Bi-Weekly Software Sector Summary Report · 4 TRADING COMPARABLES Valuation Metrics EV / 2016E...

1

Software Sector Summary

Week of November 7th, 2016

2

SOFTWARE DEAL DASHBOARD

Quarterly VC Deal Count (1)

Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. Excludes the $7.3Bn raise by Didi Chuxing on 6/15/2016. 2) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 3) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 4) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM.

Quarterly M&A Deal Count (2)

$Bn $Bn

Select Financing Transactions Quarterly VC Volume (1) Quarterly M&A Volume (2) Top M&A Transactions YTD

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

$90.0 $26.2

$88.0 $9.2

$52.0 $8.7

$40.0 $6.1

$30.0 $4.7

$26.5 $3.3

$20.0 $2.8

Last 12 Months Software Price Performance vs. S&P 500 (3) M&A EV/ NTM Rev. Over Time (4)

`

$21.7 BillionFinancing Volume YTD (1)

325Financing Transactions YTD (1)

$100.7 BillionM&A Volume YTD (2)

76M&A Transactions YTD (2)

(25%)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

IGV SPX

( )65

75

10894 102

117

88

18

0

50

100

150

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16

7%

$3$3

$6 $6$7

$9

$5

$1

$0

$2

$4

$6

$8

$10

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16

$5

$14

$24

$14

$7

$50

$42

$2$0

$10

$20

$30

$40

$50

$60

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16

7

13

2427

15

2924

8

0

10

20

30

40

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

(Software Business Division)

1% 4.0x

3.2x

4.2x

3.6x 3.9x

4.6x 4.7x

4.0x

5.4x

4.4x

3.6x

5.0x

2.7x 2.3x

2.9x 3.0x

4.3x 4.1x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2011 2012 2013 2014 2015 2016

All Buyers Strategic Buyers PE Buyers

TD TD

TDTD

3

RECENT STOCK PERFORMANCE Index Performance

Last 12 Months Last 3 Years

Notes: Source: Capital IQ. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, IL, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, N, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, AVG, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16

Sector 3 Months 1 Year 3 Years

Platform 1% 8% 33%

Infrastructure 1% 9% 17%

Security 5% (4%) 26%

SaaS / On Demand (1%) 6% 24%

BI & Analytics (5%) (11%) (6%)

Vertical (4%) (5%) 8%

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16

4

TRADING COMPARABLES Valuation Metrics

EV / 2016E Revenue EV / 2016E EBITDA

Notes: Source: Capital IQ. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, IL, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

5.1x4.8x

4.3x 4.3x4.0x

3.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

SaaS / OnDemand

Infrastructure Vertical Platform Security BI & Analytics

34.0x

28.3x 28.3x 27.2x

20.8x

13.2x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

SaaS / OnDemand

BI & Analytics Infrastructure Security Vertical Platform

5

TRADING COMPARABLES Operational Metrics

2016 EBITDA Margin 2017 / 2016 Rev. Growth

Notes: Source: Capital IQ. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, IL, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

34%

27%

23% 20%

17% 15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Platform Infrastructure Vertical Security BI & Analytics SaaS / OnDemand

19% 19%

17%16%

14%

7%

0%

5%

10%

15%

20%

25%

SaaS / OnDemand

BI & Analytics Security Vertical Infrastructure Platform

6

PUBLIC COMPANY VALUATIONS Software Trading Statistics

Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM.

$MM, Except Per Share Data

Stock Trading Statistics Operating Metrics

Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

10/28/2016 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E

Platform

Alphabet Inc. $819.56 $564,788 ($78,388) $486,400 5.4x 4.7x 13.6x 11.6x 23.7x 19.9x 19.1% 15.5% 40.1% 40.7%

Microsoft Corporation $59.87 465,510 (60,853) 404,657 4.4 4.2 11.6 11.0 21.0 19.7 4.8% 4.2% 37.8% 38.4%

Oracle Corporation $38.17 156,712 (14,340) 142,372 3.8 3.7 8.5 8.1 14.6 13.9 (0.2%) 2.1% 44.5% 45.8%

International Business Machines Corporation $152.61 145,110 32,515 177,625 2.2 2.2 9.4 8.7 11.3 10.9 (2.4%) (0.3%) 23.7% 25.8%

SAP SE $87.93 105,358 2,962 108,320 4.5 4.2 13.3 12.4 21.2 18.9 6.6% 6.3% 33.9% 34.2%

Red Hat, Inc. $77.11 13,849 (601) 13,248 5.7 4.9 22.6 18.7 35.9 30.5 18.1% 15.1% 25.1% 26.4%

Mean 4.3x 4.0x 13.2x 11.7x 21.3x 19.0x 7.7% 7.1% 34.2% 35.2%

Median 4.4 4.2 12.4 11.3 21.1 19.3 5.7% 5.3% 35.9% 36.3%

Infrastructure

VMware, Inc. $77.65 $32,137 ($6,754) $25,383 3.6x 3.4x 10.0x 9.3x 17.8x 16.6x 6.1% 5.4% 36.0% 36.6%

ServiceNow, Inc. $86.12 14,167 (308) 13,859 10.0 7.7 52.5 35.5 NM 82.0 37.7% 30.1% 19.1% 21.6%

Red Hat, Inc. $77.11 13,849 (601) 13,248 5.7 4.9 22.6 18.7 35.9 30.5 18.1% 15.1% 25.1% 26.4%

Citrix Systems, Inc. $84.52 13,162 (324) 12,838 3.8 3.8 10.8 10.6 16.3 15.8 4.1% (1.0%) 34.8% 36.0%

CA, Inc. $30.74 12,844 (496) 12,348 3.1 3.0 7.6 7.6 12.2 11.9 0.1% 1.1% 40.1% 39.7%

F5 Networks, Inc. $134.66 8,795 (882) 7,913 3.9 3.6 10.0 9.3 17.9 16.0 3.9% 7.9% 39.3% 38.8%

Splunk, Inc. $60.95 8,200 (1,021) 7,180 7.9 6.1 84.4 54.9 NM NM 36.8% 28.1% 9.3% 11.2%

Micro Focus International plc $25.73 5,897 1,078 6,975 5.2 5.0 11.1 10.0 15.5 14.3 9.1% 3.7% 46.6% 49.8%

Atlassian Corporation Plc $27.20 5,885 (754) 5,131 9.8 7.5 46.6 35.8 82.4 72.3 35.9% 29.6% 20.9% 21.0%

Nutanix, Inc. $24.84 3,410 ($112) 3,298 NA NA NA NA NA NA NA NA NA NA

Software Aktiengesellschaft $36.38 2,774 (105) 2,669 2.8 2.7 8.6 8.6 13.6 13.2 1.6% 2.1% 32.0% 31.6%

NetScout Systems, Inc. $27.55 2,534 5 2,540 2.2 2.0 9.0 6.5 16.5 12.8 45.2% 8.4% 24.7% 31.6%

Pure Storage, Inc. $12.50 2,458 (570) 1,887 2.6 1.9 NM NM NM NM 62.7% 40.7% NM NM

Commvault Systems, Inc. $53.43 2,420 (440) 1,980 3.1 2.9 22.1 20.3 49.5 49.1 8.3% 6.2% 14.1% 14.5%

LogMeIn, Inc. $94.59 2,411 (180) 2,231 6.7 5.8 25.2 21.0 47.4 39.9 23.5% 15.1% 26.4% 27.5%

New Relic, Inc. $36.16 1,838 (196) 1,642 6.9 5.4 NM NM NM NM 46.8% 28.3% NM NM

Progress Software Corporation $26.69 1,297 (96) 1,201 2.9 2.8 8.3 8.5 16.8 15.7 9.1% 2.6% 35.1% 33.3%

A10 Networks, Inc. $7.47 491 (117) 375 1.7 1.5 95.9 22.3 NM 85.8 14.1% 13.0% 1.7% 6.6%

Mean 4.8x 4.1x 28.3x 18.6x 28.5x 34.0x 21.4% 13.9% 27.0% 28.4%

Median 3.8 3.6 11.1 10.6 17.3 16.3 14.1% 8.4% 26.4% 31.6%

7







Security Software

Symantec Corporation $24.88 $15,486 ($2,914) $12,572 3.3x 2.8x 10.2x 7.6x 24.5x 15.6x (37.7%) 16.9% 31.9% 36.6%

Check Point Software Technologies Ltd. $80.98 13,886 (1,230) 12,656 7.3 6.9 13.3 12.7 18.1 16.7 5.9% 5.9% 55.0% 54.4%

Palo Alto Networks, Inc. $151.59 13,827 (777) 13,049 8.2 6.2 39.0 25.5 73.0 46.1 37.9% 32.0% 21.1% 24.4%

Splunk, Inc. $60.95 8,200 (1,021) 7,180 7.9 6.1 84.4 54.9 NM NM 36.8% 28.1% 9.3% 11.2%

Fortinet Inc. $31.78 5,488 (1,030) 4,458 3.6 3.0 21.3 16.5 49.6 39.6 24.1% 17.2% 16.7% 18.4%

Trend Micro Inc. $34.91 4,792 (1,211) 3,582 2.9 2.7 9.6 8.7 27.9 23.7 19.4% 7.1% 30.2% 31.3%

Proofpoint, Inc. $75.03 3,180 (51) 3,129 8.4 6.5 87.2 63.2 NM NM 40.7% 29.8% 9.6% 10.2%

FireEye, Inc. $11.53 1,956 (193) 1,763 2.4 2.1 NM 68.8 NM NM 15.8% 15.3% NM 3.1%

CyberArk Software, Ltd. $46.41 1,558 (237) 1,321 6.2 5.1 24.0 19.8 43.6 36.2 32.1% 22.5% 25.9% 25.7%

Qualys, Inc. $36.90 1,305 (214) 1,091 5.5 4.6 16.9 14.0 46.8 40.0 20.6% 18.7% 32.5% 33.2%

Barracuda Networks, Inc. $23.59 1,234 (175) 1,059 3.1 2.9 13.8 12.3 33.6 35.2 11.7% 6.2% 22.3% 23.5%

Imperva Inc. $36.45 1,189 (255) 933 3.7 3.1 NM NM NM NM 6.8% 20.6% NM NM

Mimecast Limited $19.70 1,073 (103) 970 5.9 4.8 NM 59.7 NM NM 21.2% 22.6% 4.3% 8.1%

SecureWorks Corp. $11.22 905 (113) 792 1.9 1.6 NM NM NM NM 25.2% 19.5% NM 0.1%

Rapid7, Inc. $14.26 600 (85) 515 3.3 2.6 NM NM NM NM 40.1% 26.7% NM NM

F-Secure Oyj $3.65 570 (90) 480 2.8 2.6 17.4 14.5 34.1 29.6 7.7% 6.7% 16.0% 18.0%

VASCO Data Security International Inc. $13.91 553 (142) 411 2.2 1.9 15.3 15.0 29.0 21.1 (21.2%) 15.6% 14.1% 12.5%

MobileIron, Inc. $3.55 312 (80) 232 1.4 1.3 NM NM NM NM 9.6% 10.5% NM NM

Zix Corporation $4.07 218 (25) 193 3.2 2.9 11.9 11.1 16.3 14.5 9.9% 9.4% 27.1% 26.5%

Absolute Software Corporation $4.78 186 (35) 152 1.7 1.6 16.7 16.8 NM 88.0 (3.7%) 9.6% 10.2% 9.3%

Guidance Software, Inc. $5.41 175 (13) 162 1.5 1.4 NM NM NM NM 2.5% 6.2% NM 1.2%

iPass Inc. $1.75 115 (16) 99 1.5 1.3 NM 11.4 NA 14.6 2.8% 19.9% 0.4% 11.3%

Mean 4.0x 3.4x 27.2x 25.4x 36.0x 32.4x 14.0% 16.7% 20.4% 18.9%

Median 3.2 2.8 16.8 15.0 33.6 29.6 13.8% 17.1% 18.9% 18.0%

8







SaaS / On Demand

salesforce.com, inc. $75.13 $51,020 $1,341 $52,361 6.3x 5.2x 32.5x 27.1x 79.3x 59.1x 24.7% 21.2% 19.4% 19.2%

Workday, Inc. $86.20 17,240 (1,547) 15,693 10.1 7.7 NM 68.6 NM NM 33.9% 31.0% 8.1% 11.2%

ServiceNow, Inc. $86.12 14,167 (308) 13,859 10.0 7.7 52.5 35.5 NM 82.0 37.7% 30.1% 19.1% 21.6%

The Ultimate Software Group, Inc. $208.53 6,034 (100) 5,934 7.6 6.2 31.4 24.9 63.4 51.0 26.2% 22.2% 24.2% 25.0%

Veeva Systems Inc. $37.87 5,157 (480) 4,678 8.9 7.3 30.4 24.1 62.5 50.4 28.9% 21.3% 29.2% 30.3%

Aspen Technology, Inc. $49.25 3,804 (52) 3,752 8.0 7.7 15.9 16.1 26.1 26.3 1.3% 3.0% 50.1% 47.9%

Shopify Inc. $40.84 3,635 (180) 3,455 9.4 6.5 NM NM NM NM 79.3% 44.8% NM 2.3%

j2 Global, Inc. $70.90 3,404 274 3,678 4.3 3.7 9.3 8.1 14.5 12.8 18.7% 15.5% 46.1% 46.0%

Paycom Software, Inc. $51.64 3,089 (44) 3,045 9.3 7.2 36.1 28.0 67.0 53.8 45.4% 28.9% 25.8% 25.8%

Blackbaud Inc. $60.20 2,795 359 3,153 4.3 3.9 18.1 15.8 31.3 26.5 14.8% 9.2% 23.8% 24.9%

Zendesk, Inc. $25.94 2,433 (211) 2,222 7.2 5.4 NM NM NM NM 48.4% 33.2% 1.9% 3.6%

LogMeIn, Inc. $94.59 2,411 (180) 2,231 6.7 5.8 25.2 21.0 47.4 39.9 23.5% 15.1% 26.4% 27.5%

Cornerstone OnDemand, Inc. $41.44 2,318 (33) 2,285 5.4 4.4 75.7 42.7 NM NM 25.6% 22.4% 7.1% 10.3%

Paylocity Holding Corporation $43.59 2,238 (86) 2,151 8.2 6.5 72.6 50.5 NM NM 39.8% 25.6% 11.3% 12.9%

RealPage, Inc. $27.00 2,167 77 2,245 3.9 3.4 18.5 15.4 37.1 30.2 21.7% 14.7% 21.3% 22.3%

Box, Inc. $14.52 1,920 (115) 1,805 4.6 3.6 NM NM NM NM 30.6% 26.2% NM NM

HubSpot, Inc. $52.35 1,850 (117) 1,734 6.6 5.0 NM NM NM NM 45.5% 30.7% NM 0.3%

New Relic, Inc. $36.16 1,838 (196) 1,642 6.9 5.4 NM NM NM NM 46.8% 28.3% NM NM

2U, Inc. $35.03 1,642 (188) 1,454 7.2 5.5 NM NM NM NM 34.8% 31.3% 1.1% 2.8%

RingCentral, Inc. $20.20 1,476 (136) 1,340 3.6 2.9 62.1 42.3 NM NM 27.3% 24.4% 5.7% 6.8%

Qualys, Inc. $36.90 1,305 (214) 1,091 5.5 4.6 16.9 14.0 46.8 40.0 20.6% 18.7% 32.5% 33.2%

Coupa Software Incorporated $25.32 1,218 (80) 1,138 NA NA NA NA NA NA NA NA NA NA

Callidus Software Inc. $17.75 1,105 (186) 919 4.5 3.8 35.4 27.6 65.0 48.4 18.2% 18.7% 12.7% 13.7%

Mimecast Limited $19.70 1,073 (103) 970 5.9 4.8 NM 59.7 NM NM 21.2% 22.6% 4.3% 8.1%

SPS Commerce, Inc. $62.87 1,071 (125) 946 4.9 4.2 35.9 28.7 63.7 53.1 21.8% 17.8% 13.6% 14.5%

9







SaaS / On Demand (cont'd)

Benefitfocus, Inc. $33.45 $992 $7 999 4.2 3.4 NM NM NM NM 27.1% 24.7% NM 3.3%

Five9, Inc. $13.83 727 (13) 714 4.5 3.9 NM 74.6 NM NM 21.9% 17.8% 3.0% 5.2%

Apptio, Inc. $19.36 722 (23) 699 4.5 3.8 NM NM NM NM 19.5% 19.5% NM NM

Instructure, Inc. $25.04 701 (83) 617 5.5 3.9 NM NM NM NM 52.6% 42.6% NM NM

Workiva Inc. $16.15 663 (29) 634 3.5 2.9 NM NM NM NM 24.8% 21.2% NM NM

IntraLinks Holdings, Inc. $9.34 535 41 576 1.9 1.8 11.3 8.5 46.2 26.1 8.4% 9.4% 17.1% 20.7%

LivePerson Inc. $8.48 490 (52) 438 2.0 1.8 24.0 17.3 NM 71.1 (6.6%) 6.0% 8.2% 10.7%

Carbonite, Inc. $16.82 455 (43) 412 2.1 1.9 12.3 11.4 33.4 29.5 45.1% 7.1% 16.9% 17.1%

Castlight Health, Inc. $4.20 431 (126) 306 3.0 2.4 NM NM NM NM 33.3% 27.6% NM NM

Bazaarvoice, Inc. $5.05 418 (50) 368 1.8 1.7 29.1 19.4 NM NM 2.7% 3.9% 6.2% 9.0%

Brightcove Inc. $11.35 375 (29) 346 2.3 2.1 39.6 30.6 NM 83.0 10.7% 10.4% 5.9% 6.9%

Tangoe, Inc. $8.54 337 (32) 305 1.3 1.3 13.1 NA 23.7 23.1 NA (0.0%) 10.0% NA

Jive Software, Inc. $3.82 297 (100) 197 1.0 1.0 13.2 11.0 67.0 36.6 2.7% (2.3%) 7.4% 9.2%

ChannelAdvisor Corporation $10.95 281 (62) 219 1.9 1.7 91.2 44.5 NM NM 12.4% 14.4% 2.1% 3.8%

Amber Road, Inc. $9.61 254 6 260 3.5 3.1 NM NM NM NM 9.9% 13.5% NM NM

Park City Group Inc. $12.95 250 (8) 242 NA NA NA NA NA NA NA NA NA NA

Covisint Corporation $2.21 90 (42) 48 NA NA NA NA NA NA NA NA NA NA

Marin Software Incorporated $2.30 88 (33) 55 0.6 0.6 47.0 12.3 NM NM (7.9%) (3.0%) 1.2% 4.6%

Mean 5.1x 4.1x 34.0x 28.9x 48.4x 44.4x 25.5% 19.2% 15.4% 15.6%

Median 4.6 3.9 30.4 24.9 47.1 40.0 24.7% 20.3% 12.0% 12.1%

10







Business Intelligence & Analytics

Splunk, Inc. $60.95 $8,200 ($1,021) $7,180 7.9x 6.1x 84.4x 54.9x NM NM 36.8% 28.1% 9.3% 11.2%

Fair Isaac Corporation $119.17 3,677 483 4,160 4.7 4.5 20.1 15.4 25.1 21.7 3.8% 5.8% 23.4% 28.9%

Tableau Software, Inc. $47.82 3,558 (865) 2,693 3.2 2.6 43.6 25.1 NM 97.1 27.7% 22.4% 7.4% 10.5%

Teradata Corporation $26.95 3,514 (413) 3,101 1.4 1.4 5.3 6.0 10.8 12.3 (10.4%) (3.3%) 25.6% 23.7%

Verint Systems Inc. $36.30 2,292 379 2,671 2.4 2.3 10.5 9.3 12.8 11.4 (2.4%) 6.6% 23.1% 24.4%

MicroStrategy Inc. $191.47 2,189 (579) 1,610 3.1 3.1 12.2 11.1 23.4 22.1 (3.3%) 3.0% 25.7% 27.6%

Hortonworks, Inc. $7.73 457 (109) 348 2.0 1.5 NM NM NM NM 45.8% 31.3% NM NM

Gridsum Holding Inc. $13.96 401 (16) 385 6.7 4.3 NM 45.8 NM NM 58.0% 55.3% NM 9.5%

Attunity, Ltd. $6.35 106 (9) 97 1.7 1.4 22.3 8.5 NM 17.8 19.2% 22.5% 7.6% 16.1%

Datawatch Corporation $7.60 90 (29) 61 2.0 NA NM NA NM NA 1.1% NA NM NA

Mean 3.5x 3.0x 28.3x 22.0x 18.0x 30.4x 17.6% 19.1% 17.4% 19.0%

Median 2.8 2.6 20.1 13.2 18.1 19.7 11.5% 22.4% 23.1% 19.9%

Vertical

Cerner Corporation $58.40 $19,722 ($120) $19,602 4.0x 3.6x 12.2x 10.7x 24.7x 21.7x 13.1% 10.1% 32.7% 33.7%

Constellation Software Inc. $452.21 9,583 41 9,624 4.5 4.0 17.7 15.6 24.2 20.6 15.8% 12.8% 25.5% 25.6%

SS&C Technologies Holdings, Inc. $31.51 6,338 2,388 8,726 5.7 5.3 14.4 12.1 19.4 16.4 51.8% 9.0% 40.0% 43.4%

Veeva Systems Inc. $37.87 5,157 (480) 4,678 8.9 7.3 30.4 24.1 62.5 50.4 28.9% 21.3% 29.2% 30.3%

Guidewire Software, Inc. $57.98 4,237 (628) 3,608 8.2 7.1 46.2 30.8 84.4 61.2 11.7% 14.6% 17.7% 23.1%

athenahealth, Inc. $103.01 4,065 161 4,226 3.8 3.3 17.5 14.6 57.6 46.8 18.8% 18.3% 22.0% 22.3%

CoreLogic, Inc. $42.10 3,636 1,523 5,159 2.7 2.6 10.3 9.7 17.9 16.3 26.7% 0.9% 25.8% 27.2%

Medidata Solutions, Inc. $48.70 2,795 (70) 2,725 5.9 4.9 25.8 20.6 47.7 39.7 18.3% 19.1% 22.8% 23.9%

Blackbaud Inc. $60.20 2,795 359 3,153 4.3 3.9 18.1 15.8 31.3 26.5 14.8% 9.2% 23.8% 24.9%

Allscripts Healthcare Solutions, Inc. $12.03 2,244 1,107 3,351 2.1 1.9 11.6 10.0 20.5 17.2 13.4% 9.7% 18.4% 19.4%

RealPage, Inc. $27.00 2,167 77 2,245 3.9 3.4 18.5 15.4 37.1 30.2 21.7% 14.7% 21.3% 22.3%

Inovalon Holdings, Inc. $14.05 2,142 (470) 1,672 3.6 3.2 12.8 10.9 34.6 28.3 7.6% 11.6% 27.8% 29.2%

WebMD Health Corp. $50.39 1,869 6 1,874 2.7 2.5 8.1 7.3 27.1 24.4 11.0% 7.5% 32.6% 33.8%

HealthStream, Inc. $26.66 846 (139) 707 3.1 2.7 20.5 15.3 93.5 60.9 9.6% 14.3% 15.1% 17.6%

Silver Spring Networks, Inc. $14.07 726 (113) 613 2.1 1.8 35.4 21.7 NM 46.3 (39.0%) 14.4% 5.8% 8.3%

Instructure, Inc. $25.04 701 (83) 617 5.5 3.9 NM NM NM NM 52.6% 42.6% NM NM

AppFolio, Inc. $19.01 640 (22) 617 5.9 4.5 NM NM NM NM 39.2% 30.6% NM 2.8%

Castlight Health, Inc. $4.20 431 (126) 306 3.0 2.4 NM NM NM NM 33.3% 27.6% NM NM

Exa Corporation $13.77 204 (29) 175 2.4 2.1 32.6 21.0 NM NM 12.8% 12.4% 7.3% 10.0%

Mean 4.3x 3.7x 20.8x 16.0x 41.6x 33.8x 19.1% 15.8% 23.0% 23.4%

Median 3.9 3.4 17.9 15.3 32.9 28.3 15.8% 14.3% 23.3% 23.9%

11

Notes:

Sources: Capital IQ as of 10/28/2016. Consensus Estimates used for CY17E figures.

For Tangoe, CY16E FCF Margin % used since no CIQ Consensus Estimate available for CY17E FCF Margin %.

When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E Revenue Growth % is 0.61.

When analyzing the same data set, R value of 2017E Revenue Multiple and 2107E FCF Margin % is 0.42.

Estimates for APTI, COUP, COVS, and PCYG are not available.

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO GROWTH AND CASH FLOW En

terp

rise

Val

ue

/ C

Y 2

01

7E

Rev

en

ue

CY 2017E Revenue Growth % + CY 2017E FCF Margin %

AZPN

BV

BLKB BOX

CALD

CARB

CSLT

ECOM

CSOD

FIVN

HUBS

INST

IL LPSN

LOGM

MRIN

MIME

NEWR

PAYC

PCTY

QLYS

RP

RNG

CRM

NOW

SHOP

SPSC

TNGO

ULTI

VEEV

WDAY

WK

ZEN TWOU

BNFT

AMBR

JIVE

JCOM

BCOV

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

(5.0%) 5.0% 15.0% 25.0% 35.0% 45.0% 55.0%

R = 0.87

12

Notes:

Sources: Capital IQ as of 10/28/16. Consensus Estimates used for CY16E Revenue figures and GAAP figures used for Sales and Marketing Expense.

For Tangoe, CIQ Consensus Estimate used for CY15 Revenue since no actual Revenue figure was reported for that period.

SaaS companies with Annual Change in Revenue (CY16E) / LTM Sales and Marketing Expense less than or equal to 0.0 placed at 0.0 x-axis position and excluded from R calculation (AZPN, LPSN, MRIN). The Annual Change in

Revenue (CY16E) / LTM Sales and Marketing Expense for these companies are provided in parenthesis.

R calculation also excludes other outliers (CARB).

Estimates for APTI, COUP, COVS, and PCYG are not available.

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO S&M EFFECTIVENESS En

terp

rise

Val

ue

/ C

Y 2

01

6E

Rev

en

ue

Annual Change in Revenue (CY16E) / LTM Sales and Marketing Expense

CRM

ULTI

SHOP

BLKB

PAYC

ZEN

CSOD

LOGM

PCTY

RP

HUBS

BOX

RNG

TWOU

QLYS

SPSC

BNFT

CALD

MIME

FIVN

WK

INST

IL

CSLT

BV

CARB

JIVE TNGO

ECOM

VEEV

NEWR

AMBR

AZPN (0.0x)

LPSN (-0.2x)

MRIN (-0.3x)

JCOM

BCOV

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

R = 0.72

13

RECENT ACQUISITIONS Select Software M&A Transactions

Notes: Source: Capital IQ and Wall Street Estimates. Transactions highlighted in yellow denote Private Equity Acquirers.

($MM)

Announced Aggregate AV / Revenue

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

10/31/16 Information management $632 NA 4.2x

Provides data management SaaS to the manufacturing and construction industry in the United States and

Canada. Software provides features for financial risk management, vendor management, commercial

construction project search engines, analytics and reporting, and product marketing to industry professionals

10/27/16 Information management $55 NA 3.7x

Provides team collaboration messaging SaaS that enables physicians at hospitals to communicate with

patients via a managed messaging system

10/24/16 Security $58 NA 3.7x

Provides IP traffic classification and network intelligence software used in physical, SDN and NFV

architectures. Supplies software to vendors that embed real-time application visibility in their products for

cybersecurity, traffic optimization, service chaining and quality of service, and analytics

10/21/16 Information management $410 NA NA

Provides electronic evidence and data recovery SaaS and services for law firms, government agencies and

corporate law departments. Software provides features for data collection, portfolio and project management,

forensic review and data replication and destruction

10/20/16 Security $55 NA NA

Provides cloud application control (CAC) software for enterprises. Software enables detection and targeted

attack protection (TAP) for enterprises using SaaS applications on enterprise networks and on mobile devices

against malware attacks

10/4/16 Application software $250 NA 1.9x Provides retail brand and e-commerce online shopping marketing and advertising SaaS for businesses

10/4/16 Application software $680 13.1x NA

Provides real-time audience data management and targeting SaaS for marketers, Web publishers and ad

agencies. Software enables continuous customer and prospect data collection from digital interactions,

including website visits or ads served

9/29/16 Application Software $180 2.4x NA

Provides parking software, SaaS and systems that enables parking management, enforcement, permits,

collections, access and revenue control. Also provides related handheld input devices and software

development services

9/26/16 Application software $153 NA NA

Provides email and digital subscription management SaaS that enables US government agencies to provide

citizens with information about such topics as local emergencies, events, council minutes and other matters

through email, wireless alerts, and RSS feeds

9/22/16 Data centers & facilities $185 NA NA

Provides facilities management SaaS for sustainable resource planning for multi-site corporations. Software is

used to measure and manage carbon emissions and waste and allocate energy resources throughout multiple

facilities

9/20/16 Infrastructure management $60 12.0x NAProvides Apache JMeter open-source load testing SaaS, enabling mobile app performance testing and

monitoring for Web, mobile app, micro services and API developers and businesses.

9/19/16 Application software $135 NA NAThe technology assets of INVeSHARE Inc. which provides embeddable Web-based shareholder communication

SaaS to brokerage firms and shareholders

9/19/16 Enterprise networking $1,254 3.5x 3.4xProvides DNS, DHCP, and IP address (DDI) management and network service delivery software and

management appliances for enterprises, government agencies and service providers worldwide

9/12/16 Information management $1,620 2.7x NAEMC's Enterprise Content Division, which provides enterprise content management SaaS and on-premise

software, including the Documentum, InfoArchive, and LEAP product lines, for businesses and corporations

(Technology Assets)

14



($MM)



9/8/16 API management SaaS $555 6.5x 4.9x

Provides API management SaaS for businesses globally. Software enables the integration, interfacing and

management of third-party applications and services for software developers creating branded mobile and

cloud applications

9/7/16 Security Software $6,078 NA NA

Provides network anti-malware and PC security software for consumers and enterprises worldwide. Software

includes features for anti-virus, anti-spyware, anti-spam, intrusion prevention, secure messaging, Web filtering

and vulnerability management

9/7/16 Security Software $8,730 2.8x NAHPE's software business division, which provides systems management, storage management, content

management, applications development, imaging and virtualization management software for enterprises.

8/31/16 Application software $1,394 3.4x 3.1xProvides VoIP, unified communications, PBX and call center management software and software-as-a-service

(SaaS) for businesses globally. Also provides managed communications and disaster recovery services

8/18/16 Internet Software & Services $122 3.9x NAProvides online content management SaaS for Web publishers in the medical, scientific, technical and media

industries worldwide. Also provides online hosting of journalistic content

8/1/16 Application software $80 5.3x NAProvides project and portfolio management (PPM), application portfolio management (APM) and predictive

portfolio analysis (PPA) SaaS for the healthcare, government, education and commercial sectors

8/1/16 Information management $582 NA NA

Provides team collaboration and document management SaaS for businesses. The company’s solutions are

used in various platforms, such as iPad and iPhone, Macs, PCs, Windows, Apple watches, Android phones,

Android tablets, and on the Web

8/1/16 Systems Software $2,184 7.0x 6.1xProvides GPS-based vehicle tracking and mobile workforce management SaaS for service-based businesses

and the construction industry globally

7/28/16 Application Software $9,174 10.8x 8.9xProvides financial management and planning, ERP, e-commerce, CRM, SCM, and business intelligence (BI)

analytics software as a service (SaaS) for businesses globally

7/27/16 Information Management $1,000 1.8x 1.9xProvides e-discovery and document review software for businesses, the legal sector and government agencies

globally. Also provides a searchable online database of Chapter 7, 11 and 13 bankruptcy court filings

7/26/16 Information management $1,800 NA NAThe GoTo businesses of Citrix Systems provides Web conferencing and real-time team collaboration SaaS for

small- to medium-sized businesses

7/21/16 Application Software $215 NA 3.6xProvides customer engagement and customer analytics SaaS for businesses in the telecom, insurance, finance,

travel, hospitality and retail sectors

7/21/16 Application Software $130 14.4x NAProvides marketing automation, customer analytics, and sales management SaaS for retailers. Software

enables marketers to collect and deliver user generated content (UGC) from various mediums

7/18/16 Information Management $600 4.0x NAProvides web browsers for fixed and mobile computers and smartphones for businesses and consumers

globally

7/13/16 Security $544 4.4x 3.8xProvides single sign-on (SSO) and password management software, as well as appliance-based authentication

and employee access management systems, for hospitals and healthcare providers

/

(Software Business Division)

Goloden Brick SilkRoad Fund Management

Yonglian Investments Co.

Beijing Kunlun Tech Co.

( Consumer Assets )

15



($MM)



7/7/16 Security $1,453 3.4x 3.2x

Provides anti-virus, anti-malware, anti-spam, firewall, mobile device and endpoint security software for

consumers and businesses globally. AVG Technologies began trading on the NYSE under the ticker symbol

AVG in February 2012

7/5/16 Application Software $3,300 3.3x NA Provides ERP, CRM and SCM software and SaaS for businesses globally

6/30/16 Infrastructure Management $260 1.7x 1.8xProvides financial and payment processing software and services for higher education institutions. Higher One

began trading on the NYSE under the ticker symbol ONE in June 2010

6/28/16 Application Software $125 NA NAProvides retail predictive analytics SaaS that uses big data to enable retailers and wholesalers to forecast

merchandise planning, assortment, category management, pricing and supply chain optimization


Provides access control and anti-data leakage SaaS to enable businesses to secure cloud applications and

provide data loss prevention (DLP). The SaaS works on cloud services such as Amazon Web Services, Box,

Google Apps, Dropbox and Salesforce

6/20/16 Application Software $2,200 1.6x NA

Provides BI analytics and corporate performance management, database management, identity and access

management, network security management, endpoint integrity and identity and access management

software and SaaS for businesses

6/20/16 Information Management $315 NA 2.7x

The HP Exstream, HP Output Management, HP TeleForm and HP LiquidOffice software and service assets of

HP, which enable automated customer communication and multi-channel document management and

delivery for businesses

6/13/16Internet Content &

Commerce $26,200 8.2x 6.7x Provides a social networking website for professionals and businesses globally through www.linkedin.com

6/12/16 Security $4,650 7.8x NAProvides enterprise cybersecurity, Web traffic management and mobile device security systems and software

as a service (SaaS) for businesses globally

6/7/16 Application Software $175 3.5x NAProvides supply chain management (SCM) software, SaaS and related integration services to the chemical and

oil industries globally

6/2/16 Information Management $163 NA 2.2xProvides e-discovery, enterprise search and categorization SaaS and managed services for businesses globally.

Software also enables predictive and contract analysis, and enterprise knowledge management

6/2/16 Application Software $2,630 4.1x 3.6xProvides on-premise and cloud-based business intelligence (BI) analytics and reporting software for

businesses, government agencies and educational institutions globally

6/1/16 Application Software $2,800 11.0x 8.8x

Provides enterprise cloud-based e-commerce SaaS for Web merchants and multi-channel online retailers.

Software includes features for order management, multiple e-commerce site creation and maintenance and

mobile transaction processing

6/1/16 Infrastructure management $500 6.3x 5.0x

Provides Web-based IT service management (ITSM) SaaS for managed service providers and IT support

businesses globally. Software integrates features including remote monitoring, mail security, backup and

recovery and IT service desk


Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and

authentication SaaS. Software enables an organization's employees to use a single sign-on (SSO) to securely

access Internet applications and Web services

( )

( )

(customer communication

management assets)

16



($MM)



5/31/16 Application Software $378 3.6x 3.4xProvides procurement, SCM, contract and inventory management, and accounts payable automation SaaS for

the scientific, education, healthcare and government sectors

5/31/16 Application Software $1,790 7.9x 6.2xProvides marketing automation SaaS for businesses. Software provides features for sales lead management

and analytics, email and social media marketing, and marketing campaign analytics

5/27/16 Application Software $164 2.2x NAProvides loan and mortgage management software, insurance policy administration software, and related

outsourced services for the financial and insurance sectors globally

5/18/16 Application Software $881 3.8x 3.2xProvides predictive dialing, IVR and analytics call center SaaS and related integration services for call center

operators globally

5/16/16 Infrastructure Management $115 4.8x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry

5/5/16 Mobility $230 3.3x NAProvides application program interfaces (API) and software development kits (SDK) PaaS to enable voice, text,

chat application and phone verification services for enterprises and developers globally

5/2/16 Application Software $532 3.6x 3.3x

Provides cloud-based utility and energy management SaaS for power suppliers. Software enables the analysis

of smart meter reading and analytics for demand side power optimization, customer engagement and billing

automation and Web development tools

4/28/16 Information Management $663 7.2x 6.2xProvides collaboration software as a service (SaaS) for payment management and project pre-qualification for

the commercial construction industry

4/27/16 Infrastructure Management $104 NA 3.5x

Provides Web-based secure information exchange SaaS that enables the electronic exchange and collaboration

of supply chain documents, financial information, product development materials and protected healthcare

information


Provides enterprise healthcare data analytics software and services that enable revenue management, claim

and payment accuracy, fraud protection, population health predictive big data analytics, compliance, and

reporting for the healthcare sector

4/22/16 Application Software $90 0.6x NATeradata's marketing applications business, which provides omni-channel marketing and advertising resource

and data management SaaS and services for companies and marketing agencies

4/19/16 Security $360 3.5x 3.0xProvides enterprise consumer identity management, identity theft protection and fraud detection software,

including credit monitoring, identity authentication, voice biometrics and breach mitigation and resolution


Provides property management and residential sales management software and SaaS, including inventory

management, marketing, CRM communications, accounting and business reporting, for real estate agents and

agencies

4/18/16 Information Management $170 NA 1.9x

The HP TeamSite, HP MediaBin, HP Qfiniti, HP Explore, HP Aurasma, and HP Optimost software and service

assets of HP, which enable customer service automation, Web content and digital asset management, and

contact center workforce optimization

4/18/16 Application Software $1,505 8.0x 6.5x

Provides event planning management SaaS for businesses globally. Software provides features for event

registration, email marketing, payment processing, budget management and Web design. Also provides online

survey creation and management SaaS

(Customer Expirience Software and Service Assets)

(Marketing Applications Business)

17



($MM)



4/1/16 Information Management $1,131 5.2x NAProvides customer experience management, including Web content management, website analytics, search

engine optimization and email marketing SaaS for businesses globally

3/23/16 Application Software $950 NA NAProvides medical practice, pharmacy and electronic healthcare records (EHR) management software and

software as-a-service (SaaS) for healthcare providers and related government agencies

3/22/16 Infrastructure Management $540 3.3x NAProvides enterprise application lifecycle management, business process management, automation and Web

content management software. Also provides related systems integration services

3/21/16 Information Management $200 NA NA

Provides board meeting and executive leadership conference document collaboration, document annotation,

e-signature, secure messaging and meeting productivity SaaS and software for businesses. Software can be

hosted in the cloud or on-premise

3/17/16 Application Software $72 2.7x NAProvides construction management SaaS, including project, bid and financial management and performance

monitoring software, for the commercial real estate construction industry globally

3/1/16 Infrastructure Management $260 NA NAProvides hybrid cloud application management software to enable migration, governance and management of

applications from on-premises, cloud or hybrid cloud (public and private) environments for businesses

2/24/16 Mobility $400 10.7x NA

Provides Visual Studio enterprise mobile application development software-as-a-service (SaaS), add-on tools

and extensions for software developers and businesses. Software enables corporate software developers to

create and test native applications

2/23/16 Infrastructure Management $68 1.2x NA

Provides resident billing, resident payments processing, back office accounting, energy and utilities

management software-as-a-service (SaaS) for businesses in the multifamily housing sector. Also provides

related transaction processing services

2/22/16 Infrastructure Management $800 7.1x NA

Provides home medical equipment billing and claims processing software as a service (SaaS) for the medical

sector. Also provides related salesforce automation, inventory management and business intelligence (BI)

analytics SaaS

2/14/16 Information Management $624 6.6x 4.9xProvides secure confidential documents and information electronic production, file sharing and collaboration

SaaS that enables corporate governance for corporation boards and senior executive leadership teams

2/11/16 Information Management $460 2.1x NAProvides insurance carriers with online healthcare exchange data management SaaS. Also provides outsourced

data management services

All Software

Median 3.9x 3.5x

Mean 4.8x 4.2x

PE

Median 3.6x 3.7x

Mean 4.2x 4.2x

18

SOFTWARE VENTURE ACTIVITY

Notes: Source: Pitchbook. Transactions reflect recent software venture activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

10/26/16 Heal $70Provider of a platform for on-demand medical

house calls.

Breyer Capital, Hashtag One, Kevin Colleran, March Capital Partners, Pritzker Group Venture Capital, Singulariteam,

Slow Ventures, Tidecrest Capital, Tull Financial Group

10/26/16 Busfor $20Developer of inventory distribution system for

the transport market.Baring Vostok Capital Partners, Chernovetskyi Investment Group, Elbrus Capital, InVenture Partners

10/25/16 Clarifai $30 Provider of image recognition systems. Lux Capital, Menlo Ventures, Osage Partners, Qualcomm Ventures, Union Square Ventures

10/24/16 YOUNGZONE (Shanghai) $37Provider of educational and entertainment

services for kids.GGV Capital, New Horizon, Qualcomm

10/24/16 Wavefront $52Provider of a cloud-based analytics platform for

managing data centers.Sequoia Capital, Sutter Hill Ventures, Tenaya Capital

10/20/16 MatahariMall $100Provider of an e-commerce platform serving the

Indonesian market.Mitsui & Company, Venturra Capital

10/20/16 EverQuote $23Provider of a comparison-shopping site for auto

insurance.Oceanic Partners, Savano Capital Partners, Stratim Capital, T Capital Partners

10/19/16 Furlenco $30 Provider of furniture rental services. Axis Capital Partners, Lightbox

10/19/16 Duomi.com $40Developer of a recruitment and job-seeking

application.

Banyan Investment Partners, Blue Lake Capital, Hillhouse Capital Management, New Hope Group, Tencent

Holdings

10/18/16 SmartFrog $22 Provider of home-security systems. e.ventures, Target Global

10/18/16 ContentSquare $20Developer of an experience optimization

platform for online and mobile businesses.Highland Capital Partners Europe

10/15/16 Ver se' Innovation $25 Provider of utilitarian mobile services. ByteDance, Matrix Partners India, Omidyar Network

10/14/16 Snapsheet $20Provider of a self-service mobile application for

settling auto insurance claims by photo.

F-Prime Capital Partners, IA Capital Group, Intact Financial, Liberty Mutual Strategic Ventures, United Services

Automobile Association

10/11/16 Gusto.com $90 Provider of a cloud-based payroll service.General Catalyst Partners (Hemant Taneja), Google Capital (Laela Sturdy), Obvious Ventures, Pivot Investment

Partners

10/10/16 Ofo $130 Provider of a bike-sharing platform. Coatue Management, Didi Chuxing, GSR Ventures, Matrix Partners China, Vision Capital, Xiaomi Technology

10/4/16 GoEuro $70Provider of a travel search platform for

European destinations.

Atomico, Battery Ventures, Kleiner Perkins Caufield & Byers, Lakestar, New Enterprise Associates, Silver Lake

Technology Management

19



($MM)



10/3/16 Rover $40Provider of an online platform to connect pet

owners with dog walkers and sitters.Foundry Group, Madrona Venture Group, Menlo Ventures

10/3/16 Payoneer $180Provider of online payment distribution platform

and services.Susquehanna Growth Equity, TCV, Wellington Management

9/30/16 Mobike $100 Provider of a rental platform for bikes.Bertelsmann Asia Investments, Hillhouse Capital Management, Joy Capital, Panda Capital Asia, Qiming Venture

Partners, Sequoia Capital, Tencent Holdings, Warburg Pincus

9/30/16 Building Engines $27Provider of property management software for

commercial real estate.Wavecrest Growth Partners, River Cities Capital Funds, MassMutual Ventures, Camber Creek

9/29/16 Shape Security $40Provider of security technology for web and

mobile applications.

Baseline Ventures (Steve Anderson), EDB Investments (Swee Yeok Chu), EPIC Ventures, Eric Schmidt, Hewlett

Packard Ventures (Lakshmikanth Ananth), Kleiner Perkins Caufield & Byers (Theodore Schlein), Northern Light

Venture Capital (Feng Deng), Norwest Venture Partners (Promod Haque)

9/28/16 Druva $51Provider of data protection and IT-governance

technology for mobile work forces.

Blue Cloud Ventures, EDB Investments (Swee Yeok Chu), Hercules Capital, Nexus Venture Partners (Jishnu

Bhattacharjee), NTT Finance, Sequoia Capital (Shailendra Singh), Tenaya Capital (Thomas Banahan)

9/28/16 Apttus $88Provider of a cloud-based software for quote-to-

cash automation.ICONIQ Capital, K1 Capital (Neil Malik), Kuwaiti Investment Authority

9/27/16 ProsperWorks $24 Developer of a cloud-based CRM software.Devoteam, Industry Ventures, Next World Capital (Ben Fu), Storm Ventures (Anshu Sharma), True Ventures (Philip

Black)

9/23/16 Oblong Industries $65 Developer of visual collaboration software. NA

9/22/16 Avalara $96Provider of tax compliance automation

software.

Battery Ventures (Chelsea Stoner), Sageview Capital (Edward Gilhuly), TCV (Tim McAdam), Warburg Pincus (Justin

Sadrian)

9/21/16 Tealium $35Provider of web analytics and digital marketing

software.

Bain Capital Ventures (Salil Deshpande), Battery Ventures (Neeraj Agrawal), Georgian Partners (Justin LaFayette),

Presidio Ventures, Silver Lake Technology Management (Shawn O'Neill), Tenaya Capital (Stewart Gollmer)

9/20/16 Vlocity $50Developer of cloud based software to deliver

industry-specific customer experiences.

Accenture (Robert Sell), Kennet Partners, New York Life Enterprises, Salesforce Ventures (John Somorjai), Sutter

Hill Ventures (James White), TDF Ventures, Wildcat Venture Partners

9/19/16 White Ops $20 Provider of software security services. Grotech Ventures (Stephen Fredrick), Paladin Capital Group (Philip Eliot)

9/15/16 Ripple $55Developer of a virtual currency and payments

system.

Accenture Technology Ventures, CME Ventures, Santander InnoVentures, SBI Holdings (Yoshitaka Kitao), SCB

Digital Ventures (Thana Thienachariya), Seagate Venture Fund, Standard Chartered (Alex Manson), Venture51

9/15/16 BitSight $40Developer of cyber security software

applications.

Comcast Ventures, Flybridge Capital Partners, GGV Capital (Glenn Solomon), Globespan Capital Partners, Liberty

Global Ventures, Menlo Ventures, Shaun McConnon (Shaun McConnon), SingTel Innov8

9/14/16 Lucid Software $36Provider of a collaborative web based

diagramming and flowchart application.Grayhawk Capital, Kickstart Seed Fund (Gavin Christensen), Spectrum Equity (Benjamin Spero)

20



($MM)



9/13/16 Optimove $20Developer of Web-based products for use by

marketers in Internet companies.Israel Growth Partners (Moshe Lichtman)

9/13/16 Gitlab $20Provider of an open-source code collaboration

platform.August Capital (Villi Iltchev), Khosla Ventures (Vinod Khosla), Y Combinator

9/13/16 CTERA Networks $25 Developer of cloud storage services platform.Benchmark Capital (Arad Naveh), Bessemer Venture Partners (Adam Fisher), Cisco Investments, Vintage Investment

Partners

9/13/16 Claroty $32Provider of an Operational Technology (OT)

network protection platform.

Bessemer Venture Partners (David Cowan), Innovation Endeavors (Eric Schmidt), Israel Cleantech Ventures (Meir

Ukeles), Marker, Mitsui & Co., Red Dot Capital Partners (Zvika Naggan)

9/13/16 Cato Networks $30 Developer of network security technologies.Aspect Venture Partners (Theresia Gouw), Greylock Partners (Jerry Chen), SingTel Innov8, US Venture Partners

(Steve Krausz)

9/12/16 Mutualink $37

Provider of an internet protocol based

multimedia interoperable communications

platform.

NA

9/11/16 Bonfire Studios $25 Provider of an online multiplayer gaming. Andreessen Horowitz, Riot Games

9/9/16 Rover $40Provider of an online platform to connect pet

owners with dog walkers and sitters.Foundry Group (Bradley Feld), Madrona Venture Group (Greg Gottesman), Menlo Ventures (Sunil Raman)

9/9/16 Nuxeo $30Provider of an open source content management

platform.Kennet Partners (Michael Elias), The Goldman Sachs Group (Christian Resch)

9/8/16 SessionM $35Provider of a mobile marketing automation and

loyalty platform.

Causeway Media Partners (Wycliffe Grousbeck), Charles River Ventures (Jon Auerbach), General Atlantic (Jim

Rossman), Highland Capital Partners (Bob Davis), Kleiner Perkins Caufield & Byers (Matthew Murphy), Salesforce

Ventures

9/8/16 OfferUp $119Provider of a mobile marketplace to buy and sell

items locally.

Altimeter Capital Management, Andreessen Horowitz (Jeffrey Jordan), Coatue Management, GGV Capital (Hans

Tung), T. Rowe Price, Vy Capital, Warburg Pincus (Justin Sadrian)

9/8/16 Cyence $40Provider of a platform for economic modeling of

cyber risk.Dowling Capital Partners, IVP, New Enterprise Associates (Karthik Kumar)

9/8/16 Byju's $50 Provider of an online learning application.Chan Zuckerberg Initiative, International Finance Corporation, Lightspeed Venture Partners (Dev Khare), Sequoia

Capital (GV Ravishankar), Sofina, Times Internet (Satyan Gajwani)

9/8/16 Blackstorm Labs $34Provider of a mobile based application

development platform.Alsop Louie Partners (Ernestine Fu), Highland Capital Partners, Rakuten Ventures

9/7/16 HashiCorp $24Provider of a tool to manage distributed

applications and infrastructure.GGV Capital (Glenn Solomon), Mayfield (Robin Vasan), Redpoint Ventures, True Ventures

9/4/16 Huimin $196

Provider of a B2B fast moving consumer goods

platform for family-owned convenience stores in

China.

China Innovation Investment, China United SME Guarantee, Fortune Venture Capital, Kinzon Capital, Renzhong

Capital Management, Western Capital Management

21



($MM)



9/1/16 DraftKings $153 Provider of online fantasy sports platform. RevolutionGrowth (Steven Murray)

9/1/16 C3 IoT $70Developer of software for companies to

transition to Internet of Things networks.InterWest Partners, Sutter Hill Ventures, TPG Capital (Nehal Raj)

8/31/16 Compass (Real Estate Platform) $75Provider of a technology platform for real estate

information and agent services.

.406 Ventures (Maria Cirino), Founders Fund (Ken Howery), IVP (Todd Chaffee), Thrive Capital (Joshua Kushner),

Wellington Capital Management

8/30/16 LogRhythm $50Provider of a security intelligence and analytics

platform.

Adams Street Partners (David Welsh), Delta-v Capital, EDB Investments, Exclusive Networks, Riverwood Capital

(Jeffrey Parks), Siemens Venture Capital, Silver Lake Technology Management

8/30/16 HunterOn $30 Provider of an online recruitment platform. IDG Capital Partners, Sequoia Capital, UOB Venture Management

8/30/16 Glint $27Provider of a real-time employee engagement

platform.

Bessemer Venture Partners (Byron Deeter), Meritech Capital Partners (Craig Sherman), Norwest Venture Partners

(Jeffrey Crowe), Shasta Ventures (Jason Pressman)

8/29/16 Velocity (Hospitality) $23Provider of a Web-based application for dining

and hospitality experiences.Barry Sternlicht (Barry Sternlicht), DIG Investments (Sanjan Dhody), John Paul

8/29/16 Rubicon Global $76Provider of sustainable waste and recycling

technology and services.

Blake Mycoskie (Blake Mycoskie), Hammerstone Capital, Henry Kravis (Henry Kravis), Leonardo DiCaprio (Leonardo

DiCaprio), Nima Capital (Suna Said), Paul Tudor Jones II (Paul Jones), The Goldman Sachs Group, Wellington

Management

8/29/16 One97 Communications $300

Provider of telecommunications value added

services to telecom service providers, consumers

and enterprises in India.

Alibaba Capital Partners, Ant Financial (Jing Xiandong), MediaTek Ventures, SAIF Partners (Ravi Adusumalli),

Temasek Holdings, The Goldman Sachs Group

8/29/16 Color Genomics $39Provider of personalized genetic counseling

services.NA

8/24/16 Panopto $43Developer of a video capture and management

software.Mountain Group Partners, Saturn Management, Sterling Partners (Jason Rosenberg)

8/24/16 DroneDeploy $20Developer of a cloud-based drone mapping

software.High Alpha, Scale Venture Partners (Rory O'Driscoll), Scott Dorsey (Scott Dorsey)

8/23/16 Testin $30Provider of a cloud application and mobile game

testing platform.Banyan Capital, Haiyin Venture Partners, IDG Capital Partners

8/22/16 Virtru $29 Developer of an encryption software for email.Bessemer Venture Partners (David Cowan), Blue Delta Capital Partners, Haystack Partners, New Enterprise

Associates, Quadrant Capital Advisors, Soros Fund Management

8/18/16 ID Experts $28Provider of data breach security services to

businesses.

BlueCross BlueShield Venture Partners (Thomas Hawes), Peloton Equity (Theodore Lundberg), Sandbox Industries

(Thomas Hawes), Trident Capital Cybersecurity (Sean Cunningham)

8/18/16 Clara Lending $27 Provider of an online lending platform. Redpoint Ventures, Venrock

22



($MM)



8/16/16 Meet You $151 Provider of a female assistant mobile software. Cathay Capital Private Equity, China Renaissance, K2VC, Matrix Partners China

8/16/16 Keep $32 Operator of a mobile fitness community. Bertelsmann Asia Investments, GGV Capital (Jenny Lee), Mandra Capital, Morningside Group, Tencent Holdings

8/16/16 Hike Messenger $175 Provider of a mobile messaging application.Bharti Soft Bank, Foxconn Technology, Softbank (Masayoshi Son), Tencent Holdings (Martin Lau), Tiger Global

Management (Lee Fixel)

8/16/16 Degreed $25

Provider of a lifelong learning platform for

organizations and individuals to find, track and

recognize all learning throughout their lives.

GSV Advisors (Deborah Quazzo), Jump Capital (Michael McMahon), Rethink Education, Signal Peak Ventures (R.

Brandon Tidwell)

8/10/16 Interactions $67Developer of a speech and language recognition

technology.

Ares Capital, Comcast Ventures, Cross Atlantic Capital Partners , NewSpring Capital, North Hill Ventures, ORIX

Ventures, Red Oak Growth Partners, Revolution Ventures, RevolutionGrowth, Sigma Partners, SoftBank Capital

8/9/16 MapR Technologies $51Provider of distribution technology for Apache

Hadoop.

Australia Future Fund, Google Capital (Eugene Frantz), Lightspeed Venture Partners (Barry Eggers), Mayfield, New

Enterprise Associates (Peter Sonsini), Qualcomm Ventures, Redpoint Ventures

8/9/16 Anomali $30 Provider of a cyber security intelligence platform.General Catalyst Partners (Stephen Herrod), GV (Karim Faris), In-Q-Tel (George Hoyem), IVP (Stephen Harrick),

Paladin Capital Group

8/9/16 Engagio $22Provider of an account based marketing

platform.FirstMark Capital (Amish Jani), Norwest Venture Partners (Sean Jacobson), Storm Ventures

8/9/16 Farmers Business Network $20Developer of a decision-support system for

farmers.Acre Venture Partners (Gareth Asten), DBL Partners, GV (Andrew Wheeler), Kleiner Perkins Caufield & Byers

8/8/16 Pindrop Security $81Provider of an in voice-fraud prevention and

authentication tool.

Andreessen Horowitz (Scott Weiss), Citi Ventures (Arvind Purushotham), Felicis Ventures (Sundeep Peechu), Google

Capital (Eugene Frantz), GV, IVP (Somesh Dash)

8/4/16 Oblong Industries $45 Developer of visual collaboration software. NA

8/4/16 Kentik $23Provider of a cloud-based network traffic

intelligence platform.

August Capital (Vivek Mehra), Data Collective (Matthew Ocko), David Ulevitch (David Ulevitch), Engineering Capital,

First Round Capital (Howard Morgan), Glynn Capital Management, Third Point Ventures

8/4/16 GrubMarket $20Provider of an online market place for grocery

items.

Danhua Capital, Fabrice Grinda (Fabrice Grinda), Fosun International, GGV Capital (Hans Tung), Global Founders

Capital, Reindeer Investments, Riverhead Capital, Sound Ventures (Abe Burns), Wang Gang

8/3/16 Kyriba $23Provider of software-as-a-service (SaaS) cash

and treasury management services.ORIX Ventures (Jeffrey Bede)

8/2/16 Carousell $35 Provider of consumer-to-consumer marketplace. 500 Startups, Golden Gate Ventures (Vinnie Lauria), Rakuten (Saemin Ahn), Sequoia Capital (Shailendra Singh)

8/2/16 Distil Networks $21 Developer of cloud-based security software.Bessemer Venture Partners (David Cowan), Foundry Group (Ryan McIntyre), Silicon Valley Bank, Techstars (David

Cohen)

23

SOFTWARE CAPITAL MARKETS UPDATE Recent Software IPO Pricings

Notes:

Source: Capital IQ and Dealogic.

Market Data as of 10/28/2016.

(1) First Trading Day listed as Offer Date.

($MM)

Offer Date (1) Market Cap @

IPO Date

Amount

Raised Original Filing Range Offer Price

% Change

Offer /

Midpoint Price

% Change

1st Trading Day /

Offer Price

% Change Current

/ Offer Price

28-Oct-16 $1,169 $146 13.00 - 15.00 $17.00 21.4% 39.4% 39.4%

6-Oct-16 $1,601 $133 14.00 - 16.00 $18.00 20.0% 84.9% 40.7%

30-Sep-16 $5,079 $238 11.00 - 13.00 $16.00 33.3% 131.3% 55.3%

23-Sep-16 $841 $96 13.00 - 15.00 $16.00 14.3% 40.9% 21.0%

22-Sep-16 $453 $87 10.50 - 12.50 $13.00 13.0% 21.2% 7.4%

16-Sep-16 $411 $90 11.00 - 13.00 $12.00 0.0% 27.1% 21.3%

Name

24

195

163

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(10)

6

11

717

1617

11

9

150

160

170

180

190

200

210 PE Acquisitions Strategic Acquisitions IPO

Strategic and Private Equity Exits Outweigh New Issues

A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIES

Notes: Sources: Capital IQ, company filings.

2008 2009 2010 2011 2015 2012 2013 2014 2016YTD

Fortinet CDC Software

LogMeIn Medidata

SolarWinds Rosetta Stone SciQuest

RealPage IntraLinks Envestnet

Qlik BroadSoft

Higher One Convio

SPS Commerce SS&C

QuinStreet

Jive Imperva

Carbonite Tangoe

Responsys Cornerstone

Epocrates

Workday Fleetmatics

Qualys Eloqua E2open

ServiceNow Exa

Incadea Infloblox

Proofpoint Splunk

ExactTarget Demandware Bazaarvoice Greenway

AVG Guidewire

Mavenir Barracuda Wix.com Covisint

RingCentral FireEye Cvent

Gigamon Textura

ChannelAdvisor Marketo Tableau Halogen

Rally Marin

Model N

Workiva Hortonworks

New Relic HubSpot CyberArk

MobileIron Kinaxis

Zendesk Paycom

OPOWER Five9

2U Borderfree

Amber Road A10 Networks

Paylocity Varonis Systems

Atlassian Mimecast

Instructure Rapid7 Sophos

AppFolio Alarm.Com

Xactly Shopify Apigee

Box

Twilio SecureWorks

Talend Everbridge

Apptio Gridsum Holding

Nutanix Coupa

BlackLine, Inc.

2009 2010 2011 2012 2013 2014 2015 2016YTD

PE 5 4 6 9 6 7 8 9

Strategic 7 11 8 11 9 6 10 10

IPO 6 11 7 17 16 17 11 9

25

VENTURE CAPITAL INDUSTRY TMT Transactions Since Q3 2001

Notes: (1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of: Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and

Equipment, Semiconductors, Software and Telecommunications.

(1)

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

Q3 2001 Q3 2002 Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount(1)

26

GCA OVERVIEW Deep Software Sector Expertise

Acquired by

We Advised the Seller


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Acquired by

Fairness Opinion to Buddy Media

Acquired by


Acquired by


Acquired by


Acquired by


Acquired by

Acquired by


Acquired by

We Advised the Seller We Advised the Seller

Acquired by

We Advised the Buyer

Acquisition of


Acquired by


Acquisition of

Strategic Advisory Services

Financial Advisor We Advised the Seller

Acquired by Acquired by

Acquired by


Acquisition of



Acquired by


Acquired by Acquired by



Preferred Stock

Financial Advisor

Acquisition of

We Advised the Buyer We Advised the Seller

Investment by


Acquired by Preferred Stock

Financial Advisor

Acquired by


Acquired by


Financial Advisor

Preferred Stock

Notes: The above transactions represents a compilation of past and current deals that GCA entities have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction.

27

GCA OVERVIEW Software Team

San Francisco

One Maritime Plaza, 25th Fl. San Francisco, CA 94111

United States Phone: (415) 318-3600

New York

640 Fifth Avenue, 10th

Fl. New York, NY 10019

United States Phone: (212) 999-7090

Tokyo

11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230

Japan Phone: +81 (3) 6212-7100

London

1 Southampton St. London WC2R0LR United Kingdom

Phone:+44 20 7484 4040

*Adrian Reed is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Sascha Pfeiffer is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Raiko Stelten is a Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Akikazu Ida is a Managing Director at GCA Corporation.

Todd Carter Clark Callander Seihun Kong Paul DiNardo Sascha Pfeiffer* Akikazu Ida* Co-President and CEO Co-Head of Investment Banking Managing Director Advisory Director Managing Director Managing Director

Phone: (415) 318-3610 Phone: (415) 318-3680 Phone: (415) 318-3682 Phone: (212) 999-7097 Phone: +49 (69) 204-34-6410 Phone: +81 (3) 6212-7241

Mobile: (415) 314-9898 Mobile: (415) 515-2468 Mobile: (415) 823-7300 Mobile: (650) 483-7246 Mobile: +49 (0) 177-74-15643 Mobile: +81 (80) 9027-3023

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Adrian Reed* James Orozco Chris Gough Dan Etchevers Raiko Stelten* Gautam GargManaging Director Managing Director Managing Director Director Director Vice President

Phone: +44 845 505 4314 Phone: (415) 318-3667 Phone: (415) 318-3658 Phone: (415) 318-3644 Phone: +49 (69) 204 34 6418 Phone: (415) 318-3692

Mobile: +44 7887 626 800 Mobile: (415) 722-0922 Mobile: (415) 385-9427 Mobile: (415) 572-3549 Mobile: +49 171 335 0879 Mobile: (650) 504-1722

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

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