Software Sector Summary Report - GCA Advisors4 TRADING COMPARABLES Valuation Metrics EV / 2016E Revenue2.0x EV / 2016E EBITDA Notes: Source: Capital IQ. Market Data as of 01/06/2017

1

Software Sector Summary

Week of January 9th, 2017

2

SOFTWARE DEAL DASHBOARD

Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 01/06/2017. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. Excludes the $7.3Bn raise by Didi Chuxing on 6/15/2016. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 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 with enterprise transaction values greater than $100MM. 6) Aggregative Value represents the majority stake being acquired by KKR. The Blackstone Group will maintain a minority stake.

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

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

$60.0 $26.2

$35.0 $8.7

$35.0 $8.7

$34.0 $6.1

$30.0 $3.3

$28.6 $2.8

$25.0 $2.4

$20.0 $1.8

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

`

$31.4 BillionFinancing Volume 2016 (1)(2)

455Financing Transactions 2016 (1)(2)

$113.1 BillionM&A Volume 2016 (3)

95M&A Transactions 2016 (3)

7286

118103 111

127

94

123

0

30

60

90

120

150

180

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16

$3$4

$6 $6

$9$10

$5$6

$0

$2

$4

$6

$8

$10

$12

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

$5

$14

$24

$15

$7

$50

$41

$15

$0

$10

$20

$30

$40

$50

$60

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

7

13

2427

15

2924

27

0

10

20

30

40

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

(Software Business Division)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17

IGV SPX

16%

17%

( )

3.9x

3.1x

4.2x

3.5x 3.9x

4.6x 4.7x

3.9x

5.3x

4.0x 3.6x

4.9x

2.7x 2.2x

2.9x 3.0x

4.4x 4.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2011 2012 2013 2014 2015 2016

All Buyers Strategic Buyers PE Buyers

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3)

$Bn $Bn

(6)

34%

94% 54%

20%

3

RECENT STOCK PERFORMANCE Index Performance

Last 12 Months Last 3 Years

Notes: Source: Capital IQ. Market Data as of 01/06/2017. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17

Sector 3 Months 1 Year 3 Years

Platform (1%) 16% 32%

Infrastructure 0% 21% 6%

Security (6%) 4% 9%

SaaS / On Demand (7%) 9% 17%

BI & Analytics (9%) (6%) (19%)

Vertical (12%) (2%) 0%

4

TRADING COMPARABLES Valuation Metrics

EV / 2016E Revenue EV / 2016E EBITDA


5.0x4.8x

4.5x 4.3x4.1x

3.2x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

SaaS / OnDemand

Infrastructure Platform Vertical Security BI & Analytics

34.3x

28.7x 27.7x

24.1x

20.7x

15.3x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

SaaS / OnDemand

BI & Analytics Security Infrastructure Vertical Platform

5

TRADING COMPARABLES Operational Metrics

2016 EBITDA Margin 2017 / 2016 Rev. Growth


19%

15% 15%15% 14%

7%

0%

5%

10%

15%

20%

25%

SaaS / OnDemand

Security BI & Analytics Vertical Infrastructure Platform

32%

27%

22% 21%

17% 15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Platform Infrastructure Vertical Security BI & Analytics SaaS / OnDemand

6

PUBLIC COMPANY VALUATIONS Software Trading Statistics

Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM. Market Data as of 01/06/2017.

$MM, Except Per Share Data

Stock Trading Statistics Operating Metrics

Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

1/6/2017 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E

Platform

Alphabet Inc. $825.21 $568,768 ($79,118) $489,650 5.5x 4.8x 13.5x 11.6x 23.7x 20.0x 19.0% 15.1% 40.6% 41.1%

Microsoft Corporation $62.84 488,603 (60,857) 427,746 4.6 4.4 12.2 11.6 22.0 20.6 4.8% 4.4% 37.9% 38.4%

International Business Machines Corporation $169.53 161,198 32,515 193,713 2.4 2.4 10.2 9.6 12.6 12.2 (2.4%) (0.5%) 23.9% 25.4%

Oracle Corporation $38.45 157,735 (3,879) 153,856 4.1 4.0 10.5 9.1 18.4 14.5 (0.6%) 2.8% 39.2% 44.3%

SAP SE $88.73 106,315 2,962 109,277 4.7 4.4 13.9 12.9 22.1 19.7 2.8% 6.8% 33.9% 34.2%

Red Hat, Inc. $73.80 13,158 (555) 12,603 5.4 4.8 31.6 18.2 56.3 29.5 17.9% 12.8% 17.1% 26.4%

Mean 4.5x 4.1x 15.3x 12.2x 25.9x 19.4x 6.9% 6.9% 32.1% 35.0%

Median 4.7 4.4 12.9 11.6 22.1 19.8 3.8% 5.6% 35.9% 36.3%

Infrastructure

VMware, Inc. $81.50 $33,669 ($6,754) $26,915 3.8x 3.6x 10.2x 9.6x 18.7x 17.4x 6.1% 5.4% 37.4% 37.7%

Citrix Systems, Inc. $91.01 14,194 (324) 13,870 4.1 4.1 11.7 11.4 17.5 17.1 4.1% (1.3%) 34.8% 36.1%

CA, Inc. $33.19 13,868 (496) 13,372 3.3 3.3 8.3 8.4 13.2 13.1 0.0% 1.0% 40.0% 38.8%

ServiceNow, Inc. $82.10 13,630 (308) 13,322 9.6 7.4 51.1 34.1 NM 78.4 37.7% 30.0% 18.8% 21.7%

Red Hat, Inc. $73.80 13,158 (555) 12,603 5.4 4.8 31.6 18.2 56.3 29.5 17.9% 12.8% 17.1% 26.4%

F5 Networks, Inc. $144.45 9,435 (882) 8,553 4.2 3.9 10.7 9.9 19.2 17.0 3.9% 8.2% 39.5% 39.5%

Splunk Inc. $56.17 7,620 (939) 6,681 7.2 5.6 82.5 53.3 NM NM 39.4% 27.9% 8.7% 10.5%

Micro Focus International plc $26.02 5,968 1,613 7,580 5.6 4.9 11.9 10.1 15.5 14.5 9.2% 14.3% 47.0% 48.4%

Atlassian Corporation Plc $24.72 5,443 (754) 4,688 8.9 6.9 42.4 32.2 74.7 65.1 35.9% 28.9% 21.0% 21.4%

Nutanix, Inc. $27.71 3,942 (347) 3,595 NA 4.1 NA NM NM NM NA NA NA NM

NetScout Systems, Inc. $31.90 2,921 5 2,926 2.6 2.4 9.9 7.5 19.1 15.0 45.2% 8.6% 25.8% 31.5%

Software Aktiengesellschaft $36.46 2,779 (105) 2,674 2.9 2.8 9.2 9.0 14.3 13.8 (2.3%) 2.4% 31.4% 31.3%

LogMeIn, Inc. $98.35 2,518 (180) 2,338 7.0 6.0 26.5 22.7 49.4 38.2 23.5% 15.2% 26.3% 26.7%

Commvault Systems, Inc. $52.85 2,394 (440) 1,954 3.1 2.9 21.8 20.0 49.0 48.6 8.3% 6.2% 14.1% 14.5%

Pure Storage, Inc. $11.97 2,393 (518) 1,874 2.6 1.9 NM NM NM NM 65.1% 39.1% NM NM

New Relic, Inc. $30.55 1,592 (197) 1,395 5.8 4.5 NM NM NM NM 48.5% 28.3% NM 1.0%

Progress Software Corporation $31.53 1,532 (96) 1,436 3.5 3.4 9.9 10.2 19.9 18.5 9.3% 2.6% 35.0% 33.3%

A10 Networks, Inc. $8.50 571 (117) 454 2.0 1.8 NM 27.0 NM 94.9 14.1% 13.2% 1.8% 6.6%

Mean 4.8x 4.1x 24.1x 18.9x 30.6x 34.4x 21.5% 14.3% 26.6% 26.6%

Median 4.1 4.0 11.8 11.4 19.1 18.0 14.1% 12.8% 26.3% 29.0%

7







Security Software

Symantec Corporation $25.01 $15,592 $1,557 $17,149 4.5x 3.8x 11.4x 8.1x 22.9x 16.3x (38.2%) 18.3% 39.6% 46.7%

Check Point Software Technologies Ltd. $87.24 15,258 (1,230) 14,028 8.1 7.7 14.7 14.2 19.3 17.9 6.3% 5.6% 55.1% 54.0%

Palo Alto Networks, Inc. $135.05 12,382 (884) 11,498 7.3 5.6 34.5 22.3 64.5 41.9 36.9% 30.5% 21.2% 25.1%

Splunk Inc. $56.17 7,620 (939) 6,681 7.2 5.6 82.5 53.3 NM NM 39.4% 27.9% 8.7% 10.5%

Fortinet, Inc. $31.01 5,366 (1,030) 4,336 3.4 3.0 20.2 16.0 48.5 38.4 24.5% 16.9% 17.0% 18.4%

Trend Micro Incorporated $36.84 5,052 (1,255) 3,797 3.4 3.1 10.5 9.7 30.7 26.1 9.4% 7.0% 31.9% 32.2%

Proofpoint, Inc. $79.18 3,365 (51) 3,314 8.9 6.8 92.5 66.7 NM NM 40.7% 29.7% 9.6% 10.3%

FireEye, Inc. $12.54 2,146 (193) 1,952 2.7 2.5 NM 65.1 NM NM 15.6% 10.2% NM 3.8%

CyberArk Software Ltd. $48.44 1,626 (252) 1,374 6.4 5.2 23.1 19.7 41.0 36.0 33.9% 22.4% 27.6% 26.5%

Imperva, Inc. $39.30 1,291 (259) 1,032 4.0 3.4 NM 91.3 NM NM 9.4% 19.0% NM 3.7%

Barracuda Networks, Inc. $22.78 1,191 (175) 1,016 2.9 2.8 13.2 11.8 32.4 33.6 11.8% 6.5% 22.3% 23.5%

Qualys, Inc. $33.05 1,180 (210) 970 4.9 4.1 14.9 12.5 41.0 36.1 20.7% 18.0% 32.9% 33.0%

Mimecast Limited $18.60 1,020 (107) 913 5.4 4.4 NM 56.7 NM NM 23.8% 24.2% 4.8% 7.7%

SecureWorks Corp. $10.60 855 (111) 744 1.7 1.5 NM NM NM NM 26.0% 14.8% NM 0.0%

VASCO Data Security International, Inc. $14.75 586 (142) 445 2.3 2.1 18.3 16.2 30.7 22.3 (20.9%) 9.7% 12.7% 13.1%

F-Secure Oyj $3.60 563 (97) 465 2.8 2.6 18.7 14.4 35.9 30.8 3.3% 7.3% 15.0% 18.1%

Rapid7, Inc. $12.54 533 (88) 445 2.9 2.3 NM NM NM NM 40.6% 23.2% NM NM

MobileIron, Inc. $4.00 352 (80) 272 1.7 1.5 NM NM NM NM 9.5% 11.1% NM NM

Zix Corporation $4.90 263 (25) 238 4.0 3.6 14.6 13.7 19.6 17.5 9.9% 9.4% 27.1% 26.5%

Guidance Software, Inc. $7.26 234 (7) 227 2.1 2.0 NM 19.5 NM 23.6 2.6% 4.7% 0.9% 10.1%

Absolute Software Corporation $4.84 189 (32) 157 1.8 1.6 19.2 17.5 NM NM (3.8%) 9.7% 9.2% 9.2%

iPass Inc. $1.54 102 (17) 85 1.3 1.2 NM 18.5 NA NA 1.3% 14.0% NM 6.4%

Mean 4.1x 3.5x 27.7x 28.8x 35.1x 28.4x 13.8% 15.5% 21.0% 18.9%

Median 3.4 3.0 18.5 17.5 32.4 28.5 10.8% 14.4% 19.1% 15.6%

8







SaaS / On Demand

salesforce.com, inc. $73.80 $50,117 $1,315 $51,432 6.1x 5.1x 30.0x 24.3x 75.4x 57.4x 25.6% 21.6% 20.5% 20.8%

Workday, Inc. $73.85 14,844 (1,386) 13,458 8.6 6.8 99.3 61.2 NM NM 34.5% 27.5% 8.7% 11.0%

ServiceNow, Inc. $82.10 13,630 (308) 13,322 9.6 7.4 51.1 34.1 NM 78.4 37.7% 30.0% 18.8% 21.7%

Veeva Systems Inc. $42.25 5,795 (511) 5,284 9.8 8.1 31.6 26.1 62.0 53.1 31.9% 20.7% 31.0% 31.1%

The Ultimate Software Group, Inc. $189.08 5,483 (100) 5,383 6.9 5.6 28.9 22.8 58.3 47.2 26.3% 24.0% 23.9% 24.4%

Aspen Technology, Inc. $55.33 4,273 (52) 4,222 9.0 8.7 17.9 18.2 29.4 29.4 1.3% 3.1% 50.2% 47.9%

Shopify Inc. $46.90 4,172 (400) 3,772 9.9 6.7 NM NM NM NM 85.5% 47.9% 0.0% 2.4%

j2 Global, Inc. $83.43 4,006 274 4,280 5.0 3.7 11.0 8.8 17.0 13.8 18.8% 35.4% 45.4% 42.0%

Blackbaud, Inc. $66.17 3,076 359 3,435 4.7 4.3 19.6 18.1 34.9 30.2 14.5% 8.9% 24.0% 23.9%

Paycom Software, Inc. $47.49 2,855 (44) 2,810 8.6 6.7 31.6 24.3 57.9 45.6 45.9% 28.7% 27.1% 27.4%

LogMeIn, Inc. $98.35 2,518 (180) 2,338 7.0 6.0 26.5 22.7 49.4 38.2 23.5% 15.2% 26.3% 26.7%

Cornerstone OnDemand, Inc. $42.25 2,374 (1) 2,373 5.6 4.9 68.5 48.5 NM NM 24.7% 15.4% 8.2% 10.0%

RealPage, Inc. $29.20 2,350 54 2,404 4.2 3.7 19.2 15.9 39.3 32.3 21.3% 14.4% 22.0% 23.3%

Zendesk, Inc. $22.47 2,142 (211) 1,931 6.2 4.7 NM NM NM NM 48.8% 32.3% 1.6% 3.5%

Box, Inc. $15.05 1,905 (102) 1,803 4.5 3.6 NM NM NM NM 31.3% 26.0% NM NM

HubSpot, Inc. $52.60 1,873 (113) 1,760 6.5 5.0 NM NM NM NM 47.7% 30.3% NM 0.4%

Paylocity Holding Corporation $31.34 1,609 (78) 1,531 5.8 4.6 48.5 35.8 NM 72.1 39.8% 26.0% 12.0% 12.9%

RingCentral, Inc. $21.80 1,604 (136) 1,468 3.9 3.1 68.1 46.6 NM NM 27.2% 24.4% 5.7% 6.7%

New Relic, Inc. $30.55 1,592 (197) 1,395 5.8 4.5 NM NM NM NM 48.5% 28.3% NM 1.0%

2U, Inc. $32.18 1,514 (157) 1,357 6.6 5.1 NM NM NM NM 36.4% 30.8% 2.0% 3.1%

SPS Commerce, Inc. $71.20 1,213 (125) 1,088 5.6 4.8 41.3 33.1 72.3 60.2 21.8% 17.7% 13.6% 14.4%

Coupa Software Incorporated $24.13 1,206 (221) 985 7.5 6.0 NM NM NM NM 57.2% 25.1% NM NM

Qualys, Inc. $33.05 1,180 (210) 970 4.9 4.1 14.9 12.5 41.0 36.1 20.7% 18.0% 32.9% 33.0%

Callidus Software Inc. $16.30 1,035 (186) 848 4.1 3.5 36.7 25.5 60.5 46.8 18.6% 18.4% 11.3% 13.7%

Mimecast Limited $18.60 1,020 (107) 913 5.4 4.4 NM 56.7 NM NM 23.8% 24.2% 4.8% 7.7%

9







SaaS / On Demand (cont'd)

Benefitfocus, Inc. $31.30 $931 $15 $946 4.0 3.4 NM 81.5 NM NM 26.2% 19.8% NM 4.1%

Five9, Inc. $14.78 783 (13) 770 4.8 4.1 NM 89.6 NM NM 24.0% 16.6% 4.5% 4.6%

Apptio, Inc. $17.88 685 (122) 563 3.6 3.0 NM NM NM NM 22.5% 19.4% NM NM

Instructure, Inc. $20.65 583 (83) 500 4.5 3.3 NM NM NM NM 50.4% 35.6% NM NM

Workiva Inc. $13.65 563 (32) 530 3.0 2.5 NM NM NM NM 22.3% 17.6% NM NM

Castlight Health, Inc. $4.30 449 (116) 332 3.3 2.7 NM NM NM NM 33.6% 23.2% NM NM

LivePerson, Inc. $7.50 435 (51) 383 1.7 1.7 20.3 16.8 NM 87.5 (6.8%) 2.8% 8.5% 9.9%

Carbonite, Inc. $15.55 424 (49) 375 1.8 1.7 9.3 7.9 26.8 23.0 49.1% 6.8% 19.7% 21.8%

Bazaarvoice, Inc. $4.95 410 (49) 361 1.8 1.7 27.6 20.4 NA NM 2.4% 4.4% 6.5% 8.4%

ChannelAdvisor Corporation $14.75 380 (63) 317 2.8 2.5 61.4 46.6 NM NM 12.7% 14.1% 4.6% 5.3%

Jive Software, Inc. $4.45 348 (100) 248 1.2 1.2 14.7 12.3 68.5 40.5 3.3% 0.8% 8.4% 9.9%

Tangoe, Inc. $8.13 321 (32) 289 1.2 1.2 12.4 NA 22.6 22.0 NA (0.0%) 10.0% NA

Brightcove Inc. $8.10 274 (34) 239 1.6 1.5 32.4 22.5 NM 68.5 11.7% 9.5% 4.9% 6.5%

Park City Group, Inc. $13.90 269 (8) 261 NA NA NA NA NA NA NA NA NA NA

Amber Road, Inc. $8.99 241 6 247 3.4 3.0 NM NM NM NM 8.3% 14.6% NM NM

Marin Software Incorporated $2.65 102 (33) 69 0.7 0.7 NM 25.9 NM NM (8.8%) (3.5%) 0.3% 2.8%

Covisint Corporation $1.95 80 (35) 45 NA NA NA NA NA NA NA NA NA NA

Mean 5.0x 4.1x 34.3x 31.8x 47.7x 46.4x 27.3% 19.4% 15.2% 15.1%

Median 4.9 4.1 29.4 24.3 49.4 45.6 24.7% 19.6% 10.6% 10.5%

10







Business Intelligence & Analytics

Splunk Inc. $56.17 $7,620 ($939) $6,681 7.2x 5.6x 82.5x 53.3x NM NM 39.4% 27.9% 8.7% 10.5%

Fair Isaac Corporation $122.51 3,791 495 4,286 4.8 4.6 20.6 20.2 25.3 23.9 5.2% 4.9% 23.3% 22.6%

Teradata Corporation $28.75 3,735 (413) 3,322 1.5 1.6 5.5 7.6 11.6 16.6 (10.1%) (6.0%) 26.8% 20.6%

Tableau Software, Inc. $44.98 3,423 (865) 2,558 3.2 3.0 39.3 39.5 NM NM 23.4% 7.3% 8.1% 7.5%

Verint Systems Inc. $36.50 2,288 442 2,730 2.6 2.4 11.9 10.4 14.7 12.9 (5.6%) 6.1% 21.6% 23.1%

MicroStrategy Incorporated $199.17 2,277 (579) 1,698 3.3 3.2 12.7 11.2 23.9 22.6 (3.2%) 2.5% 26.1% 28.8%

Hortonworks, Inc. $9.00 547 (84) 463 2.6 2.0 NM NM NM NM 48.1% 29.9% NM NM

Gridsum Holding Inc. $11.06 318 (74) 244 4.3 2.8 NM 39.6 NM NM 55.4% 57.2% NM 7.0%

Attunity Ltd. $6.04 102 (9) 93 1.7 1.5 NM 10.5 NM 45.3 10.6% 13.3% 1.1% 14.5%

Datawatch Corporation $5.65 67 (28) 39 1.3 1.1 NM NA NM NM 3.3% 10.5% NM NA

Mean 3.2x 2.8x 28.7x 24.0x 18.9x 24.3x 16.6% 15.4% 16.5% 16.8%

Median 2.9 2.6 16.6 15.7 19.3 22.6 7.9% 8.9% 21.6% 17.6%

Vertical

Cerner Corporation $47.55 $16,143 ($120) $16,023 3.3x 3.1x 10.2x 9.2x 20.6x 18.5x 10.2% 9.2% 32.6% 33.3%

Constellation Software Inc. $454.12 9,624 41 9,665 4.5 4.0 17.8 15.7 24.3 20.7 15.8% 12.8% 25.5% 25.6%

SS&C Technologies Holdings, Inc. $29.92 6,068 2,388 8,457 5.6 5.1 13.9 11.8 18.5 15.6 51.8% 9.4% 39.9% 43.3%

Veeva Systems Inc. $42.25 5,795 (511) 5,284 9.8 8.1 31.6 26.1 62.0 53.1 31.9% 20.7% 31.0% 31.1%

athenahealth, Inc. $115.86 4,572 161 4,733 4.3 3.6 19.5 15.3 64.5 47.5 18.8% 18.9% 22.1% 23.7%

Guidewire Software, Inc. $51.37 3,776 (530) 3,246 7.3 6.2 41.6 30.5 74.2 62.4 12.0% 18.2% 17.6% 20.3%

CoreLogic, Inc. $36.73 3,172 1,523 4,695 2.4 2.4 9.5 9.2 15.6 14.6 26.7% (0.6%) 25.5% 26.5%

Blackbaud, Inc. $66.17 3,076 359 3,435 4.7 4.3 19.6 18.1 34.9 30.2 14.5% 8.9% 24.0% 23.9%

Medidata Solutions, Inc. $52.76 3,039 (70) 2,969 6.4 5.4 27.9 23.4 51.7 43.0 18.2% 19.2% 22.9% 23.0%

RealPage, Inc. $29.20 2,350 54 2,404 4.2 3.7 19.2 15.9 39.3 32.3 21.3% 14.4% 22.0% 23.3%

Allscripts Healthcare Solutions, Inc. $10.69 1,979 1,156 3,134 2.0 1.9 11.1 9.6 19.0 16.0 12.3% 8.7% 18.1% 19.4%

WebMD Health Corp. $50.42 1,850 6 1,856 2.6 2.5 8.1 7.5 26.5 24.9 10.7% 5.5% 32.6% 33.3%

Inovalon Holdings, Inc. $10.50 1,544 (443) 1,101 2.6 2.4 11.1 10.2 33.2 31.9 (2.4%) 6.6% 23.2% 23.6%

HealthStream, Inc. $24.10 765 (101) 664 2.9 2.6 21.8 17.9 NM 94.5 9.0% 11.2% 13.4% 14.6%

AppFolio, Inc. $22.35 753 (18) 736 7.0 5.4 NM NM NM NM 39.8% 30.1% 2.7% 3.7%

Silver Spring Networks, Inc. $13.09 679 (113) 566 1.9 1.7 30.9 20.4 71.9 47.5 (40.1%) 12.7% 6.2% 8.4%

Instructure, Inc. $20.65 583 (83) 500 4.5 3.3 NM NM NM NM 50.4% 35.6% NM NM

Castlight Health, Inc. $4.30 449 (116) 332 3.3 2.7 NM NM NM NM 33.6% 23.2% NM NM

Exa Corporation $16.02 238 (22) 216 2.9 2.6 37.0 24.1 NM NM 12.0% 12.0% 8.0% 10.9%

Mean 4.3x 3.7x 20.7x 16.5x 39.7x 36.9x 18.2% 14.6% 21.6% 22.8%

Median 4.2 3.3 19.4 15.8 34.1 31.9 15.8% 12.7% 22.9% 23.6%

11

Notes:

Sources: Capital IQ as of 01/06/2017. Consensus Estimates used for CY17E figures.

For Tangoe, CY16E FCF Margin % used since no CIQ Consensus Estimate available for CY17E FCF Margin %.

When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E Revenue Growth % is 0.54.

When analyzing the same data set, R value of 2017E Revenue Multiple and 2107E FCF Margin % is 0.50.

Estimates for COVS and PCYG are not available.

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO GROWTH AND CASH FLOW En

terp

rise

Val

ue

/ C

Y 2

01

7E

Re

ven

ue

AZPN

BV

BLKB

BOX CALD

CARB

CSLT ECOM

CSOD

FIVN HUBS

INST

LPSN

LOGM

MRIN

MIME

NEWR

PAYC

PCTY

QLYS

RP

RNG

CRM

NOW

SHOP

SPSC

TNGO

ULTI

VEEV

WDAY

WK

ZEN

TWOU

BNFT

AMBR

JIVE

JCOM

BCOV

COUP

APTI

SPLK

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

(10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

R = 0.81

CY 2017E Revenue Growth % + CY 2017E FCF Margin %

12

Notes:

Sources: Capital IQ as of 01/06/2017. Consensus Estimates used for CY16E Revenue figures and GAAP figures used for Sales and Marketing Expense.

For Tangoe, CIQ Consensus Estimate used for CY15 Revenue since no actual Revenue figure was reported for that period.

SaaS companies with Annual Change in Revenue (CY16E) / LTM Sales and Marketing Expense less than or equal to 0.0 placed at 0.0 x-axis position and excluded from R calculation (AZPN, LPSN, MRIN). The Annual Change in

Revenue (CY16E) / LTM Sales and Marketing Expense for these companies are provided in parenthesis.

Estimates for COVS and PCYG are not available.

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO S&M EFFECTIVENESS En

terp

rise

Val

ue

/ C

Y 2

01

6E

Rev

en

ue

Annual Change in Revenue (CY16E) / LTM Sales and Marketing Expense

CRM

NOW

ULTI

SHOP

BLKB

PAYC

ZEN

CSOD

LOGM

PCTY

RP

HUBS

BOX

RNG

TWOU

QLYS SPSC

BNFT

CALD

MIME FIVN

WK

INST CSLT

BV CARB

JIVE TNGO

ECOM

VEEV

WDAY

NEWR

AMBR

AZPN (0.1x)

LPSN (-0.2x)

MRIN (-0.3x)

JCOM

BCOV

COUP

APTI

SPLK

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

R = 0.61

13

($MM)

Announced Aggregate AV / Revenue

Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description

1/4/17 Application Software $134 19.1x 7.0x

Provides health benefits management SaaS for businesses. Software provides features for financial

management, customized health benefit plans, and data and analytics reporting. Also provides mobile access

and systems integration services

12/23/16 Application Software $53 NA NAProvides cloud-based global import and export trade reference software and an online database of analysis

content, cargo details and related company profiles for businesses at www.datamyne.com

12/20/16 Application Software $67 NA NA Provides client reporting software and services for the investment and financial services sectors globally

12/20/16 Security $560 NA NAProvides digital rights management SaaS for businesses and content producers, as well as an online digital

music and video content recognition database for consumers and the entertainment sector

12/19/16 Application Software $160 3.9x NA

Provides insurance policy administration and management software as a service (SaaS) and on-premise for

property and casualty insurance companies. Features include claims management, billing and document

management. Also provides related services

12/19/16 Mobility $67 NA NADesigns and develops graphical user interfaces (GUI) for mobile phones and automotive displays, to

automotive and other embedded display manufacturers

12/13/16 Application Software $130 NA NA

The vendor management software and related assets of Beeline, which provides vendor management systems

(VMS) for businesses globally. Software provides spending management, procurement cycle automation and

quality control monitoring


Provides on premise and cloud-based channel and contract management software for businesses in the life

sciences industry. Software provides features for revenue management, contract lifecycle management and

performance analytics reporting

12/9/16 Security $850 4.0x NA

The identity management business of 3M, which consists of 3M Cogent, a biometric identification system,

and 3M's document reader and secure materials systems and software. Assets are used by civil identification,

border control and law enforcement agencies


Sungard's public sector business, which provides ERP administration SaaS for government and public safety

entities and the K-12 business, which provides cloud-based administration and student management software

for K-12 educators

12/6/16Hosted Services / Managed

Security Services $1,800 2.6x NA

Provides network and wireless network IT security auditing, compliance and penetration testing services for

businesses and government agencies globally. Also operates as an information security VAR and provides

security systems integration services

12/6/16 Application Software $2,800 NA 5.2xProvides ERP, HR management, CRM and project management software, SaaS and systems integration

services, for government contractors, professional services firms and other project-based businesses globally

12/6/16 Information Management $854 2.9x 2.7xProvides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas,

technology and manufacturing industries to securely exchange documents and sync files

12/2/16 Application Software $65 6.5x NA Provides IoT predictive analytics, data mining and event processing software and SaaS for businesses

12/1/16 Infrastructure Management $636 5.1x NA

Provides IT process automation and job scheduling software for businesses globally. Applications manage file

transfers, virtual machine provisioning, application release management and error identification and

remediation

11/30/16 Information Management $112 2.2x NAProvides enterprise data quality SaaS for business. Software provides features for data analysis, profiling,

validation and cleansing for businesses operating in the retail, insurance, healthcare and financial industries

( )

(Identity Management Business)

( )

(Public Sector & K-12 Education Businesses)

(Vendor Management Software))(

( )

RECENT ACQUISITIONS Select Software M&A Transactions

Notes: Source: Capital IQ and Wall Street Estimates. Transactions highlighted in yellow denote Private Equity Acquirers. (1) Aggregate Value represents the majority stake being acquired by KKR. The Blackstone Group will maintain a minority stake.

(1)

14


Notes: Source: Capital IQ and Wall Street Estimates. Transactions highlighted in yellow denote Private Equity Acquirers.

($MM)



11/20/16 Security $2,362 3.6x 3.3x Provides online identity theft and credit rating monitoring software for consumers and businesses in the US

11/15/16 Information Management $153 NA NAProvides Industrial Internet of Things (IIoT) data integration automation and analytics SaaS for businesses in

the energy, aviation and manufacturing sectors


Provides field service and contract management SaaS and mobile applications for service-oriented businesses

and enterprises. Software provides features for dispatch and scheduling, warranty, parts and return

management and field service metrics reporting


Provides asset and financial management SaaS to businesses and investors in the global aviation industry.

Software provides features for investment management, short term and long term bridge financing, contract

financing, customized portfolio securitization facilities, and transaction and assess risk monetization

11/8/16 Application software $300 7.9x NA

Provides 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

10/31/16 Information management $632 NA 4.2x

Provides data management SaaS to the manufacturing and construction industry in the United States and

Canada. Software provides features for financial risk management, vendor management, commercial

construction project search engines, analytics and reporting, and product marketing to industry professionals

10/27/16 Information management $55 NA 3.7xProvides team collaboration messaging SaaS that enables physicians at hospitals to communicate with

patients via a managed messaging system

10/24/16 Security $58 NA 3.7x

Provides IP traffic classification and network intelligence software used in physical, SDN and NFV

architectures. Supplies software to vendors that embed real-time application visibility in their products for

cybersecurity, traffic optimization, service chaining and quality of service, and analytics

10/21/16 Information management $410 NA NA

Provides electronic evidence and data recovery SaaS and services for law firms, government agencies and

corporate law departments. Software provides features for data collection, portfolio and project management,

forensic review and data replication and destruction

10/20/16 Security $55 NA NA

Provides cloud application control (CAC) software for enterprises. Software enables detection and targeted

attack protection (TAP) for enterprises using SaaS applications on enterprise networks and on mobile devices

against malware attacks

10/4/16 Application software $250 NA NA Provides retail brand and e-commerce online shopping marketing and advertising SaaS for businesses

10/4/16 Application software $680 13.1x NA

Provides real-time audience data management and targeting SaaS for marketers, Web publishers and ad

agencies. Software enables continuous customer and prospect data collection from digital interactions,

including website visits or ads served


Provides parking software, SaaS and systems that enables parking management, enforcement, permits,

collections, access and revenue control. Also provides related handheld input devices and software

development services

9/26/16 Application software $153 NA NA

Provides email and digital subscription management SaaS that enables US government agencies to provide

citizens with information about such topics as local emergencies, events, council minutes and other matters

through email, wireless alerts, and RSS feeds

9/22/16 Data centers & facilities $185 NA NA

Provides facilities management SaaS for sustainable resource planning for multi-site corporations. Software is

used to measure and manage carbon emissions and waste and allocate energy resources throughout multiple

facilities

9/20/16 Infrastructure management $60 12.0x NAProvides Apache JMeter open-source load testing SaaS, enabling mobile app performance testing and

monitoring for Web, mobile app, micro services and API developers and businesses.

15



($MM)



9/19/16 Application software $135 NA NAThe technology assets of INVeSHARE Inc. which provides embeddable Web-based shareholder communication

SaaS to brokerage firms and shareholders

9/19/16 Enterprise networking $1,254 3.5x 3.4xProvides DNS, DHCP, and IP address (DDI) management and network service delivery software and

management appliances for enterprises, government agencies and service providers worldwide

9/12/16 Information management $1,620 2.7x NAEMC's Enterprise Content Division, which provides enterprise content management SaaS and on-premise

software, including the Documentum, InfoArchive, and LEAP product lines, for businesses and corporations

9/8/16 API management SaaS $562 6.1x 5.0x

Provides API management SaaS for businesses globally. Software enables the integration, interfacing and

management of third-party applications and services for software developers creating branded mobile and

cloud applications

9/7/16 Security Software $6,078 NA NA

Provides network anti-malware and PC security software for consumers and enterprises worldwide. Software

includes features for anti-virus, anti-spyware, anti-spam, intrusion prevention, secure messaging, Web filtering

and vulnerability management

9/7/16 Security Software $8,730 2.8x NAHPE's software business division, which provides systems management, storage management, content

management, applications development, imaging and virtualization management software for enterprises

8/31/16 Application software $1,402 3.4x 3.1xProvides VoIP, unified communications, PBX and call center management software and software-as-a-service

(SaaS) for businesses globally. Also provides managed communications and disaster recovery services

8/18/16 Internet Software & Services $120 NA NAProvides online content management SaaS for Web publishers in the medical, scientific, technical and media

industries worldwide. Also provides online hosting of journalistic content

8/1/16 Application software $80 5.3x NAProvides project and portfolio management (PPM), application portfolio management (APM) and predictive

portfolio analysis (PPA) SaaS for the healthcare, government, education and commercial sectors

8/1/16 Information management $582 NA NA

Provides team collaboration and document management SaaS for businesses. The company’s solutions are

used in various platforms, such as iPad and iPhone, Macs, PCs, Windows, Apple watches, Android phones,

Android tablets, and on the Web

8/1/16 Systems Software $2,184 7.0x 5.8xProvides GPS-based vehicle tracking and mobile workforce management SaaS for service-based businesses

and the construction industry globally

7/28/16 Application Software $8,709 9.7x 7.7xProvides financial management and planning, ERP, e-commerce, CRM, SCM, and business intelligence (BI)

analytics software as a service (SaaS) for businesses globally

7/27/16 Information Management $1,009 1.9x 1.9xProvides e-discovery and document review software for businesses, the legal sector and government agencies

globally. Also provides a searchable online database of Chapter 7, 11 and 13 bankruptcy court filings

7/26/16 Information management $1,800 NA NAThe GoTo businesses of Citrix Systems provides Web conferencing and real-time team collaboration SaaS for

small- to medium-sized businesses

7/21/16 Application Software $215 NA NAProvides customer engagement and customer analytics SaaS for businesses in the telecom, insurance, finance,

travel, hospitality and retail sectors

7/21/16 Application Software $130 14.4x NAProvides marketing automation, customer analytics, and sales management SaaS for retailers. Software

enables marketers to collect and deliver user generated content (UGC) from various mediums

/

(Software Business Division)

(Technology Assets)

16



($MM)



7/18/16 Information Management $600 4.0x NAProvides web browsers for fixed and mobile computers and smartphones for businesses and consumers

globally

7/13/16 Security $497 3.8x 3.5xProvides single sign-on (SSO) and password management software, as well as appliance-based authentication

and employee access management systems, for hospitals and healthcare providers

7/7/16 Security $1,463 3.4x 3.3x

Provides anti-virus, anti-malware, anti-spam, firewall, mobile device and endpoint security software for

consumers and businesses globally. AVG Technologies began trading on the NYSE under the ticker symbol

AVG in February 2012

7/5/16 Application Software $3,300 3.3x NA Provides ERP, CRM and SCM software and SaaS for businesses globally

6/30/16 Infrastructure Management $237 1.5x NAProvides financial and payment processing software and services for higher education institutions. Higher One

began trading on the NYSE under the ticker symbol ONE in June 2010

6/28/16 Application Software $151 NA NAProvides retail predictive analytics SaaS that uses big data to enable retailers and wholesalers to forecast

merchandise planning, assortment, category management, pricing and supply chain optimization


Provides access control and anti-data leakage SaaS to enable businesses to secure cloud applications and

provide data loss prevention (DLP). The SaaS works on cloud services such as Amazon Web Services, Box,

Google Apps, Dropbox and Salesforce

6/20/16 Application Software $2,200 1.6x NA

Provides BI analytics and corporate performance management, database management, identity and access

management, network security management, endpoint integrity and identity and access management

software and SaaS for businesses

6/20/16 Information Management $315 NA 2.7x

The HP Exstream, HP Output Management, HP TeleForm and HP LiquidOffice software and service assets of

HP, which enable automated customer communication and multi-channel document management and

delivery for businesses

6/13/16Internet Content &

Commerce $26,188 8.1x 6.7x Provides a social networking website for professionals and businesses globally through www.linkedin.com

6/12/16 Security $4,723 7.9x NAProvides enterprise cybersecurity, Web traffic management and mobile device security systems and software

as a service (SaaS) for businesses globally

6/7/16 Application Software $175 3.5x NAProvides supply chain management (SCM) software, SaaS and related integration services to the chemical and

oil industries globally

6/2/16 Information Management $163 NA NAProvides e-discovery, enterprise search and categorization SaaS and managed services for businesses globally.

Software also enables predictive and contract analysis, and enterprise knowledge management

6/2/16 Application Software $2,615 4.1x 3.6xProvides on-premise and cloud-based business intelligence (BI) analytics and reporting software for

businesses, government agencies and educational institutions globally

6/1/16 Application Software $2,913 11.5x 9.1x

Provides enterprise cloud-based e-commerce SaaS for Web merchants and multi-channel online retailers.

Software includes features for order management, multiple e-commerce site creation and maintenance and

mobile transaction processing

6/1/16 Infrastructure management $500 6.3x 5.0x

Provides Web-based IT service management (ITSM) SaaS for managed service providers and IT support

businesses globally. Software integrates features including remote monitoring, mail security, backup and

recovery and IT service desk

( )

(customer communication

management assets)

Goloden Brick SilkRoad Fund Management

Yonglian Investments Co.

Beijing Kunlun Tech Co.

(Consumer Assets)

( )/

17



($MM)




Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and

authentication SaaS. Software enables an organization's employees to use a single sign-on (SSO) to securely

access Internet applications and Web services

5/31/16 Application Software $376 3.5x 3.4xProvides procurement, SCM, contract and inventory management, and accounts payable automation SaaS for

the scientific, education, healthcare and government sectors

5/31/16 Application Software $1,700 7.5x 5.9xProvides marketing automation SaaS for businesses. Software provides features for sales lead management

and analytics, email and social media marketing, and marketing campaign analytics

5/27/16 Application Software $164 2.2x NAProvides loan and mortgage management software, insurance policy administration software, and related

outsourced services for the financial and insurance sectors globally

5/18/16 Application Software $881 3.8x 3.2xProvides predictive dialing, IVR and analytics call center SaaS and related integration services for call center

operators globally

5/16/16 Infrastructure Management $115 4.8x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry

5/5/16 Mobility $230 NA NAProvides application program interfaces (API) and software development kits (SDK) PaaS to enable voice, text,

chat application and phone verification services for enterprises and developers globally

5/2/16 Application Software $491 3.2x 3.0x

Provides cloud-based utility and energy management SaaS for power suppliers. Software enables the analysis

of smart meter reading and analytics for demand side power optimization, customer engagement and billing

automation and Web development tools

4/28/16 Information Management $616 6.7x 5.7xProvides collaboration software as a service (SaaS) for payment management and project pre-qualification for

the commercial construction industry

4/27/16 Infrastructure Management $104 NA 3.5x

Provides Web-based secure information exchange SaaS that enables the electronic exchange and collaboration

of supply chain documents, financial information, product development materials and protected healthcare

information


Provides enterprise healthcare data analytics software and services that enable revenue management, claim

and payment accuracy, fraud protection, population health predictive big data analytics, compliance, and

reporting for the healthcare sector

4/22/16 Application Software $90 0.6x NATeradata's marketing applications business, which provides omni-channel marketing and advertising resource

and data management SaaS and services for companies and marketing agencies

All Software

Median 3.6x 3.5x

Mean 4.7x 4.4x

PE

Median 3.5x 3.5x

Mean 3.5x 3.8x

(Marketing Applications Business)

18

RECENT PRIVATE FINANCINGS

Notes: Source: Pitchbook. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

1/3/17 Chushou TV $58Operator of mobile video live streaming platform

specialized in mobile games.Feidian Capital, GGV Capital, Qiming Venture Partners, Shunwei Capital

12/27/16 Tiger Brokers $29 Owner and operator of an online brokerage firm. China Renaissance, ZhenFund

12/26/16 Freee $29Provider of a mobile accounting software for

small business owners.

Chibagin Capital, DCM Ventures, Japan Co-Invest Limited Partnership, Nissay Insurance Agency, Nissho Electronics,

Salesforce Ventures, SBI Investment, SPARX Group

12/22/16 Rappi $53Provider of on-demand delivery services that

connects consumers with local stores.Andreessen Horowitz, Burch Creative Capital, FJ Labs, FLOODGATE, Foundation Capital, monashees+, ZX Ventures

12/22/16 Huochebang $115 Provider of an online truck logistics platform. All-Stars Investment, DCM Ventures, Genesis Capital, International Finance Corporation, Tencent

12/20/16 Optoro $30

Provider of cloud-based tools for the

management and sale of returned, damaged and

excess retail inventory.

Generation Investment Management, Kleiner Perkins Caufield & Byers, Maryland Venture Fund, RevolutionGrowth,

SWaN & Legend Venture Partners, Tenfore Holdings, United Parcel Service

12/20/16 Dynamic Yield $22Developer of software systems for maximizing

Web-traffic monetization.

Baidu, Bessemer Venture Partners, ClalTech, Global Founders Capital, Innovation Endeavors Management

Company, Marker, Vertex Ventures

12/20/16 Changing Education $118 Provider of online teaching platform. Frees Fund, IDG Capital Partners, Sequoia Capital, Tal Education Group, Trustbridge Partners, Xueersi

12/15/16 Zibby $103Provider of a lease-to-own payment option for

online shoppers.Victory Park Capital

12/15/16 Personal Capital $75 Provider of online wealth management services. IGM Financial

12/15/16 Databricks $60Developer of an analytical software for business

organizations.Andreessen Horowitz, In-Q-Tel, New Enterprise Associates, SineWave Ventures

12/14/16 Tripping $35Provider of a hospitality network for travelers,

expats and locals.Adams Street Partners, Princeville Global

12/14/16 StashInvest $25 Developer of a mobile investment application. Breyer Capital, Entrée Capital, Goodwater Capital, Valar Ventures

12/14/16 One $20Developer of policy-issuance and management

software.AXA Strategic Ventures, H&Q Asia Pacific, MassMutual Ventures

12/14/16 Conversica $34Provider of lead engagement software for

marketing and sales organizations.

Green D Ventures, Kennet Partners, Providence Equity Partners, Recruit Holdings, Toba Capital, Wellington

Financial

12/14/16 BillFront $35Developer of a platform for application

developers to access revenue.4finance Holding, FinLeap

12/13/16 Survios $30 Developer of virtual-reality gaming applications. Metro-Goldwyn-Mayer Studios

19



($MM)



12/12/16 Pendo $20 Provider of a SaaS based data analytics platform.Battery Ventures, Contour Venture Partners, Core Capital Partners, IDEA Fund Partners, Salesforce Ventures, Spark

Capital

12/12/16 Nasuni $25 Provider of storage as a service for enterprises. Flybridge Capital Partners, North Bridge Venture Partners, Sigma Partners, Sigma Prime Ventures

12/12/16 JetSmarter $105Developer of a mobile application that connects

travelers to private jets.Jet Edge, KZ Capital, Saudi Royal Family, Shawn Carter

12/12/16 Dynamic Signal $25Provider of a company communications

platform.

Akkadian Ventures, Focus Ventures, Microsoft Ventures, Rembrandt Venture Partners, Time Warner Investments,

Trinity Ventures, Venrock

12/9/16 Paytm $108Provider of digital goods and mobile commerce

platform.

Alibaba Capital Partners, Ant Financial, MediaTek Ventures, SAIF Partners, Temasek Holdings, The Goldman Sachs

Group

12/5/16 Aryaka Networks $45Provider of cloud-based platform for network

optimization.InterWest Partners

12/1/16 Tamr $25 Provider of data integration platform.GE Ventures, GV, Hewlett Packard Pathfinder, MassMutual Ventures, New Enterprise Associates, SineWave

Ventures, Thomson Reuters, Work-Bench, Working Lab Capital

12/9/16 Houseparty $52 Developer of live video streaming platform. Aleph, Comcast Ventures, Greylock Partners, Sequoia Capital

12/8/16 Tangible Play $24Developer of a digital learning platform and

device.

Accel Partners, Collaborative Fund, Houghton Mifflin Harcourt Publishing, K9 Ventures, Mattel, Sesame Workshop,

Shea Ventures, Upfront Ventures

12/8/16 Procore Technologies $50Provider of an online tool for construction

project management.ICONIQ Capital

12/7/16 SnapLogic $40Provider of a unified data and application

integration platform.

Andreessen Horowitz, Capital One Growth Ventures, Ignition Venture Partners, NextEquity Partners, Triangle Peak

Partners, Vitruvian Partners

12/7/16 Podotree $107Developer of educational based applications and

content for tablets and smartphones.Anchor Equity Partners, GIC

12/7/16 KeyMe $25 Developer of an application for key duplication. Benefit Street Partners

12/7/16 Finicity $42Provider of a real-time financial data aggregation

and insight platform.Experian

12/7/16 Face++ $100 Provider of a facial recognition technology.CCB International Asset Management, Comet Labs, Foxconn Technology Group, Legend Star, Qiming Venture

Partners, Sinovation Ventures

12/6/16 PatientPing $32Developer of a real time medical notification

platform.Andreessen Horowitz, Leerink Transformation Partners

12/6/16 High Fidelity $22 Provider of a virtual reality platform. HTC

20



($MM)



12/6/16 Exclaimer $25 Provider of email utility software. Livingbridge

12/5/16 Accompany $20Developer of an eponymous relationship

intelligence platform.Charles River Ventures, Ignition Venture Partners

12/2/16 Zola $25Provider of a wedding registry and planning

platform.Lightspeed Venture Partners

12/2/16 Lemonade $33 Operator of a peer-to-peer insurance company. Aleph, General Catalyst Partners, GV, Sequoia Capital Israe, Thrive Capital, Tusk Ventures, XL Innovate

11/30/16 TraceLink $52Provider of cloud computing, social media and

supply network process software.FirstMark Capital, F-Prime Capital Partners, The Goldman Sachs Group, Volition Capital

11/30/16 SendGrid $33Provider of an email delivery platform for

customer communication.Bain Capital Ventures, Bessemer Venture Partners, Foundry Group, SoftTech VC

11/30/16 Opendoor $210Operator of a technology-enabled residential

real estate company.

Access Industries, Caffeinated Capital, Felicis Ventures, Fifth Wall Ventures Management, GGV Capital, Khosla

Ventures, Lakestar, NEA, Norwest Venture Partners, SVB Capital

11/30/16 Clue $20Developer of a mobile application for tracking

female health.Fabrice Grinda, Mosaic Ventures, Nokia Growth Partners, Union Square Ventures

11/30/16 Civis Analytics $22 Provider of a data science platform. Drive Capital, Verizon Ventures, WPP

11/29/16 SonarSource $45Provider of products for code quality of

applications.Insight Venture Partners

11/29/16 iXiGO $20Provider of a mobile travel search and planning

website.Sequoia Capital India

11/28/16 QuantGroup $73Provider of online financial services including

credit-based consumption and IOUs.Guoxin Hongsheng Venture Capital, Sunshine Insurance Group

11/28/16 AvidXchange $28Provider of accounts payable and on-demand

invoice management services.HarbourVest Partners, Huff Capital, Pivot Investment Partners

11/25/16 Stripe $150 Provider of an online payment platform. CapitalG, General Catalyst Partners, GV, Sequoia Capital

11/23/16 Wynd $33 Provider of restaurant management software. Bpifrance, Orange Digital Ventures

11/23/16 Palantir Technologies $20Developer of software application for

integrating, visualizing and analyzing information.NA

11/23/16 NS1 $23Developer of website traffic management

technologies.

Deutsche Telekom Capital Partners, Flybridge Capital Partners, Sigma Prime Ventures, Telstra Ventures, Two Sigma

Ventures

21



($MM)



11/23/16 Knowlarity $20 Provider of cloud telephony and other programs. Delta Partners Group, Mayfield, Sequoia Capital India

11/22/16 Zola $25Provider of a wedding registry and planning

platform.Lightspeed Venture Partners

11/22/16 Helpshift $25 Provider of customer engagement services. Cisco Investments, Intel Capital, Nexus Venture Partners, Salesforce Ventures, True Ventures, Visionnaire Ventures

11/22/16 8i $20Developer of virtual reality technology to bring

virtual experiences to life.NA

11/21/16 Yixia $500 Developer of video blogging applications. Shanghai Media Group, Sina Weibo, WePiao

11/21/16 Getui $58 Developer of push notification software. Haitong Securities, China Minsheng Bank, SAIF Partners, WI Harper Group

11/21/16 China Rapid Finance $30Developer and provider of consumer credit

management platform in China.China Rapid Finance

11/18/16 Sparkcentral $20

Provider of business to business application for

companies to communicate with their customers

through social media.

Group MC, Jackson Square Ventures, Split Rock Partners

11/18/16 Joya Communications $20Provider of mobile video communication

applications.Benchmark Capital, Matrix Partners, StartX

11/18/16 AdvisorEngine $20Provider of an online wealth management

platform.WisdomTree Investments

11/17/16 Prevalent $60Provider of risk management and cyber threat

monitoring services.Insight Venture Partners

11/17/16Handshake (Career Management

Platform)$20 Provider of an online recruiting platform.

Annox Capital, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, Lowercase Capital, Spark Capital,

True Ventures

11/16/16 Zwift $27Provider of interactive fitness entertainment

platform.Max Levchin, Novator Partners, Samchuly Bicycle, Shasta Ventures, Waypoint

11/16/16 OfferUp $130 Provider of an online shopping platform.Altimeter Capital Management, Andreessen Horowitz, Coatue Management, GGV Capital, Max Levchin, T. Rowe

Price, Vy Capital, Warburg Pincus

11/16/16 Mofangge $22 Developer of an online education platform. NA

11/15/16 Sauce Labs $70Developer of a cloud-based mobile and web-

testing platform.Adams Street Partners, Centerview Capital Technology, IVP

11/15/16 Mavenlink $39Provider of an online project management and

resource planning software.The Goldman Sachs Group

22



($MM)



11/15/16 Womply $30 Provider of an e-commerce platform. Sageview Capital

11/15/16 MacroPoint $44 Provider of load tracking software. Susquehanna Growth Equity

11/14/16 xAd $43 Provider of a location-based marketing platform. Emergence Capital Partners, Eminence Capital, IVP, W Capital Partners

11/14/16 Nutmeg $37 Operator of digital wealth management services.Armada Investment, Balderton Capital, Convoy Global Holdings, Draper Associates, eFolio, NKM Capital, Pentech

Ventures, Schroders

11/14/16 CompareAsiaGroup $25 Provider of a financial comparison platform. International Finance Corporation

11/10/16 RiskIQ $31

Provider of website security, mobile application

security and anti-malvertising services beyond

the firewall.

Battery Ventures, Georgian Partners, MassMutual Ventures, Summit Partners

11/10/16 JobToday $20Provider of an online platform for job search on

mobile.Accel Partners, Channel Four Television, Felix Capital, Flint Capital, German Media Pool, Mangrove Capital Partners

11/10/16 Glint $37Provider of a real-time employee engagement

platform.Bessemer Venture Partners, Meritech Capital Partners, Norwest Venture Partners, Shasta Ventures

11/9/16 EverQuote $31Provider of a comparison-shopping site for auto

insurance.Oceanic Partners, Savano Capital Partners, Stratim Capital, T Capital Partners

11/7/16 Treasure Data $24Provider of a cloud-based data analytics

platform.

AME Cloud Ventures, Dentsu, Innovation Network Corporation of Japan, IT-Farm Corporation, SBI Holdings, Scale

Venture Partners, Sierra Ventures, William Tai

11/3/16 Catchpoint $23Provider of a technology platform for Web

performance monitoring and analytics.Battery Ventures, Sapphire Ventures

11/3/16 Apartment List $30 Provider of an online rental marketplace. Canaan Partners, Glynn Capital Management, Matrix Partners

11/3/16 Real Matters $31Provider of property information services to

residential and commercial properties.BMO Capital Markets

11/2/16 Neo Technology $36 Developer of an open-source graph database. Creandum, Eight Roads Ventures, Sunstone Capital

11/2/16 Big Viking Games $22Developer of free-to-play mobile and social

games.BDC Capital, Export Development Canada, Royal Bank of Canada

11/2/16 Atlas (Search Engine) $21 Provider of an online personal search engine. Aspect Venture Partners, Microsoft

11/1/16 Voyager Labs $100 Provider of big data analysis services. Horizons Ventures

23

SOFTWARE CAPITAL MARKETS UPDATE Recent Software IPO Pricings

Notes:

Source: Capital IQ and Dealogic.

Market Data as of 01/06/2017.

(1) First Trading Day listed as Offer Date.

($ MM)

Offer Date (1) Market Cap @

IPO Date

Amount

Raised Original Filing Range Offer Price

% Change

Offer /

Midpoint Price

% Change

1st Trading Day /

Offer Price

% Change Current

/ Offer Price

28-Oct-16 $1,169 $146 13.00 - 15.00 $17.00 21.4% 40.5% 59.8%

6-Oct-16 $1,601 $133 14.00 - 16.00 $18.00 20.0% 84.9% 34.1%

30-Sep-16 $5,079 $238 11.00 - 13.00 $16.00 33.3% 131.3% 73.2%

23-Sep-16 $841 $96 13.00 - 15.00 $16.00 14.3% 40.9% 11.8%

22-Sep-16 $453 $87 10.50 - 12.50 $13.00 13.0% 21.2% (14.9%)

16-Sep-16 $411 $90 11.00 - 13.00 $12.00 0.0% 27.1% 60.9%

Name

24

IPO PIPELINE Software IPOs in Public Registration

Notes: Source: Pitchbook and SEC.gov. Offering amounts $10MM or greater. (1) LTM as of 10/31/2016. (2) LTM as of 9/30/2016. (3) Figures represent 9 months ended 9/30/2016. (4) On 12/06/2016, KKR announced that it would acquire a majority stake in Optiv Security.

($MM)

Primary Initial Initial Offering LTM

Issuer Industry Filing Date Amount Description Revenue EBITDA

Internet and

Software Services12/28/16 $100

Provides an integrated suite of software application and

IT infrastructure monitoring and analytics products$206 ($105)

Other IT Services

Communication

Software

11/22/16 $100 Provider of professional and managed services for

advanced IT solutions$2,761 $210

Systems and

Information

Management

11/18/16 $100 Provider of information security and compliance

management services to enterprise clients$644 $61

(2)

(3)(4)

(1)

25

195

161

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(12)

6

11

717

1617

11

9

150

160

170

180

190

200

210 PE Acquisitions Strategic Acquisitions IPO

Strategic and Private Equity Exits Outweigh New Issues

A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIES

Notes: Sources: Capital IQ, company filings. Market Data as of 01/06/2017.

2008 2009 2010 2011 2015 2012 2013 2014 2016YTD

Fortinet CDC Software

LogMeIn Medidata

SolarWinds Rosetta Stone SciQuest

RealPage IntraLinks Envestnet

Qlik BroadSoft

Higher One Convio

SPS Commerce SS&C

QuinStreet

Jive Imperva

Carbonite Tangoe

Responsys Cornerstone

Epocrates

Workday Fleetmatics

Qualys Eloqua E2open

ServiceNow Exa

Incadea Infloblox

Proofpoint Splunk

ExactTarget Demandware Bazaarvoice Greenway

AVG Guidewire

Mavenir Barracuda Wix.com Covisint

RingCentral FireEye Cvent

Gigamon Textura

ChannelAdvisor Marketo Tableau Halogen

Rally Marin

Model N

Workiva Hortonworks

New Relic HubSpot CyberArk

MobileIron Kinaxis

Zendesk Paycom

OPOWER Five9

2U Borderfree

Amber Road A10 Networks

Paylocity Varonis Systems

Atlassian Mimecast

Instructure Rapid7 Sophos

AppFolio Alarm.Com

Xactly Shopify Apigee

Box

Twilio SecureWorks

Talend Everbridge

Apptio Gridsum Holding

Nutanix Coupa

BlackLine, Inc.

2009 2010 2011 2012 2013 2014 2015 2016YTD

PE 5 4 6 9 6 7 8 9

Strategic 7 11 8 11 9 6 10 12

IPO 6 11 7 17 16 17 11 9

26

VENTURE CAPITAL INDUSTRY TMT Transactions Since Q3 2001

Notes: (1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of: Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and

Equipment, Semiconductors, Software and Telecommunications.

(1)

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

Q3 2001 Q3 2002 Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount(1)

27

GCA OVERVIEW Deep Software Sector Expertise

Acquired by

We Advised the Seller


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by

Fairness Opinion to Buddy Media

Acquired by


Acquired by


Acquired by


Acquired by


Acquired by Acquired by


Acquired by

We Advised the Seller We Advised the Seller

Acquired by

We Advised the Buyer

Acquisition of


Acquired by


Acquisition of Strategic Advisory Services

Financial Advisor


Acquired by Acquired by

Acquired by


Acquisition of



Acquired by


Acquired by


Preferred Stock

Financial Advisor

Acquisition of

We Advised the Buyer We Advised the Seller

Investment by


Acquired by Preferred Stock

Financial Advisor

Acquired by


Acquired by


Financial Advisor

Preferred Stock

Notes: The above transactions represents a compilation of past and current deals that GCA entities 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.

Convertible Note Offering

Financial Advisor

28

GCA OVERVIEW Software Team

San Francisco

One Maritime Plaza, 25th Fl. San Francisco, CA 94111

United States Phone: (415) 318-3600

New York

640 Fifth Avenue, 10th

Fl. New York, NY 10019

United States Phone: (212) 999-7090

Tokyo

11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230

Japan Phone: +81 (3) 6212-7100

London

1 Southampton St. London WC2R0LR United Kingdom

Phone:+44 20 7484 4040

*Adrian Reed is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Sascha Pfeiffer is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Raiko Stelten is a Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Akikazu Ida is a Managing Director at GCA Corporation.

Todd Carter Clark Callander Seihun Kong Paul DiNardo Sascha Pfeiffer* Akikazu Ida* Co-President and CEO Co-Head of Investment Banking Managing Director Advisory Director Managing Director Managing Director

Phone: (415) 318-3610 Phone: (415) 318-3680 Phone: (415) 318-3682 Phone: (212) 999-7097 Phone: +49 (69) 204-34-6410 Phone: +81 (3) 6212-7241

Mobile: (415) 314-9898 Mobile: (415) 515-2468 Mobile: (415) 823-7300 Mobile: (650) 483-7246 Mobile: +49 (0) 177-74-15643 Mobile: +81 (80) 9027-3023

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Adrian Reed* James Orozco Chris Gough Dan Etchevers Raiko Stelten* Gautam GargManaging Director Managing Director Managing Director Director Director Vice President

Phone: +44 845 505 4314 Phone: (415) 318-3667 Phone: (415) 318-3658 Phone: (415) 318-3644 Phone: +49 (69) 204 34 6418 Phone: (415) 318-3692

Mobile: +44 7887 626 800 Mobile: (415) 722-0922 Mobile: (415) 385-9427 Mobile: (415) 572-3549 Mobile: +49 171 335 0879 Mobile: (650) 504-1722

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Documents

Software Sector Summary Report - GCA Advisors4 TRADING COMPARABLES Valuation Metrics EV / 2016E Revenue2.0x EV / 2016E EBITDA Notes: Source: Capital IQ. Market Data as of 01/06/2017