European Technology Update - Harris Williams

European Technology Update 19th September 2013

Thierry Monjauze

Managing Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 (0) 20 7518 8900 [email protected]

Francois Morin

Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 (0) 20 7518 8900 [email protected]

www.harriswilliams.com

Member FINRA/SIPC

Dell’s shareholders have approved the $24.9 billion buyout offer by Michael Dell and Silver Lake Partners

Twitter, the social media platform, has filed for an IPO which would value the Company at more than $10

billion

Microsoft has acquired the Nokia mobile device and services business, which includes mobile phone

manufacture, license and use of Nokia’s patents and mapping service, for €3.8 billion

Osiatis, the provider of IT infrastructure services, has been acquired by Econocom Group for €164 million

Assurant has acquired the Lifestyle Services Group, the provider of mobile device protection solutions,

packaged account products and services to the retail banking and telecom sectors, for £110 million

Actix, the provider of mobile network analytics and optimisation solutions, has been acquired by Amdocs for

$120 million

Ascribe, the developer of medical support and process management software to primary and secondary

healthcare providers, has been acquired by EMIS Group for £56 million

Saffron Digital, the provider of mobile and cross-platform web-based media, has been acquired by Cinram

Group for £29 million

Wirecard has acquired PaymentLink, the operator of payment and consumer data processing services, for €31

million

Icelolly Marketing, the operator of a holiday deal price comparison site, has been acquired by Palatine Private

Equity for £17 million

Imagine Nation, the media content company, has been acquired by LDC for £15 million

Ericsson has acquired Airvana’s EVDO business, the developers of EVDO software to enable data transmission

in a CDMA wireless network

Apple has acquired Algotrim, the developer of data compression solutions for mobile devices

Lockheed Martin has acquired Amor Group, the provider of business technology solutions and managed IT

services to the energy, transport and public sectors

Broadcast Text International, the producer of subtitles for TV, radio, cinema and DVDs, has been acquired by

the Carlyle Group

Clinisys, the developer of clinical laboratory information management solutions, has been acquired by Montagu

Private Equity

Fogg, the internet hotel and travel search service provider, has been acquired by Skyscanner

SAP has acquired KXEN, the provider of predictive analytics solutions for businesses

Safe Technology, the developer of fatigue analysis software for finite element models, has been acquired by

Dassault Systemes

Unit 4 has acquired Unify, the developer of software for educational and research institutions

Mcommerce has seen enthusiastic uptake in June 2013 across the US and UK with 8% and 10% of mobile users

making purchases via their mobile device, while other European markets have had significantly lower uptake

with Germany at 6%, Italy and the Netherlands at 4% and France at 2%, according to eMarketer

The UK mobile share of ecommerce sales has reached 23.2% of total digital sales in Q2 2013, compared to

11.6% in Q2 2012, with online retail site visits through mobile devices jumping up from 21.1% in Q2 2012 to

34.0% in Q2 2013, according to eMarketer

4G adoption has become much more widespread in the UK as network operators begin to roll-out the new

service along with 4G-enabled phones. In particular, the 25-34 age group leads adoption with 31% of the

demographic on 4G compared to 21% of 18-24 and 23% in the 35-44 age groups, according to eMarketer

Smartphone video and TV content viewing has increased by 112% in the EU-5 in Q2 2013, compared to Q2

2012. This represents 34.8% of the smartphone population with Germany growing the most to 33.5%, Spain

with the highest portion at 40.2% and the UK at 37.2% of mobile users viewing video content on their

smartphones, according to eMarketer

UK email marketing has failed to make an impact on the mobile front with over 72% of emails being opened

from a desktop and only 20% and 8% on smartphones and tablets. This is further evidenced by the click-through

rates of 27% on desktops, 7% on smartphones and 3% on tablets, according to Pure360

Recent Developments

Source: Various industry news outlets.

Company

Specific

News

Industry

Trends

1

http://www.emarketer.com/Article/Mcommerce-Faces-Strong-Headwinds-France/1010215

http://www.emarketer.com/Article/Mobiles-Share-of-UK-Digital-Retail-Sales-Doubles/1010204

http://www.emarketer.com/Article/4G-Adoption-Encourages-UK-Users-Stick-Around-Mobile-Web/1010201

http://www.emarketer.com/Article/EU-5-Smartphone-Users-Watch-More-Video-on-Their-Handsets/1010198

http://www.pure360.com/online-marketing-news/Missing-a-moving-target

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

Sep 2012 Dec 2012 Mar 2013 Jun 2013 Sep 2013

Nasdaq Composite Internet and Digital Media Software and IT Services Communications DJ Stoxx 600 Technology

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%

14%

13 Aug 18 Aug 23 Aug 28 Aug 02 Sep 07 Sep 12 Sep

Nasdaq Composite Internet and Digital Media Software and IT Services Communications DJ Stoxx 600 Technology

Stock

Performance

Comparable

Trading

Summary

Last Twelve Months

Last 30 Days

Public Market Trading Statistics

2

Sources: Capital IQ, 13 September 2013; Brokers’ reports.

11.8%

6.0%

4.5%

3.0%

1.2%

56.7%

48.1%

36.2%

23.9%

17.1%

CY2013E

EBITDA Margin Growth CY2013E CY2014E CY2013E CY2014E CY2013E CY2014E

Software and IT Services

Enterprise Applications 12.8% 6.5% 2.6x 2.3x 8.5x 12.2x 18.8x 14.8x

European Large Cap Software 33.1% 3.6% 4.1x 3.8x 12.4x 11.1x 19.6x 17.3x

Financial Software 26.2% 4.0% 2.7x 2.5x 10.2x 9.3x 19.8x 17.5x

Healthcare Software 20.6% 11.7% 2.4x 2.2x 11.0x 9.4x 21.8x 17.1x

Large Cap IT Services 13.7% 10.5% 1.1x 1.1x 7.8x 7.3x 15.2x 13.8x

Mid Cap IT Services 8.2% 11.0% 4.0x 3.1x 6.5x 6.0x 12.0x 9.7x

Offshore IT Services 23.1% 4.3% 2.8x 2.5x 11.7x 10.4x 17.2x 15.2x

Security Software 35.2% 4.7% 3.5x 3.3x 9.3x 8.7x 17.2x 15.7x

Communications

Digital Broadband 11.1% (2.2%) 0.7x 0.7x 6.1x 5.2x 16.6x 12.8x

Diversified Communication Equipment 8.6% 0.2% 1.2x 1.1x 13.4x 9.8x 30.5x 22.2x

Mobile Content / Solutions Providers 24.1% 27.5% 3.1x 2.5x 12.6x 9.8x 31.8x 19.8x

Mobile Infrastructure Software 17.3% 35.6% 2.8x 2.5x 12.4x 12.0x 18.1x 16.3x

Internet and Digital Media

Chinese Internet Leaders 14.4% 297.2% 4.9x 3.8x 18.9x 19.7x 24.2x 26.1x

Online Classifieds 40.2% 18.6% 8.6x 7.0x 14.4x 12.2x 22.5x 18.9x

Content Providers / Communities 19.5% 25.6% 5.6x 4.4x 15.1x 11.7x 34.5x 26.0x

Ecommerce 19.9% 19.8% 4.4x 3.6x 18.7x 18.5x 31.1x 28.5x

Global Internet Leaders 36.5% 20.2% 5.9x 4.8x 16.3x 13.3x 20.4x 20.9x

Interactive Entertainment 20.0% (0.3%) 1.7x 1.6x 13.8x 11.2x 14.2x 14.2x

Intermediation and Comparison 17.1% 22.3% 5.5x 4.3x 14.5x 15.5x 30.2x 20.5x

Online Gambling 25.6% 1.5% 2.7x 2.6x 10.4x 9.6x 18.5x 16.9x

Online Marketing 14.6% 5.4% 1.9x 1.7x 12.3x 11.4x 22.9x 20.1x

Online Travel 27.4% 17.5% 4.8x 4.0x 16.3x 13.2x 24.3x 23.0x

P / EEV / Revenue EV / EBITDA

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%


European Large Cap Software Financial Software

Enterprise Applications Healthcare Software

Security Software Large Cap IT Services

Mid Cap IT Services Offshore IT Services

(15%)

(10%)

(5%)

0%

5%

10%


European Large Cap Software Financial Software

Enterprise Applications Healthcare Software

Security Software Large Cap IT Services

Mid Cap IT Services Offshore IT Services


Source: Capital IQ, 13 September 2013.

Last Twelve Months Performance

Last 30 Days Performance

3

Healthcare Software 36.4%

Mid Cap IT Services 31.4%

Financial Software 28.4%

Large Cap IT Services 27.7%

Security Software 22.9%

Offshore IT Services 19.6%

European Large Cap Software 16.1%

Enterprise Applications 11.5%

Enterprise Applications 7.0%

Mid Cap IT Services 5.0%

Financial Software 3.8%

Offshore IT Services 2.7%

Healthcare Software 1.8%

Large Cap IT Services 0.5%

European Large Cap Software 0.2%

Security Software (1.3% )


(Continued)

4 Sources: Capital IQ, 13 September 2013; Brokers’ reports.

Market Enterprise CY2013E

Cap ($m) Value ($m) EBITDA Margin Growth CY2013E CY2014E CY2013E CY2014E CY2013E CY2014E

European Large Cap Software

SAP 86,843 88,934 34.6% 7.1% 3.9x 3.6x 11.2x 10.0x 16.2x 14.5x

Dassault Systemes 16,223 14,179 33.7% 6.2% 5.0x 4.6x 14.8x 13.2x 26.8x 24.0x

Sage 6,155 6,520 29.5% 0.3% 3.0x 2.9x 10.0x 9.6x 15.6x 14.2x

Software AG 2,798 2,910 26.7% (6.0%) 2.2x 2.1x 8.2x 7.6x 13.2x 11.9x

Aveva 2,575 2,273 32.9% 10.5% 5.9x 5.3x 18.0x 15.4x 29.6x 25.2x

Micro Focus 1,818 1,999 45.3% 0.8% 4.7x 4.6x 10.4x 10.2x 13.2x 12.3x

Temenos 1,747 1,897 28.9% 6.0% 4.0x 3.7x 13.8x 12.0x 22.6x 19.2x

Mean 33.1% 3.6% 4.1x 3.8x 12.4x 11.1x 19.6x 17.3x

Median 32.9% 6.0% 4.0x 3.7x 11.2x 10.2x 16.2x 14.5x

Financial Software

Intuit 18,645 17,483 39.6% 4.9% 4.0x 3.8x 10.0x 9.7x 19.8x 17.3x

Temenos 1,747 1,897 28.9% 6.0% 4.0x 3.7x 13.8x 12.0x 22.6x 19.2x

SimCorp 1,369 1,309 25.9% 11.1% 4.3x 3.8x 16.5x 14.2x 25.4x 20.9x

Fidessa 1,249 1,169 27.4% (1.4%) 2.6x 2.5x 9.6x 9.1x 26.0x 24.4x

Innovation 470 432 13.9% 4.8% 1.3x 1.2x 9.2x 8.3x 20.7x 17.8x

Linedata 210 252 25.1% 14.3% 1.2x 1.1x 4.6x 4.4x 10.2x 9.5x

Microgen 170 127 32.3% (8.7%) 2.7x 2.6x 8.2x 8.1x 15.2x 15.1x

StatPro 85 80 16.1% 0.8% 1.6x 1.5x 9.7x 8.8x 18.2x 16.0x

Mean 26.2% 4.0% 2.7x 2.5x 10.2x 9.3x 19.8x 17.5x

Median 26.7% 4.9% 2.6x 2.5x 9.6x 8.9x 20.2x 17.5x

Enterprise Applications

Guidewire Software 2,685 2,528 10.0% 17.5% 8.3x 7.0x NM 47.7x NM NM

Unit 4 1,134 1,284 20.4% 5.0% 2.0x 1.8x 9.6x 8.6x 23.6x 20.6x

Jive Software 897 772 (19.5%) 29.3% 5.3x 4.3x NM NM NM NM

Exact 564 489 22.2% 0.0% 1.7x 1.7x 7.7x 7.5x 14.5x 14.3x

IFS 519 500 12.2% 1.6% 1.2x 1.2x 9.8x 7.0x 21.2x 14.2x

Kofax 483 386 15.5% 3.1% 1.4x 1.3x 8.8x 8.3x 18.7x 17.1x

SDL 444 443 8.0% (1.6%) 1.0x 1.0x 12.9x 8.4x 27.8x 14.6x

F-Secure 371 326 20.8% 1.3% 1.6x 1.5x 7.4x 6.9x 16.8x 14.2x

Cegid 219 310 25.5% 1.9% 0.9x 0.9x 3.4x 3.3x 8.9x 8.5x

Mean 12.8% 6.5% 2.6x 2.3x 8.5x 12.2x 18.8x 14.8x

Median 15.5% 1.9% 1.6x 1.5x 8.8x 7.9x 18.7x 14.3x

Healthcare Software

McKesson 29,424 31,393 2.6% 4.3% 0.2x 0.2x 9.5x 8.5x 17.7x 14.4x

Cerner 16,805 16,018 33.0% 11.8% 5.4x 4.8x 16.4x 14.1x 34.7x 29.6x

Allscripts Healthcare Solutions 2,623 3,096 14.4% (3.8%) 2.2x 2.1x 15.2x 11.5x 44.2x 26.4x

CompuGroup 1,179 1,506 21.4% 2.2% 2.5x 2.3x 11.5x 9.7x 15.9x 13.0x

Advanced Computer Software 596 549 22.2% 55.3% 1.9x 1.7x 8.7x 7.6x 15.1x 13.6x

Emis 585 567 33.6% 10.6% 3.6x 3.4x 10.8x 9.7x 19.0x 16.8x

Cegedim 381 1,047 17.2% 1.7% 0.9x 0.8x 5.0x 4.7x 6.2x 5.5x

Mean 20.6% 11.7% 2.4x 2.2x 11.0x 9.4x 21.8x 17.1x

Median 21.4% 4.3% 2.2x 2.1x 10.8x 9.7x 17.7x 14.4x

EV / Revenue EV / EBITDA P / E


(Continued)




Security Software

Symantec 17,537 15,848 30.4% 1.3% 2.3x 2.2x 7.5x 6.5x 13.7x 12.1x

Check Point 11,389 10,149 58.8% 3.3% 7.3x 6.9x 12.4x 11.7x 17.1x 15.7x

Trend Micro 4,922 3,628 31.6% 0.1% 3.3x 3.3x 10.6x 10.3x 26.9x 26.3x

AVG Technologies 1,270 1,265 34.4% 17.7% 3.0x 2.6x 8.7x 8.0x 11.3x 9.9x

F-Secure 371 326 20.8% 1.3% 1.6x 1.5x 7.4x 6.9x 16.8x 14.2x

Mean 35.2% 4.7% 3.5x 3.3x 9.3x 8.7x 17.2x 15.7x

Median 31.6% 1.3% 3.0x 2.6x 8.7x 8.0x 16.8x 14.2x

Large Cap IT Services

Accenture 48,041 42,586 16.5% 1.9% 1.5x 1.4x 9.0x 8.5x 17.7x 16.1x

Capita Group 10,430 12,911 15.3% 13.3% 2.1x 1.9x 13.7x 12.6x 17.8x 16.1x

CGI 10,044 12,842 14.3% 59.3% 1.3x 1.3x 9.1x 8.0x 15.6x 12.9x

Cap Gemini 9,081 8,875 10.1% 0.5% 0.7x 0.6x 6.5x 6.1x 14.6x 13.3x

Computer Sciences 7,624 8,418 15.1% (12.5%) 0.6x 0.6x 4.0x 4.0x 12.9x 12.5x

Atos Origin 6,489 6,043 11.0% 0.4% 0.5x 0.5x 4.7x 4.4x 12.9x 11.7x

Mean 13.7% 10.5% 1.1x 1.1x 7.8x 7.3x 15.2x 13.8x

Median 14.7% 1.2% 1.0x 0.9x 7.8x 7.0x 15.1x 13.1x

Mid Cap IT Services

Splunk 6,181 5,834 2.4% 45.1% 20.8x 15.6x NM NM NM NM

Indra Sistemas 2,485 3,345 9.6% 3.4% 0.8x 0.8x 8.8x 8.1x 14.9x 12.1x

Tieto 1,521 1,629 12.7% (6.1%) 0.7x 0.7x 5.6x 5.3x 14.0x 10.9x

Sopra 1,061 1,348 8.9% 11.9% 0.8x 0.7x 8.6x 7.5x 12.0x 10.6x

Groupe Steria 503 890 8.3% (3.1%) 0.4x 0.4x 4.5x 4.1x 7.1x 5.6x

GFI Informatique 282 364 7.1% 15.0% 0.4x 0.4x 5.1x 4.9x 12.1x 9.4x

Mean 8.2% 11.0% 4.0x 3.1x 6.5x 6.0x 12.0x 9.7x

Median 8.6% 7.6% 0.7x 0.7x 5.6x 5.3x 12.1x 10.6x

Offshore IT Services

Tata 60,293 58,973 28.6% 7.0% 5.1x 4.3x 17.7x 15.1x 23.7x 19.8x

Infosys 27,334 23,607 25.5% 5.2% 3.2x 2.9x 12.5x 11.1x 18.1x 16.2x

Cognizant 24,016 21,116 20.7% 19.0% 2.4x 2.1x 11.6x 10.1x 18.7x 16.2x

Wipro 17,611 15,883 21.0% (15.2%) 2.5x 2.2x 11.7x 10.2x 16.4x 14.4x

HCL 11,526 10,850 22.8% 5.5% 2.4x 2.1x 10.5x 9.9x 15.6x 14.7x

Satyam 2,141 1,773 20.2% 4.1% 1.3x 1.2x 6.2x 6.1x 10.6x 9.8x

Mean 23.1% 4.3% 2.8x 2.5x 11.7x 10.4x 17.2x 15.2x

Median 21.9% 5.3% 2.4x 2.2x 11.7x 10.1x 17.3x 15.4x

P / EEV / Revenue EV / EBITDA

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%


Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers

(40%)

(20%)

0%

20%

40%

60%

80%

100%


Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers



Communications

6 Source: Capital IQ, 13 September 2013.

Diversified Communication Equipment 85.1%

Mobile Content / Solutions Providers 44.6%

Mobile Infrastructure Software 41.5%

Digital Broadband 32.4%

Diversified Communication Equipment 31.4%

Mobile Content / Solutions Providers 9.7%

Mobile Infrastructure Software 6.4%

Digital Broadband 6.0%

Communications

(Continued)




Digital Broadband

Technicolor 1,673 2,647 15.0% (1.6%) 0.6x 0.6x 3.7x 3.6x 10.2x 8.0x

TomTom 1,585 1,577 14.1% (9.0%) 1.2x 1.3x 8.8x 8.6x 22.8x 20.9x

Logitech 1,350 1,026 5.5% (5.0%) 0.5x 0.5x 9.0x 6.2x 25.7x 19.8x

Pace 1,342 1,414 9.4% 0.8% 0.6x 0.6x 6.0x 5.6x 10.2x 9.6x

Kudelski 719 868 14.0% (0.6%) 0.9x 0.9x 6.6x 6.2x 13.3x 11.8x

Parrot 367 267 10.6% (6.9%) 0.8x 0.7x 7.2x 4.5x 25.9x 12.1x

Advanced Digital Broadcast 87 59 9.5% 6.6% 0.1x 0.1x 1.4x 1.4x 8.0x 7.1x

Mean 11.1% (2.2%) 0.7x 0.7x 6.1x 5.2x 16.6x 12.8x

Median 10.6% (1.6%) 0.6x 0.6x 6.6x 5.6x 13.3x 11.8x

Diversified Communication Equipment

LM Ericsson Telephone 43,614 38,010 12.1% 1.0% 1.1x 1.0x 9.0x 7.3x 19.9x 15.3x

Nokia 23,415 19,145 6.2% (19.8%) 0.6x 0.6x 9.6x 7.2x NM 24.6x

Alcatel-Lucent 7,818 9,826 5.1% 0.7% 0.5x 0.5x 9.9x 6.6x NM NM

CIENA 2,597 3,330 8.8% 15.1% 1.5x 1.4x 17.6x 13.5x 37.5x 22.2x

ADTRAN 1,572 1,428 10.7% 4.0% 2.2x 2.0x 20.8x 14.4x 34.0x 26.8x

Mean 8.6% 0.2% 1.2x 1.1x 13.4x 9.8x 30.5x 22.2x

Median 8.8% 1.0% 1.1x 1.0x 9.9x 7.3x 34.0x 23.4x

Mobile Infrastructure Software

QUALCOMM 117,644 106,208 38.2% 25.8% 4.1x 3.8x 10.8x 10.3x 15.0x 13.6x

VeriSign 7,158 6,516 64.1% 9.9% 6.8x 6.4x 10.6x 9.9x 21.5x 19.5x

Amdocs 5,963 4,872 21.1% 3.5% 1.4x 1.4x 6.8x 6.8x 12.6x 11.9x

Synchronoss Technologies 1,424 1,374 31.4% 28.8% 3.9x 3.3x 12.5x 9.9x 27.9x 22.3x

Sonus Networks 1,032 820 0.5% 6.8% 3.0x 2.8x NM NM NM NM

Redknee Solutions 421 362 6.8% 221.2% 1.9x 1.4x 28.1x 28.1x NM NM

TeleCommunication Systems 157 251 10.8% (14.6%) 0.6x 0.6x 5.7x 6.8x 13.4x 14.1x

Smith Micro Software 37 14 (34.6%) 3.3% 0.3x 0.3x NM NA NM NA

Mean 17.3% 35.6% 2.8x 2.5x 12.4x 12.0x 18.1x 16.3x

Median 15.9% 8.4% 2.4x 2.1x 10.7x 9.9x 15.0x 14.1x

Mobile Content / Solutions Providers

Opera Software 1,279 1,221 28.3% 38.4% 4.1x 3.1x 14.5x 10.4x 33.9x 20.2x

GameLoft 760 679 19.9% 16.7% 2.1x 1.9x 10.6x 9.1x 29.7x 19.4x

Mean 24.1% 27.5% 3.1x 2.5x 12.6x 9.8x 31.8x 19.8x

Median 24.1% 27.5% 3.1x 2.5x 12.6x 9.8x 31.8x 19.8x

P / EEV / EBITDAEV / Revenue

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%


Global Internet Leaders Ecommerce

Online Travel Online Marketing

Content Providers / Communities Intermediation and Comparison

Online Classifieds Chinese Internet Leaders

Online Gambling Interactive Entertainment

(40%)

(20%)

0%

20%

40%

60%

80%

100%

120%

140%


Global Internet Leaders Ecommerce

Online Travel Online Marketing

Content Providers / Communities Intermediation and Comparison

Online Classifieds Chinese Internet Leaders

Online Gambling Interactive Entertainment




8 Source: Capital IQ, 13 September 2013.

Ecommerce 16.1%

Chinese Internet Leaders 12.9%

Online Classifieds 10.6%

Intermediation and Comparison 3.1%

Online Marketing 2.7%

Content Providers / Communities 2.6%

Global Internet Leaders 1.7%

Online Gambling 0.7%

Online Travel 0.6%

Interactive Entertainment (2.4% )

Ecommerce 121.7%

Content Providers / Communities 72.6%

Online Travel 70.0%

Chinese Internet Leaders 68.0%

Online Classifieds 50.8%

Online Gambling 44.4%

Interactive Entertainment 25.2%

Online Marketing 23.8%

Global Internet Leaders 16.8%

Intermediation and Comparison 14.7%


(Continued)




Global Internet Leaders

Apple 422,360 396,643 31.9% 3.2% 2.3x 2.1x 7.3x 6.7x 12.0x 10.5x

Google 296,078 249,846 35.8% 13.6% 4.2x 3.6x 11.7x 9.9x 20.4x 17.3x

Microsoft 275,138 215,214 39.7% 11.3% 2.7x 2.5x 6.7x 6.3x 12.2x 11.5x

Amazon 136,115 131,694 6.7% 19.8% 1.8x 1.5x 26.5x 19.3x NM NM

Facebook 107,909 99,824 55.4% 46.4% 13.6x 10.3x 24.5x 18.7x NM 46.6x

eBay 69,672 63,769 33.5% 15.0% 3.9x 3.4x 11.8x 10.1x 19.8x 16.8x

Baidu 49,892 46,475 44.0% 43.1% 9.2x 7.0x 20.9x 16.6x 28.2x 22.6x

Yahoo! 29,855 27,325 35.7% 0.4% 6.1x 5.9x 17.1x 16.3x 20.0x 17.5x

Yandex 11,222 11,006 45.5% 29.0% 9.1x 7.2x 19.9x 16.1x 30.1x 24.2x

Mean 36.5% 20.2% 5.9x 4.8x 16.3x 13.3x 20.4x 20.9x

Median 35.8% 15.0% 4.2x 3.6x 17.1x 16.1x 20.0x 17.4x

Ecommerce

Amazon 136,115 131,694 6.7% 19.8% 1.8x 1.5x 26.5x 19.3x NM NM

Facebook 107,909 99,824 55.4% 46.4% 13.6x 10.3x 24.5x 18.7x NM 46.6x

eBay 69,672 63,769 33.5% 15.0% 3.9x 3.4x 11.8x 10.1x 19.8x 16.8x

Netflix 18,010 17,430 7.6% 20.7% 4.0x 3.4x NM 34.5x NM NM

Mail.ru 7,791 7,578 52.3% 22.1% 9.1x 7.6x 17.4x 14.4x 24.0x 20.6x

Groupon 7,780 6,595 12.4% 9.4% 2.6x 2.3x 20.9x 16.5x NM 40.6x

Mercadolibre 5,535 5,349 35.4% 26.4% 11.3x 9.2x 31.8x 25.2x 45.2x 35.8x

IAC 4,407 4,416 19.6% 15.1% 1.4x 1.2x 7.1x 5.9x 13.7x 11.6x

Ocado 3,456 3,503 5.6% 14.2% 2.9x 2.4x NM 31.0x NM NM

Shutterfly 2,160 2,032 19.1% 30.5% 2.6x 2.2x 13.6x 11.3x 41.7x 35.6x

YOOX 1,968 1,969 9.7% 26.7% 3.2x 2.5x 32.6x 24.0x NM NM

Vistaprint 1,801 1,989 12.5% 10.6% 1.6x 1.5x 13.1x 10.3x 22.0x 17.9x

OpenTable 1,734 1,642 42.3% 16.7% 8.7x 7.4x 20.6x 17.0x 40.0x 34.2x

Overstock 662 578 3.3% 15.2% 0.5x 0.4x 13.7x 11.7x 28.5x 22.9x

Digital River 587 321 8.1% 3.7% 0.8x 0.8x 9.9x 6.1x 28.7x 23.3x

Blue Nile 481 434 5.1% 11.8% 0.9x 0.8x 18.6x 15.1x 47.2x 36.6x

Mean 19.9% 19.8% 4.4x 3.6x 18.7x 18.5x 31.1x 28.5x

Median 12.4% 16.7% 2.9x 2.4x 18.0x 16.5x 28.6x 28.8x

Online Travel

Priceline 49,792 46,142 38.0% 27.4% 6.9x 5.6x 18.1x 14.4x 24.1x 19.6x

Amadeus 14,799 16,569 38.4% 7.1% 4.1x 3.8x 10.6x 9.9x 18.4x 16.8x

Tripadvisor 10,412 10,401 40.2% 24.4% 11.0x 8.9x 27.3x 21.0x 42.4x 32.5x

Expedia 6,962 6,409 17.4% 17.9% 1.4x 1.2x 7.8x 6.7x 16.7x 14.4x

Ctrip 6,289 5,598 22.1% 28.3% 6.5x 5.2x 29.3x 22.2x 37.6x 29.7x

Orbitz 1,103 1,331 16.6% 9.3% 1.6x 1.5x 9.4x 8.4x 6.9x 27.4x

Travelzoo 421 347 19.1% 7.8% 2.2x 2.0x 11.3x 9.7x 23.7x 20.3x

Mean 27.4% 17.5% 4.8x 4.0x 16.3x 13.2x 24.3x 23.0x

Median 22.1% 17.9% 4.1x 3.8x 11.3x 9.9x 23.7x 20.3x

Online Marketing

HomeAway 2,698 2,362 27.9% 21.8% 6.9x 5.8x 24.8x 19.9x NM NM

ValueClick 1,690 1,666 34.3% 6.4% 2.4x 2.2x 6.9x 6.3x 13.9x 11.9x

Constant Contact 657 558 15.7% 13.8% 2.0x 1.7x 12.4x 10.2x 31.7x 25.2x

Marchex 246 227 8.7% 6.2% 1.6x 1.4x 17.9x 13.9x 44.1x 35.7x

1000mercis 185 140 31.1% 9.6% 2.7x 2.5x 8.6x 7.8x 15.4x 13.5x

TradeDoubler 140 115 4.3% (13.1%) 0.4x 0.3x 8.4x 7.1x 18.2x 14.9x

Hi-Media 105 139 7.8% (0.4%) 0.5x 0.5x 6.8x 6.2x 13.3x 10.3x

ad pepper media 23 8 (2.3%) (2.0%) 0.1x 0.1x NM 16.0x NM NM

Mean 14.6% 5.4% 1.9x 1.7x 12.3x 11.4x 22.9x 20.1x

Median 8.7% 6.2% 1.6x 1.4x 10.5x 10.2x 18.2x 14.9x

Content Providers / Communities

LinkedIn 29,322 28,449 23.9% 59.9% 18.8x 13.3x NM NM NM NM

Pandora Media 4,232 4,173 2.2% 52.7% 6.4x 4.7x NM NM NM NM

Perform Group 2,356 2,396 24.2% 40.3% 6.9x 5.6x 28.6x 20.0x 39.2x 28.5x

WebMD Health 1,537 1,311 22.1% 10.6% 2.6x 2.4x 11.6x 9.7x 37.3x 24.3x

Move 635 603 12.4% 14.8% 2.6x 2.3x 21.4x 15.7x 37.7x 25.9x

Demand Media 582 532 23.0% 7.4% 1.3x 1.2x 5.7x 5.2x 22.3x 19.8x

XING 543 457 28.4% 14.8% 4.1x 3.7x 14.5x 11.5x 39.1x 28.1x

Meetic 384 300 NA NA NA NA NA NA NA NA

XO Group 321 238 20.2% 4.3% 1.8x 1.7x 8.7x 7.7x 31.3x 29.6x

Mean 19.5% 25.6% 5.6x 4.4x 15.1x 11.7x 34.5x 26.0x

Median 22.6% 14.8% 3.4x 3.0x 13.1x 10.6x 37.5x 27.0x

EV / EBITDA P / EEV / Revenue


(Continued)




Intermediation and Comparison

Zillow 3,589 3,420 11.3% 67.1% 18.0x 12.8x NM NM NM NM

Bankrate 1,809 1,891 26.3% (2.9%) 4.1x 3.7x 15.7x 13.0x 34.2x 25.0x

Moneysupermarket 1,416 1,375 35.4% 6.4% 3.9x 3.6x 11.0x 10.0x 15.7x 14.2x

Angie's List 1,223 1,171 (5.4%) 59.3% 4.7x 3.4x NM 37.6x NM NM

Liquidity Services 1,143 1,080 21.7% (0.1%) 2.2x 2.0x 10.0x 9.0x 19.9x 18.2x

eHealth 519 429 13.7% 11.0% 2.5x 2.1x 18.1x 11.5x 44.0x 27.6x

Gruppo MutuiOnline 184 176 17.0% 15.1% 3.0x 2.3x 17.8x 11.6x 37.3x 17.6x

Mean 17.1% 22.3% 5.5x 4.3x 14.5x 15.5x 30.2x 20.5x

Median 17.0% 11.0% 3.9x 3.4x 15.7x 11.6x 34.2x 18.2x

Online Classifieds

Yelp 4,103 4,006 12.5% 64.8% 17.8x 12.1x NM NM NM NM

Rightmove 3,710 3,700 74.3% 15.9% 16.9x 14.7x 22.7x 19.6x 30.9x 26.0x

SouFun 3,672 3,751 51.7% 39.8% 6.4x 5.3x 12.3x 10.3x 16.4x 13.9x

SEEK 3,568 4,408 38.4% 15.8% 7.0x 5.8x 18.1x 15.0x 26.4x 22.1x

Carsales.au 2,468 2,517 56.4% 3.0% 11.7x 10.3x 20.8x 17.9x 29.4x 25.1x

51job 1,955 1,488 34.7% 11.6% 5.7x 4.8x 16.4x 13.0x 23.7x 18.4x

Monster 539 599 18.4% (10.0%) 0.7x 0.7x 4.0x 3.9x 14.4x 12.9x

Dice 506 491 35.1% 8.1% 2.3x 2.2x 6.7x 6.0x 16.0x 14.1x

Mean 40.2% 18.6% 8.6x 7.0x 14.4x 12.2x 22.5x 18.9x

Median 36.7% 13.7% 6.7x 5.5x 16.4x 13.0x 23.7x 18.4x

Chinese Internet Leaders

Tencent 97,457 96,724 37.3% 38.9% 9.9x 7.6x 26.7x 21.6x 36.6x 29.3x

Baidu 49,892 46,475 44.0% 43.1% 9.2x 7.0x 20.9x 16.6x 28.2x 22.6x

Netease 9,388 6,719 51.2% 18.7% 4.3x 3.8x 8.5x 7.4x 12.8x 11.6x

Sina 5,543 4,787 7.9% 24.0% 7.4x 5.9x NM 32.5x NM 45.3x

Youku Tudou 4,450 3,908 (8.6%) 77.5% 7.8x 5.3x NM 43.9x NM NM

SouFun 3,672 3,751 51.7% 39.8% 6.4x 5.3x 12.3x 10.3x 16.4x 13.9x

Sohu 2,479 2,132 24.2% 31.2% 1.5x 1.3x 6.4x 5.5x 28.1x 19.0x

Renren 1,341 505 (65.6%) 11.2% 2.6x 2.1x NM NM NM NM

Dangdang 714 503 (3.7%) 26.2% 0.5x 0.4x NM NM NM NM

Jiayuan 224 139 15.4% 24.6% 1.7x 1.4x 11.1x 9.1x 23.1x 20.0x

Taomee 214 97 4.8% 8.8% 2.2x 2.0x 46.4x 30.8x NM 46.7x

Mean 14.4% 297.2% 4.9x 3.8x 18.9x 19.7x 24.2x 26.1x

Median 15.4% 26.2% 4.3x 3.8x 12.3x 19.4x 25.6x 21.3x

Online Gambling

Playtech 3,306 2,524 44.7% 13.0% 5.1x 4.6x 11.5x 10.7x 16.8x 16.0x

Betfair 1,714 1,447 21.8% (0.1%) 2.4x 2.2x 10.8x 10.2x 25.4x 22.1x

bwin.party digital entertainment 1,485 1,286 17.7% (12.5%) 1.4x 1.4x 7.9x 6.8x 13.8x 11.9x

888 920 823 18.4% 5.5% 2.1x 2.0x 11.3x 10.8x 18.2x 17.7x

Mean 25.6% 1.5% 2.7x 2.6x 10.4x 9.6x 18.5x 16.9x

Median 20.1% 2.7% 2.2x 2.1x 11.1x 10.5x 17.5x 16.9x

Interactive Entertainment

Activision 18,997 14,451 33.5% (10.4%) 3.4x 3.1x 10.0x 8.5x 19.4x 13.8x

Electronic Arts 8,177 7,330 22.2% 14.8% 1.7x 1.8x 7.7x 10.1x 16.3x 20.2x

Zynga 2,477 1,362 2.3% (29.5%) 1.6x 1.8x NM 31.0x NM NM

Take-Two Interactive Software 1,641 1,570 3.6% 14.2% 1.3x 0.8x 35.6x 4.6x 7.1x 9.7x

Ubisoft Entertainment 1,512 1,367 38.1% 9.5% 0.8x 0.7x 2.0x 1.8x 13.8x 13.1x

Mean 20.0% (0.3%) 1.7x 1.6x 13.8x 11.2x 14.2x 14.2x

Median 22.2% 9.5% 1.6x 1.8x 8.9x 8.5x 15.1x 13.5x

P / EEV / EBITDAEV / Revenue

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