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About Results International
Deep domain expertise in three inter-related sectors… … and broad industry networks
A market-leading corporate finance advisory firm…
• Founded in 1991
• Entrepreneurial and owner-managed
• 40 person team; 250+ completed transactions • Broad global network
• Creative solutions
• Senior level focus on every transaction
…with global reach
50%
60%
70%
80%
90%
100%
110%
120%
Jan-14 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
NASDAQ Comp Diversified Internet Data MarTech AdTech
Results International Global AdTech & MarTech Indices
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2.0%
(3.3%)
14.3%
(7.2%)
(34.3%)
201
4 s
ha
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Q4 2014 Performance
MarTech 14.5%
Data 9.8%
AdTech 8.2%
Nasdaq Comp 5.4%
Diversified Internet (4.4%)
Jan 14 Feb 14 Nov 14 Oct 14 Sep 14 Aug 14 Jul 14 May 14 Apr 14 Mar 14 Jun 14 Dec 14
Note: Based on share prices as at 31st December 2014
Note: Indices weighted by market capitalisation
Sources: Capital IQ and Results analysis
(87.1%)
18.2%
-
(17.4%)
-
(78.0%)
14.5%
(41.6%)
(73.8%)
-
(50.5%)
-
(32.3%)
1.5%
(45.0%)
18.1%
(10.3%)
-
(11.7%)
(45.2%)
8.8%
(2.3%) (4.0%)
(22.2%)
(1.0%)
2.3%
42.8%
(5.3%)
24.9%
(100%)
(80%)
(60%)
(40%)
(20%)
-
20%
40%
60%
AdTech & MarTech: Share Price Performance
3
AdTech Diversified Internet
Q4 2
014
2014 s
ha
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ric
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orm
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MarTech Data
Note: (1) Crossrider’s EV/Net Revenue multiple has been calculated using their run-rate Net Revenue from H1 2014 as per their IPO admission document
Note: (2) Hubspot IPO’d on 9th October 2014, this price represents the increase between that date and 31st December 2014
Note: Based on share prices as at 31st December 2014
Sources: Capital IQ and Results analysis
(24.8%)
20.1%
5.8%
(1.6%)
2.2%
(14.0%)
5.6%
(44.9%)
2.0%
37.6%
22.6%
96.1%
0.8% 8.8%
39.4% 35.2%
13.0% 11.6%
1.3%
22.5% 15.2%
10.6% 4.2%
(3.7%)
2.7%
(0.9%) (1.3%) (9.8%)
24.0%
(60%)
(40%)
(20%)
-
20%
40%
60%
80%
100%
120%
EV/2014
Net Revenue 0.4x 5.9x 4.3x 2.4x 5.7x
(2)
1.2x 3.8x 2.4x 2.9x 4.6x 1.2x 9.3x 1.3x 3.1x 1.9x 3.3x 12.7x 9.5x 10.3x 1.7x 5.5x 4.2x 2.2x 1.6x 2.0x 3.8x 5.9x 8.7x 16.6x (1)
AdTech & MarTech: Selected Stocks – Performance Since IPO
4
Company IPO date Description Raised
($) Indicative price
range ($)
IPO listing
price ($)
Day 1
increase
Current
increase(1)
Current
EV ($)
EV / Net
Revenue
2014E
EV / EBITDA
2014E
Oct-14 Marketing automation 125 22.0-24.0 25.0 20.4% 34.4% 1,167 10.3x n.m.
Sept-14 Multi-channel ad server, 75 n.a. 1.7 0.8% 2.4% 179 4.3x 26.0x
Jul-14 Programmatic video DSP
44 7.0-8.0 7.0 64.3% 222.1% 717 9.3x n.m.
Jul-14 Multi-channel ad network
70 n.a. 3.9 4.4% (6.8%) 408 5.7x 20.5x
Apr-14 SSP 102 15.0-17.0 15.0 33.9% 7.6% 560 4.6x 55.2x
Nov-13 Multi-channel network 33 n.a. 1.0 20.0% (51.9%) 83 2.4x n.m.
Oct-13 DSP focused on retargeting
251 27.0-29.0 31.0 14.2% 30.4% 2,130 5.9x 28.2x
Sep-13 DSP 116 27.0-29.0 29.0 93.4% (44.4%) 692 2.9x n.m.
Aug-13 Video ad network 46 12.0-14.0 9.0 0.0% (44.0%) 109 1.3x n.m.
Jun-13 Video ad network 75 11.0-13.0 10.0 (15.0%) (71.3%) 69 1.2x n.m.
May-13 Marketing automation 79 11.0-13.0 13.0 77.7% 151.7% 1,411 9.5x n.m.
Nasdaq
LSE
NYSE
AIM
Nasdaq
Nasdaq
NYSE
NYSE
Nasdaq
AIM
NYSE
Note: (1) Current increase from IPO price; Market data as of 31st December 2014
Note: (2) Crossrider’s EV/ Net Revenue multiple has been calculated using their run-rate Net Revenue from H1 2014 as per their IPO admission document
Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 60x EV / EBITDA
Sources: Capital IQ and Results analysis
(2)
AdTech & MarTech: Valuation Benchmarks
5
Revenue growth (2014-15E) EV / Net Revenue 2014E
(1) (1)
29.0%
22.5%
2.8%
14.4%
21.3%
-
5%
10%
15%
20%
25%
30%
35%
AdTech MarTech Data Diversified
Internet
Global AdTech/
MarTech
2.9 x
6.4 x
3.2 x
4.8 x
3.8 x
0.0 x
1.0 x
2.0 x
3.0 x
4.0 x
5.0 x
6.0 x
7.0 x
AdTech MarTech Data Diversified
Internet
Global AdTech/
MarTech
Note: (1) Global AdTech / MarTech represents the average of all stocks in AdTech, MarTech, Data & Diversified Internet, with no weighting applied
Note: EV = Enterprise Value; Financials calendarised to December year end
Note: Median values reported; exclude negative multiples
Note: See Selected Publicly Traded Companies (Slide 11) for details of companies included in each category
Source: Capital IQ & analyst reports
AdTech & MarTech: Global M&A Activity 2013-2014
6
54
43
74
52
108
101
113
106
-
$1bn
$2bn
$3bn
$4bn
$5bn
$6bn
$7bn
0
20
40
60
80
100
120
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Tota
l dis
clo
sed
de
al v
alu
e (
$b
n)
Nu
mb
er o
f d
ea
ls
Number of deals Total disclosed deal value ($bn)
Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis
AdTech & MarTech: Selected Deals in 2014 Date Buyer Target EV ($m) EV / Revenue Company description Target location
Dec 14 - - Online to offline DMP
Dec 14 200 - Premium ad exchange and SSP
Nov 14 640 6.4x Video ad exchange
Oct 14 60 8.6x Mobile programmatic DSP
Oct 14 321 4.3x PR & media monitoring
Oct 14 80 10.0x Streaming video distribution & analytics
Oct 14 190 3.4x Mobile SSP
Sept 14 115 14.8x Mobile SSP & exchange
Sept 14 2,216 5.4x Ad platform with mobile and display and affiliate network
Aug 14 360 6.8x Video distribution & analytics
Aug 14 230 2.6x DSP & DMP
Jul 14 222 2.2x Video SSP
Jul 14 175 4.6x B2B display ad network
Jul 14 270 5.4x Mobile app analytics
Jul 14 51 1.4x Omni-channel eCommerce
Jul 14 352 - Relationship intelligence
Jul 14 43 7.6x Multi-channel network
Jul 14 382 5.5x Video SSP
7
(1)
Note: (1) In certain cases EV/Revenue are estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV = transaction value scaled to
100% shareholding plus net debt (incl. minority interest)
Sources: Press Releases, Capital IQ, Mergermarket, PitchBook, 451 Research and Results analysis
Date Buyer Target EV ($m) EV / Revenue Company description Target location
Jun 14 100 - Mobile ad retargeting platform
Jun 14 75 1.4x Mobile video network
Jun 14 150 5.8x Big data marketing intelligence
Jun 14 235 1.3x Cross channel ad network
May 14 - - Marketing attribution
May 14 - - TV and video marketing analytics
May 14 310 12.4x Data on boarding technology to assist advertising decisions
May 14 150 7.5x Marketing attribution
May 14 89 8.1x Marketing attribution
Apr 14 - - Marketing campaign management
Apr 14 413 2.2x Contact database with social media/news monitoring
Apr 14 200 2.0x Programmatic DSP
Mar 14 200 - Social media measurement
Mar 14 - - Tag management
Mar 14 360 16.4x Video ad placement
Feb 14 408 6.5x DMP
Feb 14 - - Ad fraud identification
Jan 14 - - Mobile ad network
AdTech & MarTech: Selected Deals in 2014
8
(1)
Note: (1) In certain cases EV/Revenue are estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV = transaction value scaled to
100% shareholding plus net debt (incl. minority interest)
Sources: Press Releases, Capital IQ, Mergermarket, PitchBook, 451 Research and Results analysis
Date Company Type of round Funds
raised ($m) Investor participation Company description
Company
headquarters
Dec 14 Series B 65 Andreessen Horowitz Big data and analytics
Nov 14 Series D 50 SoftBank Capital (lead investor), Telstra Ventures, American Express, General
Catalyst and Revolution Growth eCommerce and marketing
Nov 14 Series C 80 Wellington Management Mobile payments and eCommerce
Nov 14 Series F 35
Intel Venture Capital (lead investor), Common Fund Capital, Vintage
Investment Partners, Adobe, Advance Publications, Benchmark Capital, DAG
Ventures, Greenspring Associates and Mayfield Fund
Data-focused social targeting
Oct 14 Series E 110 Unknown Boston-based public equity and asset management firm (lead
investors) and WPP Ad exchange & DSP
Oct 14 Series F 70 Discovery Capital Card-linked targeted marketing
Oct 14 Series B 185 MasterCard, Wellington Management, Tiger Management Corporation and
private investors Mobile payments and marketing
Sept 14 Series D 10 BSkyB (lead investor), FLOODGATE, Elevation Partners, North Bridge Venture
Partners and Silver Creek Ventures Native ad network
Sept 14 Series B 26 Accel Partners (lead investor), Balderton Capital, Salesforce Ventures eCommerce personalisation
Sept 14 Series C 60 Fidelity (lead investor), Accel Partners, Insight Venture Partners, OMERS
Ventures and Silicon Valley Bank Social media monitoring
Sept 14 - 30 PINOVA Capital and L-Bank Marketing resource management
Sept 14 Series C 55
Founders Fund (lead investor), BlueRun Ventures, Formation 8 Partners, Glynn
Capital Management, Slow Ventures, Western Technology Investment, Yuan
Capital and private investors
B2B marketing data & analytics
Sept 14 Series E 30
NewSpring Capital (lead investor), Apex Venture Partners, SSM Partners,
Origin Ventures, River Cities Capital Funds, i2A Illinois Accelerator Fund and
Spring Mill Venture Partners
Voice-based marketing automation
Sept 14 Series D 50 Institutional Venture Partners (lead investor), Emergence Capital, Softbank
Capital and Silicon Valley Bank Location driven ad serving
Aug 14 Series E 25 Singapore Press Holdings (lead investor), Aeris CAPITAL, EDBI and private
investors Mobile ad exchange & SSP
Jul 14 Series C 24 NewSpring Capital (lead investor), U.S. Venture Partners, Menlo Ventures and
Venrock Ad analytics and targeting
Jun 14 Series E 50 SoftBank Capital (lead investor), Insight Venture Partners, Telstra Ventures,
Georgian Partners, Delta-V and Hamilton Lane Mobile app development platform
AdTech & MarTech: Selected Fundraisings in 2014
9
Notes: (1) AppNexus announced their Series E in several stages, eventually closing the round in October 2014 having raised $110m
Source: Press Releases, Capital IQ, Mergermarket, PitchBook and Results analysis
(1)
AdTech & MarTech: Selected Fundraisings in 2014
Date Company Type of round Funds
raised ($m) Investor participation Company description
Company
headquarters
Jun 14 Series C 70 New Enterprise Associates (lead investor), Benchmark Capital and Index
Ventures End-to-end search and analytics
Jun 14 - 35 Goldman Sachs & Co (lead investor), Sterling Partners and SAP Ventures Sales enablement
Jun 14 Series F 50 Insight Venture Partners (lead investors), Marker, Institutional Venture Partners,
and Sutter Hill Ventures Local marketing content management
Jun 14 Series C 74 Spring Lake Equity Partners (lead investor), Akamai Technologies, Safeguard
Scientifics, Catalyst Investors and Observatory Capital DSP
May 14 Series C 45 Wellington Management Company (lead investor) and Institutional Venture
Partners Online to offline DMP
May 14 Series B 22 Highland Capital Partners (lead investor), Nauta Capital and other existing
investors Social media analytics and listening
May 14 Series C 61 Zouk Capital (lead investor), Dawn Capital, Intel Capital, Greylock Partners,
Index Ventures, Northzone, Creandum, SEB and Hasso Plattner Ventures Mobile payments
Apr 14 Series D 40 ICONIQ Capital (lead investor), Battery Ventures and Intel Capital Social media management
Apr 14 Series F 100 BlackRock and Passport Capital (lead investors), T. Rowe Price and Wellington
Management App performance management
Apr 14 Series C 70
Foundation Capital (lead investor), Institutional Venture Partners, Northgate
Capital, Performance Equity, Glenmede, Merus Capital, Accel Partners and
private investors Retargeting DSP
Apr 14 Series B 40 General Atlantic Website design and build platform
Mar 14 Series C 40 Redpoint Ventures (lead investor), Kleiner Perkins Caufield & Byers, Felicis
Ventures and News Corp Relationship intelligence & management
Mar 14 Series A 48 Gaorang Capital (lead investor), plus other undisclosed investors DSP and ad exchange
Feb 14 Series C 41 Dawn Capital (lead investor), ePlanet Capital, Frog Capital, Westcoast
Capital, WPP and WTI Omni-channel commerce
Feb 14 Series C 26 Index Ventures (lead investor) and Earlybird Venture Capital. Social media analytics
Jan 14 Series B 40 Insight Venture Partners Tag management
Jan 14 Series E 80
Fidelity Investments and BlackRock (lead investors), ClearBridge Investment,
Firsthand Technology Value Fund, Northport Investments, Pine River Capital
Management, Focus Ventures, Norwest Venture Partners, Shasta Ventures
and Trident Capital
DSP & DMP
10
Notes: (1) MediaMath also raised $105m in debt from Silicon Valley Bank, bringing the total raised to $178.5m;
(2) iZettle raised an initial €40m in May and increased this by €5m in July to reach €45m ($61m)
Source: Press Releases, Capital IQ, Mergermarket, PitchBook and Results analysis
(1)
(2)
AdTech & MarTech: Selected Publicly Traded Companies
11
Source: Capital IQ, Market Data as of 31 December 2014. Note: Calendarised to December year end. Cap multiple at 20x EV/Revenue and 60x EV/EBITDA. Net debt is inclusive of minority interest and preferred equity. Net revenues have been used where appropriate. Yahoo – financials taken from Credit Suisse (November 2014) & checked against company's financial results, market data taken from CapitalIQ, Google – financials taken from J.P. Morgan (December 2014) & checked against company's financial results, market data taken from CapitalIQ, AOL – financials taken from Macquarie (November 2014) & checked against company's financial results, market data taken from CapitalIQ, Rocket Fuel – financials taken from Credit Suisse (November 2014) & checked against company's financial results, market data taken from CapitalIQ, Criteo – financials taken from J.P. Morgan (November 2014) & checked against company's financial results, market data taken from CapitalIQ, Tremor Video – financials taken from Credit Suisse (November 2014) & checked against company's financial results, market data taken from CapitalIQ, Millennial Media – financials taken from Evercore (September 2014) & checked against company's financial results, market data taken from CapitalIQ, YuMe – financials taken from Deutsche Bank (November 2014) & checked against company's financial results, market data taken from CapitalIQ, company's financial results, market data taken from CapitalIQ, Blinkx – financials taken from Numis (May 2014) & checked against company's financial results, market data taken from CapitalIQ, Matomy Media - financials taken from Canaccord Genuity (October 2014) & checked against company's financial results, market data taken from CapitalIQ; TubeMogul - financials taken from RBC (December 2014) & checked against company's financial results, market data taken from CapitalIQ; Crossrider – financials taken from their IPO Admission Document, using a H1 run-rate to calculate FY2014, market data taken from CapitalIQ
Valuation Metrics Operating Metrics
Price % of 52 Market Net Enterprise Net Revenue EBITDA Revenue Growth EBITDA Margin
Company (31-Dec-14) Week High Cap Debt Value CY2014 CY2015 CY2014 CY2015 CY13-14 CY14-15 CY2014 CY2015
AdTech
Blinkx plc 0.41 12.0% 166 (115) 51 0.4 x 0.3 x 1.2 x 1.0 x 16.3% 15.1% 30.2% 31.4%
Criteo SA 40.42 66.3% 2,426 (296) 2,130 5.9 x 4.3 x 28.2 x 17.0 x 66.4% 36.6% 20.9% 25.4%
Crossrider Plc 1.71 97.1% 255 (75) 179 4.3 x n.a. 26.0 x n.a. 263.1% n.a. 16.5% n.a.
Marin Software Incorporated 8.46 66.9% 305 (72) 233 2.4 x 2.0 x n.m. n.m. 27.2% 19.1% (19.8%) (10.3%)
Matomy Media Group Ltd. 3.62 91.3% 349 59 408 5.7 x 4.2 x 20.5 x 12.0 x 26.3% 34.4% 27.8% 35.2%
Millennial Media Inc. 1.60 19.0% 223 (76) 146 1.2 x 1.0 x n.m. n.m. 12.5% 23.6% (31.5%) (7.9%)
Opera Software ASA 12.70 94.2% 1,862 (82) 1,780 3.8 x 2.6 x 15.9 x 10.2 x 56.2% 46.7% 23.9% 25.4%
Rightster Group Plc 0.46 32.8% 89 (6) 83 2.4 x 0.7 x n.m. 14.7 x 261.8% 219.7% (55.6%) 5.0%
Rocket Fuel Inc. 16.12 22.4% 733 (42) 692 2.9 x 2.3 x n.m. n.m. 71.6% 28.2% (21.0%) (19.9%)
The Rubicon Project, Inc. 16.14 69.6% 664 (104) 560 4.6 x 3.5 x 55.2 x 48.9 x 46.6% 29.0% 8.2% 7.2%
Tremor Video, Inc. 2.87 49.8% 147 (78) 69 1.2 x 0.9 x n.m. n.m. 8.7% 29.0% (27.0%) (15.1%)
TubeMogul, Inc. 22.55 94.6% 763 (46) 717 9.3 x 6.3 x n.m. n.m. 105.5% 47.3% (3.7%) (5.9%)
YuMe, Inc. 5.04 57.3% 167 (57) 109 1.3 x 1.1 x n.m. n.m. 18.7% 17.1% (4.5%) (2.4%)
MarTech
Bazaarvoice, Inc. 8.04 92.1% 630 (54) 575 3.1 x 2.8 x n.m. n.m. 14.0% 13.4% (10.1%) (5.2%)
Brightcove Inc. 7.78 52.9% 254 (20) 234 1.9 x 1.7 x n.m. n.m. 12.9% 8.3% (1.6%) 1.8%
Constant Contact, Inc. 36.70 94.5% 1,248 (154) 1,094 3.3 x 2.8 x 18.1 x 14.4 x 16.0% 17.0% 18.3% 19.6%
Demandware, Inc. 57.54 70.0% 2,224 (259) 1,965 12.7 x 8.9 x n.m. n.m. 49.5% 42.4% 6.3% 6.5%
HubSpot, Inc. 33.61 87.1% 1,182 (14) 1,167 10.3 x 8.0 x n.m. n.m. 46.0% 28.1% (22.8%) (18.8%)
Marketo, Inc. 32.72 72.7% 1,522 (112) 1,411 9.5 x 7.0 x n.m. n.m. 54.9% 35.9% (17.1%) (11.8%)
Data
Acxiom Corporation 20.27 51.6% 1,561 195 1,756 1.7 x 1.7 x 8.9 x 8.5 x (5.2%) 0.9% 18.9% 19.7%
Alliance Data Systems Corporation 286.05 95.2% 18,370 10,820 29,190 5.5 x 4.4 x 18.5 x 14.8 x 22.9% 25.0% 29.7% 29.7%
Experian plc 16.96 92.0% 16,789 3,840 20,629 4.2 x 4.1 x 12.2 x 11.9 x 1.1% 2.2% 34.6% 34.9%
Teradata Corporation 43.68 88.1% 6,756 (593) 6,163 2.2 x 2.2 x 8.3 x 8.1 x 2.1% 3.3% 27.0% 26.9%
Diversified Internet
Amazon.com Inc. 310.35 76.1% 143,694 (3,784) 139,910 1.6 x 1.3 x 22.9 x 17.4 x 20.0% 18.4% 6.8% 7.6%
AOL Inc. 46.17 86.7% 3,755 (8) 3,746 2.0 x 2.0 x 9.3 x 8.2 x 0.3% 2.0% 21.7% 24.2%
eBay Inc. 56.12 94.0% 70,090 (2,785) 67,305 3.8 x 3.4 x 11.8 x 10.8 x 11.7% 11.8% 31.8% 31.2%
Facebook, Inc. 78.02 94.9% 219,154 (13,972) 205,182 16.6 x 12.0 x 25.3 x 20.1 x 57.4% 37.7% 65.3% 59.9%
Google Inc. 530.66 86.4% 363,154 (51,417) 311,737 5.9 x 5.1 x 14.3 x 12.5 x 21.7% 17.1% 41.5% 40.4%
Yahoo! Inc. 50.51 96.0% 48,481 (9,962) 38,520 8.7 x 8.5 x 44.4 x 36.4 x (0.1%) 2.8% 19.6% 23.3%
25th percentile 2.0 x 1.7 x 11.8 x 10.2 x 12.5% 13.0% (10.1%) (5.4%)
Median 3.8 x 2.8 x 18.1 x 12.5 x 21.7% 21.3% 16.5% 13.6%
75th percentile 5.9 x 4.6 x 25.3 x 17.0 x 54.9% 34.7% 27.0% 27.6%
27 Soho Square, London, W1D 3AY
t +44 20 7629 7575 | f +44 20 7629 2233
www.resultsig.com
Julie Langley
Partner
Di: +44 (0) 20 7514 8247
12
Mark Williams
Director
Di: +44 (0) 20 7514 8242
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