Septe
mber
20
14
Software Equity Group
Flash Report
Select M&A Transactions and Valuations and
Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet
Companies by Product Category
• Industry leading boutique investment bank, founded in
1992, representing public and private software and
internet companies seeking:
• Strategic exit
• Growth capital
• Buyout
• Inorganic growth via acquisition
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• Fairness opinions and valuations
• Sell-side client revenue range: $5 - 75 million
• Buy-side clients include private equity firms and
NASDAQ, NYSE and foreign exchange listed companies
• Clients span virtually every software technology, product
category, delivery model and vertical market
• Global presence providing advice and guidance to more
than 2,000 private and public companies throughout US,
Canada, Europe, Asia-Pacific, Africa and Israel
• Strong cross-functional team leveraging transaction,
operating, legal and engineering experience
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record.
• Highly referenceable base of past clients
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We Do Deals.
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SEG Research Distribution
Current Sell-side Representation
Recent Sell-side Representation
• SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia
• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa
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Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.
Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.
Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine.
To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.
Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please contact Kris Beible, Director, Business Development (858) 509-2800, [email protected] .
CONTACT INFORMATION:
Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.comp: (858) 509-2800
The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.
This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.
ABOUT SOFTWARE EQUITY GROUP
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
List of Commonly Used Acronyms
CRM Customer Relationship Management
EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization
ERP Enterprise Resource Planning
EV Enterprise Value
FCF Free Cash Flow
FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates
NASDAQ National Association of Securities Dealers Automated Quotation System
PLM Product Lifecycle Management
R&D Research and Development
S&P Standard & Poor's
SaaS Software-as-a-Service
SEG Software Equity Group
SG&A Selling, General, & Administrative
SW Software
TTM Trailing Twelve Month
YoY Year-over-Year
YTD Year-to-date
Removals:
Acquired by Oracle Corporation ($5.3 bn)
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
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SEG Index Changes
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Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Table of Contents
SEG Software Index
Select Software Industry M&A Transactions
SEG SaaS Index
SEG Internet Index
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
SEG Software Index
Select Software Industry M&A Transactions
SEG SaaS Index
SEG Internet Index
Select August 2014 Software Industry M&A Transactions
Date
Announced Target
Target TTM
Revenue
($mm)
Enterprise
Value
($mm)
EV/
Revenue
EV/
EBITDA
Aug-01-2014 PTL International Ltd. Apco Limited - - - -
Aug-01-2014 Oi Arcade Creative Limited - - - -
Aug-01-2014 Google Inc. (NasdaqGS:GOOGL) Baarzo, Inc. - - - -
Aug-01-2014 Exelis Inc. (NYSE:XLS) Barco Orthogon GmbH - $17.5 - -
Aug-01-2014 cloudControl Inc. Docker, Inc., DotCloud PaaS Business - - - -
Aug-01-2014 Project: WorldWide, Inc. Pitch - - - -
Aug-01-2014 - Simpel BV - - - -
Aug-01-2014 CYBERLINKS co.,LTD. (JASDAQ:3683) Smarts Japan Co., Ltd., SEIL Series
Business
- - - -
Aug-01-2014 Elite Group Alliance SQCC LLC - - - -
Aug-01-2014 Runge ICT Group Pty Limited VostroCloud - - - -
Aug-03-2014 Frontline Technologies Group LLC Aspex Solutions - - - -
Aug-03-2014 HumanTouch, LLC CorasWorks Corporation - - - -
Aug-03-2014 ALTABOX S.L. Focus on Emotions SL - - - -
Aug-04-2014 KPMG LLP AXIA Consulting, LLC., Workday Consulting Practice - - - -
Aug-04-2014 Gill Studios Inc. Barton Nelson, Inc. - - - -
Aug-04-2014 Revamp Corporation Bemool - - - -
Aug-04-2014 Square, Inc. Caviar - - - -
Aug-04-2014 Educational Credit Management Corporation College Abacus - - - -
Aug-04-2014 Possible Worldwide, LLC Double Encore, Inc $8.0 - - -
Aug-04-2014 Civica Pty Limited England Consulting Pty Ltd - - - -
Aug-04-2014 Rhapsody International Inc. Extension Entertainment, Inc. - - - -
Aug-04-2014 Legend Pictures, LLC Geek & Sundry - - - -
Aug-04-2014 BRQ IT Services InfoSolution - - - -
Aug-04-2014 Technology Nexus AB INTEGID GmbH - - - -
Aug-04-2014 PROACTIS Holdings PLC (AIM:PHD) Intelligent Capture Limited $2.4 $2.3 1.0x -
Aug-04-2014 Enghouse Systems Limited (TSX:ESL) Jinny Software Ltd. $22.7 $17.7 0.8x -
Aug-04-2014 State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank)LLC Interproject - - - -
Aug-04-2014 TractManager, Inc. MD Buyline, Inc. - - - -
Aug-04-2014 comScore, Inc. (NasdaqGS:SCOR) MdotLabs, Inc. - $4.5 - -
Aug-04-2014 Tune, Inc MobileDevHQ - - - -
Aug-04-2014 Taboola.com Ltd. Perfect Market, Inc. - - - -
Aug-04-2014 LexisNexis Risk Solutions, Inc. PoliceReports.US, LLC - - - -
Aug-04-2014 April-Six Limited Proof Communication Ltd. - - - -
Aug-04-2014 Continuum Managed Services, LLC Righteous Software, Inc. - - - -
Aug-04-2014 Rhapsody International Inc. Schematic Labs, Inc. - - - -
Aug-04-2014 InComm Holdings, Inc. SIRAS, Inc. - - - -
Aug-04-2014 BroadSoft, Inc. (NasdaqGS:BSFT) Systems Design & Development, Inc. - - - -
Aug-04-2014 The News Funnel, LLC The CRE App Review - - - -
Aug-05-2014 Rocket Fuel Inc. (NasdaqGS:FUEL) [x+1], Inc. $72.0 $236.0 3.3x -
Aug-05-2014 Tapjoy, Inc. 5Rocks, Inc. - - - -
Aug-05-2014 Foxit Software Incorporated Dataintro Software SL - - - -
Aug-05-2014 CityGro, Inc. Digital Blitz Marketing - - - -
Aug-05-2014 Segulah Advisor AB Docu Group Sweden AB $45.7 - - -
Aug-05-2014 Epic Games, Inc. Epic Games UK - - - -
Aug-05-2014 SurveyMonkey Inc. Fluidware - $20.0 - -
Aug-05-2014 Lamar Advertising Co. (NasdaqGS:LAMR) Marco Outdoor Advertising, Inc. - - - -
Aug-05-2014 Delivery Agent, Inc. Musictoday, LLC - - - -
Aug-05-2014 Ocean Outdoor Advertising Limited Signature Outdoor Ltd. - $25.3 - -
Aug-05-2014 Comverse, Inc. (NasdaqGM:CNSI) Solaiemes, S.L. - - - -
Aug-05-2014 Bullhorn, Inc. The Code Works Inc. - - - -
Aug-05-2014 Premier Healthcare Solutions, Inc. TheraDoc, Inc. - $117.0 - -
Acquirer
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Select August 2014 Software Industry M&A Transactions
Date
Announced Target
Target TTM
Revenue
($mm)
Enterprise
Value
($mm)
EV/
Revenue
EV/
EBITDA
Aug-05-2014 Yume Technology Co., Ltd. (JASDAQ:2458) Unitech Soft Inc. $3.7 $0.9 0.3x -
Aug-06-2014 u-blox Holding AG (SWX:UBXN) Advanced Network Technologies S.A. - $6.9 - -
Aug-06-2014 UpLexis Clip DO Ltda - - - -
Aug-06-2014 YouTube, LLC Directr, Inc. - - - -
Aug-06-2014 Coupons.com Incorporated (NYSE:COUP) Eckim, LLC - - - -
Aug-06-2014 Home Marketing Limited McGrath Rainey Laird Ltd. - - - -
Aug-06-2014 FuseMail, LLC MXSweep Limited - - - -
Aug-06-2014 Unee Solutions Inc. Omni West Research LLC - - - -
Aug-06-2014 BluePhoenix Solutions USA Inc. Sophisticated Business Systems, Inc. - $23.5 - -
Aug-06-2014 Alpheus Communications, L.P. StratITsphere Data Center Solutions LLC, Retail Colocation Business Unit - - - -
Aug-06-2014 Corindus Vascular Robotics Inc. Your Internet Defender, Inc. (OTCPK:CVRS) $0.0 - - -
Aug-07-2014 IHS Nigeria Plc (NGSE:IHS) Emerging Markets Telecommunication Services Limited, 2,136 Towers In Nigeria - - - -
Aug-07-2014 MSDSonline Inc. Knowledge Management Innovations, Ltd. - - - -
Aug-07-2014 Digital Payments plc M2 Systems Corporation - $14.6 - -
Aug-07-2014 Intuit Inc. (NasdaqGS:INTU) PaySuite Limited - - - -
Aug-07-2014 Facebook, Inc. (NasdaqGS:FB) PrivateCore Inc. - - - -
Aug-07-2014 Yahoo Japan Corporation (TSE:4689) Synergy Marketing, Inc. (JASDAQ:3859) $39.0 $66.2 1.7x 12.0x
Aug-08-2014 Alpine 4 Automotive Technologies, Ltd. AutoTek, Inc., LotWatch and ServiceWatch Technology - - - -
Aug-08-2014 Misys Limited Custom Credit Systems, L.P. - - - -
Aug-08-2014 Valtech SA (ENXTPA:LTE) Neon Stingray Private Limited - - - -
Aug-08-2014 Huobi Technology Co.,Ltd Quick Wallet - - - -
Aug-08-2014 Gemalto NV (ENXTAM:GTO) SafeNet, Inc. - $890.0 - -
Aug-09-2014 Beaqon Pte. Ltd. Pacific Wave Pte Ltd. - $1.7 - -
Aug-11-2014 Get Real USA, Inc. (OTCPK:GTRL) 1Bitcoin network Inc. - - - -
Aug-11-2014 Sizmek Inc. (NasdaqGS:SZMK) Aerify Media LLC - $6.3 - -
Aug-11-2014 Apax Partners LLP Answers Corporation - - - -
Aug-11-2014 CMI Marketing, Inc. BabyNameWizard.com and
NameCandy.com
- - - -
Aug-11-2014 International Risk Management Institute, Inc. Captive.com, LLC - - - -
Aug-11-2014 Command Alkon Incorporated FiveCubits Inc. - - - -
Aug-11-2014 Alten GmbH ICT Automatisering NV, German Activities - - - -
Aug-11-2014 International Business Machines Corporation (NYSE:IBM) Lighthouse Security Group, LLC - - - -
Aug-11-2014 Allgeier SE (XTRA:AEI) Metasonic AG - - - -
Aug-11-2014 Cloudberry Mobile AS Nextnet AS, 2.6 GHz Spectrum License - - - -
Aug-11-2014 Beeline International Company OnForce, Inc. - - - -
Aug-11-2014 BSM Technologies Inc. (TSXV:GPS) Praxis Transportation Solutions Inc. - $3.0 - -
Aug-11-2014 Asure Software, Inc. (NasdaqCM:ASUR) Roomtag, LLC - $1.7 - -
Aug-11-2014 Space Time Insight, Inc. UTILICASE Inc., EPS-M Software - - - -
Aug-11-2014 Thinking Phone Networks, Inc. Whaleback Systems Corporation - - - -
Aug-12-2014 Oodrive Group Active Circle SA - - - -
Aug-12-2014 SmileGate Inc. AfreecaTV Co., Ltd., Tales Runner Game Business $11.1 $2.9 - -
Aug-12-2014 CLEAResult Consulting, Inc. Applied Proactive Technologies, Inc. - - - -
Aug-12-2014 Singapore eDevelopment Limited (Catalist:5QZ) Cloudtel Pte. Ltd. - - - -
Aug-12-2014 LexisNexis Risk Solutions, Inc. Coplogic, Inc. - - - -
Aug-12-2014 AC Business Media Inc. Cygnus Business Media, Inc., Heavy Construction and Logistics Groups - - - -
Aug-12-2014 Cherwell Software, LLC Express Metrix, LLC - $10.0 - -
Aug-12-2014 Eventure Interactive, Inc. (OTCBB:EVTI) Gift Ya Now - - - -
Aug-12-2014 Manhattan Associates, Inc. (NasdaqGS:MANH) GlobalBay Technologies Inc. - - - -
Aug-12-2014 iQU B.V. HoneyTracks GmbH - - - -
Aug-12-2014 Singapore eDevelopment Limited (Catalist:5QZ) HotApps International Pte. Ltd. - $0.1 - -
Aug-12-2014 Mystery Researchers, LLC Insula Research, Inc. - - - -
Aug-12-2014 Beanstock Media, Inc. Lulo Ventures Inc. - - - -
Acquirer
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Select August 2014 Software Industry M&A Transactions
Date
Announced Target
Target TTM
Revenue
($mm)
Enterprise
Value
($mm)
EV/
Revenue
EV/
EBITDA
Aug-12-2014 SHE Software Ltd Mobile Safety Solutions Limited - - - -
Aug-12-2014 King Digital Entertainment plc (NYSE:KING) NonStop Games Ltd - $90.0 - -
Aug-12-2014 Kaseya International Shared Services Sàrl Scorpion Software Corp. - - - -
Aug-12-2014 IPG Mediabrands S.A. Traffic4u B.V. - - - -
Aug-12-2014 Ozonetel Systems Pvt.Ltd YantraSoft Inc., Speech Recognition Vertical - - - -
Aug-13-2014 Koninklijke KPN N.V. (ENXTAM:KPN) Argeweb BV - - - -
Aug-13-2014 Vocus Communications Limited (ASX:VOC) ASG Group Limited, Bentley Data Centre - $10.9 - -
Aug-13-2014 - Hands Empreendimentos, Ltda. - - - -
Aug-13-2014 IgnitionOne, Inc. Human Demand, Inc. - - - -
Aug-13-2014 B² Interactive LLC Hurrdat Social Media LLC - - - -
Aug-13-2014 JumpForward, LLC Innovative Sports Strategies, LLC - - - -
Aug-13-2014 Intel Corporation (NasdaqGS:INTC) LSI Corporation, Axxia Networking Business and Related Assets $113.0 $650.0 5.8x -
Aug-13-2014 TLT Lottotainment Group Limited (SEHK:8022) Worthy Victory Limited - $3.9 - -
Aug-14-2014 Daily Internet Plc (AIM:DAIP) Evohosting Ltd $0.7 $0.7 0.9x 2.5x
Aug-14-2014 RedeHost Internet Ltda. Mailee - - - -
Aug-14-2014 Wonders Information Co., Ltd (SZSE:300168) Ningbo KingT software Co., Ltd - $73.1 - -
Aug-14-2014 MYOB Finance NZ Limited PayGlobal Limited - - - -
Aug-14-2014 Samsung Electronics Co. Ltd. (KOSE:A005930) Physical Graph Corporation - - - -
Aug-14-2014 Lieferheld GmbH pizza.de GmbH - - - -
Aug-14-2014 5just (Dalian) Computer System Co.,Ltd Red Flag Software Co., Ltd. - $6.3 - -
Aug-14-2014 INFOR, INC. SalesLogix, N.A., LLC - - - -
Aug-14-2014 Song Liao Automotive Co., Ltd (SHSE:600715) Shanghai Douwan Network Technology Co., Ltd. $13.4 $232.0 17.3x -
Aug-14-2014 Sprinklr Inc. TBG Digital Limited - - - -
Aug-14-2014 Empirix, Inc. Verios Software & Systems Limited - - - -
Aug-15-2014 Beijing Tongtech Co., Ltd. (SZSE:300379) Beijing Hugeland Technologies Co., Ltd. $9.4 $68.3 7.3x -
Aug-15-2014 Yahoo! Inc. (NasdaqGS:YHOO) ClarityRay - - - -
Aug-15-2014 SMTP, Inc. (NasdaqCM:SMTP) InterInbox S.A. and ERNEPH 2012A (Pty) Ltd. and ERNEPH 2012B (Pty) Ltd. and Quattro Hosting LLC $4.0 $5.8 1.5x -
Aug-15-2014 Google Inc. (NasdaqGS:GOOGL) Jetpac Inc. - - - -
Aug-15-2014 Transformyx Inc. No Hassle Computing, LLC - - - -
Aug-15-2014 SMTP, Inc. (NasdaqCM:SMTP) SharpSpring, LLC - $15.0 - -
Aug-15-2014 EyeEm Mobile GmbH Sight.io - - - -
Aug-15-2014 SheKnows LLC StyleCaster Media Group LLC - - - -
Aug-17-2014 Realvolve, LLC Mark-It Systems, Inc., Advantage Xi - - - -
Aug-18-2014 Coinbase, Inc. Blockr.io - - - -
Aug-18-2014 Changepoint Corporation Daptiv, Inc. - - - -
Aug-18-2014 Search Optics LLC DigiGo - - - -
Aug-18-2014 Big Colors Limited GetViable Pty Ltd. - - - -
Aug-18-2014 Science Media LLC Hiq Lockscreen - - - -
Aug-18-2014 Fucata SA Nextel Chile $72.7 - - -
Aug-18-2014 Montagu Private Equity LLP Open International Limited - - - -
Aug-18-2014 SyQic Plc (AIM:SYQ) PlayTV Asia Sdn Bhd, Maaduu $0.3 $1.8 7.2x -
Aug-18-2014 Evolve24, LLC Sherpa, LLC - - - -
Aug-19-2014 Digital Dimension Aspserveur Sarl $4.7 - - -
Aug-19-2014 Sygic a.s. Be-On-Road App - - - -
Aug-19-2014 Gaming Realms plc (AIM:GMR) Blueburra Holdings Limited - $17.5 - -
Aug-19-2014 Shanghai Chenghai Enterprise Development Co., Ltd. (SHSE:600634) DIANDIAN Interacitve (Beijing) Technology Ltd. - $960.0 - -
Aug-19-2014 J. Stokes & Associates, Inc. EMC Creative - - - -
Aug-19-2014 Readyforce, Inc. HireBrite, LLC - - - -
Aug-19-2014 Datapipe, Inc. Layered Technologies, Inc. - - - -
Aug-19-2014 Fluendo S.A. LongoMatch - - - -
Aug-19-2014 Trimble Navigation Limited (NasdaqGS:TRMB) Manhattan Software Group Limited - - - -
Acquirer
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Select August 2014 Software Industry M&A Transactions
Date
Announced Target
Target TTM
Revenue
($mm)
Enterprise
Value
($mm)
EV/
Revenue
EV/
EBITDA
Aug-19-2014 Global Payout, Inc. (OTCPK:GOHE) Maxie Mobile, LLC - - - -
Aug-19-2014 Accelyst Solutions Pvt. Ltd. Preburn Pvt. Ltd. - - - -
Aug-19-2014 PT Valadoo Indonesia PT. Cipta Buru Sukses - - - -
Aug-19-2014 Kirusa, Inc. Saya Mobile Ltd - - - -
Aug-19-2014 FashionQlub BV shopVIP BV - - - -
Aug-20-2014 VMware, Inc. (NYSE:VMW) CloudVolumes, Inc. - - - -
Aug-20-2014 - Core (NI) Limited - - - -
Aug-20-2014 TeamSnap, Inc. Easy Team Manager - - - -
Aug-20-2014 Streamworks LLC Imagewerks Marketing - - - -
Aug-20-2014 GoDaddy Inc. Mad Mimi, LLC - - - -
Aug-20-2014 Polygraph Media Offergraph, LLC - - - -
Aug-20-2014 Screen Engine LLC Screen Engine/ASI - - - -
Aug-20-2014 - Technically Compatible Ltd - - - -
Aug-20-2014 GreaterGood.com, Inc. The FamilyPet Network - - - -
Aug-20-2014 Unity Technologies, Inc. Tsugi, Inc. - - - -
Aug-21-2014 Zomato Media Private Limited Creative Web, s.r.o., Obedovat.sk - $1.0 - -
Aug-21-2014 - deep AG - - - -
Aug-21-2014 ESO Solutions, Inc. JefBar Software Services, LLC - - - -
Aug-21-2014 National Auto Auction Association, Inc. Kink or Bend LLC - - - -
Aug-21-2014 Zomato Media Private Limited Lunchtime.cz s.r.o. - $2.3 - -
Aug-21-2014 Stream Networks SIA SIA Latnet Serviss $2.7 - - -
Aug-21-2014 Host Europe WVS Limited Sign-Up Technologies Ltd. - - - -
Aug-21-2014 SkillSoft Corporation SumTotal Systems, LLC - - - -
Aug-21-2014 Ticketfly, Inc. WillCall, Inc. - - - -
Aug-21-2014 Amris Limited Zao.com, Ltd. - - - -
Aug-22-2014 S&T AG (XTRA:GRO) Echelon Corporation, Grid Operations $40.3 $6.0 0.1x -
Aug-22-2014 The Riverside Company Lexipol, LLC - - - -
Aug-22-2014 Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) Mega-info Media Co.,Ltd. - $178.8 - -
Aug-22-2014 Hitcents Inc. Moonshark, Inc. - - - -
Aug-22-2014 PetHub, Inc. PetQRtag.com - - - -
Aug-22-2014 Delticom AG (XTRA:DEX) Toroleo Tyres GmbH & Co KG - - - -
Aug-22-2014 Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) XTone Animation Group - $203.2 - -
Aug-22-2014 Sonata Software Limited (BSE:532221); Sonata Software North America Inc.Xyka Software Pvt. Ltd. and Controlling Stake in Rezopia, Inc. - - - -
Aug-25-2014 Evalueserve SEZ (Gurgaon) Private Limited Beyond Data GmbH - - - -
Aug-25-2014 Dynamic Signal Inc. PaperShare, Inc. - - - -
Aug-25-2014 DraftKings, Inc. StarStreet, Inc. - - - -
Aug-25-2014 Amazon.com Inc. (NasdaqGS:AMZN) Twitch Interactive, Inc. - $970.0 - -
Aug-26-2014 IM Medical Ltd. (ASX:IMI) ADX Management Pty Ltd - $0.0 - -
Aug-26-2014 Super Rewards, Inc. deal united GmbH - - - -
Aug-26-2014 Auctane LLC Finale Inventory - - - -
Aug-26-2014 Veeder-Root Company Inc. FuelQuest, Inc. - - - -
Aug-26-2014 Centurion Securities and Investment Services Pty Ltd GoConnect Limited (ASX:GCN) $0.4 - - -
Aug-26-2014 Millward Brown UK Limited InsightExpress LLC $26.4 - - -
Aug-26-2014 GroupM SAS Keyade SAS $9.2 - - -
Aug-26-2014 Mailigen Limited Leadersend ltd. - - - -
Aug-26-2014 Funding Circle USA LeapPay Inc. - - - -
Aug-26-2014 Plus Consulting, Inc. Markinson Business Solutions Pty Ltd, Saleslogix Business Operations - - - -
Aug-26-2014 Tastebuds Media Ltd. moosify Inc. - - - -
Aug-26-2014 Homeexchange.Com Inc. Only in America Home Exchange - - - -
Aug-26-2014 Automattic Inc. Parka, LLC - - - -
Aug-26-2014 The Riverside Company The Database Marketing Agency Inc. - - - -
Acquirer
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Select August 2014 Software Industry M&A Transactions
Date
Announced Target
Target TTM
Revenue
($mm)
Enterprise
Value
($mm)
EV/
Revenue
EV/
EBITDA
Aug-26-2014 Google Inc. (NasdaqGS:GOOGL) ZYNC INC. - - - -
Aug-27-2014 SmartFocus SA Content Savvy Inc. - - - -
Aug-27-2014 Brazoria County Library System Gale, Inc., Gale Courses - - - -
Aug-27-2014 Tecmark Limited JDG MEDIA LTD. - - - -
Aug-27-2014 VLEX NETWORKS, S.L. Quolaw S.A. - - - -
Aug-27-2014 AAA Internet Publishing, Inc. Semlag - - - -
Aug-27-2014 SmartFocus SA TagPoints Ltd - - - -
Aug-27-2014 GL Education Group Limited The Test Factory Limited - - - -
Aug-28-2014 Monecor (London) Limited Ariel Communications Ltd - - - -
Aug-28-2014 AllOver Media, Inc. Brite Media Group LLC, Gas Station Radio - - - -
Aug-28-2014 ICube Technology Holdings Limited (SEHK:139) Jifutong Payment Company Limited - $77.4 - -
Aug-28-2014 Global Links Corp. (OTCPK:GLCO) MainStreetChamber LLC - - - -
Aug-28-2014 DNA Connect Pty Ltd. PushPull Marketing Pty Ltd - - - -
Aug-28-2014 Direct ChassisLink, Inc. REZ-1, Inc. - - - -
Aug-28-2014 Good Squire Marketing, Inc. Social FlyWay - - - -
Aug-28-2014 Alternative Energy & Environmental Solutions, Inc.
(OTCBB:ALNE)Zaycon Foods LLC - - - -
Aug-29-2014 Iponweb Limited Adternity GmbH - - - -
Aug-29-2014 Affle Holdings Private Limited AppStudioz Technologies Pvt. Ltd. $1.0 - - -
Aug-29-2014 Intema Solutions Inc. (TSXV:ITM) Cabestan-Canada, Portfolio of Client Contracts and Related Assets - - - -
Aug-29-2014 Morpho SA Dictao Siege - - - -
Aug-29-2014 Kenyon Fraser Ltd. Gavin and Page - - - -
Aug-29-2014 - Imacom SARL - - - -
Aug-29-2014 Crowd Mobile Pty Ltd Q Limited (ASX:QXQ) $0.1 - - -
Aug-29-2014 Canon Marketing Japan Inc. (TSE:8060) AZE, Ltd. - - - -
Aug-29-2014 Zhangjiagang Chemical Machinery Co., Ltd. (SZSE:002564) Shanghai Baoku Network Technology Co Ltd - $170.9 - -
Aug-29-2014 General Word Ventures, LLC Educational Holdings, LLC - - - -
Aug-29-2014 OmniEarth Inc. IRISmaps, Inc. - - - -
Aug-29-2014 Blackbaud Inc. (NasdaqGS:BLKB) MicroEdge, LLC - $160.0 - -
Aug-29-2014 Omnitracs, LLC XRS Corporation (NasdaqCM:XRSC) $53.0 $177.5 3.4x 28.9x
Aug-29-2014 U.S. Department of Labor Global Computer Enterprises Inc., Certain Assets - $5.3 - -
Aug-29-2014 General Services Administration Global Computer Enterprises Inc., Remaining Certain Assets - $18.3 - -
Aug-29-2014 Control4 EMEA Limited Extra Vegetables Limited - $0.7 - -
Acquirer
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
SEG Software Index
Select Software Industry M&A Transactions
SEG SaaS Index
SEG Internet Index
SEG Software Index: All Categories
Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
SEG Software Index $2,021.1 $2,002.6 $757.7 62.3% 19.2% 6.4% 3.2x 15.3x 2.9x 11.5x 3.1%
Billing & Service Management $961.5 $1,032.3 $388.9 56.3% 21.1% 8.2% 2.0x 9.8x 2.0x 9.1x 0.2%
Business Intelligence $1,570.1 $1,202.5 $508.6 77.1% 5.1% 14.2% 2.9x 18.4x 2.8x 15.0x -9.2%
Development Platforms $2,048.0 $2,002.6 $983.5 69.4% 19.2% 2.1% 2.7x 15.6x 2.8x 8.6x 4.3%
Engineering & PLM $5,113.4 $4,891.4 $1,189.0 82.9% 19.0% 6.4% 3.4x 15.8x 3.8x 11.6x 1.2%
Enterprise Resource Planning $7,049.3 $7,647.4 $2,207.7 61.3% 29.5% 2.9% 3.5x 11.8x 3.4x 10.6x 3.6%
Financial & Accounting $2,021.1 $2,481.5 $757.7 56.6% 26.0% 2.5% 3.5x 13.7x 3.3x 11.5x -5.5%
Gaming $2,587.6 $2,456.3 $2,255.7 63.0% 15.6% 0.2% 1.4x 12.2x 1.4x 8.8x 26.5%
Healthcare $1,196.1 $1,527.7 $568.1 54.0% 14.1% 1.1% 2.2x 15.3x 2.1x 10.7x 3.4%
IT Conglomerates $185,011.5 $170,928.5 $86,833.0 61.3% 34.5% 2.2% 3.6x 9.7x 3.1x 8.3x 10.8%
Mobile Solutions/Content $709.6 $609.7 $319.3 58.9% -0.3% 21.1% 2.8x 20.5x 1.9x 12.5x 3.1%
Networking & Network Performance Management $1,279.3 $1,142.6 $243.7 69.2% 4.0% 8.5% 2.5x 21.0x 2.3x 10.0x -2.7%
Security $1,099.4 $1,008.5 $208.3 76.5% 7.0% 15.2% 3.2x 12.0x 2.9x 13.9x -11.0%
Storage, Data Mgmt & Integration $9,481.2 $7,473.0 $3,347.4 70.0% 20.7% 4.2% 2.8x 10.0x 2.8x 8.2x 4.2%
Supply Chain Management & Logistics $1,611.5 $1,549.1 $277.0 62.3% 28.1% 16.4% 5.5x 19.4x 5.0x 16.7x -1.4%
Systems Management $11,537.7 $10,967.0 $2,321.3 85.5% 25.3% 15.4% 5.4x 19.7x 4.7x 12.9x 11.3%
Vertical - Finance $4,273.8 $4,540.6 $909.1 44.4% 29.3% 6.3% 4.4x 13.7x 4.1x 12.3x 4.2%
Vertical - Other $1,249.0 $1,355.7 $402.5 49.3% 10.7% 16.9% 3.7x 25.3x 3.2x 17.8x -5.9%
TTM Revenue Growth 7.1%
TTM EBITDA Growth -24.8%
TTM Earnings Growth -35.9%
Gross Profit Margin 67.9%
EBITDA Margin 18.3%
Net Income Margin -16.6%
SG&A Expenses as a % of Total Revenue 58.4%
R&D Expenses as a % of Total Revenue 19.4%
Current Ratio 2.2
Quick Ratio 2.1
Cash as Percent of Market Cap 11.6%
Avg Days Outstanding: Accounts Receivable 65
Avg Days Outstanding: Accounts Payable 29
Working Capital to TTM Operating Expense Ratio 0.6x
Levered FCF Margin 6.5%
Cash from Operations Growth (YoY) 27.2%
Cash from Investing Growth (YoY) -38.0%
Cash from Financing Growth (YoY) 82.0%
Levered FCF Growth (YoY) 33.1%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Category Name
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
SEG SW Index Software Stock Market Return: January - August 2014
DOW S&P NASDAQ SEG SW Index
SEG Software Index Category: Billing and Service Management
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Amdocs Limited DOX $7,467.6 $6,293.0 $3,508.6 35.3% 18.3% 5.6% 1.8x 9.8x 1.7x 8.6x 16.3%
CSG Systems International, Inc. CSGS $961.5 $1,032.3 $753.3 48.5% 16.0% -0.2% 1.4x 8.6x 1.3x 6.7x -3.9%
Evolving Systems, Inc. EVOL $109.9 $97.5 $27.2 72.3% 24.6% 3.9% 3.6x 14.6x 3.0x 9.5x 0.2%
MIND C.T.I. Ltd. MNDO $59.6 $42.8 $21.6 56.3% 21.1% 16.7% 2.0x 9.4x n/a n/a 73.1%
NeuStar, Inc NSR $1,654.2 $2,201.8 $932.6 75.1% 37.6% 8.2% 2.4x 6.3x 2.3x 4.7x -40.5%
Redknee Solutions TSX:RKN $364.0 $314.2 $254.2 49.8% 1.2% 156.4% 1.2x 101.7x 1.2x 9.8x -44.0%
Synchronoss Technologies, Inc. SNCR $1,846.2 $1,775.0 $388.9 58.9% 25.7% 27.8% 4.6x 17.7x 3.6x 10.8x 48.7%
Median: $961.5 $1,032.3 $388.9 56.3% 21.1% 8.2% 2.0x 9.8x 2.0x 9.1x 0.2%
TTM Revenue Growth 8.2%
TTM EBITDA Growth -3.3%
TTM Earnings Growth -4.1%
Gross Profit Margin 56.3%
EBITDA Margin 21.1%
Net Income Margin 11.7%
SG&A Expenses as a % of Total Revenue 21.1%
R&D Expenses as a % of Total Revenue 14.0%
Current Ratio 2.7
Quick Ratio 2.5
Cash as Percent of Market Cap 15.7%
Avg Days Outstanding: Accounts Receivable 74
Avg Days Outstanding: Accounts Payable 23
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 9.2%
Cash from Operations Growth (YoY) -5.4%
Cash from Investing Growth (YoY) -133.7%
Cash from Financing Growth (YoY) -0.4%
Levered FCF Growth (YoY) -7.6%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Billing and Service Management Software Stock Market Return: January - August 2014
Billing & Service Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Business Intelligence
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Actuate Corporation BIRT $205.9 $146.9 $115.3 85.0% 2.2% -16.2% 1.3x 58.9x 1.5x n/a -41.7%
MicroStrategy Incorporated MSTR $1,570.1 $1,202.5 $587.6 77.1% 5.1% 4.9% 2.0x 40.2x 2.0x 23.9x 12.5%
Pegasystems Inc. PEGA $1,694.1 $1,477.8 $558.8 68.8% 14.4% 16.7% 2.6x 18.4x 2.3x 15.0x -9.2%
Progress Software Corporation PRGS $1,173.3 $946.7 $323.9 90.8% 29.3% -0.8% 2.9x 10.0x 2.8x 7.8x -9.3%
PROS Holdings PRO $741.7 $713.8 $161.0 69.0% -0.6% 22.1% 4.4x n/a 3.4x 19.8x -34.9%
Qlik Technologies QLIK $2,538.6 $2,283.5 $508.6 86.3% 1.7% 18.8% 4.5x 270.0x 3.9x 51.2x 12.3%
Varonis Systems, Inc. VRNS $583.0 $462.8 $86.3 90.5% -14.0% 38.0% 5.4x n/a 4.2x n/a -45.9%
Verisk VRSK $10,686.0 $11,538.2 $1,661.8 59.8% 45.4% 14.2% 6.9x 15.3x 6.2x 13.3x -1.4%
Teradata NYSE:TDC $7,078.9 $6,369.9 $2,739.0 54.5% 23.2% 3.6% 2.3x 10.0x 2.2x 7.6x 2.1%
Median: $1,570.1 $1,202.5 $508.6 77.1% 5.1% 14.2% 2.9x 18.4x 2.8x 15.0x -9.2%
TTM Revenue Growth 14.2%
TTM EBITDA Growth 5.3%
TTM Earnings Growth -73.9%
Gross Profit Margin 77.1%
EBITDA Margin 5.1%
Net Income Margin 2.8%
SG&A Expenses as a % of Total Revenue 49.7%
R&D Expenses as a % of Total Revenue 18.5%
Current Ratio 1.9
Quick Ratio 1.8
Cash as Percent of Market Cap 13.2%
Avg Days Outstanding: Accounts Receivable 93
Avg Days Outstanding: Accounts Payable 61
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 13.2%
Cash from Operations Growth (YoY) 3.7%
Cash from Investing Growth (YoY) -70.1%
Cash from Financing Growth (YoY) -39.7%
Levered FCF Growth (YoY) 34.4%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Business Intelligence Software Stock Market Return: January - August 2014
Business Intelligence S&P NASDAQ SEG SW Index
SEG Software Index Category: Development Platforms
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Actuate Corporation BIRT $205.9 $146.9 $115.3 85.0% 2.2% -16.2% 1.3x 58.9x 1.5x n/a -41.7%
Adobe Systems Incorporated ADBE $35,761.3 $33,937.3 $4,105.1 85.4% 18.2% -3.5% 8.3x 45.4x 7.7x 26.2x 21.3%
BSQUARE Corporation BSQR $44.1 $20.0 $95.2 16.6% 0.3% 1.2% 0.2x 83.6x n/a n/a 4.7%
Compuware Corporation CPWR $2,058.3 $1,798.7 $714.5 67.7% 12.0% 6.9% 2.5x 21.0x 2.5x 8.6x -14.1%
Magic Software Enterprises Ltd. MGIC $317.8 $232.5 $158.4 40.4% 19.2% 16.0% 1.5x 7.6x 1.3x n/a 3.9%
Microsoft Corporation MSFT $374,336.3 $312,610.3 $86,833.0 69.0% 37.0% 11.5% 3.6x 9.7x 3.1x 9.0x 24.8%
Oracle Corporation ORCL $185,011.5 $170,928.5 $38,275.0 61.3% 43.7% 2.9% 4.5x 10.2x 4.3x 8.3x 10.8%
Progress Software Corporation PRGS $1,173.3 $946.7 $323.9 90.8% 29.3% -0.8% 2.9x 10.0x 2.8x 7.8x -9.3%
Red Hat, Inc. RHT $11,519.7 $10,716.5 $1,595.1 84.9% 19.2% 15.8% 6.7x 35.0x 5.8x 21.3x 9.1%
Software AG XTRA:SOW $2,037.7 $2,206.5 $1,252.5 69.8% 23.6% -8.2% 1.8x 7.5x 2.0x 7.1x -22.8%
Median: $2,048.0 $2,002.6 $983.5 69.4% 19.2% 2.1% 2.7x 15.6x 2.8x 8.6x 4.3%
TTM Revenue Growth 2.1%
TTM EBITDA Growth 0.3%
TTM Earnings Growth -8.4%
Gross Profit Margin 69.4%
EBITDA Margin 19.2%
Net Income Margin 10.9%
SG&A Expenses as a % of Total Revenue 42.9%
R&D Expenses as a % of Total Revenue 13.3%
Current Ratio 2.0
Quick Ratio 1.9
Cash as Percent of Market Cap 20.9%
Avg Days Outstanding: Accounts Receivable 77
Avg Days Outstanding: Accounts Payable 29
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 20.7%
Cash from Operations Growth (YoY) 8.4%
Cash from Investing Growth (YoY) -68.1%
Cash from Financing Growth (YoY) 39.2%
Levered FCF Growth (YoY) 29.2%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Development Platforms Software Stock Market Return: January - August 2014
Development Platforms S&P NASDAQ SEG SW Index
SEG Software Index Category: Engineering & PLM
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
ANSYS, Inc. ANSS $7,480.9 $6,697.3 $896.3 87.4% 46.5% 8.0% 7.5x 16.1x 6.7x 13.7x -5.5%
Autodesk, Inc. ADSK $12,160.2 $11,000.6 $2,371.4 87.1% 15.3% 3.7% 4.6x 30.3x 4.4x 22.4x 8.9%
Cadence Design Systems, Inc CDNS $5,113.4 $4,891.4 $1,500.7 85.3% 19.0% 7.1% 3.3x 17.2x 3.0x 8.9x 25.8%
Cimatron Ltd. CIMT $69.7 $49.3 $45.8 86.7% 15.2% 6.4% 1.1x 7.1x 1.0x n/a -29.6%
Dassault Systèmes DSY $16,723.8 $15,479.4 $2,899.4 86.8% 28.6% 2.3% 5.3x 18.7x 4.8x 15.0x 8.6%
GSE Systems Inc. GVP $30.1 $11.9 $41.1 28.1% -10.4% -16.2% 0.3x n/a n/a n/a 3.7%
Mentor Graphics Corp MENT $2,484.5 $2,554.6 $1,189.0 82.9% 19.1% 10.1% 2.1x 11.3x 2.0x 8.1x -7.5%
Parametric Technology Corporation PTC $4,538.7 $4,549.5 $1,335.1 72.3% 23.7% 4.8% 3.4x 14.4x 3.3x 11.6x 11.5%
PDF Solutions Inc PDFS $616.2 $509.3 $104.3 63.0% 35.4% 9.5% 4.9x 13.8x 4.2x 9.3x -20.3%
Stratasys, Inc. SSYS $5,930.3 $5,352.4 $610.1 50.5% 14.6% 88.0% 8.8x 60.0x 6.0x 25.0x -10.5%
Synopsys Inc SNPS $6,373.3 $5,552.7 $2,023.3 82.5% 17.8% 5.8% 2.7x 15.4x 2.6x 8.4x 1.2%
Median: $5,113.4 $4,891.4 $1,189.0 82.9% 19.0% 6.4% 3.4x 15.8x 3.8x 11.6x 1.2%
TTM Revenue Growth 6.4%
TTM EBITDA Growth 7.4%
TTM Earnings Growth 20.2%
Gross Profit Margin 82.9%
EBITDA Margin 19.0%
Net Income Margin 12.0%
SG&A Expenses as a % of Total Revenue 36.2%
R&D Expenses as a % of Total Revenue 17.8%
Current Ratio 2.0
Quick Ratio 1.9
Cash as Percent of Market Cap 12.8%
Avg Days Outstanding: Accounts Receivable 82
Avg Days Outstanding: Accounts Payable 40
Working Capital to TTM Operating Expense Ratio 0.5x
Levered FCF Margin 19.2%
Cash from Operations Growth (YoY) 12.2%
Cash from Investing Growth (YoY) -97.5%
Cash from Financing Growth (YoY) -120.7%
Levered FCF Growth (YoY) 28.8%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-15%
-10%
-5%
0%
5%
10%
15%Engineering & PLM Software Stock Market Return: January - August 2014
Engineering & PLM S&P NASDAQ SEG SW Index
SEG Software Index Category: Enterprise Resource Planning
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
American Software, Inc. AMSW.A $259.9 $199.3 $102.1 56.9% 15.9% 4.4% 2.0x 12.3x 1.8x 9.3x -4.4%
Oracle Corporation ORCL $185,011.5 $170,928.5 $38,275.0 61.3% 43.7% 2.9% 4.5x 10.2x 4.3x 8.3x 10.8%
QAD Inc. QADA $316.7 $256.7 $280.7 55.7% 5.7% 10.3% 0.9x 16.1x 0.9x 11.3x 23.4%
Sage Group plc LSE:SGE $7,049.3 $7,647.4 $2,207.7 94.3% 29.5% -3.7% 3.5x 11.7x 3.4x 11.4x 3.6%
SAP DB:SAP $93,044.6 $94,493.4 $23,274.7 72.4% 34.5% 2.2% 4.1x 11.8x 4.0x 10.6x -5.9%
Median: $7,049.3 $7,647.4 $2,207.7 61.3% 29.5% 2.9% 3.5x 11.8x 3.4x 10.6x 3.6%
TTM Revenue Growth 2.9%
TTM EBITDA Growth 14.5%
TTM Earnings Growth 13.5%
Gross Profit Margin 61.3%
EBITDA Margin 29.5%
Net Income Margin 18.0%
SG&A Expenses as a % of Total Revenue 32.3%
R&D Expenses as a % of Total Revenue 13.3%
Current Ratio 1.2
Quick Ratio 1.0
Cash as Percent of Market Cap 21.0%
Avg Days Outstanding: Accounts Receivable 72
Avg Days Outstanding: Accounts Payable 18
Working Capital to TTM Operating Expense Ratio 0.1x
Levered FCF Margin 20.4%
Cash from Operations Growth (YoY) -6.5%
Cash from Investing Growth (YoY) 35.8%
Cash from Financing Growth (YoY) 44.8%
Levered FCF Growth (YoY) 8.3%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%Enterprise Resource Planning Software Stock Market Return: January - August 2014
Enterprise Resource Planning S&P NASDAQ SEG SW Index
SEG Software Index Category: Financial & Accounting
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
ACI Worldwide, Inc. ACIW $2,221.1 $2,925.9 $973.4 56.8% 21.7% 30.3% 3.0x 13.9x 2.6x 9.9x -7.3%
Bottomline Technologies EPAY $1,112.9 $1,070.3 $300.6 56.6% 11.1% 18.0% 3.6x 32.1x 3.2x 14.2x -19.5%
DST Systems, Inc. DST $3,687.6 $4,276.1 $2,682.4 17.0% 15.8% 2.0% 1.6x 10.1x 2.1x 8.9x 4.0%
Evertec EVTC $1,810.7 $2,481.5 $359.1 56.9% 41.7% 2.2% 6.9x 16.6x 6.5x 13.0x -7.5%
Fair Isaac Corporation FICO $1,870.1 $2,307.0 $757.7 69.0% 26.0% 2.5% 3.0x 11.7x 2.9x 11.4x -5.5%
Fiserv FISV $16,067.1 $19,586.1 $4,951.0 43.3% 29.3% 7.6% 4.0x 13.5x 3.8x 11.5x 10.8%
Intuit Inc INTU $23,613.7 $22,198.7 $4,506.0 85.8% 33.0% 8.0% 4.9x 14.9x 5.1x 17.4x 10.3%
Model N, Inc MODN $229.7 $126.5 $89.2 54.1% -11.6% -8.3% 1.4x n/a 1.5x n/a -18.6%
NetSol Technologies Inc. KASE:NETSOL $21.3 $23.3 $25.9 33.1% 15.2% -17.9% 0.9x 5.9x n/a n/a 26.5%
Sage Group plc LSE:SGE $7,049.3 $7,647.4 $2,207.7 94.3% 29.5% -3.7% 3.5x 11.7x 3.4x 11.4x 3.6%
Qiwi plc QIWI $2,021.1 $1,626.4 $382.8 48.1% 27.5% 26.3% 4.2x 15.4x 6.6x 12.4x -31.4%
Median: $2,021.1 $2,481.5 $757.7 56.6% 26.0% 2.5% 3.5x 13.7x 3.3x 11.5x -5.5%
TTM Revenue Growth 2.5%
TTM EBITDA Growth 8.8%
TTM Earnings Growth 21.8%
Gross Profit Margin 56.6%
EBITDA Margin 26.0%
Net Income Margin 14.4%
SG&A Expenses as a % of Total Revenue 30.1%
R&D Expenses as a % of Total Revenue 14.7%
Current Ratio 1.3
Quick Ratio 1.0
Cash as Percent of Market Cap 5.0%
Avg Days Outstanding: Accounts Receivable 66
Avg Days Outstanding: Accounts Payable 36
Working Capital to TTM Operating Expense Ratio 0.1x
Levered FCF Margin 17.0%
Cash from Operations Growth (YoY) 28.8%
Cash from Investing Growth (YoY) 37.7%
Cash from Financing Growth (YoY) -95.3%
Levered FCF Growth (YoY) 32.0%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-15%
-10%
-5%
0%
5%
10%
15%
Financial & Accounting Software Stock Market Return: January - August 2014
Financial & Accounting S&P NASDAQ SEG SW Index
SEG Software Index Category: Gaming
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Activision Blizzard ATVI $16,889.5 $17,006.5 $4,289.0 65.1% 27.2% -13.9% 4.0x 14.6x 3.5x 10.3x 31.5%
Electronic Arts Inc. EA $11,829.3 $10,099.3 $3,840.0 60.9% 9.5% 1.3% 2.6x 27.6x 2.4x 10.8x 65.7%
GameLoft SA ENXTPA:GFT $545.6 $466.3 $322.0 82.7% 12.0% 5.7% 1.4x 12.1x 1.4x 8.3x -40.9%
Konami Corporation TSE: 9766 $3,212.7 $3,128.8 $2,178.1 30.2% 11.6% -0.8% 1.4x 12.3x 1.3x 9.2x 0.9%
Take-Two Interactive TTWO $1,962.4 $1,580.4 $2,333.3 41.1% 19.3% 106.3% 0.7x 3.5x 1.0x 8.1x 34.1%
Ubisoft Entertainment ENXTPA:UBI $1,764.3 $1,783.8 $1,387.6 71.7% 32.9% -19.8% 1.3x 3.9x 0.9x 2.3x 21.5%
Median: $2,587.6 $2,456.3 $2,255.7 63.0% 15.6% 0.2% 1.4x 12.2x 1.4x 8.8x 26.5%
TTM Revenue Growth 0.2%
TTM EBITDA Growth -10.0%
TTM Earnings Growth -28.6%
Gross Profit Margin 63.0%
EBITDA Margin 15.6%
Net Income Margin 2.8%
SG&A Expenses as a % of Total Revenue 26.8%
R&D Expenses as a % of Total Revenue 29.0%
Current Ratio 3.2
Quick Ratio 2.4
Cash as Percent of Market Cap 19.1%
Avg Days Outstanding: Accounts Receivable 41
Avg Days Outstanding: Accounts Payable 26
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 11.3%
Cash from Operations Growth (YoY) -8.6%
Cash from Investing Growth (YoY) -56.6%
Cash from Financing Growth (YoY) 54.5%
Levered FCF Growth (YoY) 104.8%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Gaming Software Stock Market Return: January - August 2014
Gaming S&P NASDAQ SEG SW Index
SEG Software Index Category: Healthcare
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Accretive Health AH $14,472.4 $15,789.7 $43,570.6 26.6% 6.5% -3.1% 0.4x 5.5x 0.4x 5.6x 0.3%
Allscripts Healthcare Solutions Inc. MDRX $2,661.9 $3,181.7 $1,372.7 46.0% 2.1% -2.2% 2.3x 108.1x 2.2x 12.8x -4.0%
Cerner Corporation CERN $19,665.2 $18,831.8 $3,074.9 84.8% 26.2% 13.4% 6.1x 23.4x 5.2x 15.1x 4.7%
Computer Programs and Sys, Inc. CPSI $688.7 $664.7 $203.2 47.1% 27.9% 3.7% 3.3x 11.7x 3.1x 10.6x 4.1%
MedAssets MDAS $1,382.3 $2,172.0 $683.1 76.9% 29.6% 1.8% 3.2x 10.7x 3.0x 8.9x 17.5%
Merge Healthcare MRGE $248.8 $456.6 $215.6 59.4% 13.4% -12.3% 2.1x 15.8x 2.1x 10.8x 2.8%
Omnicell, Inc. OMCL $1,009.8 $883.4 $406.6 53.9% 14.7% 14.4% 2.2x 14.7x 2.0x 10.2x 12.3%
Quality Systems, Inc. QSII $943.1 $826.6 $453.0 54.0% 11.3% 0.3% 1.8x 16.1x 1.7x 10.8x -22.9%
Median: $1,196.1 $1,527.7 $568.1 54.0% 14.1% 1.1% 2.2x 15.3x 2.1x 10.7x 3.4%
TTM Revenue Growth 1.1%
TTM EBITDA Growth 1.1%
TTM Earnings Growth 3.1%
Gross Profit Margin 54.0%
EBITDA Margin 14.1%
Net Income Margin 3.0%
SG&A Expenses as a % of Total Revenue 31.3%
R&D Expenses as a % of Total Revenue 11.7%
Current Ratio 1.6
Quick Ratio 1.4
Cash as Percent of Market Cap 7.3%
Avg Days Outstanding: Accounts Receivable 69
Avg Days Outstanding: Accounts Payable 36
Working Capital to TTM Operating Expense Ratio 0.2x
Levered FCF Margin 8.8%
Cash from Operations Growth (YoY) 4.3%
Cash from Investing Growth (YoY) -11.9%
Cash from Financing Growth (YoY) -29.0%
Levered FCF Growth (YoY) 32.2%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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-5%
0%
5%
10%
15%
20%
Healthcare Software Stock Market Return: January - August 2014
Healthcare S&P NASDAQ SEG SW Index
SEG Software Index Category: IT Conglomerates
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Hewlett Packard HPQ $71,111.4 $76,863.4 $112,179.0 23.7% 11.8% -0.8% 0.7x 5.8x 0.7x 5.9x 38.7%
IBM IBM $191,836.9 $228,717.9 $98,267.0 49.1% 25.6% -4.0% 2.3x 9.1x 2.3x 8.1x 5.4%
Microsoft Corporation MSFT $374,336.3 $312,610.3 $86,833.0 69.0% 37.0% 11.5% 3.6x 9.7x 3.1x 9.0x 24.8%
Oracle Corporation ORCL $185,011.5 $170,928.5 $38,275.0 61.3% 43.7% 2.9% 4.5x 10.2x 4.3x 8.3x 10.8%
SAP AG DB:SAP $93,044.6 $94,493.4 $23,274.7 72.4% 34.5% 2.2% 4.1x 11.8x 4.0x 10.6x -5.9%
Median: $185,011.5 $170,928.5 $86,833.0 61.3% 34.5% 2.2% 3.6x 9.7x 3.1x 8.3x 10.8%
TTM Revenue Growth 2.2%
TTM EBITDA Growth 3.9%
TTM Earnings Growth 5.2%
Gross Profit Margin 61.3%
EBITDA Margin 34.5%
Net Income Margin 18.7%
SG&A Expenses as a % of Total Revenue 22.6%
R&D Expenses as a % of Total Revenue 13.1%
Current Ratio 1.2
Quick Ratio 0.9
Cash as Percent of Market Cap 20.4%
Avg Days Outstanding: Accounts Receivable 58
Avg Days Outstanding: Accounts Payable 61
Working Capital to TTM Operating Expense Ratio 0.1x
Levered FCF Margin 23.7%
Cash from Operations Growth (YoY) 0.5%
Cash from Investing Growth (YoY) 7.9%
Cash from Financing Growth (YoY) -3.0%
Levered FCF Growth (YoY) 2.0%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-10%
-5%
0%
5%
10%
15%
IT Conglomerates Software Stock Market Return: January - August 2014
IT Conglomerates S&P NASDAQ SEG SW Index
SEG Software Index Category: Mobile Solutions/Content
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Bango PLC BGO $79.5 $71.8 $14.6 23.5% -51.5% -13.7% 4.9x n/a n/a n/a -23.3%
King Digital Entertainment KING $4,409.1 $3,576.9 $2,423.2 68.8% 36.3% 213.8% 1.5x 4.1x 1.7x 4.2x -27.4%
Glu Mobile, Inc. GLUU $496.8 $425.4 $142.1 69.5% -2.4% 40.0% 3.0x n/a 1.7x 16.2x 32.3%
Gree TSE:3632 $1,851.4 $1,326.9 $1,240.0 76.6% 33.4% -17.5% 1.1x 3.2x 1.3x 5.2x -19.7%
Millennial Media Inc MM $255.9 $163.5 $292.7 39.8% -4.7% 38.2% 0.6x n/a 0.5x n/a -65.3%
MobileIron, Inc. MOBL $879.3 $724.0 $114.3 82.5% -40.7% n/a 6.3x n/a 5.2x n/a 5.2%
Myriad Group AG MYRN $459.5 $459.2 $43.2 29.0% -16.0% -23.3% 10.6x n/a n/a n/a 232.9%
NQ Mobile Inc. NQ $349.0 $247.7 $196.7 58.9% 0.7% 114.3% 1.3x 169.8x 0.8x 2.7x -59.3%
Opera OB:OPERA $2,060.1 $2,003.7 $352.6 43.1% 24.5% 39.9% 5.7x 23.2x 3.3x 13.2x 6.1%
Qihoo 360 Technology Co. Ltd QIHU $11,060.2 $10,941.5 $992.6 82.6% 26.6% 121.3% 11.0x 41.5x 6.6x 17.7x 7.3%
Pandora Media P $5,583.4 $5,259.2 $799.8 43.5% -1.4% n/a 6.6x n/a 5.0x 65.2x 1.0%
Synchronoss Technologies, Inc. SNCR $1,846.2 $1,775.0 $388.9 58.9% 25.7% 27.8% 4.6x 17.7x 3.6x 10.8x 48.7%
Tangoe TNGO $539.8 $495.4 $200.7 54.5% 7.2% 14.4% 2.5x 34.2x 2.1x 12.5x -22.9%
TeleCommunication Systems TSYS $177.5 $250.1 $346.0 40.6% 7.4% -24.8% 0.7x 9.7x 0.7x 6.3x 29.0%
TeleNav TNAV $271.9 $135.0 $150.3 59.5% -15.7% -21.6% 0.9x n/a 0.8x n/a 6.8%
Zynga, Inc ZNGA $2,593.5 $1,866.3 $700.2 68.4% -2.5% -37.6% 2.7x n/a 2.4x 20.7x -26.7%
Median: $709.6 $609.7 $319.3 58.9% -0.3% 21.1% 2.8x 20.5x 1.9x 12.5x 3.1%
TTM Revenue Growth 21.1%
TTM EBITDA Growth -3.7%
TTM Earnings Growth -20.5%
Gross Profit Margin 58.9%
EBITDA Margin -0.3%
Net Income Margin -6.9%
SG&A Expenses as a % of Total Revenue 38.4%
R&D Expenses as a % of Total Revenue 16.6%
Current Ratio 3.3
Quick Ratio 2.9
Cash as Percent of Market Cap 16.0%
Avg Days Outstanding: Accounts Receivable 66
Avg Days Outstanding: Accounts Payable 37
Working Capital to TTM Operating Expense Ratio 0.0x
Levered FCF Margin 6.3%
Cash from Operations Growth (YoY) 39.8%
Cash from Investing Growth (YoY) 11.1%
Cash from Financing Growth (YoY) 103.2%
Levered FCF Growth (YoY) 119.3%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Mobile Solutions/Content Software Stock Market Return: January - August 2014
Mobile Solutions/Content S&P NASDAQ SEG SW Index
SEG Software Index Category: Networking/Network Performance Mgmt
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
A10 Networks, Inc. ATEN $697.4 $585.3 $172.9 76.7% -1.7% n/a 3.4x n/a 2.8x n/a -28.1%
Allot Communications Ltd. ALLT $359.8 $236.1 $107.7 71.6% 3.4% 8.3% 2.2x 64.0x 1.9x 12.3x -27.6%
Aruba Networks, Inc. ARUN $2,321.5 $2,036.6 $728.9 69.2% 4.0% 21.5% 2.8x 69.1x 2.4x 10.0x 23.3%
Barracuda Networks, Inc. CUDA $1,279.3 $1,142.6 $243.7 77.4% 1.6% 16.5% 4.7x 289.0x 4.1x 15.4x -33.1%
Brocade Communications Systems, Inc.BRCD $4,564.6 $4,012.5 $2,205.7 65.8% 26.2% -1.6% 1.8x 6.9x 1.8x 6.4x 20.1%
Cisco Systems, Inc. CSCO $128,016.0 $96,851.0 $47,142.0 58.9% 25.4% -3.0% 2.1x 8.1x 2.0x 6.0x 15.4%
Cyan, Inc. CYNI $177.2 $142.7 $102.0 40.3% -49.9% -12.5% 1.4x n/a 1.2x n/a -27.8%
Compuware Corporation CPWR $2,058.3 $1,798.7 $714.5 67.7% 12.0% 6.9% 2.5x 21.0x 2.5x 8.6x -14.1%
F5 Networks, Inc. FFIV $9,200.5 $8,589.1 $1,662.1 82.3% 30.8% 14.7% 5.2x 16.8x 4.5x 12.0x 55.3%
Gigamon, LLC GIMO $348.3 $213.5 $148.7 77.6% -22.2% 28.4% 1.4x n/a 1.5x n/a -60.9%
Juniper Networks, Inc. JNPR $10,463.0 $9,191.6 $4,858.8 62.7% 17.6% 8.7% 1.9x 10.7x 1.9x 6.9x 3.6%
Mavenir Systems, Inc. MVNR $323.1 $323.3 $115.1 54.4% -4.1% 40.3% 2.8x n/a 2.3x n/a 1.2%
Radware Ltd. RDWR $780.4 $615.5 $205.1 81.3% 13.5% 8.4% 3.0x 22.2x 2.7x 13.1x -2.7%
Riverbed Technology, Inc. RVBD $3,009.0 $3,101.8 $1,074.4 73.6% 16.2% 12.9% 2.9x 17.9x 2.6x 9.2x 4.6%
Median: $1,279.3 $1,142.6 $243.7 69.2% 4.0% 8.5% 2.5x 21.0x 2.3x 10.0x -2.7%
TTM Revenue Growth 8.5%
TTM EBITDA Growth 5.0%
TTM Earnings Growth 12.3%
Gross Profit Margin 69.2%
EBITDA Margin 4.0%
Net Income Margin 0.8%
SG&A Expenses as a % of Total Revenue 48.5%
R&D Expenses as a % of Total Revenue 21.0%
Current Ratio 2.7
Quick Ratio 2.2
Cash as Percent of Market Cap 18.6%
Avg Days Outstanding: Accounts Receivable 51
Avg Days Outstanding: Accounts Payable 46
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 15.6%
Cash from Operations Growth (YoY) 5.4%
Cash from Investing Growth (YoY) 43.6%
Cash from Financing Growth (YoY) -68.4%
Levered FCF Growth (YoY) 7.5%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
-15%
-10%
-5%
0%
5%
10%
15%
Networking/Network Performance Mgmt Software Stock Market Return: January - August 2014
Networking & Network Performance Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Security
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
AVG Technologies N.V. AVG $919.4 $874.3 $383.6 83.1% 33.6% -3.0% 2.3x 6.8x 2.3x 6.1x -14.0%
Barracuda Networks, Inc. CUDA $1,279.3 $1,142.6 $243.7 77.4% 1.6% 16.5% 4.7x 289.0x 4.1x 15.4x -33.1%
Check Point Software Tech Ltd. CHKP $13,549.9 $12,316.4 $1,436.0 88.4% 54.7% 5.3% 8.6x 15.7x 8.1x 13.9x 10.3%
A10 Networks, Inc. ATEN $697.4 $585.3 $172.9 76.7% -1.7% n/a 3.4x n/a 2.8x n/a -28.1%
Cyren CYRN $76.2 $78.4 $32.6 76.2% -13.7% 15.2% 2.4x n/a 2.2x n/a -18.5%
Fortinet Inc. FTNT $4,227.0 $3,668.9 $685.1 70.3% 12.5% 20.0% 5.4x 42.9x 4.7x 23.2x 35.7%
Guidance Software, Inc. GUID $229.0 $210.4 $108.8 67.0% -9.2% -14.1% 1.9x n/a 1.8x 28.5x -21.8%
Imperva IMPV $771.3 $671.8 $147.8 77.9% -28.7% 25.2% 4.5x n/a 3.8x n/a -40.1%
Palo Alto Networks, Inc PANW $6,550.8 $6,182.8 $598.2 73.3% -9.2% 51.0% 10.3x n/a 8.5x 64.3x 52.7%
Proofpoint, Inc. PFPT $1,491.9 $1,423.8 $164.4 68.4% -14.8% 39.0% 8.7x n/a 6.9x n/a 23.1%
Sourcefire, Inc. FIRE $17.8 $18.6 $20.7 36.2% 12.7% 43.9% 0.9x 7.1x n/a n/a -19.8%
Symantec Corporation SYMC $16,764.6 $14,810.6 $6,702.0 83.5% 29.0% -3.5% 2.2x 7.6x 2.2x 6.3x 5.6%
Trend Micro TSE:4704 $4,321.1 $3,216.6 $1,094.2 83.0% 35.1% 9.8% 2.9x 8.4x 2.9x 8.6x -8.1%
VASCO Data Security International VDSI $579.6 $456.3 $168.9 65.0% 13.3% 14.3% 2.7x 20.3x 2.6x 12.7x 94.6%
Median: $1,099.4 $1,008.5 $208.3 76.5% 7.0% 15.2% 3.2x 12.0x 2.9x 13.9x -11.0%
TTM Revenue Growth 15.2%
TTM EBITDA Growth -16.6%
TTM Earnings Growth -29.7%
Gross Profit Margin 76.5%
EBITDA Margin 7.0%
Net Income Margin -0.4%
SG&A Expenses as a % of Total Revenue 52.5%
R&D Expenses as a % of Total Revenue 18.6%
Current Ratio 1.9
Quick Ratio 1.6
Cash as Percent of Market Cap 11.8%
Avg Days Outstanding: Accounts Receivable 66
Avg Days Outstanding: Accounts Payable 50
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 13.1%
Cash from Operations Growth (YoY) -19.4%
Cash from Investing Growth (YoY) -15.1%
Cash from Financing Growth (YoY) 117.4%
Levered FCF Growth (YoY) 33.4%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-10%
-5%
0%
5%
10%
15%
Security Software Stock Market Return: January - August 2014
Security S&P NASDAQ SEG SW Index
SEG Software Index Category: Storage, Data Management & Integration
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Brocade Communications Systems, Inc.BRCD $4,564.6 $4,012.5 $2,205.7 65.8% 26.2% -1.6% 1.8x n/a 1.8x 6.4x 20.1%
CA, Inc. CA $12,568.5 $11,217.5 $4,489.0 85.5% 31.7% -1.6% 2.5x 7.9x 2.6x 6.6x -12.6%
Cisco Systems, Inc. CSCO $128,016.0 $96,851.0 $47,142.0 58.9% 25.4% -3.0% 2.1x 8.1x 2.0x 6.0x 15.4%
CommVault Systems, Inc. CVLT $2,498.7 $2,100.2 $604.6 87.2% 17.1% 16.5% 3.5x 20.3x 3.0x 12.2x -25.6%
EMC EMC $59,906.3 $59,286.3 $23,580.0 62.2% 23.1% 5.7% 2.5x 10.9x 2.3x 7.9x 19.2%
FalconStor Software, Inc. FALC $61.5 $40.4 $52.7 76.5% -9.2% -23.5% 0.8x n/a n/a n/a 3.0%
IBM IBM $191,836.9 $228,717.9 $98,267.0 49.1% 25.6% -4.0% 2.3x 9.1x 2.3x 8.1x 5.4%
Informatica Corporation INFA $3,746.1 $3,059.9 $1,005.2 83.0% 18.4% 16.6% 3.0x 16.6x 2.8x 10.7x -16.4%
Microsoft Corporation MSFT $374,336.3 $312,610.3 $86,833.0 69.0% 37.0% 11.5% 3.6x 9.7x 3.1x 9.0x 24.8%
NetApp, Inc. NTAP $13,459.8 $9,389.7 $6,298.1 62.7% 16.4% -1.7% 1.5x 9.1x 1.5x 6.5x 5.6%
Oracle Corporation ORCL $185,011.5 $170,928.5 $38,275.0 61.3% 43.7% 2.9% 4.5x 10.2x 4.3x 8.3x 10.8%
Splunk, Inc. SPLK $6,394.0 $5,556.3 $366.0 86.7% -40.8% 51.6% 15.2x n/a 11.4x 254.9x -24.5%
TIBCO Software Inc. TIBX $3,452.7 $3,419.8 $1,091.5 71.0% 18.0% 5.4% 3.1x 17.4x 3.1x 12.7x -9.9%
Varonis Systems, Inc. VRNS $583.0 $462.8 $86.3 90.5% -14.0% 38.0% 5.4x n/a 4.2x n/a -45.9%
Median: $9,481.2 $7,473.0 $3,347.4 70.0% 20.7% 4.2% 2.8x 10.0x 2.8x 8.2x 4.2%
TTM Revenue Growth 4.2%
TTM EBITDA Growth 3.1%
TTM Earnings Growth 0.6%
Gross Profit Margin 70.0%
EBITDA Margin 20.7%
Net Income Margin 10.4%
SG&A Expenses as a % of Total Revenue 34.4%
R&D Expenses as a % of Total Revenue 14.0%
Current Ratio 2.4
Quick Ratio 2.2
Cash as Percent of Market Cap 20.8%
Avg Days Outstanding: Accounts Receivable 70
Avg Days Outstanding: Accounts Payable 41
Working Capital to TTM Operating Expense Ratio 0.6x
Levered FCF Margin 16.6%
Cash from Operations Growth (YoY) 0.2%
Cash from Investing Growth (YoY) 14.4%
Cash from Financing Growth (YoY) 47.1%
Levered FCF Growth (YoY) 2.8%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
-15%
-10%
-5%
0%
5%
10%
15%
Storage, Data Management & Integration Software Stock Market Return: January - August 2014
Storage, Data Management & Integration S&P NASDAQ SEG SW Index
SEG Software Index Category: Supply Chain Management & Logistics
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
American Software, Inc. AMSW.A $259.9 $199.3 $102.1 56.9% 15.9% 4.4% 2.0x 12.3x 1.8x 9.3x -4.4%
Aspen Technology, Inc. AZPN $3,750.3 $3,483.1 $391.5 86.5% 34.0% 25.7% 8.9x 26.2x 7.9x 19.3x -1.1%
Manhattan Associates, Inc. MANH $2,168.7 $2,067.3 $451.5 57.0% 27.4% 15.7% 4.6x 16.7x 4.2x 14.2x -1.8%
The Descartes Systems Group Inc. TSX:DSG $1,054.4 $1,030.8 $162.6 67.6% 28.7% 17.2% 6.3x 22.1x 5.8x 19.3x 6.5%
Median: $1,611.5 $1,549.1 $277.0 62.3% 28.1% 16.4% 5.5x 19.4x 5.0x 16.7x -1.4%
TTM Revenue Growth 16.4%
TTM EBITDA Growth 26.3%
TTM Earnings Growth 20.1%
Gross Profit Margin 62.3%
EBITDA Margin 28.1%
Net Income Margin 13.4%
SG&A Expenses as a % of Total Revenue 28.2%
R&D Expenses as a % of Total Revenue 13.5%
Current Ratio 2.3
Quick Ratio 2.1
Cash as Percent of Market Cap 10.3%
Avg Days Outstanding: Accounts Receivable 54
Avg Days Outstanding: Accounts Payable 12
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 21.6%
Cash from Operations Growth (YoY) 8.7%
Cash from Investing Growth (YoY) -20.0%
Cash from Financing Growth (YoY) 27.0%
Levered FCF Growth (YoY) 39.0%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Supply Chain Management & Logistics Software Stock Market Return: January - August 2014
Supply Chain Management & Logistics S&P NASDAQ SEG SW Index
SEG Software Index Category: Systems Management
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
CA Technologies CA $12,568.5 $11,217.5 $4,489.0 85.5% 31.7% -1.6% 2.5x 7.9x 2.6x 6.6x -12.6%
Citrix Systems, Inc. CTXS $11,555.7 $12,012.6 $3,047.5 85.5% 23.8% 9.4% 3.9x 16.6x 3.6x 12.0x 12.4%
Netscout Systems, Inc. NTCT $1,891.3 $1,713.4 $422.7 78.7% 24.6% 18.7% 4.1x 16.5x 3.7x 12.7x 59.7%
Red Hat, Inc. RHT $11,519.7 $10,716.5 $1,595.1 84.9% 19.2% 15.8% 6.7x 35.0x 5.8x 21.3x 9.1%
SolarWinds, Inc. SWI $3,226.1 $3,063.9 $382.4 90.3% 35.2% 29.3% 8.0x 22.8x 6.6x 13.1x 13.2%
VMWare, Inc. VMW $42,400.5 $37,263.5 $5,589.0 85.8% 26.0% 15.0% 6.7x 25.6x 5.8x 15.5x 10.1%
Median: $11,537.7 $10,967.0 $2,321.3 85.5% 25.3% 15.4% 5.4x 19.7x 4.7x 12.9x 11.3%
TTM Revenue Growth 15.4%
TTM EBITDA Growth 14.5%
TTM Earnings Growth 8.6%
Gross Profit Margin 85.5%
EBITDA Margin 25.3%
Net Income Margin 15.2%
SG&A Expenses as a % of Total Revenue 46.2%
R&D Expenses as a % of Total Revenue 16.6%
Current Ratio 1.2
Quick Ratio 1.1
Cash as Percent of Market Cap 8.3%
Avg Days Outstanding: Accounts Receivable 73
Avg Days Outstanding: Accounts Payable 52
Working Capital to TTM Operating Expense Ratio 0.2x
Levered FCF Margin 25.3%
Cash from Operations Growth (YoY) 16.4%
Cash from Investing Growth (YoY) -19.4%
Cash from Financing Growth (YoY) 45.9%
Levered FCF Growth (YoY) 28.1%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Systems Management Software Stock Market Return: January - August 2014
Systems Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Vertical - Finance
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Advent Software, Inc. ADVS $1,665.8 $1,904.5 $391.5 71.5% 24.1% 5.6% 4.9x 20.2x 4.6x 15.0x -5.4%
Broadridge Financial BR $5,085.0 $5,261.4 $2,558.0 31.1% 20.4% 5.2% 2.1x 10.1x 2.0x 9.2x 9.4%
Fidessa LSE:FDSA $1,434.4 $1,338.6 $473.5 20.7% 18.8% 0.1% 2.8x 15.1x 2.8x 11.4x 6.8%
Jack Henry & Associates, Inc. JKHY $4,768.3 $4,707.0 $1,210.1 42.9% 34.5% 7.1% 3.9x 11.3x 3.6x 10.5x 0.2%
MSCI, Inc. MSCI $5,377.0 $5,491.7 $1,081.7 68.1% 41.2% 16.3% 5.1x 12.3x 5.3x 13.5x 6.9%
SS&C Corporation SSNC $3,779.4 $4,374.1 $736.6 45.9% 39.0% 7.1% 5.9x 15.2x 5.5x 13.2x 1.6%
Median: $4,273.8 $4,540.6 $909.1 44.4% 29.3% 6.3% 4.4x 13.7x 4.1x 12.3x 4.2%
TTM Revenue Growth 6.3%
TTM EBITDA Growth 11.0%
TTM Earnings Growth 27.2%
Gross Profit Margin 44.4%
EBITDA Margin 29.3%
Net Income Margin 14.0%
SG&A Expenses as a % of Total Revenue 13.8%
R&D Expenses as a % of Total Revenue 7.3%
Current Ratio 1.4
Quick Ratio 1.2
Cash as Percent of Market Cap 4.7%
Avg Days Outstanding: Accounts Receivable 59
Avg Days Outstanding: Accounts Payable 9
Working Capital to TTM Operating Expense Ratio 0.1x
Levered FCF Margin 16.1%
Cash from Operations Growth (YoY) 12.5%
Cash from Investing Growth (YoY) -25.1%
Cash from Financing Growth (YoY) -10.7%
Levered FCF Growth (YoY) 41.7%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
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Vertical - Finance Software Stock Market Return:January - August 2014
Vertical - Finance S&P NASDAQ SEG SW Index
SEG Software Index Category: Vertical - Other
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Blackbaud, Inc. BLKB $1,756.4 $1,904.2 $529.7 52.7% 19.6% 9.5% 3.6x 18.4x 3.3x 15.8x 5.3%
Constellation TSX:CSU $5,259.9 $5,592.2 $1,466.9 32.3% 9.8% 40.8% 3.8x 38.9x 3.1x 15.6x 18.3%
EPIQ Systems, Inc. EPIQ $523.8 $807.2 $462.5 51.7% 13.2% 21.7% 1.7x 13.2x 1.5x 7.4x -6.5%
Guidewire Software, Inc. GWRE $3,122.8 $2,692.4 $350.2 57.5% 7.2% 16.5% 7.7x 107.0x 7.3x 40.6x -5.4%
PROS Holdings PRO $741.7 $713.8 $161.0 69.0% -0.6% 22.1% 4.4x n/a 3.4x 19.8x -34.9%
Sapiens International SPNS $386.3 $340.9 $146.1 36.6% 11.6% 16.6% 2.3x 20.2x 2.0x 15.0x 9.4%
Silver Spring Networks, Inc. SSNI $502.8 $379.0 $255.5 32.0% -22.7% 3.5% 1.5x n/a 1.1x 24.0x -49.9%
Tyler Technologies, Inc. TYL $2,925.5 $2,836.6 $454.8 46.9% 20.5% 17.2% 6.2x 30.4x 5.5x 21.1x -12.1%
Median: $1,249.0 $1,355.7 $402.5 49.3% 10.7% 16.9% 3.7x 25.3x 3.2x 17.8x -5.9%
TTM Revenue Growth 16.9%
TTM EBITDA Growth 7.9%
TTM Earnings Growth 5.2%
Gross Profit Margin 49.3%
EBITDA Margin 10.7%
Net Income Margin 5.3%
SG&A Expenses as a % of Total Revenue 29.1%
R&D Expenses as a % of Total Revenue 17.2%
Current Ratio 1.5
Quick Ratio 1.2
Cash as Percent of Market Cap 4.4%
Avg Days Outstanding: Accounts Receivable 66
Avg Days Outstanding: Accounts Payable 29
Working Capital to TTM Operating Expense Ratio 0.2x
Levered FCF Margin 9.7%
Cash from Operations Growth (YoY) 97.1%
Cash from Investing Growth (YoY) -155.5%
Cash from Financing Growth (YoY) 132.7%
Levered FCF Growth (YoY) 44.6%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
Income Statement Analysis (Median)
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Vertical - Other Software Stock Market Return: January - August 2014
Vertical - Other S&P NASDAQ SEG SW Index
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
SEG Software Index
Select Software Industry M&A Transactions
SEG SaaS Index
SEG Internet Index
SEG SaaS Index: All Categories
Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
SEG SaaS Index $948.5 $848.4 $153.3 65.2% -8.1% 27.3% 6.3x 57.4x 5.0x 29.9x -12.1%
CRM & Marketing $988.4 $848.4 $173.8 70.2% 0.1% 29.6% 3.3x 112.9x 2.8x 31.1x -6.0%
ERP & Supply Chain $908.2 $771.7 $115.0 68.0% -8.1% 30.2% 5.7x 68.9x 5.0x 27.5x -14.0%
Vertically Focused $1,041.0 $922.5 $169.8 63.8% 8.7% 30.1% 6.9x 41.4x 5.4x 23.1x -5.5%
Workforce Management $1,562.9 $1,514.0 $170.8 61.7% -14.2% 35.9% 8.9x 61.3x 6.8x 104.1x -20.0%
SaaS Other $855.1 $788.3 $153.3 64.0% -13.7% 20.4% 4.6x 41.6x 3.9x 25.6x -15.8%
TTM Revenue Growth 27.3%
TTM EBITDA Growth -24.8%
TTM Earnings Growth -35.9%
Gross Profit Margin 65.2%
EBITDA Margin -8.1%
Net Income Margin -16.6%
SG&A Expenses as a % of Total Revenue 58.4%
R&D Expenses as a % of Total Revenue 19.4%
Current Ratio 2.2
Quick Ratio 2.1
Cash as Percent of Market Cap 11.6%
Avg Days Outstanding: Accounts Receivable 65
Avg Days Outstanding: Accounts Payable 29
Working Capital to TTM Operating Expense Ratio 0.6x
Levered FCF Margin 6.5%
Cash from Operations Growth (YoY) 27.2%
Cash from Investing Growth (YoY) -38.0%
Cash from Financing Growth (YoY) 82.0%
Levered FCF Growth (YoY) 33.1%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Category Name
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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SEG SaaS Index Stock Market Return: January - August 2014
DOW S&P NASDAQ SEG SaaS
SEG SaaS Index Category: CRM & Marketing
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Bazaarvoice, Inc BV $569.7 $524.0 $173.8 67.1% -17.4% 14.7% 3.0x n/a 2.8x n/a -6.0%
Constant Contact CTCT $988.4 $848.4 $307.1 72.3% 11.0% 14.4% 2.8x 25.1x 2.4x 12.5x 3.1%
Cvent NYSE:CVT $1,062.1 $871.7 $125.4 70.2% 4.6% 29.6% 7.0x 150.3x 5.6x 55.1x -31.7%
LivePerson LPSN $694.3 $623.0 $191.0 75.5% 4.3% 13.8% 3.3x 75.6x 2.8x 25.6x -12.1%
Marketo MKTO $1,193.9 $1,082.3 $122.0 64.3% -34.4% 63.7% 8.9x n/a 6.5x n/a 26.8%
Marin Software MRIN $290.6 $211.4 $88.6 62.5% -30.5% 30.5% 2.4x n/a 2.0x n/a -17.9%
Salesforce.com CRM $36,576.7 $38,079.3 $4,766.6 76.0% 0.1% 37.3% 8.0x 12236.3x 6.4x 36.6x 7.7%
Median: $988.4 $848.4 $173.8 70.2% 0.1% 29.6% 3.3x 112.9x 2.8x 31.1x -6.0%
TTM Revenue Growth 29.6%
TTM EBITDA Growth 3.9%
TTM Earnings Growth -12.2%
Gross Profit Margin 70.2%
EBITDA Margin 0.1%
Net Income Margin -8.4%
SG&A Expenses as a % of Total Revenue 66.7%
R&D Expenses as a % of Total Revenue 19.7%
Current Ratio 2.4
Quick Ratio 2.3
Cash as Percent of Market Cap 14.2%
Avg Days Outstanding: Accounts Receivable 72
Avg Days Outstanding: Accounts Payable 34
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 5.1%
Cash from Operations Growth (YoY) 29.6%
Cash from Investing Growth (YoY) -16.9%
Cash from Financing Growth (YoY) 76.1%
Levered FCF Growth (YoY) 68.1%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
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CRM & Marketing SaaS Stock Market Return: January - August 2014
CRM & Marketing S&P NASDAQ SEG SaaS
SEG SaaS Index Category: ERP & Supply Chain
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Amber Road, Inc. AMBR $378.5 $340.7 $59.8 58.3% -41.1% 30.2% 5.7x n/a 5.0x n/a -11.8%
E2open, Inc EOPN $439.4 $393.5 $74.7 62.0% -29.3% -0.5% 5.3x n/a 4.2x n/a -37.7%
Fleetmatics FLTX $1,232.3 $1,101.5 $203.6 75.3% 21.9% 35.7% 5.4x 24.8x 4.3x 14.9x -24.4%
Netsuite N $6,697.4 $6,488.0 $476.6 68.0% -8.1% 33.4% 13.6x n/a 10.4x 117.0x -14.0%
SciQuest SQI $439.3 $323.9 $99.1 69.9% 2.9% 25.8% 3.3x 112.0x 3.0x 15.2x -41.2%
SPS Commerce SPSC $908.2 $771.7 $115.0 69.0% 9.7% 24.8% 6.7x 68.9x 5.6x 39.8x -13.1%
Workday, Inc. WDAY $16,848.0 $15,510.7 $616.3 63.9% -25.2% 74.4% 25.2x n/a 16.6x n/a 11.4%
Median: $908.2 $771.7 $115.0 68.0% -8.1% 30.2% 5.7x 68.9x 5.0x 27.5x -14.0%
TTM Revenue Growth 30.2%
TTM EBITDA Growth -31.2%
TTM Earnings Growth -61.4%
Gross Profit Margin 68.0%
EBITDA Margin -8.1%
Net Income Margin -17.3%
SG&A Expenses as a % of Total Revenue 55.2%
R&D Expenses as a % of Total Revenue 19.4%
Current Ratio 2.1
Quick Ratio 2.0
Cash as Percent of Market Cap 11.7%
Avg Days Outstanding: Accounts Receivable 62
Avg Days Outstanding: Accounts Payable 20
Working Capital to TTM Operating Expense Ratio 0.7x
Levered FCF Margin 11.1%
Cash from Operations Growth (YoY) 52.0%
Cash from Investing Growth (YoY) 1.9%
Cash from Financing Growth (YoY) -14.2%
Levered FCF Growth (YoY) 56.5%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
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ERP & Supply Chain SaaS Stock Market Return: January - August 2014
ERP & Supply Chain S&P NASDAQ SEG SaaS
SEG SaaS Index Category: Vertically Focused
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
2U, Inc. TWOU $761.0 $656.3 $96.4 73.8% -32.3% n/a 6.8x n/a 5.3x n/a 35.2%
Athenahealth, Inc ATHN $5,483.5 $5,590.9 $672.1 59.4% 9.1% 36.0% 8.3x 91.2x 6.7x 38.5x 9.8%
Castlight Health, Inc. CSLT $1,068.0 $908.2 $27.7 12.4% -295.7% n/a 32.8x n/a 15.6x n/a -70.1%
DealerTrack TRAK $2,412.2 $3,005.0 $634.3 40.9% 12.0% 46.9% 4.7x 39.4x 3.2x 14.7x -7.5%
Ebix Inc. EBIX $591.9 $594.2 $204.0 80.5% 38.5% -3.5% 2.9x 7.6x 2.8x 7.1x 8.7%
Ellie Mae ELLI $1,013.9 $936.8 $135.5 73.2% 16.7% 10.6% 6.9x 41.4x 5.6x 18.7x 33.5%
Medidata Solutions MDSO $2,514.7 $2,531.7 $305.4 74.6% 8.2% 24.2% 8.3x 100.6x 6.7x 27.5x -21.1%
OPOWER, Inc. OPWR $771.0 $622.3 $108.3 66.1% -26.7% 54.4% 5.7x n/a 4.6x n/a -32.0%
RealPage RP $1,276.9 $1,262.6 $389.1 59.5% 10.8% 10.4% 3.2x 30.0x 3.0x 18.3x -28.0%
Textura Corp. TXTR $732.7 $665.8 $58.9 82.4% -23.0% n/a 11.3x n/a 8.3x 168.4x -3.8%
Q2 Holdings, Inc. QTWO $504.7 $412.7 $66.0 39.4% -24.8% n/a 6.3x n/a 4.7x n/a -2.7%
Veeva Systems Inc. VEEV $3,830.1 $3,479.9 $260.2 61.6% 20.4% 54.9% 13.4x 65.7x 10.3x 38.6x -7.3%
Median: $1,041.0 $922.5 $169.8 63.8% 8.7% 30.1% 6.9x 41.4x 5.4x 23.1x -5.5%
TTM Revenue Growth 30.1%
TTM EBITDA Growth -22.5%
TTM Earnings Growth -43.8%
Gross Profit Margin 63.8%
EBITDA Margin 8.7%
Net Income Margin -0.6%
SG&A Expenses as a % of Total Revenue 45.8%
R&D Expenses as a % of Total Revenue 17.4%
Current Ratio 2.8
Quick Ratio 2.8
Cash as Percent of Market Cap 8.9%
Avg Days Outstanding: Accounts Receivable 57
Avg Days Outstanding: Accounts Payable 20
Working Capital to TTM Operating Expense Ratio 0.6x
Levered FCF Margin 10.2%
Cash from Operations Growth (YoY) 27.3%
Cash from Investing Growth (YoY) -134.8%
Cash from Financing Growth (YoY) 235.3%
Levered FCF Growth (YoY) -37.9%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
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Vertically Focused SaaS Stock Market Return: January - August 2014
Vertically Focused S&P NASDAQ SEG SaaS
SEG SaaS Index Category: Workforce Management
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Callidus Software Inc. CALD $527.6 $490.5 $124.4 60.6% -0.2% 23.6% 3.9x n/a 3.5x 31.0x -12.1%
Cornerstone OnDemand CSOD $1,999.3 $1,980.2 $222.0 71.2% -16.6% 48.8% 8.9x n/a 6.2x 178.3x -29.2%
Halogen Software, Inc. TSX:HGN $183.3 $132.0 $52.1 73.9% -11.7% 21.3% 2.5x n/a 2.1x n/a -32.3%
Paylocity Holding Corp. PCTY $1,126.6 $1,047.7 $108.7 49.6% -2.4% 40.6% 9.6x n/a 7.4x n/a -5.4%
The Ultimate Software Group, Inc. ULTI $4,154.1 $4,073.1 $458.1 59.6% 14.5% 23.7% 8.9x 61.3x 7.3x 29.9x -3.6%
Workday, Inc. WDAY $16,848.0 $15,510.7 $616.3 63.9% -25.2% 74.4% 25.2x n/a 16.6x n/a -10.8%
Median: $1,562.9 $1,514.0 $173.2 62.2% -7.0% 32.2% 8.9x 61.3x 6.8x 31.0x -11.4%
TTM Revenue Growth 32.2%
TTM EBITDA Growth -39.3%
TTM Earnings Growth -8.5%
Gross Profit Margin 62.2%
EBITDA Margin -7.0%
Net Income Margin -12.2%
SG&A Expenses as a % of Total Revenue 54.1%
R&D Expenses as a % of Total Revenue 15.5%
Current Ratio 1.4
Quick Ratio 1.3
Cash as Percent of Market Cap 9.4%
Avg Days Outstanding: Accounts Receivable 66
Avg Days Outstanding: Accounts Payable 13
Working Capital to TTM Operating Expense Ratio 0.5x
Levered FCF Margin 8.1%
Cash from Operations Growth (YoY) 60.9%
Cash from Investing Growth (YoY) 9.0%
Cash from Financing Growth (YoY) -71.9%
Levered FCF Growth (YoY) 126.7%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
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Workforce Management SaaS Stock Market Return: January - August 2014
Workforce Management S&P NASDAQ SEG SaaS
SEG SaaS Index Category: Other Public SaaS Companies
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Benefitfocus, Inc. BNFT $841.3 $808.0 $119.6 36.5% -30.8% 31.1% 6.8x n/a 5.3x n/a -41.1%
ChannelAdvisors ECOM $400.7 $320.6 $77.2 71.7% -30.4% 28.9% 4.2x n/a 3.3x n/a -60.5%
Concur CNQR $5,725.3 $5,583.4 $667.9 62.5% 3.3% 31.8% 8.4x 251.8x 6.9x 41.6x -0.6%
Covisint Corporation COVS $182.3 $139.1 $94.6 38.4% -43.2% 0.4% 1.5x n/a 1.5x n/a -61.8%
Demandware, Inc. DWRE $1,920.3 $1,664.5 $128.3 73.6% -13.7% 44.5% 13.0x n/a 9.5x n/a -17.9%
FireEye, Inc. FEYE $4,637.9 $4,173.4 $268.4 60.0% -103.6% 132.9% 15.6x n/a 7.9x n/a -24.3%
inContact, Inc. SAAS $557.1 $533.6 $145.5 48.4% -2.4% 19.9% 3.7x n/a 2.9x 143.6x 14.2%
IntraLinks Holdings IL $442.6 $466.1 $244.5 72.5% 3.6% 8.7% 1.9x 53.4x 1.8x 11.5x -34.5%
J2 Global JCOM $2,551.3 $2,487.3 $544.7 82.9% 41.5% 21.0% 4.6x 11.0x 3.9x 9.2x 9.4%
Jive Software, Inc JIVE $497.6 $404.8 $161.1 62.4% -35.3% 23.4% 2.5x n/a 2.2x n/a -36.1%
Liquid Holdings Group LIQD $100.3 n/a $4.5 53.9% n/a -10.9% n/a n/a n/a n/a -76.1%
Qualys, Inc. QLYS $801.6 $692.5 $119.4 77.4% 11.8% 20.4% 5.8x 48.9x 4.8x 25.6x 4.9%
RingCentral, Inc. RNG $908.5 $788.3 $188.3 62.5% -20.5% 38.5% 4.2x n/a 3.3x n/a -24.7%
Rally Software Development RALY $286.9 $209.9 $79.4 74.9% -31.3% 20.2% 2.6x n/a 2.2x n/a -40.3%
Service-now.com NOW $8,906.6 $8,658.2 $542.3 63.3% -15.5% 65.5% 16.0x n/a 10.9x 100.5x 9.8%
Tableau Software DATA $4,499.2 $3,871.9 $307.8 91.4% 5.0% 87.8% 12.6x 252.0x 9.0x 174.4x -4.3%
Tangoe TNGO $539.8 $495.4 $200.7 54.5% 7.2% 14.4% 2.5x 34.2x 2.1x 12.5x -22.9%
TrueCar, Inc. NasdaqGS: TRUE $1,588.6 $1,476.7 $172.1 90.9% -17.6% n/a 8.6x n/a 6.3x 89.7x 105.5%
Zendesk, Inc. ZEN $1,968.0 $1,846.4 $96.3 64.0% -38.2% n/a 19.2x n/a 12.8x n/a 102.5%
Zix Corporation ZIXI $228.3 $202.1 $49.3 84.1% 23.5% 6.5% 4.1x 17.5x 3.7x 15.8x -15.8%
Median: $821.5 $788.3 $153.3 63.6% -15.5% 22.2% 4.6x 48.9x 3.9x 33.6x -20.4%
TTM Revenue Growth 22.2%
TTM EBITDA Growth -49.3%
TTM Earnings Growth -35.9%
Gross Profit Margin 63.6%
EBITDA Margin -15.5%
Net Income Margin -23.0%
SG&A Expenses as a % of Total Revenue 69.0%
R&D Expenses as a % of Total Revenue 20.0%
Current Ratio 2.4
Quick Ratio 2.2
Cash as Percent of Market Cap 13.5%
Avg Days Outstanding: Accounts Receivable 72
Avg Days Outstanding: Accounts Payable 30
Working Capital to TTM Operating Expense Ratio 0.5x
Levered FCF Margin 6.3%
Cash from Operations Growth (YoY) 10.7%
Cash from Investing Growth (YoY) -68.5%
Cash from Financing Growth (YoY) 112.4%
Levered FCF Growth (YoY) 7.5%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
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Other Public SaaS Companies SaaS Stock Market Return: January - August 2014
Other SaaS S&P NASDAQ SEG SaaS
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
SEG Software Index
Select Software Industry M&A Transactions
SEG SaaS Index
SEG Internet Index
SEG Internet Index: All Categories
Category Name Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
SEG Internet Index $1,203.7 $1,144.2 $438.3 64.9% 8.5% 19.8% 2.5x 20.4x 2.0x 13.6x -12.5%
Ad Tech & Lead Generation $1,466.3 $1,587.3 $514.0 62.4% 6.3% 26.8% 2.0x 22.5x 1.8x 15.1x -28.4%
Commerce $488.3 $395.1 $373.7 37.9% 6.3% 14.1% 1.0x 18.2x 1.3x 12.5x -14.8%
Content & Media $2,951.0 $2,377.8 $550.6 46.0% 13.7% 10.8% 2.8x 18.2x 2.6x 12.4x -3.1%
Gaming $2,432.98 $1,879.7 $749.6 69.1% 21.0% 14.1% 2.7x 10.4x 2.3x 17.6x -22.4%
Infrastructure $643.29 $487.7 $309.3 62.4% 5.1% 9.8% 1.4x 17.1x 1.1x 11.4x -10.0%
Services $872.98 $685.9 $208.6 73.7% 7.2% 34.5% 2.6x 27.3x 2.2x 17.7x -10.2%
Social $5,940.96 $5,590.1 $867.7 63.0% 10.6% 63.7% 13.7x 33.3x 10.1x 29.1x 8.7%
Travel $5,931.84 $5,549.7 $943.7 83.0% 15.6% 22.1% 5.4x 20.7x 5.8x 18.0x 19.2%
TTM Revenue Growth 19.8%
TTM EBITDA Growth 14.3%
TTM Earnings Growth 11.2%
Gross Profit Margin 64.9%
EBITDA Margin 8.5%
Net Income Margin -0.7%
SG&A Expenses as a % of Total Revenue 40.3%
R&D Expenses as a % of Total Revenue 14.9%
Current Ratio 2.5
Quick Ratio 2.2
Cash as Percent of Market Cap 16.5%
Avg Days Outstanding: Accounts Receivable 38
Avg Days Outstanding: Accounts Payable 51
Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 8.4%
Cash from Operations Growth (YoY) 17.7%
Cash from Investing Growth (YoY) -71.1%
Cash from Financing Growth (YoY) 84.5%
Levered FCF Growth (YoY) -4.4%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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SEG Internet Index Stock Market Return: January - August 2014
DOW S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Ad Tech and Lead Generation
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Angie's List, Inc. ANGI $448.8 $407.3 $285.8 73.3% -8.2% 43.2% 1.4x n/a 1.2x 25.5x -43.5%
Baidu.com, Inc. BIDU $75,212.8 $71,572.9 $6,415.8 63.6% 38.4% 52.8% 11.2x 29.1x 7.4x 22.4x 19.2%
Bankrate, Inc. RATE $1,466.3 $1,587.3 $510.6 66.7% 23.2% 20.4% 3.1x 13.4x 2.7x 10.3x -19.5%
Conversant, Inc. CNVR $1,764.7 $1,746.1 $593.8 67.4% 33.3% 6.0% 2.9x 8.8x 2.7x 8.0x 19.2%
Coupons.com, Inc. COUP $1,186.0 $987.5 $195.5 65.4% -6.6% n/a 5.1x n/a 3.8x 31.6x -49.1%
Criteo SA CRTO $2,223.1 $1,908.9 $777.0 36.1% 7.5% 60.8% 2.5x 32.9x 4.5x 18.4x -28.4%
Google Inc. GOOGL $390,264.5 $340,276.5 $65,142.0 57.7% 29.8% 21.1% 5.2x 17.5x 4.8x 11.8x 4.6%
Groupon GRPN $4,551.5 $3,681.2 $2,872.7 52.7% 3.3% 18.9% 1.3x 39.2x 1.1x 10.8x -42.6%
InterActiveCorp IACI $5,802.9 $5,840.0 $2,977.9 70.1% 17.3% -1.4% 2.0x 11.4x 1.9x 10.1x 3.7%
LinkedIn LNKD $27,746.9 $25,385.2 $1,847.2 86.8% 10.6% 48.5% 13.7x 129.3x 10.1x 38.2x 8.7%
Marchex Inc. MCHX $367.2 $292.3 $180.4 36.9% 5.4% 30.3% 1.6x 29.9x 1.5x 16.7x -12.4%
QuinStreet QNST $209.9 $164.3 $282.5 14.4% 3.9% -7.4% 0.6x 14.7x 0.6x 10.1x -45.6%
ReachLocal, Inc. RLOC $152.0 $87.4 $514.0 49.7% -1.5% 5.5% 0.2x n/a 0.2x n/a -58.9%
Rocket Fuel, Inc. FUEL $584.1 $414.7 $315.1 49.1% -5.5% 97.4% 1.3x n/a 0.8x n/a -72.6%
The Rubicon Project, Inc. RUBI $349.3 $243.8 $99.5 82.3% -8.1% n/a 2.5x n/a 1.8x n/a -51.5%
SINA Corporation SINA $3,051.7 $1,817.3 $740.1 62.3% 9.3% 28.7% 2.5x 26.4x 2.2x 46.1x -45.5%
Sohu.com Inc. SOHU $2,272.5 $1,893.1 $1,519.2 62.4% 6.3% 23.4% 1.2x 19.8x 1.0x 45.6x -19.4%
Tree.Com, Inc. TREE $361.7 $274.1 $155.9 95.6% 7.8% 38.3% 1.8x 22.5x 1.6x 11.2x -1.9%
Tremor, Inc. TRMR $152.0 $68.2 $150.1 35.4% -9.5% 22.1% 0.5x n/a 0.4x n/a -47.4%
Yandex YNDX $9,038.6 $8,957.3 $1,335.1 70.8% 37.8% 36.2% 6.7x 17.7x 5.7x 13.6x -33.3%
YuMe YUME $172.4 $111.5 $167.9 47.6% 0.8% 26.8% 0.7x 87.8x 0.6x n/a -28.3%
Median: $1,466.3 $1,587.3 $514.0 62.4% 6.3% 26.8% 2.0x 22.5x 1.8x 15.1x -28.4%
TTM Revenue Growth 26.8%
TTM EBITDA Growth 10.7%
TTM Earnings Growth -51.7%
Gross Profit Margin 62.4%
EBITDA Margin 6.3%
Net Income Margin -1.7%
SG&A Expenses as a % of Total Revenue 42.7%
R&D Expenses as a % of Total Revenue 10.3%
Current Ratio 3.4x
Quick Ratio 3.2x
Cash as Percent of Market Cap 19.1%
Avg Days Outstanding: Accounts Receivable 51.9x
Avg Days Outstanding: Accounts Payable 66.3x
Working Capital to TTM Operating Expense Ratio 0.5x
Levered FCF Margin 3.6%
Cash from Operations Growth (YoY) 9.7%
Cash from Investing Growth (YoY) -43.7%
Cash from Financing Growth (YoY) 297.1%
Levered FCF Growth (YoY) -26.0%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Ad Tech and Lead Generation Stock Market Return: January - August 2014
Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Commerce
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
1-800-FLOWERS.COM, Inc. FLWS $330.0 $332.4 $756.3 41.7% 5.8% 2.8% 0.4x 7.6x 0.4x 6.0x -2.6%
58.com Inc. WUBA $3,648.7 $3,234.4 $199.7 94.9% 14.5% 86.7% 16.2x 111.8x 10.3x n/a 9.6%
Amazon.com, Inc. AMZN $156,648.7 $151,781.7 $81,759.0 28.3% 4.9% 22.3% 1.9x 37.8x 1.5x 21.2x -14.8%
Bitauto Holdings Limited BITA $3,644.7 $3,466.9 $279.4 78.9% 23.5% 43.7% 12.4x 52.7x 8.8x 29.5x 181.3%
BlueNile NILE $336.2 $297.2 $455.2 18.7% 3.6% 5.6% 0.7x 18.2x 0.6x 12.5x -38.7%
Borderfree, Inc. BRDR $441.4 $320.7 $116.6 24.3% 1.1% 17.4% 2.8x 256.2x 2.1x 32.4x -30.0%
Chegg, Inc. CHGG $578.3 $519.1 $277.6 31.7% 6.3% 16.8% 1.9x 29.7x 1.5x 254.6x -16.8%
DangDang DANG $1,116.8 $856.0 $1,156.9 18.0% 0.6% 25.6% 0.7x 133.5x 0.6x 22.2x 41.9%
Digital River Inc. DRIV $488.3 $231.4 $373.7 66.0% 9.2% -3.3% 0.6x 6.8x 0.6x 4.4x -17.0%
eBay Inc. EBAY $68,887.3 $66,839.3 $17,050.0 68.2% 29.2% 13.5% 3.9x 13.4x 3.4x 10.7x 2.9%
GeekNet GKNT $74.2 $28.9 $142.8 18.5% -1.2% 14.1% 0.2x n/a 0.2x 13.6x -38.7%
Liquidity Services, Inc. LQDT $452.1 $395.1 $506.4 37.9% 13.1% 1.5% 0.8x 6.0x 0.8x 6.7x -32.1%
Mecox Lane Limited MCOX $52.8 $44.2 $85.6 40.7% -15.4% -36.9% 0.5x n/a n/a n/a 13.1%
Mercadolibre, Inc. MELI $5,075.5 $4,869.4 $504.9 78.8% 35.9% 21.4% 9.6x 26.9x 9.2x 26.0x 11.6%
Overstock.com, Inc. OSTK $424.6 $322.7 $1,372.8 18.8% 1.3% 14.2% 0.2x 17.5x 0.2x 8.4x -40.2%
PetMed Express, Inc. PETS $284.3 $239.6 $231.7 33.4% 12.7% -0.6% 1.0x 8.2x 1.0x 8.1x -13.3%
Stamps.com STMP $533.1 $493.1 $131.2 78.8% 27.7% 6.4% 3.8x 13.6x 3.3x 11.3x -19.6%
Median: $488.3 $395.1 $373.7 37.9% 6.3% 14.1% 1.0x 18.2x 1.3x 12.5x -14.8%
TTM Revenue Growth 14.1%
TTM EBITDA Growth 21.8%
TTM Earnings Growth -1.8%
Gross Profit Margin 37.9%
EBITDA Margin 6.3%
Net Income Margin -3.6%
SG&A Expenses as a % of Total Revenue 38.0%
R&D Expenses as a % of Total Revenue 18.2%
Current Ratio 2.4x
Quick Ratio 2.1x
Cash as Percent of Market Cap 22.0%
Avg Days Outstanding: Accounts Receivable 59.0x
Avg Days Outstanding: Accounts Payable 40.6x
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 5.7%
Cash from Operations Growth (YoY) 2.1%
Cash from Investing Growth (YoY) -74.6%
Cash from Financing Growth (YoY) -19.8%
Levered FCF Growth (YoY) -14.3%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Commerce Internet Stock Market Return: January - August 2014
Commerce S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Content & Media
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
AOL, Inc. AOL $3,400.1 $3,512.1 $2,430.4 28.0% 18.2% 9.9% 1.4x 8.0x 1.4x 6.6x -3.5%
DemandMedia DMD $165.4 $107.6 $372.4 41.4% 4.9% -7.6% 0.3x 5.9x 0.5x 2.8x -19.5%
InterActiveCorp IACI $5,802.9 $5,840.0 $2,977.9 70.1% 17.3% -1.4% 2.0x 11.4x 1.9x 10.1x 3.7%
Netflix NFLX $28,701.9 $27,887.5 $4,891.7 31.1% 8.5% 24.0% 5.7x 67.0x 4.5x 42.0x 31.6%
Pandora P $5,583.4 $5,259.2 $799.8 43.5% -1.4% n/a 6.6x n/a 5.0x 65.2x 1.0%
Shutterstock, Inc. SSTK $2,501.9 $2,266.0 $280.6 60.7% 16.4% 40.8% 8.1x 49.4x 6.2x 30.5x -14.7%
TheStreet.com, Inc. TST $81.3 $24.9 $57.5 48.4% -0.2% 11.7% 0.4x n/a 0.4x 9.8x 7.8%
WebMD Health Corp. WBMD $1,845.9 $2,016.9 $551.4 60.4% 18.0% 12.9% 3.7x 20.4x 3.3x 11.9x 25.3%
XO Group XOXO $314.9 $235.5 $137.3 84.6% 10.6% 4.7% 1.7x 16.1x 1.6x 12.9x -20.3%
Xunlei Limited XNET $717.2 $252.7 $174.1 42.9% 19.8% n/a 1.5x 7.3x 1.2x 4.4x -24.6%
Yahoo! Inc. YHOO $38,302.2 $36,774.4 $4,621.7 71.6% 16.7% -4.2% 8.0x 47.6x 8.5x 31.4x -2.7%
Youku YOKU $4,124.0 $2,489.5 $549.7 29.9% 11.0% 42.0% 4.5x 41.1x 3.3x 39.8x -37.7%
Median: $2,951.0 $2,377.8 $550.6 46.0% 13.7% 10.8% 2.8x 18.2x 2.6x 12.4x -3.1%
TTM Revenue Growth 10.8%
TTM EBITDA Growth 8.7%
TTM Earnings Growth -8.0%
Gross Profit Margin 46.0%
EBITDA Margin 13.7%
Net Income Margin 3.6%
SG&A Expenses as a % of Total Revenue 37.3%
R&D Expenses as a % of Total Revenue 10.4%
Current Ratio 3.0x
Quick Ratio 2.7x
Cash as Percent of Market Cap 21.8%
Avg Days Outstanding: Accounts Receivable 52.3x
Avg Days Outstanding: Accounts Payable 27.8x
Working Capital to TTM Operating Expense Ratio 0.6x
Levered FCF Margin 9.2%
Cash from Operations Growth (YoY) 11.0%
Cash from Investing Growth (YoY) -38.1%
Cash from Financing Growth (YoY) 59.2%
Levered FCF Growth (YoY) -14.2%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
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Internet Content & Media Stock Market Return: January - August 2014
Content & Media S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Gaming
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
ChangYou.com CYOU $1,271.5 $1,151.7 $736.5 80.4% 16.5% 5.3% 1.6x 9.5x 1.5x 17.6x -25.4%
Giant Interactive GA $4.3 $8.6 $0.4 -94.2% n/a n/a 23.6x n/a n/a n/a -37.7%
Netease NTES $11,446.2 $8,464.1 $1,594.0 72.5% 47.0% 14.1% 5.3x 11.3x 4.4x 9.3x 15.7%
NCSoft KOSE:A036570 $2,849.8 $2,132.5 $762.8 69.8% 30.1% -8.4% 2.8x 9.3x 2.3x 6.6x -38.5%
Perfect World PWRD $1,042.7 $803.8 $570.2 75.5% 21.0% 30.9% 1.4x 6.7x 1.2x 7.3x 20.9%
Sohu.com Inc. SOHU $2,272.5 $1,893.1 $1,519.2 62.4% 6.3% 23.4% 1.2x 19.8x 1.0x 45.6x -19.4%
Tencent Holdings SEHK:700 $151,268.7 $148,812.5 $11,361.4 57.1% 35.4% 36.8% 13.1x 37.0x 10.6x 23.9x 25.7%
Zynga, Inc. ZNGA $2,593.5 $1,866.3 $700.2 68.4% -2.5% -37.6% 2.7x n/a 2.4x 20.7x -26.7%
Median: $2,433.0 $1,879.7 $749.6 69.1% 21.0% 14.1% 2.7x 10.4x 2.3x 17.6x -22.4%
TTM Revenue Growth 14.1%
TTM EBITDA Growth -14.0%
TTM Earnings Growth -4.2%
Gross Profit Margin 69.1%
EBITDA Margin 21.0%
Net Income Margin 16.5%
SG&A Expenses as a % of Total Revenue 36.5%
R&D Expenses as a % of Total Revenue 25.6%
Current Ratio 1.8x
Quick Ratio 1.3x
Cash as Percent of Market Cap 28.5%
Avg Days Outstanding: Accounts Receivable 22.4x
Avg Days Outstanding: Accounts Payable 55.3x
Working Capital to TTM Operating Expense Ratio 0.6x
Levered FCF Margin 11.3%
Cash from Operations Growth (YoY) 16.9%
Cash from Investing Growth (YoY) -19.6%
Cash from Financing Growth (YoY) 90.8%
Levered FCF Growth (YoY) 31.8%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Gaming Stock Market Return: January - August 2014
Gaming S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Infrastructure
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
8x8, Inc. EGHT $689.4 $507.4 $137.3 70.5% 4.6% 27.3% 3.7x 79.8x 3.0x 31.3x -22.1%
Akamai Technologies, Inc. AKAM $10,764.6 $10,603.2 $1,761.3 68.5% 35.1% 19.9% 6.0x 17.1x 5.0x 12.0x 29.9%
Brightcove Inc. BCOV $195.9 $176.5 $120.4 66.0% -1.0% 22.8% 1.5x n/a 1.4x n/a -56.6%
BroadSoft, Inc. BSFT $684.3 $621.8 $191.3 74.0% 0.5% 12.8% 3.3x 627.4x 2.8x 16.0x -9.7%
Digital River Inc. DRIV $488.3 $231.4 $373.7 66.0% 9.2% -3.3% 0.6x 6.8x 0.6x 4.4x -17.0%
Envivio, Inc. ENVI $48.9 $4.5 $44.1 64.4% -23.4% 29.9% 0.1x n/a 0.1x n/a -48.4%
Harmonic Inc HLIT $602.3 $467.9 $460.8 47.6% 5.6% 0.8% 1.0x 18.1x 1.1x 12.3x -10.2%
Interactive Intelligence, Inc. ININ $897.9 $824.7 $328.0 61.3% 3.3% 17.4% 2.5x 77.1x 2.3x n/a -35.6%
Limelight Networks, Inc. LLNW $233.2 $126.3 $167.4 48.2% -5.6% -7.0% 0.8x n/a 0.8x n/a 19.1%
Mitel Networks Corp. MITL $996.8 $1,204.6 $776.5 54.8% 11.3% n/a 1.6x 13.8x 1.0x 7.0x 3.7%
Polycom, Inc. PLCM $1,812.5 $1,508.3 $1,344.9 57.9% 10.4% -2.0% 1.1x 10.8x 1.1x 6.7x 18.7%
Rovi Corporation ROVI $2,191.1 $2,907.2 $555.7 81.9% 35.1% 19.8% 5.2x 14.9x 5.4x 12.6x 16.5%
SeaChange International Inc. SEAC $249.1 $138.8 $127.6 51.9% -5.0% -18.6% 1.1x n/a 1.0x 25.1x -37.5%
ShoreTel, Inc. SHOR $418.9 $362.8 $339.8 59.4% 5.6% 8.4% 1.1x 19.0x 1.0x 10.8x -27.6%
Sonus Networks, Inc SONS $930.4 $815.4 $290.6 63.4% 1.6% 9.8% 2.8x 177.2x 2.6x n/a 22.4%
Synacor, Inc SYNC $55.8 $32.9 $105.4 46.0% -0.9% -9.4% 0.3x n/a 0.3x n/a -19.5%
Tucows Inc. TCX $183.2 $174.4 $138.8 26.8% 8.0% 15.5% 1.3x 15.6x 1.1x 10.6x 23.5%
VeriSign VRSN $7,135.6 $6,958.2 $988.5 81.1% 61.5% 6.3% 7.0x 11.4x 6.7x 10.2x -4.9%
Median: $643.3 $487.7 $309.3 62.4% 5.1% 9.8% 1.4x 17.1x 1.1x 11.4x -10.0%
TTM Revenue Growth 9.8%
TTM EBITDA Growth 21.8%
TTM Earnings Growth -1.8%
Gross Profit Margin 62.4%
EBITDA Margin 5.1%
Net Income Margin -3.6%
SG&A Expenses as a % of Total Revenue 38.0%
R&D Expenses as a % of Total Revenue 18.2%
Current Ratio 2.4x
Quick Ratio 2.1x
Cash as Percent of Market Cap 22.0%
Avg Days Outstanding: Accounts Receivable 59.0x
Avg Days Outstanding: Accounts Payable 40.6x
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 5.7%
Cash from Operations Growth (YoY) 2.1%
Cash from Investing Growth (YoY) -74.6%
Cash from Financing Growth (YoY) -19.8%
Levered FCF Growth (YoY) -14.3%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Infrastructure Stock Market Return: January - August 2014
Infrastructure S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Services
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Angie's List, Inc. ANGI $448.8 $407.3 $285.8 73.3% -8.2% 43.2% 1.4x n/a 1.2x 25.5x -43.5%
Bankrate RATE $1,466.3 $1,587.3 $510.6 66.7% 23.2% 20.4% 3.1x 13.4x 2.7x 10.3x -19.5%
Carbonite, Inc. CARB $286.6 $214.2 $115.9 68.4% 7.2% 20.8% 1.8x 25.8x 1.7x 17.7x -10.2%
Care.com, Inc. CRCM $287.6 $174.2 $95.3 77.4% -32.4% n/a 1.8x n/a 1.2x n/a -62.3%
eHealth, Inc. EHTH $436.0 $365.6 $189.7 97.5% 4.6% 14.4% 1.9x 41.8x 1.8x 17.8x -49.7%
Everyday Health, Inc. EVDY $442.3 $427.3 $167.1 73.0% 8.9% n/a 2.6x 28.8x 2.2x 11.7x 3.3%
GrubHub Inc. GRUB $3,030.3 $2,823.2 $203.1 74.4% 21.8% n/a 13.9x 63.7x 10.2x 36.1x 13.1%
LifeLock, Inc. LOCK $1,374.9 $1,158.9 $421.3 73.7% 5.2% 30.6% 2.8x 52.7x 2.2x 18.1x -6.0%
Monster Worldwide, Inc. MWW $512.5 $685.9 $788.1 49.6% 10.9% -6.6% 0.9x 8.0x 0.9x 7.1x -18.3%
Qihoo QIHU $11,060.2 $10,941.5 $992.6 82.6% 26.6% 121.3% 11.0x 41.5x 6.6x 17.7x 7.3%
Shutterfly SFLY $1,963.3 $1,933.7 $829.7 52.3% 9.9% 18.4% 2.3x 23.6x 2.0x 11.2x 3.2%
Tree.Com, Inc. TREE $361.7 $274.1 $155.9 95.6% 7.8% 38.3% 1.8x 22.5x 1.6x 11.2x -1.9%
Trulia, Inc. TRLA $2,299.4 $2,314.5 $208.6 82.5% -12.6% 124.7% 11.1x n/a 7.7x 58.9x 75.0%
VistaPrint VPRT $1,560.8 $1,961.8 $1,270.2 64.5% 13.0% 8.8% 1.5x 11.9x 1.3x 8.2x -12.5%
Wix.com Ltd. WIX $620.0 $523.0 $109.1 81.2% -40.0% 85.3% 4.8x n/a 3.2x n/a -36.2%
Xoom XOOM $873.0 $667.0 $140.2 69.3% 6.5% 40.4% 4.8x 72.7x 3.7x 36.5x -15.8%
Zillow Z $5,747.1 $5,389.1 $256.6 90.9% -1.9% 68.6% 21.0x n/a 14.1x 76.8x 74.8%
Median: $873.0 $685.9 $208.6 73.7% 7.2% 34.5% 2.6x 27.3x 2.2x 17.7x -10.2%
TTM Revenue Growth 34.5%
TTM EBITDA Growth 27.9%
TTM Earnings Growth 14.3%
Gross Profit Margin 73.7%
EBITDA Margin 7.2%
Net Income Margin -3.3%
SG&A Expenses as a % of Total Revenue 53.0%
R&D Expenses as a % of Total Revenue 19.1%
Current Ratio 2.6x
Quick Ratio 2.4x
Cash as Percent of Market Cap 14.3%
Avg Days Outstanding: Accounts Receivable 21.4x
Avg Days Outstanding: Accounts Payable 58.2x
Working Capital to TTM Operating Expense Ratio 0.4x
Levered FCF Margin 9.0%
Cash from Operations Growth (YoY) 37.0%
Cash from Investing Growth (YoY) -71.1%
Cash from Financing Growth (YoY) 85.3%
Levered FCF Growth (YoY) -12.4%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Services Stock Market Return: January - August 2014
Services S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Social
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Facebook FB $194,535.9 $180,905.9 $10,013.0 80.9% 54.2% 63.7% 18.1x 33.3x 12.7x 20.0x 36.8%
LinkedIn LNKD $27,746.9 $25,385.2 $1,847.2 86.8% 10.6% 48.5% 13.7x 129.3x 10.1x 38.2x 8.7%
Mail.ru Group LSE:MAIL $5,614.4 $4,838.9 $867.7 61.2% 45.5% 24.5% 5.6x 12.3x 5.0x 9.6x -39.3%
Renren Inc RENN $1,199.5 $312.9 $115.5 42.4% -81.4% -40.9% 2.7x n/a 3.4x n/a 5.4%
Twitter, Inc. TWTR $30,181.2 $28,285.9 $973.9 63.0% -73.1% 117.3% 29.0x n/a 16.3x 82.6x -26.3%
Yelp, Inc. YELP $5,941.0 $5,590.1 $297.0 93.2% 2.2% 66.2% 18.8x 864.1x 12.3x 60.4x 21.3%
YY, Inc. YY $4,744.9 $4,344.7 $419.2 52.5% 31.9% 113.7% 10.4x 32.5x 6.4x 19.9x 61.8%
Median: $5,941.0 $5,590.1 $867.7 63.0% 10.6% 63.7% 13.7x 33.3x 10.1x 29.1x 8.7%
TTM Revenue Growth 63.7%
TTM EBITDA Growth 32.0%
TTM Earnings Growth 67.1%
Gross Profit Margin 63.0%
EBITDA Margin 10.6%
Net Income Margin 23.8%
SG&A Expenses as a % of Total Revenue 50.0%
R&D Expenses as a % of Total Revenue 21.4%
Current Ratio 6.7x
Quick Ratio 6.4x
Cash as Percent of Market Cap 8.5%
Avg Days Outstanding: Accounts Receivable 43.0x
Avg Days Outstanding: Accounts Payable 32.7x
Working Capital to TTM Operating Expense Ratio 1.3x
Levered FCF Margin 30.1%
Cash from Operations Growth (YoY) 61.7%
Cash from Investing Growth (YoY) -274.5%
Cash from Financing Growth (YoY) 1307.4%
Levered FCF Growth (YoY) 20.5%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
September 2014 Monthly Flash Report
Income Statement Analysis (Median)
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Internet Social Stock Market Return: January - August 2014
Social S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Travel
Company Name Ticker Market Cap EV
TTM
Revenue
TTM
Gross
Margin
TTM
EBITDA
Margin
TTM
Revenue
Growth EV/ Revenue
EV/
EBITDA
Forward
EV/ Revenue
Forward
EV/
EBITDA YTD
Ctrip CTRP $8,743.2 $8,454.3 $1,010.8 72.9% 12.3% 34.3% 8.4x 68.0x 6.3x 41.7x 29.9%
Expedia EXPE $10,925.5 $10,407.0 $5,248.9 78.7% 14.0% 19.5% 2.0x 14.2x 1.7x 9.5x 24.9%
HomeAway AWAY $3,120.4 $2,645.1 $400.4 84.8% 16.3% 28.8% 6.6x 40.4x 5.4x 19.7x -17.3%
MakeMyTrip MMYT $1,207.8 $1,136.8 $273.1 28.0% -3.5% 12.9% 4.2x n/a 7.8x 90.8x 46.2%
Orbitz OWW $904.0 $1,091.5 $876.7 81.3% 14.9% 7.3% 1.2x 8.3x 1.1x 6.6x 15.3%
Priceline PCLN $65,261.6 $59,903.9 $7,576.4 87.5% 38.2% 28.9% 7.9x 20.7x 6.4x 16.2x 8.6%
Travelzoo TZOO $251.1 $190.6 $151.8 88.0% 16.4% -2.7% 1.3x 7.6x 1.2x 8.1x -19.0%
TripAdvisor Inc TRIP $14,148.6 $13,863.6 $1,071.7 97.5% 31.0% 24.7% 12.9x 41.8x 9.9x 24.8x 23.1%
Median: $5,931.8 $5,549.7 $943.7 83.0% 15.6% 22.1% 5.4x 20.7x 5.8x 18.0x 19.2%
TTM Revenue Growth 22.1%
TTM EBITDA Growth 14.5%
TTM Earnings Growth 29.1%
Gross Profit Margin 83.0%
EBITDA Margin 15.6%
Net Income Margin 5.1%
SG&A Expenses as a % of Total Revenue 52.2%
R&D Expenses as a % of Total Revenue 15.4%
Current Ratio 1.7x
Quick Ratio 1.5x
Cash as Percent of Market Cap 19.6%
Avg Days Outstanding: Accounts Receivable 38.5x
Avg Days Outstanding: Accounts Payable 200.1x
Working Capital to TTM Operating Expense Ratio 0.5x
Levered FCF Margin 14.7%
Cash from Operations Growth (YoY) 11.7%
Cash from Investing Growth (YoY) 47.3%
Cash from Financing Growth (YoY) -28.5%
Levered FCF Growth (YoY) 11.2%
Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Travel Stock Market Return: January - August 2014
Travel S&P NASDAQ SEG Internet Index