Welcome to the Q1 edition of Results …resultsig.com/wp-content/uploads/2015/09/The-Tech-Report...Welcome to the Q1 edition of Results International’s Tech Report Here at Results

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Welcome to the Q1 edition of Results International’s Tech Report

Here at Results we cover all aspects of technology with a particular focus on enterprise software / SaaS, software-

related IT services, and tech enabled services. However we like to turn our attention to a number of specific sectors

at the end of every quarter to consider the trends and analyse the activity in the M&A, fundraising and public

markets.

We have produced our view on the previous quarter’s proceedings in a series of individual market reviews on:

• SaaS

• HealthTech

• Cyber Security

• AdTech & MarTech

Each sector has had an exciting quarter, with innovation and strong investor appetite driving buoyant public and

private market activity.

Cyber Security, HealthTech and SaaS have all seen healthy public markets with our Results indices all up on the

previous quarter. The AdTech & MarTech sectors have been mixed in Q1 however the underlying sector trends

remain strong as the shift to programmatic and the rise of video, mobile, social and native continues.

The private markets in Cyber Security have seen a correspondingly strong quarter with M&A activity up to record

levels. The HealthTech and AdTech & MarTech M&A markets have seen a slight decline from the previous quarter,

however both remain at historically high levels as private investors invest in innovation and product differentiation.

One thing is prevalent within each of the sectors; those displaying strong top-line growth with quality clients and an

innovative product continue to outperform their peers on the public markets.

We hope you enjoy the document, and please do get in touch if you would like to discuss any of the themes with

us. We look forward to speaking with you soon.

1

Deep domain expertise in three inter-related sectors… … and broad industry networks

A market-leading corporate finance advisory firm…

• Founded in 1991

• Entrepreneurial and owner-managed

• 40 person team; 250+ completed transactions

• Broad global network

• Creative solutions

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…with global reach

About Results International

3

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Results International Global SaaS Indices

4

1.9%

16.7%

6.2%

(23.2%)

(0.2%)

Q1 2015 Performance

Large Cap 5.7%

Mid Cap (1.0%)

Small Cap 12.0%

Global SaaS 5.1%

Note: Based on share prices as at 31 March 2015

Note: Indices weighted by market capitalisation

Sources: Capital IQ and Results analysis

50

60

70

80

90

100

110

120

130

140

150

Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15

Large Cap Mid Cap Small Cap Global SaaS Index NASDAQ Comp

Global SaaS Universe: Large & Mid Cap Share Price Performance

5

Q1

-20

15

La

st 1

2 M

on

ths

Large Cap Mid Cap

Note: Share price performance as at 31 March 2015


(25.5%) (18.4%)

(2.2%)

(21.7%)

17.0%

31.5% 24.1%

(7.7%)

(22.6%)

56.2%

(4.9%)

1.1%

(4.4%)

(39.6%)

(9.8%)

10.9%

(21.6%)

34.1%

91.8%

24.7%

(15.2%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

(18.1%)

0.9%

(15.0%) (13.1%)

12.6% 16.1% 15.8%

3.4%

(29.7%)

4.1% 5.8%

(13.1%)

(3.3%)

(17.9%)

2.7%

(8.3%)

(21.7%)

26.4%

37.2%

13.5%

(27.4%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Global SaaS Universe: Small Cap Share Price Performance

6

Q1

-20

15

La

st 1

2 M

on

ths

Small Cap



12.0%

(55.1%)

0.7%

(14.9%)

49.2%

18.7%

(4.5%)

(25.7%)

23.1% 17.2% 18.5%

12.9% 8.0%

38.0%

8.3%

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

(21.7%)

(74.3%)

(22.4%)

(36.0%) (38.8%)

n.a. 7.8%

(40.5%)

82.8%

(37.3%)

9.2% 1.9%

(5.8%)

17.3%

(8.2%)

(100.0%)

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Global SaaS: Valuation Benchmarks

7

EBITDA Margin 2015E EV / EBITDA 2015E

Revenue Growth (2015-16E) EV / Revenue 2015E

Note: EV = Enterprise Value; Financials calendarised to December year end

Note: Median values reported; excludes negative multiples

Note: See Selected Publicly Traded Companies (slides 6 & 7) for details of companies included in each category

Source: Capital IQ

21.6% 19.8% 19.5%

21.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Large Cap Mid Cap Small Cap Global SaaS

7.4 x

4.6 x

3.6 x

5.1 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x


30.7 x

19.4 x

39.0 x

24.2 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x

35.0 x

40.0 x

45.0 x


16.7%

18.0%

0.4%

13.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%


Operating Metrics Valuation Metrics

Price % of 52 Market Total Net Enterprise Revenue Subscription Rev. Growth Gross Margin EBITDA Margin Revenue EBITDA

Company (31-Mar-15) Week High Cap Cash Debt Value CY2015 Historical CY15-16 Historical CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

Large Cap

salesforce.com, inc. 66.81 94.1% 42,818 995 1,202 44,021 6,416 93.9% 21.0% 76.0% 16.0% 17.3% 6.9 x 5.7 x 43.0 x 32.9 x

Solera Holdings Inc. 51.66 74.2% 3,477 393 2,309 5,786 1,173 n.a 6.0% 68.3% 45.0% 41.3% 4.9 x 4.7 x 12.1 x 11.3 x

Workday, Inc. 84.41 86.7% 15,869 1,858 (1,364) 14,505 1,113 75.5% 39.5% 66.4% 1.4% 3.6% 13.0 x 9.3 x n.m. n.m.

Dealertrack Technologies, Inc. 38.52 76.1% 2,132 334 557 2,688 1,091 37.7% 15.3% 45.0% 20.4% 21.4% 2.5 x 2.1 x 12.1 x 10.0 x

Serv iceNow, Inc. 78.78 97.0% 12,745 745 (294) 12,452 990 82.4% 36.0% 63.6% 12.8% 14.1% 12.6 x 9.3 x 98.5 x 65.5 x

athenahealth, Inc. 119.39 71.0% 4,661 115 94 4,754 920 94.7% 21.5% 59.8% 17.4% 17.9% 5.2 x 4.3 x 29.7 x 23.8 x

NetSuite Inc. 92.76 81.1% 7,250 450 (176) 7,075 722 80.5% 28.3% 68.2% 8.6% 8.8% 9.8 x 7.6 x n.m. 87.2 x

The Ultimate Software Group, Inc. 169.96 97.6% 4,965 116 (108) 4,857 617 81.5% 21.7% 59.8% 24.8% 26.1% 7.9 x 6.5 x 31.8 x 24.8 x

25th percentile 75.7% 870 78.0% 19.5% 59.8% 11.7% 12.8% 5.1 x 4.6 x 16.5 x 17.5 x

Median 83.9% 1,040 81.5% 21.6% 65.0% 16.7% 17.6% 7.4 x 6.1 x 30.7 x 24.8 x

75th percentile 94.8% 1,128 88.2% 30.2% 68.2% 21.5% 22.6% 10.5 x 8.0 x 40.2 x 49.2 x

Mid Cap

RealPage, Inc. 20.14 87.1% 1,596 27 (7) 1,590 456 96.1% 10.5% 56.8% 18.0% 19.9% 3.5 x 3.2 x 19.4 x 15.9 x

Medidata Solutions, Inc. 49.04 83.7% 2,777 273 (32) 2,745 401 82.3% 19.8% 74.7% 23.5% 25.3% 6.8 x 5.7 x 29.2 x 22.6 x

Constant Contact, Inc. 38.21 88.5% 1,308 163 (163) 1,146 388 n.a 16.8% 72.5% 19.5% 21.1% 3.0 x 2.5 x 15.2 x 12.0 x

Veeva Systems Inc. 25.53 75.8% 3,356 398 (398) 2,959 388 69.8% 24.2% 60.7% 28.5% 29.2% 7.6 x 6.1 x 26.7 x 21.0 x

Cornerstone OnDemand, Inc. 28.89 58.0% 1,557 283 (57) 1,500 338 n.a 26.1% 70.5% 1.8% 5.2% 4.4 x 3.5 x n.m. 67.7 x

Fleetmatics Group PLC 44.85 96.5% 1,733 175 (151) 1,582 289 n.a 21.6% 75.2% 31.9% 32.8% 5.5 x 4.5 x 17.2 x 13.7 x

IntraLinks Holdings, Inc. 10.34 84.2% 607 53 26 633 270 n.a 7.8% 72.9% 14.4% 15.6% 2.3 x 2.2 x 16.2 x 13.9 x

LivePerson Inc. 10.24 69.6% 583 49 (49) 533 266 n.a 16.1% 74.9% 10.5% 11.0% 2.0 x 1.7 x 19.1 x 15.7 x

LogMeIn, Inc. 55.99 96.3% 1,418 201 (201) 1,216 262 n.a 16.0% 89.6% 21.4% 21.7% 4.6 x 4.0 x 21.7 x 18.4 x

Demandware, Inc. 60.90 85.0% 2,342 244 (243) 2,100 234 92.3% 33.5% 73.8% 4.5% 7.7% 9.0 x 6.7 x n.m. 87.4 x

Ellie Mae, Inc. 55.31 96.4% 1,735 76 (75) 1,660 206 n.a 23.7% 71.4% 19.2% 23.6% 8.1 x 6.5 x 41.9 x 27.7 x

Marketo, Inc. 25.62 71.9% 1,153 113 (106) 1,047 206 90.2% 31.1% 62.7% (17.3%) (9.4%) 5.1 x 3.9 x n.m. n.m.

Bazaarvoice, Inc. 5.65 60.2% 444 105 (48) 396 202 n.a 11.3% 68.5% (0.4%) 5.5% 2.0 x 1.8 x n.m. 31.9 x


Median 84.2% 270 90.2% 19.8% 72.5% 18.0% 19.9% 4.6 x 3.9 x 19.4 x 19.7 x


Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 100x EV / Revenue and 100x EV / EBITDA; Net debt includes minority interest

Note: Market cap classifications categorised by CY2015E revenue:

• Large Cap: Revenues greater than $500m

• Mid Cap: Revenues between $200m and $500m

• Small Cap: Revenues less than $200m

Source: Capital IQ

Global SaaS: Selected Publicly Traded Companies

8


Price % of 52 Market Total Net Enterprise Revenue Subscription Rev. Growth Gross Margin EBITDA Margin Revenue EBITDA

Company (31-Mar-15) Week High Cap Cash Debt Value CY2015 Historical CY15-16 Historical CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

Small Cap

Jive Software, Inc. 5.13 58.6% 384 114 (108) 276 197 88.7% 12.0% 68.2% 0.4% 3.2% 1.4 x 1.2 x n.m. 38.9 x

Cvent, Inc. 28.04 76.9% 1,229 168 (168) 1,061 178 90.2% 22.9% 70.2% 10.2% 12.0% 6.0 x 4.8 x 58.4 x 40.3 x

Benefitfocus, Inc. 36.79 74.6% 1,117 56 (2) 1,115 174 93.3% 23.4% 36.3% (22.5%) (11.3%) 6.4 x 5.2 x n.m. n.m.

Qualys, Inc. 46.48 93.0% 1,832 127 (127) 1,704 168 n.a 23.8% 77.2% 25.9% 27.1% 10.1 x 8.2 x 39.0 x 30.2 x

HubSpot, Inc. 39.90 90.0% 1,435 124 (124) 1,311 161 58.4% 26.3% 68.0% (22.2%) (15.9%) 8.1 x 6.4 x n.m. n.m.

SPS Commerce, Inc. 67.10 95.3% 1,153 131 (131) 1,022 157 n.a 19.5% 68.7% 13.8% 14.9% 6.5 x 5.5 x 47.2 x 36.7 x

Xero Limited. 18.06 60.3% 2,444 128 (128) 2,316 144 94.9% 59.1% 65.7% (26.0%) (8.7%) 16.1 x 10.1 x n.m. n.m.

Marin Software Incorporated 6.29 49.7% 231 68 (65) 166 115 n.a 17.0% 64.2% (9.8%) (4.1%) 1.4 x 1.2 x n.m. n.m.

SciQuest, Inc. 16.93 61.6% 468 131 (131) 337 108 n.a 11.7% 69.1% 20.6% 21.6% 3.1 x 2.8 x 15.2 x 12.9 x

Rally Software Development Corp. 15.69 99.4% 410 67 (67) 344 103 77.8% 21.6% 77.6% (18.4%) (2.7%) 3.3 x 2.7 x n.m. n.m.

Textura Corporation 27.18 89.0% 729 67 (66) 663 99 n.a 40.1% 79.6% 11.7% 11.5% 6.7 x 4.8 x 57.3 x 41.4 x

ChannelAdvisor Corporation 9.69 24.6% 242 68 (65) 178 96 n.a 16.3% 71.5% (17.1%) (10.5%) 1.9 x 1.6 x n.m. n.m.

Halogen Software Inc. 7.25 91.9% 162 44 (44) 117 67 87.7% 19.4% 71.8% (13.6%) (9.4%) 1.7 x 1.5 x n.m. n.m.

Craneware plc 7.99 95.6% 216 36 (36) 179 50 87.3% 8.2% 95.4% 30.4% 30.7% 3.6 x 3.3 x 11.9 x 10.9 x

StatPro Group plc 1.17 87.2% 79 4 (4) 75 48 n.a. 3.9% n.a. 14.4% 15.3% 1.6 x 1.5 x 10.7 x 9.7 x

25th percentile 60.9% 97 84.9% 14.2% 68.1% (17.7%) (9.1%) 1.8 x 1.5 x 13.5 x 12.4 x

Median 87.2% 115 88.2% 19.5% 69.6% 0.4% 3.2% 3.6 x 3.3 x 39.0 x 33.5 x


9

Global SaaS: Selected Publicly Traded Companies


Note: Market cap classifications categorised by CY2015E revenue:

• Large Cap: Revenues greater than $500m

• Mid Cap: Revenues between $200m and $500m

• Small Cap: Revenues less than $200m

Source: Capital IQ

10

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12






60

70

80

90

100

110

120

130


Healthcare IT - Europe Healthcare IT - US Biopharma IT Generalists NASDAQ Composite Index FTSE 100

Q1 2015 Performance

Healthcare IT – Europe 5.2%

Healthcare IT - US 7.1%

Biopharma IT -0.5%

Generalists -2.3%

HealthTech(1)

6.6%

Results International Global HealthTech Indices

Note: Based on share prices as at 31 March 2015


Note: Biopharma IT index predominantly reflects Veeva performance since IPO in October 2013

Note: (1)

Excludes Generalists

Sources: Capital IQ and Results analysis 13

17.8%

7.3%

16.7%

1.6%

-6.9%

2.6%

HealthTech: Share Price Performance


Note: *‘Last 12 Months’ & ‘Q1-2015’ reference dates adjusted to first trading day post IPO for Inovalon Holdings (11-Feb-15)


47.4%

33.3%

13.3% 7.9%

1.9%

28.1% 30.2%

6.3%

-25.5%

11.9%

-33.7% -23.8%

-63.4%

-5.3% -5.6%

-16.0%

83.2%

-4.4% -9.8%

-2.8%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Last

12 M

on

ths

34.9%

-0.7%

8.0%

-3.7%

12.9% 9.0%

13.3%

5.6%

-18.1%

11.9%

-6.3% -4.8%

-33.7%

2.5%

-14.5% -10.7%

25.6%

-3.3%

2.7%

43.8%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Q1-2

015

Healthcare IT – Europe Healthcare IT – US Biopharma IT

HealthTech: Recent IPO Performances

15

Note: Calendarised to December year end; $ millions, except share price data

Note: (1)

Current increase from IPO price; Market data as of 31 March 2015

Note: (2)

Castlight projecting negative EBITDA for CY2015

Source: Capital IQ

Company IPO Date Description Raised Indicative Price

Range ($)

IPO Price ($)

Increase vs. range

Day 1 Increase

Current Increase(1)

Current

EV

EV / Revenue

2015E

EV / EBITDA

2015E

Feb-15 Cloud-based healthcare

data analytics software 600.0 24.00-26.00 27.00 8.0% 0.0% 11.9% 4,597 10.6x 29.2x

Apr-14 Healthcare information

technology and services 1,300.0 18.00-21.00 20.00 2.5% 15.0% 35.4% 12,700 4.3x 13.8x

Mar-14 Healthcare enterprise

management software 177.6 13.00-15.00 16.00 14.3% 148.8% (51.5%) 521 6.8x n.m. (2)

Dec-13

Software, hardware and

services for the healthcare

and energy sectors 199.7 n.a. 2.93 n.a. 20.1% 45.0% 281 2.9x 11.6x

Oct-13 Cloud-based CRM software

for the biopharma industry 260.9 16.00-18.00 20.00 17.6% 85.8% 27.7% 2,959 7.6x 26.7x

NYSE

NYSE

LSE

NYSE

NasdaqGS

HealthTech: Valuation Benchmarks

16





Note: See Selected Publicly Traded Companies (Slide 9) for details of companies included in each category

Note: McKesson excluded from above analysis because majority of revenue is generated from pharmaceutical distribution

Source: Capital IQ

4.2%

7.1%

10.0%

19.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Generalists Healthcare IT -

Europe

Healthcare IT - US Biopharma IT

28.2%

24.6%

21.7% 23.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Europe


4.0 x

3.1 x 2.9 x

6.8 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x


Europe


11.4 x 11.9 x 12.7 x

26.7 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x


Europe


21

17

20

32

29

18

28 27 28

32

44

61

54

4

3

5

1

1

7

2 7 5

6

2

8

12

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

10

20

30

40

50

60

70

80

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Healthcare IT Biopharma IT Healthcare IT Total Disclosed Deal Value Biopharma IT Total Disclosed Deal Value

HealthTech: Global M&A Activity

17 Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

Nu

mb

er o

f D

ea

ls

Tota

l D

isc

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d D

ea

l V

alu

e (

$m

)

HealthTech: Selected Deals in Q1 2015

Date Buyer Target EV ($m) EV /

Revenue EV / EBITDA Company description

Target

Location

Mar-15 - - - Healthcare analytics and performance benchmarking software

Mar-15 - - - Practice management software for physiotherapists and rehabilitation clinics

Mar-15 - - - Cloud-based electronic medical record software

Mar-15 81.4 1.8x 15.0x Practice management, communication and electronic patient record

software

Mar-15 - - - Business intelligence, performance analyisis and emergency room software

for the healthcare industry

Mar-15 - - - Key Opinion Leader campaign optimisation software for the biopharma

industry

Feb-15 70.0 - - Medical imaging software

Feb-15 - - - Administrative and invoicing software for GP clinics

Feb-15 - - - Employee credentialing and talent management software for the

healthcare industry

Feb-15 17.0 1.0x - Electronic health record solutions for hospitals and mental health providers

Feb-15 - - - Pharmacy management software for long-term post-acute care

Jan-15 140.0 - - Cloud-based analytics, decision support and financial planning software for

the healthcare industry

Jan-15 40.0 - - Cloud-based electronic health record and financial software for rural and

community hospitals

Jan-15 - - - Cloud-based sales and marketing analytics software for the biopharma

industry

Jan-15 65.0 - - Genomic analysis and bioinformatics software

Jan-15 - - - Electronic Clinical Outcome Assessments solutions for clinical trials

Jan-15 37.0 - - Medical imaging software

18

Note: Financials relate to the companies’ full fiscal year before the transaction took place

Note: Enterprise Value (EV) = transaction value scaled to 100% shareholding plus net debt (includes minority interest)

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

HealthTech: Selected Fundraisings in Q1 2015

Date Company Type of round Funds

raised ($m) Investor participation Company description

Company

headquarters

Mar-15 Seed - High-Tech Gründerfonds; Innovationsstarter Fund; Quotas Beteiligungs Tinnitus treatment mobile music

application

Mar-15 Seed 0.7 Proxy Ventures UK Self-health and medicine management

mobile app

Mar-15 Seed 0.3 - Genomic data sharing platform

Mar-15 - 2.0 Groupe Arnault; DR. KADE Pharmaherstelle; and an individual investor Female health mobile app

Mar-15 - 1.0 - Geriatric out-patient care support

application

Mar-15 - 8.5 - Neuro-therapy software and hardware

Feb-15 - 9.9 - Diversified healthcare software vendor

Feb-15 Seed 2.5 Creathor Venture; Partech; Stephan Schamback; Heilemann Ventures;

Atlantic Labs

Telemedicine application for

dermatology

Feb-15 - 0.4 Oy Verman Ab; Integra Capital Partners Oy Ltd; Avohoidon Tutkimussaatio;

WetRock Capital & Consulting Oy

Clinical decision support software for

diagnostics

Feb-15 Series B 13.5 Amadeus Capital Partners Limited; Smedvig Capital Limited; Octopus

Investments Limited Patient eMarketplace for clinical trials

Jan-15 - 0.1 Rothenberg Ventures Clinical treatment applications for

psychology

Jan-15 Seed 1.3 Invest PME SA; Alsace Capital Simulation software for drug discovery

Jan-15 Seed 0.1 DreamIt Health Medical photo sharing and management

mobile app

Jan-15 - 1.2 Industrifonden Online platform for fat and muscle mass

measurement

Jan-15 Series A 1.5 Capricorn Venture Partners; Participatiemaatschappij Vlaanderen NV Simulation software for cardiovascular

procedures

Jan-15 - 0.6 - Mobile patient management/

engagement app

19 Sources: Capital IQ and Results analysis


Price % of 52 Market Total Net Enterprise Revenue Rev. Growth Revenue EBITDA

Company (31-Mar-15) Week High Cap Cash Debt Value CY2015 CY15-16 CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

Generalists with significant HealthTech exposure

Oracle 43.15 92% 195,729 43,777 (11,083) 184,646 39,008 2.6% 49.3% 48.8% 4.7 x 4.6 x 9.6 x 9.4 x

SAP 72.30 99% 88,315 3,369 8,390 96,705 21,499 5.0% 35.2% 35.1% 4.5 x 4.3 x 12.8 x 12.2 x

Thermo Fisher Scientific 134.34 97% 54,136 1,352 13,216 67,352 16,886 4.2% 25.1% 26.2% 4.0 x 3.8 x 15.9 x 14.6 x

EMC 25.56 83% 51,043 8,321 (1,197) 49,846 25,990 6.1% 27.5% 27.3% 1.9 x 1.8 x 7.0 x 6.6 x

Thomson Reuters 40.55 99% 32,221 1,179 7,729 39,950 9,845 2.7% 28.2% 29.4% 3.2 x 3.1 x 11.4 x 10.6 x

Computer Sciences Corporation 65.28 89% 9,424 2,393 356 9,780 12,185 1.4% 17.6% 18.1% 0.8 x 0.8 x 4.6 x 4.4 x

Aspen Technology 38.49 80% 3,418 231 (231) 3,187 461 9.6% 43.0% 43.2% 6.9 x 6.3 x 16.1 x 14.6 x

25th percentile 2.7% 26.3% 26.7% 2.6 x 2.5 x 8.3 x 8.0 x

Median 4.2% 28.2% 29.4% 4.0 x 3.8 x 11.4 x 10.6 x


Healthcare IT - Europe

CompuGroup Medical 28.83 92% 1,434 23 371 1,805 587 7.1% 22.2% 23.7% 3.1 x 2.9 x 13.8 x 12.1 x

EMIS Group 12.83 94% 809 7 25 834 237 7.0% 29.8% 30.2% 3.5 x 3.3 x 11.9 x 10.9 x

Cegedim 33.84 92% 473 44 550 1,024 539 2.8% 19.1% 19.4% 1.9 x 1.8 x 9.9 x 9.5 x

Servelec Group 4.25 87% 290 6 (9) 281 98 7.9% 24.6% 25.3% 2.9 x 2.7 x 11.6 x 10.5 x

Craneware 7.99 96% 216 36 (36) 179 50 8.2% 30.4% 30.7% 3.6 x 3.3 x 11.9 x 10.9 x


Median 7.1% 24.6% 25.3% 3.1 x 2.9 x 11.9 x 10.9 x


Healthcare IT - US

McKesson 226.20 97% 53,558 4,587 7,340 60,898 186,620 4.3% 2.7% 2.9% 0.3 x 0.3 x 12.1 x 10.9 x

Cerner 73.26 98% 26,336 1,421 (1,291) 25,045 5,044 21.0% 31.3% 33.4% 5.0 x 4.1 x 15.8 x 12.3 x

IMS Health 27.07 95% 9,297 390 3,403 12,700 2,943 9.6% 31.4% 31.9% 4.3 x 3.9 x 13.8 x 12.4 x

athenahealth 119.39 71% 4,661 115 94 4,754 920 21.4% 17.4% 17.8% 5.2 x 4.3 x 29.8 x 23.9 x

Inovalon Holdings 30.21 90% 4,460 163 138 4,597 436 21.7% 36.2% 37.2% 10.6 x 8.7 x 29.2 x 23.3 x

Allscripts Healthcare Solutions 11.96 65% 2,163 53 523 2,686 1,434 6.1% 16.7% 18.3% 1.9 x 1.8 x 11.2 x 9.7 x

MedAssets 18.82 74% 1,139 12 878 2,016 759 4.5% 30.2% 30.5% 2.7 x 2.5 x 8.8 x 8.3 x

Quality Systems 15.98 85% 963 125 (125) 839 515 6.8% 16.1% 17.2% 1.6 x 1.5 x 10.1 x 8.9 x

Castlight Health 7.76 31% 713 192 (192) 521 76 58.4% (91.9%) (44.0%) 6.8 x 4.3 x n.m. n.m.

Healthstream 25.20 78% 709 121 (121) 588 203 14.6% 13.7% 15.4% 2.9 x 2.5 x 21.3 x 16.4 x

Computer Programs & Systems 54.26 80% 614 34 (34) 580 199 6.8% 24.8% 26.6% 2.9 x 2.7 x 11.7 x 10.3 x

Merge Healthcare 4.47 95% 436 42 184 619 248 10.0% 21.7% 23.7% 2.5 x 2.3 x 11.5 x 9.6 x


Median 10.0% 21.7% 23.7% 2.9 x 2.7 x 12.7 x 11.3 x


Biopharma IT

Veeva Systems 25.53 76% 3,356 398 (398) 2,959 388 24.2% 28.5% 29.2% 7.6 x 6.1 x 26.7 x 21.0 x

Medidata Solutions 49.04 84% 2,777 273 (32) 2,745 401 19.8% 23.5% 25.3% 6.8 x 5.7 x 29.2 x 22.6 x

Instem 2.83 95% 35 2 - 28 21 8.7% 16.6% 18.3% 1.5 x 1.4 x 9.3 x 7.8 x


Median 19.8% 23.5% 25.3% 6.8 x 5.7 x 26.7 x 21.0 x


EBITDA Margin

HealthTech: Selected Publicly Traded Companies

20


Note: (1)

McKesson excluded from ‘Healthcare IT – US’ summary analysis above because majority of revenue is generated from pharmaceutical distribution

Note: (2)

Castlight Health has run a negative gross margin during a period of rapid growth due to additional implementation costs associated with launching new customers

Note: (3)

Cegedim’s revenue growth and EBITDA multiples reflect the divestiture of its Information and CRM solutions assets to IMS Health in June 2014

Source: Capital IQ

(1)

(2)

(3)


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Managing Director

Di: +44 (0) 20 7514 8236


21

Richard Latner

Manager

Di: +44 (0) 20 7514 8241


Disclaimer:





Contact Us


t +1 646 747 6500

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Pierre-Georges Roy

Partner

Di: +1 646 747 6505


Maurice Watkins

Partner

Di: +1 646 747 6500







• Founded in 1991







23






40

60

80

100

120

140

160

180

200

220


Broadline Endpoint Network Data Monitoring & Analysis Global Security NASDAQ Comp

Results International Global Cyber Security Indices

Note: Based on share prices as at 31st March 2015



36.3%

18.9% 16.7%

45.3%

14.5%

(23.5%)

14.6%

Q1 2015 Performance

Broadline (4.1%)

Endpoint 16.1%

Network 5.2%

Data 17.5%

Monitoring & Analysis 16.0%

Global Security 4.6%

Cyber Security: Share Price Performance

Note: Share price performance as at 31st March 2015


Broadline Endpoint Network Data

Monitoring & Analysis

Q1

-20

15

La

st 1

2 M

on

ths

(8.9%)

18.6%

9.7%

40.2%

19.6%

(7.0%)

7.3% 4.3%

(27.4%)

14.0%

(11.9%)

19.2%

(5.0%)

7.5%

24.3%

(13.6%)

22.8%

(25.4%)

23.1%

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

17.0% 23.9%

3.3% n.a.

12.1%

n.a.

13.3% 21.2%

(32.8%)

58.6%

7.8%

112.9%

18.3%

(6.6%)

(36.3%)

(23.3%)

59.7%

(51.1%)

82.8%

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

Company IPO Date Description Raised Indicative Price

Range ($)

IPO Price

($)

Increase vs.

range

Day 1

Increase

Current

Increase(1)

Current

EV

EV / Revenue

2015E

EV / EBITDA

2015E

Sep-14 Privileged account security

86 13.00-15.00 16.00 14.3% 87.1% 247.3% 1,764 13.3 x n.m.

Jun-14 Mobile security and management

100 8.00-10.00 9.00 0.0% 22.4% 2.9% 683 4.0 x n.m.

Nov-13 Network security and data storage

64 18.00-21.00 18.00 (7.7%) 19.7% 113.7% 1,976 6.2 x 27.4 x

Sep-13 Forensics and malware protection

304 15.00-17.00 20.00 25.0% 80.0% 96.3% 6,267 10.1 x n.m.

Sep-12 Cloud security and compliance

91 11.00-13.00 12.00 0.0% 18.0% 287.3% 1,704 10.1 x 39.5 x

Jul-12 Firewalls and network security

260 38.00-40.00 42.00 7.7% 26.5% 247.8% 12,596 12.6 x n.m.

Apr-12 Communication security

82 10.00-12.00 13.00 18.2% 8.3% 355.5% 2,511 10.1 x n.m.

Feb-12 Antivirus and anti-spyware

128 16.00-18.00 16.00 (5.9%) (18.8%) 35.3% 1,243 3.0 x 8.1 x

Nov-11 Data centre security 90 14.00-16.00 18.00 20.0% 33.3% 137.2% 1,187 6.0 x n.m.

Cyber Security: Recent IPO Performances

26

Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 50x EV / EBITDA

Note: (1) Current increase from IPO price; Market data as of 31st March 2015

Source: Capital IQ

Nasdaq

Nasdaq

Nasdaq

Nasdaq

NYSE

NYSE

NYSE

NYSE

Nasdaq

Cyber Security: Valuation Benchmarks

27






Source: Capital IQ

1.9%

16.9%

13.5%

25.4%

14.7% 15.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Broadline Endpoint Network Data Monitoring

& Analysis

Global

Security

34.7%

18.7% 20.7%

(9.2%)

13.6%

19.1%

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


& Analysis

Global

Security

2.7 x 3.5 x

4.6 x

10.1 x

5.7 x

4.0 x

0.0 x

2.0 x

4.0 x

6.0 x

8.0 x

10.0 x

12.0 x


& Analysis

Global

Security

7.8 x 8.6 x

15.1 x

n.m.

39.5 x

11.6 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x

35.0 x

40.0 x

45.0 x


& Analysis

Global

Security

Cyber Security: Global M&A Activity

28 Sources: Press Releases, Capital IQ, Mergermarket and Results analysis

26 26 26 27

23 23

32

24

15

31

25

22

32

28 28

22

34

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

5

10

15

20

25

30

35

40

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Tota

l D

isc

lose

d D

ea

l V

alu

e (

$m

)

Nu

mb

er

of D

ea

ls

Number of Deals Total Disclosed Deal Value

Cyber Security: Selected Deals in Q1 2015

Date Buyer Target EV ($m) EV /

Revenue EV / EBITDA Company description

Target

Location

Mar-15 - - - Mobile VPN service for secure browsing

Mar-15 - - - Cloud and on premise digital document security

Mar-15 2,400 - - Enterprise security solutions against advanced threats

Mar-15 60 - - Predictive cyberthreat detection and prevention

Mar-15 - - - Containerised data security solutions

Mar-15 40 - - Firewall and intrusion detection software

Feb-15 - - - Online two-factor authentication software

Feb-15 80 - - CPU level threat prevention engine

Feb-15 - - - Email security and endpoint protection

Feb-15 - - - Data-centric security software

Feb-15 - - - Cloud security and encryption software

Feb-15 60 - - Secure cloud storage

Jan-15 - - - Cyberthreat intelligence platform

Jan-15 - - - Mobile security and risk analytics

Jan-15 - - - Identity and access management services

Jan-15 - - - Network vulnerabilities and exposures management

Jan-15 - - - Cloud-based email and web security

29

Note: Enterprise value (EV) = transaction value scaled to 100% shareholding plus net debt (includes minority interest)

Financials relate to the companies’ full fiscal year before the transaction took place

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

Cyber Security: Selected Fundraisings in Q1 2015



Company

headquarters

Mar-15 Venture 52.0 Andreessen Horowitz Enterprise security and systems

management

Mar-15 Series A 18.0 Hoxton Ventures, Talis Capital, Invoke Capital Partners Behavioural cyber defence technology

Mar-15 Series A 6.0 Costanoa Venture Capital, Rally Ventures, Paladin Capital Group, Blackbird

Ventures Crowdsourced security testing platform

Mar-15 Series B 30.0 Third Point Ventures, Mayfield Fund, Telstra, Pelion Ventures Cloud application security services

Mar-15 Series A 8.0 USVP, Plus Capital, Double M Capital, Core Ventures Group, Inventures

Group Application security solutions

Mar-15 Series A 9.8 March Capital Partners, Allegis Capital, The Hive Cybersecurity analytics

Mar-15 Series A 1.7 Inventures Group, Paua Ventures Web application security analytics

Feb-15 Series B 12.0 Telstra Ventures, TOYO Corporation, Sierra Ventures, Samsung Ventures Mobile threat defence

Mar-15 Venture 19.0 Blue Sky Capital, Rogers Venture Partners Identity and authentication solutions

Feb-15 Series B 25.0 GGV Capital, Icon Ventures, Kleiner Perkins Caulfield & Byers, Google

Ventures, Greylock Partners, Allegis Capital Crowd security intelligence platform

Feb-15 Venture 8.0 Strom Ventures, Passion Capital, TenEleven Ventures Cyberthreat intelligence

Feb-15 Series A 18.0 Alcatel-Lucent, Cisco Investments, Marker, Bessemer Venture Partners,

Innovation Endeavors Cybersecurity research lab

Feb-15 Venture 15.0 83North Venture Capital, Bessemer Venture Partners Secure mobile gateway and threat

prevention

Jan-15 Series B 15.0 Sequoia Capital, Index Ventures, EMC, Zohar Zisapel User activity auditing and threat

protection

Jan-15 Series C 14.1 DRW Ventures, Icon Ventures, Leapfrog Ventures, Math Venture Partners,

OVP Venture Partners, Pallasite Ventures, Tyco, Venrock Security risk management solutions

Jan-15 Series B 8.0 Harmony Partners, New Science Ventures, .406 Ventures Cloud data encryption platform

Jan-15 Series C 40.1 Jafco Ventures, TechOperators, Google Ventures, Meritech Capital, KPCB Data security platform

30

Sources: VentureSource, Capital IQ and Results analysis

Price % of 52 Market Total Net Enterprise Revenue Rev. Growth Gross Margin EBITDA Margin

Company (31-Mar-15) Week High Cap Cash Debt Value CY2015 CY15-16 Historical CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

Broadline

Symantec 23.37 85.5% 15,961 3,740 (1,645) 14,316 6,502 0.7% 82.8% 34.7% 35.0% 2.2 x 2.2 x 6.3 x 6.2 x

Trend Micro 32.99 90.5% 4,445 1,145 (1,145) 3,300 1,024 3.0% 82.1% 34.7% 34.3% 3.2 x 3.1 x 9.3 x 9.1 x

Endpoint

AVG Technologies 21.65 94.5% 1,117 139 126 1,243 421 8.7% 83.1% 36.3% 34.7% 3.0 x 2.7 x 8.1 x 7.8 x

CyberArk 55.57 78.8% 1,941 177 (177) 1,764 133 25.1% 85.7% 10.6% 11.8% 13.3 x 10.6 x n.m. n.m.

F-Secure 2.89 92.8% 455 66 (66) 389 162 3.8% 95.5% 26.7% 22.5% 2.4 x 2.3 x 9.0 x 10.3 x

MobileIron 9.26 71.5% 801 118 (118) 683 170 29.5% 81.8% (25.4%) (13.4%) 4.0 x 3.1 x n.m. n.m.

Network

Barracuda Networks 38.47 94.5% 2,142 171 (167) 1,976 317 15.6% 77.0% 22.7% 22.9% 6.2 x 5.4 x 27.4 x 23.6 x

Check Point Software 81.97 95.3% 15,065 1,312 (1,312) 13,753 1,621 7.8% 88.3% 56.1% 56.5% 8.5 x 7.9 x 15.1 x 13.9 x

Corero Network Security 0.17 43.3% 19 6 (6) 13 16 40.6% 65.1% 0.6% 9.3% 0.8 x 0.6 x n.m. 6.3 x

Fortinet 34.95 97.9% 6,116 720 (720) 5,396 925 17.6% 70.0% 16.4% 17.9% 5.8 x 5.0 x 35.5 x 27.6 x

F5 Networks 114.94 84.4% 7,387 654 (654) 6,733 1,994 11.4% 82.1% 38.4% 28.3% 3.4 x 3.0 x 8.8 x 10.7 x

Palo Alto Networks 146.08 97.1% 12,794 675 (198) 12,596 1,001 30.9% 73.3% 19.1% 24.3% 12.6 x 9.6 x n.m. 39.6 x

Radware 20.91 87.6% 942 104 (104) 837 248 10.7% 81.0% 22.4% 23.4% 3.4 x 3.1 x 15.1 x 13.0 x

Secunet 22.17 92.8% 143 40 (40) 103 89 10.3% 64.3% 10.1% 10.0% 1.2 x 1.1 x 11.6 x 10.6 x

Data

FireEye 39.25 59.8% 6,669 402 (402) 6,267 619 37.8% 58.9% (33.4%) (16.1%) 10.1 x 7.3 x n.m. n.m.

Imperva 42.70 74.3% 1,296 110 (110) 1,187 199 20.6% 77.7% (9.2%) (2.6%) 6.0 x 5.0 x n.m. n.m.

Proofpoint 59.22 97.5% 2,564 215 (53) 2,511 249 25.4% 66.4% 0.5% 6.3% 10.1 x 8.1 x n.m. n.m.

Monitoring & Analysis

Guidance Software 5.41 48.1% 162 18 (18) 144 110 5.7% 66.9% 1.5% 5.4% 1.3 x 1.2 x n.m. 23.1 x

Qualys 46.48 93.0% 1,832 127 (127) 1,704 168 23.8% 78.3% 25.6% 26.9% 10.1 x 8.2 x 39.5 x 30.4 x

25th percentile 76.6% 165 8.2% 68.4% 1.1% 7.8% 2.7 x 2.5 x 8.9 x 9.4 x

Median 90.5% 249 15.6% 78.3% 19.1% 22.5% 4.0 x 3.1 x 11.6 x 11.9 x

75th percentile 94.5% 963 25.3% 82.5% 30.7% 27.6% 9.3 x 7.6 x 21.3 x 23.4 x


Revenue EBITDA

Cyber Security: Selected Publicly Traded Companies

31


Source: Capital IQ


t +44 20 7629 7575 | f +44 20 7629 2233

www.resultsig.com

Chris Lewis

Managing Director

Di: +44 (0) 20 7514 8236


32

Mark Williams

Director

Di: +44 (0) 20 7514 8242


Disclaimer:





Contact Us


t +1 646 747 6500

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Pierre-Georges Roy

Partner

Di: +1 646 747 6505


Maurice Watkins

Partner

Di: +1 646 747 6500





34




• Founded in 1991


• 40 person team; 250+ completed transactions • Broad global network





50%

60%

70%

80%

90%

100%

110%

120%

130%

Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

NASDAQ Comp Diversified Internet MarTech Data AdTech

Results International Global AdTech & MarTech Indices

35

10.4%

(5.1%)

16.7%

0.6%

(40.9%)

Last

12 m

on

ths

sha

re p

ric

e p

erf

orm

an

ce

Q1 2015 Performance

Diversified Internet 6.2%

Nasdaq Comp 3.5%

Data 0.5%

MarTech (1.6%)

AdTech (18.9%)

Apr 14 May 14 Feb 15 Jan 15 Dec 14 Nov 14 Oct 14 Aug 14 Jul 14 Jun 14 Sep 14 Mar 15




(73.8%)

(2.6%) (9.0%)

2.9%

(40.5%)

(23.7%) (16.7%)

(79.0%)

(17.3%)

(74.8%) (78.5%)

19.5%

(43.2%)

97.4%

(29.0%) (22.6%) (25.4%)

56.2%

(4.9%)

59.6%

(21.6%)

2.1%

(46.2%)

8.7% 3.3%

(10.3%)

10.6%

(9.5%)

4.4%

36.5%

(0.5%)

23.8%

(100%)

(80%)

(60%)

(40%)

(20%)

-

20%

40%

60%

80%

100%

120%

11.3%

(2.3%)

(6.8%)

2.9%

(25.7%)

(14.2%) (16.7%)

(9.4%)

(31.8%)

(39.0%) (42.9%)

11.0%

(18.5%)

(38.7%)

3.0%

(29.7%)

(5.8%)

4.1% 5.8%

18.7%

(21.7%)

(0.4%)

(8.8%)

3.6% 2.7% 1.1%

19.9%

(14.2%)

2.8% 5.4% 4.5%

(12.0%)

(50%)

(40%)

(30%)

(20%)

(10%)

-

10%

20%

30%

AdTech & MarTech: Share Price Performance

36

AdTech Diversified Internet

Q1 2

015

Last

12 m

on

ths

sh

are

pric

e p

erf

orm

an

ce

MarTech Data

Note: (1) MaxPoint Interactive IPO’d on 5th March 2015, this price represents the increase between that date and 31st March 2015

Note: (2) 2015E Net Revenue data is unavailable

Note: (3) These companies have IPO’d within the last 12 months, this price represents the increase between their respective IPO date and 31st March 2015



EV/2015E

Net Revenue 0.4x 6.6x 4.2x 4.4x 1.3x

(1)

1.7x 1.1x 1.6x 3.7x 0.7x 5.1x 1.3x 2.0x 1.6x 3.0x 9.0x 8.1x 12.1x 5.1x 1.5x 4.9x 4.1x 2.3x 1.7x 1.7x 3.6x 6.2x 8.0x 12.9x - 1.4x - (2) (2)

(3)

(3)

(3) (3)

(3)

(3)

(3)

(3)

http://uk.tremorvideo.com/

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=eZ-_KQo9-ow3BM&tbnid=LU3R-z5avIx_YM:&ved=0CAgQjRwwAA&url=http://www.designboom.com/design/yahoo-unveils-brand-new-logo-design/&ei=P-kuUqKUE8eJ7Ab85YHQBw&psig=AFQjCNG-I-m4ZE5b63nsTcDztTU5jk4m2g&ust=1378892479376534

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&docid=qWwKuu5X6X-l_M&tbnid=krbJlSkCTzo8GM:&ved=0CAUQjRw&url=http://couponsinthenews.com/2013/09/02/ebays-new-coupon-policy-begins-and-nothing-changes/&ei=AuouUueULoSnhAfftoHwBQ&bvm=bv.51773540,d.ZGU&psig=AFQjCNG69hAalCWkXhi1rM6gGDbkv6VJQA&ust=1378892639832050

AdTech & MarTech: Selected Stocks – Performance Since IPO

37

Company IPO date Description Raised

($) Indicative price

range ($)

IPO listing

price ($)

Day 1

increase

Current

increase(1)

Current

EV ($)

EV / Net

Revenue

2015E

EV / EBITDA

2015E

Mar-15 Hyperlocal ad targeting 75 10.5-12.5 11.5 (15.1%) (16.7%) 208 n.a. n.a.

Oct-14 Marketing automation 125 22.0-24.0 25.0 20.4% 59.6% 1,303 8.1x n.m.

Sept-14 Multi-channel ad server 75 n.a. 1.7 0.8% (9.0%) 164 n.a. n.a.

Jul-14 Programmatic video DSP

44 7.0-8.0 7.0 64.3% 97.4% 411 5.1x n.m.

Jul-14 Multi-channel ad network

70 n.a. 3.9 4.4% (23.7%) 287 4.4x 17.0x

Apr-14 SSP 102 15.0-17.0 15.0 33.9% 19.5% 659 3.7x 31.4x

Nov-13 Multi-channel network 33 n.a. 1.0 20.0% (72.0%) 46 1.1x 8.6x

Oct-13 DSP focused on retargeting

251 27.0-29.0 31.0 14.2% 27.4% 2,138 6.6x 30.9x

Sep-13 DSP 116 27.0-29.0 29.0 93.4% (68.3%) 367 1.6x n.m.

Aug-13 Video ad network 46 12.0-14.0 9.0 0.0% (42.3%) 109 1.3x n.m.

Jun-13 Video ad network 75 11.0-13.0 10.0 (15.0%) (76.6%) 42 0.7x n.m.

May-13 Marketing automation 79 11.0-13.0 13.0 77.7% 97.1% 1,047 5.1x n.m.

Nasdaq

LSE

NYSE

AIM

Nasdaq

Nasdaq

NYSE

NYSE

Nasdaq

AIM

NYSE

Note: (1) Current increase from IPO price; Market data as of 31st March 2015

Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 60x EV / EBITDA


NYSE

http://uk.tremorvideo.com/

1.6 x

5.1 x

3.2 x

4.9 x

3.3 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

AdTech MarTech Data Diversified

Internet

Global AdTech/

MarTech

25.1% 26.3%

3.6%

11.9%

19.1%

-

5%

10%

15%

20%

25%

30%

AdTech MarTech Data Diversified

Internet

Global AdTech/

MarTech

AdTech & MarTech: Valuation Benchmarks

38

Revenue growth (2015-16E) EV / Net Revenue 2015E

(1) (1)

Note: (1) Global AdTech / MarTech represents the average of all stocks in AdTech, MarTech, Data & Diversified Internet, with no weighting applied


Note: Median values reported; exclude negative multiples


Source: Capital IQ & analyst reports

AdTech & MarTech: Global M&A Activity 2013-Q1 2015

39

Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

54

43

74

52

108

101

113

106

98

-

$1bn

$2bn

$3bn

$4bn

$5bn

$6bn

$7bn

0

20

40

60

80

100

120

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Tota

l dis

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Number of deals Total disclosed deal value ($bn)

AdTech & MarTech: Selected Deals in Q1 2015 Date Buyer Target EV ($m) EV / Revenue Company description Target location

Mar 15 100 4.3x Retargeting DSP

Mar 15 - - Cross-screen mobile DSP

Mar 15 - - Multi-channel optimisation & tracking mobile DSP

Mar 15 85 - Programmatic direct SSP

Mar 15 58 1.9x Mobile marketing optimisation

Mar 15 - - Personalised eCommerce search engine

Mar 15 - - Mobile ad network

Mar 15 195 5.6x DMP

Feb 15 - - Social commerce & networking

Feb 15 - - Creative optimisation & ad enablement

Feb 15 30 - App marketing SSP

Feb 15 - - Omni-channel shopper data & analytics

Feb 15 15 - Social media DSP

Jan 15 - - Data driven ad retargeting

Jan 15 - - eCommerce personalisation & recommendation

Jan 15 30 - Click-to-call mobile marketing & analytics

Jan 15 - - Ad exchange with DSP & SSP capabilities

Jan 15 125 6.3x B2B DMP

40

(1)

Note: (1) In certain cases EV/Revenue are estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV = transaction value scaled to

100% shareholding plus net debt (incl. minority interest)

Sources: Press Releases, Capital IQ, Mergermarket, PitchBook, 451 Research and Results analysis

AdTech & MarTech: Selected Fundraisings in Q1 2015



Company

headquarters

Mar 15 Series E 46 Battery Ventures, Intel Capital, and Iconiq Capital Social media management USA

Mar 15 Series B 24 Cheetah Mobile (lead investor), Avalon Ventures and Wellington

Management Co. Social and mobile ad automation USA

Mar 15 Series D 35 Sapphire Ventures (lead investor), Foundation Capital and Polaris Partners Mobile analytics & marketing for apps USA

Mar 15 Series D 130 Fidelity (lead investor), Wellington Management Company LLP, Credit Suisse

NEXT Investors, Venrock, Institutional Venture Partners and private investors Social media monitoring & analytics USA

Mar 15 Series C 45 Undisclosed Augmented reality mobile ads UK

Mar 15 Series C1 60 Alibaba (lead investor), SoftBank, GGV and Goldman Sachs Mobile app search engine USA

Mar 15 Series E 24 Silver Lake Waterman Social media listening & management USA

Feb 15 Series A 7 Highland Capital (lead investor), Endeavor Catalyst, Innova and NXTP Labs Data-driven mobile DSP UK

Feb 15 Series D 32 Adobe and Salesforce Ventures (lead investors), Cue Ball, Greycroft Partners,

Hillsven Capital and US Venture Partners Content curation USA

Feb 15 Series A 11 Octopus Investments and Notion Capital Social eCommerce UK

Feb 15 Series D 31 Georgian Partners (lead investors), Bain Capital, Battery Ventures, Tenaya

Capital and Presidio Ventures Tag management USA

Feb 15 Series C 16 Frog Capital (lead investor), Bertelsmann Digital Media Investments,

Greycroft, Sussex Place Ventures and Silicon Valley Bank Affiliate marketing UK

Feb 15 Series E 117

Fidelity Management and Research Company (lead investors), Marker

Financial Advisors, Steadfast Capital, Advance Publications, Comcast

Ventures; Groupe Arnault, Yahoo Japan and private investors

Content recommendation engine Israel

Jan 15 Series B 27 Icon Ventures (lead investor), Performance Equity Management and Accel

Partners Mobile app ad campaign analytics USA

Jan 15 Series B 21 StarVest Partners (lead investor), Citi Ventures, American Express Ventures and

Bain Capital Partners Marketing automation USA

Jan 15 Series B 20 Fidelity Growth Partners Europe (lead investor), Magma Venture Partners and

Pitango Venture Capital In-app mobile ad analytics Israel

Jan 15 Series D 55 Institutional Venture Partners (lead investor), Sequoia Capital, Greycroft

Partners and IDG Capital Partners App data & analytics USA

Jan 15 Series C 14 Gimv, Partech and Elaia and BPI Video SSP France

41 Notes: (1) Raised a total €12m Series C from the above investors and £10m from Bank of China, HSBC, BNPP and BPI

Source: Press Releases, Capital IQ, Mergermarket, PitchBook and Results analysis

(1)

AdTech & MarTech: Selected Publicly Traded Companies

42

Source: Capital IQ, Market Data as of 31 March 2015. Note: Calendarised to December year end. Cap multiple at 20x EV/Revenue and 60x EV/EBITDA. Net debt is inclusive of minority interest and preferred equity. Net revenues have been used where appropriate. Blinkx - financials taken from Numis (May 2014) & checked against company's financial results, market data taken from CapitalIQ; Criteo – financials taken from Jefferies (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; Marimedia – financials taken from N+1 Singer (Mar 15) & checked against company's financial results, market data taken from CapitalIQ; Matomy Media - financials taken from Canaccord Genuity (Mar 15) & checked against company's financial results, market data taken from CapitalIQ; Millennial Media – financials taken from Evercore (Sep 14) & checked against company's financial results, market data taken from CapitalIQ; Rightster - financials taken from Cenkos (Sep 14) & checked against company's financial results, market data taken from CapitalIQ; Rocket Fuel – financials taken from BMO Capital Markets (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; Tremor Video – financials taken from Jefferies (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; TubeMogul – financials taken from BMO Capital Markets (Mar 15) & checked against company's financial results, market data taken from CapitalIQ; YuMe – financials taken from Deutsche Bank (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; AOL – financials taken from Deutsche Bank (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; Google – financials taken from RBC Capital Markets (Mar 15) & checked against company's financial results, market data taken from CapitalIQ; Yahoo! – financials taken from Deutsche Bank (Feb 15) & checked against company's financial results, market data taken from CapitalIQ

Valuation Metrics Operating Metrics

Price % of 52 Market Net Enterprise Net Revenue EBITDA Revenue Growth EBITDA Margin

Company (31-Mar-15) Week High Cap Debt Value CY2015 CY2016 CY2015 CY2016 CY14-15 CY15-16 CY2015 CY2016

AdTech

Blinkx plc 0.44 25.8% 176 (115) 62 0.4 x 0.4 x 1.5 x 1.2 x 16.3% 15.1% 30.2% 31.4%

Criteo SA 39.50 84.9% 2,435 (297) 2,138 6.6 x 4.5 x 30.9 x 20.3 x 69.6% 44.9% 21.2% 22.3%

Crossrider Plc 1.52 90.5% 240 (76) 164 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Marimedia Ltd. 2.10 80.0% 143 (25) 118 4.2 x 3.3 x 7.3 x 5.8 x 48.9% 25.1% 56.9% 57.3%

Marin Software Incorporated 6.29 49.7% 231 (65) 166 1.4 x 1.2 x n.m. n.m. 15.7% 17.0% (9.8%) (4.1%)

Matomy Media Group Ltd. 2.96 78.3% 281 6 287 4.4 x 3.7 x 17.0 x 8.8 x 20.3% 20.7% 26.2% 41.8%

MaxPoint Interactive, Inc. 9.58 85.2% 252 (44) 208 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Millennial Media Inc. 1.45 20.3% 202 (48) 153 1.3 x 1.1 x n.m. n.m. 12.5% 23.6% (31.5%) (7.9%)

Opera Software ASA 8.04 61.2% 1,147 (75) 1,072 1.7 x 1.3 x 8.1 x 5.9 x 29.4% 28.0% 21.3% 22.8%

Rightster Group Plc 0.27 22.5% 52 (6) 46 1.1 x 0.7 x 8.6 x 2.8 x 220.0% 44.1% 12.5% 26.3%

Rocket Fuel Inc. 9.20 21.0% 387 (20) 367 1.6 x 1.3 x n.m. n.m. 71.7% 21.2% (15.5%) (9.1%)

The Rubicon Project, Inc. 17.92 77.2% 757 (97) 659 3.7 x 2.9 x 31.4 x 17.7 x 40.9% 28.6% 11.9% 16.4%

Tremor Video, Inc. 2.34 47.0% 120 (78) 42 0.7 x 0.5 x n.m. n.m. 7.3% 33.9% (28.6%) (13.1%)

TubeMogul, Inc. 13.82 58.0% 456 (45) 411 5.1 x 3.8 x n.m. n.m. 114.0% 34.9% (1.1%) (25.3%)

YuMe, Inc. 5.19 69.7% 173 (64) 109 1.3 x 1.1 x n.m. n.m. 20.1% 13.3% (3.6%) (5.1%)

MarTech

Bazaarvoice, Inc. 5.65 60.2% 449 (48) 401 2.0 x 1.8 x n.m. 32.3 x 9.9% 11.3% (0.4%) 5.5%

Brightcove Inc. 7.33 67.1% 240 (21) 218 1.6 x 1.5 x 36.2 x 23.2 x 6.7% 8.7% 4.5% 6.5%

Constant Contact, Inc. 38.21 88.5% 1,308 (163) 1,146 3.0 x 2.5 x 15.2 x 12.0 x 17.0% 16.8% 19.5% 21.1%

Demandware, Inc. 60.90 85.0% 2,338 (243) 2,096 9.0 x 6.7 x n.m. n.m. 45.5% 33.6% 4.5% 7.7%

HubSpot, Inc. 39.90 90.0% 1,427 (124) 1,303 8.1 x 6.4 x n.m. n.m. 39.2% 26.3% (22.2%) (15.9%)

Marketo, Inc. 25.62 71.9% 1,153 (106) 1,047 5.1 x 3.9 x n.m. n.m. 37.1% 31.1% (17.3%) (9.4%)

New Relic, Inc. 34.70 89.8% 1,839 (205) 1,635 12.1 x 9.2 x n.m. n.m. 40.3% 31.2% (26.7%) (12.2%)

Data

Acxiom Corporation 18.49 51.7% 1,429 169 1,598 1.5 x 1.5 x 7.4 x 6.5 x 0.3% 3.8% 20.6% 22.7%

Alliance Data Systems Corporation 296.25 98.2% 18,649 13,333 31,983 4.9 x 4.4 x 16.5 x 14.5 x 23.2% 11.7% 29.6% 30.1%

Experian plc 16.59 91.4% 16,143 3,840 19,983 4.1 x 3.9 x 11.7 x 11.2 x 1.1% 3.5% 34.8% 35.0%

Teradata Corporation 44.14 89.0% 6,602 (366) 6,236 2.3 x 2.2 x 9.2 x 8.4 x (1.5%) 3.4% 25.3% 26.8%

Diversified Internet

Amazon.com Inc. 372.10 95.6% 172,946 (1,327) 171,619 1.7 x 1.4 x 20.6 x 16.0 x 15.2% 17.5% 8.1% 8.9%

AOL Inc. 39.61 79.4% 3,202 (27) 3,175 1.7 x 1.8 x 7.7 x 7.2 x (0.9%) (3.0%) 22.7% 24.8%

eBay Inc. 57.68 94.7% 70,181 (2,471) 67,710 3.6 x 3.2 x 11.4 x 10.3 x 6.0% 10.8% 31.2% 31.2%

Facebook, Inc. 82.22 95.5% 231,126 (10,966) 220,160 12.9 x 9.7 x 21.1 x 16.0 x 37.4% 32.2% 60.9% 60.6%

Google Inc. 554.70 91.1% 379,997 (54,618) 325,379 6.2 x 5.4 x 12.3 x 11.1 x 22.1% 13.0% 49.9% 49.1%

Yahoo! Inc. 44.44 84.4% 41,835 (6,734) 35,101 8.0 x 8.1 x 46.8 x 55.3 x (0.6%) (2.1%) 17.0% 14.7%

25th percentile 1.6 x 1.4 x 8.3 x 7.1 x 7.9% 11.4% (3.0%) (4.8%)

Median 3.3 x 2.7 x 12.3 x 11.2 x 20.2% 19.1% 14.8% 18.8%

75th percentile 5.1 x 4.3 x 20.9 x 16.5 x 40.0% 30.5% 25.9% 29.3%

43

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