AdTech & MarTech BarometerQ3 2015 Market Review

Q3 2015 STRICTLY PRIVATE AND CONFIDENTIAL

2QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

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3QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

Results International Global AdTech & MarTech Indices

Sep-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Oct-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Nov-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Dec-14Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-1560%

70%

80%

90%

100%

110%

120%

130%

140%

NASDAQ Comp Diversified Internet MarTech Data AdTech

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

Notes: Based on share prices as at 30th September 2015; indices weighted by market capitalisationSources: Capital IQ and Results analysis

LAST

12

MON

TH S

HARE

PRI

CE P

ERFO

RMAN

CE

14.8%11.4%

2.8%

(3.0%)

(31.3%)

Q3 2015 PERFROMANCEDiversified Internet 6.6%Nasdaq Comp (7.4%)MarTech (8.0%)Data (12.2%)AdTech (24.9%)

4

(100%)

(50%)

-

50%

100%

150%

(7.8%)(22.0%)

11.6%

(38.0%)(63.6%)

(51.6%)(64.5%)

(5.9%)

(49.0%)

(78.5%)(70.4%)(59.9%)

23.9%

(20.5%)(8.5%)

(48.2%)(39.0%)

(11.8%)(10.7%)

1.5%

85.5%

(12.0%)

15.7%

107.1%

19.4%4.3% 7.6%

(30.9%)

8.5%

58.8%

(56.8%)

13.7%

(29.1%)

(70%)(60%)(50%)(40%)(30%)(20%)(10%)

-10%20%30%

(3.8%)

1.9%

(21.3%)(29.9%)

(53.6%)

0.5%

(49.5%)

8.0%

(32.1%)

(20.7%)

(43.0%)

(0.8%)(2.9%)

(36.1%)(26.4%)

(52.2%)

(23.4%)(28.3%)

(15.7%)

(27.3%)

(6.5%)

1.3%8.3%

3.7%12.4%

(11.3%)(8.7%)

(21.7%)

18.2%17.9%

(59.4%)

4.8%

(26.4%)

QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Share Price Performance

EV/2015E Net Revenue 6.4x 0.8x - 2.6x 1.8x 1.4x 2.1x 0.7x 2.3x 2.4x 0.3x 2.8x 0.5x 1.6x 1.1x 1.7x 7.9x 5.7x9.4x 12.0

x1.9x 4.6x 3.9x 1.5x 6.3x 2.3x 14.0

x5.5x3.1x3.9x 0.7x 0.9x 17.4

x(1)

(1) 2015E Net Revenue data is unavailable(2) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stocks respective IPO date (see slide 4) and 30 th September 2015Note: Based on share prices as at 30th September 2015Sources: Capital IQ and Results analysis

(2) (2)

(2)

(2)

(2)

ADTECH DIVERSIFIED INTERNETMARTECH DATA

LAST

12

MON

TH S

HARE

PRI

CE

PERF

ORM

ANCE

Q3 2

015

5QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTION RAISED ($M)

INDICATIVE PRICE RANGE ($)

IPO LISTING PRICE ($)

DAY 1 INCREASE

CURRENT INCREASE(1)

CURRENT EV ($M)

EV / NET REVENUE

2015EEV / EBITDA

2015E

Jun-15 AI ad optimisation 42 n.a. 2.1 4.2% (7.8%) 95 6.4x 9.4x

May-15 eCommerce platform 131 12.0-14.0 17.0 51.1% 107.1% 3,179 17.4x n.m.

Mar-15 Localised ad targeting 75 10.5-12.5 11.5 (15.1%) (64.5%) 78 0.9x n.m.

Oct-14 Marketing automation 125 22.0-24.0 25.0 20.4% 85.5% 1,624 9.4x n.m.

Sept-14 Multi-channel ad server 75 n.a. 1.7 0.8% (41.7%) 72 n.a. n.a.

Jul-14 Programmatic video DSP 44 7.0-8.0 7.0 64.3% 50.3% 311 2.8x n.m.

Jul-14 Multi-channel ad network 70 n.a. 3.9 4.4% (57.2%) 169 2.6x 11.7x

Apr-14 SSP 102 15.0-17.0 15.0 33.9% (3.1%) 590 2.4x 15.8x

Nov-13 Multi-channel network 33 n.a. 1.0 20.0% (81.8%) 52 2.1x n.m.

Oct-13 DSP focused on retargeting 251 27.0-29.0 31.0 14.2% 21.1% 2,050 3.9x 18.8x

Sep-13 DSP 116 27.0-29.0 29.0 93.4% (83.9%) 201 0.7x n.m.

Aug-13 Video ad network 46 12.0-14.0 9.0 0.0% (71.2%) 40 0.5x n.m.

Nasdaq

LSE

NYSE

AIM

Nasdaq

Nasdaq

NYSE

AIM

NYSE

AIM

NYSE

NYSE

(1) Current increase from IPO price; Market data as of 30 th September 2015Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 60x EV / EBITDASources: Capital IQ and Results analysis

6

AdTech MarTech Data Diversified Internet

Global AdTech/ MarTech

-

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

1.8 x

6.8 x

2.9 x

5.5 x

2.3 x

AdTech MarTech Data Diversified Internet

Global AdTech/ MarTech

-

5%

10%

15%

20%

25%

30%

35%

24.4%

30.9%

1.9%

16.1%17.9%

QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Valuation Benchmarks

(1) (1)

(1) Global AdTech / MarTech represents the median of all stocks in AdTech, MarTech, Data & Diversified InternetNotes: EV = Enterprise Value; Financials calendarised to December year end; Median values reportedSee Selected Publicly Traded Companies (Slide 9) for details of companies included in each categorySource: Capital IQ & analyst reports

REVENUE GROWTH (2015-16E) EV / NET REVENUE 2015E

7

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 20150

20

40

60

80

100

120

-

$1bn

$2bn

$3bn

$4bn

$5bn

$6bn

$7bn

$8bn

$9bn

5443

74

52

108101

113106

98 101112

Number of deals Total disclosed deal value ($bn)

Num

ber o

f dea

ls

Tota

l dis

close

d de

al v

alue

($bn

)

QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Global M&A Activity Q1 2013 – Q3 2015

(1) Q3 2014 data includes Alliance Data’s acquisition of Conversant ($2.2bn)(2) Q2 2015 data includes Verizon’s acquisition of AOL ($4.3bn)Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

(1) (2)

8QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Selected Deals in Q3 2015

DATE BUYER TARGET EV ($M) EV/REVENUE COMPANY DESCRIPTION TARGETLOCATION

Sep 15 683 6.3x TV and movie measurement

Sep 15 120 - Content management & GRC

Sep 15 - - Social media and event analytics

Sep 15 - - Mobile attribution

Sep 15 - - In-store customer analytics

Sep 15 89 1.9x Social and video ad network

Sep 15 - - B2B DMP

Sep 15 - - Mobile ad app SDK

Sep 15 17 1.1x Mobile and social DSP

Sep 15 500 - OTT video content

Sep 15 218 1.9x Mobile ad network and ad exchange

Aug 15 - - Predictive marketing CRM

Aug 15 - - SEM bidding

Aug 15 - - Cross-channel optimisation and personalisation

Aug 15 - - Dynamic video ad insertion

Aug 15 3 - Programmatic video ad exchange

Aug 15 - - Marketing content automation

Jul 15 1,000 6.0x Multi-channel, big data marketing cloud

(1) In certain cases EV/Revenue are publicly reported 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)

(2) Earn out of $86m (£56m) has not been included in the calculation of EVSources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

(1)

(2)

9QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Selected Fundraisings in Q3 2015

DATE COMPANY TYPE OF ROUND

FUNDS RAISED

($M)INVESTOR PARTICIPATON COMPANY DESCRIPTION COMPANY

LOCATION

Sep 15 Debt 100 Tennenbaum Capital Partners Mobile discovery platform

Sep 15 Series C 25 Next World Capital (lead investor), Accel Partners, DAG, Icon Ventures and Lightspeed Venture Partners

Marketing signal measurement

Sep 15 Debt 30 Silicon Valley Bank Programmatic ad exchange

Sep 15 Series A 33 Vector Capital B2C marketing cloud

Sep 15 Series B 6 Private investors Dynamic ad creation

Sep 15 Series B 40 IHeartMedia (lead investor), Advance Publications, Upfront Ventures and Foundry Group; Silicon Valley Bank (debt) Social data and ad buying

Sep 15 Series C 45 Warburg Pincus (lead investor), Norwest Venture Partners and Sequoia Capital Social CRM

Aug 15 Series B 45 Tenaya Capital (lead investor), Sequoia Capital, SoftTech VC and others

Mobile marketing automation

Jul 15 Series E 67 Silicon Valley Bank (debt); Sapphire Ventures (lead investor), Cross Creek Advisors and previous investors Ad viewability and fraud

Jul 15 Series D 50Founders Fund (lead investor), BlueRun Ventures, Glynn Capital Management, AME Cloud Ventures, Yuan Capital, Salesforce Ventures, Formation 8

B2B predictive marketing

Jul 15 Series F 50 Susquehanna Growth Equity Content recommendation

Jul 15 Series B 22 Blue Chip Venture Company and G20 Ventures (lead investors) and Valhalla Partners Native ad exchange

Jul 15 Series A 7 Twenty Ten Capital (lead investor), IBIS TMT, Sandbox & Co. and Hoxton Ventures Kid-safe ad network

Jul 15 Series C 25 Vista Equity Partners SME marketing platform

Jul 15 Series G 30Sageview Capital (lead investor), Adobe Systems, Altos Ventures, Costanoa Venture Capital, Greenspring Associates, Salesforce.com Ventures, Scale Venture Partners and Sigma West

B2B account-based marketing

Jul 15 Series D 59 Legend Holdings Mobile social CRM

Jul 15 Series B 31Georgian Partners (lead investor), OurCrowd, Atlas Venture, Docomo Capital, BDC Capital IT Venture Fund, Hummer Winblad Venture Partners, Illuminate Ventures, Resolute Ventures, Relay Ventures and First Round Capital

Advocate marketing

Jul 15 Series D 42 FTV Capital (lead investor), Mayfield Fund, InterWest Partners and FirstMark Capital

Omni-channel content management(1) Round is split $30 million equity funding, $10m debt funding

(2) Round is split $40 million debt financing, $27 million equity fundingSource: Press Releases, Capital IQ, Mergermarket and Results analysis

(1)

(2)

10QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Selected Publicly Traded Companies

Notes: Broker reports have been used for selected company financials – Liberium (Aug-15) for Adgorithms, Numis (May-15) for Blinkx, JP Morgan (Aug-15) for Criteo, Canaccord Genuity (Aug-15) for Matomy Media, William Blair (Aug-15) for MaxPoint Interactive, Canaccord Genuity (Aug-15) for Millennial Media, Cenkos (May-15) for Rightster, BMO Capital Markets (Aug-15) for Rocket Fuel, N+1 Singer (Sep-15) for Taptica, Jefferies (Aug-15) for Tremor Video, BMO Capital Markets (Aug-15) for TubeMogul, Deutsche Bank (Aug-15) for YuMe, RBC Capital Markets (Aug-15) for Alphabet and JP Morgan (Sep-15) for Yahoo!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 appropriateSources: Capital IQ, market data as of 30th September 2015

COMPANY OPERATING METRICS VALUATION METRICSPRICE ($) % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE GROWTH EBITDA MARGIN NET REVENUE EBITDA

(30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE ($M) CY14-15 CY15-16 CY2015 CY2016 CY2015 CY2016 CY2015 CY2016ADTECHAdgorithms LTD 1.91 83.0% 129 35 (35) 95 56.3% 65.0% 67.5% 58.7% 6.4 x 3.9 x 9.4 x 6.6 xBlinkx plc 0.42 67.9% 168 96 (95) 73 (11.1%) 3.7% (0.4%) 3.2% 0.8 x 0.8 x n.m. 24.2 xCriteo SA 37.54 65.5% 2,355 320 (305) 2,050 56.0% 26.0% 20.7% 24.8% 3.9 x 3.1 x 18.8 x 12.4 xCrossrider Plc 0.98 57.0% 151 78 (78) 72 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Marin Software Incorporated 3.13 32.3% 116 41 (40) 76 6.5% 12.1% (11.3%) (1.3%) 0.7 x 0.6 x n.m. n.m.Matomy Media Group Ltd. 1.66 43.2% 153 43 15 169 (1.1%) 12.2% 22.5% 30.4% 2.6 x 2.4 x 11.7 x 7.7 xMaxPoint Interactive, Inc. 4.08 36.3% 106 55 (28) 78 44.7% 36.7% (17.5%) (16.7%) 0.9 x 0.6 x n.m. n.m.Millennial Media Inc. 1.75 82.9% 248 35 (30) 218 4.5% 10.0% (20.6%) (2.2%) 1.8 x 1.6 x n.m. n.m.Opera Software ASA 5.38 43.4% 787 134 18 806 20.1% 21.9% 17.1% 18.7% 1.4 x 1.1 x 8.2 x 6.1 xRightster Group Plc 0.17 21.6% 64 12 (12) 52 89.7% 40.0% (55.8%) (5.6%) 2.1 x 1.5 x n.m. n.m.Rocket Fuel Inc. 4.67 22.1% 199 81 2 201 23.9% 14.8% (10.0%) (2.9%) 0.7 x 0.6 x n.m. n.m.Taptica International Ltd 0.95 35.3% 66 23 (23) 43 (2.0%) 52.5% 9.7% 25.0% 2.3 x 1.5 x 23.9 x 6.1 xThe Rubicon Project, Inc. 14.53 70.6% 690 99 (99) 590 97.8% 33.4% 15.1% 15.7% 2.4 x 1.8 x 15.8 x 11.4 xTremor Video, Inc. 1.86 56.8% 96 69 (69) 27 40.2% 24.4% (11.8%) (0.7%) 0.3 x 0.3 x n.m. n.m.TubeMogul, Inc. 10.52 44.1% 391 81 (81) 311 40.6% 28.7% (21.1%) (10.5%) 2.8 x 2.1 x n.m. n.m.YuMe, Inc. 2.59 40.6% 88 47 (47) 40 (12.8%) 3.6% (14.1%) (7.3%) 0.5 x 0.5 x n.m. n.m.MARTECHBazaarvoice, Inc. 4.51 48.0% 363 103 (46) 317 9.4% 10.4% (3.5%) 4.8% 1.6 x 1.4 x n.m. 29.9 xBrightcove Inc. 4.92 58.2% 160 21 (19) 141 6.3% 8.5% 4.2% 6.3% 1.1 x 1.0 x 25.2 x 15.5 xConstant Contact, Inc. 24.24 56.1% 795 181 (181) 615 12.0% 14.0% 19.9% 21.8% 1.7 x 1.5 x 8.3 x 6.7 xDemandware, Inc. 51.68 68.1% 2,037 187 (186) 1,850 45.5% 33.8% 4.9% 6.6% 7.9 x 5.9 x n.m. n.m.HubSpot, Inc. 46.37 84.4% 1,734 110 (109) 1,624 49.3% 28.9% (13.5%) (8.1%) 9.4 x 7.3 x n.m. n.m.Marketo, Inc. 28.42 79.8% 1,305 110 (104) 1,201 40.3% 32.9% (10.3%) (5.2%) 5.7 x 4.3 x n.m. n.m.New Relic, Inc. 38.11 95.3% 2,074 195 (195) 1,879 58.5% 36.9% (22.6%) (11.1%) 12.0 x 8.8 x n.m. n.m.Shopify Inc. 35.20 83.6% 3,377 199 (199) 3,179 74.0% 38.9% (2.4%) 0.7% 17.4 x 12.5 x n.m. n.m.DATAAcxiom Corporation 19.76 92.0% 1,563 123 149 1,712 (14.8%) (0.9%) 14.8% 16.1% 1.9 x 2.0 x 13.2 x 12.2 xAlliance Data Systems Corporation 258.98 83.0% 15,947 822 14,063 30,010 22.5% 12.5% 29.4% 29.6% 4.6 x 4.1 x 15.7 x 13.9 xExperian plc 16.01 83.7% 15,328 155 3,281 18,609 (1.7%) 2.0% 33.4% 34.4% 3.9 x 3.9 x 11.8 x 11.2 xTeradata Corporation 28.96 61.6% 4,101 921 (321) 3,780 (5.5%) 1.9% 21.4% 23.4% 1.5 x 1.4 x 6.8 x 6.1 xDIVERSIFIED INTERNETAlphabet Inc. 638.37 89.5% 440,686 67,725 (59,798) 380,888 14.6% 16.1% 42.5% 43.8% 6.3 x 5.4 x 14.8 x 12.4 xAmazon.com, Inc. 511.89 88.2% 239,621 14,001 3,952 243,573 18.9% 19.8% 9.7% 11.1% 2.3 x 1.9 x 23.6 x 17.3 xeBay Inc. 24.44 36.6% 29,773 10,554 (2,932) 26,841 (2.6%) 4.9% 39.7% 40.2% 3.1 x 3.0 x 7.8 x 7.4 xFacebook, Inc. 89.90 90.6% 254,403 14,125 (13,976) 240,427 38.0% 35.7% 61.7% 61.0% 14.0 x 10.3 x 22.7 x 16.9 xYahoo! Inc. 28.91 54.9% 27,311 5,824 (4,553) 22,758 (5.1%) (2.3%) 10.0% 15.5% 5.5 x 5.6 x 54.4 x 36.1 x25th percentile (1.2%) 9.7% (11.4%) (2.4%) 1.4 x 1.4 x 9.4 x 7.0 xMedian 19.5% 17.9% 7.3% 8.8% 2.3 x 1.9 x 14.8 x 12.2 x75th percentile 44.9% 33.5% 20.8% 24.9% 5.5 x 4.2 x 22.7 x 16.2 x

11QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

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