Software Sector Summary Report · 2019-09-07 · 2 Q2 2019 Software EXECUTIVE SUMMARY Select Q2 Active Investors Select Q2 Active Strategic Buyers » The global software sector remains

SOFTWARESECTOR REPORT

Q2 2019

22

Q2 2019 Software

EXECUTIVE SUMMARY

Select Q2 Active Investors Select Q2 Active Strategic Buyers

» The global software sector remains one of the most active sectors, with ~$15Bn in financing volume and ~$39Bn in M&A volume during Q2 ’19

- 198 financings in Q2 ‘19 is 19% higher than the number of financings in the same period in ’18

- 359 M&A transactions in Q2 ‘19 is 5% higher than the 343 deals consummated during the same period in ’18

- Q2 ‘19 M&A volume was bolstered by Salesforce’s $15Bn acquisition of Tableau Software resulting in a 22% M&A volume growth over Q2 last year

» Business / Productivity Software had one of the highest financing volume and deal counts in Q2 ‘19 led by the $500MM financing of Kaseya and

$300MM financing of Carta; the Financial Software sector also saw a high volume of financings

» Financial Software companies trade at the highest average revenue multiple at 11.5x EV/ ’19E Revenue compared to other software; the

Technical Applications sector trades at the highest average EBITDA multiple at 31.7x EV/ ’19E EBITDA compared to other software

- Security software had the highest average 2019E/2018A revenue growth at 30% compared to other software

- Development and Operations Management software stock performance outperformed other software sectors with LTM growth over 33%

Notes:Source: Pitchbook, 451 Research, Capital IQ.

33

GCA OVERVIEWThe GCA Software Team

KEY GCA STATS

25Senior Bankers Covering

Software

60+Software Transactions in the Last Three Years

60Senior Bankers Covering Technology

21 Offices Globally

190+Technology-Related

Deals in the Last 3 Years

SECTOR COVERAGE

AI / Machine Learning

CRM

Enterprise Content Management

CyberSecurity

Enterprise Resource Planning

Infrastructure Management

SaaS / Cloud Enablement

BI / Analytics

Collaboration Software

Supply Chain Management

Vertically Focused Software

Marketing Technology

GCA US TEAM

GCA EXECUTIVE TEAM

Paul DiNardoManaging Director

[email protected]

Josh WepmanManaging Director

[email protected]

Rupert SadlerManaging [email protected]

Glen KrugerDirector

[email protected]

Kevin WalshManaging [email protected]

Chris GoughManaging [email protected]

Saif MalikDirector

[email protected]

Todd CarterCo-CEO

[email protected]

Geoff BaldwinCo-CEO

[email protected]

44

Deep Software Sector Expertise

GCA OVERVIEW

Notes:The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction.

55

DEAL DASHBOARD

Notes:Sources: Capital IQ, PitchBook, 451 Research and Dow Jones VentureSource. Market Data as of 6/30/2019.1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity.3) Software M&A transactions reflect select transactions in 2019 YTD. M&A metrics are based on closed and announced transactions.4) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 5) Criteria based on global public target software M&A deals.

Software

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count

$Bn $Bn

Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume Select M&A Transactions (3)

Company Amount ($MM) Acquirer Target EV ($MM)

$1,100 $15,080

$575 $5,744

$568 $4,400

$500 $2,600

$227 $1,116

$200 $1,000

$200 $425

$165 $350

Last 12 Months Software Price Performance vs. S&P 500 (4) M&A EV/ NTM Rev. Over Time (5)

` Financing Activity by Quarter

$69.3 Billion

2019 M&A Volume 2019 Financing Volume (1)(2)

$28.7 Billion

2019 M&A Transactions2019 Financing Transactions (1)(2)

399 720

160 159 161 155 167187

225 201 198

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

$12$11 $12

$15 $14 $17

$23

$14 $15

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

$12$20

$13 $19

$32

$57

$82

$30$39

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

287 291 268 298343

363 375 361 359

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

7.6%

19.0%

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

SPX IGV

4.0x

3.1x

4.2x 3.6x

3.9x

4.6x

3.3x

4.7x

7.1x

5.0x

3.9x

5.3x

4.3x 3.7x

4.9x

3.7x

5.4x

6.9x

2.7x 2.2x

2.9x 2.9x

4.1x 4.1x

2.8x

3.8x

7.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

2011 2012 2013 2014 2015 2016 2017 2018 2019

All Buyers Strategic Buyers PE Buyers

66

Sub Sector Top Players and Key Operating Stats

SOFTWARE PUBLIC COMPANY LANDSCAPE

Platform

Combined Market Cap: $1,862Bn19/18 Rev. Growth: 3.5% 19 EBITDA Margin: 30.8%

Infrastructure

Combined Market Cap: $108Bn19/18 Rev. Growth: 13.0%19 EBITDA Margin: 15.5%

Security


Content & Storage Management

Combined Market Cap: $236Bn19/18 Rev. Growth: 20.5% 19 EBITDA Margin: 13.1%

BI & Analytics


Financial Applications


Notes:Sources: Capital IQ. Market Data as of 7/24/19.Logos shown represent largest players in each sub sector by enterprise value. Operating stats for each sector represent full list of companies shown in public comparable tables.

77

Sub Sector Top Players and Key Operating Stats

SOFTWARE PUBLIC COMPANY LANDSCAPE

Technical Applications


Vertical


ERP & General Business


Development & Operations


Sales & Marketing


SaaS


Notes:Sources: Capital IQ. Market Data as of 7/24/19.Logos shown represent largest players in each sub sector by enterprise value. Operating stats for each sector represent full list of companies shown in public comparable tables.

88

Index Performance

RECENT STOCK PERFORMANCE

Last 12 Months

1) Development and Operations

Management

32.8%

2) Vertical

31.7%

3) ERP & General Business

31.3%

4) Business Intelligence & Analysis

31.1%

5) SaaS

30.8%

6) Platform

25.9%

8) Sales & Marketing

25.2%

10) Security

22.2%

11) Content & Storage

Management

4.5%

12) Infrastructure

1.9%

7) Financial Applications

25.5%

9) Technical Applications

23.1%

(25%)

(15%)

(5%)

5%

15%

25%

35%

Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

22.2%

1.9%

4.5%

23.1%

25.5%25.2%

25.9%

31.1%30.8%

31.3%31.7%32.8%

Notes:Sources: Capital IQ. Market Data as of 7/15/2019.List of companies in each sector can be found in the public comparable tables.

99

Valuation and Operational Metrics

TRADING COMPARABLES

EV / 2019E Revenue EV / 2019E EBITDA

2019E / 2018E Revenue Growth 2019E EBITDA Margin

Notes:Sources: Capital IQ. Market Data as of 7/24/19.Figures represent mean values of respective comp groups.List of companies in each sector can be found in the public comparable tables.

11.5x

9.9x9.4x 9.2x

8.4x 8.4x7.3x 7.3x

6.5x 6.4x5.1x

3.8x

Median: 7.9x31.7x

27.4x24.9x 24.6x

23.4x 23.0x20.9x 20.3x

15.0x12.1x 11.3x 11.1x

Median: 22.0x

29.7% 29.6%

22.3% 21.3% 20.5% 19.2%

17.6%

14.5% 13.6% 13.0% 11.3%

3.5%

Median: 18.4%32.8%

30.8%

22.4% 20.3%

15.5% 15.5% 14.3% 14.0% 14.0% 13.1% 12.3%

4.2%

Median: 14.9%

1010

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 7/24/19.Margins <(20%) considered NM. Multiples <0 or >50 considered NM.

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Trading Metrics Operating Metrics CIQ

Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin Revenue

Company 7/24/2019 Cap ST. Invest. Debt Value (EV) CY18A CY19E CY20E CY18A CY19E CY20E 18A/17A 19E/18A 20E/19E CY18A CY19E CY20E CY18A CY19E CY20E

Platform

Microsoft Corporation $140.72 $1,075,523 $133,819 $85,947 $1,027,651 8.7x 7.8x 7.0x 20.6x 17.8x 15.9x 16% 12% 11% 65% 65% 65% 42% 44% 44%

Cisco Systems $57.23 $244,986 $34,643 $23,709 $234,052 4.6x 4.4x 4.3x 12.9x 12.4x 11.9x 6% 4% 4% 62% 62% 62% 36% 36% 36%

Oracle Corporation $58.11 $193,844 $37,827 $56,397 $212,992 5.3x 5.3x 5.2x 11.5x 11.3x 10.9x 3% (0%) 3% 80% 80% 80% 47% 47% 48%

International Business Machines Corporation$150.03 $133,023 $46,273 $78,304 $165,185 2.1x 2.1x 2.1x 8.9x 9.0x 8.7x 1% (1%) 1% 47% 48% 48% 24% 24% 25%

SAP SE $127.26 $151,909 $6,338 $2,064 $147,704 5.2x 4.8x 4.5x 15.1x 13.3x 12.4x 0% 8% 8% 70% 72% 72% 35% 36% 36%

Dell Technologies Inc. $56.22 $43,335 $9,040 $55,078 $94,176 1.0x 1.0x 1.0x 9.1x 8.6x 7.4x 15% 4% 4% 28% 32% 32% 11% 12% 13%

Hewlett Packard Enterprise Company $14.74 $19,739 $3,585 $12,581 $28,778 1.0x 1.0x 1.0x 5.3x 5.6x 5.5x 4% (2%) 1% 31% 31% 31% 18% 17% 17%

Mean 4.0x 3.8x 3.6x 11.9x 11.1x 10.4x 6% 3% 4% 55% 56% 56% 30% 31% 31%

Median 4.6x 4.4x 4.3x 11.5x 11.3x 10.9x 4% 4% 4% 62% 62% 62% 35% 36% 36%

Infrastructure

Zoom Video Communications $95.94 $26,139 $737 $52 $25,454 NM 46.6x 33.5x NA NM NM 118% 65% 39% 82% 80% 80% 0% 7% 10%

Akamai Technologies $83.42 $13,689 $1,119 $1,279 $13,849 5.1x 4.9x 4.6x 12.7x 11.9x 10.8x 9% 5% 7% 65% 66% 66% 40% 41% 42%

Citrix Systems $100.72 $13,260 $563 $943 $13,639 4.6x 4.4x 4.2x 11.6x 12.3x 11.7x 5% 4% 5% 87% 87% 87% 40% 36% 36%

RingCentral $124.94 $10,237 $549 $407 $10,096 16.5x 11.7x 9.5x NM NM NM 32% 41% 23% 84% 77% 77% 13% 13% 13%

Juniper Networks $27.15 $9,348 $2,800 $1,958 $8,506 1.8x 1.9x 1.8x 8.1x 9.1x 8.4x (8%) (4%) 3% 59% 60% 61% 23% 21% 22%

Amdocs Limited $64.00 $8,776 $450 $0 $8,369 2.1x 2.0x 2.0x 10.5x 9.6x NA 3% 3% 3% 35% 35% 35% 20% 21% 0%

F5 Networks $148.67 $8,939 $986 $0 $7,953 3.6x 3.5x 3.4x 9.3x 9.6x 9.1x 4% 3% 4% 83% 83% 83% 39% 37% 37%

Verint Systems Inc. $57.64 $3,791 $453 $903 $4,255 3.5x 3.1x 2.8x 14.3x 12.7x 11.2x 8% 12% 9% 66% 68% 69% 24% 24% 25%

Everbridge $99.55 $3,278 $258 $112 $3,132 21.3x 15.9x 12.6x NM NM NM 41% 34% 26% 68% 71% 72% (2%) 2% 5%

Five9 $48.46 $2,892 $299 $217 $2,810 10.9x 9.2x 7.8x NM NM 42.5x 29% 19% 17% 60% 63% 64% 18% 16% 18%

Presidio $13.95 $1,154 $29 $940 $2,066 0.7x 0.7x 0.7x 9.1x 9.1x 8.1x 9% (0%) 4% 20% 21% 21% 8% 8% 8%

Fastly $22.00 $1,995 $67 $52 $1,980 13.7x 10.4x 8.0x NA NM NM 38% 32% 30% 55% 57% 60% 0% (13%) (10%)

Software Aktiengesellschaft $28.47 $2,106 $589 $425 $1,943 2.0x 2.0x 1.9x 6.2x 7.1x 7.1x (6%) (1%) 2% 78% 77% 78% 32% 28% 27%

Extreme Networks $7.25 $861 $157 $181 $885 0.9x 0.9x 0.9x 7.7x NA NA 34% (4%) 2% 56% 56% 56% 11% 0% 0%

Radware Ltd. $25.01 $1,174 $313 $21 $883 3.8x 3.5x 3.2x 29.0x 26.0x 18.4x 11% 8% 9% 82% 83% 83% 13% 13% 17%

A10 Networks $7.55 $571 $123 $6 $454 2.0x 1.9x 1.7x NM NA NA (1%) 3% 11% 78% 78% 79% 3% 0% 0%

Limelight Networks $2.34 $272 $29 $3 $246 1.3x 1.2x 1.1x 7.6x 13.7x 8.1x 6% 1% 12% 56% 50% 52% 17% 9% 14%

Mean 5.8x 7.3x 5.9x 11.5x 12.1x 13.5x 20% 13% 12% 65% 65% 66% 18% 15% 16%

Median 3.6x 3.5x 3.2x 9.3x 10.8x 10.0x 9% 4% 9% 66% 68% 69% 17% 13% 14%

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Security

VeriSign $216.84 $25,844 $1,225 $1,795 $26,414 21.7x 21.4x 20.5x 30.4x 29.7x 28.6x 4% 1% 5% 84% 85% 85% 71% 72% 72%

Palo Alto Networks $225.02 $21,596 $3,048 $1,573 $20,121 7.8x 6.4x 5.4x 28.5x 24.7x 19.6x 30% 22% 18% 72% 72% 72% 27% 26% 27%

CrowdStrike Holdings $87.46 $17,929 $175 $0 $17,754 NM 40.9x 28.8x NA NM NM 110% 74% 42% 65% 71% 69% 0% (20%) (8%)

Symantec Corporation $22.69 $14,027 $2,043 $4,452 $16,436 3.5x 3.4x 3.4x 7.5x 8.0x 7.4x 0% 1% 2% 78% 78% 78% 46% 43% 45%

Check Point Software Technologies Ltd.$113.25 $17,241 $1,615 $0 $15,626 8.2x 7.8x 7.6x 15.1x 15.5x 14.9x 3% 4% 3% 90% 90% 90% 54% 51% 51%

Okta $137.02 $15,639 $547 $435 $15,527 38.9x 28.3x 21.6x NM NM NM 56% 37% 31% 72% 76% 77% (9%) (9%) (2%)

Fortinet $86.58 $14,784 $1,802 $39 $13,022 7.2x 6.2x 5.5x 28.4x 24.0x 20.2x 20% 16% 13% 75% 76% 77% 25% 26% 27%

Zscaler $86.69 $10,894 $353 $0 $10,541 43.4x 30.5x 22.8x NM NM NM 57% 42% 34% 80% 80% 80% 6% 10% 12%

Proofpoint $127.19 $7,128 $183 $57 $7,002 9.8x 8.0x 6.6x NM NM 38.4x 38% 22% 21% 72% 78% 78% 16% 15% 17%

CyberArk Software Ltd. $144.86 $5,467 $466 $0 $5,001 14.6x 11.9x 10.0x 49.7x 44.3x 36.9x 31% 22% 19% 86% 88% 88% 29% 27% 27%

Trend Micro Incorporated $44.78 $6,217 $1,417 $0 $4,800 3.3x 3.1x 2.9x 10.2x 9.3x 8.8x 11% 7% 6% 80% 80% 80% 32% 33% 33%

FireEye $15.85 $3,331 $1,130 $1,064 $3,265 3.9x 3.6x 3.3x 29.6x 26.5x 20.7x 7% 8% 10% 67% 75% 75% 13% 14% 16%

Qualys $88.81 $3,478 $298 $42 $3,221 11.5x 10.0x 8.6x 28.7x 25.8x 22.0x 21% 16% 16% 76% 79% 79% 40% 39% 39%

Rapid7 $64.56 $3,112 $251 $199 $3,059 12.5x 9.7x 7.9x NM NM NM 21% 29% 23% 71% 75% 76% (6%) 4% 8%

Mimecast Limited $48.33 $2,985 $174 $138 $2,950 9.2x 7.4x 6.1x NM 45.6x 32.6x 33% 24% 21% 73% 73% 73% 14% 16% 19%

Sophos Group plc $5.46 $2,645 $172 $300 $2,772 4.0x 4.0x 3.4x 26.4x 23.3x 14.5x 16% (2%) 18% 79% 79% 79% 15% 17% 24%

Tenable Holdings $31.32 $3,022 $299 $11 $2,734 10.2x 7.9x 6.3x NM NM NM 42% 29% 25% 84% 83% 81% (16%) (14%) (8%)

Varonis Systems $70.51 $2,133 $164 $56 $2,026 7.5x 7.4x 6.8x NM NM NM 25% 1% 9% 90% 88% 89% 5% (3%) 2%

SailPoint Technologies Holdings $22.02 $1,953 $86 $43 $1,910 7.7x 6.8x 5.9x 48.4x NM NM 34% 12% 16% 78% 79% 80% 16% 8% 10%

Forescout Technologies $39.68 $1,795 $127 $42 $1,710 5.7x 4.6x 3.8x NM NM NM 33% 25% 21% 77% 79% 80% (3%) (2%) 4%

Carbon Black $18.69 $1,337 $153 $19 $1,202 5.7x 4.9x 4.2x NM NM NM 30% 16% 18% 78% 79% 78% NM (15%) (9%)

SecureWorks Corp. $12.51 $1,020 $111 $28 $937 1.8x 1.7x 1.6x NM NM NM 11% 4% 7% 53% 56% 56% 2% 0% 2%

Tufin Software Technologies Ltd. $22.76 $738 $26 $15 $727 8.6x 6.8x 5.5x NA NM NM 32% 26% 24% 84% 83% 83% 0% (11%) (6%)

Zix Corporation $8.97 $486 $17 $179 $648 9.2x 3.9x 3.2x 32.2x 18.5x 13.2x 7% 138% 21% 78% 62% 62% 29% 21% 24%

OneSpan Inc. $15.90 $638 $75 $7 $570 2.7x 2.5x 2.2x 26.4x 24.9x 15.4x 10% 9% 11% 69% 69% 71% 10% 10% 14%

F-Secure Oyj $3.04 $480 $29 $53 $504 2.3x 2.0x 1.9x 25.3x 20.8x 16.9x 7% 13% 6% 79% 76% 78% 9% 10% 11%

Absolute Software Corporation $5.85 $243 $35 $0 $208 2.2x 2.1x 1.9x 15.5x 10.5x 10.2x 4% 5% 8% 86% 86% 86% 14% 20% 19%

Mean 10.1x 9.4x 7.7x 26.8x 23.4x 20.0x 26% 22% 17% 77% 78% 78% 17% 14% 17%

Median 7.7x 6.8x 5.5x 28.4x 24.0x 18.3x 21% 16% 18% 78% 79% 78% 14% 14% 16%

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Content & Storage Management

Adobe Inc. $310.27 $150,617 $3,479 $4,137 $151,275 16.8x 13.5x 11.5x 38.1x 30.2x 24.8x 24% 24% 18% 87% 87% 88% 44% 45% 46%

Open Text Corporation $43.71 $11,755 $765 $2,616 $13,608 4.8x 4.6x 4.5x 12.8x 12.0x 11.2x 8% 4% 3% 74% 73% 73% 37% 38% 40%

NetApp $58.82 $14,118 $3,905 $1,793 $12,006 1.9x 2.0x 1.8x 7.7x 7.7x 6.6x 8% (1%) 7% 64% 63% 63% 25% 25% 28%

Dropbox $24.68 $10,148 $915 $693 $9,926 7.1x 6.0x 5.3x 29.5x 26.0x 21.4x 26% 18% 15% 72% 75% 76% 24% 23% 25%

DocuSign $54.35 $9,446 $752 $617 $9,311 13.3x 10.1x 8.1x NM NM NM 35% 31% 24% 73% 79% 80% 8% 9% 11%

Nutanix $24.55 $4,565 $941 $451 $4,076 3.3x 3.3x 2.6x NM NM NM 22% 0% 26% 74% 70% 70% (5%) NM (14%)

Pure Storage $15.96 $4,039 $1,166 $583 $3,456 2.5x 2.0x 1.6x 28.4x 23.6x 15.7x 33% 27% 23% 66% 67% 67% 9% 8% 10%

Qualys $88.81 $3,478 $298 $42 $3,221 11.5x 10.0x 8.6x 28.7x 25.8x 22.0x 21% 16% 16% 76% 79% 79% 40% 39% 39%

Rapid7 $64.56 $3,112 $251 $199 $3,059 12.5x 9.7x 7.9x NM NM NM 21% 29% 23% 71% 75% 76% (6%) 4% 8%


Tenable Holdings $31.32 $3,022 $299 $11 $2,734 10.2x 7.9x 6.3x NM NM NM 42% 29% 25% 84% 83% 81% (16%) (14%) (8%)

Box $16.79 $2,460 $231 $395 $2,623 4.3x 3.8x 3.4x NM 49.6x 30.9x 20% 13% 13% 71% 71% 72% 5% 8% 11%

Sophos Group plc $5.46 $2,645 $172 $300 $2,772 4.0x 4.0x 3.4x 26.4x 23.3x 14.5x 16% (2%) 18% 79% 79% 79% 15% 17% 24%


SailPoint Technologies Holdings $22.02 $1,953 $86 $43 $1,910 7.7x 6.8x 5.9x 48.4x NM NM 34% 12% 16% 78% 79% 80% 16% 8% 10%

Commvault Systems $50.77 $2,289 $458 $0 $1,830 2.6x 2.6x 2.4x 15.8x 16.7x 12.7x 5% (0%) 6% 84% 85% 85% 16% 15% 19%

Forescout Technologies $39.68 $1,795 $127 $42 $1,710 5.7x 4.6x 3.8x NM NM NM 33% 25% 21% 77% 79% 80% (3%) (2%) 4%

Carbonite $24.27 $836 $83 $645 $1,398 4.7x 2.9x 2.4x 13.3x 10.4x 8.6x 24% 63% 20% 76% 81% 81% 35% 28% 28%

Carbon Black $18.69 $1,337 $153 $19 $1,202 5.7x 4.9x 4.2x NM NM NM 30% 16% 18% 78% 79% 78% NM (15%) (9%)

SecureWorks Corp. $12.51 $1,020 $111 $28 $937 1.8x 1.7x 1.6x NM NM NM 11% 4% 7% 53% 56% 56% 2% 0% 2%


OneSpan Inc. $15.90 $638 $75 $7 $570 2.7x 2.5x 2.2x 26.4x 24.9x 15.4x 10% 9% 11% 69% 69% 71% 10% 10% 14%

F-Secure Oyj $3.04 $480 $29 $53 $504 2.3x 2.0x 1.9x 25.3x 20.8x 16.9x 7% 13% 6% 79% 76% 78% 9% 10% 11%

Brightcove Inc. $11.70 $448 $21 $18 $445 2.7x 2.4x 2.2x NM NM 32.7x 6% 12% 9% 60% 62% 62% 1% 4% 7%

Absolute Software Corporation $5.85 $243 $35 $0 $208 2.2x 2.1x 1.9x 15.5x 10.5x 10.2x 4% 5% 8% 86% 86% 86% 14% 20% 19%

Mean 6.2x 5.1x 4.4x 24.9x 23.0x 18.1x 20% 20% 15% 75% 75% 75% 14% 13% 15%

Median 4.8x 4.0x 3.4x 26.4x 23.3x 15.6x 21% 13% 16% 76% 76% 78% 12% 10% 11%

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Business Intelligence & Analytics

NICE Ltd. $149.39 $9,302 $571 $592 $9,323 6.5x 5.9x 5.5x 21.3x 19.3x 17.4x 8% 9% 8% 66% 69% 70% 30% 31% 31%

Alteryx $120.61 $7,543 $367 $203 $7,379 29.1x 20.5x 15.5x NM NM NM 93% 42% 32% 91% 91% 91% (0%) 11% 14%

Elastic N.V. $99.18 $7,474 $299 $0 $7,174 29.8x 19.8x 14.4x NM NM NM NA 51% 38% 72% 71% 71% (12%) NM (19%)

Medallia $40.54 $4,996 $133 $0 $4,863 15.5x 12.6x 10.4x NA NM NM 20% 23% 21% 63% 66% 67% 0% 3% 5%

Teradata Corporation $36.66 $4,275 $723 $633 $4,185 1.9x 2.1x 2.1x 12.3x 11.0x 9.3x 0% (8%) 2% 48% 54% 58% 16% 19% 22%

Inovalon Holdings $15.05 $2,306 $122 $1,023 $3,208 6.1x 5.0x 4.6x 21.1x 15.7x 14.1x 17% 21% 8% 73% 74% 75% 29% 32% 33%

Cloudera $5.88 $1,612 $445 $244 $1,411 2.9x 1.9x 1.7x NM 26.6x 12.1x 29% 57% 13% 72% 76% 77% (12%) 7% 14%

Talend S.A. $33.99 $1,032 $29 $32 $1,035 5.1x 4.2x 3.4x NM NM NM 38% 22% 21% 76% 77% 78% (7%) (9%) (3%)

MicroStrategy Incorporated $122.73 $1,257 $551 $116 $821 1.7x 1.7x 1.5x 36.8x 32.0x 13.9x (1%) (0%) 8% 80% 79% 80% 4% 5% 11%

Domo $29.21 $800 $154 $98 $744 5.2x 4.3x 3.5x NM NM NM 31% 22% 22% 65% 71% 73% NM NM NM

Veritone $7.65 $156 $51 $0 $105 3.9x 2.1x 1.6x NM NM NM 88% 88% 27% 76% 68% 69% NM NM NM

Mean 9.8x 7.3x 5.8x 22.9x 20.9x 13.4x 32% 30% 18% 71% 72% 73% 5% 12% 12%

Median 5.2x 4.3x 3.5x 21.2x 19.3x 13.9x 24% 22% 21% 72% 71% 73% 0% 9% 14%

Technical Applications

Autodesk $173.51 $38,106 $972 $2,288 $39,422 16.2x 12.0x 9.8x NM 45.1x 28.4x 29% 35% 22% 94% 91% 91% 15% 27% 35%

Dassault Systèmes SE $157.05 $40,839 $3,520 $1,138 $38,523 9.7x 8.7x 8.0x 28.8x 24.3x 22.9x 3% 11% 9% 85% 85% 86% 34% 36% 35%

Cadence Design Systems $75.79 $21,233 $633 $467 $21,066 9.9x 9.1x 8.5x 27.5x 25.2x 24.5x 10% 9% 7% 88% 90% 90% 36% 36% 35%

Synopsys $137.62 $20,629 $631 $292 $20,296 6.4x 6.0x 5.6x 25.8x 22.7x 19.8x 12% 6% 8% 79% 79% 79% 25% 27% 28%

ANSYS $214.95 $18,040 $608 $103 $17,535 13.6x 12.0x 10.9x 27.6x 26.5x 23.7x 18% 13% 10% 90% 90% 90% 49% 45% 46%

PTC Inc. $91.60 $10,538 $322 $699 $10,914 8.6x 8.2x 7.0x 30.3x 28.3x 20.5x 7% 4% 17% 75% 74% 74% 28% 29% 34%

Aspen Technology $136.71 $9,428 $66 $220 $9,582 18.4x 17.0x 16.1x 40.5x 34.1x 31.9x 10% 8% 6% 90% 90% 90% 45% 50% 51%

Altair Engineering Inc. $42.60 $3,034 $40 $47 $3,041 7.8x 6.4x 5.6x NM 47.5x 37.2x 19% 22% 14% 74% 73% 74% 13% 13% 15%

Mean 11.3x 9.9x 8.9x 30.1x 31.7x 26.1x 14% 14% 12% 84% 84% 84% 31% 33% 35%

Median 9.8x 8.9x 8.2x 28.2x 27.4x 24.1x 11% 10% 10% 87% 87% 88% 31% 32% 35%

1414




Fin

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Financial Applications

Intuit Inc. $281.36 $72,941 $3,346 $448 $70,043 11.2x 10.0x 9.1x 28.4x 27.9x 24.8x 11% 12% 10% 83% 84% 84% 40% 36% 37%

Fidelity National Information Services $130.12 $42,111 $576 $9,660 $51,202 6.1x 6.1x 5.8x 16.3x 15.5x 14.4x (3%) 0% 4% 34% 35% 36% 37% 39% 40%

Fiserv $94.17 $36,956 $8,441 $13,756 $42,271 7.3x 6.9x 6.5x 19.3x 18.0x 16.9x 2% 6% 5% 47% 47% 48% 38% 38% 38%

SimCorp A/S $94.17 $3,731 $79 $59 $3,711 8.5x 7.6x 7.0x 29.7x 25.9x 24.0x 6% 11% 8% 61% 61% 61% 29% 29% 29%

SS&C Technologies Holdings $59.07 $14,944 $155 $8,521 $23,311 6.8x 5.0x 4.7x 18.2x 12.3x 11.5x 104% 38% 4% 41% 53% 54% 37% 40% 41%

MSCI Inc. $232.25 $19,667 $643 $2,767 $21,791 15.2x 14.1x 12.9x 28.2x 26.0x 23.2x 13% 8% 9% 80% 80% 80% 54% 54% 56%

Temenos AG $175.07 $12,143 $87 $654 $12,710 15.1x 12.9x 11.5x 40.7x 34.0x 28.7x 14% 17% 12% 73% 81% 84% 37% 38% 40%

Fair Isaac Corporation $344.88 $9,998 $77 $822 $10,744 10.1x 9.3x 8.5x 40.1x 30.0x 26.1x 12% 9% 9% 71% 70% 70% 25% 31% 33%

Jack Henry & Associates $136.49 $10,538 $35 $35 $10,537 6.6x 6.6x 6.1x 19.0x 20.3x 18.9x 10% 0% 7% 43% 43% 43% 35% 32% 33%

Xero Limited $44.20 $6,223 $312 $300 $6,211 18.5x 13.6x 10.7x NM NM 47.3x 28% 36% 27% 85% 84% 84% 15% 19% 23%

Coupa Software Incorporated $141.58 $8,746 $346 $206 $8,605 33.1x 24.8x 19.5x NM NM NM 39% 33% 27% 68% 72% 74% 9% 6% 10%

Avalara $82.98 $6,103 $147 $0 $5,956 21.9x 17.0x 13.8x NM NM NM 28% 29% 23% 71% 72% 73% (14%) 0% 5%

Asseco Poland S.A. $15.12 $1,255 $492 $687 $1,993 0.8x 0.8x 0.7x 5.9x 5.0x 4.8x 11% 6% 6% 21% 22% 22% 13% 15% 15%

Envestnet $73.16 $3,795 $246 $551 $4,098 5.0x 4.5x 3.9x 26.0x 21.1x 17.0x 19% 12% 17% 29% 69% 70% 19% 21% 23%

Q2 Holdings $79.70 $3,723 $165 $220 $3,778 15.7x 12.2x 9.9x NM NM NM 24% 29% 22% 49% 52% 54% 8% 7% 11%

BlackLine $48.35 $2,662 $135 $17 $2,548 11.2x 9.2x 7.5x NM NM NM 30% 22% 22% 78% 81% 81% 6% 7% 9%

IRESS Limited $9.77 $1,686 $22 $144 $1,808 5.5x 5.0x 4.6x 21.8x 18.9x 16.7x (2%) 10% 10% 34% 34% 34% 25% 26% 27%

Ebix $43.88 $1,345 $96 $765 $2,078 4.2x 3.4x 2.8x 12.4x 9.7x 9.2x 37% 23% 21% 66% 68% 68% 34% 35% 30%

Bottomline Technologies (de) $43.50 $1,894 $88 $110 $1,916 4.7x 4.4x 4.0x 19.2x 19.1x 17.7x 13% 6% 10% 57% 56% 56% 24% 23% 23%

Zuora $15.39 $1,710 $179 $13 $1,544 6.6x 5.6x 4.7x NM NM NM 40% 17% 19% 50% 56% 60% (17%) (14%) (8%)

Model N $20.98 $681 $54 $49 $676 4.5x 4.8x 4.2x NM NM 46.9x 6% (6%) 13% 57% 56% 56% 8% 7% 9%

Basware Oyj $18.92 $272 $39 $79 $312 1.9x 1.9x 1.8x NM NM 16.6x (10%) 1% 7% 51% 52% 58% (3%) 1% 11%

Mean 10.0x 8.4x 7.3x 23.2x 20.3x 21.5x 20% 15% 13% 57% 60% 61% 21% 22% 24%

Median 7.0x 6.7x 6.3x 20.5x 19.7x 17.7x 13% 11% 10% 57% 59% 60% 25% 25% 25%

1515




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Vertical Applications

Danaher Corporation $142.69 $102,361 $5,434 $11,272 $108,212 5.4x 5.2x 4.5x 23.0x 21.9x 17.6x 9% 4% 17% 56% 56% 57% 24% 24% 25%

Roper Technologies $374.64 $38,903 $321 $4,721 $43,303 8.3x 8.0x 7.6x 24.0x 22.3x 20.7x 13% 5% 4% 63% 64% 64% 35% 36% 37%

Cerner Corporation $72.21 $23,499 $954 $1,039 $23,584 4.4x 4.1x 3.9x 15.0x 14.0x 12.3x 4% 7% 7% 83% 82% 82% 29% 29% 32%

Veeva Systems Inc. $166.06 $24,455 $1,330 $19 $23,145 26.8x 22.1x 18.6x NM NM 48.3x 25% 22% 19% 72% 75% 75% 37% 39% 39%

Tyler Technologies $223.72 $8,578 $76 $110 $8,611 9.2x 7.9x 7.2x 31.4x 28.1x 24.9x 11% 16% 11% 47% 52% 52% 29% 28% 29%

Guidewire Software $101.31 $8,289 $1,014 $314 $7,589 10.3x 10.2x 8.8x 41.6x 47.5x 36.2x 29% 1% 16% 56% 56% 56% 25% 21% 24%

RealPage $64.08 $5,913 $253 $716 $6,377 7.3x 6.4x 5.8x 27.6x 22.7x 19.4x 30% 14% 11% 62% 62% 62% 27% 28% 30%

CoreLogic $47.20 $3,782 $82 $1,854 $5,554 3.1x 3.3x 3.2x 11.3x 11.7x 11.0x (3%) (5%) 1% 48% 50% 52% 28% 28% 30%

Blackbaud $86.21 $4,131 $25 $704 $4,810 5.7x 5.4x 5.1x 23.7x 27.0x 24.8x 8% 5% 5% 55% 60% 60% 24% 20% 21%

AppFolio $105.14 $3,575 $34 $73 $3,613 19.0x 14.2x 11.3x NM NM NM 32% 34% 26% 62% 60% 61% 21% 16% 18%

Allscripts Healthcare Solutions $10.80 $1,798 $137 $906 $2,567 1.5x 1.4x 1.4x 6.4x 8.4x 7.6x 17% 2% 4% 47% 43% 44% 23% 17% 18%

2U $37.34 $2,355 $424 $62 $1,994 4.8x 3.7x 3.0x NM NM NM 44% 29% 26% 78% 78% 78% 4% 2% 3%

HealthStream $27.02 $875 $162 $32 $746 3.2x 2.9x 3.0x 17.9x 17.6x 19.2x 8% 10% (1%) 59% 58% 59% 18% 17% 15%

Castlight Health $2.87 $413 $66 $24 $371 2.4x 2.4x 2.1x NM 49.4x 21.6x 18% (1%) 12% 62% 67% 70% (4%) 5% 10%

Boxlight Corporation $2.83 $30 $3 $4 $31 0.8x 0.7x 0.5x NA NM NM 47% 24% 23% 23% 27% 28% 0% (6%) (1%)

Mean 7.5x 6.5x 5.7x 22.2x 24.6x 22.0x 19% 11% 12% 58% 59% 60% 21% 20% 22%

Median 5.4x 5.2x 4.5x 23.3x 22.3x 20.1x 17% 7% 11% 59% 60% 60% 24% 21% 24%

1616




ERP

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ERP & General Business

salesforce.com $159.75 $124,053 $6,379 $6,768 $124,442 9.4x 7.7x 6.4x 38.6x 29.5x 23.8x 26% 22% 20% 74% 77% 77% 24% 26% 27%

Workday $214.59 $48,582 $1,892 $1,529 $48,219 17.1x 13.5x 11.0x NM NM NM 32% 26% 23% 70% 76% 76% 17% 20% 21%

Shopify Inc. $329.57 $37,088 $1,997 $104 $35,195 32.8x 23.2x 17.4x NM NM NM 59% 41% 33% 56% 56% 56% 4% 4% 6%

Constellation Software Inc. $976.01 $20,683 $717 $544 $20,510 6.7x 5.8x 5.0x 26.2x 22.1x 18.6x 23% 15% 16% 37% 66% 66% 26% 26% 27%

Slack Technologies $34.10 $17,204 $793 $0 $16,423 41.0x 27.4x 19.8x NA NM NM 82% 49% 39% 87% 86% 86% 0% NM (15%)

Paycom Software $235.13 $13,522 $91 $59 $13,490 23.8x 18.7x 15.2x NM 45.4x 36.3x 31% 27% 23% 87% 84% 85% 43% 41% 42%

Zendesk $93.47 $10,241 $444 $579 $10,375 17.3x 12.8x 9.8x NM NM NM 39% 35% 30% 70% 74% 75% 7% 7% 9%

The Sage Group plc $10.20 $11,086 $457 $1,007 $11,635 4.9x 4.8x 4.5x NA 18.2x 17.0x 1% 2% 6% 93% 93% 93% 0% 26% 26%

Ceridian HCM Holding Inc. $51.42 $7,242 $206 $716 $7,751 10.4x 9.5x 8.5x 49.3x 42.0x 34.8x 11% 9% 13% 48% 49% 51% 21% 23% 24%

Anaplan $58.49 $7,555 $333 $54 $7,276 30.2x 22.1x 17.0x NM NM NM 43% 37% 29% 72% 75% 77% NM (17%) (9%)

Smartsheet Inc. $53.10 $6,176 $209 $59 $6,026 33.9x 22.8x 16.7x NM NM NM 60% 49% 37% 81% 81% 80% (18%) (15%) (10%)

Medidata Solutions $91.00 $5,483 $206 $193 $5,470 8.6x 7.4x 6.4x 36.8x 30.6x 25.5x 17% 16% 15% 75% 74% 75% 23% 24% 25%

Paylocity Holding Corporation $105.48 $5,588 $139 $0 $5,449 13.5x 10.7x 8.9x NM 37.2x 30.1x 23% 26% 20% 66% 64% 64% 25% 29% 30%

Manhattan Associates $85.75 $5,516 $119 $36 $5,432 9.7x 9.0x 8.6x 33.5x 40.4x 37.1x (6%) 7% 5% 57% 54% 55% 29% 22% 23%

j2 Global $91.03 $4,455 $227 $1,090 $5,318 4.4x 4.0x 3.7x 10.9x 9.7x 8.9x 8% 11% 8% 83% 83% 83% 41% 41% 41%

The Descartes Systems Group Inc $37.58 $3,162 $30 $253 $3,386 12.3x 10.4x 9.4x 36.1x 28.4x 25.1x 16% 18% 11% 73% 74% 75% 34% 37% 37%

Cornerstone OnDemand $61.47 $3,667 $392 $378 $3,653 6.8x 6.4x 5.6x 37.0x 30.0x 22.7x 12% 6% 14% 73% 77% 76% 18% 21% 25%

Pluralsight $30.35 $2,892 $737 $501 $2,742 11.8x 8.7x 6.4x NM NM NM 39% 36% 35% 73% 76% 78% (20%) (14%) (1%)

Workiva Inc. $59.21 $2,674 $114 $42 $2,601 10.6x 9.1x 7.8x NM NM NM 18% 17% 16% 73% 74% 75% (4%) (4%) (2%)

PROS Holdings $67.85 $2,570 $330 $244 $2,484 12.6x 10.3x 8.7x NM NM NM 17% 23% 18% 61% 65% 65% (10%) (4%) (0%)

Technology One Limited $5.55 $1,763 $48 $0 $1,715 8.1x 8.4x 7.3x NA 30.7x 25.0x (2%) (4%) 16% 41% 41% 41% 0% 27% 29%

Enghouse Systems Limited $26.93 $1,472 $153 $1 $1,320 5.0x 4.3x 3.8x 16.2x 15.1x 12.9x (3%) 18% 14% 70% 70% 70% 31% 28% 29%

SPS Commerce $103.36 $1,852 $199 $20 $1,673 6.7x 6.1x 5.6x 32.6x 25.3x 21.9x 13% 11% 9% 67% 68% 69% 21% 24% 25%

Instructure $41.77 $1,528 $91 $49 $1,486 7.1x 5.7x 4.8x NM NM NM 30% 23% 21% 70% 72% 73% (6%) (5%) (1%)

Upland Software $45.93 $1,161 $14 $284 $1,431 9.5x 6.8x 6.3x 26.9x 18.4x 16.7x 53% 41% 8% 68% 70% 70% 35% 37% 38%

Opera Limited $11.05 $1,219 $177 $18 $1,060 6.2x 4.4x 3.5x 16.1x 31.2x 14.1x 34% 39% 26% 68% 77% 78% 38% 14% 25%

Benefitfocus $27.15 $883 $144 $275 $1,014 3.9x 3.3x 2.9x NM NM 30.8x 9% 17% 17% 50% 53% 55% 4% 6% 9%

QAD Inc. $43.65 $857 $152 $29 $734 2.2x 2.2x 2.1x 28.6x 46.0x 29.3x 9% (1%) 7% 53% 53% 54% 8% 5% 7%

Synchronoss Technologies $7.86 $318 $108 $171 $393 1.2x 1.1x 1.1x 28.0x 11.8x 9.4x (19%) 6% 6% 51% 56% 57% 4% 10% 12%

American Software $13.38 $420 $86 $0 $334 3.0x 3.0x 2.9x 21.1x 23.2x 19.7x 2% (1%) 5% 53% 53% 53% 14% 13% 15%

ServiceSource International $0.91 $85 $25 $42 $102 0.4x 0.4x 0.4x 7.2x NM 20.3x (0%) (5%) 2% 31% 29% 29% 6% 0% 2%

Park City Group $5.11 $102 $18 $5 $88 3.8x 4.1x 3.3x 14.7x 13.8x 9.6x 13% (6%) 23% 71% 72% 72% 26% 29% 34%

Mean 11.7x 9.2x 7.5x 27.0x 27.4x 22.3x 22% 19% 18% 66% 68% 68% 14% 16% 17%

Median 9.0x 7.5x 6.4x 28.0x 29.0x 22.3x 17% 18% 16% 70% 72% 72% 17% 21% 24%

1717




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($MM)




Development & Operations Management

VMware $180.57 $73,891 $3,311 $4,853 $75,433 8.4x 7.5x 6.8x 20.5x 19.2x 17.6x 14% 12% 10% 86% 88% 88% 41% 39% 39%

ServiceNow $297.21 $55,137 $1,653 $1,107 $54,591 20.9x 15.8x 12.3x NM NM 43.1x 36% 32% 28% 76% 81% 82% 26% 28% 29%

Atlassian Corporation Plc $135.35 $32,628 $1,713 $854 $31,768 33.2x 23.2x 18.3x NM NM NM 38% 43% 26% 88% 85% 85% 31% 24% 27%

Splunk Inc. $139.96 $21,018 $2,675 $1,872 $20,214 11.2x 8.9x 7.3x NM NM 38.5x 38% 26% 22% 81% 84% 84% 16% 17% 19%

Twilio Inc. $147.61 $19,641 $919 $625 $19,348 29.8x 17.4x 13.1x NM NM NM 63% 71% 33% 54% 57% 57% 5% 7% 8%

MongoDB $156.02 $8,632 $476 $298 $8,454 31.7x 22.1x 17.0x NM NM NM 61% 43% 31% 72% 70% 71% (18%) (14%) (7%)

Micro Focus International plc $21.24 $7,282 $2,666 $4,674 $9,290 3.0x 2.7x 2.8x 6.5x 6.4x 6.3x 21% 11% (4%) 75% 77% 77% 46% 42% 45%

SolarWinds Corporation $18.01 $5,518 $434 $1,921 $7,005 8.4x 7.4x 6.6x 17.2x 15.6x 13.7x 14% 13% 12% 92% 92% 92% 49% 48% 49%

New Relic $92.44 $5,398 $745 $406 $5,062 11.4x 8.8x 7.1x NM NM 41.7x 35% 29% 25% 84% 83% 83% 17% 14% 17%

LogMeIn $73.50 $3,662 $112 $312 $3,862 3.2x 3.1x 2.9x 8.7x 9.4x 9.7x 22% 4% 5% 77% 82% 82% 37% 33% 30%

PagerDuty $44.94 $3,419 $338 $0 $3,081 26.2x 19.0x 14.7x NA NM NM 48% 38% 29% 85% 85% 85% 0% (15%) (7%)

Appian Corporation $39.89 $2,581 $75 $0 $2,506 11.1x 9.8x 8.4x NM NM NM 28% 13% 17% 63% 65% 68% (13%) (10%) (5%)

Progress Software Corporation $42.61 $1,906 $129 $298 $2,075 5.2x 4.9x 4.8x 10.6x 10.1x 8.9x (0%) 7% 2% 89% 87% 87% 50% 48% 54%

NetScout Systems $26.32 $1,998 $486 $550 $2,062 2.3x 2.3x 2.2x NA NA NA (15%) (1%) 3% 71% 72% 72% 0% 0% 0%

Pivotal Software $9.88 $2,687 $854 $146 $1,979 3.0x 2.6x 2.2x NM NM 38.9x 29% 16% 17% 63% 70% 73% (8%) (3%) 6%

Bandwidth Inc. $79.18 $1,821 $198 $0 $1,623 9.9x 6.9x 5.8x NM NM NM 25% 43% 19% 58% 47% 48% 10% (3%) (1%)

Comarch S.A. $46.74 $380 $87 $72 $370 1.0x 0.9x 0.9x 7.8x 6.7x 6.3x 13% 11% 6% 26% 28% 27% 13% 14% 14%

MobileIron $6.88 $748 $107 $18 $659 3.4x 3.1x 2.8x NM NM NM 7% 9% 11% 82% 82% 82% (0%) 2% 5%

Magic Software Enterprises Ltd. $9.12 $446 $107 $40 $411 1.4x 1.3x 1.3x NA NA NA 10% 9% 6% 31% 31% 31% 0% 0% 0%

Axway Software SA $14.60 $309 $37 $83 $355 1.1x 1.1x 1.1x 8.5x 11.8x 8.5x (10%) (3%) 1% 18% 71% 72% 13% 10% 13%

Mean 11.3x 8.4x 6.9x 11.4x 11.3x 21.2x 24% 21% 15% 69% 72% 72% 16% 14% 17%

Median 8.4x 7.2x 6.2x 8.7x 10.1x 13.7x 23% 13% 14% 76% 79% 79% 13% 12% 13%

Sales & Marketing Applications

HubSpot $183.70 $7,734 $969 $511 $7,277 14.2x 11.1x 8.9x NM NM NM 37% 28% 24% 80% 82% 83% 11% 12% 14%

Pegasystems Inc. $77.64 $6,126 $202 $58 $5,982 6.7x 6.5x 5.8x NM NM NM 0% 4% 12% 66% 69% 69% 8% 5% 7%

SurveyMonkey $17.68 $2,300 $166 $306 $2,440 9.6x 8.1x 6.8x 42.0x NM 45.9x 16% 19% 19% 69% 76% 78% 23% 13% 15%

Yext $20.98 $2,331 $284 $37 $2,084 9.1x 7.0x 5.3x NM NM NM 34% 31% 30% 75% 76% 76% (11%) (12%) (7%)

LivePerson $32.75 $2,004 $238 $190 $1,956 7.8x 6.8x 5.7x NM NM NM 14% 16% 19% 75% 74% 75% 8% 4% 7%

Cardlytics $29.76 $672 $36 $47 $682 4.5x 3.6x 2.6x NM NM NM 16% 25% 38% 36% 42% 43% (4%) (4%) 5%

ChannelAdvisor Corporation $9.48 $264 $48 $20 $236 1.8x 1.8x 1.7x 24.1x 15.0x 12.4x 7% 1% 6% 78% 78% 79% 7% 12% 14%

Mean 7.7x 6.4x 5.3x 33.1x 15.0x 29.2x 18% 18% 21% 69% 71% 72% 6% 4% 8%

Median 7.8x 6.8x 5.7x 33.1x 15.0x 29.2x 16% 19% 19% 75% 76% 76% 8% 5% 7%

1818




SaaS

($MM)




SaaS

Adobe Inc. $310.27 $150,617 $3,479 $4,137 $151,275 16.8x 13.5x 11.5x 38.1x 30.2x 24.8x 24% 24% 18% 87% 87% 88% 44% 45% 46%

salesforce.com $159.75 $124,053 $6,379 $6,768 $124,442 9.4x 7.7x 6.4x 38.6x 29.5x 23.8x 26% 22% 20% 74% 77% 77% 24% 26% 27%

ServiceNow $297.21 $55,137 $1,653 $1,107 $54,591 20.9x 15.8x 12.3x NM NM 43.1x 36% 32% 28% 76% 81% 82% 26% 28% 29%

Workday $214.59 $48,582 $1,892 $1,529 $48,219 17.1x 13.5x 11.0x NM NM NM 32% 26% 23% 70% 76% 76% 17% 20% 21%

Shopify Inc. $329.57 $37,088 $1,997 $104 $35,195 32.8x 23.2x 17.4x NM NM NM 59% 41% 33% 56% 56% 56% 4% 4% 6%

Atlassian Corporation Plc $135.35 $32,628 $1,713 $854 $31,768 33.2x 23.2x 18.3x NM NM NM 38% 43% 26% 88% 85% 85% 31% 24% 27%

Zoom Video Communications $95.94 $26,139 $737 $52 $25,454 NM 46.6x 33.5x NA NM NM 118% 65% 39% 82% 80% 80% 0% 7% 10%

Veeva Systems Inc. $166.06 $24,455 $1,330 $19 $23,145 26.8x 22.1x 18.6x NM NM 48.3x 25% 22% 19% 72% 75% 75% 37% 39% 39%

Splunk Inc. $139.96 $21,018 $2,675 $1,872 $20,214 11.2x 8.9x 7.3x NM NM 38.5x 38% 26% 22% 81% 84% 84% 16% 17% 19%

Twilio Inc. $147.61 $19,641 $919 $625 $19,348 29.8x 17.4x 13.1x NM NM NM 63% 71% 33% 54% 57% 57% 5% 7% 8%

Slack Technologies $34.10 $17,204 $793 $0 $16,423 41.0x 27.4x 19.8x NA NM NM 82% 49% 39% 87% 86% 86% 0% NM (15%)

Okta $137.02 $15,639 $547 $435 $15,527 38.9x 28.3x 21.6x NM NM NM 56% 37% 31% 72% 76% 77% (9%) (9%) (2%)

Paycom Software $235.13 $13,522 $91 $59 $13,490 23.8x 18.7x 15.2x NM 45.4x 36.3x 31% 27% 23% 87% 84% 85% 43% 41% 42%

NetApp $58.82 $14,118 $3,905 $1,793 $12,006 1.9x 2.0x 1.8x 7.7x 7.7x 6.6x 8% (1%) 7% 64% 63% 63% 25% 25% 28%

Zscaler $86.69 $10,894 $353 $0 $10,541 43.4x 30.5x 22.8x NM NM NM 57% 42% 34% 80% 80% 80% 6% 10% 12%

Zendesk $93.47 $10,241 $444 $579 $10,375 17.3x 12.8x 9.8x NM NM NM 39% 35% 30% 70% 74% 75% 7% 7% 9%

RingCentral $124.94 $10,237 $549 $407 $10,096 16.5x 11.7x 9.5x NM NM NM 32% 41% 23% 84% 77% 77% 13% 13% 13%

Dropbox $24.68 $10,148 $915 $693 $9,926 7.1x 6.0x 5.3x 29.5x 26.0x 21.4x 26% 18% 15% 72% 75% 76% 24% 23% 25%

DocuSign $54.35 $9,446 $752 $617 $9,311 13.3x 10.1x 8.1x NM NM NM 35% 31% 24% 73% 79% 80% 8% 9% 11%

Coupa Software Incorporated $141.58 $8,746 $346 $206 $8,605 33.1x 24.8x 19.5x NM NM NM 39% 33% 27% 68% 72% 74% 9% 6% 10%

HubSpot $183.70 $7,734 $969 $511 $7,277 14.2x 11.1x 8.9x NM NM NM 37% 28% 24% 80% 82% 83% 11% 12% 14%

Proofpoint $127.19 $7,128 $183 $57 $7,002 9.8x 8.0x 6.6x NM NM 38.4x 38% 22% 21% 72% 78% 78% 16% 15% 17%

RealPage $64.08 $5,913 $253 $716 $6,377 7.3x 6.4x 5.8x 27.6x 22.7x 19.4x 30% 14% 11% 62% 62% 62% 27% 28% 30%

Smartsheet Inc. $53.10 $6,176 $209 $59 $6,026 33.9x 22.8x 16.7x NM NM NM 60% 49% 37% 81% 81% 80% (18%) (15%) (10%)

Paylocity Holding Corporation $105.48 $5,588 $139 $0 $5,449 13.5x 10.7x 8.9x NM 37.2x 30.1x 23% 26% 20% 66% 64% 64% 25% 29% 30%

j2 Global $91.03 $4,455 $227 $1,090 $5,318 4.4x 4.0x 3.7x 10.9x 9.7x 8.9x 8% 11% 8% 83% 83% 83% 41% 41% 41%

New Relic $92.44 $5,398 $745 $406 $5,062 11.4x 8.8x 7.1x NM NM 41.7x 35% 29% 25% 84% 83% 83% 17% 14% 17%

Medallia $40.54 $4,996 $133 $0 $4,863 15.5x 12.6x 10.4x NA NM NM 20% 23% 21% 63% 66% 67% 0% 3% 5%

Envestnet $73.16 $3,795 $246 $551 $4,098 5.0x 4.5x 3.9x 26.0x 21.1x 17.0x 19% 12% 17% 29% 69% 70% 19% 21% 23%

LogMeIn $73.50 $3,662 $112 $312 $3,862 3.2x 3.1x 2.9x 8.7x 9.4x 9.7x 22% 4% 5% 77% 82% 82% 37% 33% 30%

Q2 Holdings $79.70 $3,723 $165 $220 $3,778 15.7x 12.2x 9.9x NM NM NM 24% 29% 22% 49% 52% 54% 8% 7% 11%

Cornerstone OnDemand $61.47 $3,667 $392 $378 $3,653 6.8x 6.4x 5.6x 37.0x 30.0x 22.7x 12% 6% 14% 73% 77% 76% 18% 21% 25%

AppFolio $105.14 $3,575 $34 $73 $3,613 19.0x 14.2x 11.3x NM NM NM 32% 34% 26% 62% 60% 61% 21% 16% 18%

Pure Storage $15.96 $4,039 $1,166 $583 $3,456 2.5x 2.0x 1.6x 28.4x 23.6x 15.7x 33% 27% 23% 66% 67% 67% 9% 8% 10%

Qualys $88.81 $3,478 $298 $42 $3,221 11.5x 10.0x 8.6x 28.7x 25.8x 22.0x 21% 16% 16% 76% 79% 79% 40% 39% 39%

Everbridge $99.55 $3,278 $258 $112 $3,132 21.3x 15.9x 12.6x NM NM NM 41% 34% 26% 68% 71% 72% (2%) 2% 5%

PagerDuty $44.94 $3,419 $338 $0 $3,081 26.2x 19.0x 14.7x NA NM NM 48% 38% 29% 85% 85% 85% 0% (15%) (7%)


1919




SaaS

(C

on

t.)

($MM)




SaaS (Cont.)

Five9 $48.46 $2,892 $299 $217 $2,810 10.9x 9.2x 7.8x NM NM 42.5x 29% 19% 17% 60% 63% 64% 18% 16% 18%

Box $16.79 $2,460 $231 $395 $2,623 4.3x 3.8x 3.4x NM 49.6x 30.9x 20% 13% 13% 71% 71% 72% 5% 8% 11%

Workiva Inc. $59.21 $2,674 $114 $42 $2,601 10.6x 9.1x 7.8x NM NM NM 18% 17% 16% 73% 74% 75% (4%) (4%) (2%)

BlackLine $48.35 $2,662 $135 $17 $2,548 11.2x 9.2x 7.5x NM NM NM 30% 22% 22% 78% 81% 81% 6% 7% 9%


LivePerson $32.75 $2,004 $238 $190 $1,956 7.8x 6.8x 5.7x NM NM NM 14% 16% 19% 75% 74% 75% 8% 4% 7%

SPS Commerce $103.36 $1,852 $199 $20 $1,673 6.7x 6.1x 5.6x 32.6x 25.3x 21.9x 13% 11% 9% 67% 68% 69% 21% 24% 25%

Zuora $15.39 $1,710 $179 $13 $1,544 6.6x 5.6x 4.7x NM NM NM 40% 17% 19% 50% 56% 60% (17%) (14%) (8%)

Instructure $41.77 $1,528 $91 $49 $1,486 7.1x 5.7x 4.8x NM NM NM 30% 23% 21% 70% 72% 73% (6%) (5%) (1%)

Cloudera $5.88 $1,612 $445 $244 $1,411 2.9x 1.9x 1.7x NM 26.6x 12.1x 29% 57% 13% 72% 76% 77% (12%) 7% 14%

Carbonite $24.27 $836 $83 $645 $1,398 4.7x 2.9x 2.4x 13.3x 10.4x 8.6x 24% 63% 20% 76% 81% 81% 35% 28% 28%

Talend S.A. $33.99 $1,032 $29 $32 $1,035 5.1x 4.2x 3.4x NM NM NM 38% 22% 21% 76% 77% 78% (7%) (9%) (3%)

Benefitfocus $27.15 $883 $144 $275 $1,014 3.9x 3.3x 2.9x NM NM 30.8x 9% 17% 17% 50% 53% 55% 4% 6% 9%


ChannelAdvisor Corporation $9.48 $264 $48 $20 $236 1.8x 1.8x 1.7x 24.1x 15.0x 12.4x 7% 1% 6% 78% 78% 79% 7% 12% 14%

Veritone $7.65 $156 $51 $0 $105 3.9x 2.1x 1.6x NM NM NM 88% 88% 27% 76% 68% 69% NM NM NM

Park City Group $5.11 $102 $18 $5 $88 3.8x 4.1x 3.3x 14.7x 13.8x 9.6x 13% (6%) 23% 71% 72% 72% 26% 29% 34%

Mean 14.3x 11.5x 9.1x 24.9x 24.9x 24.4x 33% 30% 21% 72% 74% 74% 14% 14% 16%

Median 11.0x 9.1x 7.5x 28.0x 25.3x 22.4x 30% 26% 21% 73% 76% 76% 12% 13% 14%

2020

CY 2019E Revenue Growth % + CY 2019E FCF Margin %

Valuation Correlation to Growth & Free Cash FlowValuation Correlation to Growth

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Notes:Source: Capital IQ as of 7/24/2019. Consensus Estimates used for CY2019E figures.

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2121

Select Software M&A Transactions

RECENT ACQUISITIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 6/30/19, where Enterprise Value is >$50MM.Transactions highlighted in yellow denote private equity transactions. Multiples <0 and >50 considered NM.

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description

6/24/19 $150 NA NA NA NAProvides television and video advertising analytics software that enables brands, agencies, cable operators, streaming TV services and

networks to measure advertising effectiveness.

6/19/19 $101 7.9x NA NA NAProvides AI-based virtual workforce automation SaaS for businesses globally. Software enables users to replicate human work, processes

and decisions in existing applications and systems.

6/18/19 $330 6.3x NA 17.3x NA Provides investment and fund management SaaS for financial markets in the US, Europe and Asia.

6/12/19 $5,744 8.7x NA NM NAProvides clinical development and data management SaaS for the pharmaceutical and life sciences industry. Software enables clinicians

to capture and analyze data and design clinical trials.

6/11/19 $405 NA 9.5x NA NA Provides financial management, accounting, payroll, invoice management and transaction processing SaaS for small businesses globally.

6/11/19 $165 NA NA NA NAProvides payment processing software, SaaS and services for businesses and consumers in Turkey. Also provides related mobile payment

applications.

6/10/19 $15,080 12.7x 10.8x NM NA

Provides business intelligence (BI) analytics and data visualization software for businesses, government agencies and educational

institutions globally. Also provides visual analytics SaaS that enables businesses to create, publish and share interactive dashboards and

data stories on the Web. Tableau Software went public in May 2013 on the NYSE under the ticker symbol DATA.

6/6/19 $2,600 NA 17.3x NA NA Provides big data business intelligence (BI) analytics and visualization, data modeling and discovery SaaS for businesses.

6/6/19 $570 NA NA NA NAProvides environmental, health, safety and quality management (EHSQ) SaaS that enables regulatory compliance and incidence reporting

for businesses.

6/6/19 $68 3.8x NA NA NAProvides financial data management software, SaaS and services for the capital markets industry globally. Software enables users to

aggregate, manage and process market and reference data, corporate actions, portfolio pricing, and legal entity data.

6/5/19 $234 NA NA NA NA

Provides endpoint security software and SaaS for the military, government entities and commercial enterprises. Software provides

features for autonomous detection and prevention of targeted attacks, phishing, ransomware and malware in hybrid network

environments.

6/4/19 $100 5.0x NA NA NAProvides cloud and appliance-based bot detection and mitigation software and SaaS to prevent malicious website traffic, data mining,

account hijacking, spam and click fraud for businesses.

6/3/19 $53 1.8x NA NA NAProvides transaction integration and online and mobile payment processing software and services primarily to customers in the

educational and public sectors.

2222


RECENT ACQUISITIONS


($MM)



5/30/19 $1,000 NA NA NA NAProvides SAP-based project, plant and asset management ERP software for enterprises. Software provides features for scheduling,

project planning, workforce management and analytics reporting, accessible on desktop systems and mobile devices.

5/30/19 $780 12.0x 7.8x NA NAProvides machine learning-enabled threat intelligence SaaS for enterprises. Software provides features for the aggregation and

immediate reporting of of web-based threats in real-time.

5/30/19 $65 2.8x NA NA NAProvides wealth management and financial accounting software, EDI and transaction processing services, for businesses in the financial

and energy sectors globally. Also provides ERP and big data business application management SaaS for enterprises.

5/29/19 $410 27.3x NA NA NA

Provides enterprise container and cloud native cybersecurity management PaaS that enables businesses to deploy and protect

applications, firewalls, and test vulnerabilities. Software has capabilities for use on the AWS, Docker, IBM Cloud, Rancher, Azure, Google

Cloud Platform, Kubernetes and Pivotal platforms.

5/28/19 $250 NA NA NA NAProvides automated security attack simulation SaaS for enterprises, enabling the preventative assessment of the effectiveness of

existing security controls.

5/27/19 $70 NA NA NA NAProvides machine learning-based data privacy and compliance SaaS for enterprises. Software provides features for data protection,

classification and breach detection.

5/21/19 $300 NA NA NA NA Provides client investment portfolio management software for the financial sector.

5/20/19 $625 2.1x 2.0x NA NAProvides E-discovery and document review software, SaaS and related outsourced services for law firms, corporations and government

entities globally.

5/17/19 $56 NA NA NA NAProvides pre-employment testing and screening SaaS that enables businesses to test prospective employees in aptitude, personality, and

skills.

5/16/19 $160 5.7x 4.0x NA NAProvides cloud expense tracking, monitoring and analysis SaaS for businesses. Software enables businesses to aggregate costs of

operating cloud systems for proficiency analysis and budget forecasting.

5/13/19 $425 4.9x NA NM NA

Provides global trade management (GTM) and related SCM management SaaS, including tariff and import/export regulatory compliance,

shipping, logistics, and contract management, for businesses and enterprises globally. Also provides international trade regulations

consulting services. Amber Road completed its IPO and began trading on the NYSE under the ticker symbol AMBR in March of 2014.

5/6/19 $120 NA NA NA NAProvides zero trust network access (ZTNA) and authentication SaaS for enterprises. SaaS enables businesses to connect people,

applications, clouds, datacenters and offices, and secure them with a software-defined perimeter.

5/3/19 $525 5.3x 4.2x 17.5x 13.1xProvides operations and facilities management SaaS for the education, senior living and healthcare industries, government agencies and

membership organizations.

2323


RECENT ACQUISITIONS


($MM)



5/1/19 $335 NA NA NA NAProvides record and document management, e-recording and transaction software and SaaS for the real estate sector and county

governments in the US.

5/1/19 $170 NA NA NA NAProvides software engineering management and data visualization SaaS to software developers. Software provides features for code

reviewing and monitoring team collaboration and dynamics.

4/29/19 $66 NA NA NA NA

Provides employee benefits management SaaS to businesses. Software enables employees to enroll in corporate benefit programs online

while also providing features for call center assistance, Consolidated Omnibus Budget Reconciliation Act (COBRA) disbursements,

Affordable Care Act (ACA) compliance and reporting, document management and discrepancy reporting.

4/17/19 $1,116 3.6x NA 8.4x NAProvides accounting, payroll and retail management, point of sale (PoS) transaction processing and CRM software for small to medium-

sized businesses in Australia and New Zealand. Also provides Web and email hosting and domain name registration services.

4/16/19 $215 NA NA NA NA Provides enterprise contract lifecycle management and related document creation SaaS for businesses globally.

4/14/19 $4,400 2.0x NA 9.5x NA

Provides online marketing SaaS and services for businesses in the US. Software provides features for customer insight reporting, loyalty

rewards programs, email marketing, analytics and customer data reporting, Also includes the business of Conversant, which was

acquired by Alliance Data Systems and merged under Epsilon in 2014.

4/11/19 $350 17.5x 11.7x NA NAProvides IT asset and help desk management SaaS for businesses. Software also provides features for AI-based ticket routing, workflow

automation, reporting, license compliance management and risk management.

4/10/19 $850 8.5x NA NA NAProvides risk and investment portfolio management software and SaaS, including portfolio construction, optimization and analytics as

well as portfolio risk modeling, for financial institutions, asset managers and hedge funds.

4/10/19 $100 NA NA NA NAProvides security risk management (SRM) and related analytics SaaS for businesses and government entitites. Software enables risk

modeling for public cloud, private cloud and physical network environments.

4/4/19

Marketing & Commerce Assets

$500 1.8x NA 33.3x NAThe marketing and commerce software and SaaS assets of IBM, which provides features for campaign automation, customer analytics, AI-

based content management, search engine optimization and payments processing.

2424

SELECTED PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 6/30/19. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $50MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

6/27/19 TripActions $250Developer of an end-to-end travel management platform designed to offer complete

corporate travel planning and support. Andreessen Horowitz, Lightspeed Venture Partners, SGVC and Zeev Ventures

6/27/19 Fungible $200Developer of full-stack infrastructure software application designed to leverage the standard

components, protocols and interfaces of data centers.

SoftBank Investment Advisers, Mayfield Fund, WRV Capital, Battery Ventures, Redline Capital

Management and Norwest Venture Partners

6/27/19 Restaurant365 $88Provider of a cloud-based restaurant-specific software platform intended to combine

restaurant modules with an integrated accounting system. ICONIQ Capital, Bessemer Venture Partners and Tiger Global Management

6/27/19 Aera Technology $80 Developer of a self-driving supply chain for businesses designed for self-driving enterprise. DFJ Growth, Georgian Partners, NewView Capital

6/25/19 Monzo $147 Developer of a mobile banking application designed to offer banking service. Y Combinator, Orange Digital Ventures, Stripe, General Catalyst, Accel, LocalGlobe, Goodwater

Capital,Latitude Investments, Passion Capital and Thrive Capital

6/25/19 MX $100 Developer of a data platform intended to improve financial management. Battery Ventures, USAA Ventures, Sorenson Ventures, Washington Federal Bank for Savings,

National Bank of Canada, H.I.G. Growth Partners, Point72 Ventures, TTV Capital

6/25/19 Showpad $70Provider of a sales enablement platform designed to deliver the perfect buying experience for

the buyers. Insight Partners, Dawn Capital, Hummingbird Ventures, Korelya Capital, Silicon Valley Bank

6/25/19 Cameo $50Developer and provider of an online platform designed to create the most personalized and

authentic fan experiences.

Kleiner Perkins, The Chernin Group, Bain Capital, Lightspeed Venture Partners and Spark

Capital

6/24/19 KnowBe4 $309Developer of an integrated security awareness training and simulated phishing platform

designed to train employees to make smarter security decisions. Kohlberg Kravis Roberts, Ten Eleven Ventures and Elephant Venture Capital

6/24/19 Blend $130Developer of a digital lending platform intended to simplify and fasten consumer finance

processes.

General Atlantic, Temasek Holdings, Lightspeed Venture Partners, Founders Fund, Greylock

Partners, and 8VC

6/21/19 Digital Guardian $154Provider of a data protection platform designed to safeguards sensitive data from both

insiders and external adversaries.

LLR Partners, MassMutual Ventures, Brookline Venture Partners, Siemens Financial Services,

Golub Capital, The Goldman Sachs Group and Golub Capital BDC

6/20/19 Druva $130Developer of a cloud data protection and management platform designed to advance

protection and compliance.

Viking Global Investors, Riverwood Capital, Atreides Capital, Nexus Venture Partners, Tenaya

Capital and Neuberger Berman

6/20/19 Dianrong $100 Developer of a peer to peer lending platform designed to lend and borrow money online. Standard Chartered Private Equity, Affirma Capital and Dalian Finance Industry Investment

Group

6/20/19 TuSimple $100Developer of camera-based computer vision technology intended to provide self-driving truck

solutions. CDH Investments, Sina, Composite Capital Partners

6/19/19 Mattermost $50Provider of an open source messaging platform designed to facilitate secure team

collaboration. Y Combinator, S28 Capital, Redpoint Ventures and Battery Ventures

6/19/19 Postman $50 Provider of a collaboration platform designed to offer application program interface. Charles River Ventures and Nexus Venture Partners

6/18/19 Optimizely $50Developer of an experimentation platform designed to test, learn and deploy digital

experiences. Goldman Sachs Private Capital Investing Group, Accenture Ventures, Bridge Bank

6/17/19 RootCloud $219 Provider of an Industrial IoT platform which provides IoT and big data services globally. Hejun Group, Galaxy Holdings, Dingxing Quantum, Hua Xu Investment, Matrix Partners China,

Zhongwei Capital, Matrix Partners China, SDIC Innovation Investment Management

6/17/19 Collective Health $205Developer of cloud-based self-insurance platform designed to evolve the way in which health

benefits work.

SoftBank Investment Advisers, GV, Sun Life Financial, DFJ Growth, Maverick Ventures, Founders

Fund, New Enterprise Associates, G Squared

6/17/19 Unily $70 Provider of cloud-based IT services in United Kingdom. Silversmith Capital Partners and Farview Equity Partners

2525



($MM)



6/16/19 PayFit $82 Developer of enterprise software designed to digitize payroll and HR management. Eurazeo, Bpifrance, Otium Venture (France), Accel and Xavier Niel

6/13/19 SecurityScorecard $50Provider of a security rating platform designed to empower every organization with

collaborative security intelligence.

Riverwood Capital, Intel Capital, Evolution Equity Partners, Two Sigma Ventures, AXA Venture

Partners, Accomplice VC

6/12/19 adjust $227Developer of a business intelligence platform designed to track mobile application marketing

fraud prevention. Eurazeo, Highland Europe, Morgan Stanley and Sofina

6/12/19 Symphony $165Developer of a cloud-based open-source, secure communication and workflow platform that

aims to improve workplace productivity and connects users to their community.

Standard Chartered, MUFG Innovation Partners, BNP Paribas, Goldman Sachs Principal Strategic

Investments, J.P. Morgan

6/12/19 SignalFx $75Developer of cloud monitoring platform designed to accelerate problem detection and

troubleshooting in real-time. Tiger Global Management, Andreessen Horowitz, Charles River Ventures and General Catalyst

6/10/19 Yanolja $180 Operator of an online motel-booking application. Booking Holdings, GIC Private, Agoda Company

6/10/19 Vectra $100Developer of a network intrusion detection platform designed to automate real-time threat

detection and response.

TCV, Wipro Ventures, Nissho Electronics, Atlantic Bridge Capital, DAG Ventures, IA Ventures,

Khosla Ventures, AME Cloud Ventures, Accel and Ireland Strategic Investment Fund

6/10/19 YunQuNa $70 Provider of a B2B logistics platform designed to make shipping from China simple and easy. Sumitomo Corporation, DCM Ventures, China Merchants Group, Coatue Management, Source

Capital, Sumitomo Corporation

6/7/19 Depop $62Operator of a mobile marketplace intended to discover fashion from the most inspiring

community.

General Atlantic, HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures,

Tempo Capital Partners and Sebastian Siemiatkowski

6/5/19 Yellowbrick Data $81 Developer and provider of data warehouse intended for business decision making. DFJ Growth, GV, BMW i Ventures, IVP, Threshold Ventures, Next47, Third Point Ventures and

Menlo Ventures

6/5/19 Litify $50Developer of a productivity platform designed to automate business processes to offer greater

insights and transparency. Tiger Global Management

6/4/19 SentinelOne $120Developer of an endpoint protection software designed to protect devices and servers against

malware and threats.

Insight Partners, Samsung Venture Investment, NextEquity Partners, Data Collective, The Westly

Group, SineWave Ventures, Granite Hill Capital Partners, Third Point Ventures, Sound Ventures

6/4/19 Highspot $60 Provider of a sales engagement platform designed to improve content optimization. ICONIQ Capital, Salesforce Ventures, OpenView Venture Partners, Sapphire Ventures, Madrona

Venture Group and Shasta Ventures

6/3/19 WorldRemit $175Provider of an online digital money transfer platform intended to help people to send money

to friends and family living abroad. Leapfrog Investments, Accel and TCV

6/3/19BangSun

Technology$51

Developer of a real-time financial risk management platform created to provide risk

management products for areas including ticketing, transport, telecom and public security. Legend Capital, Xinhu Zhongbao Company, SDIC Venture Capital and VT Ventures

5/31/19 irth Solutions $100Provider of cloud-based field service management software designed to maximize business

growth. Gauge Capital, Bregal Sagemount

5/30/19 Foursquare $150Developer of a location technology platform intended to enrich consumer experiences and

inform business decisions. The Raine Group

5/30/19 KnowBox $150Developer of an online educational platform created to help students and teachers better

manage their assignments. Alibaba Group

5/30/19 Dashlane $110Provider of identity management application designed to make identity and payments simple

and secure. Sequoia Capital, Rho Ventures, FirstMark Capital and Bessemer Venture Partners

5/30/19Wiseco

Technology$95 Provider of financial services focusing on credit score analysis.

SinoOcean Capital, HuaDing Capital, China Growth Capital, WeiMingBoYa Investment, Green

Pine Capital Partners, Huagai Capital, iPinYou Interactive, WeiMingBoYa Investment

2626



($MM)



5/29/19 Logz.io $52Provider of an open-source log analytics platform designed to help companies of all sizes to

derive more value from machine data. General Catalyst and Next47

5/29/19 Talkspace $50Operator of an online therapy platform intended to eliminate the stigmas associated with

mental illness and make therapy more available.

Revolution Group, Nomura Capital Partners, Spark Capital, Compound, Norwest Venture

Partners, Qumra Capital and Hanaco Venture Capital

5/23/19 JumpCloud $50Developer of a Directory-as-a-Service (DaaS) platform intended to centralize and simplify

identity management. General Atlantic, Foundry Group and OpenView Venture Partners

5/22/19KaiOS

Technologies$50 Developer of an operating system designed to fit them in smart features phones. Cathay Innovation, Alphabet and TCL Multimedia Technology Holdings

5/21/19 Marqeta $260Provider of a payment platform intended to offer a fully documented and open API issuer

payment processor.

Coatue Management, CommerzVentures, Visa Ventures, Vitruvian Partners, Spark Capital,

CreditEase, Granite Ventures, 83North, Goldman Sachs Investment Partners, Lone Pine Capital

5/21/19 GuardiCore $60Provider of internal data center security tool designed to detect and stop advanced threats

through real-time breach detection and response.

Qumra Capital, Dell Technologies Capital, Deutsche Telekom Capital Partners, TPG Growth,

Greenfield Partners (Israel), Battery Ventures, 83North, Partech Partners and ClalTech

5/21/19 Ivalua $60Developer of web based spend management software services intended to unlock maximum

procurement value through realizing savings. Ardian and Tiger Global Management

5/21/19 People.ai $60Developer of a revenue intelligence platform designed to solve solving the problem of sales

and marketing alignment.

ICONIQ Capital, Lightspeed Venture Partners, GGV Capital, Andreessen Horowitz, and Y

Combinator

5/20/19 Deliveroo $575 Developer of an online food delivery platform intended to help users order restaurant meals. Amazon.com, Fidelity Investments, Greenoaks Capital Partners, The Strand Partners and T.

Rowe Price

5/20/19 Auth0 $103Developer of an identity and authentication platform intended to verify users and tackle

identity fraud.

Sapphire Ventures, Telstra Ventures, WiL (World Innovation Lab), Bessemer Venture Partners,

K9 Ventures, Trinity Ventures and Meritech Capital Partners

5/20/19 Clinc $52Developer of a conversational AI platform designed to understand human speech and deliver

insights. Insight Partners, Hyde Park Venture Partners, Drive Capital and DFJ Growth

5/16/19Digital Training

Solutions$291 Operator of an online learning company. The Growth Company (Manchester) and Northern Powerhouse Investment Fund

5/16/19 TodayTix $73Operator of a mobile application intended to offer on-demand access to deals on last-minute

theater tickets. Great Hill Partners

5/16/19 PDFTron $71 Provider of document processing tools intended for software developers, based in Canada. Silversmith Capital Partners

5/15/19 Tealium $55Provider of a turnkey integration ecosystem designed to make data actionable, in real-time,

across every customer experience touch point.

Silver Lake Management, Presidio Ventures, Georgian Partners, Bain Capital Ventures, Industry

Ventures, Parkwood, ABN AMRO Bank and Declaration Partners

5/14/19 Nextdoor $123 Developer of a private social networking platform designed to connect neighbors. Riverwood Capital, Benchmark (San Francisco), Hercules Capital, Kleiner Perkins and Tiger

Global Management

5/10/19Dispersive

Networks$87

Developer of virtualized dispersive networking technologies intended to revolutionize the way

people, businesses and things connect. Berg Capital Group

5/8/19 Altiostar $114Developer of Radio Area Network (RNA) software intended to improve the and enhance the

quality of telecommunication network. Tech Mahindra, Qualcomm Ventures and Rakuten

5/8/19 Sumo Logic $110Provider of a cloud based machine data analytics platform designed to deliver real-time

continuous intelligence and data across the entire application lifecycle and stack. Battery Ventures, Tiger Global Management and Franklin Templeton Investments

5/8/19 Degreed $75Provider of a learning platform designed to help individuals and organizations discover, track

and measure all learning. Signal Peak Ventures, Jump Capital, GSV AcceleraTE, Owl Ventures and AllianceBernstein

2727



($MM)



5/8/19Copper

(Software)$66

Developer of a cloud-based customer relationship management software designed to identify,

track and optimize sales.

Norwest Venture Partners, GV, Vela Partners, Digital Horizon Capital, Next World Capital, Storm

Ventures, Industry Ventures, True Ventures and H. Barton Asset Management

5/8/19 ArchiveSocial $53 Developer of software for record-keeping regulations and mitigate risk related to social media. Level Equity, David Gardner, Dennis McKenna and Steve Case

5/7/19 Beidan $125Developer of an e-commerce platform that connects customers, shop owners and suppliers,

allowing consumers to find high quality products at reasonable prices.

IDG Capital, Xiang He Capital, Hillhouse Capital Group, Sequoia Capital China, Sinovation

Ventures, Capital Today and Gaorong Capital

5/7/19 SendBird $102Developer of messaging and chat API for mobile applications and websites designed to digitize

human interactions for businesses.

ICONIQ Capital, Tiger Global Management, FundersClub, Shasta Ventures, August Capital, and

Y Combinator

5/7/19 VTS $90The company's platform provides brokers and owners with real-time access to everything

happening throughout their portfolio, enabling users to interact with data and identify trends

Brookfield Ventures, Fifth Wall Ventures, GLP, Tishman Speyer (Ventures), Tishman Speyer

Properties

5/7/19 Exabeam $75 Provider of an analytics-led security intelligence platform designed to detect data breaches. Lightspeed Venture Partners, Sapphire Ventures, Cisco Investments, 3737 North Capital,

Norwest Venture Partners, Aspect Ventures, Icon Ventures and Shlomo Kramer

5/6/19 Carta $300Developer of an ownership management and compliance platform designed to consolidate

company ownership data onto one common electronic registry.

Andreessen Horowitz, Goldman Sachs Principal Strategic Investments, SGH Capital, Thrive

Capital, Lava Walk Ventures, Union Square Ventures, Menlo Ventures

5/6/19 Noom $58Developer of a mobile health coaching software designed to provide intelligent nutrition and

exercise coaching.

Sequoia Capital, Samsung Venture Investment, Aglaé Ventures, Tony Xu, Joshua Kushner,

Scooter Braun and Jan Koum

5/3/19 Kaseya $500 Provider of IT management and monitoring software services. Insight Partners and TPG Capital

5/2/19 Checkout.com $230Provider of an online payments platform intended to track and secure digital payments across

the Internet. Insight Partners, DST Global, Blossom Capital, Endeavor Catalyst and GIC Private

5/1/19 Aryaka $50Provider of a network optimization and application acceleration platform created to address

the connectivity needs of modern global enterprises.

Goldman Sachs Private Capital Investing Group, Presidio Ventures, Deutsche Telekom Capital

Partners, InterWest Partners, Third Point Ventures, Trinity Ventures, Mohr Davidow Ventures

5/1/19 Zenoti $50Provider of an all-in-one, cloud-based software solution for the spa, salon and med spa

industries. Tiger Global Management, Accel and Norwest Venture Partners

4/30/19 UiPath $568Developer of robotic process automation software designed to deliver fast and reliable RPA

that enhances business performance at unlimited scale.

Coatue Management, CapitalG, Wellington Drive Technologies, Dragoneer Investment Group,

Accel, Sands Capital Ventures, Sequoia Capital, IVP and Madrona Venture Group

4/30/19 Divvy $200Developer of a secure expense management platform designed to automate the entire

expense report process.

New Enterprise Associates, Insight Partners and Pelion Venture Partners, Waterfall Asset

Management

4/30/19 Examity $90Developer of a proctoring platform designed to enhance the level of authenticity for

educational institutions. Great Hill Partners

4/30/19 Technisys $50 Developer of financial software products designed to cater to the financial services industry. Riverwood Capital

4/25/19 SalesLoft $70Developer of a cloud-based sales intelligence software designed to gather relevant news and

data. Insight Partners, HarbourVest Partners

4/23/19 Harness $60Developer of a continuous delivery-as-a-service platform created to simplify the software

delivery process for software engineers. GV, ServiceNow Ventures, IVP, Menlo Ventures, Unusual Ventures and BIG Labs

4/16/19 Outreach $114Developer of a sales engagement platform designed to drive deeper engagement with

prospects.

Lone Pine Capital, M12, Four Rivers Group, DFJ Growth, Spark Capital, Sapphire Ventures,

Meritech Capital Partners, Lemonade Capital, Mayfield Fund and Trinity Ventures

4/11/19 Armis $65Developer of an agentless IoT security platform for enterprises created to identify unmanaged

devices or networks.

Sequoia Capital, Insight Venture Partners, Intermountain Ventures, Tenaya Capital, Red Dot

Capital Partners and Bain Capital Ventures

2828



($MM)



4/10/19 KeyMe $50Developer of a mobile application designed to scan, save and share a digital copy of key and

order copies shipped to door. BlackRock

4/9/19 Expanse $70Developer of internet IT operations management platform intended to discover, manage and

secure global internet assets.

TPG Growth, Founders Fund, New Enterprise Associates, IVP, Sam Palmisano, Peter Thiel and

MSD Capital

4/8/19 Bitglass $70 Developer of an enterprise security software created to help enterprises to work on the cloud. Singtel Innov8, New Enterprise Associates, Norwest Venture Partners, Quadrille Capital and

Australia Future Fund

4/8/19 Upstart Network $50 Operator of an online lending marketplace intended to provide personal loans. Progressive Investments, Healthcare of Ontario Pension Plan and First National Bank of Omaha

4/3/19 Onfido $65Developer of an identity verification platform intended to automate the identity verification

process. Salesforce Ventures, SBI Investment, M12, SoftBank Group and Fin Venture Capital

4/3/19 Aqua Security $62Developer of an end-to-end security platform intended to improve security for containerized

and cloud-native applications. Insight Venture Partners, M12, Lightspeed Venture Partners, TLV Partners, and Shlomo Kramer

4/2/19 Bill.com $88Provider of a cloud-based payment management platform designed to make it simple to

connect and do business.

FleetCor Technologies, MasterCard, Fidelity Investments, Cross Creek, Kayne Anderson Rudnick

Investment Management, Franklin Templeton Investments and Temasek Holdings

4/1/19 OYO Rooms $1,100 Operator of a branded network of hotels designed to offer standardized stay experiences. SoftBank Group, Airbnb, Grab, Didi Chuxing, Greenoaks Capital Partners, Sequoia Capital India

and Lightspeed India Partners Advisors

2929

Recent Software IPO Pricings

SOFTWARE CAPITAL MARKETS UPDATE

Notes:Sources: Capital IQ and Company filings. Market data as of 7/25/19. IPO pricings include public registrations only. (1) First Trading Day listed as Offer Date.

($MM)

Offer Date(1) Market Cap @ IPO

DateAmount Raised Pre IPO Filing Range Offer Price Last Close Price

% Change

Offer /

Midpoint Price

% Change

1st Trading Day /

Offer Price

% Change Current /

Offer Price

7/19/2019 $4,565 $326 16.00 - 18.00 $21.00 $41.50 23.5% 76.4% 97.6%

6/20/2019 $19,484 $4,560 Direct Listing $38.50 $33.72 NA 0.3% (12.4%)

6/12/2019 $11,408 $612 28.00 - 30.00 $34.00 $92.28 17.2% 70.6% 171.4%

5/17/2019 $2,176 $180 14.00 - 16.00 $16.00 $22.97 6.7% 49.9% 43.6%

4/18/2019 $15,896 $751 33.00 - 35.00 $36.00 $97.11 5.9% 72.2% 169.8%

4/11/2019 $620 $108 12.00 - 14.00 $14.00 $21.79 7.7% 36.4% 55.6%

4/11/2019 $2,816 $218 21.00 - 23.00 $24.00 $43.50 9.1% 59.4% 81.3%

10/19/2018 $4,538 $375 15.00 - 16.00 $15.00 $17.92 (3.2%) 0.2% 19.5%

10/12/2018 $2,956 $264 15.00 - 17.00 $17.00 $59.38 6.3% 42.9% 249.3%

10/5/2018 $4,864 $252 33.00 - 35.00 $36.00 $98.24 5.9% 94.4% 172.9%

10/3/2018 $2,204 $187 12.00 - 1 4.00 $15.00 $16.84 15.4% 41.2% 12.3%

9/26/2018 $2,107 $180 9.00 - 11.00 $12.00 $17.79 20.0% 43.7% 48.3%

7/27/2018 $1,336 $127 17.00 - 19.00 $20.00 $38.60 11.1% 26.0% 93.0%

7/27/2018 $1,438 $115 10.00 - 12.00 $12.00 $10.99 9.1% 9.3% (8.4%)

7/26/2018 $2,755 $251 17.00 - 19.00 $23.00 $31.43 27.8% 31.5% 36.7%

6/29/2018 $681 $193 19.00 - 21.00 $21.00 $29.12 5.0% 30.0% 38.7%

6/15/2018 $2,933 $180 21.00 - 23.00 $24.00 $84.79 9.1% 87.3% 253.3%

5/17/2018 $1,196 $311 12.00 - 14.00 $15.00 $30.02 15.4% 33.3% 100.1%

Mean 11.3% 44.7% 90.1%

Median 9.1% 42.1% 68.4%

Name

3030

195

144

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(7)

(11)

(2)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(12)

(13)(16)

(5)

6

11

717

1617 11

9

10

20

7

130

140

150

160

170

180

190

200

210PE Acquisitions Strategic Acquisitions IPO

Notes:Sources: Capital IQ, company filings. Market data as of 7/25/2019.

A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIESStrategic and Private Equity Exits Outweigh New Issues

20182008 2009 2010 2011 20152012 2013 2014 2016 2017

FortinetCDC Software

LogMeInMedidata

SolarWindsRosetta Stone

SciQuestRealPageIntraLinksEnvestnet

Qlik BroadSoft

Higher One Convio

SPS CommerceSS&C

QuinStreet

JiveImperva

CarboniteTangoe

ResponsysCornerstone

Epocrates

WorkdayFleetmatics

QualysEloquaE2open

ServiceNowExa

IncadeaInfloblox

ProofpointSplunk

ExactTargetDemandwareBazaarvoiceGreenway

AVGGuidewire

MavenirBarracudaWix.comCovisint

RingCentralFireEyeCvent

Gigamon Textura

ChannelAdvisorMarketoTableauHalogen

RallyMarin

Model N

WorkivaHortonworks

New RelicHubSpotCyberArk

MobileIronKinaxis

ZendeskPaycom

OPOWERFive9

2UBorderfree

Amber RoadA10 Networks

PaylocityVaronis Systems

AtlassianMimecast

InstructureRapid7Sophos

AppFolioAlarm.Com

XactlyShopifyApigee

Box

TwilioSecureWorks

TalendEverbridge

Apptio Gridsum Holding

NutanixCoupa

BlackLine, Inc.

MulesoftAlteryx

OktaYext

ClouderaAppian

MongoDBAltair Engineering

SendGridSailPoint

CardlyticsZscaler

DropboxZuora

Pivotal SoftwareCeridianDocuSign

SmartsheetCarbon Black

PluralsightAvalaraDomo

Tenable HoldingsOpera Limited

EndavaSurveyMonkey

UpworkElastic

AnaplanSolarwinds

2019

PagerDutyTufin

Zoom VideoFastly

CrowdStrikeSlack

Medallia

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

IPO + 6 + 11 + 7 + 17 + 16 + 17 + 11 + 9 + 10 + 20 + 7

Strategic Exits - 7 - 11 - 8 - 11 - 9 - 6 - 10 - 12 - 13 - 16 - 5

PE Exits - 5 - 4 - 6 - 9 - 6 - 7 - 8 - 9 - 7 - 11 - 2

3131

US Deal Share by Sector

US Financing Trend

US FINANCING AND DEAL SHARE BY SECTOR

Notes:Source: PwC CB Insights MoneyTree Report Q2 2019.

46% 42% 46% 44% 44% 45% 44% 44%

13%11%

12% 12% 12% 12% 12% 16%

15%

15%13% 15% 15% 14% 14%

12%

8%

8%8% 9% 8% 10% 11% 9%

4%

6%4% 5% 3%

5% 4% 4%

14% 18% 17% 15% 18%16% 15% 15%

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Internet Mobile & Telecommunications Healthcare Software (non-internet/mobile) Consumer Products & Services Other

$20.7 $20.2$23.1 $24.6

$29.3

$39.0

$26.1$28.7

1,5871,465

1,5731,683

1,484

1,378

1,362 1,409

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($Bn) Deals

3232

GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANKGlobal investment bank providing strategic M&A and capital markets advisory services to growth companies and market leaders

GCA operates as GCA in America and Asia, and GCA Altium in Europe

ZURICH

MILAN

FRANKFURT

MUNICH

TEL AVIV

LONDON

MANCHESTER

MUMBAI

OSAKA

SHANGHAI

SINGAPORE

TOKYO

NEW DELHI

NAGOYA

HO CHI MINH CITY

TAIPEI

PARISLEEDS

FUKUOKA

NEW YORK

SAN FRANCISCO

Sector expertise:

Expansive coverage

and deep specialization

Exceptional cross-border capabilities:

Over a third of all transactions

Global platform:21 offices in key markets across

America, Asia and Europe

Broad spectrum of clients:

Leading

conglomerates, top

private equity firms

and emerging high-

growth companies

Experienced team: Over 400 employees

across the globe

Strong reputation and track record: High number of

repeat clients and referrals

Diversified

business model:

Geographically balanced, synergistic

and complementary focus areas

Documents

Software Sector Summary Report · 2019-09-07 · 2 Q2 2019 Software EXECUTIVE SUMMARY Select Q2 Active Investors Select Q2 Active Strategic Buyers » The global software sector remains