Real Estate Technology Sector Summary Q1 2018 Review · −Real estate technology continues to be one of the most active categories in the market, with ~$1.7Bn in financing activity

1

Real Estate Technology Sector SummaryQ1 2018 Review

22

REAL ESTATE TECHNOLOGY SECTOR SUMMARY

Select Q1 Active Investors Select Q1 Active Strategic Buyers

Executive Summary

− Real estate technology continues to be one of the most active categories in the market, with ~$1.7Bn in financing activity across 62 companies and 28 M&A transactions in Q1 2018

− Increase in large scale financings as category leaders begin to differentiate themselves from competition and investors increasingly look to back established players

• Activity across multiple sub-verticals, led by SoftBank’s investment in Katerra, SilverLake’s investment in Credit Karma and Lennar / Fifth Wall’s investment in OpenDoor

• Multiple investments in the mortgage origination and closing software sector – Blend, Roostify and Qualia all raised capital in Q1 2018

− Large scale consolidators continue to be active with M&A activity, including some large transactions in the title and mortgage servicing sector

• Fidelity National Financial’s acquisition of Stewart Title reflect ongoing consolidation in the title market

− Insight’s acquisition of Property Brands reflects continued activity in the multi-family property management space, especially centered around a vertical software / payments theme (Yapstone completed a large financing in Q1 2018 to continue expansion in their vertical payments platform in the multi-family / RE market)

33

GCA REAL ESTATE TECHNOLOGY TEAM

Chris GoughManaging Director

Head of Real Estate TechnologyPhone: (415) 318-3658Mobile: (415) [email protected]

Sean MinnihanManaging Director

Head of Financial TechnologyPhone: (212) 999-7077Mobile: (917) 364-6230

[email protected]

Steve FletcherManaging DirectorCo-Head of Software

Phone: (415) 318-3661Mobile: (415) 518-6725

[email protected]

Paul DiNardoManaging DirectorCo-Head of Software

Phone: (212) 999-7097Mobile: (650) 483-7246

[email protected]

Residential Software Commercial Software Mortgage / Lending Title / Insurance

Home Services Facilities Management Construction Tech

June 2016

Investment from

We advised the seller

Acquired by


August 2015

MBO backed by


April 2017

Acquired by


August 2014

Acquired by


December 2016

Acquired by


August 2013

Acquired by


August 2016

Minority Investment From


October 2017

Key Sub-Sector Coverage Verticals

Majority Interest Acquired by

We Advised the Seller

October 2017

Acquired by

We Advised the Seller

February 2018

44

$582 $478

$413

$646 $745

$448

$1,434

$1,700

Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18

Ann. Date Company

Selected Investor(s)

Amt. Invested

Funding to Date

Latest Reported

Post-Money

Valuation

3/28 ~$500 $370 $4,000

3/27 NA $167 $500

3/23 $62 $161 $825

3/12 $31 $72 $211

3/7 $33 $40 $153

2/15 $25 $30 $75

2/13 $71 $187 $471

2/8 $21 $40 $96

2/6 $16 $39 $60

1/24 $865 $1,110 $3,000

1/24 $135 $455 $1,050

1/18 $50 $104 $300

1/18 $42 $75 $292


(1)

($MM)($MM)Number of Deals Deal Value

Avg. Deal Value:

$7.8 $27.4$25.6$7.7$12.4$13.6$ 17.2$8.1

Notes:Source: Pitchbook and Press Releases.(1) Includes LendingHome $250MM bridge financing.(2) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.

(3) Excludes Airbnb financing rounds.(4) Excludes Houzz financing rounds.(5) Acquired a minority stake.(6) Includes $100MM in debt financing from Lennar Corp.(7) Excludes Credit Karma’s estimated ~$500MM secondary financing.

Deal Dashboard

(4)

Quarterly Financing Activity (2)(3) Select Q1 2018 Financing Transactions

(6)

59

24

75

48

60

58 56

~$1.7Bn in private financing into the RE

tech market in Q1 2018 – average deal

size increasing reflects continued support

of large, category leaders (e.g. OpenDoor,

ApartmentList, Credit Karma, etc.)

62

(5)

(7)

55

15

9 8

12

9

20

16

28

Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18

Buyer TargetAnnounced

DateEnt.

Value

3/28 NA

3/27 NA

3/18 $1,138

3/13 $205

3/8 NA

3/5 NA

2/26 NA

2/12 $3,587

2/8 NA

2/7 $395

2/2 $500

(Lending Solutions Business)(Acquired a 55% stake)


($MM)

Notes:Source: Capital IQ, Pitchbook, Press Releases and Company filings.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.

Deal Dashboard

Quarterly M&A Activity (1) Select Q1 2018 M&A Transactions

Highly active M&A market with strong

activity from both PE and strategics

66

Residential Real Estate Technology

Company FoundedAmt. Raised/

Invested

2012 $713

2014$455 Equity /

$400 Debt

2009 $144

2008 $104

2011 $104

2008 $85

2015 $75

2012 $72

2014 $64

2012 $56

Notes:Source: Capital IQ and Pitchbook.(1) Reflects combined funding after VTS/Hightower merger. VTS and Hightower individually raised

$88mm and $22mm, respectively.(2) Excludes $250MM bridge financing.(3) Excludes Airbnb and Houzz financing rounds.

(2)

(1)

(3)

Deal completed in Q1 2018

REAL ESTATE TECHNOLOGY SECTOR SUMMARYPrivate Company Funding Leaders

Mortgage / Closing / Insurance Technology


Invested

2015 $180

2012 $167

2013 $109

2013 $105

2010 $78

1998 $55

2014 $55

2005 $42

2015 $40

2012 $30

($MM) ($MM) ($MM)

CRE / Facilities / Construction Technology Residential Real Estate Technology


Invested

2015 $1,110

1995 $259

2002 $232

2012 $161

2014 $133

2010 $131

2011 $110

1999 $100

2013 $97

2004 $65

/

77

($MM)FY2015 FY2016 FY2017

Revenue $4.8 $26.1 $65.5Growth % 448% 151%

Gross Profit 2.8 14.9 36.2Margin % 59% 57% 55%

Adjusted EBITDA (7.4) (13.6) (6.3) Adj. EBITDA Margin % (156%) (52%) (10%)

Notes:Source: Company Website and filings, Capital IQ , Pitchbook and Press Releases. Exchange rate of 1.4015 GBP/USD as of 3/31/2018.(1): Fiscal year ends April 30.

− On March 26, 2018, Axel Springer and Purplebricks entered into an agreement under which Axel Springer has agreed to make a £125MM strategic investment

− Deal includes a £100MM subscription of new shares

− Axel Springer will now own approximately 11.5% of Purplebricks

− The investment will be used to accelerate Purplebricks’ rollout into the United States, support entry into new markets and fund technological innovation and expand the service offering

Headquarters: Solihull, England

Description: Operates an online fixed fee real estate brokeringplatform. The Company's online real estate brokeringplatform offers buying and selling of commercial andresidential properties, enabling clients to avail qualityresidential and commercial properties.

Strategic Investment In

Pending

Transaction Overview Overview

Platform

Accelerated U.S. Rollout – Purplebricks’ business model is

positioned to capitalize on current U.S. market dynamics and

provide consumers with an improved full service alternative. The

Company has expanded into 4 “Designated Marketing Areas” in

California and will be launching in the New York DMA on April 3rd .

Entering Strategic Markets – Create the infrastructure for rapid

growth and localize a technology platform for each new market

while aggressively pushing advertising and marketing.

Technological Innovation and Expansion – Cement its position in

hybrid / online markets to develop better, more rapid methods of

communication, search functionality and additional advertising and

marketing options for sellers and information customers.

1

2

3

Use of Proceeds – Growth Strategy U.S. Expansion

− Enables showings to be booked and offers to be made instantly without waiting for a broker, driving quicker negotiations and sales processes

− Buyers and sellers communicate securely and directly through the platform

− Platform provides the ability to draw a ‘search zone’ and will notify buyers and sellers when there are new properties that are bought / sold in the area

− Search platform provides users with features and information that allows homes to be filtered by numerous potential criteria

− Purplebricks’ local real estate expert provides a full CMA of the property based on local knowledge and experience

REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Axel Springer’s Strategic Investment in Purplebricks (LON: PURP)

(1)

88Notes:Source: Company Website and filings, Company Filings, Capital IQ , Pitchbook and Press Releases.(1) Stewart shareholders can also elect to receive $50 in cash or 1.285 common shares of Fidelity for each Stewart share held.

− On March 18, 2018, Fidelity National Financial reached a definitive agreement to acquire Stewart Information Services Corporation for ~$1.2Bn ($50.00 per share), a 23% stock price premium to the day prior

− Stewart shareholders will receive $25.00 in cash and 0.6425 common shares of Fidelity for each share of Stewart common stock held at closing(1)

− Fidelity National Financial expects to achieve at least $135MM in operational cost synergies and projects the acquisition would have been at least 15% accretive to pro-forma 2017 adjusted net earnings

− The transaction is expected to close in Q1 or Q2 of 2019, subject to regulatory approval

Acquired

Pending

Transaction Overview M&A Transaction History

Title Revenue by Type ($MM)

Ann.Date

TargetEnterprise

Value ($MM)EV / LTM Revenue

EV / LTM EBITDA

3/18/18 $1,138 0.6x 10.1x

10/02/17 ~Conf ~Conf ~Conf

7/25/17 N / A N / A N / A

6/26/17 N / A N / A N / A

5/22/17 N / A N / A N / A

2/21/17 N / A N / A N / A

7/26/16 $229 ~Conf ~Conf

$617 $606 $552

$178 $176$187

$83 $93$97

$20 $19$27

$897 $894$862

2015 2016 2017

Domestic Non-Commercial Domestic Commercial

International Non-Commercial International Commercial

REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Stewart Information Services Corporation (NYSE: STC) Acquired by Fidelity National Financial, Inc. (NYSE: FNF)

Stock Price History

$27.00

$32.00

$37.00

$42.00

$47.00(Spin-off Completed)

$40.02

99Notes:Source: Company Website and filings, Capital IQ , Pitchbook and Press Releases.

− On March 13, 2018, Silver Lake and Battery Ventures reached a definitive agreement to acquire Environmental Data Resources from the Daily Mail and General Trust plc (LSE: DMGT) for $205MM

− Environmental Data Resources has been in the Daily Mail’s portfolio since 1999, when it was bought for $95MM

− The investment will enable Environmental Data Resources to accelerate growth, specifically through its Collateral360 SaaS platform, which ensures compliance with risk policies by consolidating disparate processes and constituencies into one collaborative workspace

Headquarters: Shelton, CT

Founded: 1990

Employees: ~240

Description: Develops a comprehensive database intended to maintainenvironmental records and land use information fromthousands of federal, state, tribal, local and privatesources. The Company's database is used for property due-diligence and risk management services, enabling clientsincluding environmental consultants and engineers,appraisers, and lenders to manage real estate duediligence process.

Risk Management - Accesses property-centric information to better manage collateral risk during origination and monitor over the life-of-loan. Provides an environmental pre-screen, risk rating, loan checks (with risk assessment) and environmental reports.

Workflow - Realizes operational efficiencies by connecting the core systems, processes, people and services associated with property due diligence such as appraisals, evaluations and property reports.

Smart Data - Expands business intelligence by unlocking the power of data to support sound lending and business decisions. Collateral360 connects people with information and leverages technology to allow data flow between parties.

Compliance - Simplifies compliance with regulators and bank policy through Collateral360’s Policy Infused Technology, which enables lenders to filter loans, grant exceptions and demonstrate compliance to auditors and regulators.

Acquired

From

Closed

Transaction Overview Overview

PlatformEnd-Market Solutions

Lenders – Helps due diligence processes through simplifying lending

operations, improving risk management and meeting regulatory

demands.

Insurance – Provides environmental records and historical-use

sources on properties for cost-effective, subscription-based

solutions for the environmental review process.

Corporate – Uncovers critical environmental information for

decision making about corporate real estate transactions such as

M&A and real estate assets managed.

Residential – Identifies environmental concerns such as leaking

underground tanks, landfills, hazardous waste sites and other

environmental hazards.

Appraisers – Allows for project management on a single dashboard

where documents can be easily uploaded and transmitted to

clients.

1

2

3

4

5

REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Silver Lake and Battery Ventures Acquire Environmental Data Resources

1010

(30%)

(10%)

10%

30%

50%

70%

90%

110%

Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18

45%

3%

11%

45%

70%

11%

29%

Traditional Brokerage

Traditional Mortgage / Title

Real Estate Media / PortalsMortgage / Data Technology Property Management SoftwareCredit / Mortgage Marketing Real Estate Sharing Economy / TravelTraditional Mortgage / Title Traditional Brokerage

LTM Share Price Performance

11% 45% 29% 11%45%3% 70%

Property Management

Software

QNST: 227%TREE: 162%MONY: (13.1%)

Notes:Source: Capital IQ.

Credit / Mortgage Marketing

Real Estate Sharing Economy

/ Travel

Real Estate Media / Portals

Mortgage / Data Technology


Public Real Estate Technology Ecosystem

LTM Share Price Performance

Public Company Valuation

1111

27.6x

22.9x

18.3x 17.7x14.6x

10.4x8.2x

0.0x

6.0x

12.0x

18.0x

24.0x

30.0x

1 1 1 1 1 1 1

7.7x

5.0x4.4x 3.9x 3.6x

2.2x 2.1x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

1 2 3 4 5 6 7

Notes:Multiples represent mean value of sector group.Source: Capital IQ.

NTM Revenue / NTM EBITDA Multiple


2.1x / 10.4x 5.0x / 27.6x

Property Management

Software

3.9x / 14.6x

Real Estate Sharing Economy

/ Travel

4.4x / 17.7x


7.7x / 22.9x


3.6x / 18.3x


2.2x / 8.2x


Services



Traditional Mortgage

/ Title Services

Traditional Mortgage

/ Title Services

Real Estate Sharing

Economy / Travel

Real Estate Sharing

Economy / Travel

Mortgage / Data

Technology

Mortgage / Data

Technology



Property Management

Software

Property Management

Software



REAL ESTATE TECHNOLOGY SECTOR SUMMARYPublic Company Valuation (cont’d)

Enterprise Value / 2018E Revenue Enterprise Value / 2018E EBITDA

Public Real Estate Technology Ecosystem

1212


($MM)

20

18

20

17

Selected M&A Activity

Notes:Source: Capital IQ, Pitchbook and Company filings.(1) Represents value of the 55% stake acquired.

(1)

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value LTM NTM LTM NTM Target Description

3/18/2018 $1,138 0.6x 0.6x 10.1x 7.8x Provides title insurance and real estate transaction services.

3/13/2018 205 2.8x NA NA NA Provides environmental risk information services and solutions.

3/8/2018 NA NA NA NA NA Provides housing software and services intended to help housing authorities effectively manage processes.

2/12/2018 3,587 2.2x 1.7x NM NMProvides servicing, origination, and transaction based services primarily to single-family residences in the

United States.

2/8/2018 NA NA NA NA NA Develops software for property management.

2/7/2018 395 NA NA NA NAProvides automotive finance and real-estate lending software solutions for banks, thrifts, credit unions,

mortgage companies, and captive finance companies in the United States.

2/2/2018 500 9.4x NA NA NAProvides cloud-based construction program management software to meet the needs of repeat builders in the

construction industry.

12/14/2017 NA NA NA NA NA Provides property management, accounting and facilities management software.

11/17/2017 NA NA NA NA NAProvides an online portal that provides information on real estate properties. Its portal provides ads and other

advertising materials for real estate.

11/16/2017 NA NA NA NA NADevelops an online rental platform designed to help people with disabilities find reasonable and accessible

accommodations when traveling.

10/23/2017 NA NA NA NA NA Developer of rental housing software designed to manage complex tenancy relationships.

10/17/2017 NA NA NA NA NAProvides a cloud-based software system for clients in the condominium development and sales sector with a

comprehensive web-based application.

10/16/2017 NA NA NA NA NADevelops cloud-based transaction management systems designed to create, store, sign and manage all listing,

sales and lease files online.

10/16/2017 NA NA NA NA NAProvides housing management software for public housing authorities and private affordable housing

developments.

10/4/2017 NA NA NA NA NADevelops and supplies real estate management software designed to provide full access to vital information in

real estate

10/2/2017 NA NA NA NA NADevelops a SaaS-based real estate transaction management software created to help real estate agents manage

their transactions online.

9/12/2017 385 3.9x NA 25.7x NAOperates an online rental search destination that connects apartment shoppers to rental properties throughout

the United States and Canada.

9/8/2017 NA NA NA NA NA Provider of real estate listing management technology to developers and builders.

8/31/2017 128 NA NA NA NAProvides cloud-based intelligent sales software that enables mortgage companies to close more loans by

helping loan officers respond quickly to prospective borrowers.

(Lending Solutions Business)

1313Notes:Source: Capital IQ and Pitchbook.(1) Represents a merger of equals between VTS and Hightower.

20

16

($MM)

20

17

(1)

REAL ESTATE TECHNOLOGY SECTOR SUMMARYSelected M&A Activity (cont’d)



8/2/2017 NA NA NA NA NAProvides an online real estate marketplace allows people to buy and sell commercial and residential real estate

properties online using desktop and mobile technology.

8/2/2017 $250 NA NA NA NAProvides a real estate leasing platform that facilitates communicaty marketing, renter qualification, lease

contract generation and document storage.

8/1/2017 NA NA NA NA NA Provides mortgage loan application software, loan origination software, and data security solutions.

7/25/2017 NA NA NA NA NA Develops customer relationship management software and a marketing platform for real estate professionals.

7/10/2017 NA NA NA NA NA Provides an online marketplace that connects borrowers and lenders.

7/3/2017 1,434 3.0x 2.8x 14.2x 11.1x Provider of financial publishing services in the United States.

6/19/2017 70 2.3x NA NA NA Provider of utility management and energy services.

6/13/2017 78 NA NA NA NAProvider of an online real estate agent platform, offering agents maximum property exposure and a host of

services.

6/6/2017 NA NA NA NA NAProvider of an appraisal management platform that uses desktop and cloud-based valuation supply chain

technology that connects all of the parties involved in the appraisal process.

6/1/2017 NA NA NA NA NA Developer of web-based CRM software intended for the real estate industry.

5/23/2017 NA NA NA NA NAProvider of a real estate software platform coupled with an open and connected ecosystem for real estate

businesses.

5/1/2017 588 1.9x 2.0x NM 20.3x Operator of a consumer review website intended to help consumers find service providers.

4/27/2017 NA NA NA NA NAProvider of a web-based land and rural property marketplace, facilitating buying, renting and selling of

properties.

3/13/2017 3,550 2.8x 2.8x 15.0x 10.0xDeveloper of lending and payments software products created to deliver financial technology to banks

worldwide.

2/27/2017 300 8.4x NA 30.0x NA Advanced forecasting mobile app and optimization software used to price real estate units in North America.

2/15/2017 300 NA NA NA NAOperator of an online rental marketplace intended to rent high-end properties. The company's rental platform

provides a marketplace for luxury and high-end villas to rent.

1/24/2017 75 NA NA NA NA Provider of data intelligence services designed to offer apartment market data.

11/29/2016 300 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

9/21/2016 NA NA NA NA NA RedVision Systems, Inc. provides title reporting and property research solutions.

7/26/2016 NA NA NA NA NADeveloper and provider of an an end-to-end software as a service customer relationship management, lead

generation and lead management software platform

1414Notes:Source: Capital IQ and Pitchbook.

REAL ESTATE TECHNOLOGY SECTOR SUMMARYSelected M&A Activity (cont’d)

20

15

($MM)

20

16



6/22/2016 $36 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

6/16/2016 NA NA NA NA NAProvides mortgage pricing and eligibility, mortgage sales, mortgage rate quoting and marketing automation

software for banks, mortgage lenders and loan officers.

6/7/2016 NA NA NA NA NA Provides cloud-based document and data management platforms.

6/3/2016 NA NA NA NA NAProvides SaaS based real estate investment management and reporting software and services for the

affordable housing, private equity, and government markets.

5/18/2016 NA NA NA NA NAProvides real estate and facilities management software solutions to Fortune 500 companies that automates

location lifecycle to improve the performance of locations.

5/16/2016 115 4.8x NA 23.0x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry.

2/25/2016 NA NA NA NA NAProvider of a search engine for rental properties. The company offers a map-based online platform with real-

time filtering that enables users to search for apartments to rent in a selected area.

2/23/2016 70 1.2x NA 11.7x NAProvides utility management, energy management, electronic payment, sub metering and back office

solutions.

2/2/2016 NA NA NA NA NA Provides commercial property management software for real estate companies in Germany.

1/28/2016 NA NA NA NA NA Provides Web-based property management solutions to support multiple properties, units, and users.

12/17/2015 475 NA NA NA 13.5x Provides property appraisal and real estate collateral management software.

11/4/2015 3,900 8.0x 7.2x 63.5x 28.4xProvider of an online vacation rental property marketplace that enables property owners / managers to market

properties for rental to travelers.

11/4/2015 18 NA NA NA NA Provider of hospitality management software systems for hotels, resorts, and spas worldwide.

10/14/2015 16 NA NA NA NAProvides a Web-based relationship management solution for mortgage professionals to improve customer

retention.

7/22/2015 108 NA NA NA NA Provider of an online collaborative transaction environment for the real estate industry.

6/3/2015 NA NA NA NA NAProvider of real estate enterprise software applications and hosted solutions for the property management

industry.

4/29/2015 170 2.2x NA 7.0x NA Provider of an online apartment listing service.

4/8/2015 NA NA NA NA NA Provider of an online apartment advertising service for property managers and owners.

6/2/2015 49 NA NA NA NA Provides a suite of cloud-based, smart answer automation and routing.

Mean 3.8x 1.9x 15.6x 11.7x

Median 2.3x 2.0x 12.7x 9.5x

1515Notes:Source: Capital IQ, Pitchbook and Company filings.(1) Fiscal year change announced 5/23/2017.

REAL ESTATE TECHNOLOGY SECTOR SUMMARYReal Estate Technology Ecosystem

($MM, except per share data)

Stock Trading Metrics Operating Metrics

Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin

Company 03/30/18 Value Debt Value CY17A CY18E CY17A CY18E CY17A CY18E 17A/16A 17A/18E CY17A CY18E


CoStar Group, Inc. $362.68 $13,091 ($1,211) $11,879 $965 $1,168 12.3x 10.2x NM 32.2x 15.2% 21.0% 25.9% 31.6%

Zillow Group, Inc. $54.00 10,297 (377) 9,920 1,077 1,309 9.2x 7.6x NM 32.0x 27.2% 21.6% 7.7% 23.7%

REA Group Limited $60.91 8,022 126 8,148 598 663 13.6x 12.3x 26.5x 21.2x 32.0% 10.7% 51.4% 58.0%

Rightmove plc $61.01 5,519 (34) 5,486 329 374 16.7x 14.7x 22.6x 19.3x 21.1% 13.6% 73.9% 76.0%

ZPG Plc $4.72 2,046 257 2,303 342 434 6.7x 5.3x 17.1x 13.5x 17.9% 27.0% 39.3% 39.4%

Redfin Corporation $22.83 1,867 (206) 1,661 370 470 4.5x 3.5x NM NM 38.5% 27.0% (2.4%) 1.3%

Purplebricks Group PLC $4.41 1,209 (86) 1,124 116 222 9.7x 5.1x NM NM 141.2% 90.6% (16.6%) 3.3%

Lifull Co., Ltd. $9.03 1,072 (40) 1,032 149 359 3.5x 2.9x NM 19.3x (38.0%) 141.4% 9.7% 14.9%


Mean 9.5x 7.7x 22.1x 22.9x 32% 44% 24% 31%

Median 9.4x 6.4x 22.6x 20.3x 24% 24% 18% 28%


Black Knight, Inc. $47.10 $7,068 $1,423 $8,491 $1,052 $1,118 8.1x 7.6x 22.6x 16.0x 2.5% 6.3% 35.7% 47.6%

CoreLogic, Inc. $45.23 3,688 1,635 5,323 1,851 1,848 2.9x 2.9x 13.8x 11.2x (5.2%) (0.2%) 20.8% 25.6%

Ellie Mae, Inc. $91.94 3,153 (241) 2,912 417 498 7.0x 5.8x NM 22.2x 15.8% 19.5% 16.9% 26.3%

Real Matters Inc. $5.65 499 (78) 421 303 358 1.4x 1.2x NM 24.7x 21.9% 18.2% 3.1% 4.7%

Reis, Inc. $21.45 248 (20) 228 48 52 4.7x 4.4x 27.7x 14.2x 1.4% 8.9% 17.1% 30.6%


Mean 4.8x 4.4x 21.4x 17.7x 7% 11% 19% 27%

Median 4.7x 4.4x 22.6x 16.0x 2% 9% 17% 26%

Property Management Software

RealPage, Inc. $51.50 $4,279 $579 $4,859 $671 $841 7.2x 5.8x NM 22.2x 18.1% 25.3% 14.1% 26.1%

AppFolio, Inc. $40.85 1,392 (46) 1,346 144 181 9.4x 7.4x NM 36.0x 36.2% 26.1% 9.1% 20.6%

Agilysys, Inc. $11.92 279 (37) 242 126 133 1.9x 1.8x NM 24.5x (2.4%) 5.4% (8.7%) 7.4%

Property Management Software

Mean 6.2x 5.0x NM 27.6x 17% 19% 5% 18%

Median 7.2x 5.8x NM 24.5x 18% 25% 9% 21%


Jones Lang LaSalle Incorporated $174.64 $7,930 $794 $8,724 $7,932 $8,418 1.1x 1.0x 11.2x 11.0x 16.6% 6.1% 9.8% 9.4%

Realogy Holdings Corp. $27.28 3,568 3,315 6,883 6,114 6,263 1.1x 1.1x 9.4x 9.6x 5.2% 2.4% 12.0% 11.4%

Colliers International Group Inc. $69.36 2,700 141 2,842 2,275 2,534 1.2x 1.1x 12.1x 10.4x 20.0% 11.4% 10.3% 10.8%

RE/MAX Holdings, Inc. $60.45 1,070 178 1,248 196 208 6.4x 6.0x 12.5x 11.6x 11.1% 6.1% 51.0% 51.8%

Marcus & Mill ichap, Inc. $36.06 1,391 (286) 1,105 720 749 1.5x 1.5x 10.9x 9.6x 0.3% 4.1% 14.1% 15.3%


Mean 2.3x 2.1x 11.2x 10.4x 11% 6% 19% 20%

Median 1.2x 1.1x 11.2x 10.4x 11% 6% 12% 11%

(1)

1616Notes:Source: Capital IQ.

REAL ESTATE TECHNOLOGY SECTOR SUMMARYReal Estate Technology Ecosystem (cont’d)

($MM, except per share data)

Stock Trading Metrics Operating Metrics

Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin

Company 03/30/18 Value Debt Value CY17A CY18E CY17A CY18E CY17A CY18E 17A/16A 17A/18E CY17A CY18E


Fidelity National Financial, Inc. $40.02 $10,985 ($168) $10,817 $7,668 $7,844 1.4x 1.4x 9.8x 9.6x 5.6% 2.3% 14.4% 14.3%

Ocwen Financial Corporation $4.12 549 6,822 7,372 1,195 1,009 6.2x 7.3x NM NM (13.9%) (15.5%) NA NA

First American Financial Corporation $58.68 6,511 (654) 5,857 5,772 5,918 1.0x 1.0x 9.5x 7.1x 3.5% 2.5% 10.7% 13.9%

Radian Group Inc. $19.04 4,113 (56) 4,057 1,222 1,310 3.3x 3.1x 5.5x NM (1.4%) 7.2% NA NA

Nationstar Mortgage Holdings Inc. $17.96 1,755 1,376 3,131 1,650 2,130 1.9x 1.5x NM NM 32.0% 29.1% NA NA

Stewart Information Services Corporation $43.94 1,043 (51) 992 1,957 2,019 0.5x 0.5x 8.8x 6.8x (2.8%) 3.2% 5.8% 7.2%

Altisource Portfolio Solutions S.A. $26.56 462 261 723 942 873 0.8x 0.8x 5.8x 9.1x (5.5%) (7.3%) 13.2% 9.1%


Mean 2.2x 2.2x 7.9x 8.2x 3% 3% 11% 11%

Median 1.4x 1.4x 8.8x 8.1x (1%) 3% 12% 11%


LendingTree, Inc. $328.15 $4,018 ($130) $3,887 $618 $785 6.3x 5.0x NM 26.0x 60.7% 27.1% 13.8% 19.0%

Moneysupermarket.com Group PLC $4.03 2,158 (47) 2,111 446 476 4.7x 4.4x 13.6x 11.9x 14.1% 6.9% 34.9% 37.1%

QuinStreet, Inc. $12.77 590 (42) 548 336 379 1.6x 1.4x NM 17.0x 12.1% 12.9% 3.4% 8.5%


Mean 4.2x 3.6x 13.6x 18.3x 29% 16% 17% 22%

Median 4.7x 4.4x 13.6x 17.0x 14% 13% 14% 19%

Real Estate Sharing Economy / Travel

Booking Holdings Inc. $2,080.39 $100,459 $2,124 $102,583 $12,681 $14,784 8.1x 6.9x 20.8x 18.2x 18.0% 16.6% 38.8% 38.1%

Expedia Group, Inc. $110.41 16,794 934 17,728 10,060 11,284 1.8x 1.6x 15.3x 9.6x 14.7% 12.2% 11.5% 16.4%

TripAdvisor, Inc. $40.89 5,683 (387) 5,296 1,556 1,605 3.4x 3.3x 30.6x 15.9x 5.1% 3.1% 11.1% 20.7%

Real Estate Sharing Economy / Travel

Mean 4.4x 3.9x 22.3x 14.6x 13% 11% 20% 25%

Median 3.4x 3.3x 20.8x 15.9x 15% 12% 12% 21%

Documents

Real Estate Technology Sector Summary Q1 2018 Review · −Real estate technology continues to be one of the most active categories in the market, with ~$1.7Bn in financing activity