Software Sector Summary Report - GCA Altium · 4) Software M&A transactions reflect select transactions in 2018 YTD. M&A metrics are based on closed and announced transactions. 5)

SOFTWARESECTOR REPORTJuly 2018

22

DEAL DASHBOARD

Notes:Sources: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 8/14/2018.1) 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) Criteria based on select software sectors such as infrastructure and application software, excluding security software.4) Software M&A transactions reflect select transactions in 2018 YTD. M&A metrics are based on closed and announced transactions.5) 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. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM.

Software

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

$Bn $Bn

Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4)

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

$600 $18,900

$300 $2,600

$250 $2,535

$200 $2,000

$200 $1,450

$160 $1,400

$140 $600

$124 $500

Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6)

`

YTD 2018 Financing Volume (1)(2)

$29.3 BillionYTD 2018 M&A Transactions (3)

621YTD 2018 M&A Volume (3)YTD 2018 Financing Transactions (1)(2

321 $51.9 Billion

17%

40%

(5.0%)

5.0%

15.0%

25.0%

35.0%

45.0%

Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18

SPX IGV

94123

156 160 159 161 154 167

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

$5 $6

$14$12 $11 $12

$15 $14

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

$35

$13 $13 $12

$20$13

$19

$32

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

315

250289 264 291 268

298 323

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

3.9x 3.1x

4.2x 3.6x 3.9x

4.6x

3.3x

6.4x

4.6x 3.9x

5.3x

4.3x 3.7x

4.9x

3.7x

7.2x

2.7x 2.2x

2.9x 2.9x

4.1x 4.1x

2.8x

5.0x

0

1

2

3

4

5

6

7

8

2011 2012 2013 2014 2015 2016 2017 2018

All Buyers Strategic Buyers PE Buyers

33

GCA OVERVIEWThe GCA Software Team

US Team

Clark CallanderManaging Director

[email protected]

Todd CarterCo-President & [email protected]

Executive Leadership Select Europe Team Select Asia Team

***Ryuichi KanemakiManaging [email protected]

Tomohiko KubotaRepresentative Director at

GCA [email protected]

***Akikazu IdaCo-Head of Asian

Technology & [email protected]

Glen KrugerDirector

Commerce [email protected]

Sean MinnihanManaging Director

FinTech & Financial [email protected]

Derek BellManaging DirectorBusiness [email protected]

JT HermanManaging Director

Industrial [email protected]

James OrozcoManaging DirectorFinancial [email protected]

Paul DiNardoManaging Director

[email protected]

John LambrosPresident of GCA US

Head of New York OfficeHead of Digital [email protected]

Alex VitaleHead of San Francisco Office

Auto [email protected]

**Sascha PfeifferCo-Head of European Technology & Media

[email protected]

*Adrian ReedManaging Director

[email protected]

*Stephen GeorgiadisManaging Director

[email protected]

**Raiko SteltenDirector

[email protected]

*Phil AdamsCEO of GCA Altium

[email protected]

**Tobias SchultheissManaging Director

[email protected]

Sameer JindalManaging Director

Head of Indian [email protected]

Daniel AvrutskyManaging Director

HCM [email protected]

Chris GoughManaging Director

Real Estate [email protected]

Arthur KirschManaging Director

Healthcare [email protected]

Josh WepmanManaging Director

Software & Digital [email protected]

Rupert SadlerManaging Director

Software, Travel & [email protected]

Geoff BaldwinCo-President & CEO

[email protected]

*Adrian Reed, Phil Adams and Stephen Georgiadis are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation.**Raiko Stelten, Sascha Pfeiffer and Tobias Schultheiss are Managing Directors at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation.***Akikazu Ida and Ryuichi Kanemaki are Managing Directors at GCA Corporation.

44

Deep Software Sector ExpertiseGCA 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.

We Advised the Seller

Acquired by


Acquired by


Acquired byAcquisition of

We Advised the BuyerWe Advised the Seller

Acquired by

Fairness Opinion to Buddy Media

Acquired by

Acquired by

We Advised the Seller We Advised the Seller

Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired byAcquired by


Acquired by


Acquired by

Acquired by


Acquired byAcquired by


Acquired by

We Advised the Buyer

Acquisition ofAcquisition of

We Advised the BuyerFinancial Advisor

Investment fromConvertible NoteOffering

Financial Advisor

StrategicAdvisoryServices

Financial Advisor

Acquired by

We Advised the SellerWe Advised the Seller

Acquired byAcquisition of



Acquired by Acquired by



Acquired by

Acquired by


Acquired by

We Advised the SellerWe Advised the Seller

Acquired by


Acquired by PreferredStock

Financial Advisor

Acquired by

We Advised the SellerFinancial Advisor

PreferredStock

Acquisition of



Acquired by

Acquired by


Acquisition of


Investment from

Financial Advisor

Acquired by


Acquired by


Acquired by


Acquired by


Acquired by

We Advised the SellerFinancial Advisor

Preferred Investment

From

55

Index PerformanceRECENT STOCK PERFORMANCE

Last 12 Months Last 3 Years

Notes:Sources: Capital IQ. Market Data as of 8/14/2018.Platform: ADBE, IBM, MSFT, ORCL, SAP.Security: 4704, ABT, CBLK, CHKP, CYBR, FEYE, FSC1V, FTNT, IMPV, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, TENB, ZIXI, ZS.Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, DAVA, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW.SaaS / On Demand: AMBR, APPN, APTI, AVLR, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CARB, CLDR, COUP, CRM, CSLT, CSOD, DBX, DOCU, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, NEWR, NOW, OKTA,OPRA, PAYC, PCTY, PCYG, PVTL, QLYS, RNG, RP, SEND, SHOP, SMAR, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN, ZUO.BI & Analytics: ATTU, AYX, CDAY, CDLX, CLDR, DATA, DOMO, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT.Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV.

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18

(50%)

(30%)

(10%)

10%

30%

50%

70%

90%

110%

130%

Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18

Sector 3 Months 1 Year 3 Years

Platform 7.6% 30.7% 80.3%Security 3.8% 28.8% 25.9%Infrastructure 4.1% 51.6% 66.8%SaaS / On Demand 11.0% 58.7% 116.3%BI & Analytics 6.5% 48.4% 23.1%Vertical 7.8% 19.8% 38.0%

66

Valuation and Operational MetricsTRADING COMPARABLES

Notes:Sources: Capital IQ. Market Data as of 8/14/2018.Figures represent mean values of respective comp groups.Platform: ADBE, IBM, MSFT, ORCL, SAP.Security: 4704, ABT, CBLK, CHKP, CYBR, FEYE, FSC1V, FTNT, IMPV, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, TENB, ZIXI, ZS.Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, DAVA, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW.SaaS / On Demand: AMBR, APPN, APTI, AVLR, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CARB, CLDR, COUP, CRM, CSLT, CSOD, DBX, DOCU, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, NEWR, NOW, OKTA,OPRA, PAYC, PCTY, PCYG, PVTL, QLYS, RNG, RP, SEND, SHOP, SMAR, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN, ZUO.BI & Analytics: ATTU, AYX, CDAY, CDLX, CLDR, DATA, DOMO, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT.Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV.

EV / 2018E Revenue EV / 2018E EBITDA

2018E / 2017A Revenue Growth 2018E EBITDA Margin

7.3x

5.7x 5.7x 5.3x5.2x

4.3x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

SaaS Platform Infrastructure Vertical Security BI & Analytics

Median: 5.5x 39.6x

30.2x28.7x

24.9x

21.2x

14.2x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

45.0x

SaaS Infrastructure Security BI & Analytics Vertical Platform

Median: 26.8x

20.5% 20.3%

14.9% 14.8% 12.4%

8.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

SaaS BI & Analytics Security Vertical Infrastructure Platform

Median: 14.9%

38.7%

25.9% 25.0% 21.4%

19.4% 17.1%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%

Platform Vertical Infrastructure Security SaaS BI & Analytics

Median: 23.2%

77

Software Trading StatisticsPUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 8/14/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating MetricsPrice Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

8/14/2018 Value Debt Value CY 17A CY 18E CY 19E CY 17A CY 18E CY 19E CY 17A CY 18E CY 19E 17A/16A 18E/17A 19E/18E CY 17A CY 18E CY 19E

Platform

Microsoft Corporation $109.56 $840,130 ($46,161) $793,969 6.8x 6.2x 5.6x 16.3x 14.6x 12.7x 26.6x 24.0x 20.8x 22.3% 10.0% 10.9% 41.5% 42.1% 43.8%

Oracle Corporation $48.23 $192,011 ($6,484) $185,527 4.6 4.5 4.4 9.9 9.5 9.2 14.6 13.8 13.2 3.2% 3.6% 2.5% 46.7% 46.9% 47.4%

SAP SE $114.16 $136,264 $3,225 $139,489 5.0 4.6 4.3 15.0 13.6 12.2 23.1 20.5 18.4 (1.0%) 8.0% 8.2% 33.3% 34.0% 35.0%

International Business Machines Corporation $143.36 $130,854 $33,874 $164,728 2.1 2.1 2.0 8.5 8.3 8.3 10.4 10.2 9.9 1.5% (0.2%) 0.5% 24.1% 24.9% 24.6%

Adobe Systems Incorporated $256.05 $125,378 ($4,450) $120,928 13.5 11.4 9.8 30.4 24.9 21.1 37.9 33.3 27.4 22.4% 18.8% 16.6% 44.5% 45.8% 46.2%

Mean 6.4x 5.7x 5.2x 16.0x 14.2x 12.7x 22.5x 20.4x 18.0x 9.7% 8.0% 7.7% 38.0% 38.7% 39.4%

Median 5.0 4.6 4.4 15.0 13.6 12.2 23.1 20.5 18.4 3.2% 8.0% 8.2% 41.5% 42.1% 43.8%

Infrastructure

VMware, Inc. $152.25 $61,945 ($8,394) $53,551 6.1x 5.6x 5.2x 15.7x 15.2x 12.7x 25.2x 22.9x 20.8x 10.9% 8.2% 8.3% 38.8% 37.0% 40.9%

ServiceNow, Inc. $184.49 $32,829 ($893) $31,937 12.3 9.5 7.5 48.0 34.5 25.5 79.4 58.9 44.3 34.7% 28.8% 26.9% 25.6% 27.6% 29.4%

Red Hat, Inc. $143.53 $25,458 ($1,348) $24,110 7.4 6.4 5.6 27.6 22.7 21.0 42.7 37.1 32.1 17.9% 15.6% 13.2% 26.7% 28.0% 26.8%

CA, Inc. $43.63 $18,245 ($409) $17,836 4.2 4.1 NA 11.0 10.7 NA 15.7 15.4 NA 2.1% 1.5% NA 38.1% 38.5% NA

Atlassian Corporation Plc $78.71 $18,419 ($914) $17,505 17.4 13.5 10.7 63.5 49.1 NA NM 93.7 73.9 36.0% 28.8% 25.8% 27.4% 27.5% NA

Citrix Systems, Inc. $111.71 $15,154 $638 $15,793 5.4 5.2 4.9 15.8 15.3 15.9 20.7 18.7 16.5 4.2% 3.6% 5.9% 34.0% 33.8% 30.8%

Splunk Inc. $105.79 $15,340 ($878) $14,461 8.8 7.0 5.6 60.4 42.6 31.4 NM 69.2 47.7 29.6% 24.8% 25.0% 14.5% 16.5% 17.9%

Micro Focus International plc $15.55 $6,786 $4,337 $11,123 2.8 3.1 3.4 7.9 8.0 7.6 16.4 7.4 NA 53.1% (8.9%) (7.7%) 35.8% 38.7% 44.5%

F5 Networks, Inc. $181.55 $11,042 ($1,085) $9,957 4.6 4.4 4.3 11.8 11.0 NA 18.4 17.0 16.5 4.1% 3.1% 2.7% 38.5% 40.1% NA

Nutanix, Inc. $56.00 $9,558 ($501) $9,057 7.4 6.0 4.4 NM 75.2 NA NM NM NM 29.5% 23.7% 37.4% NM 8.0% NA

New Relic, Inc. $104.99 $5,933 ($330) $5,603 12.8 10.2 8.2 NM 84.1 60.5 NM NM 99.2 32.2% 26.0% 24.6% 12.8% 12.1% 13.5%

Pure Storage, Inc. $22.77 $5,257 ($668) $4,590 3.4 2.7 2.3 38.3 22.3 17.7 NM 55.7 39.0 32.8% 26.1% 17.3% 8.8% 12.0% 12.9%

LogMeIn, Inc. $79.70 $4,134 $1 $4,135 3.5 3.2 3.1 9.5 8.7 8.0 15.3 13.7 12.3 20.3% 7.0% 5.8% 36.7% 37.4% 38.3%

Software Aktiengesellschaft $48.10 $3,558 ($92) $3,466 3.5 3.4 3.2 11.3 10.9 10.2 16.8 15.9 15.0 (6.1%) 4.2% 4.3% 30.8% 30.9% 31.7%

Commvault Systems, Inc. $65.90 $3,014 ($462) $2,552 3.5 3.2 3.0 23.0 17.9 14.6 44.5 34.5 27.1 6.6% 9.2% 7.3% 15.1% 17.9% 20.4%

NetScout Systems, Inc. $26.05 $2,098 $141 $2,239 2.4 2.3 2.2 13.4 9.6 NA 23.7 16.5 12.6 (12.7%) 6.4% 3.2% 17.9% 23.4% NA

Altair Engineering Inc. $39.66 $2,773 ($198) $2,574 6.7 6.0 5.3 74.2 48.0 34.3 NM 79.9 56.1 14.5% 12.6% 13.2% 9.1% 12.5% 15.4%

SailPoint Technologies Holdings, Inc. $28.86 $2,529 ($72) $2,457 10.5 8.5 6.9 NM 88.6 66.2 NM NM 98.0 26.2% 22.5% 23.5% 9.0% 9.6% 10.4%

Appian Corporation $35.86 $2,214 ($50) $2,163 10.1 8.8 7.5 NM NM NM NM NM NM 21.3% 14.8% 17.6% NM NM NM

Progress Software Corporation $39.15 $1,762 ($25) $1,737 4.3 4.3 4.1 10.3 10.6 11.9 15.7 15.4 13.4 1.6% 0.8% 4.7% 41.6% 40.3% 34.2%

Endava plc $30.43 $1,613 $20 $1,633 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

A10 Networks, Inc. $6.67 $472 ($124) $348 1.4 1.4 NA 30.0 18.9 NA NM NA NA NA 1.2% NA 4.8% 7.5% NA

Mean 6.6x 5.7x 5.1x 27.8x 30.2x 24.1x 27.9x 35.8x 39.0x 17.9% 12.4% 13.6% 24.5% 25.0% 26.2%

Median 5.4 5.2 4.9 15.8 18.4 16.8 19.6 20.8 29.6 19.1% 9.2% 13.2% 26.7% 27.5% 28.1%

88






Security

Palo Alto Networks, Inc. $210.80 $19,579 ($1,077) $18,502 7.5x 6.3x 5.4x 29.2x 23.5x 18.1x 48.3x 39.5x 32.3x 24.7% 18.2% 17.9% 25.5% 26.8% 29.5%

Check Point Software Technologies Ltd. $114.25 $17,847 ($1,682) $16,166 8.5 8.2 7.8 15.8 15.2 14.7 20.1 18.6 16.9 2.5% 4.1% 4.5% 53.8% 53.6% 53.2%

Symantec Corporation $18.66 $11,598 $2,707 $14,305 3.0 2.9 2.9 7.0 6.8 6.2 12.3 10.9 10.5 (0.2%) 3.4% 2.6% 43.1% 43.0% 46.3%

Splunk Inc. $105.79 $15,340 ($878) $14,461 8.8 7.0 5.6 60.4 42.6 31.4 NM 69.2 47.7 29.6% 24.8% 25.0% 14.5% 16.5% 17.9%

Fortinet, Inc. $76.35 $12,914 ($1,434) $11,480 6.4 5.7 5.1 26.2 21.6 18.3 45.8 39.9 34.8 19.3% 13.8% 11.2% 24.5% 26.2% 27.8%

Trend Micro Incorporated $60.44 $8,319 ($1,300) $7,019 4.8 4.5 4.2 14.4 13.4 12.5 32.2 28.9 26.2 10.5% 7.1% 6.0% 33.5% 33.5% 33.8%

Proofpoint, Inc. $116.97 $5,997 $70 $6,067 8.6 6.7 5.3 60.1 42.7 29.5 99.8 68.8 44.7 37.4% 28.0% 27.0% 14.3% 15.7% 17.9%

Zscaler, Inc. $37.52 $4,488 ($287) $4,200 19.8 15.0 11.8 NM NM NA NM NM NM 37.5% 32.2% 26.7% NM NM NA

Qualys, Inc. $85.70 $3,342 ($323) $3,020 10.8 9.1 7.6 28.9 24.4 18.8 57.5 48.7 39.2 20.7% 18.6% 19.7% 37.5% 37.4% 40.5%

FireEye, Inc. $14.65 $2,808 ($136) $2,672 3.2 3.0 2.8 25.7 24.2 19.3 NM 92.2 53.2 10.1% 7.3% 6.2% 12.6% 12.4% 14.7%

Tenable Holdings, Inc. $33.00 $3,060 ($23) $3,036 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Mimecast Limited $38.83 $2,319 ($77) $2,242 7.1 5.9 4.7 55.8 36.6 23.6 NM NM 65.3 31.7% 20.0% 24.3% 12.7% 16.1% 20.1%

CyberArk Software Ltd. $70.92 $2,557 ($353) $2,204 6.8 5.8 4.8 29.4 24.3 20.2 48.3 41.2 34.4 23.4% 18.5% 18.8% 23.3% 23.7% 24.0%

Carbon Black, Inc. $23.28 $1,579 ($178) $1,401 6.8 5.5 4.4 NM NM NM NM NM NM 27.8% 22.7% 24.3% NM NM NM

Rapid7, Inc. $32.19 $1,505 ($115) $1,390 5.8 4.9 4.0 NM NM 50.2 NM NM NM 18.9% 19.6% 21.4% NM 3.3% 8.0%

Imperva, Inc. $45.60 $1,596 ($394) $1,201 3.4 3.1 2.8 28.0 22.9 17.9 NM 48.2 38.4 9.1% 11.4% 10.5% 12.2% 13.4% 15.5%

SecureWorks Corp. $13.01 $1,063 ($76) $987 1.9 1.7 1.6 NM 85.0 32.8 NM NM 49.7 10.5% 9.8% 9.5% NM 2.0% 4.8%

F-Secure Oyj $3.86 $608 ($93) $515 2.3 2.0 1.8 34.2 19.3 15.0 NM 44.8 30.9 8.7% 17.3% 9.4% 6.8% 10.3% 12.1%

MobileIron, Inc. $5.05 $519 ($98) $421 2.2 2.0 1.9 NM 60.7 36.3 NM NM 72.1 9.9% 9.9% 4.8% NM 3.3% 5.2%

Zix Corporation $5.46 $296 ($18) $278 4.0 3.7 NA 14.3 11.4 NA 17.6 15.6 NA 6.4% 6.4% NA 27.9% 32.7% NA

Absolute Software Corporation $5.92 $238 ($34) $204 2.1 2.0 1.9 18.4 13.4 9.3 42.8 39.5 21.6 3.5% 5.8% 8.3% 11.6% 15.1% 20.0%

Mean 6.2x 5.2x 4.6x 29.9x 28.7x 22.0x 42.5x 43.3x 38.6x 17.1% 14.9% 14.6% 23.6% 21.4% 23.0%

Median 6.1 5.2 4.4 28.0 23.5 18.8 44.3 40.5 36.6 14.7% 15.5% 11.2% 23.3% 16.3% 20.0%

99






SaaS

salesforce.com, inc. $146.57 $108,888 ($3,171) $105,717 8.1x 6.7x 5.6x 35.4x 28.5x 22.9x 63.4x 54.0x 41.9x 25.3% 20.3% 18.7% 22.8% 23.5% 24.7%

ServiceNow, Inc. $184.49 $32,829 ($893) $31,937 12.3 9.5 7.5 48.0 34.5 25.5 79.4 58.9 44.3 34.7% 28.8% 26.9% 25.6% 27.6% 29.4%

Workday, Inc. $137.40 $29,678 ($1,856) $27,822 10.3 8.4 6.9 55.1 40.8 31.0 NM 82.6 63.1 26.0% 22.7% 22.4% 18.7% 20.6% 22.1%

Shopify Inc. $144.38 $15,369 ($1,574) $13,795 13.4 9.7 7.4 NM NM 69.4 NM NM NM 53.3% 38.3% 30.5% 3.3% 6.2% 10.7%

Dropbox, Inc. $28.97 $11,655 ($814) $10,841 7.9 6.8 6.0 36.2 30.9 25.7 91.2 69.5 51.7 24.1% 15.8% 14.4% 21.8% 22.0% 23.2%

Veeva Systems Inc. $84.98 $12,189 ($918) $11,271 13.6 11.6 9.9 40.7 34.3 27.6 62.1 53.3 44.8 21.0% 17.6% 16.9% 33.4% 33.7% 35.8%

DocuSign, Inc. $57.85 $9,058 ($269) $8,789 13.4 11.1 9.3 NM NM 64.3 NM NM NM 26.5% 20.4% 19.2% 5.1% 9.1% 14.5%

The Ultimate Software Group, Inc. $288.60 $8,996 ($175) $8,820 7.8 6.5 5.6 32.2 26.1 21.5 52.8 44.1 37.2 20.9% 18.8% 17.6% 24.1% 25.0% 25.8%

Paycom Software, Inc. $137.90 $8,084 ($19) $8,065 14.5 11.8 9.8 34.6 28.4 23.4 52.7 43.3 35.9 28.3% 23.2% 20.7% 41.9% 41.5% 41.7%

Aspen Technology, Inc. $108.29 $7,709 $74 $7,783 15.9 13.8 NA 33.2 27.7 NA 43.8 34.4 NA (0.1%) 15.0% NA 47.8% 49.9% NA

Zendesk, Inc. $63.78 $6,758 ($238) $6,520 11.1 8.6 6.6 NM 90.1 54.9 NM NM 84.5 36.0% 29.9% 29.3% 6.8% 9.5% 12.1%

RingCentral, Inc. $89.60 $7,134 ($207) $6,927 10.6 8.6 7.0 90.7 68.4 51.2 NM NM 79.8 30.3% 23.2% 23.0% 11.7% 12.6% 13.7%

Okta, Inc. $55.56 $5,923 ($287) $5,636 15.8 12.0 9.2 NM NM NM NM NM NM 37.4% 31.9% 30.1% NM NM 4.0%

Pivotal Software, Inc. $24.23 $6,231 ($645) $5,586 8.6 6.9 5.6 NM NM NM NM NM NM 26.9% 24.3% 24.9% NM NM 5.3%

New Relic, Inc. $104.99 $5,933 ($330) $5,603 12.8 10.2 8.2 NM 84.1 60.5 NM NM 99.2 32.2% 26.0% 24.6% 12.8% 12.1% 13.5%

RealPage, Inc. $59.55 $5,390 $225 $5,615 6.4 5.6 5.1 24.5 19.9 17.0 40.8 34.2 29.1 29.8% 14.6% 10.8% 26.3% 28.3% 29.8%

Blackbaud, Inc. $98.20 $4,647 $451 $5,098 5.8 5.3 4.9 23.8 21.3 20.6 35.5 31.0 28.1 10.8% 9.1% 8.5% 24.6% 25.1% 23.9%

j2 Global, Inc. $82.20 $4,048 $650 $4,698 3.9 3.6 NA 9.6 8.6 NA 13.1 12.0 11.8 8.2% 7.1% NA 40.5% 42.0% NA

HubSpot, Inc. $130.80 $5,074 ($242) $4,832 9.7 7.8 6.4 NM 68.7 50.6 NM NM 79.9 32.7% 24.5% 22.2% 9.4% 11.3% 12.6%

LogMeIn, Inc. $79.70 $4,134 $1 $4,135 3.5 3.2 3.1 9.5 8.7 8.0 15.3 13.7 12.3 20.3% 7.0% 5.8% 36.7% 37.4% 38.3%

2U, Inc. $74.40 $4,272 ($464) $3,808 9.3 7.0 5.2 NM NM 87.6 NM NM NM 43.4% 33.2% 33.2% 4.3% 4.6% 6.0%

Box, Inc. $25.71 $3,610 ($127) $3,483 5.7 4.7 4.2 NM 72.3 43.5 NM NM 91.8 19.8% 21.0% 13.7% 3.1% 6.6% 9.6%

Coupa Software Incorporated $67.65 $3,856 ($264) $3,592 15.2 12.3 9.5 NM NM NM NM NM NM 26.2% 24.1% 29.9% NM 4.5% 8.6%

Paylocity Holding Corporation $67.00 $3,535 ($137) $3,398 8.2 6.8 5.6 34.8 23.7 19.6 46.5 45.6 39.1 23.4% 20.6% 21.6% 23.7% 28.9% 28.7%

Qualys, Inc. $85.70 $3,342 ($323) $3,020 10.8 9.1 7.6 28.9 24.4 18.8 57.5 48.7 39.2 20.7% 18.6% 19.7% 37.5% 37.4% 40.5%

Cornerstone OnDemand, Inc. $52.61 $3,092 ($102) $2,989 5.7 5.3 4.6 35.0 23.5 16.9 75.2 48.2 30.6 8.7% 8.0% 15.4% 16.3% 22.5% 27.0%

Zuora, Inc. $30.57 $3,286 ($187) $3,099 14.0 11.0 8.8 NM NM NM NM NM NM 32.0% 26.9% 24.9% NM NM NM

MongoDB, Inc. $64.22 $3,252 ($271) $2,981 13.6 10.1 7.7 NM NM NM NM NM NM 42.2% 34.3% 30.4% NM NM NM

Avalara, Inc. $36.03 $2,395 ($144) $2,251 8.6 7.3 6.1 NM NM NM NM NM NM 22.3% 18.7% 19.9% NM NM 4.4%

Alteryx, Inc. $55.09 $3,354 ($162) $3,191 16.6 12.4 9.5 NM NM NM NM NM NM 46.5% 33.6% 29.8% NM NM 1.2%

Smartsheet Inc. $26.93 $2,710 ($44) $2,666 16.5 11.9 8.7 NM NM NM NM NM NM 44.9% 39.6% 35.9% NM NM NM

Mimecast Limited $38.83 $2,319 ($77) $2,242 7.1 5.9 4.7 55.8 36.6 23.6 NM NM 65.3 31.7% 20.0% 24.3% 12.7% 16.1% 20.1%

Five9, Inc. $43.45 $2,533 ($68) $2,465 10.0x 8.5x 7.3x 68.7x 51.8x 42.1x NM 79.8x 60.0x 22.9% 17.4% 17.1% 14.6% 16.5% 17.3%

Appian Corporation $35.86 $2,214 ($50) $2,163 10.1 8.8 7.5 NM NM NM NM NM NM 21.3% 14.8% 17.6% NM NM NM

Cloudera, Inc. $13.96 $2,069 ($429) $1,640 3.7 3.1 2.6 NM NM NM NM NM NM 20.2% 19.1% 19.4% NM NM NM

Apptio, Inc. $36.06 $1,607 ($141) $1,466 6.3 5.4 4.6 NM 82.3 48.4 NM NM 83.5 23.3% 16.7% 18.5% 4.2% 6.6% 9.4%

1010






SaaS (Cont'd)

Yext, Inc. $23.93 $2,317 ($124) $2,193 9.7 7.4 5.6 NM NM NM NM NM NM 33.1% 31.7% 30.3% NM NM NM

Opera Limited $12.89 $1,414 ($34) $1,380 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

LivePerson, Inc. $24.05 $1,501 ($70) $1,431 5.8 5.2 4.6 63.6 49.3 36.9 NM NM 85.9 12.6% 11.9% 12.6% 9.1% 10.5% 12.5%

SPS Commerce, Inc. $93.78 $1,639 ($173) $1,466 6.0 5.5 5.0 30.5 25.8 21.7 55.9 51.4 43.6 11.0% 9.4% 9.8% 19.7% 21.2% 23.0%

Carbonite, Inc. $37.65 $1,266 $124 $1,390 4.5 4.0 4.0 14.3 12.2 NA 24.1 20.7 19.8 28.3% 12.2% 2.0% 31.7% 33.1% NA

Benefitfocus, Inc. $36.80 $1,173 $75 $1,249 4.9 4.4 3.8 NM 58.4 34.4 NM NM NM 0.0% 11.6% 14.5% 3.8% 7.5% 11.1%

Instructure, Inc. $37.50 $1,306 ($117) $1,190 5.7 4.6 3.7 NM NM NM NM NM NM 30.7% 25.4% 23.7% NM NM 2.5%

SendGrid, Inc. $32.30 $1,498 ($166) $1,333 9.3 7.4 6.0 72.6 57.9 45.2 NM NM 95.9 28.4% 24.6% 23.1% 12.8% 12.8% 13.4%

Workiva Inc. $31.10 $1,347 ($62) $1,285 5.3 4.7 4.2 NM NM NA NM NM NM 15.8% 12.7% 12.2% NM NM NA

Castlight Health, Inc. $2.95 $406 ($69) $337 2.2 2.1 1.7 NM 31.7 17.4 NM NM 40.7 16.7% 7.2% 17.7% NM 6.5% 10.0%

ChannelAdvisor Corporation $13.70 $374 ($49) $324 2.5 2.3 2.2 39.5 29.2 21.1 NM 79.5 52.7 7.0% 7.1% 6.5% 6.3% 7.9% 10.3%

Brightcove Inc. $7.95 $286 ($27) $258 1.5 1.4 NA NM 30.2 NA NM 75.0 NA 7.4% 8.0% NA 1.3% 4.7% NA

Amber Road, Inc. $8.82 $243 $14 $257 3.0 2.8 NA 79.7 57.7 NA NM NM NA 8.0% 9.1% NA 3.8% 4.8% NA

Park City Group, Inc. $8.25 $163 ($10) $153 6.1 4.7 3.8 24.7 17.2 12.2 39.3 21.7 17.5 23.6% 29.7% 24.0% 24.7% 27.4% 30.9%

Mean 8.8x 7.2x 6.1x 40.9x 39.6x 34.3x 49.9x 47.7x 52.0x 24.4% 20.1% 20.3% 18.4% 19.4% 18.0%

Median 8.6 6.9 5.6 35.0 30.9 25.7 52.7 48.2 44.3 24.1% 20.0% 19.9% 16.3% 16.5% 13.7%

Business Intelligence & Analytics

Splunk Inc. $105.79 $15,340 ($878) $14,461 8.8x 7.0x 5.6x 60.4x 42.6x 31.4x NM 69.2x 47.7x 29.6% 24.8% 25.0% 14.5% 16.5% 17.9%

Tableau Software, Inc. $103.19 $8,559 ($912) $7,647 7.8 6.7 5.5 NM NM 54.6 NM NM NM 11.8% 15.7% 21.9% NM 4.5% 10.1%

Fair Isaac Corporation $216.14 $6,299 $639 $6,938 6.6 6.1 5.6 27.5 22.2 22.2 32.5 27.5 23.4 11.4% 8.3% 8.1% 23.9% 27.4% 25.3%

Ceridian HCM Holding Inc. $34.53 $4,753 $500 $5,253 7.1 6.6 5.8 35.1 29.9 23.7 NM 66.4 42.4 (1.7%) 8.2% 14.2% 20.3% 22.0% 24.3%

Teradata Corporation $40.93 $4,875 ($385) $4,490 2.1 2.0 2.0 13.8 11.5 11.1 33.8 26.2 21.3 (0.5%) 2.4% 2.4% 15.2% 17.7% 18.0%

Verint Systems Inc. $47.80 $3,060 $382 $3,442 2.8 2.6 2.5 11.7 10.4 9.6 15.3 13.8 12.1 8.4% 6.2% 5.5% 23.8% 25.2% 26.0%

Alteryx, Inc. $55.09 $3,354 ($162) $3,191 16.6 12.4 9.5 NM NM NM NM NM NM 46.5% 33.6% 29.8% NM NM 1.2%

Cloudera, Inc. $13.96 $2,069 ($429) $1,640 3.7 3.1 2.6 NM NM NM NM NM NM 20.2% 19.1% 19.4% NM NM NM

Hortonworks, Inc. $22.37 $1,820 ($81) $1,738 5.1 4.2 3.3 NM NM NM NM NM NM 30.6% 21.7% 25.3% NM NM NM

MicroStrategy Incorporated $142.15 $1,630 ($700) $930 1.8 1.8 NA NA NA NA 56.3 54.8 42.2 1.1% 2.6% NA NA NA NA

Domo, Inc. $18.46 $461 $24 $485 3.7 3.0 2.5 NM NM NM NM NM NM 21.1% 21.5% 22.9% NM NM NM

Cardlytics, Inc. $20.24 $431 ($3) $428 2.8 1.8 1.3 NM 44.2 11.6 NM NM 29.1 18.6% 56.3% 36.8% NM 4.0% 11.2%

Attunity Ltd. $19.13 $403 ($33) $370 4.6 3.9 3.2 42.6 34.3 NA 71.4 56.3 NA 28.9% 18.4% 21.8% 10.9% 11.4% NA

Gridsum Holding Inc. $6.21 $191 ($0) $191 1.3 0.9 NA 10.1 3.7 NA 13.2 4.4 NA NA 41.4% NA 13.0% 25.2% NA

Datawatch Corporation $12.95 $165 ($4) $160 3.5 2.8 NA 89.3 NA NA NM 58.5 NA 22.0% 24.0% NA 3.9% NA NA

Mean 5.2x 4.3x 4.1x 36.3x 24.9x 23.4x 37.1x 41.9x 31.2x 17.7% 20.3% 19.4% 15.7% 17.1% 16.7%

Median 3.7 3.1 3.3 31.3 26.0 22.2 33.1 54.8 29.1 19.4% 19.1% 21.9% 14.9% 17.7% 18.0%

1111






Vertical

Cerner Corporation $64.32 $21,162 ($445) $20,717 3.8x 3.5x 3.2x 12.9x 11.7x 10.8x 25.7x 22.9x 20.7x 7.4% 8.2% 9.4% 29.6% 30.1% 29.9%

SS&C Technologies Holdings, Inc. $55.42 $13,195 $6,125 $19,320 5.7 4.6 4.3 17.1 13.2 12.0 22.0 18.2 16.0 102.0% 24.9% 5.2% 33.4% 34.6% 36.1%

Constellation Software Inc. $739.15 $15,664 ($57) $15,607 5.1 4.5 3.9 20.7 17.2 14.4 27.3 23.1 18.8 23.3% 14.2% 14.2% 24.6% 25.9% 27.2%

Veeva Systems Inc. $84.98 $12,189 ($918) $11,271 13.6 11.6 9.9 40.7 34.3 27.6 62.1 53.3 44.8 21.0% 17.6% 16.9% 33.4% 33.7% 35.8%

Guidewire Software, Inc. $97.03 $7,788 ($692) $7,096 10.1 8.5 7.1 51.7 39.0 NA 90.8 69.4 NA 22.4% 18.0% 19.3% 19.4% 21.8% NA

athenahealth, Inc. $149.69 $6,063 $42 $6,104 4.5 4.1 3.7 16.3 14.5 12.6 34.9 30.8 25.7 10.5% 10.3% 10.7% 27.8% 28.2% 29.3%

CoreLogic, Inc. $49.31 $3,991 $1,722 $5,714 3.1 3.0 3.0 11.5 11.0 10.1 17.6 16.5 14.1 0.3% 1.1% 2.3% 26.8% 27.6% 29.4%

RealPage, Inc. $59.55 $5,390 $225 $5,615 6.4 5.6 5.1 24.5 19.9 17.0 40.8 34.2 29.1 29.8% 14.6% 10.8% 26.3% 28.3% 29.8%

Blackbaud, Inc. $98.20 $4,647 $451 $5,098 5.8 5.3 4.9 23.8 21.3 20.6 35.5 31.0 28.1 10.8% 9.1% 8.5% 24.6% 25.1% 23.9%

Medidata Solutions, Inc. $80.06 $4,774 ($25) $4,749 7.4 6.3 5.4 31.4 24.5 19.9 50.3 41.4 33.0 16.9% 18.9% 16.1% 23.7% 25.5% 27.2%

Allscripts Healthcare Solutions, Inc. $13.95 $2,436 $1,511 $3,946 1.8 1.7 1.6 9.3 8.5 8.0 18.3 16.0 14.4 20.1% 4.8% 5.3% 19.5% 20.3% 20.5%

Ellie Mae, Inc. $103.98 $3,602 ($243) $3,359 6.7 5.8 5.0 25.5 19.3 15.6 55.3 42.0 35.4 19.7% 17.0% 16.1% 26.4% 29.8% 31.8%

Inovalon Holdings, Inc. $11.75 $1,794 $886 $2,680 4.7 4.1 3.8 15.8 13.3 11.8 32.9 27.3 21.2 27.0% 13.7% 7.4% 29.8% 31.1% 32.6%

AppFolio, Inc. $77.80 $2,662 ($53) $2,610 14.1 11.4 9.1 58.8 40.7 31.1 89.4 57.6 42.1 28.4% 24.4% 24.3% 24.0% 28.0% 29.4%

Pluralsight, Inc. $30.11 $1,894 ($206) $1,688 7.5 5.7 4.4 NM NM NM NM NM NM 34.2% 31.4% 30.1% NM NM NM

Instructure, Inc. $37.50 $1,306 ($117) $1,190 5.7 4.6 3.7 NM NM NM NM NM NM 30.7% 25.4% 23.7% NM NM 2.5%

HealthStream, Inc. $29.88 $966 ($166) $800 3.5 3.3 3.1 19.9 18.4 NA 84.0 76.6 NA (7.5%) 5.0% 6.4% 17.5% 18.1% NA

Castlight Health, Inc. $2.95 $406 ($69) $337 2.2 2.1 1.7 NM 31.7 17.4 NM NM 40.7 16.7% 7.2% 17.7% NM 6.5% 10.0%

Mean 6.2x 5.3x 4.6x 25.3x 21.2x 16.4x 45.8x 37.4x 27.4x 23.0% 14.8% 13.6% 25.8% 25.9% 26.4%

Median 5.7 4.6 4.1 20.7 18.9 15.0 35.5 31.0 26.9 20.5% 14.4% 12.5% 26.3% 27.8% 29.4%

1212Notes:Source: Capital IQ as of 8/14/2018. Consensus Estimates used for CY2018E figures.MuleSoft excluded from calculations due to pending acquisition by Salesforce.

Ente

rpris

e Va

lue

/ CY

201

8E R

even

ue

CY 2018E Revenue Growth % + CY 2018E FCF Margin %

Valuation Correlation to Growth & Free Cash FlowValuation Correlation to Growth

Ente

rpris

e Va

lue

/ CY

201

8E R

even

ue

CY2018E Revenue Growth

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO GROWTH AND CASH FLOW

AZPN

BLKBBOX

CARB

ECOM

CSOD

FIVN

HUBS

INSTLPSN

MIME

NEWR

PAYC

PCTY

QLYS

RP

RNG

CRM

NOW

SHOP

SPSC

ULTI

VEEV

WDAY

WK

ZEN

TWOU

BNFT

AMBR

JCOM

BCOV

COUP

APTI

MDB

LOGM

YEXT

OKTA

YEXT

APPN

PCYG

SEND

ZS

DBX

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0% 10% 20% 30% 40% 50% 60% 70%

R = 0.50COUP

BLKBBOX

CARB

CSLTECOM

CSOD

FIVNHUBS

INSTLPSN

MIME

NEWR

PAYC

PCTY

QLYS

RP

RNG

CRM

NOW

SPSC

AMBR

ULTI

VEEV

WK

ZENWDAY

ZS

BCOV

BNFT

JCOM

YEXT

OKTA

CLDR

APTI

APPN

LOGM

PCYG

SEND

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0% 5% 10% 15% 20% 25% 30% 35% 40%

R = 0.58

1313

Select Software M&A TransactionsRECENT ACQUISITIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 7/31/2018, where Enterprise Value is >$50MM.Transactions highlighted in yellow denote private equity transactions. Multiples <0 and >100 considered NM.

7/31/18 Application Software $220 8.8x 7.3x NA NA Provides enterprise contract management and document management SaaS for HR on-boarding, contract lifecycle management, and case management.

7/31/18 Application Software $2,000 8.0x 7.4x NA NA Provides real estate property and facility management software for businesses, government agencies and educational institutions. Software provides features for site selection, project and lease management, and business performance analysis.

7/31/18 Security $96 NA NA NA NA Provides real-time, zero-day anti-malware and threat management SaaS for the financial services, healthcare, IT, public, retail, and consumer goods industries.

7/31/18 Application Software $1,450 5.2x NA NA NA Provides buy-side and sell-side trade order management, investment management, and trade execution SaaS for financial institutions and brokerage firms.

7/26/18 Security $140 NA NA NA NA Provides application threat detection and prevention SaaS for business.

7/25/18 Application Software $390 NA NA NA NA Provides CRM SaaS for restaurants and businesses in the hospitality sector and online ordering and payment services for consumers.

7/25/18 Application Software $230 4.5x NA NA NA Provides parcel shipping and tracing management SaaS for retailers, suppliers, and brands in the UK.

7/24/18 Security $100 20.0x NA NA NA Provides network security threat, forensics and triage management, and analytics SaaS and services for enterprises and managed security service providers.

7/20/18 Application Software $2,600 NA NA NA NA Provides investment management and trading, portfolio, and risk management SaaS for font- and middle-office processes for buy-side firms globally.

7/17/18 Application Software $1,400 NA NA NA NA Provides governance, risk and compliance (GRC), analytics reporting and violation hotline management SaaS for businesses, government agencies, educational institutions and non-profit organizations globally.

7/17/18 Application Software $300 NA NA NA NA Provides HR management, including employee case and file management, document management, and related analytics SaaS for businesses globally.

7/11/18 Infrastructure Management $18,900 4.5x NA 12.6x NA Provides systems management software and SaaS for businesses globally. Software features include process automation, data management, IT service and security management, and project and portfolio management.

7/10/18 Security $600 4.8x 4.0x NA NA Provides open-source security information event management (SIEM) and unified security management (USM) SaaS for businesses.

7/10/18 Security $500 3.3x NA NA NA Provides enterprise indentity and access management (IAM) SaaS on desktop, mobile, and virtual environments.

7/9/18 Application Software $325 3.1x NA NA NA Provides employee well-being management SaaS to businesses in the US, Canada, Australia, and the UK.

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

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

1414



7/6/18 Information Management $139 3.5x NA NA NA The Rhapsody business of Orion Health provides data integration software and SaaS for the healthcare sector globally.

7/2/18 Infrastructure Management $2,535 7.9x NA NA NA Provides Linux servers, operating systems, open-source-based servers, storage, and application virtualization software for enterprises.

6/28/18 Application Software $2,534 0.9x 1.0x 7.4x 7.6x Provides contact center management and related IVR software for businesses and government agencies globally. Also provides outsourced customer care services.

6/27/18 Information Management $266 NM NA NA NA The Medicaid management information systems (MMIS) asset of Molina Healthcare, which provides data management and administrative systems for government-sponsored Medicaid programs.

6/19/18 Application Software $1,100 NA NA 27.5x NA Provides geological intelligence and land permit SaaS, for businesses in the oil and gas exploration industry. Also provides oil and gas drilling production volume BI analysis software and related land analysis software.

6/19/18 Infrastructure Management $400 NA NA NA NAProvides integrated payment processing APIs for businesses. Software provides features for payment processing and fund distribution in various currencies. Also provides mass payment processing services including branded prepaid cards, direct to cards, global bank deposits, cash pick-up, virtual prepaid cards and branded check delivery services.

6/12/18 Application Software $290 NA NA NA NAProvides facility maintenance and management SaaS to retailers and multi-site operators. Software provides features for retail maintenance, transaction management, vendor management and research, analytics, reporting and invoice management.

6/12/18 Application Software $195 NA NA NA NA Provides commercial and clinical data analytics SaaS for life sciences customers. Software provides features for data management and integration, records management and reporting.

6/12/18 Application Software $70 10.0x NA NA NA Provides machine learning-based visual data analytics SaaS for the manufacturing and process industry. Software provides features for analyzing, monitoring, predicting and optimizing industrial plant performance.

6/11/18 Infrastructure Management $120 24.0x 12.0x NA NA Provides DevOps incident management, collaboration and documentation SaaS for businesses

6/11/18 Application Software $1,556 13.6x NA NA NA Provides corporate performance management (CPM), budgeting and forecasting, financial analytics and reporting SaaS for businesses.

6/4/18 Infrastructure Management $7,500 NA NA NA NA Provides software project management and team collaboration SaaS for businesses. Also provides related software code hosting services.

6/4/18 Application Software $800 5.3x 4.4x NA NA Provides advertising valuation, verification, fraud detection and advertising placement measurement SaaS for businesses and advertisers. Also provides related business intelligence analytics software.

5/29/18 Application Software $685 NA NA NA NA Provides and develops desktop applications, for registered investment professionals and retail investors.

5/29/18 Infrastructure Management $8,400 3.8x NA 9.3x NA Provides business service management software and SaaS, including IT services, IT systems and operations, datacenter automation, performance, virtualization, application lifecycles, cloud computing and databases.

($MM)



1515



5/23/18 Information Management $49 3.3x NA NA NA Provides mobile and desktop-based image analysis and word recognition software to check processing businesses.

5/21/18 Application Software $1,680 11.2x NA NA NA Provides commercial and open source e-commerce software for online merchants.

5/21/18 Management Application Software

$1,855 6.4x 5.0x NA NA Provides securities issuance software for businesses in the investment and finance sector globally.

5/21/18 Application Software $1,100 NA 7.3x NA NA Provides asset-focused accounting, budgeting and forecasting ERP and BI analytics software for companies in the oil and gas, utilities, mining, telecommunications and transportation industries.

5/16/18 Information Management $78 2.7x NA 12.3x NA Provides voice and Web conferencing and collaboration services for business in Europe and the US.

5/15/18 Application Software $100 13.3x NA NA NA Provides next-generation sequencing (NGS) and data analysis SaaS for the life sciences and healthcare industry.

5/10/18 Application Software $130 3.1x 2.4x 12.4x NA Provides pay-per-click (PPC), paid search and social network marketing campaign optimization SaaS for small-to-medium size businesses (SMBs).

5/2/18 Application Software $83 21.3x NA NA NA Provides payment and transaction processing SaaS and services for online retailers to enabling online, in-store, mobile, B2B and B2C payments.

5/1/18 Application Software $240 3.3x NA NA NA Provides healthcare, life sciences and pharmaceutical markets with business intelligence and predictive analytics software and SaaS.

5/1/18 Application Software $270 NA NA NA NA Provides AI-enabled contextual professional relationship intelligence SaaS, a mobile application and an online professional profile database for businesses.

4/26/18 Application Software $113 2.3x 2.3x NM NM Provides customer analytics SaaS to businesses. Software analyzes and predicts customer behavior based on customer service calls and sales interactions.

4/26/18 Infrastructure Management $265 NA NA NA NA Provides website and online store development SaaS and domain name services to entrepreneurs and small business owners. Software also provides features for integrated email marketing.

4/23/18 Application Software $150 1.4x NA 11.2x NA Provides workforce management SaaS for businesses. Software provides features for employee recruitment, training and compensation and performance management.

4/23/18 Application Software $1,200 NA 6.0x NA NA Provides construction industry enterprise resource planning (ERP), accounting, project management, building information management (BIM), collaboration, mobile office and content management software and SaaS.

4/23/18 Application Software $450 6.4x NA 22.5x NA Provides workforce management, optimization and scheduling SaaS for the healthcare sector in Europe.

($MM)



1616



($MM)



4/20/18 Application Software $219 9.9x 6.8x NA NA Provides real estate payment SaaS, mobile applications and pay-by-phone services for property managers, with a focus on the multi-dwelling residential sector. Also provides transaction processing and reporting software.

4/18/18 Application Software $150 6.0x NA NA NA Provides data software as a service (SaaS) to public sector organizations to make public data more easily accessible to public sector employees and citizens. Software features include data integration, visualization and reporting.

4/17/18 Infrastructure Management $300 6.7x 4.6x NA NAProvides enterprise IT infrastructure performance monitoring and systems management SaaS, including pre-configured networking, server, cloud infrastructure, virtual servers, databases, applications and storage performance information and alerting.

4/13/18 Application Software $180 NA NA NA NA Provides AI-based education data analytics SaaS to schools in India.

4/12/18 Application Software $330 3.1x NA 8.6x NA Provides business intelligence (BI) analytics and business process automation software for businesses globally.

4/8/18 Information Management $137 NM NA NA NA Provides online microblogging and collaboration SaaS and services for educators and students.

All Software

Median 5.3x 5.0x 12.3x 7.6x

Mean 7.2x 5.4x 13.8x 7.6x

PE Acquirers

Median 4.6x 4.5x 15.9x NA

Mean 5.0x 4.5x 17.0x NA

1717

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 7/31/2018. 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

7/31/18 Gusto $140Provider of a cloud-based payroll, benefits and human resource management platform designed to offer employee benefits. Mayfield Fund, NFX, 8VC

7/31/18 Freshworks $100Developer of a cloud-based customer support platform designed to provide software that is ready to go, easy to setup and use and requires minimal customization. Polaris Partners, .406 Ventures, F-Prime Capital Partners, Commerce Ventures

7/31/18 Yellowbrick $44Provider of a Data-as-a-Service Platform designed to to create a new approach to data analytics that prioritizes users experience, simplicity and scalability.

Salesforce Ventures, CRV, General Atlantic, Highland Capital Partners, Kleiner Perkins, Causeway Media Partners

7/31/18 Dremio $30Developer of a customer relationship management (CRM) software designed to transform and upgrade small and medium-sized enterprises. ICONIQ Capital, Amasia, Andreessen Horowitz, Work-Bench, Section 32, Scale Venture Partners

7/31/18 Mammoth Biosciences $23Developer of an end-to-end spoken dialogue system technology designed to improve human-machine interaction. Naspers Ventures, Innova Capital

7/31/18 Espressive $23Developer of a SaaS-based security rating platform designed to quickly scale third-party risk programs. General Catalyst, Wing Venture Partners

7/30/18 Simon $20Provider of an enterprise class customer review management platform designed to change the way businesses communicate with their customers.

Stripes Group, Remitly, Union Square Ventures, Insight Venture Partners, Founders Circle Capital, Spark Capital

7/26/18 Flywire $100Developer of an online payment platform designed to streamline the international and domestic payment experience.

Experian, Telstra Ventures, Kickstart Ventures, Deutsche Investitions- und Entwicklungsgesellschaft, InterVest Company, FengHe Fund Management, Fuchsia Venture Capital Company, Pelago Capital, Monk's Hill Ventures, Kejora, responsAbility Investments

7/26/18 Groundspeed Analytics $30Developer of a cloud-based cybersecurity platform designed to prevent, detect, and respond to cyber attacks in real-time.

InnoVision Capital, Cainiao Network Technology Company, Hongrun Capital, 58 Daojia, Russia-China Investment Fund, Qianhai Fund

7/25/18 ClassPass $85Provider of a subscription-based fitness membership system created to engage and adapt to people's fitness needs. Temasek Holdings, L Catterton

7/25/18 Wayz $80 Provider of a technology intended to offer smart location and mapping services. BlueRun Ventures, Lightspeed Venture Partners China

7/25/18 Carbon Lighthouse $60 Developer of proprietary software and strategies designed to help stop climate change. Oak HC/FT

7/24/18 Tuya Smart $200Operator of a global IoT and voice AI interactive platform intended for enterprise businesses.

China Broadband Capital Partners, C.M. Capital Advisors, Quadrille Capital, New Enterprise Associates, Australia Future Fund, China International Capital Corporation

7/24/18 BlockFi $53Provider of expense management platform designed to automate the entire expense report process. Galaxy Digital Ventures, ConsenSys Ventures, PJC, ConsenSys Ventures

7/24/18 League $47Provider of an online food marketplace designed to make fresh and healthy food accessible to everyone. Galaxy Digital Ventures, ConsenSys Ventures, PJC

1818



($MM)


7/24/18 Divvy $35Developer of an open network platform designed to build and deploy decentralized applications. Insight Venture Partners, Pelion Venture Partners, Joshua James, Pelion Venture Partners

7/24/18 Rescale $32Provider of a SaaS based request for proposal platform designed to automate and streamline the ability to respond to Request for Proposals.

Khosla Ventures, Silicon Valley Bank, Bull City Venture Partners, Ronald Conway, Valar Ventures, Harrison Metal Capital, Allen & Company

7/24/18 Kony $27Provider of a cloud-based cyber-security platform designed to predict and prevent execution of advanced threats and malware. ORIX Growth Capital

7/24/18 Rfpio $25Provider of a cloud-based enterprise data storage platform designed to manage and store enormous numbers of digital assets through real-time analytics. K1 Capital

7/23/18 Face++ $600Provider of a facial recognition technology designed to aim at providing compact, powerful and cross-platform vision service. Accel, Sequoia Capital India, CapitalG

7/23/18 Cogito $37Developer of an insurance data automation and analytics software designed to improve submission efficiency by converting the most complex loss run PDFs to custom formats. Alibaba Group, Boyu Capital Advisory Company

7/19/18 Unisound $89Developer of a voice recognition and processing technology designed for Internet of Tings (IoT) devices.

Cyberspace Administration , CICC Jia Cheng Investment Management Company, JIC Capital, China Electronics Corporation Data

7/19/18 Even $40Provider of an AI and big data analysis platform designed to identify the earliest signs of money laundering. The Goldman Sachs Group, Salesforce Ventures, OpenView Venture Partners

7/19/18 Eyeview $20Developer of an application delivery platform designed to deliver cloud-like simplicity for application networking to enterprises.

Innovation Endeavors, Gemini Israel Ventures, Nauta Capital, Qumra Capital, The Israel Secondary Fund

7/18/18 Nervos $28Private independent publisher of interactive entertainment for both casual and core gamers. Undisclosed

7/17/18 Glovo $134Provider of an on-demand delivery application designed to order and deliver things withing the city. General Catalyst, Wing Venture Partners

7/17/18 Dialpad $50Provider of an insider threat management platform designed to help companies identify and eliminate insider threats.

China Broadband Capital Partners, C.M. Capital Advisors, Quadrille Capital, New Enterprise Associates, Australia Future Fund, China International Capital Corporation

7/17/18 ObserveIT $33Developer of cloud-based enterprise applications and platforms designed to help enterprises transform ideas into innovative and secure omni-channel applications.

Cyberspace Administration of China, CICC Jia Cheng Investment Management Company, JIC Capital

7/16/18 Yitu $300Provider and developer of artificial intelligence technology intended to improve the current healthcare quality by applying AI technologies.

GV, Samsung Venture Investment, Third Point Ventures, Menlo Ventures, Draper Fisher Jurvetson Management

7/11/18 Monday.com $50Developer of cloud-based software platforms and hardware infrastructure intended for companies to perform scientific and engineering simulations. Insight Venture Partners, Pelion Venture Partners

1919



($MM)


7/11/18 GrubMarket $32 Provider of a disease detection platform intended to offer diagnostic facilities. TPG Growth

7/10/18 Toast $115Developer of a restaurant management platform designed to simplify and streamline operations.

T. Rowe Price, Tiger Global Management, Bessemer, Generation Investment Management, Lead Edge Capital

7/10/18 Sift Science $53Developer of a machine-learning based fraud detection software designed to help businesses to detect and fight fraud.

Bitmain Technologies, Fission Capital, NEO Global Capital, Node Capital, Danhua Capital, Linear Venture, IDG Capital, PreAngel, Du Capital

7/10/18 Higi $21 Provider of an online medical platform intended to track and trace pharmaceuticals easily. Orient Hontai Capital, Oceanpine Healthcare Fund, ZhenFund, K2VC, Prospect Avenue Capital

7/9/18 Lime $335 Provider of a bike sharing platform designed to change the way people travel within blocks. GV, Alphabet, Uber, Alpha Venture Partners, Atomico, Fidelity Management & Research, Andreessen Horowitz, Fifth Wall Ventures, IVP, Moving Capital, ATEL Capital Group, Coatue Management, GIC Private

7/5/18 Fever $20Developer of a wealth management platform designed to offer investment advisory services.

T. Rowe Price, Tiger Global Management, Bessemer, Generation Investment Management, Lead Edge Capital

7/3/18 ThetaRay $30 Provider of a product development platform designed to accelerate development time. GE Ventures, Silicon Valley Bank, Jerusalem Venture Partners, OurCrowd, Bank Hapoalim

7/2/18 Automation Anywhere $250Provider of robotic process automation designed to work side by side with people to do much of the repetitive work in many industries.

China Capital Zhongcai Fund Management, Sequoia Capital China, Huaxing Capital, China Health Industry Investment Fund

6/30/18 Dispersive Technologies $40The company raised $40 million of Series B venture funding from undisclosed investors on June 30, 2018, putting the company's pre-money valuation at $45 million. Undisclosed

6/29/18 Dataminr $392Developer of data-driven protection and privacy compliance platform designed to transform how enterprise protect and manage the privacy of personal data.

New Enterprise Associates, Goldman Sachs' Merchant Banking Division, General Atlantic, WiL (World Innovation Lab)

6/29/18 Weimob $200 Provider of a marketplace for recruiting software engineers. Investment Management Corporation

6/28/18 BitSight Technologies $60Developer of a cloud-based drone data platform designed make the power of aerial data accessible and productive for everyone. Warburg Pincus, Singtel Innov8, GGV Capital, Flybridge Capital Partners, Menlo Ventures

6/27/18 Balbix $20Provider of a predictive breach avoidance platform designed to provide comprehensive and continuous predictive assessment of breach risk.

Singtel Innov8, Mubadala Investment Company, Mayfield Fund, John Chambers, Pankaj Patel, Gary Gauba, BV Jagadeesh

6/26/18 Jama Software $200Provider of contract discovery, data extraction and analytics software designed to help companies manage their contract portfolios. IVP

6/26/18 AI Speech $77 Provider of a cyber-security analytics software designed to accelerate security operations. Oriza Holdings, China Minsheng Investment Group, Foxconn Technology Group, MediaTek, Shenzhen Capital Group

2020



($MM)


6/26/18 DroneDeploy $25Developer of a cloud-based drone data platform designed make the power of aerial data accessible and productive for everyone.

Invenergy Future Fund, Uncork Capital, Emergence Capital Partners, Scale Venture Partners, AirTree Ventures, AngelPad

6/25/18 BigID $30Developer of data-driven protection and privacy compliance platform designed to transform how enterprise protect and manage the privacy of personal data.

Scale Venture Partners, Comcast Ventures, SAP, Information Venture Partners, Boldstart Ventures, ClearSky Security , ClearSky Security, Western Technology Investment, Comcast Ventures, SAP.iO Fund , Plug and Play Tech Center, BOLDstart Ventures

6/21/18 CrowdStrike $200Developer of a candidate relationship software designed to power modern recruiting teams.

GIC Group, Dahua Ventures, Kaixin Investment, Siwei Capital, Hantou Partners, Straits Capital, Kaisbo

6/21/18 CloudBolt Software $23 Developer of a cloud management system. Insight Venture Partners

6/20/18 Beamery $28Developer of a candidate relationship software designed to power modern recruiting teams. EQT, M12, Edenred Capital Partners, Index Ventures (UK), AngelPad

6/19/18 Scopely $160Provider of a sales experience platform designed to make enterprise software more human-friendly.

Evolution Media, Mark IV Capital, Greycroft, Horizons Ventures, Sands Capital Ventures, GreenSpring Ventures, Cross Creek Advisors, Pritzker Group Venture Capital, Greenspring Associates, Revolution, Upfront Ventures, M13, BAM Ventures

6/19/18 Cylance $120Provider of a deep learning automation platform created to visualize image recognition and text understanding. The Blackstone Group, SharesPost

6/19/18 Comprehend Systems $24Provider of a single cloud-based suite designed for clinical assessment and CRO oversight and collaboration. Eminence Capital, Sequoia Capital, Lightspeed Venture Partners

6/18/18 Acumatica $25Provider of an enterprise resource planning software designed to offer highly customizable and cloud-based ERP applications. Accel-KKR

6/15/18 Agari $40 Provider of a data security platform intended to change the email security status quo. Goldman Sachs Merchant Banking Division, Alloy Ventures, Battery Ventures, First Round Capital, Greylock Partners, Scale Venture Partners, Norwest Venture Partners

6/8/18 TraceLink $60Provider of an enterprise resource planning software designed to offer highly customizable and cloud-based ERP applications. Technology Crossover Ventures

6/7/18 Podium $60Provider of big data analytics platform designed to provide a complete and unified view of business operations. IVP, GV, Summit Partners, Accel, Y Combinator

6/7/18 Devo $25Developer of a cloud-based drone data platform designed make the power of aerial data accessible and productive for everyone.

Invenergy Future Fund, Uncork Capital, Emergence Capital Partners, Scale Venture Partners, AirTree Ventures, AngelPad

6/6/18 Qumulo $93Provider of a collaborative litigation platform designed to offer intuitive software for document analysis.

Western Digital Capital, Goldman Sachs Investment Partners and BlackRock, Highland Capital Partners

6/6/18 Avi Networks $60Provider of a single cloud-based suite designed for clinical assessment and CRO oversight and collaboration.

Cisco Investments, Lightspeed Venture Partners, Greylock Partners, Menlo Ventures, DAG Ventures

2121

Recent Software IPO PricingsSOFTWARE CAPITAL MARKETS UPDATE

Notes:Sources: Capital IQ and Company filings as of 7/31/2018. IPO pricings include public registrations only. (1) First Trading Day listed as Offer Date.

($MM)

Offer Date(1) Market Cap @ IPO Date

Amount Raised Pre IPO Filing Range Offer Price% Change

Offer / Midpoint Price

% Change 1st Trading Day / Offer

Price

% Change Current / Offer Price

7/27/2018 $1,336 $127 17.00-19.00 $20.00 11.1% 26.0% 31.0%

7/27/2018 $1,438 $115 10.00-12.00 $12.00 9.1% 9.3% 13.6%

7/26/2018 $2,755 $251 17.00-19.00 $23.00 27.8% 31.5% 36.3%

6/29/2018 $681 $193 19.00 - 21.00 $21.00 5.0% 30.0% (15.5%)

6/15/2018 $2,933 $180 21.00 - 23.00 $24.00 9.1% 87.3% 75.9%

5/17/2018 $1,196 $311 12.00 - 14.00 $15.00 15.4% 33.3% 80.1%

5/4/2018 $1,576 $152 15.00-17.00 $19.00 18.8% 26.0% 34.8%

4/27/2018 $1,928 $175 12.00 - 14.00 $15.00 15.4% 30.0% 66.7%

4/27/2018 $6,043 $629 26.00 - 28.00 $29.00 7.4% 37.0% 106.5%

4/26/2018 $4,156 $462 19.00-21.00 $22.00 10.0% 41.9% 69.3%

4/20/2018 $3,938 $555 14.00 - 16.00 $15.00 - 4.9% 62.6%

4/12/2018 $2,070 $154 11.00 - 13.00 $14.00 16.7% 42.9% 95.7%

3/23/2018 $11,161 $756 16.00 - 18.00 $21.00 23.5% 35.6% 50.1%

3/16/2018 $3,872 $192 10.00 - 12.00 $16.00 45.5% 106.3% 132.8%

2/9/2018 $261 $70 13.00-15.00 $13.00 (7.1%) 2.8% 48.1%

Name

2222

195

153

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(7) (4)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(12)

(13)

(9)

6

11

717

1617 11

9

10

15

130

140

150

160

170

180

190

200

210PE Acquisitions Strategic Acquisitions IPO

Notes:Sources: Capital IQ, company filings. Market data as of 7/31/2018.

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

YTD 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

Endava

2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018IPO + 6 + 11 + 7 + 17 + 16 + 17 + 11 + 9 + 10 + 15Strategic Exits - 7 - 11 - 8 - 11 - 9 - 6 - 10 - 12 - 13 - 9PE Exits - 5 - 4 - 6 - 9 - 6 - 7 - 8 - 9 - 7 - 4

2323

US Deal Share by Sector

US Financing Trend

US FINANCING AND DEAL SHARE BY SECTOR

$14.6$13.0

$15.3

$19.2 $19.7 $19.6

$22.4 $23.0

1,355

1,264

1,410

1,336

1,392

1,289 1,297

1,416

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Investments ($B) Deals

49% 45% 44% 45% 47% 43% 46% 43%

12% 16% 14% 14% 13%11%

11%12%

13% 11% 15% 13% 14%15%

14% 15%

7% 8% 6% 8% 8%8%

9% 9%

4% 5% 3% 4% 4%5% 3% 5%

15% 14% 18% 16% 15% 19% 17% 16%

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

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

Notes:Source: PwC CB Insights MoneyTree Report Q2 2018.

Documents

Software Sector Summary Report - GCA Altium · 4) Software M&A transactions reflect select transactions in 2018 YTD. M&A metrics are based on closed and announced transactions. 5)