories Inc. (OTCPK:IMTL) Clear Arts, Inc. - - - -Oct-29-2015 Delphi Automotive PLC (NYSE:DLPH) Control-Tec LLC - $145.0 - -Oct-29-2015 Antevenio S.A. (ENXTPA:ALANT) Coobis - - - -Oct-29-2015 Porch.com, Inc. Fountain Software Inc. - - - -Oct-29-2015 Outerwall Inc. (NasdaqGS:OUTR) Gazelle, Inc., Certain Assets and Liabilities - $18.0 - -Oct-29-2015 Fractal Analytics Inc. Imagna Analytics Solutions Private Limited - - - -Oct-29-2015 Sonata Software North America Inc. Interactive Business Information Systems, Inc. - $14.0 - -Oct-29-2015 HCL Technologies Ltd. (NSEI:HCLTECH) PowerTeam, Inc. $37.0 $46.0 1.2x -Oct-29-2015 GeoPost SA Resto-in S.A. $17.5 - - -Oct-29-2015 Senior Sistemas S.A. Softran Informatica do Transporte Ltda. - - - -Oct-29-2015 Przedsiebiorstwo Telekomunikacyjne Telgam Spólka Akcyjna (WSE:TLG) Tel Mobile Sp. z o.o. $0.9 - - -Oct-30-2015 Zhejiang Century Huatong Group Co., Ltd. (SZSE:002602) 100% stake in Diandian Interactive (Beijing) Technology Co., Ltd. and DianDian Interactive Holding - $1,097.6 - -Oct-30-2015 Fields Manufacturing, Inc. American Greenwood, Inc. - - - -Oct-30-2015 Infocert S.P.A. Eco-Mind APP Factory S.r.l. - $0.7 - -Oct-30-2015 Xevin Investments sp. z o.o. Gadu-Gadu S.A. - - - -Oct-30-2015 Securus Technologies, Inc. Guarded Exchange, LLC - - - -Oct-30-2015 Heartland Payment Systems, Inc. (NYSE:HPY) Menusoft Systems Corp. - $18.7 - -Oct-30-2015 CTBC Serviços de Call Center S.A. Optitel Participacoes e Franquia S.A. - $14.7 - -Oct-30-2015 Credit Risk Management, L.L.C. Upland Analytics, LLC - - - -Oct-30-2015 Xelent AB Xelent Drift AB - - - -Oct-31-2015 Forcepoint LLC McAfee Inc., McAfee Next-Generation Firewall and McAfee Firewall Enterprise Businesses - - - -

Acquirer


SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Software Index $2,821.2 $2,682.9 $684.2 67.5% 19.0% 6.8% 2.8x 15.2x 2.7x 11.3x 6.2% Billing & Service Management $1,095.9 $1,187.0 $551.8 59.3% 23.9% -0.4% 1.8x 9.1x 1.8x 7.2x -13.1% Business Intelligence $2,282.6 $2,284.9 $590.0 75.4% 17.2% 10.1% 3.2x 16.1x 2.7x 14.2x 1.3% Development Platforms $1,219.2 $1,145.3 $362.7 75.4% 19.0% 11.4% 2.4x 14.3x 2.5x 8.4x 14.7% Engineering & PLM $4,046.1 $4,440.8 $1,255.2 84.1% 22.9% 8.1% 3.5x 17.1x 3.6x 12.1x 16.0% Enterprise Resource Planning $9,086.5 $9,733.2 $2,172.2 59.6% 27.1% 4.8% 4.0x 15.7x 4.0x 12.0x 15.0% Financial & Accounting $2,848.7 $3,523.1 $933.2 56.0% 24.3% 4.7% 3.8x 16.2x 3.8x 13.8x 14.6% Gaming $3,242.3 $2,962.1 $1,675.3 68.8% 9.2% 3.8% 2.0x 16.7x 1.7x 13.3x 49.6% Healthcare $1,861.2 $2,658.8 $764.2 51.8% 14.2% 10.4% 2.1x 13.0x 1.8x 9.6x -2.1% IT Conglomerates $135,893.0 $152,199.2 $83,795.0 59.6% 32.2% -1.1% 4.0x 9.6x 3.9x 8.6x -11.2% Mobile Solutions/Content $431.0 $417.6 $364.1 54.1% 4.4% 18.1% 1.5x 17.9x 1.3x 8.5x -15.2% Networking & Network Performance Mgmt $1,023.8 $810.5 $298.9 75.5% 18.0% 4.9% 2.6x 12.5x 2.3x 8.9x -10.1% Security $1,404.7 $1,336.8 $249.8 74.7% 4.1% 17.4% 3.8x 12.4x 4.1x 14.6x 19.3% Storage, Data Mgmt & Integration $7,215.2 $6,359.8 $2,239.0 80.1% 11.3% 2.8% 2.3x 9.9x 2.2x 7.3x -10.1% Systems Management $12,675.6 $12,466.6 $2,977.7 84.7% 22.0% 8.9% 3.6x 15.5x 2.8x 11.1x 6.9% Vertical - Finance $6,879.3 $6,906.3 $1,053.2 42.9% 32.7% 6.6% 4.8x 14.0x 4.6x 11.6x 32.8% Vertical - Other $2,836.6 $3,060.8 $478.1 47.3% 14.9% 12.5% 5.0x 29.8x 4.2x 19.7x 50.1%

TTM Revenue Growth 6.8%TTM EBITDA Growth 6.0%TTM Earnings Growth -2.4%Gross Profit Margin 67.5%EBITDA Margin 19.0%Net Income Margin -17.6%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 18.3%

Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 12.1%Avg Days Outstanding: Accounts Receivable 65Avg Days Outstanding: Accounts Payable 25Working Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 5.6%Cash from Operations Growth (YoY) 33.4%Cash from Investing Growth (YoY) -37.2%Cash from Financing Growth (YoY) -10.9%Levered FCF Growth (YoY) 42.5%

Copyright © 2015 by SEG Capital Advisors, L.L.C., All Rights Reserved November 2015 Monthly Flash Report

Category Name

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-15%

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0%

5%

10%

15%

20%SEG SW Index Software Stock Market Return: January - October 2015

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmdocs Limited DOX $9,154.4 $7,752.7 $3,643.5 35.5% 19.3% 2.2% 2.1x 11.0x 2.0x 9.8x 29.3%CSG Systems International CSGS $1,095.9 $1,187.0 $748.9 48.8% 17.5% -0.4% 1.6x 9.0x 1.5x 6.9x 39.4%Evolving Systems EVOL $66.9 $56.7 $26.1 75.6% 23.9% -8.9% 2.2x 9.1x 1.8x 7.6x -35.7%MIND C.T.I. MNDO $49.5 $33.1 $22.6 59.3% 34.1% -4.1% 1.5x 4.3x n/a n/a -29.3%NeuStar NSR $1,441.5 $1,867.1 $1,022.2 74.2% 39.9% 7.7% 1.8x 4.6x 1.7x 3.8x -2.0%Redknee Solutions RKN $302.1 $263.4 $222.7 58.6% 11.4% -13.6% 1.2x 10.3x 1.1x 7.2x -13.1%Synchronoss Technologies SNCR $1,543.1 $1,576.2 $551.8 59.3% 28.5% 30.1% 2.9x 10.0x 2.4x 7.1x -15.2%

Median: $1,095.9 $1,187.0 $551.8 59.3% 23.9% -0.4% 1.8x 9.1x 1.8x 7.2x -13.1%

TTM Revenue Growth -0.4%TTM EBITDA Growth 18.7%TTM Earnings Growth 21.8%Gross Profit Margin 59.3%EBITDA Margin 23.9%Net Income Margin 12.2%SG&A Expenses as a % of Total Revenue 19.5%R&D Expenses as a % of Total Revenue 13.8%







-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Billing and Service Management Software Stock Market Return: January - October 2015

Billing & Service Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Business Intelligence


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDFair Isaac FICO $2,876.2 $3,439.8 $838.8 67.7% 22.6% 6.3% 4.1x 18.1x 3.9x 14.2x 28.1%MicroStrategy MSTR $1,955.5 $1,498.7 $535.2 79.6% 26.2% -10.3% 2.8x 10.7x 2.7x 9.0x 5.5%Pegasystems PEGA $2,131.4 $1,907.4 $647.3 68.1% 12.6% 12.7% 2.9x 23.4x 2.6x 18.3x 37.6%Progress Software PRGS $1,219.2 $1,145.3 $362.7 87.4% 20.1% 11.4% 3.2x 15.7x 2.7x 8.2x -9.2%PROS Holdings PRO $711.7 $668.0 $180.1 66.4% -16.6% 5.4% 3.7x n/a 3.8x n/a -9.3%Qlik Technologies QLIK $2,917.8 $2,596.6 $590.0 85.7% 0.5% 10.1% 4.4x 969.2x 3.8x 37.5x 1.3%Software AG XTRA:SOW $2,282.6 $2,284.9 $963.0 75.4% 28.6% -2.2% 2.4x 8.3x 2.3x 8.4x 20.4%Splunk SOW $7,215.2 $6,359.8 $537.4 83.8% -42.0% 46.8% 11.8x n/a 8.9x 150.2x -4.5%Teradata NYSE:TDC $3,980.4 $3,659.4 $2,572.0 51.9% 17.2% -6.1% 1.4x 8.3x 1.4x 5.8x -36.1%Varonis Systems TDC $398.0 $293.1 $117.1 90.2% -17.8% 25.5% 2.5x n/a 2.1x n/a -51.8%Verisk VRSK $12,132.8 $15,158.7 $1,972.3 60.8% 46.8% 16.1% 7.7x 16.4x 6.6x 14.2x 11.9%

Median: $2,282.6 $2,284.9 $590.0 75.4% 17.2% 10.1% 3.2x 16.1x 2.7x 14.2x 1.3%

TTM Revenue Growth 10.1%TTM EBITDA Growth -25.2%TTM Earnings Growth -8.8%Gross Profit Margin 75.4%EBITDA Margin 17.2%Net Income Margin 4.2%SG&A Expenses as a % of Total Revenue 44.7%R&D Expenses as a % of Total Revenue 15.7%


Levered FCF Margin 12.1%Cash from Operations Growth (YoY) 25.7%Cash from Investing Growth (YoY) -23.7%Cash from Financing Growth (YoY) 57.0%Levered FCF Growth (YoY) 36.1%





-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Business Intelligence Software Stock Market Return: January - October 2015

Business Intelligence S&P NASDAQ SEG SW Index

SEG Software Index Category: Development Platforms


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBSQUARE BSQR $129.9 $100.4 $107.2 19.0% 6.6% 11.5% 0.9x 14.3x n/a n/a 140.7%Magic Software Enterprises MGIC $238.5 $163.9 $170.7 36.9% 17.2% 4.7% 1.0x 5.6x 0.9x n/a -7.4%Progress Software PRGS $1,219.2 $1,145.3 $362.7 87.4% 20.1% 11.4% 3.2x 15.7x 2.7x 8.2x -9.2%Red Hat RHT $14,461.6 $14,013.8 $1,905.0 84.8% 19.0% 14.3% 7.4x 38.8x 6.4x 24.1x 14.7%Software AG XTRA:SOW $2,282.6 $2,284.9 $963.0 75.4% 28.6% -2.2% 2.4x 8.3x 2.3x 8.4x 20.4%

Median: $1,219.2 $1,145.3 $362.7 75.4% 19.0% 11.4% 2.4x 14.3x 2.5x 8.4x 14.7%

TTM Revenue Growth 11.4%TTM EBITDA Growth 2.4%TTM Earnings Growth 5.2%Gross Profit Margin 75.4%EBITDA Margin 19.0%Net Income Margin 9.1%SG&A Expenses as a % of Total Revenue 39.3%R&D Expenses as a % of Total Revenue 12.4%







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0%

5%

10%

15%

20%Development Platforms Software Stock Market Return: January - October 2015

Development Platforms S&P NASDAQ SEG SW Index

SEG Software Index Category: Engineering & PLM


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDANSYS ANSS $8,591.6 $7,750.5 $945.5 88.2% 45.6% 3.0% 8.2x 18.0x 7.8x 15.5x 16.7%Aspen Technology AZPN $3,447.2 $3,265.7 $453.6 88.9% 43.1% 10.4% 7.2x 16.7x 6.9x 14.7x 18.2%Autodesk ADSK $12,483.9 $11,580.2 $2,538.6 85.8% 7.9% 7.1% 4.6x 57.6x 4.9x 168.3x -7.3%Cadence Design Systems CDNS $6,610.4 $6,247.9 $1,684.1 86.0% 23.7% 9.7% 3.7x 15.7x 3.5x 11.0x 18.0%Dassault Systèmes DSY $20,072.3 $18,737.8 $3,031.3 84.1% 26.5% 24.2% 6.2x 23.3x 5.6x 16.2x 30.0%GSE Systems GVP $24.3 $14.6 $55.7 25.1% -1.0% 50.2% 0.3x n/a n/a n/a -12.8%Mentor Graphics MENT $3,188.6 $3,163.5 $1,285.0 85.5% 22.9% 8.1% 2.5x 10.8x 2.4x 10.3x 25.8%Parametric Technology PTC $4,046.1 $4,440.8 $1,255.2 73.3% 20.2% -7.5% 3.5x 17.5x 3.7x 13.2x -2.5%PDF Solutions PDFS $333.9 $207.7 $100.0 61.6% 27.3% -1.2% 2.1x 7.6x 1.9x 6.0x -27.9%Stratasys SSYS $1,326.7 $1,002.0 $739.7 46.0% 3.4% 7.5% 1.4x 40.2x 1.4x 7.0x -68.5%Synopsys SNPS $7,794.3 $6,883.8 $2,194.1 82.0% 18.8% 8.4% 3.1x 16.6x 2.9x 10.3x 16.0%

Median: $4,046.1 $4,440.8 $1,255.2 84.1% 22.9% 8.1% 3.5x 17.1x 3.6x 12.1x 16.0%

TTM Revenue Growth 8.1%TTM EBITDA Growth 8.2%TTM Earnings Growth -5.5%Gross Profit Margin 84.1%EBITDA Margin 22.9%Net Income Margin 12.2%SG&A Expenses as a % of Total Revenue 31.7%R&D Expenses as a % of Total Revenue 18.0%


Levered FCF Margin 18.3%Cash from Operations Growth (YoY) -6.3%Cash from Investing Growth (YoY) 45.2%Cash from Financing Growth (YoY) -84.5%Levered FCF Growth (YoY) -7.9%





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0%

5%

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15%

20%Engineering & PLM Software Stock Market Return: January - October 2015

Engineering & PLM S&P NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Resource Planning


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software AMSW.A $292.9 $227.3 $106.9 50.9% 12.5% 4.6% 2.1x 17.0x 2.0x 11.1x 17.7%Oracle ORCL $165,638.2 $152,199.2 $38,078.0 59.6% 41.4% -1.1% 4.0x 9.6x 4.0x 8.6x -11.2%QAD QADA $466.6 $351.7 $294.1 55.5% 7.6% 4.8% 1.2x 15.7x 1.2x 12.0x 12.2%Sage Group LSE:SGE $9,086.5 $9,733.2 $2,172.2 94.0% 27.1% 6.1% 4.5x 16.5x 4.3x 14.5x 20.1%SAP DB:SAP $94,525.7 $100,799.1 $22,217.5 70.7% 32.2% 15.7% 4.5x 14.1x 4.3x 12.4x 15.0%

Median: $9,086.5 $9,733.2 $2,172.2 59.6% 27.1% 4.8% 4.0x 15.7x 4.0x 12.0x 15.0%








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-5%

0%

5%

10%

15%

20%Enterprise Resource Planning Software Stock Market Return: January - October 2015

Enterprise Resource Planning S&P NASDAQ SEG SW Index

SEG Software Index Category: Financial & Accounting


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDACI Worldwide ACIW $2,821.2 $3,606.4 $1,027.6 54.6% 19.3% 1.8% 3.5x 18.2x 3.3x 12.2x 21.5%Bottomline Technologies EPAY $1,056.7 $1,091.0 $332.4 57.8% 13.0% 5.6% 3.3x 25.2x 3.0x 13.8x 9.2%DST Systems DST $4,263.0 $4,875.7 $2,808.3 15.6% 14.6% 3.6% 1.7x 11.9x 2.3x 11.0x 30.2%Evertec EVTC $1,413.0 $2,040.3 $370.8 56.3% 42.0% 2.5% 5.5x 13.1x 5.4x 10.8x -15.8%Fair Isaac FICO $2,876.2 $3,439.8 $838.8 67.7% 22.6% 6.3% 4.1x 18.1x 3.9x 14.2x 28.1%First Data Corp NYSE: FDC $13,923.9 $37,829.9 $7,722.0 59.9% 33.8% 3.5% 4.9x 14.5x 3.2x 12.9x 0.6%Fiserv FISV $22,056.3 $25,982.3 $5,202.0 44.3% 30.8% 3.8% 5.0x 16.2x 4.7x 13.9x 36.7%Intuit INTU $27,018.0 $25,821.0 $4,192.0 83.4% 25.9% -1.2% 6.2x 23.8x 5.6x 15.9x 8.0%Model N MODN $267.1 $173.3 $93.8 55.7% -16.1% 14.7% 1.8x n/a 1.7x 280.5x -4.9%NetSol Technologies NETSOL $42.0 $43.6 $34.0 25.6% 19.3% 51.2% 1.3x 6.7x n/a n/a 24.0%Sage Group LSE:SGE $9,086.5 $9,733.2 $2,172.2 94.0% 27.1% 6.1% 4.5x 16.5x 4.3x 14.5x 20.1%Qiwi QIWI $1,009.6 $756.3 $259.1 52.5% 29.9% 22.8% 2.9x 9.8x 3.8x 7.2x -15.5%

Median: $2,848.7 $3,523.1 $933.2 56.0% 24.3% 4.7% 3.8x 16.2x 3.8x 13.8x 14.6%



Levered FCF Margin 13.4%Cash from Operations Growth (YoY) 2.0%Cash from Investing Growth (YoY) -35.4%Cash from Financing Growth (YoY) -25.9%Levered FCF Growth (YoY) -5.5%





-15%

-10%

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0%

5%

10%

15%

20%

25%Financial & Accounting Software Stock Market Return: January - October 2015

Financial & Accounting S&P NASDAQ SEG SW Index

SEG Software Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActivision Blizzard ATVI $25,340.7 $24,896.7 $4,887.0 65.7% 32.8% 12.3% 5.1x 15.5x 5.3x 15.1x 74.4%Electronic Arts EA $22,467.5 $20,314.5 $4,329.0 71.9% 26.3% 4.7% 4.7x 17.9x 4.3x 13.0x 53.8%GameLoft SA GFT $487.6 $449.3 $271.2 83.2% 2.9% 3.5% 1.7x 57.4x 1.5x 14.9x 45.4%Konami TSE: 9766 $3,165.6 $2,823.3 $1,897.2 34.8% 15.6% 4.0% 1.5x 9.6x 1.4x 7.9x 24.7%Take-Two Interactive TTWO $2,835.4 $2,126.4 $1,453.5 28.9% -10.0% -37.1% 1.5x n/a 1.6x 13.5x 18.2%Ubisoft Entertainment ENXTPA:UBI $3,318.9 $3,100.9 $1,324.6 76.1% -7.7% -0.9% 2.3x n/a 1.9x 3.9x 64.5%

Median: $3,242.3 $2,962.1 $1,675.3 68.8% 9.2% 3.8% 2.0x 16.7x 1.7x 13.3x 49.6%



Levered FCF Margin 19.6%Cash from Operations Growth (YoY) -15.8%Cash from Investing Growth (YoY) 22.0%Cash from Financing Growth (YoY) 88.2%Levered FCF Growth (YoY) -23.5%





-15%

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-5%

0%

5%

10%

15%

20%

25%

30%Gaming Software Stock Market Return: January - October 2015

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAccretive Health AH $16,706.4 $18,246.9 $41,122.8 27.0% 6.1% 13.3% 0.4x 7.3x 0.4x 6.9x 18.8%Allscripts Healthcare Solutions MDRX $2,656.2 $3,251.1 $1,381.6 46.7% 6.9% -0.5% 2.4x 34.1x 2.2x 12.4x 9.4%Cerner CERN $22,875.0 $22,939.7 $4,103.4 84.1% 27.6% 29.0% 5.6x 20.2x 4.7x 14.1x 1.9%Computer Programs and Sys CPSI $429.6 $391.2 $184.2 41.1% 19.1% -12.2% 2.1x 11.1x 2.0x 9.5x -34.5%MedAssets MDAS $1,861.2 $2,658.8 $764.2 75.2% 28.5% 10.4% 3.3x 10.5x n/a n/a n/aOmnicell OMCL $976.7 $918.9 $475.8 51.8% 14.2% 11.9% 1.9x 13.6x 1.6x 9.2x -15.5%Quality Systems QSII $855.1 $744.3 $499.3 55.4% 11.5% 8.0% 1.5x 13.0x 1.5x 9.7x -6.2%

Median: $1,861.2 $2,658.8 $764.2 51.8% 14.2% 10.4% 2.1x 13.0x 1.8x 9.6x -2.1%








-15%

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-5%

0%

5%

10%

15%

20%Healthcare Software Stock Market Return: January - October 2015

Healthcare S&P NASDAQ SEG SW Index

SEG Software Index Category: IT Conglomerates


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDHewlett Packard HPQ $48,480.1 $57,209.1 $106,047.0 23.9% 12.0% -5.5% 0.5x 4.5x 0.6x 4.5x -31.9%IBM IBM $135,893.0 $166,142.0 $83,795.0 50.3% 25.6% -12.8% 2.0x 7.8x 2.1x 7.5x -11.6%Microsoft MSFT $420,483.7 $359,927.7 $90,758.0 64.8% 35.7% -0.8% 4.0x 11.1x 3.9x 10.4x 14.9%Oracle ORCL $165,638.2 $152,199.2 $38,078.0 59.6% 41.4% -1.1% 4.0x 9.6x 4.0x 8.6x -11.2%SAP AG DB:SAP $94,525.7 $100,799.1 $22,217.5 70.7% 32.2% 15.7% 4.5x 14.1x 4.3x 12.4x 15.0%

Median: $135,893 $152,199 $83,795.0 59.6% 32.2% -1.1% 4.0x 9.6x 3.9x 8.6x -11.2%

TTM Revenue Growth -1.1%TTM EBITDA Growth -3.4%TTM Earnings Growth -13.2%Gross Profit Margin 59.6%EBITDA Margin 32.2%Net Income Margin 15.5%SG&A Expenses as a % of Total Revenue 21.9%R&D Expenses as a % of Total Revenue 13.2%


Levered FCF Margin 20.9%Cash from Operations Growth (YoY) -9.5%Cash from Investing Growth (YoY) -84.6%Cash from Financing Growth (YoY) -5.9%Levered FCF Growth (YoY) -12.5%





-20%

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0%

5%

10%

15%

20%IT Conglomerates Software Stock Market Return: January - October 2015

IT Conglomerates S&P NASDAQ SEG SW Index

SEG Software Index Category: Mobile Solutions/Content


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBango PLC BGO $80.7 $75.2 $5.9 32.7% -129.3% -48.3% 12.7x n/a n/a n/a -13.7%iDream Sky Technologies DSKY $517.0 $417.6 $223.8 39.9% 1.3% n/a 1.9x 142.8x 1.3x 5.9x -30.4%King Digital Entertainment KING $0.2 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/aGlu Mobile GLUU $538.3 $348.6 $261.7 60.0% 5.3% 41.4% 1.3x 25.2x 1.2x 15.5x 1.7%Gree TSE:3632 $1,188.9 $590.8 $721.1 71.8% 26.3% -25.4% 0.8x 3.1x 1.0x 4.6x -13.4%Millennial Media MM $44.9 $623.5 $477.1 52.3% 17.8% -4.4% 1.3x 7.3x 1.3x 5.8x -42.7%MobileIron MOBL $304.1 $206.0 $144.0 81.2% -56.3% 17.3% 1.4x n/a 1.2x n/a -60.9%Momo MOMO $2,152.2 $1,699.1 $113.1 77.1% 4.2% 296.5% 15.0x 358.4x 6.9x 15.9x 5.2%Myriad Group AG MYRN $336.0 $293.3 $36.0 87.6% 20.7% -17.3% 8.2x 39.3x n/a n/a -28.8%NQ Mobile NQ $345.1 $365.6 $368.9 24.8% -4.0% 18.8% 1.0x n/a 0.7x 6.2x -9.8%Opera OPERA $909.3 $988.1 $576.8 35.0% 16.1% 38.7% 1.7x 10.6x 1.5x 8.5x -53.2%Qihoo 360 Technology QIHU $7,361.4 $7,849.0 $1,630.3 77.2% 27.0% 64.2% 4.8x 17.9x 3.5x 11.0x -4.4%Pandora Media P $2,456.4 $2,092.8 $1,095.9 47.5% -3.4% 26.0% 1.9x n/a 1.6x 29.0x -35.1%Synchronoss Technologies SNCR $1,543.1 $1,576.2 $551.8 59.3% 28.5% 30.1% 2.9x 10.0x 2.4x 7.1x -15.2%Tangoe TNGO $325.0 $293.5 $219.4 54.1% 4.4% 5.7% 1.3x 30.4x 1.2x 9.3x -34.6%TeleCommunication Systems ALLT $309.7 $401.6 $364.1 39.1% 9.7% 5.5% 1.1x 11.3x 0.3x 3.6x -23.3%TeleNav TNAV $294.2 $182.4 $169.3 49.1% -19.3% 20.1% 1.1x n/a 1.0x n/a 8.1%Zynga ZNGA $2,190.5 $1,131.7 $771.5 70.7% -2.1% 14.4% 1.5x n/a 1.4x 33.8x -13.2%

Median: $431 $418 $364.1 54.1% 4.4% 18.1% 1.5x 17.9x 1.3x 8.5x -15.2%

TTM Revenue Growth 18.1%TTM EBITDA Growth 5.7%TTM Earnings Growth 15.7%Gross Profit Margin 54.1%EBITDA Margin 4.4%Net Income Margin -12.0%SG&A Expenses as a % of Total Revenue 34.5%R&D Expenses as a % of Total Revenue 20.2%


Levered FCF Margin -3.3%Cash from Operations Growth (YoY) 20.1%Cash from Investing Growth (YoY) -28.6%Cash from Financing Growth (YoY) -29.7%Levered FCF Growth (YoY) -5.8%





-25%

-20%

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0%

5%

10%

15%

20%Mobile Solutions/Content Software Stock Market Return: January - October 2015

Mobile Solutions/Content S&P NASDAQ SEG SW Index

SEG Software Index Category: Networking/Network Performance Mgmt


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDA10 Networks ATEN $448.2 $347.7 $187.5 75.5% -18.0% 6.2% 1.9x n/a 1.6x n/a 58.1%Allot Communications ALLT $186.4 $63.6 $105.2 70.9% -3.3% -7.6% 0.6x n/a 0.6x 7.9x -39.4%Barracuda Networks CUDA $1,023.8 $810.5 $298.9 79.2% 1.6% 17.4% 2.7x 166.7x 2.3x 9.2x -45.2%Brocade BRCD $4,320.1 $3,792.5 $2,239.0 67.5% 26.2% 1.5% 1.7x 6.5x 1.7x 6.0x -10.1%Cisco Systems CSCO $146,764.4 $111,711.4 $49,598.0 60.5% 27.6% 4.9% 2.3x 8.2x 2.2x 7.4x 7.0%F5 Networks FFIV $7,729.2 $6,954.9 $1,919.8 82.7% 31.0% 10.8% 3.6x 11.7x 3.4x 8.6x -15.4%Gigamon GIMO $879.1 $692.9 $206.2 77.7% 6.1% 38.4% 3.4x 55.3x 2.8x 12.7x 46.9%Juniper Networks JNPR $12,067.2 $12,167.8 $4,639.8 63.1% 21.0% -3.3% 2.6x 12.5x 2.4x 9.2x 41.5%Radware RDWR $675.4 $583.7 $222.3 82.5% 18.0% 4.0% 2.6x 14.6x 2.7x 18.0x -31.5%

Median: $1,023.8 $810.5 $298.9 75.5% 18.0% 4.9% 2.6x 12.5x 2.3x 8.9x -10.1%








November 2015 Monthly Flash Report

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-5%

0%

5%

10%

15%

20%

Networking/Network Performance Mgmt Software Stock Market Return: January - October 2015

Networking & Network Performance Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Security


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDA10 Networks ATEN $448.2 $347.7 $187.5 75.5% -18.0% 6.2% 1.9x n/a 1.6x n/a 58.1%AVG Technologies AVG $1,237.9 $1,386.0 $419.0 85.1% 29.1% 11.5% 3.3x 11.4x 3.0x 8.1x 21.0%Barracuda Networks CUDA $1,023.8 $810.5 $298.9 79.2% 1.6% 17.4% 2.7x 166.7x 2.3x 9.2x -45.2%Cyberark Software CYBR $1,571.5 $1,287.7 $145.7 86.0% 22.7% 67.9% 8.8x 39.0x 7.7x 43.3x 27.7%Check Point Software Tech CHKP $15,361.8 $14,062.7 $1,592.4 88.4% 52.9% 8.9% 8.8x 16.7x 8.1x 14.6x 8.3%Cyren CYRN $78.6 $75.2 $28.5 70.9% -10.4% -11.9% 2.6x n/a 2.6x n/a 17.5%Fortinet FTNT $5,880.8 $4,972.6 $936.7 71.4% 6.6% 29.4% 5.3x 81.0x 4.2x 24.4x 11.6%Guidance Software GUID $170.8 $149.9 $107.6 66.5% -4.3% -0.7% 1.4x n/a 1.3x 63.2x -19.5%Imperva IMPV $2,207.3 $1,953.6 $213.0 79.3% -22.5% 37.1% 9.2x n/a 7.1x 168.7x 45.7%Palo Alto Networks PANW $13,802.6 $13,500.8 $928.1 72.9% -11.3% 55.1% 14.5x n/a 10.4x 46.0x 32.6%Proofpoint PFPT $2,844.9 $2,769.3 $246.7 67.7% -20.0% 36.8% 11.2x n/a 8.6x n/a 48.4%Rapid7 RPD $835.6 $1,072.4 $99.6 73.9% -27.5% n/a 10.8x n/a 9.2x n/a -18.7%Sourcefire FIRE $23.8 $23.6 $20.0 36.9% 15.5% 27.2% 1.2x 7.6x n/a n/a 95.1%Symantec SYMC $13,991.6 $12,196.6 $6,239.0 83.2% 29.7% 15.2% 2.0x 6.6x 1.9x 5.6x -17.9%Trend Micro TSE:4704 $5,343.8 $4,313.4 $1,026.1 82.4% 33.9% 9.3% 4.2x 12.4x 4.1x 12.1x 40.9%VASCO VDSI $747.3 $563.4 $253.0 58.4% 22.4% 38.7% 2.2x 9.9x 2.5x 11.8x -30.4%

Median: $1,404.7 $1,336.8 $249.8 74.7% 4.1% 17.4% 3.8x 12.4x 4.1x 14.6x 19.3%








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0%

5%

10%

15%

20%

25%

30%

35%

40%Security Software Stock Market Return: January - October 2015

Security S&P NASDAQ SEG SW Index

SEG Software Index Category: Storage, Data Management & Integration


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBrocade BRCD $4,320.1 $3,792.5 $2,239.0 67.5% 26.2% 1.5% 1.7x 6.5x 1.7x 6.0x -10.1%CA CA $12,157.5 $11,495.5 $4,096.0 85.4% 30.9% -6.1% 2.8x 9.1x 2.8x 7.3x -7.4%Cisco Systems CSCO $146,764.4 $111,711.4 $49,598.0 60.5% 27.6% 4.9% 2.3x 8.2x 2.2x 7.4x 7.0%CommVault Systems CVLT $1,835.9 $1,435.9 $583.6 85.9% 2.3% -4.9% 2.5x 106.7x 2.4x 17.3x -21.4%EMC EMC $50,859.7 $52,172.7 $24,738.0 61.2% 21.0% 2.8% 2.1x 10.0x 2.0x 7.3x -10.9%FalconStor Software FALC $82.4 $74.0 $51.0 80.1% 0.0% 3.8% 1.5x 27932.6x n/a n/a 41.8%NetApp NTAP $10,026.6 $6,564.6 $5,870.7 61.7% 11.3% -6.7% 1.1x 9.9x 1.1x 5.4x -16.3%Splunk SPLK $7,215.2 $6,359.8 $537.4 83.8% -42.0% 46.8% 11.8x n/a 8.9x 150.2x -4.5%Varonis Systems VRNS $398.0 $293.1 $117.1 90.2% -17.8% 25.5% 2.5x n/a 2.1x n/a -51.8%

Median: $7,215.2 $6,359.8 $2,239.0 80.1% 11.3% 2.8% 2.3x 9.9x 2.2x 7.3x -10.1%









-20%

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-5%

0%

5%

10%

15%

20%Storage, Data Management & Integration Software Stock Market Return: January - October

2015

Storage, Data Management & Integration S&P NASDAQ SEG SW Index

SEG Software Index Category: Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCA Technologies CA $12,157.5 $11,495.5 $4,096.0 85.4% 30.9% -6.1% 2.8x 9.1x 2.8x 7.3x -7.4%Citrix Systems CTXS $13,193.6 $13,437.7 $3,222.3 85.0% 22.9% 4.2% 4.2x 18.2x 4.0x 13.6x 29.3%Netscout Systems NTCT $3,613.4 $3,544.8 $604.1 71.6% 18.0% 39.1% 5.9x 32.7x 2.7x 10.7x -0.9%Red Hat RHT $14,461.6 $14,013.8 $1,905.0 84.8% 19.0% 14.3% 7.4x 38.8x 6.4x 24.1x 14.7%SolarWinds NYSE: SWI $25,371.2 $19,654.2 $6,481.0 84.5% 26.2% 11.4% 3.0x 11.6x 2.8x 8.2x -26.7%VMWare VMW $7,046.8 $7,412.0 $2,733.1 31.9% 21.2% 6.4% 2.7x 12.8x 2.5x 11.6x 32.8%

Median: $12,675.6 $12,466.6 $2,977.7 84.7% 22.0% 8.9% 3.6x 15.5x 2.8x 11.1x 6.9%



Levered FCF Margin 20.4%Cash from Operations Growth (YoY) -7.5%Cash from Investing Growth (YoY) -3.2%Cash from Financing Growth (YoY) 21.2%Levered FCF Growth (YoY) -15.2%





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0%

5%

10%

15%

20%

Systems Management Software Stock Market Return: January - October 2015

Systems Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Finance


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBroadridge Financial BR $7,046.8 $7,412.0 $2,733.1 31.9% 21.2% 6.4% 2.7x 12.8x 2.5x 11.6x 32.8%Fidessa FDSA $1,152.4 $1,057.1 $438.2 19.7% 17.2% 5.0% 2.4x 14.0x 2.3x 11.3x -16.2%Jack Henry & Associates JKHY $6,191.9 $6,096.3 $1,276.3 42.9% 35.1% 6.6% 4.8x 13.6x 4.6x 13.0x 25.7%MSCI MSCI $6,879.3 $7,464.6 $1,053.2 71.1% 43.6% 7.2% 7.1x 16.3x 6.6x 14.8x 41.8%SS&C SSNC $7,170.5 $6,906.3 $900.1 46.8% 32.7% 20.1% 7.7x 23.5x 5.1x 11.6x 34.9%

Median: $6,879.3 $6,906.3 $1,053.2 42.9% 32.7% 6.6% 4.8x 14.0x 4.6x 11.6x 32.8%









-15%

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0%

5%

10%

15%

20%

25%

30%Vertical - Finance Software Stock Market Return:January - October 2015

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBlackbaud BLKB $2,836.6 $3,060.8 $614.9 51.7% 15.9% 12.5% 5.0x 31.4x 4.2x 19.7x 50.1%Constellation TSX:CSU $9,151.2 $9,376.8 $1,766.5 36.6% 17.8% 12.5% 5.3x 29.8x 4.5x 17.8x 48.0%EPIQ Systems EPIQ $515.3 $910.4 $478.1 50.6% 13.3% 4.7% 1.9x 14.3x 1.6x 7.9x -15.3%Guidewire Software GWRE $4,135.5 $3,563.9 $380.5 61.3% 5.9% 8.6% 9.4x 157.9x 8.7x 48.3x 16.5%Sapiens International SPNS $575.3 $525.2 $178.7 39.4% 14.9% 17.7% 2.9x 19.7x 2.7x 17.8x 63.5%Silver Spring Networks SSNI $656.2 $538.2 $367.7 42.1% 7.9% 74.2% 1.5x 18.6x 1.8x 29.5x 62.1%Tyler Technologies TYL $5,781.8 $5,534.1 $559.5 47.3% 22.6% 17.5% 9.9x 43.7x 8.0x 29.1x 58.0%

Median: $2,836.6 $3,060.8 $478.1 47.3% 14.9% 12.5% 5.0x 29.8x 4.2x 19.7x 50.1%



Levered FCF Margin 15.6%Cash from Operations Growth (YoY) 22.7%Cash from Investing Growth (YoY) 16.2%Cash from Financing Growth (YoY) -27.3%Levered FCF Growth (YoY) 35.2%





-20%

-10%

0%

10%

20%

30%

40%

50%

60%Vertical - Other Software Stock Market Return: January - October 2015

Vertical - Other S&P NASDAQ SEG SW Index

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG SaaS Index $955.5 $873.2 $184.7 66.3% -8.1% 29.0% 5.5x 31.9x 4.5x 30.8x -2.3% CRM & Marketing $1,256.8 $1,150.9 $193.9 67.7% -10.5% 31.8% 5.9x 103.4x 4.4x 41.9x -14.5% ERP & Supply Chain $1,194.0 $1,071.1 $151.6 67.8% -8.3% 25.8% 7.1x 29.4x 5.9x 41.4x -17.4% Vertically Focused $920.0 $780.9 $143.0 62.1% 7.8% 35.0% 5.7x 33.3x 4.3x 22.2x 3.0% Human Capital Management $1,337.2 $1,250.8 $184.7 60.9% -6.7% 32.3% 5.3x 54.6x 4.6x 46.7x 4.5% SaaS Other $673.7 $663.1 $193.3 69.3% -12.2% 25.9% 5.0x 30.0x 4.2x 20.8x -5.3%

TTM Revenue Growth 29.0%TTM EBITDA Growth 6.0%TTM Earnings Growth -2.4%Gross Profit Margin 66.3%EBITDA Margin -8.1%Net Income Margin -17.6%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 18.3%




Category Name




-15%

-10%

-5%

0%

5%

10%

15%SEG SaaS Index Stock Market Return: January - October 2015

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBazaarvoice BV $356.8 $310.7 $194.1 62.3% -10.5% 11.7% 1.6x n/a 1.5x 98.5x -45.9%Constant Contact NYSE:CVT $1,031.2 $850.6 $361.9 68.2% 8.4% 32.0% 3.6x 42.7x 2.9x 23.6x n/aCvent CVT $1,315.8 $1,152.3 $176.1 67.7% 1.4% 31.8% 6.5x 473.0x 5.6x 47.2x 13.0%HubSpot HUBS $1,751.2 $1,641.7 $163.0 71.7% -33.2% 56.6% 10.1x n/a 8.3x n/a 55.0%LivePerson LPSN $445.9 $408.8 $238.1 73.0% 7.0% 19.9% 1.7x 24.7x 1.6x 18.3x -42.9%Marketo MKTO $1,256.8 $1,150.9 $193.9 65.4% -29.5% 42.8% 5.9x n/a 4.4x n/a -11.0%Marin Software MRIN $132.1 $92.6 $106.5 62.5% -25.7% 13.1% 0.9x n/a 0.8x n/a -58.2%Salesforce.com CRM $50,943.3 $51,794.1 $5,974.1 75.3% 5.3% 25.3% 8.7x 164.0x 7.1x 41.9x 31.2%Zendesk ZEN $1,770.4 $1,484.0 $184.7 66.9% -35.3% 66.3% 8.0x n/a 6.2x n/a -18.1%

Median: $1,256.8 $1,150.9 $193.9 67.7% -10.5% 31.8% 5.9x 103.4x 4.4x 41.9x -14.5%

TTM Revenue Growth 31.8%TTM EBITDA Growth -13.7%TTM Earnings Growth -33.9%Gross Profit Margin 67.7%EBITDA Margin -10.5%Net Income Margin -25.6%SG&A Expenses as a % of Total Revenue 63.5%R&D Expenses as a % of Total Revenue 19.4%








-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%CRM & Marketing SaaS Stock Market Return: January - October 2015

CRM & Marketing S&P NASDAQ SEG SaaS

SEG SaaS Index Category: ERP & Supply Chain


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmber Road AMBR $105.3 $101.9 $67.5 48.7% -26.8% 7.5% 1.5x n/a 1.4x n/a -60.5%Apigee Corporation APIC $284.5 $198.8 $68.6 63.6% -68.6% 30.2% 2.9x n/a 2.2x n/a -42.2%Fleetmatics FLTX $2,141.0 $1,987.5 $271.5 74.6% 24.9% 24.7% 7.3x 29.4x 6.4x 19.9x 57.3%Netsuite N $6,724.0 $6,627.2 $692.8 67.1% -8.3% 34.9% 9.6x n/a 7.4x 94.5x -20.7%SciQuest SQI $329.9 $193.8 $104.3 67.8% 6.8% 2.0% 1.9x 27.5x 1.8x 8.9x -17.4%SPS Commerce SPSC $1,194.0 $1,071.1 $151.6 68.5% 10.1% 25.8% 7.1x 69.6x 5.9x 41.4x 29.1%Workday WDAY $15,162.2 $13,758.1 $975.0 68.0% -15.6% 58.2% 14.1x n/a 10.1x 134.4x -1.8%

Median: $1,194.0 $1,071.1 $151.6 67.8% -8.3% 25.8% 7.1x 29.4x 5.9x 41.4x -17.4%

TTM Revenue Growth 25.8%TTM EBITDA Growth 17.9%TTM Earnings Growth 18.6%Gross Profit Margin 67.8%EBITDA Margin -8.3%Net Income Margin -17.0%SG&A Expenses as a % of Total Revenue 52.3%R&D Expenses as a % of Total Revenue 20.6%








-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%ERP & Supply Chain SaaS Stock Market Return: January - October 2015

ERP & Supply Chain S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Vertically Focused


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD2U TWOU $956.2 $780.9 $137.7 78.0% -18.6% 32.0% 5.7x n/a 4.3x n/a 7.7%Alarm.com ALRM $576.4 $764.7 $197.5 62.1% 15.1% 26.1% 3.9x 25.7x 3.7x 51.1x -25.1%AppFolio APPF $598.7 $538.3 $67.8 54.5% -17.9% n/a 7.9x n/a 6.1x n/a 24.4%Athenahealth ATHN $5,919.6 $6,102.2 $880.4 60.7% 7.8% 23.8% 6.9x 89.3x 5.7x 30.1x 3.0%Castlight Health CSLT $477.2 $312.8 $68.5 55.1% -115.4% 88.9% 4.6x n/a 3.3x n/a -56.6%DealerTrack TRAK $117.9 $117.0 $31.9 46.0% 13.7% 39.7% 3.7x 26.7x 3.0x 18.0x 181.7%Ebix EBIX $955.5 $1,078.2 $255.9 71.3% 35.1% 25.1% 4.2x 12.0x 4.1x 11.4x 66.2%Ellie Mae ELLI $2,174.5 $2,065.5 $235.6 68.0% 20.7% 62.2% 8.8x 42.3x 7.1x 28.6x 81.5%Medical Transcript MTBC $17.1 $20.1 $24.8 45.4% -7.0% 75.0% 0.8x n/a 0.7x 12.6x -43.7%Medidata Solutions MDSO $2,377.7 $2,340.2 $382.8 76.5% 10.5% 19.5% 6.1x 58.3x 5.2x 21.0x -8.1%OPOWER OPWR $496.7 $376.1 $143.0 63.7% -26.8% 19.6% 2.6x n/a 2.3x n/a -33.5%RealPage RP $1,338.2 $1,359.5 $451.3 56.4% 9.0% 14.1% 3.0x 33.4x 2.8x 14.7x -21.4%Textura TXTR $759.2 $691.3 $80.9 81.7% -5.8% 41.6% 8.5x n/a 6.5x 41.1x 3.2%Q2 Holdings QTWO $920.0 $801.8 $100.6 44.9% -14.9% 38.5% 8.0x n/a 6.5x n/a 30.5%Veeva Systems VEEV $3,359.3 $2,921.4 $358.9 64.6% 24.5% 37.9% 8.1x 33.3x 6.5x 23.3x -3.3%

Median: $920.0 $780.9 $143.0 62.1% 7.8% 35.0% 5.7x 33.3x 4.3x 22.2x 3.0%









-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%Vertically Focused SaaS Stock Market Return: January - October 2015

Vertically Focused S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Human Capital Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBenefitfocus BNFT $918.0 $870.1 $171.0 43.7% -27.5% 34.1% 5.1x n/a 4.5x n/a 2.1%Callidus Software CALD $967.9 $876.3 $164.4 60.9% -3.1% 27.8% 5.3x n/a 4.8x 36.2x 9.2%Cornerstone OnDemand CSOD $1,707.3 $1,711.0 $320.2 67.7% -18.5% 32.3% 5.3x n/a 4.4x 145.0x -8.4%HealthStream HSTM $753.5 $608.7 $198.5 57.1% 16.3% 22.2% 3.1x 18.8x 2.7x 17.0x -16.9%Halogen Software TSX:HGN $149.3 $110.8 $63.6 72.8% -9.7% 17.4% 1.7x n/a 1.6x n/a -6.6%Paycom Software PAYC $2,246.7 $2,230.3 $203.6 85.6% 20.1% 48.4% 11.0x 54.6x 9.2x 46.7x 45.9%Paylocity Holding PCTY $1,706.5 $1,625.2 $166.7 54.6% -3.6% 42.0% 9.7x n/a 8.1x 153.1x 30.8%The Ultimate Software Group ULTI $5,841.7 $5,721.0 $582.9 60.9% 11.3% 20.8% 9.8x 87.2x 7.9x 32.4x 39.4%Workday WDAY $15,162.2 $13,758.1 $975.0 68.0% -15.6% 58.2% 14.1x n/a 10.1x 134.4x -1.8%Xactly XTLY $271.1 $227.8 $67.1 59.1% -19.8% n/a 3.4x n/a 2.7x n/a 6.9%

Median: $1,337.2 $1,250.8 $184.7 60.9% -6.7% 32.3% 5.3x 54.6x 4.6x 46.7x 4.5%

TTM Revenue Growth 32.3%TTM EBITDA Growth 0.5%TTM Earnings Growth -4.9%Gross Profit Margin 60.9%EBITDA Margin -6.7%Net Income Margin -16.9%SG&A Expenses as a % of Total Revenue 52.5%R&D Expenses as a % of Total Revenue 15.2%








-15%

-10%

-5%

0%

5%

10%

15%

20%Human Capital Management SaaS Stock Market Return: January - March 2015

Human Capital Management S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Other Public SaaS Companies


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBox BOX $1,477.7 $1,280.6 $258.8 74.9% -59.2% n/a 4.9x n/a 3.8x n/a -46.3%ChannelAdvisors ECOM $218.7 $162.1 $95.0 74.6% -19.4% 16.5% 1.7x n/a 1.6x n/a -59.5%Covisint COVS $82.9 $35.7 $82.1 43.0% -25.8% -10.6% 0.4x n/a 0.4x 4.3x -17.6%Demandware DWRE $2,133.7 $1,947.6 $214.2 71.7% -14.7% 46.3% 9.1x n/a 7.3x 137.9x 0.5%FireEye FEYE $4,168.8 $3,668.1 $581.2 61.8% -66.9% 71.0% 6.3x n/a 4.9x n/a -15.7%HortonWorks HDP $856.7 $714.9 $99.2 0.8% -217.2% 124.1% 7.2x n/a 5.0x n/a -23.7%inContact SAAS $549.0 $522.8 $209.9 50.6% -2.5% 33.3% 2.5x n/a 2.1x 30.8x 1.4%IntraLinks Holdings IL $506.5 $529.3 $272.3 72.3% 3.9% 8.5% 1.9x 49.5x 1.9x 13.3x -23.6%J2 Global JCOM $3,756.3 $3,840.9 $683.1 82.8% 41.4% 19.9% 5.6x 13.6x 5.1x 11.4x 28.3%Jive Software JIVE $367.9 $256.4 $193.3 63.3% -11.8% 13.5% 1.3x n/a 1.3x n/a -19.8%Liquid Holdings Group LIQD.Q $1.2 n/a $5.2 54.2% n/a 1.3% n/a n/a n/a n/a -94.0%MINDBODY MB $612.0 $521.2 $93.3 62.4% -27.4% n/a 5.6x n/a 4.6x n/a 35.3%New Relic NEWR $1,882.8 $1,687.8 $143.5 79.4% -36.2% 68.8% 11.8x n/a 9.1x n/a 8.7%Qualys QLYS $1,204.1 $1,046.0 $156.4 79.3% 22.3% 24.1% 6.7x 30.0x 5.7x 20.8x -5.3%RingCentral RNG $1,301.7 $1,190.1 $274.7 69.3% -7.9% 35.1% 4.3x n/a 3.7x 108.8x 25.6%Service-now.com NOW $12,745.6 $12,483.4 $917.8 66.3% -12.5% 50.5% 13.6x n/a 9.9x 58.8x 21.2%Shopify SHOP $2,628.9 $2,430.1 $170.2 55.9% -5.9% n/a 14.3x n/a 11.2x n/a 25.5%Tableau Software DATA $6,031.1 $5,301.6 $593.8 89.3% -1.4% 69.1% 8.9x n/a 7.2x 67.7x -2.3%Tangoe TNGO $325.0 $293.5 $219.4 54.1% 4.4% 5.7% 1.3x 30.4x 1.2x 9.3x -34.6%TrueCar TRUE $505.8 $408.2 $251.7 91.0% -13.6% 31.6% 1.6x n/a 1.5x 35.1x -71.8%Upland Software UPLD $121.7 $119.3 $68.8 62.7% -0.1% 14.2% 1.7x n/a 1.6x 20.4x -16.4%Workiva WK $673.7 $611.4 $135.5 71.1% -28.8% 27.7% 4.5x n/a 3.8x n/a 22.1%Zix ZIXI $298.0 $273.9 $53.3 82.6% 19.5% 6.9% 5.1x 26.4x 4.6x 16.2x 45.9%

Median: $673.7 $663.1 $193.3 69.3% -12.2% 25.9% 5.0x 30.0x 4.2x 20.8x -5.3%

TTM Revenue Growth 25.9%TTM EBITDA Growth -5.3%TTM Earnings Growth -29.4%Gross Profit Margin 69.3%EBITDA Margin -12.2%Net Income Margin -19.1%SG&A Expenses as a % of Total Revenue 64.2%R&D Expenses as a % of Total Revenue 20.4%








-20%

-15%

-10%

-5%

0%

5%

10%

15%Other Public SaaS Companies SaaS Stock Market Return: January - October 2015

Other SaaS S&P NASDAQ SEG SaaS

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Internet Index $1,291.0 $1,164.6 $555.1 63.3% 7.6% 16.5% 1.9x 18.8x 1.8x 13.0x -6.6% Ad Tech & Lead Generation $543.3 $463.1 $439.2 53.1% 0.4% 20.1% 1.2x 18.8x 1.4x 12.5x -22.5% Commerce $604.8 $746.6 $539.8 44.0% 5.1% 21.4% 1.2x 20.9x 1.4x 13.7x -6.6% Content & Media $1,978.1 $1,825.0 $721.3 54.6% 8.6% 9.2% 2.0x 17.4x 1.9x 11.0x -9.6% Gaming $2,753.36 $1,978.8 $1,381.9 66.9% 34.2% 18.8% 2.5x 10.6x 2.2x 10.8x -1.0% Infrastructure $700.67 $634.5 $360.4 62.1% 6.7% 4.3% 1.4x 15.5x 1.4x 12.0x -3.8% Search $35,178.32 $32,987.7 $6,462.2 69.3% 28.3% 14.9% 5.9x 18.7x 4.8x 12.9x 0.2% Services $1,037.88 $785.8 $337.6 72.5% 7.3% 19.8% 1.7x 18.6x 1.5x 12.4x -5.9% Social $4,058.38 $4,308.2 $813.0 67.4% 8.3% 42.3% 8.6x 41.1x 6.6x 18.1x 4.9% Travel $12,072.39 $11,649.4 $1,471.0 84.4% 11.1% 13.6% 5.1x 29.7x 5.2x 18.6x 19.8%


Current Ratio 2.4Quick Ratio 2.0Cash as Percent of Market Cap 17.4%Avg Days Outstanding: Accounts Receivable 38Avg Days Outstanding: Accounts Payable 52Working Capital to TTM Operating Expense Ratio 0.4






-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%SEG Internet Index Stock Market Return: January - October 2015

DOW S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Ad Tech


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBaidu.com BIDU $64,794.8 $60,208.6 $9,711.4 67.1% 26.0% 38.6% 6.2x 23.8x 4.7x 22.0x -16.0%Criteo SA CRTO $2,366.6 $2,062.5 $1,188.0 35.8% 8.5% 64.2% 1.7x 20.5x 3.4x 13.8x -4.7%Google GOOGL $497,938.2 $435,523.2 $71,763.0 62.5% 32.5% 12.8% 6.1x 18.7x 5.3x 13.0x 39.2%Marchex MCHX $182.8 $78.3 $148.4 46.4% 4.5% -18.5% 0.5x 11.8x 0.6x 8.0x -8.2%MaxPoint Interactive MXPT $125.0 $97.0 $137.7 50.0% -9.6% 49.5% 0.7x n/a 0.9x n/a -50.6%ReachLocal RLOC $42.3 $39.5 $402.6 43.6% -7.1% -19.3% 0.1x n/a 0.1x 8.4x -57.8%Rocket Fuel FUEL $196.4 $198.5 $475.7 40.9% -11.3% 34.1% 0.4x n/a 0.4x 12.3x -71.4%The Rubicon Project RUBI $672.8 $592.9 $196.3 77.9% -3.6% 75.9% 3.0x n/a 2.1x 12.1x -5.5%Sohu.com SOHU $1,951.3 $1,411.5 $1,948.2 56.2% 18.6% 23.2% 0.7x 3.9x 0.7x 4.6x -3.6%Tremor TRMR $93.3 $24.7 $177.8 38.2% -8.4% 15.5% 0.1x n/a 0.1x n/a -37.4%TubeMogul TUBE $413.8 $333.2 $158.3 68.9% -7.1% 58.0% 2.1x n/a 1.8x n/a -43.1%Yahoo! YHOO $33,532.3 $28,900.8 $4,948.0 64.4% 9.6% 6.8% 5.8x 60.6x 7.7x 36.1x -29.0%Yandex YNDX $5,134.6 $4,952.7 $858.6 71.6% 30.7% 17.0% 5.8x 18.8x 4.8x 12.7x -12.4%YuMe YUME $103.5 $56.0 $176.5 45.8% -6.5% 1.0% 0.3x n/a 0.3x n/a -40.5%

Median: $543.3 $463.1 $439.2 53.1% 0.4% 20.1% 1.2x 18.8x 1.4x 12.5x -22.5%

TTM Revenue Growth 20.1%TTM EBITDA Growth -16.5%TTM Earnings Growth -59.8%Gross Profit Margin 53.1%EBITDA Margin 0.4%Net Income Margin -5.7%SG&A Expenses as a % of Total Revenue 36.2%R&D Expenses as a % of Total Revenue 16.0%

Current Ratio 2.4xQuick Ratio 2.3xCash as Percent of Market Cap 29.7%Avg Days Outstanding: Accounts Receivable 68.7xAvg Days Outstanding: Accounts Payable 74.3xWorking Capital to TTM Operating Expense Ratio 0.5x






-50%

-40%

-30%

-20%

-10%

0%

10%

20%Internet Ad Tech Stock Market Return: January - October 2015

Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Commerce


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD1-800-FLOWERS.COM FLWS $640.7 $746.6 $1,150.8 44.0% 6.0% 51.4% 0.6x 10.9x 0.6x 8.6x 26.2%58.com WUBA $7,300.0 $6,840.6 $539.8 93.5% -33.0% 134.6% 12.7x n/a 7.4x n/a 25.3%Alibaba BABA $210,616.8 $207,270.5 $13,532.0 68.0% 33.2% 35.7% 15.3x 46.1x 11.9x 23.8x -19.1%Amazon.com AMZN $293,398.1 $297,557.1 $100,588.0 32.4% 7.0% 18.0% 3.0x 42.5x 2.4x 21.8x 102.9%Baozun BZUN $434.2 $290.6 $356.3 19.9% 1.4% 68.2% 0.8x 59.3x 0.7x 15.7x -17.2%Bitauto Holdings BITA $1,919.5 $1,129.6 $589.5 68.0% 3.8% 90.5% 1.9x 50.5x 1.5x n/a -57.3%BlueNile NILE $392.5 $353.3 $487.5 18.8% 3.5% 5.5% 0.7x 20.9x 0.7x 14.5x -2.7%Chegg CHGG $604.8 $542.3 $317.6 39.7% 6.5% 6.8% 1.7x 26.4x 1.9x 62.1x -1.4%DangDang DANG $547.7 $272.7 $1,451.6 16.0% -0.4% 21.4% 0.2x n/a 0.2x 12.9x -28.9%eBay EBAY $33,498.2 $35,636.2 $17,705.0 67.3% 27.6% 61.0% 2.0x 7.3x 4.0x 9.9x 32.5%Groupon GRPN $2,427.6 $1,351.3 $3,235.1 45.6% 2.7% 10.5% 0.4x 15.7x 0.4x 4.4x -53.7%Liquidity Services LQDT $245.9 $149.7 $397.1 33.1% 5.1% -19.9% 0.4x 7.3x 0.4x 5.2x 2.9%Mecox Lane MCOX $42.7 $21.4 $47.9 74.8% 26.5% 46.5% 0.4x 1.7x n/a n/a -6.6%Mercadolibre MELI $4,343.6 $4,294.1 $632.4 74.7% 29.8% 19.4% 6.8x 22.8x 6.6x 23.8x -21.6%MOL Global MOLG $39.8 $24.8 $53.9 -17.9% -43.0% 23.9% 0.5x n/a n/a n/a -80.5%Overstock.com OSTK $395.2 $291.1 $1,647.9 18.6% 1.2% 15.7% 0.2x 14.2x 0.2x 6.0x -33.5%PetMed Express PETS $338.8 $281.1 $227.6 33.4% 14.2% -0.5% 1.2x 8.7x 1.2x 8.4x 21.2%Stamps.com STMP $1,246.8 $1,164.6 $185.9 78.5% 25.3% 34.9% 6.3x 24.8x 5.4x 16.4x 58.9%Wowo Limited WOWO $558.4 $753.5 $29.9 79.9% -148.2% -2.0% 25.2x n/a n/a n/a -32.0%

Median: $604.8 $746.6 $539.8 44.0% 5.1% 21.4% 1.2x 20.9x 1.4x 13.7x -6.6%








-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Internet Commerce Internet Stock Market Return: January - October 2015

Commerce S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Content & Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDDemandMedia DMD $86.7 $44.4 $134.5 48.4% -13.1% -25.6% 0.3x n/a 0.3x n/a -23.6%InterActiveCorp IAC $5,561.8 $5,766.7 $3,213.0 74.5% 12.8% 7.0% 1.8x 14.1x 1.7x 9.9x 12.8%Netflix NFLX $46,320.3 $46,132.5 $6,440.9 32.4% 5.8% 24.0% 7.2x 124.0x 5.7x 91.9x 117.4%Pandora P $2,456.4 $2,092.8 $1,095.9 47.5% -3.4% 26.0% 1.9x n/a 1.6x 29.0x -35.1%Shutterstock SSTK $1,026.6 $760.3 $400.4 59.5% 12.4% 31.4% 1.9x 15.3x 1.6x 8.6x -58.5%SINA SINA $2,778.9 $1,955.5 $835.6 61.6% 4.7% 10.8% 2.3x 49.6x 2.1x 17.7x 26.0%TheStreet.com TST $50.2 $18.8 $68.0 49.3% 1.5% 16.0% 0.3x 18.9x 0.3x 5.6x -34.8%WebMD Health WBMD $1,499.7 $1,694.6 $607.0 60.7% 21.2% 7.6% 2.8x 13.2x 2.6x 8.4x 3.9%XO Group XOXO $377.9 $292.3 $140.6 90.5% 13.0% 1.0% 2.1x 15.9x 2.0x 11.0x -16.5%Xunlei XNET $524.8 $78.8 $155.5 49.6% 18.1% -3.4% 0.5x 2.8x 0.5x n/a -2.8%Yahoo! YHOO $33,532.3 $28,900.8 $4,948.0 64.4% 9.6% 6.8% 5.8x 60.6x 7.7x 36.1x -29.0%Youku YOKU $4,752.0 $3,854.6 $926.0 22.0% 7.6% 51.6% 4.2x 54.8x 3.3x n/a 32.9%

Median: $1,978.1 $1,825.0 $721.3 54.6% 8.6% 9.2% 2.0x 17.4x 1.9x 11.0x -9.6%









-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%Internet Content & Media Stock Market Return: January - October 2015

Content & Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDChangYou.com CYOU $1,037.5 $721.2 $815.6 70.2% 36.0% 11.1% 0.9x 2.5x 1.0x 3.6x -26.0%Netease NTES $18,893.1 $15,569.7 $2,888.7 63.5% 34.3% 72.1% 5.4x 15.7x 4.1x 12.6x 47.7%NCSoft A036570 $3,316.2 $2,546.0 $706.5 76.5% 34.0% 2.8% 3.6x 10.6x 3.1x 9.0x 1.6%Sohu.com SOHU $1,951.3 $1,411.5 $1,948.2 56.2% 18.6% 23.2% 0.7x 3.9x 0.7x 4.6x -3.6%Tencent Holdings SEHK:700 $176,033.7 $173,620.5 $14,692.9 60.1% 41.5% 24.7% 11.8x 28.5x 10.0x 22.3x 30.3%Zynga ZNGA $2,190.5 $1,131.7 $771.5 70.7% -2.1% 14.4% 1.5x n/a 1.4x 33.8x -13.2%

Median: $2,753.4 $1,978.8 $1,381.9 66.9% 34.2% 18.8% 2.5x 10.6x 2.2x 10.8x -1.0%








-30%

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0%

10%

20%

30%Internet Gaming Stock Market Return: January - October 2015

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD8x8 EGHT $951.8 $802.6 $183.7 72.8% 3.4% 25.8% 4.4x 129.8x 3.6x 39.6x 17.7%Akamai Technologies AKAM $10,826.0 $10,777.5 $2,154.6 67.7% 32.4% 15.6% 5.0x 15.5x 4.6x 11.4x -3.8%Brightcove BCOV $202.6 $180.4 $131.0 65.0% -0.8% 6.1% 1.4x n/a 1.3x 21.9x -19.9%BroadSoft BSFT $940.1 $889.6 $255.1 70.8% 6.9% 25.7% 3.5x 50.4x 3.0x 14.4x 10.9%GoDaddy GDDY $1,786.2 $2,811.6 $1,553.6 64.3% 6.7% 17.6% 1.8x 26.9x 1.6x 7.9x 5.1%Harmonic HLIT $503.9 $416.3 $398.3 53.4% 3.8% -10.7% 1.0x 27.3x 1.2x 22.5x -17.8%Interactive Intelligence ININ $700.7 $634.5 $375.7 60.6% 2.4% 10.7% 1.7x 70.8x 1.5x 82.0x -32.3%Limelight Networks LLNW $204.9 $130.0 $168.9 49.6% -5.9% 3.2% 0.8x n/a 0.7x 14.3x -26.4%Mitel Networks MITL $940.6 $1,527.3 $1,117.1 53.6% 12.5% 22.2% 1.4x 10.9x 1.3x 9.5x -27.0%Polycom PLCM $1,825.1 $1,452.0 $1,299.3 58.4% 12.7% -3.3% 1.1x 8.8x 1.2x 7.2x 3.2%Rovi ROVI $787.4 $1,646.7 $510.9 79.7% 30.4% -8.8% 3.2x 10.6x 3.1x 8.6x -59.4%SeaChange International SEAC $217.4 $152.8 $112.3 50.1% -11.3% -12.0% 1.4x n/a 1.3x 79.8x 3.2%ShoreTel SHOR $618.2 $512.0 $360.4 62.1% 7.9% 4.2% 1.4x 17.9x 1.4x 15.6x 30.4%Sonus Networks SONS $328.8 $218.9 $249.5 64.6% -6.6% -15.6% 0.9x n/a 0.8x 7.1x -67.8%Synacor SYNC $39.8 $15.2 $108.7 47.8% 6.3% 3.5% 0.1x 2.2x 0.1x 3.9x -35.1%Tucows TCX $300.1 $291.3 $166.7 30.5% 11.7% 17.4% 1.7x 14.9x 1.5x 10.5x 41.8%VeriSign VRSN $8,987.5 $8,958.0 $1,042.7 81.7% 62.6% 4.3% 8.6x 13.7x 8.2x 12.0x 40.9%

Median: $700.7 $634.5 $360.4 62.1% 6.7% 4.3% 1.4x 15.5x 1.4x 12.0x -3.8%








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0%

5%

10%

15%

Internet Infrastructure Stock Market Return: January - October 2015

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Search


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBaidu.com BIDU $64,794.8 $60,208.6 $9,711.4 67.1% 26.0% 38.6% 6.2x 23.8x 4.7x 22.0x -16.0%Google GOOGL $497,938.2 $435,523.2 $71,763.0 62.5% 32.5% 12.8% 6.1x 18.7x 5.3x 13.0x 39.2%InterActiveCorp IAC $5,561.8 $5,766.7 $3,213.0 74.5% 12.8% 7.0% 1.8x 14.1x 1.7x 9.9x 12.8%Yandex YNDX $5,134.6 $4,952.7 $858.6 71.6% 30.7% 17.0% 5.8x 18.8x 4.8x 12.7x -12.4%

Median: $35,178.3 $32,987.7 $6,462.2 69.3% 28.3% 14.9% 5.9x 18.7x 4.8x 12.9x 0.2%









-25%

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0%

5%

10%

15%

Internet Search Stock Market Return: January - October 2015

Search S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List ANGI $452.3 $453.2 $340.0 73.0% 5.9% 12.7% 1.3x 22.7x 1.2x 12.0x 21.1%Bankrate RATE $1,197.7 $1,357.1 $551.8 44.2% 20.4% 4.1% 2.5x 12.0x 2.6x 9.3x -3.9%Carbonite CARB $277.8 $215.2 $133.5 70.3% -4.9% 11.7% 1.6x n/a 1.5x 7.1x -28.4%Care.com CRCM $193.4 $133.6 $143.2 73.6% -13.8% 35.5% 0.9x n/a 0.9x n/a -23.4%Coupons.com QUOT $461.1 $258.7 $227.9 61.2% -10.0% 6.3% 1.1x n/a 1.1x 16.9x -67.9%Cimpress CMPR $2,477.7 $3,254.1 $1,536.0 61.2% 13.0% 15.6% 2.1x 16.3x 1.9x 12.7x 6.9%eHealth EHTH $216.1 $154.0 $184.4 97.7% 2.7% -2.4% 0.8x 31.0x 0.8x 16.7x -50.7%Everyday Health EVDY $303.2 $369.3 $213.3 72.1% 9.3% 22.4% 1.7x 18.6x 1.4x 8.0x -35.7%GrubHub GRUB $2,029.2 $1,734.1 $335.2 63.0% 26.5% 46.0% 5.2x 19.5x 4.1x 15.6x -34.4%LendingClub LC $5,320.3 n/a $362.5 84.1% n/a 105.4% n/a n/a n/a n/a -43.1%LifeLock LOCK $1,335.3 $1,003.1 $561.0 76.1% 7.3% 25.0% 1.8x 24.3x 1.5x 12.1x -11.8%Monster Worldwide MWW $572.4 $729.4 $727.5 49.9% 13.1% -2.9% 1.0x 7.6x 1.1x 5.7x 37.8%Qihoo QIHU $7,361.4 $7,849.0 $1,630.3 77.2% 27.0% 64.2% 4.8x 17.9x 3.5x 11.0x -4.4%QuinStreet QNST $249.8 $204.4 $285.3 10.8% -0.8% 3.8% 0.7x n/a 0.7x 14.4x -7.5%Shutterfly SFLY $1,478.5 $1,723.5 $994.7 49.5% 9.3% 17.2% 1.7x 18.5x 1.5x 8.4x 0.0%Tree.Com TREE $1,400.5 $1,294.3 $219.7 96.1% 10.4% 37.4% 5.9x 56.4x 4.2x 27.8x 156.4%Wix.com WIX $878.0 $785.8 $188.2 82.5% -25.2% 50.3% 4.2x n/a 3.3x 38.6x 5.1%Zillow Z $5,452.3 $5,057.3 $567.6 90.3% -2.8% 94.5% 8.9x n/a n/a 43.7x -0.2%

Median: $1,037.9 $785.8 $337.6 72.5% 7.3% 19.8% 1.7x 18.6x 1.5x 12.4x -5.9%








-30%

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-5%

0%

5%

10%

15%Internet Services Stock Market Return: January - October 2015

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDFacebook FB $287,305.1 $273,329.1 $15,938.0 83.9% 41.8% 42.3% 17.1x 41.1x 13.7x 22.5x 30.0%LinkedIn LNKD $31,392.3 $29,444.7 $2,772.4 86.0% 8.3% 37.1% 10.6x 128.3x 8.1x 31.4x 4.9%Mail.ru Group LSE:MAIL $4,058.4 $4,308.2 $558.4 55.8% 41.1% 19.0% 7.7x 18.8x 6.6x 13.8x 26.6%Renren RENN $1,226.9 $983.2 $54.8 38.2% -138.8% -31.6% 17.9x n/a 13.9x n/a 34.6%Twitter TWTR $19,068.6 $17,181.5 $1,986.6 67.4% -10.5% 70.3% 8.6x n/a 6.0x 24.5x -22.2%Yelp YELP $1,674.5 $1,305.6 $505.9 91.4% 3.2% 49.5% 2.6x 80.6x 2.0x 13.4x -59.7%YY YY $3,116.3 $3,023.2 $813.0 42.2% 23.2% 65.6% 3.7x 16.0x 3.1x 12.7x -13.3%

Median: $4,058.4 $4,308.2 $813.0 67.4% 8.3% 42.3% 8.6x 41.1x 6.6x 18.1x 4.9%









-25%

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-5%

0%

5%

10%

15%

20%Internet Social Stock Market Return: January - October 2015

Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCtrip CTRP $18,322.7 $19,087.5 $1,563.2 71.2% 2.0% 44.6% 12.2x 605.5x 9.5x 71.6x 105.6%Expedia EXPE $17,697.1 $19,314.3 $6,329.7 80.2% 11.1% 13.9% 3.1x 27.5x 2.4x 13.0x 59.9%HomeAway AWAY $3,028.3 $2,458.5 $485.3 84.4% 12.6% 13.6% 5.1x 40.1x n/a 17.9x n/aMakeMyTrip MMYT $670.1 $563.6 $300.4 30.7% -6.2% 5.0% 1.9x n/a 3.5x n/a -41.3%Priceline PCLN $73,732.3 $75,944.2 $9,064.1 92.2% 37.9% 11.3% 8.4x 22.1x 7.6x 19.3x 27.3%Travelzoo TZOO $131.7 $75.8 $132.8 86.5% 7.7% -15.1% 0.6x 7.4x 0.6x 14.1x -26.5%TripAdvisor TRIP $12,072.4 $11,649.4 $1,471.0 96.1% 24.9% 25.6% 7.9x 31.8x 6.9x 21.4x 12.3%

Median: $12,072.4 $11,649.4 $1,471.0 84.4% 11.1% 13.6% 5.1x 29.7x 5.2x 18.6x 19.8%

TTM Revenue Growth 13.6%TTM EBITDA Growth -11.4%TTM Earnings Growth 6.4%Gross Profit Margin 84.4%EBITDA Margin 11.1%Net Income Margin 13.3%SG&A Expenses as a % of Total Revenue 54.7%R&D Expenses as a % of Total Revenue 13.5%


Levered FCF Margin 14.1%Cash from Operations Growth (YoY) -1.0%Cash from Investing Growth (YoY) 1.8%Cash from Financing Growth (YoY) -65.3%Levered FCF Growth (YoY) 3.0%





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15%

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25%Internet Travel Stock Market Return: January - October 2015

Travel S&P NASDAQ SEG Internet Index

Documents

2015 Software Equity Group Flash Report and Financial and …sandhill.com/wp-content/files_mf/november_2015_monthly... · 2016-03-29 · Nothing in this Report is intended to be a